2019 ANNUAL REPORT
Vision
To be a world-class conglomerate at the forefront
of Philippine economic growth, successfully
maintaining a strong presence and dominant
position in key Philippine industries while ensuring
continuous benefits to its consumers, communities,
employees, business partners, and shareholders.
Contents
Financial Summary
Our Businesses at a Glance
Our Partnerships
Message from the Chairman
Message from the President
Message from the CFO
Asia Brewery, Inc.
Eton Properties Philippines, Inc.
PMFTC Inc.
Philippine National Bank
Tanduay Distillers, Inc.
Corporate Governance Report
Corporate Social Responsibility
Tan Yan Kee Foundation, Inc.
Asia Brewery, Inc.
Eton Properties Philippines, Inc.
PMFTC Inc.
Philippine National Bank
Tanduay Distillers, Inc.
Sustainability
Asia Brewery, Inc.
PMFTC Inc.
Philippine National Bank
Tanduay Distillers, Inc.
Statement of Management’s Responsibility
for Financial Statements
Independent Auditor’s Report
Consolidated Financial Statements and Notes
Sustainability Report
Tribute to Lucio K. Tan, Jr.
Board of Directors
Investor Information
Mission Banner year for LT Group, Inc.
Seven years ago, Dr. Lucio C. Tan formed
LT Group, Inc., a conglomerate with diversified
Anchored to its Vision, the LT Group commits: interests in banking, beverages, alcohol and
distillery, tobacco and property development.
To increase stockholder values through long-term growth in its Their mission: provide the best products and
major business groups. services to the Filipino consumer.
Today, LT Group, Inc. is stronger than ever.
To continuously improve the value of its products and services As a reward for years of hard work and the
and to provide consumers with more and better choices. pursuit of excellence, the company ends 2019
with its best financial performance on record.
To build the largest, most effective distribution network and A banner year indeed!
widest customer reach in the Philippines.
2 To leverage on synergies between its various businesses to
LT GROUP, INC.
continuously improve revenues and cost structure.
3
4 To enhance the welfare of its employees and the communities
6 where it lives and works.
8 (The Vision and Mission Statements are reviewed and approved
12 annually by the Board of Directors. The latest reviews were on
January 15, 2019 and January 17, 2020.)
14
16
18
LT Group, Inc. Logo
24
Strength and solidarity. This is the essence
26 of the LT Group, Inc. (LTG) logo. The clean
28 balanced lines and curves are central elements
– a mystical symmetrical tree. Drawn in an
36
Eastern-Oriental style, it gives hint to the Company’s Chinese
heritage.
Tree is life. Life is growth. Like a tree, a company with firm
roots, properly nurtured, will continuously grow and give value.
The tree’s trunk is upright, and the branches spread out –
a symbolic consolidation of the subsidiaries and stakeholders
within two circles, one for continuity, the other one for
46 solidarity.
About the Cover
The cover reflects a hard-earned celebration
as LT Group, Inc. (LTG) saw a banner year
50 with record profits for 2019. Just as a
mountaineer devotes rigorous effort and
51
dedication to reach the peak of a mountain,
54 LTG has tirelessly worked to achieve the
2019 ANNUAL REPORT
heights it has achieved today. The climb is
133 not without challenges as the Group came
across a more competitive environment—but
152 this has only made the success sweeter.
154 To showcase the Group’s component
156 companies, their prominent products are
shown on the line chart that reflects the path ASIA BREWERY, INC. ETON PROPERTIES PHILIPPINES, INC. PMFTC INC.
and trajectory of LTG’s annual attributable
net income.
PHILIPPINE NATIONAL BANK TANDUAY DISTILLERS, INC.
2019 ANNUAL REPORT 1
 BANNER
FINANCIAL SUMMARY OUR BUSINESSES AT A GLANCE YEAR

REVENUES EBITDA NET INCOME

in Php Millions in Php Millions in Php Millions
B25% B25% B25% B25% B34% B34%
Asia Brewery, Inc. started as a brewery in 1982. Eton Properties Philippines, Inc. is the real Philippine National Bank is one of the largest
94,244

36,950

27,566
It offers non-alcoholic beverages as well as estate arm of the group. It has a diversified private universal banks in the country.
B18% B35% packaging materials. It is a market leader in the portfolio of residential subdivisions, high-rise and
B41% energy drinks and soymilk categories. It is ranked mid-rise condominiums, BPO office buildings and
75,630

29,658
second in the bottled water segment. Its alcoholic commercial centers.

20,558
beverages, namely beer and alcopop, were spun
64,012

off into AB Heineken Philippines, Inc. in 2016.

21,941
99.9% 99.6% 56.47%

14,581
Ownership Ownership Ownership

NET INCOME NET INCOME NET INCOME

in Php Millions in Php Millions in Php Millions

‘17 552 ‘17 348 ‘17 8,557

‘17 ’18 ’19 ‘17 ’18 ’19 ‘17 ’18 ’19 ’18 421 ’18 479 ’18 9,777

’19 398 ’19 900 ’19 9,938

Note: Pooling Method

TOTAL ASSETS TOTAL LIABILITIES TOTAL EQUITY

in Php Millions in Php Millions in Php Millions
B15% B17% B10%
B15% B17% B10%
B18%
B20%
1,265,831

254,008
B20%
1,011,823

PMFTC Inc. is the business combination of Tanduay Distillers, Inc. has a 99% market share Victorias Milling Company, Inc. is one of

231,190
1,097,777

Philip Morris Philippines Manufacturing Inc. and of rum in the Philippines and 28.8% market share of the country’s largest sugar refineries, based in
866,586

Fortune Tobacco Corporation. It is the leading the distilled spirits industry in 2019. It is the world’s Negros Occidental. In crop year 2018-2019, it

195,315
917,096

cigarette manufacturer in the Philippines. number one rum in terms of volume. In 2016, Tanduay milled 2.7 million tons of cane.
721,780

started selling bioethanol to fuel companies.

