MANILA BULLETIN PUBLISHING CORPORATION

STATEMENTS OF FINANCIAL POSITION

DECEMBER 31, 2019 AND 2018
(Amounts in Philippine Pesos)

2019 2018
ASSETS

Current Assets
Cash (Notes 2, 3, 4 and 5) P54,889,764 P41,868,913
Trade and other receivables – net (Notes 2, 3, 4 and 6) 1,749,979,557 1,699,204,725
Inventories (Notes 2, 3, and 7) 1,259,721,171 1,303,589,617
Other current assets (Notes 2, 3, and 8) 140,572,702 110,728,403
Total Current Assets 3,205,163,194 3,155,391,658

Noncurrent Assets
Property, plant and equipment – net (Notes 2, 3 and 9) 2,428,204,531 2,483,297,759
Right-of-use asset – net (Notes 2, 3 and 24) 1,176,315 –
Investment property (Notes 2, 3 and 10) 94,808,970 94,808,970
Deferred tax asset – net (Notes 2, 3 and 25) 84,146,941 71,931,411
Prepaid benefit obligation (Notes 2, 3 and 23) 17,669,503 41,233,530
Goodwill (Notes 2, 3 and 11) 5,000,000 5,000,000
Other noncurrent assets (Notes 2, 3, 4 and 12) 122,093,310 114,342,625
Total Noncurrent Assets 2,753,099,570 2,810,614,295

TOTAL ASSETS P5,958,262,764 P5,966,005,953

LIABILITIES AND EQUITY

Current Liabilities
Trade and other payables (Notes 2, 4, and 13) P799,499,748 P1,002,302,644
Trust receipts payable (Notes 2, 4 and 14) 63,171,389 111,615,719
Short-term loans payable (Notes 2, 4 and 15) 518,800,000 270,000,000
Lease liability – current (Notes 2, 3, 4 and 24) 387,827 –
Income tax payable (Notes 2 and 25) 401,915 2,351,630
Total Current Liabilities 1,382,260,879 1,386,269,993

Noncurrent Liabilities
Long-term loans payable (Notes 2, 4 and 15) 1,000,000,000 1,000,000,000
Lease liability – noncurrent portion (Notes 2, 3 and 24) 793,284 –
Total Noncurrent Liabilities 1,000,793,284 1,000,000,000

Total Liabilities 2,383,054,163 2,386,269,993

Equity
Share capital (Notes 2, 4 and 16) 3,475,463,722 3,475,463,722
Retained earnings (Notes 2, 4 and 16) 234,351,764 209,111,785
Accumulated remeasurement losses on
retirement benefit plan (Notes 2, 23 and 27) (118,258,908) (88,491,570)
Treasury shares (Notes 2 and 16) (16,347,977) (16,347,977)
Total Equity 3,575,208,601 3,579,735,960

TOTAL LIABILITIES AND EQUITY P5,958,262,764 P5,966,005,953

See accompanying Notes to Financial Statements.

MANILA BULLETIN PUBLISHING CORPORATION
STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
(Amounts in Philippine Pesos)

2019 2018 2017

NET SALES (Notes 2 and 18) P1,623,700,122 P1,971,795,464 P2,142,006,441

COST OF SALES AND SERVICES

(Notes 2, 19 and 30) (1,275,563,255) (1,451,833,307) (1,374,350,105)

GROSS PROFIT 348,136,867 519,962,157 767,656,336

OTHER OPERATING INCOME (Notes 2 and 20) 142,072,493 59,996,976 118,137,275

OPERATING EXPENSES (Notes 2 and 21) (365,053,643) (493,881,363) (773,669,558)

OPERATING INCOME 125,155,717 86,077,770 112,124,053

OTHER EXPENSE – net (Notes 2 and 22) (89,306,169) (63,581,757) (48,052,226)

INCOME BEFORE INCOME TAX 35,849,548 22,496,013 64,071,827

PROVISION FOR INCOME TAX (Notes 2 and 25) (10,609,569) (6,279,010) (14,204,920)

NET INCOME 25,239,979 16,217,003 49,866,907

OTHER COMPREHENSIVE INCOME (LOSS)

Item that will not be reclassified subsequently to profit or loss
Actuarial gain (loss) – net of tax (Notes 2 and 23) (29,767,338) 2,546,731 (16,198,497)

TOTAL COMPREHENSIVE INCOME (LOSS) (P4,527,359) P18,763,734 P33,668,410

BASIC/DILUTED EARNINGS PER SHARE (Notes 2 and 26)

Computed based on Net Income P0.0073 P0.0047 P0.0143
Computed based on Total Comprehensive
Income (Loss) (P0.0013) P0.0054 P0.0097

See accompanying Notes to Financial Statements.

