ANNU A L REPOR T 2017

HOTEL
ABOUT THE COVER
A N N U A L R E P OR T 2017

HOTEL

This annual report embodies the synergies among the companies

under Udenna’s portfolio as they work together towards the goal of
being market leaders and significant players in their different industries.
As a diversified conglomerate, Udenna thrives in exploring beneficial
collaborations among its different subsidiaries.

In its over 15 years of existence, Udenna has ventured into diverse businesses
such as petroleum; shipping and logistics; real estate and property development;
environmental trading and distribution; and energy, water and environmental
services; and has succeeded in expanding and enhancing each segment.

The determination and leadership of its management team, and the dedication
and professionalism of its employees, have played an indispensable role in creating
Udenna’s growth momentum. Driving this growth is the group’s passion to make life
better for its partners, its stakeholders, and for all Filipinos.

Working tirelessly at Udenna, the dictum WE WORK FOR YOU upholds our
dedication to continue growing the Philippine economy and improving the
lives of Filipinos in the years to come.
TABLE OF CONTENTS
2 ABOUT UDENNA

3 VISION, MISSION, CORE VALUES

4 GROUP MAP

6 UDENNA MILESTONES

8 FINANCIAL HIGHLIGHTS

12 MESSAGE FROM THE CHAIRMAN

14 OPERATIONAL HIGHLIGHTS

24 CORPORATE SOCIAL RESPONSIBILITY

26 BOARD OF DIRECTORS

29 MANAGEMENT TEAM

30 FINANCIAL STATEMENTS
 ABOUT UDENNA
Udenna Corporation (UDENNA), is the parent of the UDENNA Group of
Companies. It is in the business of distribution and retail of petroleum
products and lubricants under the Phoenix brand and is also engaged
in shipping and logistics through its majority-owned subsidiary, Chelsea
Logistics Holdings Corp. The continued expansion of the group in
recent years has allowed UDENNA to grow exponentially and diversify
its business portfolio to include real estate and property development,
education, leisure, gaming,tourism and infrastructure.
From its beginnings in 2002, UDENNA has successfully listed on the
Philippine Stock Exchange two subsidiaries, P-H-O-E-N-I-X Petroleum
Philippines, Inc. (PPPI) and Chelsea Logistics Holdings Corp. (CLC),
both of which have become acknowledged independent challengers
and leaders in industries with long histories of non- competitive
environments.
2 UDENNA GROUP ANNUAL REPORT 2017
UDENNA now employs more than a thousand personnel and is
expected to create several thousand more jobs for Filipinos in the
next five years. As an organization, UDENNA’s success is driven by
the knowledge, insight, dedication and ambition of its leadership team
and its thousands of employees and business partners across the
Philippines.
UDENNA will continue to move aggressively in the coming years in the
hopes of elevating and improving the lives of the Filipino. Now in its
15th year, the people of Udenna are on a mission to help the Philippine
economy move forward towards growth and to enhance of the lives of
the Filipino people.
Here in UDENNA.... We work for you.
 VISION
To be the indispensable partner in nation building,
driven by passion to improve the lives of Filipinos

MISSION
To passionately work to make life better.

CORE VALUES
CUSTOMER FIRST
The interests of our community of consumers
and merchants must be our first priority.

TEAMWORK
We believe teamwork enables ordinary people to achieve extraordinary things.

EMBRACE CHANGE
In this fast-changing world, we must be flexible, innovative and ready
to adapt to new business conditions in order to survive.

INTEGRITY
We expect our people to uphold the highest standards of honesty and
to deliver on their commitments.

PASSION
We expect our people to approach everything with fire in their belly and
never give up on doing what they believe is right.

COMMITMENT
Employees who demonstrate perseverance and excellence are richly rewarded.
Nothing should be taken lightly as we encourage our people to “work happily and live seriously.”

EMPATHY
Ability to understand and share feelings, perspective and experience of others.

WE WORK FOR YOU 3

 GROUP MAP

P-H-O-E-N-I-X
, Inc.

, Inc.

4 UDENNA GROUP ANNUAL REPORT 2017

 P-H-O-E-N-I-X

Philippines, Inc.
P-F-L

P-H-O-E-N-I-X P-H-O-E-N-I-X Petroleum

Singapore Pte. Ltd.

P-H-O-E-N-I-X LPG
Philippines, Inc.

Worklink Services, Inc.