49.6% 100.0% 30.9%

Ownership Ownership Ownership

NET INCOME NET INCOME NET INCOME

in Php Millions in Php Millions in Php Millions

‘17 ’18 ’19 ‘17 ’18 ’19 ‘17 ’18 ’19 ‘17 8,298 ‘17 631 ‘17 654

’18 16,793 ’18 909 ’18 764

’19 30,801 ’19 676 ’19 816

Note: For crop year September 2018 to August 2019

PER SHARE DATA RATIOS
in Php, except Pay-out Rate

2017 2018 2019 2017 2018 2019 Attributable Net Income Contribution to LTG
Earnings per Share 1.00 1.50 2.14 Current Ratio 0.62 0.61 0.60 in Php Millions 2018 % to total
Tobacco 8,716 54%
Book Value (at year end) 13.71 15.98 17.27 Current Ratio (without PNB) 4.39 4.03 2.31 Banking 5,468 33%

Cash Dividend 0.18 0.20 0.30 Debt to Equity Ratio 3.70 3.75 3.98 2019 % to total
Property Development
Distilled Spirits
479
890
3%
5%
Pay-out Rate 20.74% 19.98% 20.04% Debt to Equity Ratio (without PNB) 0.15 0.14 0.17 Tobacco 15,499 67%
Beverage 421 3%
VMC 247 2%
Return on Average Assets 1.2% 1.6% 1.6% Banking 5,565 24% Others (-26) 0%

Return on Average Equity 7.6% 10.1% 10.1% Property Development 896 4% Total 16,195 100%

Distilled Spirits 667 3%

Beverage 398 2%
VMC 251 1% 2017 % to total
Tobacco 4,385 40%
Others (-158) -1% Banking 4,826 45%
Property Development 348 3%
Total 23,118 100% Distilled Spirits 631 6%
Beverage 551 5%
Note: Banking attributable to LTG, net of inter-company transactions
VMC 174 2%
Others (-84) -1%

Total 10,831 100%

2 LT G R O U P, I N C . 2019 ANNUAL REPORT 3


OUR PARTNERSHIPS
AB Pascual Holdings Pte. Ltd. is a 50-50 joint
venture between Asia Brewery, Inc. and Corporacion
Empresarial Pascual SL of Spain.
Currently, the Company imports yogurt from Spain
and distributes it in the Philippine market under the
Pascual Creamy Delight Brand. Different variants cater to a wide array
of customers, from Original, Non-fat, Thick and Creamy to Greek Style.
As of end 2019, Pascual Yogurt has a market share of 36%, based on
AC Nielsen estimates and internal data.
The continuous success of Pascual Yogurt has paved the way for a
new product launch of yet another revolutionary product- Bifrutas. It
is the first Milk and Juice product that is low in sugar in the Philippine
market.
2019 proved to be the start for AB Pascual Holdings Pte. Ltd. in
building a robust dairy portfolio that offers high quality, healthy and
affordable products for Filipinos.
AB Heineken Philippines, Inc. (ABHP) is a 50%-50%
joint venture between Asia Brewery, Inc. (ABI) and the
globally-renowned Dutch brewer, Heineken International
B.V. This joint venture officially commenced operations
in November 2016. Armed with Asia Brewery’s local
knowledge and distribution network as well as with
Heineken’s brewing and marketing expertise, ABHP
continues to deliver quality beer brands and an
exceptional experience for its customers.
ABHP’s portfolio combines internationally acclaimed
brands such as Heineken and Tiger with local brands
such as Beer Na Beer, Colt 45 and Tanduay Ice.
ABHP operates two breweries -- one in Cabuyao,
Laguna and another in El Salvador, Misamis Oriental.
Significant investments in infrastructure and equipment
have been made in the last three years, giving ABHP the
capacity and capability to brew beers in the Philippines
with the highest international quality standards.
ALI-Eton Development Corporation
The Company is a 50%-50% joint venture between Ayala Land, Inc. and LT Group, Inc. It
was formed to develop a 35-hectare property along the C-5 corridor that spans portions
of Pasig City and Quezon City into a mixed-use estate.
The project, called Parklinks is envisioned to be the greenest urban estate in Metro Manila,
with 50% of the area devoted to open spaces. A 110-meter long iconic bridge will link
Pasig and Quezon City over the Marikina River, creating a new route to help ease vehicular
traffic in the northeast and east of Metro Manila. The ground breaking ceremony was
held in January 2018, while the bridge began construction in 2019 and targeted for
completion in 2021.
The first phase will cover 16 hectares. It will have a mall with 58,000 square meters
which is targeted to open in 2022. Five towers of residential buildings under the Ayala
Land Premier brand will be launched in the next five years, while another five towers will
be under the Alveo brand, creating a portfolio of over 5,000 units. The first residential
building, Parklinks North Tower, was launched in November 2018.
Brisk residential sales of Parklinks North Tower paved the way for the launching of its
second tower in 2019. Also launched was “The Lattice”.
The Parklinks lifestyle mall that broke ground in December 2018, is expected to open in
2023. There will be 12,000 square meters of office space stacked on top of the mall.
4 LT G R O U P, I N C .
Allianz PNB Life Insurance,
Inc. is a joint venture between
global insurance leader Allianz
SE, and local banking giant,
the Philippine National Bank (PNB). In 2016, Allianz SE acquired 51% of
PNB Life, the life insurance arm of PNB. The joint venture included a 15-year
exclusive bancassurance agreement where products of Allianz PNB Life are
sold in PNB’s more than 700 branches nationwide.
With a diverse product portfolio, Allianz PNB Life offers insurance and
investment solutions for young and growing, and middle established families;
high net-worth individuals, as well as millennials. These products are made
available to PNB customers by Financial Advisors stationed in PNB branches.
This comprehensive portfolio addresses PNB’s customer needs, particularly
saving for the future and growing their money.
On the back of Filipinos’ rising incomes, the Company offers AZpire, a regular
pay unit-linked life insurance plan which focuses on faster fund accumulation
for investment needs. The product series is aimed at millennials, most of
whom are in the early stages of building their professional careers and starting
their own families. It is geared towards providing the best returns to customers’
investments.
PMFTC Inc. (PMFTC) is the business
combination between Philip Morris
Philippines Manufacturing Inc.
and Fortune Tobacco Corporation, a 99.6%-owned subsidiary of
LT Group, Inc. It continues to be the leading cigarette manufacturer
in the Philippines, with a market share of 70.5% in 2019. PMFTC
manufactures 7 out of the top 10 brands available in the market today
led by Marlboro, the world’s number one cigarette brand, and Fortune,
the largest heritage home-grown brand in the Philippines.
PMFTC continued the Promote Learning Activities for the Youth
program (PLAY), which focuses on child labor elimination on tobacco
fields by providing off-farm activities for children and skills training
for adolescents. The program, in collaboration with Universal Leaf
Philippines Inc. and the Jaime V. Ongpin Foundation, Inc. welcomed
over 3,300 children from 36 barangays of Ilocos Sur, La Union, and
Abra, and 20 schools in Isabela and Cagayan.
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In conjunction with saving for the future, Allianz’s offering for the health space
is an international health product: Allianz Well! This health plan is meant to
redefine the insurer’s role from simply being an insurance payer to being
an engaged provider with value-added wellness and lifestyle services and
benefits.
While its bancassurance partnership with PNB remains to be the main
business, Allianz PNB Life has also strengthened its reach to a wider
customer base. The Company has already on-boarded more than 1,600
agents, enhancing its agency sales channel in Luzon, Visayas, and Mindanao.
This will ensure that the Company can reach and secure the futures of more
Filipino families nationwide.
The Company has embarked on strengthening its digital capabilities meant
to provide better customer and distributor experience through e-applications,
e-policies, e-notices, and e-learning. This digitalization aims to make the
services more streamlined and efficient while also promoting a paperless and
more sustainable organization.
Outside the business, and in contribution to being the most sustainable
insurer for three years running based on the Dow Jones Sustainability Index,
Allianz PNB Life has increased its sustainability focus in the country. The
Company embarked on a tree-planting activity in partnership with Mr. Lucio
Tan III’s Green Canopy Project, which aims to plant a million trees across the
archipelago. It also partnered with eSakay by sponsoring ejeepneys, which
are public utility electric vehicles that spew far fewer emissions than standard
gasoline or diesel-powered ones. The Company has also adopted 10 hectares
of mangrove wetlands in the E.B. Magalona district of Negros Occidental.
Other sustainability activities—this time putting emphasis on social inclusion—
are the sponsorship of the Philippine para-OCR team, the Philippine Cerebral
Palsy football team, as well as the Aetas of Porac, Pampanga. Allianz PNB Life
also continues its advocacy to promote grassroots football and futsal in the
country through the Allianz National Youth Futsal Invitational.
2019 ANNUAL REPORT 5