MANILA BULLETIN PUBLISHING CORPORATION
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
(Amounts in Philippine Pesos)

2019 2018 2017

SHARE CAPITAL (Notes 2, 4 and 16) P3,475,463,722 P3,475,463,722 P3,475,463,722

TREASURY SHARES (Notes 2 and 16) (16,347,977) (16,347,977) (16,347,977)

OTHER COMPONENT OF EQUITY (Notes 2, 23 and 27)

Balance at beginning of year (88,491,570) (91,038,301) (74,839,804)
Actuarial gain (loss) – net of tax effect (Note 27) (29,767,338) 2,546,731 (16,198,497)
Balance at end of year (118,258,908) (88,491,570) (91,038,301)

RETAINED EARNINGS (Notes 2, 4 and 16)

Balance at beginning of year 209,111,785 192,894,782 143,027,875
Net income 25,239,979 16,217,003 49,866,907
Balance at end of year 234,351,764 209,111,785 192,894,782

P3,575,208,601 P3,579,735,960 P3,560,972,226

See accompanying Notes to Financial Statements.

MANILA BULLETIN PUBLISHING CORPORATION
STATEMENTS OF CASH FLOWS
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
(Amounts in Philippine Pesos)

2019 2018 2017

CASH FLOWS FROM OPERATING ACTIVITIES:

Income before income tax P35,849,548 P22,496,013 P64,071,827
Adjustments for:
Provision for impairment losses (Notes 6 and 21) 120,144,484 95,178,729 13,064,968
Depreciation of property, plant and
equipment (Note 9) 62,523,937 66,736,824 70,170,137
Amortization of right-of-use asset (Note 24) 106,938 – –
Interest expense (Note 14, 15 and 24) 89,319,488 63,710,399 48,730,443
Retirement expense (Note 23) 4,689,046 7,393,451 7,618,472
Unrealized foreign exchange loss (Note 22) 2,693 411,603 128,212
Gain on disposal of property, plant and
equipment (Note 20) – – (12,700,000)
Interest income (Note 22) (15,971) (39,433) (86,074)
Accounts receivable written-off (Note 6) (118,160,093) (92,490,715) –
Operating income before working capital changes 194,460,070 163,396,871 190,997,985
Decrease (increase) in:
Trade and other receivables (Note 6) (52,759,223) 123,566,974 278,941,863
Inventories (Note 7) 43,868,446 32,415,264 50,845,955
Other current assets (Note 8) (28,930,839) (5,791,721) (52,184,796)
Decrease in trade and other payables (Note 13) (203,716,356) (159,917,084) (470,112,601)
Net cash generated from (used in) operating
activities (47,077,902) 153,670,304 (1,511,594)
Interest received (Note 22) 15,971 39,433 86,074
Contributions paid (Note 23) (23,649,788) (25,418,054) (27,322,139)
Interest paid (Notes 14, 15 and 24) (89,307,078) (63,421,766) (48,730,443)
Income tax paid (Note 25) (12,017,383) (12,527,138) (17,405,208)
Net cash provided by (used in) operating activities (172,036,180) 52,342,779 (94,883,310)

CASH FLOWS FROM INVESTING ACTIVITIES

Increase in other noncurrent assets (Note 12) (7,750,685) (24,652,647) (22,212,252)
Proceeds from disposal of property, plant and
equipment (Note 9) – – 90,080,718
Additions to property, plant and equipment (Note 9) (7,430,709) (5,997,751) (24,757,447)
Net cash provided in (used in) investing activities (15,181,394) (30,650,398) 43,111,019

CASH FLOWS FROM FINANCING ACTIVITIES

Net proceeds from (payment of) trust receipts
payable (Notes 14 and 29) (48,444,330) 28,802,365 (38,686,257)
Proceeds from availment of loans payable
(Notes 15 and 29) 634,000,000 559,000,000 518,000,000
Payment of loans payable (Notes 15 and 29) (385,200,000) (624,000,000) (455,000,000)
Payments of lease liabilities (Note 24) (114,552) – –
Net cash provided by (used in) financing activities 200,241,118 (36,197,635) 24,313,743
Forward
 -2-

EFFECT OF EXCHANGE RATES CHANGE ON CASH (2,693) (411,603) (128,212)

NET INCREASE (DECREASE) IN CASH 13,020,851 (14,916,857) (27,586,760)

CASH AT BEGINNING OF YEAR 41,868,913 56,785,770 84,372,530

CASH AT END OF YEAR P54,889,764 P41,868,913 P56,785,770

CASH AT END OF YEAR CONSISTS OF:

Cash on hand P12,658,171 P6,345,300 P5,084,785
Cash in banks 42,231,593 35,523,613 51,700,985
P54,889,764 P41,868,913 P56,785,770

See accompanying Notes to Financial Statements.