WE WORK FOR YOU 5

 UDENNA MILESTONES
2002
• March 19 – Udenna Corporation was incorporated with the
Securities and Exchange Commission (SEC).
• May 8 – P-H-O-E-N-I-X Petroleum Philippines, Inc. was registered
with the SEC.
2006
• 31 May – P-H-O-E-N-I-X Petroleum Holdings, Inc. was incorporated.
• 8 June – Udenna Management & Resources Corp. was established.
• 17 July – Chelsea Shipping Corp. was registered /incorporated
• 31 July – P-H-O-E-N-I-X Global Mercantile, Inc was registered
and was owned by P-H-O-E-N-I-X Petroleum Philippines, Inc.
• 25 July – Global Synergy Trade and Distribution Corp. was
constituted, with Udenna Management & Resources Corp. as
its majority stockholder.
• 5 September – PNX – Udenna Insurance Brokers, Inc. (formerly “Udenna
Insurance Agency, Inc.”) was created, a wholly-owned subsidiary of
Udenna Management & Resources Corp.
2007
• 31 January – P-F-L Petroleum Management, Inc. was incorporated
and owned by P-H-O-E-N-I-X Petroleum Philippines, Inc.
• 16 February – Valueleases, Inc. was instituted, a wholly-owned
subsidiary of Udenna Management & Resources Corp.
• February 20, 2007 – Subic Petroleum Trading and Transport Phils.,
Inc was incorporated and acquired by P-H-O-E-N-I-X Petroleum
Philippines, Inc.
• 11 July – P-H-O-E-N-I-X Petroleum Philippines, Inc. became a
publicly-listed company and became the first independent oil
company to be listed in the Philippine Stock Exchange after the
Oil Deregulation Law was passed in 1998.
• 26 November – Udenna Development (Udevco) Corporation was
integrated, a wholly-owned subsidiary of Udenna Management &
Resources Corp.
6 UDENNA GROUP ANNUAL REPORT 2017
2008
• 1 March – Chelsea Shipping Corp. acquired 100% of the shares
of Bunkers Manila, Incorporated.
• 1 September – Chelsea Shipping Corp. obtained 100% of the
shares of Michael, Inc.
2009
• 10 March – P-H-O-E-N-I-X Petroleum Philippines, Inc. acquired
Bacnotan Industrial Park Corporation, now called Calaca Industrial
Seaport Corp, in Calaca, Batangas.
2010
• 8 January – Udenna Environmental Services, Inc. was established,
a wholly-owned subsidiary of Udenna Management & Resources
Corp.
• 29 April – Udenna Energy Corporation was debuted, a wholly-
owned subsidiary of Udenna Management & Resources Corp.
2011
• 2 February – PNX – Chelsea Shipping Corp. was instituted, a
wholly-owned subsidiary of Chelsea Shipping Corp.
2012
• 24 January – Udenna Capital was formed, a wholly-owned
subsidiary of Udenna Management & Resources Corp.
• 30 March – Chelsea Ship Management & Marine Services Corp.
was created, a wholly-owned subsidiary of Chelsea Shipping Corp.
2013
• 13 March – GoHotels Davao, Inc. was established, GoHotels
Davao is a joint venture between Robinsons Land Corporation
and Udenna Development (UDEVCO) Corporation.
• 8 April – Fortis Tugs Corporation was constituted, a wholly-owned
subsidiary of Chelsea Shipping Corp.
2014
• 27 March – South Pacific, Inc. was incorporated. SPI is a joint
venture of Phoenix Petroterminals and Industrial Park Corp. with
168 Gas Corp. and Seaport Offshore, Inc.
• 5 August – Udenna Trade Corporation was founded, a wholly-
owned subsidiary of Udenna Corporation.
• 23 September – Udenna Tower Corporation was organized, a
wholly-owned subsidiary of Udenna Development (UDEVCO)
Corporation.
2015
• October – South Pacific, Inc. commenced its operations.
2016
• 9 June – Chelsea Marine Manpower Resources, Inc., was created,
a wholly-owned subsidiary of Chelsea Shipping Corp.
• 18 June – Ground-breaking of Meridian Maritime Center to be
constructed at Phoenix Industrial Park at Calaca, Batangas. The
Maritime Center is a joint venture of Chelsea Shipping Corp. and
Meridian International Maritime Training Center, Inc.
• 24 June - Ground-breaking of Udenna Tower at Bonifacio Global
City.
• 26 August – Chelsea Shipping Group Corp. (now “Chelsea
Logistics Corp.”) was founded, a wholly-owned subsidiary of
Udenna Corporation.
• 24 November – Chelsea Shipping Group Corp. and Udenna
Development (UDEVCO) Corporation acquired Chelsea Shipping
Corp. and Phoenix Petroterminals and Industrial Park Corp.
• respectively, from P-H-O-E-N-I-X Petroleum Philippines, Inc.
• 12 December – Chelsea Shipping Group Corp. acquired Trans-
Asia Shipping Lines, Inc. and its subsidiaries.
• 15 December – Fortis Tugs Corp. acquired Davao Gulf Marine
Services, Inc.
• 21 December – Chelsea Shipping Group Corp. was renamed
“Chelsea Logistics Corp.
2017
• 3 January – PH Travel and Leisure Holdings Corp. was formed
with the SEC, a wholly-owned subsidiary of Udenna.
• 25 January – Lapulapu Leisure, Inc. was inaugurated with
the SEC, a wholly-owned subsidiary of PH Travel and Leisure
Holdings Corp.
• 14 February – Lapu lapu Land Corp. was organized with the SEC,
a wholly-owned subsidiary of Udenna Development (UDEVCO)
Corporation.
• 3 May – Le Penseur, Inc. was founded with the SEC, a wholly-
owned subsidiary of Udenna Corp.
• 1 June – Le Penseur, Inc. acquired 100% stake at Enderun
Colleges, Inc. and its subsidiary ADF Enderun 101.
• 8 August – Chelsea Logistics Holdings Corp. public listing
at the Philippine Stock Exchange.
• 9 August – Clark Global City Corp. was incorporated with the SEC,
a wholly-owned subsidiary of Udenna Development (UDEVCO)
Corporation.
• 15 August – P-H-O-E-N-I-X Petroleum Philippines, Inc. acquires
100% stake at Petronas Energy Philippines, Inc., Duta, Inc. and
its subsidiary Kaparangan, Inc.
• 16 August – Lapulapu Heritage Foundation was formed.
• 7 November – Donatela Hotel Panglao Corp. was established
with the SEC, a wholly-owned subsidiary of PH Travel and Leisure
Holdings Corp. Also at the same time, the company acquired
Tarsier Botanika Resort located in Bohol.
• 8 November – Chelsea Logistics Holdings Corp. obtained
a 100% stake of Worklink Services, Inc.
• 9 November – Chelsea Logistics Holdings Corp. acquired
a 100% stake of Starlite Ferries, Inc.
• 18 November – Clark Global City Corp. acquired 100% stake
at Global Gateway Development Corp.
• 20 November – Udenna Infrastructure was registered with
the SEC, a wholly-owned subsidiary of Udenna Corp.
WE WORK FOR YOU 7
 FINAN CIAL
HIGH L IG H T S

8 UDENNA GROUP ANNUAL REPORT 2017

Income Statement Balance Sheet
Amounts in PhP millions 2017 2016 2015 Amounts in PhP millions 2017 2016 2015
Revenues 48,755.3 31,394.2 30,737.3 Total Current Assets 36,935.6 19,784.2 17,049.8
Cost of Sales and Services 43,088.7 25,744.9 25,869.8 Total Non-current Assets 97,148.3 24,419.3 14,246.0
Gross Profit 5,666.6 5,649.3 4,867.5 Total Assets 134,083.9 44,203.5 31,295.8
Other Operating Expenses 4,104.6 3,596.2 2,801.6
Operating Income 1,562.1 2,053.1 2,066.0 Total Current Liabilities 65,176.0 28,896.0 15,754.1
Other Income - Net 244.6 -1,159.5 -960.9 Total Non-current Liabilities 42,095.7 5,779.9 6,010.9
Tax expense (income) 174.7 114.0 206.0 Total Liabilities 107,271.6 34,675.9 21,764.9
Net profit 1,345.9 779.6 899.0 Stockholders’ Equity 26,812.3 9,527.6 9,530.8
EBITDA 4,683.7 2,023.5 1,963.4 Total Liabilities and Equity 134,083.9 44,203.5 31,295.8

Key Performance Indicators

Financial Ratios
Gross Profit Ratio 11.6% 18.0% 15.8%
EBITDA Margin 9.6% 6.4% 6.4%
Net Profit Margin 2.8% 2.5% 2.9%
Debt-to-Equity Ratio 4.00 3.64 2.28