MESSAGE FROM THE CHAIRMAN
Dear Fellow
Shareholders
6 LT G R O U P, I N C .
“Our record-breaking accomplishment reflects
the hard work across our operations. Just a
few years back, it was hard to imagine that we
could bounce back...” - Dr. Lucio C. Tan
L T Group, Inc. (LTG) concluded 2019 with a
strong financial position. At the end of our fiscal
year, we posted a net income of Php23.1 billion –
43% higher than 2018. By far, this is our highest
recorded income since our public listing seven
years ago in 2013.
Two-thirds or 67 percent of our 2019 income
came from tobacco. At Php15.5 billion, our tobacco
income share from PMFTC is 78% higher than the
previous year. It’s also worth noting that Philippine
National Bank accounted for a quarter or 24
percent of our income. This is 2 percent higher
than 2018.
Our record-breaking accomplishment reflects the
hard work across our operations. Just a few years
back, it was hard to imagine that we could bounce
back from the longest and deepest downturn in our
Company’s history due to illicit tobacco trade.
It is incredible how we fought, adapted and stayed
the course to emerge a much stronger company.
For making LTG’s Banner Year possible, our
shareholders, management and staff deserve much
praise and gratitude.
Although strong operating results and record
financial performance are crucial yardsticks of
our Company’s health, it is equally important to
share the fruits of our labor. Through our different
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foundations, we conceptualized and supported
sustainable philanthropic efforts. We continue to
make good progress on our sustainability goals
detailed in this report.
While we have much to thank for, we also end
2019 on a sad note. The untimely passing of my
son and our Director Lucio ‘Bong’ K. Tan, Jr., casts a
pall over my family and the entire Lucio Tan Group.
We thank you for your prayers and for sharing
our grief. To honor Bong’s memory, we pledge to
continue his legacy and good works.
Moving forward, I believe our collective commitment
to innovation, sustainability and productivity will
drive our business to greater heights in 2020 and
beyond.
On behalf of our Board of Directors, the
management team and our hardworking
employees, I want to express my sincere
appreciation to all our shareholders. With your
continuing trust, I’m confident that we can surpass
our 2019 Banner Year in the years ahead.
DR. LUCIO C. TAN
Chairman and Chief Executive Officer
2019 ANNUAL REPORT 7
 BANNER
MESSAGE FROM THE PRESIDENT YEAR

“For LTG, 2019 was a banner year… This is the

second year that earnings have reached all-time highs,
and the fifth consecutive year of continuous growth.”
From Php35 per pack in 2019, it increased to
Php45 per pack in 2020, increasing by Php5 per
pack annually from 2021 to 2023, then increasing
by 5% annually thereafter.

LTG is not against tax increases, but believes that

the hikes should be moderate. Continual price
14.1 %
Tier 1 ratio
increases to pass on higher excise taxes may result
in further volume drops. The industry’s volume consolidated
was estimated at 108.9 billion sticks in 2012 and
declined by 35% to an estimated 70.5 billion sticks
in 2019. The industry is estimated to have declined
by 4% in 2019. From a low of Php2.72 per pack Philippine National Bank (PNB) recapitalized
of 20 sticks in 2012 for the lower tier and Php12
PNB had a Php12 billion stock rights offering
per pack for the upper tier, the excise tax was at

