A. Give the top 5 business segments/business units of your corporation?

a. Aboitiz Power Corporation - They focus on power generation, distribution, and

retail electricity services using renewable and thermal sources. They are now
composed of eight utilities.
b. Union Bank of the Philippines - It is a universal bank that is known for its
superior technology, unique branch sales and service culture, and centralized
backroom operations. It is also considered to be one of the top universal banks in
the country based on its performance ratios.
c. Pilmico Foods Corporation - It is both an agribusiness and food company that
focuses on flour, feeds and animal health, farms, and trading. It is also one of the
largest players in the industry in Southeast Asia.
d. Aboitiz InfraCapital, Inc. - It undertakes all of the firm’s investments for anything
related to infrastructures. This segment is currently taking advantage of the
country’s growth momentum.
e. Aboitiz Land, Inc. - A segment that focuses on developing residential,
commercial, and industrial communities. It has been running for over 20 years.

B. Among answers in A, how did the business segments perform during the year-end
2018?

a. Aboitiz Power Corporation - Aboitiz Power Corporation has been doing well
with increasing figures and ratios. There is a 6% increase in the net income
attributable to equity holders of the parent from P20.4 million to P21.7 million.
Another factor to note is that the company’s current ratio has increased to 1.89
from 1.38 and with this, it can be said that the company is more capable of
paying for their short term obligations as compared to 2017. (See Appendix B)
b. Union Bank of the Philippines - Union Bank’s income statement shows that
there is a 13.02% decrease in the net income attributable to a parent equity
 holder from P8.4 billion to P7.3%. This would be attributable to the 33.5%
increase to P 28,805,422 in the company’s gross and non-operating expenses.
(See Appendix C)
c. Pilmico Foods Corporation - Pilmico Foods Corporation has reported an 8%
decrease from P1.7 billion to P1.6 billion. This decline was associated with the
increasing costs of raw materials used to produce feeds and other farms which
reported less net realizable.
d. Aboitiz InfraCapital, Inc - The net income of Republic Cement and Building
Materials, Inc. has decreased from P671 million back in 2017 to P213 million for
2018. This drastic 68.21% decrease was seen to have been caused by the
higher fuel and power costs which in turn counterbalances the improvement in
sales volume and projects with the government and the private sector.
e. Aboitiz Land, Inc - AboitizLand, along with its subsidiaries reported a decrease
in its consolidated net income from P744 million to P645 million. This 13%
decrease is associated with the nonappearance of fair valuation gains on
investment properties during the year of 2018

C. Which is the most profitable business segment (based on Net income)?

Based on the net income, the most profitable business segment is the Aboitiz
Power Corporation. It appears that this unit generated the most revenue as PHP 130
billion out of the PHP 186 billion revenue of Aboitiz in 2018, came from the sale of
power. This was also the case in the years 2016 and 2017. This shows that 70-75% of
the company’s revenue generation comes from the sale of power (see Appendix A).
Additionally, this segment has an increasing net profit of PHP 21 billion in 2016 to PHP
25 Million in 2018 (see Appendix B).

D. What is the segment’s business strategy? (Provide 1-3 sentences for explanation)
 Abotiz’s strategy is to provide improved solutions and acquire more customers in
the regulated and open access fronts. This is through expanding the company’s
balanced mix portfolio of renewable and thermal power that leads to AbotizPower’s
increase in its momentum growth. Also, the company continues to grow its franchise
areas that are provided by their distribution utilities. It aims to keep in the place of being
the benchmark in service delivery and efficiency.

APPENDIX A
 Appendix B
INCOME STATEMENT OF ABOITIZ POWER CORP
 Appendix C
Income Statement of the Union Bank of the Philippines