30,737.3 4,867.5
31,394.2
F IT 5,649.3

ES RO
U 48,755.3
S SP 5,666.6
V EN RO
RE G

*Amounts in PHP Millions *Amounts in PHP Millions

WE WORK FOR YOU 9

 2,066.0
E
OM 2,053.1
INC
TING 1,562.1
E RA
OP

*Amounts in PHP Millions

899.0

779.6
IT
OF
T PR 1,345.9
NE

*Amounts in PHP Millions

10 UDENNA GROUP ANNUAL REPORT 2017

 1,963.4

2,023.5
A
ITD
EB 4,683.7

*Amounts in PHP Millions

Key Performance Indicators

2017 2016 2015

0 4
4. 0 3. 6 8
2. 2
Debt-to-Equity Ratio

% % %
2. 8 2. 5 2. 9
Net Profit Margin

%
9. 6 % %
6. 4 6. 4
EBITDA Margin

. 0% . 8%
18 15

. 6%
11

Gross Profit

*Amounts in PHP Millions

WE WORK FOR YOU 11

 Dear Stakeholders,
The year 2017 has been a milestone year for UDENNA Corporation,
and we are proud to present our achievements through this first
of many Annual Reports. Since the company was first established
15 years ago, we have come a long way, and for that, we feel very
grateful and humbled.
From a small petroleum enterprise, we have now grown into one
of the country’s most dynamic companies with a varied portfolio,
and we intend to keep that momentum going. We believe there’s
a business to be made, always. Our business is business. And it is
this entrepreneurial vision and spirit that has been the driving force
of how we have grown from a single gas station to a group with
businesses in various industries.
UDENNA started in Davao City 15 years ago with a small oil company,
four years after the industry was deregulated and opened to new
players. The challenges of a start-up competing with bigger companies
were tremendous at that time, as is still the case now. Despite limited
working capital and no access to bank financing, I pressed on with
the business, believing in the opportunity to be a fourth player after
the multinationals. I invested all my savings in Davao Oil Terminal
Services Corporation, which later became P-H-O-E-N-I-X Petroleum
Philippines, Inc. Our big break came in 2005 when rising airline Cebu
Pacific Air became our customer. That year, we ventured into retail
with the opening of our first five stations in southern Mindanao.
To serve the domestic requirements of Phoenix, we acquired our very
first vessel in 2006, a second hand tanker, M/T Chelsea Denise. This
is how the shipping arm of UDENNA started – Chelsea Shipping
Corporation, now under Chelsea Logistics Holdings Corp. (CLC).
Hard work and perseverance paid off and banks began to put their
trust in us. In 2007, Phoenix successfully launched its initial public
offering in the Philippine Stock Exchange (PSE), the first oil company
to do so after the industry deregulation in 1998. This opened more
doors for us to expand beyond Davao City to the rest of the Philippines.
Our need for a depot in Luzon led us to acquire in 2009 what became
the Phoenix Petroterminals and Industrial Park Corporation, now
called the Calaca Industrial Seaport Corporation. This was how we
entered the real estate development industry.
In 2017, Phoenix – already the country’s number one independent oil
company – captured 6% share of the market, bringing us closer to
being the third largest player in the petroleum industry.
On August 8, 2017, barely a month after Phoenix’s 10th listing
anniversary, UDENNA’s shipping arm Chelsea Logistics Holdings
Corp. successfully debuted in the PSE. From a single vessel in 2006,
CLC has grown into a formidable fleet of 75 tankers, barges, roll-on/
roll-off vessels (RoPax), and cargo ships.
Key Investments
With the strong Philippine economic growth in 2017, UDENNA
invested in the high-growth industries of real estate and property
development, education, and the retail sector.
12 UDENNA GROUP ANNUAL REPORT 2017
Phoenix acquired Petronas Energy Philippines, Inc., a strategic fit
that broadens its product portfolio from fuels and lubricants to LPG.
The business is now known as P-H-O-E-N-I-X LPG Philippines, Inc.,
marketing the Phoenix Super LPG brand. P-H-O-E-N-I-X also bought
Philippine FamilyMart CVS, Inc. (FamilyMart), marking the company’s
entry to the fast-growing convenience retailing industry. Also this
year, Phoenix established PNX Petroleum Singapore Pte Ltd. as its
regional trading arm. In 2018, Phoenix will expand into the bitumen
industry through a joint venture with TIPCO Asphalt of Thailand and
PhilAsphalt.
This 2017, Chelsea Logistics acquired 28% of 2Go Group and 100%
of Starlite Ferries, Inc. and Worklink Services, Inc. – significantly raising
our capacity to serve more passengers, reach more destinations, and
improve the flow of goods throughout the country.
We also acquired Enderun Colleges, Inc., a premier management
school for hospitality management and culinary arts in June 2017.
A flagship acquisition was the 177-hectare prime property in Clark,
Pampanga. Renamed Clark Global City Corp., this development is
envisioned to be the premier alternative business district in the whole
of Luzon.
Today, there are more than 50 companies and 3,000 employees
under the UDENNA Corporation family, including three foundations
that support our community development programs. Be it new or
established businesses, our companies across various industries –
petroleum, shipping and logistics, real estate development, education,
services – show how extensive our reach is and how high our
aspirations are.
These achievements are the product of our commitment to bring
economic advancement to the community and more jobs for the
Filipino people. Just thinking about how we can be instrumental in
building a better nation makes every effort worth it.
As we look back on how we began, we extend our gratitude to
our Board of Directors and our financial partners for their steadfast
support, to the investing public for believing in our growth story and
trusting our capabilities, and to our UDENNA employees who have
shown utmost dedication and commitment all these years.
This is just the beginning. A more exciting journey awaits us as we
endeavor together to make UDENNA Corporation stay true to its
mission to passionately working to make life better for all Filipinos.
Dennis A. Uy
Chairman
 “
“ A more exciting journey awaits
us as we work together to make
UDENNA Corporation stay true to
its mission to passionately work to
make life better for the Filipinos.

CHAIRMAN’S
Message
WE WORK FOR YOU 13
OPERAT IO N AL
HIGH L IG H T S
 P-H-O-E-N-I-X Petroleum is the leading independent and fastest-growing
oil company in the country, with a growing portfolio of products and
services from fuels, lubricants, operations and logistics, to LPG, trading,
convenience store retailing, and bitumen.

16 UDENNA GROUP ANNUAL REPORT 2017

P-H-O-E-N-I-X PETROLEUM HOLDINGS, INC.
P-H-O-E-N-I-X Petroleum Holdings, Inc (Phoenix) is the holding
company of UDENNA’s petroleum distribution and retail division.
It is engaged in the nationwide trading and marketing of refined
petroleum products, including LPG and lubricants, operation of
oil depots and storage facilities, hauling and into-plane services,
convenience store retailing, and trading and supply.
In just 15 years, P-H-O-E-N-I-X Petroleum has grown from a small Davao-
based enterprise into a national brand with an expanding retail net work,
strong commercial business, and exciting new ventures.
In 2017, Phoenix marked its 10th anniversary as a listed company on
the Philippine Stock Exchange, the first oil company to list after the
industry was deregulated in 1998.
From its first five stations in 2005 in Mindanao, Phoenix now has 530
retail outlets nationwide. It is refurbishing its stations to a new and
better design, and has launched the P-H-O-E-N-I-X PULSE Technology,
a fuel additive with advanced cleaning and protection properties for
enhanced power and acceleration.
In the commercial and industrial business, Phoenix Petroleum is the
third major player, serving the country’s biggest companies as its
customers.
Supporting its growing business are its nine depots and terminals
across the country. The newest commissioned depot this year is in
Consolacion, Cebu, to better serve the Visayas market.
Phoenix also marked a record safety milestone of 4.4 million safe
man-hours with no lost time incidents, demonstrating its commitment
to safety at all times.
Phoenix continues to work with its partner communities through
the Phoenix Philippines Foundation, further sustaining its advocacy
programs in education, environment health, and outreach. These
initiatives are designed to elevate and preserve their quality of life
and empower them towards a bright future. These programs include
the Pinoy Tsuper Hero which recognizes and empowers outstanding
Filipino drivers, and the LIFE Fund designed for soldiers who fought
in the siege of Marawi, in aid of their livelihood, independence, family,
and education.
In sports, its own basketball team, the Phoenix Fuel Masters, seeks
to improve its standing with a dynamic team of veteran players and
young emerging stars under a new coach. An exciting 2018 lies ahead
as the team shows its potential to unseat traditional powerhouses.
While delivering strong organic growth, Phoenix will continue to
invest in new revenue and profit streams. LPG and convenience
retailing are underpenetrated markets with tremendous domestic
growth potential as they benefit from consumers’ growing purchasing
power and evolving lifestyle. Thus the acquisition of Petronas Energy
Philippines, now Phoenix LPG Philippines marketing the Phoenix
Super LPG brand, and of the Philippine franchise of FamilyMart, the
third largest convenience store chain in the country.
Phoenix has also established PNX Petroleum Singapore Pte Ltd,
its trading office in Singapore that will enhance the petroleum
importation efficiencies of the group and provide access to fast-
growing markets in Southeast Asia.
Soon, Phoenix Petroleum will enter the bitumen market through a
joint venture with TIPCO Asphalt of Thailand and PhilAsphalt.
With its vision to be an indispensable partner in the journey of
everyone whose life we touch, Phoenix Petroleum is committed
to deliver world-class services, empower people, and inspire the
entrepreneurial spirit of every Filipino.
WE WORK FOR YOU 17
 Chelsea established a reputation as a reliable and
safe domestic shipping company with a
record high of No Lost Time Incident manhours.