T he Philippine economy continued its expansion

in 2019 with Gross Domestic Product (GDP)
growing by 5.9%. However, this was lower
than 2018’s 6.2% growth, largely due to the
late approval of the General Appropriations Act
which saw delays in the implementation of the
Government’s infrastructure projects.
Inflation was lower at 2.5% from 2018’s 5.2%,
Php6.93 billion or 43% higher than the Php16.19
billion we reported in 2018. This is the second year
that earnings have reached all-time highs, and the
fifth consecutive year of continuous growth.
PMFTC EQUITY
IN NET EARNINGS
in Php Billions
15.40
Php35 per pack in 2019, and increased to Php45
per pack starting 2020.
The Government has kept the illicit trade under
control by conducting more raids. In 2019, there
were 116 enforcements, 53% more than 2018’s 76
enforcements, with twelve illegal factories raided
(vs. seven in 2018), and 47 machines seized with a
capacity of producing 30 million sticks per day.
in July, and LTG participated to the extent of its
ownership, for Php7.178 billion. The higher capital
will enable the bank to further grow and cushion
somehow the impact of non-performing loans
(NPLs) with the expected downturn in the economy
in 2020 brought about by the COVID-19 pandemic.
PNB’s net income under the pooling method
was Php9.94 billion for 2019, 2% more than the
Php9.78 billion reported for 2018. Both periods

brought about mainly by lower rice prices. This

enabled consumer spending to remain healthy, LTG’s tobacco business reported a net income of included gains from the sale of Real and Other
with Household Consumption and Expenditure Php15.56 billion in 2019, Php6.81 billion or 78% Properties Acquired (ROPA), at Php425 million,
8.46

increasing by 5.8% and accounted for 68.4% more than the Php8.75 billion reported in 2018. net of taxes, in 2019 and Php3.85 billion in 2018.
4.37

of GDP. Remittances sent by Overseas Filipino
Workers (OFWs) to their families in the Philippines
increased by 3.9% to USD33.5 billion, while
the number of employees of the Information
Technology-Business Process Outsourcing (IT-
BPO) industry expanded by around 6% to 1.3
million and revenues reached USD26.3 billion.
For LTG, 2019 was a banner year. Our
attributable net income reached Php23.12 billion,
Equity in net earnings from LTG’s 49.6% stake
‘17 ‘18 ‘19
in PMFTC was Php15.40 billion, Php6.93 billion
or 82% more than 2018’s Php8.46 billion. The
higher income is attributed to the higher share of
PMFTC continues to account for the premium Marlboro as well as the price increases
bulk of our earnings implemented in late August 2019. Volume
declined by 3% in 2019.
On July 25, 2019, President Duterte signed
Republic Act (RA) 11346 which increased further
the excise tax on tobacco starting January 2020.
Excluding the ROPA gains, the Bank’s core income
was at Php9.51 billion in 2019, 61% higher
compared to 2018’s Php5.92 billion.
Net Interest Income was 20% higher as loans and
receivables grew by 12% year-on-year, as well as
an increase in its investment portfolio while Net
Interest Margin slightly improved. Net Service Fees
and Commission Income grew 20% and Trading
and Foreign Exchange Gains were 98% higher.

8 LT G R O U P, I N C . 2019 ANNUAL REPORT 9


Eton Properties Philippines, Inc.’s (Eton) leasing
revenues continue to grow
Eton’s net income for 2019 was at Php900 million,
88% more than 2018’s Php479 million.
Eton continued to expand its leasing portfolio with
the opening of Eton WestEnd Square in Makati
City during the second quarter of 2019. Its retail
component, eWestMall, has two floors of retail
spaces with a total leasable area of approximately
3,600 square meters. The office component,
eWestPod, has over 13,000 square meters of
office space.
At the end of 2019, Eton had a leasing portfolio
of approximately 181,000 square meters of office
space and over 43,500 square meters of retail
space. Construction is ongoing in a number of
projects to increase further the leasing portfolio.
ETON’S LEASING
REVENUES
in Php Billions
1.71
1.50
1.39
‘17 ‘18 ‘19
Tanduay Distillers, Inc.’s (TDI) higher revenues
affected by higher alcohol costs that saw margins
decline
TDI’s net income for 2019 was Php676 million,
Php233 million or 26% lower than 2018. The
lower income was due to lower margins from higher
alcohol costs and higher interest expenses.
10 LT G R O U P, I N C .
TDI’S GROSS
PROFIT MARGIN
in Percentage
18%
17%
16%
‘17 ‘18 ‘19
Total revenues were Php19.28 billion, 6% more
than 2018. Revenues from liquor were 3% higher
with the 2% increase in volume and an average
Php14 per case increase in selling prices to
pass on the higher excise taxes. Revenues from
bioethanol were 30% higher as volume increased
by 18% and selling prices by 12%.
As of end-2019, TDI’s nationwide market share
for distilled spirits was at 27.8%, slightly lower
than end-2018’s 29.0%. In the Visayas and
Mindanao regions where most of TDI’s sales are
generated, market share was at 64.2% and 73.1%,
respectively, as of December 2019, compared to
64.7% and 72.6%, respectively, as of December
2018.
Asia Brewery, Inc.’s (ABI) Cobra recovers from sugar
tax; bottled water and soymilk continue to grow.
The imposition of the sugar tax starting 2018
adversely affected the sales volume of Cobra due
to the price increase to pass it on, exacerbated
by higher rice prices which affected the target
market’s purchasing power. In 2019, Cobra’s
sales volume was able to recover, but is still lower
than the 2017 level. Meanwhile, the sales volume
growth of Absolute and Summit bottled water and
Vitamilk soymilk continue to be strong. Our new
bottled water plant in Pampanga started operating
in May 2019.
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The Government estimates that the economy will
ABI’S NET INCOME contract by 2% in 2020, but some economists
in Php Millions
expect a higher deceleration of 10-20%. With
552
purchasing power affected, demand for consumer
421
goods is expected to be weak, and will affect the
398
sales volumes of the products of PMFTC, TDI and
ABI. Eton will also be affected as some tenants
may end their lease contracts while demand for
‘17 ‘18 ‘19 residential units will be weak. PNB will have to
grapple with NPLs and slower demand for loans.
ABI’s earnings for 2019 was Php398 million, 5% Even as the economy is restarted under different
lower than 2018 due to higher selling expenses on permutations of the quarantine thereafter, it will
advertising and promotions, despite the 6% growth take a while before our economy goes back to the
in revenues. Our equitized share in a joint venture normal, or to what it used to be. The key to a faster
recovery would be the availability of a vaccine,
continues to be a drag to our earnings as well.
which we hope will be sooner than later.
Cobra energy drink remains the market leader with
a 72% market share. Our bottled water brands To conclude, I would like to thank our stakeholders
have the second largest market share at 25%, for the continued support and trust in our Company.
while Vitamilk has 77%. To our Board of Directors, management team
and employees, thank you for your dedication,
Guarded Outlook for 2020 due to COVID-19 commitment and hard work. Thank you for being
with us through good and difficult times.
With the Coronavirus Disease 2019 (COVID-19)
pandemic, we have a guarded outlook for 2020.
The strong results we had for 2019 gives a strong
foundation for our Group, and will hopefully help us
weather this pandemic.
Since the Government ordered an Enhanced
Community Quarantine (ECQ) in Metro Manila MICHAEL G. TAN
President and Chief Operating Officer
and the island of Luzon starting March 17, 2020,
followed by other areas around the country, many
industries have been disrupted, many people have
lost their livelihood and jobs, while businesses are
struggling to keep afloat. Moreover, thousands of
OFWs have gone back to the Philippines as their
host countries and employers also feel the impact
of the pandemic.
2019 ANNUAL REPORT 11

MESSAGE FROM THE CFO
F or the year 2019, LT Group, Inc.’s (LTG) total
revenues amounted to Php94.24 billion, an
increase of Php18.61 billion or 24.6% over 2018’s
Php75.63 billion in revenues. Banking, beverages
and distilled spirits segments reported an increase
in revenues over the previous year, while the
property development segment had a slight
decrease year-on-year.
Philippine National Bank (PNB) had the highest
increase in revenues, followed by Tanduay Distillers,
Inc. (TDI), Asia Brewery, Inc. (ABI), then Eton
Properties Philippines, Inc. (Eton). PNB’s revenues
were driven by higher interest income and trading
gains, while ABI’s revenues were driven by higher
contribution of its bottled water, packaging and
soymilk products. Bioethanol sales improved TDI’s
revenues, and Eton revenues were fairly flat.
The 2019 attributable net income of LTG reached
Php23.12 billion, Php6.93 billion or 42.8% higher
than 2018’s Php16.19 billion. The tobacco,
property development and banking segments
12 LT G R O U P, I N C .
posted higher net income versus the previous year.
Beverages and distilled spirits netted lower income
year-on-year.
The tobacco business contributed 67% while PNB
accounted for 24% of LTG’s attributable income in
2019. Eton contributed 4%, TDI 3% and 2% from
ABI. Equity in net earnings from 30.9%-owned
Victorias Milling Company, Inc. (VMC) amounted to
Php251 million, or 1% of total attributable income.
The contribution of the tobacco business reached
Php15.50 billion, a Php6.78 billion or 77.8%
improvement over 2018’s Php8.72 billion. The
tobacco business’ income is primarily from the
equity in net earnings of its 49.6% stake in PMFTC
Inc. (PMFTC), which amounted to Php15.40 billion
in 2019, a Php6.93 billion or 81.9% increase
compared to 2018’s Php8.46 billion. This was
mainly due to favorable sales mix and higher
prices implemented during the year. The excise
tax law on tobacco, Republic Act (RA) 11346, was
passed on July 25, 2019. This law increased taxes
“The 2019 attributable net income of LTG
reached Php23.12 billion, Php6.93 billion or
42.8% higher than 2018’s Php16.19 billion.”
from Php35 per pack to Php45 per pack starting
January 2020, a step-up of Php5 per pack annually
from 2021 to 2023, then a 5% increase from 2024
onwards.
PNB’s 2019 contribution amounted to Php5.57
billion in 2019. The bank saw an increase in its
core income, but was partially dragged by an
increase in operating expenses. Gains from real
and other properties acquired (ROPA) likewise
contributed, albeit more tempered than previous
years. This brought PNB’s net contribution to LTG
in 2019 higher by Php97 million or 1.8% versus
the previous year.
Eton’s contribution amounted to Php896 million,
Php417 million or 87.1% higher than the previous
year’s Php479 million from improved margins
in its residential sales segment as well as lower
operating expenses.
TDI’s contribution was Php667 million, Php223
million or 25.1% lower than 2018’s Php890 million.
Cost increases affected margins in both liquor and
bioethanol segments. These, along with higher
operating expenses, led to a decrease in TDI’s
bottom line in 2019.
ABI contributed Php398 million to LTG, Php23
million or 5.5% lower than 2018. ABI’s 2019
income was driven by volume improvements
in bottled water and energy drinks, as well as
locally produced soymilk. This was weighed down
by higher costs for advertising, overhead and
packaging, as well as marketing spend by AB
Heineken Philippines, Inc. as the joint venture
continues to heavily invest in the local market.
BANNER
YEAR
On May 9, 2019, LTG paid a regular cash dividend
of Php0.15 per share and a special cash dividend of
Php0.15 per share, or a total of Php3.25 billion to
shareholders on record as of April 29, 2019. This is
equivalent to 20.04% of 2018’s attributable income
of Php16.19 billion, in line with the Company’s
dividend policy of a 20% pay-out rate.
On July 12, 2019, LTG participated in PNB’s Php12
billion stock rights offering in the amount of Php7.18
billion. In the latter part of the year, LTG redeemed
Php9.52 billion of its Php18.06 billion preferred
shares issued in 2013 and 2014.
Total capital expenditure was Php15.54 billion in
2019. PNB invested Php2.63 billion, primarily for
IT and branch-related projects. ABI spent Php1.94
billion as it increased capacity of its bottled water
business. Eton invested Php1.58 billion for the
ongoing construction of its projects. TDI spent
1.08 billion for various plant upgrades. Meanwhile,
LTG subscribed to Php7.18 billion in PNB’s stock
rights offering. The Company also invested close to
Php1.14 billion in its joint venture with Ayala Land,
Inc. for the 35-hectare Parklinks project.
LTG’s balance sheet remains strong, with the parent
company’s cash balance at Php441 million as of the
end of 2019. Debt-to-Equity Ratio was at 3.98:1
with the Bank, and at 0.17:1 without the Bank.
JOSE GABRIEL D. OLIVES
Chief Financial Officer
2019 ANNUAL REPORT 13