18 UDENNA GROUP ANNUAL REPORT 2017

CHELSEA LOGISTICS HOLDINGS CORP.
As the shipping requirements of Phoenix Petroleum were increasing
in 2006, the company encountered operational challenges brought
about by the limited availability of vessels’ chartering capacity in the
open market. Hence, Chelsea Shipping Corp. (CSC) was born. CSC
commenced its operations in 2007 with one (1) vessel named M/T
Chelsea Denise. In a span of ten (10) years, CSC steadily grew its
fleet, ending 2017 with eleven (11) tankers, four (4) barges, and nine
(9) tugboats. Through the years, CSC established a reputation as a
reliable and safe domestic shipping company with a record of seven
million (7,000,000) No Lost Time Incident man-hours as of September
2017. To date, CSC’s key customers include Phoenix Petroleum and
Cebu Pacific, the largest carrier in the Philippine aviation industry.
In 2016, Udenna Corporation decided to take its shipping business to
the next level as it established Chelsea Logistics Holdings Corp. (CLC)
to act as the holding company for its shipping and logistics business.
In December 2016, CLC successfully expanded its operations in the
Visayas and Mindanao regions via the acquisition of Trans-Asia
Shipping Lines, Incorporated (Trans-Asia), one of the leaders in the
cargo handling and passenger transport industry in Cebu. As of
end 2017, Trans-Asia operates in ten (10) domestic ports, with Cebu-
Cagayan de Oro being the primary route. It has a fleet composed
of seven (7) roll-on roll-off cargo vessels and four (4) cargo ships.
Apart from providing sea transport services, Trans-Asia also operates
restaurants, coffee shops, and cocktail bars on the passenger ships
through its wholly-owned subsidiary Dynamic Cuisine, Inc. (DCI), while
another subsidiary – Starsy Shoppe, Inc. (SSI) operates retails shops
for snacks and beverage. The machine and mechanical works on the
vessels are handled by a similarly wholly-owned subsidiary Quality
Metal & Shipworks, Inc. (QMSI).
Driven by the goal of establishing an end-to-end supply chain for
CLC’s clients, CLC acquired a substantial stake in 2Go Group, Inc.
(2Go Group) in early 2017 via a share swap agreement with its parent
company – Udenna Corporation. The 2GO Group, with its vast logistics
infrastructure, is considered the largest premier logistics provider in
the Philippines. Under 2Go Group are known brands such as 2GO
Travel, 2GO Freight, 2GO Express, and 2GO Logistics, which offer a
variety of logistics and travel services. Through 2Go Group’s links to at
least 150 countries across the globe, it offers international shipping,
international freight forwarding, and customs clearance services. In
the local market, 2Go Group is one of the key service providers for
freight forwarding and goods warehousing.
Furthering the CLC logistics business, Worklink Services, Inc. (WSI) was
purchased in November 2017. Incorporated in 2004, WSI is similarly
engaged in domestic courier, trucking and warehousing services.
It also caters to special projects arrangements, for instance: events
management, trade merchandising and drop box management.
Also in November 2017, CLC acquired Starlite Ferries, Inc., a domestic
shipping company with a fleet of fourteen (14) roll-on roll-off vessels
servicing mainly the ports of Batangas and Mindoro.
To date, CLC, through its subsidiaries, operates at various ports
across the Luzon, Visayas and Mindanao regions with seventy five
(75) vessels. CLC’s combined fleet of tankers and tugs has a total
capacity of 65.7 million liters, while RoPax and cargo vessels can
accommodate up to about 25,000 passengers and close to 5,000
TEUs at any given time.
WE WORK FOR YOU 19
 Udevco’s projects are the gateways into providing
the best-quality real estate developments to serve
Filipinos all over the country.

20 UDENNA GROUP ANNUAL REPORT 2017

UDENNA DEVELOPMENT (UDEVCO) CORP.
Udenna Development (UDEVCO) Corporation, incorporated in 2007, is
the property development arm of the Udenna Group. From an initial
landbank of 1.6 hectares, Udevco has grown to 249 hectares in the
high growth areas of Pampanga, Mega Manila, Cebu and Davao.
On November 18, 2017, UDEVCO successfully completed its
acquisition of the Global Gateway Development Corporation through
its wholly owned subsidiary – Clark Global City Corp. The Clark Global
City (CGC) is a 177 hectare property located at the Clark Freeport
Zone in Pampanga. It is envisioned to be the premier alternative
commercial business enclave in Luzon. CGC benefits from a world-
class master plan, designed to have the most efficient access to major
transportation nodes in Luzon. As road, port and air congestion issues
in Metro Manila continue to escalate, CGC is the ideal location as the
next major business district. The current government’s initiatives to
develop Clark and its surrounding areas send a clear signal of this
vision for the Clark Freeport Zone.
UDEVCO also acquired a 12 hectare land in Mactan, Cebu through
its subsidiary – LapuLapu Land Corp. Subsequently, a Lease Contract
was executed between LapuLapu Leisure, Inc. and Lapulapu Land
Corp. for a long-term lease of this property, which will be developed
by the former into the newest integrated resort in Cebu called The
Emerald. On July 26, 2017, a groundbreaking ceremony was led by
UDEVCO Chairman and CEO, Dennis A. Uy at Mactan, Cebu.
UDEVCO is similarly into commercial property development through
its subsidiary – Udenna Tower Corporation. Udenna Tower, the
maiden project of Udenna Tower Corporation, is slated to be the
Manila Headquarters of the Udenna Group. It is located at Rizal
Avenue corner 4th Avenue, Bonifacio Global City, Taguig City. As of
December 31, 2017, Udenna Tower is 45% complete and is scheduled
for turnover in 2018.
Another operating subsidiary of UDEVCO is the Calaca Industrial
Seaport Corp. (CISC). CISC, formerly known as Phoenix Petroterminals
and Industrial Park, is the landowner and developer of the 94 hectare
Industrial Park located within the three barangays of Salong, Puting
Bato West, and Lumbang Calzada in Calaca, Batangas. CISC operates
its own port facilities situated along the deep water portions of
Balayan Bay to cater the needs of its locators.
Udenna Group continues its passion for innovation through UDEVCO.
The aforementioned significant projects are the Group’s gateways into
providing the best-quality real estate developments to serve Filipinos
all over the country.
WE WORK FOR YOU 21
 We aim to graduate students with training and character
required for success, offering international-caliber
degree programs in a values-rich environment.