BEVERAGES
S tarting from a humble vision to break the beer monopoly in 1982,
Asia Brewery, Inc. (ABI) is now a major player in the Philippine
beverage and industrial packaging industry. In 2016, ABI formed a
joint venture with Heineken International B.V. for the alcoholic beverage
segment. The 50%-owned joint venture was named AB Heineken
Philippines, Inc. (ABHP). This allowed ABI to focus on its top-selling
non-alcoholic brands in the local beverage market: Cobra (#1 energy
drink), Vitamilk (#1 soymilk), and trusted drinking water brands,
Absolute and Summit.
ABI’s revenues grew by 6% year-on-year, to Php15.93 billion in 2019
from Php15.10 billion in 2018. Higher revenues were realized by
capitalizing on the continued growth in the bottled water segment and
maintaining strong market positions in the energy drinks and soymilk
segments. The Company commissioned a new bottled water plant in
Central Luzon to meet the growing consumer demand for its bottled
water products in the North. Cobra’s strong brand allowed it to regain
lost volumes as the energy drinks segment bounced back from demand
contraction brought about by the tax on sugar sweetened beverages
imposed starting 2018. Vitamilk maintains its leading position in the
soymilk segment allowing it to reap the benefits of shifting consumer
preference towards healthier food and drink offerings.
True to its mission to offer quality products at affordable price points,
ABI’s continuous efforts to innovate and improve manufacturing costs
allowed it to maintain its gross profit margin despite price increases
on most of its inputs brought about by the fresh round of excise tax
increase on petroleum products at the beginning of 2019.
Operating expenses were 10% higher year-on-year as the Company
invested more on advertising and marketing. ABI’s net income amounted
to Php398 million in 2019, Php23 million or 5% lower than in 2018.
Cobra upheld its market leadership commanding 72% of the energy
drinks market. Cobra volumes remained stable despite aggressive price-
offs waged by indirect competitors in the carbonated soft drinks market.
Building on the success of its campaigns with primetime king and “Idol
ng Masa” Coco Martin, Cobra launched the “Angat ang Lakas Mo!”
campaign in 2019 to further strengthen its foothold in the mass market.
With its sustained revenue base, Cobra remained as the Company’s
flagship product, accounting for over a third of revenues.
Bottled water, the second biggest contributor to revenues, continued
its growth momentum with 13% volume growth in 2019. Absolute
and Summit bottled water brands ranked second with a 25% market
14 LT G R O U P, I N C .
share, just trailing behind the low-cost competitor. Backed by strong
marketing and advertising support, Absolute and Summit continue to
strengthen brand equity with nationwide thematic and trade programs.
Summit’s “Thirst for the Win” campaign and Absolute’s “Pure water.
Pure love.” campaign of Judy Ann Santos reinforced its position as the
affordable and most trusted bottled water brand for the Filipino family
and consumer. Pioneering the local production of drinking water in
premium glass packaging, Summit Still and Summit Sparking were
launched in November 2017. In 2019, Summit became the #1 brand in
the still and sparkling water in glass format category.
Vitamilk continued to dominate the soymilk market with 77% market
share and has maintained its position as the #2 brand in the ready-to-
drink milk category. With the “Pagud-tom, Fills Good” campaign, Vitamilk
positions itself as the healthy and energizing drink for the youth market.
Commencement of the local production of Vitamilk in one-way glass
format helped fuel brand growth by 22% while controlling product costs.
BANNER
YEAR
In 2019, the Heineken, Tiger Black and Tiger Crystal beer brands
continued their growth trajectory. In line with the Company’s ambition to
create new experiences for Filipino consumers, the Company introduced
the Blade Draught beer system for Heineken. Blade enables customers
and consumers to serve high quality draught beer at any location,
especially in bars that do not have enough space for keg systems. The
Blade also allows consumers to experience draught beer for their parties
at home. ABHP has been expanding Tiger’s presence in the market with
increased distribution, supported by barangay activations.
REVENUES
in Php Billions
15.93
15.10
13.89
‘17 ‘18 ‘19
ABI continues to invest in its partnerships and research and
development efforts for new products, while strengthening operational
and distribution efficiencies in order to focus on delivering product
innovation and affordability to its customers in the Philippines and other
In the packaging segment, the volume of commercial glass bottles sold markets.
to third ppartyy customers slowed by 4% as more capacity is shifted back
to production for internal requirements. This decrease was partially
offset by a 6% improvement in corrugated carton box sales. The
packaging division has aggressively pursued large commercial glass
customers through the emphasis on excellence in quality and customer
service. As a result, it is now the preferred supplier of a leading soft
drinks manufacturer and a leading condiments and sauce producer,
among others, for their glass container requirements.
Other emerging product lines continue to experience encouraging
growth. Creamy Delight Yogurt for one, has achieved healthy market
shares in consumer markets outside of Metro Manila where its expanded
flavor line and long shelf life have distinct competitive advantages. Under
a joint venture with Corporacion Empresarial Pascual SL of Spain,
continuous product innovations and improved distribution strategies
have resulted in a 34% growth in volume for 2019. Also in 2019, ABI
Pascual Foods Incorporated launched Bifrutas, the first milk with juice
drink in the Philippines.
Nestea ready-to-drink iced tea, on the other hand, under license from
Nestle Philippines, Inc. grew by 5% in 2019 in the midst of a crowded
market.
2019 ANNUAL REPORT 15
 BANNER
PROPERTY DEVELOPMENT YEAR

Once completed, it will add approximately 10,500 square meters

of office space and 14,000 square meters of residential space
to the Company’s leasing portfolio. Construction is also ongoing
for the 4.3-hectare Eton City Square in Sta. Rosa, Laguna. The
first phase of the neighborhood retail and commercial center will
offer 6,900 square meters of gross leasable area when finished.
Likewise, construction is on track for NXTower I, an office

A balanced portfolio propelled Eton Properties Philippines,

Inc.’s (Eton’s) net income in 2019, which soared 88% to
Php900 million compared to the Php479 million reported in the
previous year. Total revenues slightly decreased to Php3.14
billion from Php3.20 billion.

The growth in Eton’s recurring income was driven by the

strong uptake of its commercial spaces following the opening
of neighborhood lifestyle and community center, Eton Square
Ortigas in San Juan City, as well as stable occupancy of office
spaces. As a result, Eton’s rental income reached Php1.71
billion, representing a 14% increase compared to the same
period last year.