22 UDENNA GROUP ANNUAL REPORT 2017

LE PENSEUR, INC.
With the aim of expanding into industries vital to the Philippine
economy’s further growth, Udenna Corporation created Le Penseur,
Inc. (Le Penseur) in 2017 to act as the group’s holding company for
its Investments in the field of education.
As education plays a fundamental role in enriching lives of the
Filipinos, it was only a matter of time before the Udenna group
invested in training and educational facilities. On 01 June 2017 Le
Penseur completed its acquisition of Enderun Colleges, Inc. (Enderun).
Enderun, founded in 2005, is a premier management school that
offers a full range of bachelor’s degree and non-degree courses
in the fields of international hospitality management, business
administration, entrepreneurship and economics. Enderun takes
its name from the palace school established in Turkey during the
Ottoman Empire where the most promising children were educated
in public administration, among other things.
Enderun aims to graduate students with the academic training,
professional competencies, and character required for success
in today’s complex world by offering international-caliber degree
programs that combine management theory and practical experience
in a values-rich learning environment.
Enderun’s main campus is located on a 1.8-hectare campus in
McKinley Hill, Bonifacio Global City. The Enderun campus houses six
buildings and can accommodate an additional 8,200 square meters
of classroom space. Enderun currently nurtures approximately 1,200
students. Its flagship curriculum, the hospitality management and
culinary arts, features state-of-the-art kitchen and teaching facilities
for its students. Located at the ground floor of the culinary center
is Restaurant 101, the application restaurant of Enderun. Restaurant
101 promises not only be one of Manila’s top dining destinations, but
also the definitive venue for once-in-a-lifetime occasions.
Apart from its on-site restaurant, the students of Enderun are given
the opportunity to widen their learning and experience overseas. Its
internship program has set in place over 305 global partnerships
across 30 countries.
Enderun Colleges provides a career-ready environment with its
industry-specific programs, highly experienced faculty, and intensive
internship placements. The College develops students to become
professionals who cultivate independent thinking and practice
effective leadership in the global workplace.
Udenna’s mission of enriching lives does not end with Enderun, as Le
Penseur is continuously on the lookout to invest and build educational
facilities, further creating synergies within the Udenna group.
WE WORK FOR YOU 23
 CORPORATE SOCIAL RESPONSIBILITY
UDENNA FOUNDATION • The Living Stones Orphanage

UFI also partnered with Living Stones Orphanage (LSO), founded

Udenna Foundation, Inc. (UFI), a non-stock, non-profit organization,
in 1999, with the mission of caring for orphaned, abandoned
was established in 2007 to contribute to the empowerment of
and unwanted children. LSO is an institution officially licensed
the underprivileged through educational, sports and recreational
by the Philippine government through the Department of Social
programs. Since its founding, UFI has continuously carried out various
Welfare and Development (DSWD). Moreover, it is accredited by
activities in the form of direct financial support and distribution of
the Standards Bureau of DSWD.
goods through outstanding charitable institutions, majority of which
are based in Davao.
In 2017, UFI consolidated donated goods such as sacks of rice,
boxes of mineral water bottles, and diapers and handed it to
In 2017, UFI partnered with the following schools and institutions in
LSO for use and consumption of several children under its care.
carrying out the missions of the foundation:
• Missionaries of Charity
• Datu Salumay Elementary School
Inspired by Mother M. Theresa, M.C in Calcutta, India, the
Datu Salumay Elementary School (DSES), a school with a
Missionaries of Charity is an orphanage in Juna Subdivision,
population of more than 200 students and located in Marilog,
Davao City established as a shelter for abandoned and sick
Davao City, is visited whole year round by UFI representatives.
children. Similar to LSO, UFI delivered various goods, including
Majority of DSES’ students are from various tribes in Davao,
food and hygienic supplies to the children of Missionaries of
including Matigsalug, Ata Manobo, and Manobo tribes. These
Charity.
students live in an uphill area where road access is a perennial
problem.
• Foundation of Balay Pasilungan, Inc.
On several occasions during 2017, UFI, in coordination with
Foundation of Balay Pasilungan, Inc. (FBPI), a care centre for
PNX-Udenna Insurance Brokers, Inc., Global Synergy Trade &
homeless abandoned street children, is an active foundation
Distribution Corporation, Pioneer Insurance & Safety Corporation,
with primary activities focused on education. FBPI provides
Visayan Surety & Insurance Corporation, organized outreach
shelter to and sends to school these street children. Moreover,
programs focused on sharing happiness through magic shows,
FBPI performs outreach programs and vocational training
gift-giving, and small salo-salos.
for illiterate street youth. Other programs include anti-child
pornography campaigns, peer counseling and children’s rights
advocacy, among others.

24 UDENNA GROUP ANNUAL REPORT 2017

 As UFI believes in the advocacies of FBPI, the foundation teamed
up with PNX-Udenna Insurance Brokers, Inc. to perform an
outreach program catered to bring joy and to share the feeling of
the Christmas season through a magic show and small salo-salo.
The children were also given school supplies, individual school
bags and clothing.
• Marilog National High School
During the same year, UFI provided sports supplies and
equipment to the students of Marilog National High School,
a Department of Education-managed school and partially
urban secondary public school located in Davao City, Davao
Del Sur. These sports supplies and equipment are envisioned to
encourage the school children to actively participate in sports
activities and enhance the teaching mechanism for the Physical
Education subject.
In addition to these collaborations with different companies and
institutions, Udenna Foundation, Inc. supports students, who are
dependents of employees of Udenna Group of Companies, through
scholarship grants. For the school year 2017-2018, UFI has fifteen
(15) beneficiaries who are recipients of its scholarship grants covering
full tuition fees, cash allowances, books, uniforms, and other school
supplies.
Giving back to the community is part of the Udenna culture.
Through the Udenna Foundation, the UDENNA group’s employees
and volunteers will continue to humbly serve its fellow Filipino
people, guided by its vision of becoming a significant contributor in
the alleviation, education and empowerment of the needs of men,
woman and children.
WE WORK FOR YOU 25
Meldin Alfonso G. Roy Dennis A. Uy Cherylyn C. Uy Chryss Alfonsus V. Damuy Ignacia S. Braga IV

BOARD of DIRECTORS
Dennis A. Uy Ms. Uy is a graduate of Business and Finance from Ateneo de Davao
Chairman, 44, Filipino University.