Cyberpod Five Lobby

building along Emerald Avenue and Ruby Road in Ortigas adding

Eton WestEnd Square
21,000 square meters of gross leasable area to the Company’s
Real estate sales, on the other hand, were recorded at Php1.43 leasing portfolio once completed.
billion.
Consolidated assets increased to Php32 billion from Php31
Eton continued to expand its leasing portfolio with the opening billion in 2018. Total liabilities, on the other hand, stood at Php14
of Eton WestEnd Square in Makati City. Its retail component, billion.
eWestMall, has two floors of retail spaces with a total leasable
area of approximately 3,600 square meters. Dining and functional
service establishments have already opened their doors to the
public, and more tenants are expected to do so in the next few TOTAL REVENUES
in Php Billions
months. Alongside this, eWestPod, the office component of the
3.20 3.14
nano-township, also opened offering over 13,000 square meters
of office space. 2.24 1.70 1.43
0.85

At the end of 2019, Eton has a leasing portfolio of approximately 1.71

1.39 1.50
181,000 square meters of office space and over 43,500 square
meters of retail space. ‘17 ‘18 ‘19

Residential Sales
Meanwhile, Eton’s construction activities remained in high gear. In
Leasing
2019, the 36-storey Blakes Tower in Makati City was topped off.
Cyberpod Five

16 LT G R O U P, I N C . 2019 ANNUAL REPORT 17

 BANNER
TOBACCO YEAR

Sales and Marketing

P MFTC Inc. (PMFTC), the business combination

between Philip Morris Philippines Manufacturing
Inc. (PMPMI) and Fortune Tobacco Corporation (FTC),
continues to be the leading cigarette manufacturer in the
Philippines and has been providing the country’s adult
smokers with the best smoking experience through its
diverse brand portfolio.

PMFTC manufactures 7 out of the top 10 brands

available in the market today, led by Marlboro, the world’s
#1 cigarette brand, and Fortune, the largest heritage
home-grown brand in the Philippines.

In 2019, excise tax on cigarettes was increased following Marlboro via Scanpack – a technology which allows
the President signing into law RA 11346. The new adult smokers to scan any pack of Marlboro to discover
excise rates increased from Php35.00 to Php45.00 per brand stories, play games and win prizes.
pack from January 2020 until December 2020 with an
increase of Php5.00 every year until 2023. These efforts strengthened the Brand Power of Marlboro
and also increased market share vs. previous year,
PMFTC’s market share ended at 70.5%, up by 0.6 share making Marlboro still the #1 cigarette brand in the
points versus prior year. Philippines.

PMFTC employs around 3,900 employees and indirectly

contracts around 13,500 tobacco farmers through Marlboro’s solid performance continued in 2019. The
its suppliers, Universal Leaf Philippines and Trans year was kicked-off with the Marlboro Tipping and Gold
Manila Inc.. The Company relies on its competent and pack upgrade, a sleek and progressive look intended for SALES VOLUME MIX
diverse workforce supported by individual development the modern-day adult smoker. To keep things fresh and 14% 10%
15%
and a merit-based career management program that 8%
relevant in the menthol segment, this was then followed 9% 6%
recognizes potential and rewards achievements. PMFTC with the Marlboro Ice Blast Mega launch which provided 26%
27% 32%
is continually shaping its people and culture in order to adult smokers with increased menthol sensation via the
continue to thrive in the coming years and beyond. Mega capsule. Both initiatives had extensive support
through visibility materials, and trade engagement that 56%
As a responsible corporate citizen, PMFTC, through 49% 48%
yielded impressive results.
its CSR program “Embrace”, believes that giving back
creates shared value that benefits the communities where
To continue the momentum, Discovered by Marlboro ‘17 ‘18 ‘19
it operates. Community investments depend on their
was launched in August 2019. An integrated online and
needs with the aim to help achieve the global Sustainable
offline program which brings to life the brand values of Marlboro Fortune Jackpot Others
Development Goals (SDGs). Programs include access
to quality education or vocational training, income-
generating initiatives, and the promotion of women’s
leadership roles in society. The Company is also active in
helping address natural or man-made disasters and other
emergencies.

18 LT G R O U P, I N C . 2019 ANNUAL REPORT 19


TOBACCO
In 2019, Fortune showed resilient performance despite
its reposition from low to mid-price segment, mainly
due to sustained and consistent support to the brand
in the last three years. In line with the strategy to build
the brand through upgrades and enhance differentiation
versus competition, 3 Fortune SKUs (Original, 100s
Menthol and Blue) were upgraded to FIRM FILTER along
with a tipping design change in mid-July.
This product upgrade is supported with Marlboro’s
endorsement to further build quality credentials for
Fortune. To further build its image as the tropa’s ally in
the Philippines, yearlong activations were conducted at
major fiestas and music festivals offering a thematically
designed “Festival” and “Music” limited edition packs
to help reconnect the brand with its core audience and
bring to life the brands promise of “Tatak Ng Tropang
Tapat.” To date, Fortune remains to be the #1 local
cigarette brand in the Philippines.
In November 2019, Philip Morris Red launched nationally
as PMFTC’s full-flavor mid-price offer. The product
provides a strong functional unique selling proposition,
FIRMSTICK – the only cigarette designed with FIRM
FILTER and extra tobacco to give a rich, consistent
smoking experience from beginning to end. The launch
was supported by massive visibility materials at point of
sale, aggressive sampling targeting full flavor legal age
smokers through extensive consumer engagement efforts
nationwide.
20 LT G R O U P, I N C .
Digital Trade Engagement (DTE)
In October 2019, following a successful pilot in general
trade (sari-sari) stores in Manila, PMFTC commenced
scaling up its new digital platform APPwards nationally.
The dedicated mobile website is for the exclusive
use of PMFTC approved retail customers delivering
a user-friendly interface for them to earn points and
redeem for rewards. Augmenting the current Field
Sales Force regular retail engagement, PMFTC is now
able to centrally allocate customized “digital tasks” and
provide relevant information direct to retailers at a higher
frequency than normal physical visits allow.
Tasks can include surveys, quizzes and brand information
used to create greater understanding and feedback
on our products from retailers. In addition, traditional
Trade Programs designed to drive sales and launch new
products can be digitalized to increase efficiency, by
both reducing complexity and increasing the speed of
execution.
Despite potential barriers
with smartphone ownership
and connectivity, by year end
PMFTC has enrolled 28,500
retail outlets on the platform.
Retailer acceptance and
engagement was faster than
expected with weekly logins
as high as 81% and task
completion rate of 50%.
BANNER
YEAR
November 2019 provided the best opportunity to fully
test digital retail engagement with the national launch
of Philip Morris Red. Tasks were developed and aligned
with the retailer’s journey through this new product
launch, providing more compelling rewards for those that
drive consumer sales. While expansion is continuing with
new POS accessing the platform for the first time, we
are purposely limiting the complexity of tasks with high
repetition.
Moving forward into 2020 PMFTC’s focus will be to
expand the APPwards footprint in sari-sari stores,
continually evolve user experience/engagement, platform
efficiency and impact of tasks to generate business value
growth.
Operations
2019 was a game
changer for PMFTC
Operations. Coming
from the breakthrough
performance last 2018, the challenge for 2019 was to
deliver further step-change in overall performance to
accelerate the organization closer to its 100+1 vision.
To do this, the team embarked on the journey of Phase 0
deployment, wherein a bold goal of significantly reducing
production losses has been strategically charted. Amid
some challenges faced at the start of the journey, the
team forged on with growing focus to significantly reduce
production losses in the model line – the pilot machine
from optimization initiatives are iterated and evaluated.
To date, substantial milestones have been made by the
model line team. The vast learnings from their journey has
been and will be the source of improvement programs
and ways of working that will be scaled up to the whole
Operations organization.
2019 ANNUAL REPORT 21