Mr. Uy is the founder and Chairman of Udenna Corporation. Among the Meldin Alfonso G. Roy
subsidiaries of Udenna Corporation are P-H-O-E-N-I-X Petroleum Holdings, President, 62, Filipino
Inc. (PPHI), Chelsea Logistics Holdings Corp. (CLC), Udenna Management
& Resources Corp. (UMRC), Udenna Development (UDEVCO) Corporation,
Mr. Roy is the President of Udenna Corporation. Before joining the
PH Travel and Leisure Holdings Corp. (PH Travel), Le Penseur, Inc., and
Company, he was the Group Financial Officer and Executive Director of
Udenna Water and Integrated Services, Inc. Under Udenna Corporation’s
Philippine Transmarine Carriers Group of Companies. He also served as
subsidiary PH Travel are the hotel and recreation enterprises LapuLapu
President of ACM Landholdings, Inc., Northern Star Energy Corp., First
Leisure, Inc. and Donatela Hotel Panglao Corp., and air transport entity
Maritime Credit Corp and Finlay Development Corp. and as Managing
Aetos Air Philippines, Inc.
Director for PTC Energy Corporation.
Mr. Uy is currently the Chairman and President of PPHI, the holding
Prior to Philippine Transmarine, he was the Group CFO of Bayan
company of P-H-O-E-N-I-X Petroleum Philippines, Inc. (PPPI) and serves as
Telecommunications, Inc., EVP and Group CFO of Philsteel Group of
the President and Chief Executive Officer of PPPI. He is also the Chairman
Companies, SVP and Group CFO of RFM Corporation, and Group CFO of
of CLC. He is likewise the President and CEO of UMRC and its subsidiaries.
the Alcantara Group of Companies. Mr. Roy also worked for 9 years with
Mr. Uy is also the Chairman of F2 Logistics, Phoenix Philippines
the First Pacific Group where his last position was Group Treasurer.
Foundation, and Udenna Foundation. He is a Director of shipping and
logistics provider 2Go Group, Inc. through Udenna Investments BV’s
Mr. Roy holds a degree in Economics and Masters in Business
subsidiary KGLI-NM Holdings, Inc. He also serves as Independent Director
Administration from the University of the Philippines.
of Apex Mining Corp.

Mr. Uy is a member of the Young Presidents Organization - Philippine
chapter and the Philippine Business for Social Progress. Since November
2011, Mr. Uy has been the Honorary Consul of Kazakhstan to the
Philippines. In 2016, he was appointed as the Presidential Adviser on
Sports.
He is a graduate of De La Salle University with a degree in Business
Management.
Cherylyn C. Uy
Treasurer, 38, Filipino
Cherylyn C. Uy is one of the pioneers and incorporators of Udenna
Corporation, which has subsidiaries engaged in the petroleum, shipping,
logistics and real estate businesses, among others. She is also the
Corporate Treasurer of the Udenna Group of Companies.
Ms. Uy is also one of the Directors of Phoenix Philippines Foundation,
Inc. and of Udenna Foundation, Inc., the corporate social responsibility
entities of the Udenna Group. She is currently the Corporate Treasurer
of Udenna Management & Resources Corp., Chelsea Shipping Corp. and
other Udenna Companies. She also serves as the Corporate Secretary of
Allied Guard Security Agency Philippines, Inc.
Chryss Alfonsus V. Damuy
Director, 44, Filipino
Mr. Damuy is a Director of Udenna Corporation. He is also the Director,
President & CEO of CLC and holds the position of Chief Operating Officer
of Chelsea Shipping Corp. (CSC) and its subsidiaries. He is likewise
the Vice-President for Finance of PPPI and General Manager of Calaca
Industrial Seaport Corp. (formerly Phoenix Petroleum Industrial Park Corp.).
Mr. Damuy is currently the Vice Chairman of Trans-Asia Shipping and its
subsidiaries Oceanstar Shipping Corporation, Starsy Shoppe, Inc., Dynamic
Cuisine, Inc., and Quality Metal & Shipworks, Inc.
Prior to joining the group, he was the Controller of Lapanday Foods
Corporation and held various positions in its subsidiaries including the
Fresh Asia Produce as Accounting Manager and the Mindanao Fresh
Produce Services Corporation as Assistant Accounting Manager. He also
worked as Chief Accountant of the Regional Educators Multi-purpose
Cooperative as its Branch Officer.
Mr. Damuy started his professional career as College Instructor of the Holy
Cross of Davao College where as a Dean’s lister, he earned his Bachelor
of Science Degree in Accountancy in 1997. Mr. Damuy is a Certified Public
Accountant.

26 UDENNA GROUP ANNUAL REPORT 2017

Leandro E. Abarquez Wilfredo A. Placino
Ignacia S. Braga IV
Director and Vice President – Finance, 52, Filipino
Ms. Braga is a Director and the Vice President - Finance of Udenna
Corporation. She also serves as the Vice President- Finance of the Udenna
Group of Companies.
Ms. Braga is a Certified Public Accountant with more than 20 years
of corporate finance and accounting experience. Prior to joining the
Company, she was formerly the Assistant Vice President - Group Controller
of Lapanday Foods Corporation and former Controller of Macondary
Agro-Industrial Corporation. She was the Finance Manager of RFM Tuna
Corporation and the Asia Industries (Mindanao), Inc.
Ms. Braga is a Bachelor of Science Major in Commerce, Cum Laude
graduate from the Ateneo de Davao University. She began her career as
an auditor of Sycip, Gorres, Velayo & Co. in 1986.
Leandro E. Abarquez
Director and Corporate Secretary, 34, Filipino
Atty. Abarquez is the Corporate Secretary of Udenna Corporation. He also
serves as the Compliance Officer of CLC. Prior to joining the Company, he
was a Senior Associate at Romulo, Mabanta, Buenaventura, Sayoc & de
los Angeles.
Atty. Abarquez received his bachelor’s degree in Biology from the Ateneo
de Manila University in 2004, and his juris doctor degree from the same
university in 2009.
Domingo T. Uy
Director, 71, Filipino
Mr. Domingo Uy is a Director of Udenna Corporation. He has served as
Chairman of the Board of P-H-O-E-N-I-X Petroleum Philippines, Inc. since
February 15, 2007 to the present. He is a co-founder and has been a
member of the Board of Directors of the Company since its incorporation
in February 2011. Likewise, he is the Chairman of Granscor Corporation,
a holding company of the Uy brothers engaged in real estate, mining
and commodities trading. He is also a Director of Granland Resources
Corporation, a corporation involved in real estate development, and
Aquamines, Philippines, a firm engaged in prawn farming.
Domingo T. Uy Raymundo Martin M. Escalona
Mr. Uy is currently involved in socio-civic programs and is a Director of
the Philippine National Red Cross, Davao Chapter. He is also the Past
President of the Davao City Sta. Ana Lions Club and the Kang Ha Uy
Association, Davao Chapter.
Wilfredo A. Placino
Director, 58, Filipino
Mr. Placino is a Director of Udenna Corporation and the Director for
Special Projects of the Corporation. He is also the Vice Chairman and
Managing Director of Clark Global City Corp and the President of Udenna
Environmental Services, Inc.
Mr. Placino is a seasoned senior banker having served in the banking
industry for 16 years. Prior to joining the group he held key positions in
corporate banking, relationship management, financial risk management,
and global cash management in Union Bank of the Philippines, City Trust
Banking Corporation, Pilipinas Bank and Standard Chartered Bank.
Mr. Placino earned his degree in Applied Economics at De La Salle
University.
Raymundo Martin M. Escalona
Director, 57, Filipino
Mr. Escalona is a Director of Udenna Corporation. He is also the Project
Director for LapuLapu Leisure, Inc. and the General Manager for Donatela
Hotel Panglao Corp.
Mr. Escalona has over 28 years of experience in corporate financing and
banking, primarily in the areas of treasury and relationship management.
Prior to joining the Company, he was the Executive Vice President and
served as the Head of the Institutional Banking Group of CTBC Bank
(Philippines) Corp. He also served as the Executive Vice President and
Corporate and Institutional Bank Head of Australia and New Zealand
Bank, Manila Branch.
Mr. Escalona was also previously the First Vice President and Unit Head
of Corporate Banking and Financial Institutions in BDO; Vice President
and Head of Large Local Corporate Unit and Deputy Corporate Banking
Head in Deutsche Bank AG, Manila Branch; and Assistant Vice President
of Relationship Management Unit in Citytrust.
Mr. Escalona earned his Bachelor of Science in Commerce degree, Major
in Management of Financial Institutions, at the De La Salle University.
WE WORK FOR YOU 27
28 UDENNA GROUP ANNUAL REPORT 2017
WE WORK FOR YOU 29
30 UDENNA GROUP ANNUAL REPORT 2017
 UDENNA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
DECEMBER 31, 2017 AND 2016
(Amounts in Philippine Pesos)

2016
(As Restated -
Notes 2017 see Note 2)

A S S E T S

CURRENT ASSETS
Cash and cash equivalents 7 P 4,480,967,250 P 3,056,825,105
Trade and other receivables - net 8 10,933,132,889 9,662,590,395
Inventories 9 13,262,633,225 3,148,249,000
Land held for sale and land development costs 10 977,890,244 886,099,731
Due from related parties 33 970,695,254 233,229,912
Restricted deposits 11 1,383,414,837 1,039,801,431
Prepayments and other current assets 12 2,956,370,419 1,649,495,552

Total Current Assets 34,965,104,118 19,676,291,126

NON-CURRENT ASSETS
Property, plant and equipment - net 14 29,375,511,729 16,211,166,361
Intangible assets - net 15 277,757,560 275,037,490
Investment properties - net 16 10,958,207,093 860,472,744
Investments in an associate and joint ventures 17 3,155,734,655 2,645,069,407
Drydocking costs - net 18 303,509,254 169,125,830
Deferred tax assets - net 32 614,194,452 207,964,832
Goodwill 19 53,395,056,338 3,839,635,563
Other non-current assets 20 1,160,832,209 210,829,854

Total Non-current Assets 99,240,803,290 24,419,302,081

TOTAL ASSETS P 134,205,907,408 P 44,095,593,207

LIABILITIES AND EQUITY

CURRENT LIABILITIES
Interest-bearing loans and borrowings 21 P 34,725,643,192 P 23,283,826,515
Derivative financial liability 22 672,228,666 348,687,827
Trade and other payables 24 6,652,977,381 4,119,393,252
Deposits for future stock subscription 34 7,318,967,754 -
Income tax payable 69,897,102 197,065,300
Due to related parties 33 2,521,173,441 839,119,264

Total Current Liabilities 51,960,887,536 28,788,092,158

NON-CURRENT LIABILITIES
Interest-bearing loans and borrowings 21 51,129,194,931 5,198,520,718
Trade and other payables 24 48,644,816 305,678,565
Other non-current liabilities 25 615,463,500 275,694,697

Total Non-current Liabilities 51,793,303,247 5,779,893,980

Total Liabilities 103,754,190,783 34,567,986,138

EQUITY
Equity attributable to Parent Company's shareholders 34
Capital stock 2,000,000,000 600,000,000
Deposits for future stock subscription 8,638,998,257 150,000,000
Revaluation reserves ( 16,779,484 ) ( 11,178,397 )
Share in change in equity of a subsidiary 45,882,568 45,882,568
Accumulated translation adjustment 117,634,281 -
Retained earnings 5,767,058,114 2,922,350,567

Total equity attributable to

Parent Company's shareholders 16,552,793,736 3,707,054,738

Non-controlling interest 13,898,922,889 5,820,552,331

Total Equity 30,451,716,625 9,527,607,069

TOTAL LIABILITIES AND EQUITY P 134,205,907,408 P 44,095,593,207

See Notes to Consolidated Financial Statements.

WE WORK FOR YOU 31
32 UDENNA GROUP ANNUAL REPORT 2017
WE WORK FOR YOU 33
 UDENNA CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2017 AND 2016
(Amounts in Philippine Pesos)

2016
(As Restated -
Notes 2017 see Note 2)
CASH FLOWS FROM OPERATING ACTIVITIES
Profit before tax P 4,391,030,055 P 893,578,633
Adjustments for:
Interest expense 30 3,434,590,310 1,064,881,866
Depreciation and amortization 14, 15, 16, 18 2,073,905,801 1,129,952,518
Gain on bargain purchase 35 ( 650,182,327 ) ( 242,389,918 )
Unrealized foreign currency exchange losses (gains) - net ( 512,956,692 ) 125,515,429
Impairment losses on trade and other receivables 8 125,907,480 117,975,139
Equity share in net income (loss) of joint ventures and an associate 17 ( 86,261,476 ) 30,384,501
Interest income 30 ( 48,902,364 ) ( 9,298,023 )
Loss on disposal of property and equipment 14 9,615,283 43,271,069
Operating profit before working capital changes 8,736,746,070 3,153,871,214
Decrease in trade and other receivables 984,447,584 770,065,559
Decrease in inventories 11,023,826,226 ( 374,818,738 )
Increase in land held for sale and land development costs ( 91,790,513 ) ( 26,749,947 )
Increase in restricted deposits ( 156,021,745 ) ( 779,528,824 )
Increase in prepayments and other current assets ( 409,332,763 ) ( 41,424,603 )
Increase in land held for future development - ( 89,896,136 )
Decrease (increase) in other non-current assets ( 651,823,021 ) 224,123,848
Increase in trade and other payables 866,598,443 141,656,221
Decrease in other non-current liabilities ( 2,102,453,597 ) ( 38,754,117 )
Cash generated from operations 18,200,196,684 2,938,544,477
Cash paid for income taxes ( 783,949,232 ) ( 131,720,500 )
Interest received 41,396,361 7,112,452

Net Cash From Operating Activities 17,457,643,813 2,813,936,429

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisitions through business combinations, net of cash acquired 35 ( 60,824,333,883 ) ( 5,883,325,252 )
Acquisitions of property, plant and equipment 14 ( 9,860,912,956 ) ( 3,652,009,016 )
Additional investments in joint ventures 17 ( 398,075,000 ) ( 257,745,925 )
Additional drydocking costs 18 ( 325,647,628 ) ( 34,463,540 )
Proceeds from disposal of property and equipment 14 40,385,669 106,940,638
Acquisitions of intangible assets 15 ( 33,113,432 ) ( 203,908,603 )
Additions to investment properties 16 ( 32,900,254 ) ( 194,945,167 )
Proceeds from disposal of investment property 16 - 59,515,346

Net Cash Used in Investing Activities ( 71,434,597,484 ) ( 10,059,941,519 )

Balance carried forward ( P 53,976,953,671 ) ( P 7,246,005,090 )

34 UDENNA GROUP ANNUAL REPORT 2017

 -2-

2016
(As Restated -
Notes 2017 see Note 2)

Balance brought forward ( P 53,976,953,671 ) ( P 7,246,005,090 )

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from additional loans and borrowings 85,905,026,542 33,981,269,662
Repayments of interest-bearing loans and borrowings ( 51,550,049,162 ) ( 23,908,367,819 )
Deposit for future stock subscription 34 15,957,966,011 -
Changes in non-controlling interests 6,782,599,464 ( 943,688,142 )
Interest paid ( 4,023,538,222 ) ( 1,209,456,021 )
Additional borrowings from related parties 33 2,495,638,828 810,785,834
Proceeds from issuance for shares of stock 34 1,250,000,000 -
Advances to related parties 33 ( 913,270,461 ) ( 219,539,640 )
Payments made to related parties 33 ( 813,584,651 ) -
Proceeds from total return equity swap (TRES) transaction 21 197,660,243 47,620,693
Collections from related parties 33 175,805,119 88,986,486
Placement of required deposits ( 63,157,895 ) -
Payments of deferred financing costs 20 - ( 64,956,280 )

Net Cash From Financing Activities 55,401,095,816 8,582,654,773

NET INCREASE IN CASH AND CASH EQUIVALENTS 1,424,142,145 1,336,649,683

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 3,056,825,105 1,720,175,422

CASH AND CASH EQUIVALENTS AT END OF YEAR P 4,480,967,250 P 3,056,825,105

Supplemental Information on Non-cash Investing and Financing Activities:

1) In 2017, the Group acquired certain certain properties and equipment through obtaining mortgage loans from local banks totaling
P93.0 million (see Notes 14 and 21).

2) In 2017, additional marginal deposit, in connection with the rolled-over TRES transaction, was made by the Parent Company amounting
to P124.4 million and was set-off against the net proceeds of the additional equity notional amount (see Notes 11 and 22).

3) Interest payments amounting to P30.4 million and P67.7 million in 2017 and 2016, respectively, were capitalized as part of the cost of
property, plant and equipment (see Notes 14.3 and 21.3). In addition, interest payments amounting to P872.3 million and P1.4 million
in 2017 and 2016, respectively, were capitalized as part of investment properties (see Note 16).

4) In 2016, the Group set-off certain advances from a stockholder amounting to P150.0 million for future issuance of capital stock
(see Notes 33.1 and 34.2).

5) In 2016, the Group has acquired certain balances of drydocking costs from acquired subsidiaries amounting to P56.3 million, which
remain unpaid as of December 31, 2016 (see Note 18).

6) In 2016, the Group reclassified its land held for future development amounting to P469.5 million to land held for sale and land development
costs (see Notes 10 and 13). Certain parcels of land under Land held for future development in the consolidated statement of financial position
amounting to P17.8 million were also reclassified to investment properties (see Notes 13 and 16).

7) Certain machineries and hauling and heavy equipment with carrying amount of P29.4 million and P35.8 million as of December 31, 2017
and 2016, respectively, are accounted for under finance leases (see Note 14.5). As of December 31, 2017 and 2016, the outstanding balance
of the obligation under finance lease amounted to P39.7 million and P49.9 million, respectively (see Notes 21.6 and 36.3).

8) In 2016, the Group reclassified certain amounts of Property, Plant and Equipment account to Land held for future development, Intangible
assets, Investment properties and Drydocking costs in the consolidated statements of financial position (see Notes 13, 14, 15, 16 and 18).

See Notes to Consolidated Financial Statements.

WE WORK FOR YOU 35

 CONTACT US
UDENNA CORPORATION CHELSEA LOGISTICS HOLDINGS
Website: www.udenna.ph Website: www.chelsealogistics.ph
Email: info@udenna.ph Email: info@chelsealogistics.ph

Davao Head Office: Davao Head Office:

Stella Hizon Reyes Rd., Bo. Pampanga Stella Hizon Reyes Rd., Bo. Pampanga
Davao City 8000 Philippines Davao City 8000 Philippines
Telephone Number: Telephone Number: +63 82 235-8888
+63 82 235-8888
Metro Manila Office:
Davao Office: 26th Floor, Fort Legend Tower
GSTD Compound, Carmen St. 3rd Ave. cor. 31st St., Bonifacio Global City
Toyozu Road, Bo. Obrero Taguig City 1630 Philippines
Davao City 8000 Philippines Telephone Number: +632 403-4015
Telephone Number: +63 82 225-0328 or +63 82 224-5373 Fax Number: +632 403-4022

Metro Manila Office:

26th Floor, Fort Legend Tower
3rd Ave. cor. 31st St., Bonifacio Global City
Taguig City 1630 Philippines
Telephone Number: +632 403-4015
Fax Number: +632 403-4022
SUBSIDIARIES
ENDERUN COLLEGES, INC.
Website: www.enderuncolleges.com
Email: marketing@enderuncolleges.com
1100 Campus Avenue, McKinley Hill, Fort Bonifacio
Taguig City 1634 Philippines
Telephone Number: +632 856-5000

P-H-O-E-N-I-X PETROLEUM PHILIPPINES, INC. UDENNA DEVELOPMENT (UDEVCO) CORP.

Website: www.phoenixfuels.ph
Email: info@phoenixfuels.ph 26th Floor, Fort Legend Tower
3rd Ave. cor. 31st St., Bonifacio Global City
Davao Head Office: Taguig City 1630 Philippines
Phoenix Bulk Depot, Lanang Telephone Number: +632 403-4015
Davao City 8000 Philippines Fax Number: +632 403-4022
Telephone Number: +63 82 235-8888
Fax Number: +63 82 233-0168

Metro Manila Office:

25th Floor, Fort Legend Tower
3rd Ave. cor. 31st St., Bonifacio Global City
Taguig City 1630 Philippines
Telephone Number: +632 403-4013
Fax Number: +632 403-4021

36 UDENNA GROUP ANNUAL REPORT 2017

 26th Floor, Fort Legend Tower
3rd Ave. cor. 31st St., Bonifacio Global City
Taguig City 1630 Philippines