TOBACCO
Hand in hand, PMFTC Operations remains faithful
and proactive to its commitment to environmental
sustainability. Several projects on reduction of single-
use plastic, waste disposal and CO2 emission have
been successfully implemented. And while, year-on-year,
sustainability metrics continue to improve, the team
remains dedicated in working relentlessly to explore more
effective sustainability programs in all fronts.
Illicit Trade
The National Committee on Intellectual Property Rights
(NCIPR) reported that for January to July 2019, various
law enforcement agencies seized Php13.73 billion worth
of counterfeit products, close to 60% of the total value
of fake goods seized in the entire 2018 which stood at
Php23.6 billion. Same as 2018, the bulk of the validated
inventory are counterfeit cigarettes. The legislated
annual increase of excise taxes on tobacco products
widened price gaps and make illicit cigarettes even more
attractive. These price gap between illicit cigarettes and
legitimate cigarettes range from 60% - 80%. As a result,
illicit cigarettes are cheaper than PMFTC’s low priced
brands and the former becomes an attractive alternative
for smokers, particularly the youth and those with low
income.
National illicit trade incidence was relatively stable
when measured via an empty pack survey in the second
quarter of 2019 at 5.7% compared to 5.3% in 2018.
The landscape of illicit cigarette has quickly evolved
from non-tax paid genuine products to non-tax paid
counterfeits and cheap contraband.
22 LT G R O U P, I N C .
2019 was another
breakthrough year in the
fight against illicit trade.
Twelve (12) illegal factories
were shut down by
various law enforcement
agencies such as the
BIR, BOC, NBI and the
PNP. Illegal cigarette
factories were discovered
and raided in San Simon,
Pampanga; Tacloban,
Leyte; San Fernando, La
Union; Marilao, Bulacan; Sta.Maria, Bulacan; Valenzuela
City; Malabon City; Villasis, Pangasinan and even the
local government of Cauayan, Isabela conducted its
own enforcement operation and shuttered a new illicit
cigarette factory. A total of 47 machines used for (1)
printing fake labels and tax stamps, (2) making and
packing cigarettes; and (3) manufacturing cigarette filters
were seized. Perceived presence of illicit is increasing
as evidenced by the rising number of raided factories
(~71% increase: 2019 vs. 2018), number of seized
cigarettes (~70% increase: 2019 vs. 2018), increased
number of enforcement actions (~40% increase: 2019
vs. 2018).
The Philippine government has observed that recently
the illegal tobacco trade has shifted from smuggling
cigarettes to producing counterfeit brands here using
undocumented cigarette-making machines acquired
from China. Chinese government has assured
cooperation with the Philippines in its anti-illicit cigarette
trade campaign, particularly in stopping the entry of
illegal equipment from the mainland according to the
Department of Finance. The Secretary of Finance has
also asked the Philippine Bureau of Customs to alert
their counterparts in China and all ASEAN countries of
the increasing presence of smuggled cigarettes from
those countries.
People and Culture
Across 2019, PMFTC stayed strong and resolute
on its determination to progress along the internal
transformation journey. The thrust of the organization
was to maximize its potential via further developing our
internal talent, injecting new expertise and capabilities,
and continuously strengthening the engagement of its
proud and committed employees.
To further build employees’ capabilities, PMFTC
continuously fosters a learning culture. A new digitally
enabled learning platform, FUSE, was launched in
2019 to provide employees both internal and external
learning content, anytime and anywhere. LearnX sessions
facilitated by external subject matter experts enriched
employees’ perspective on key trends and emerging
competencies such as storytelling, consumer centricity,
intentional learning, and digital.
The year culminated on a high note. After a stringent
6-month vetting process, PMFTC was certified as a
TOP Employer in the Philippines by the TOP Employer
Institute which is the global authority on recognizing
excellence in human resource practices. The certification
process consisted of a detailed critical assessment
of our practices & programs in the following areas:
Talent Strategy, Workforce Planning, Talent Acquisition,
Onboarding, Learning and Development, Performance
Management, Career and Succession Management,
Compensation and Benefits, and Culture. To date, there
are only 11 companies in the Philippines that have been
awarded this recognition.
As part of the Company’s external transformation efforts,
PMFTC also started on its Digital Employer Branding
initiative. Through various social media channels, PMFTC
gives the public a realistic glimpse of life inside—its rich
culture, authentic stories of our diverse employees and
their experiences, and the exciting career opportunities
that await those who are interested to disrupt the
tobacco industry and be part of the change the Company
is leading.
Project Management Organization
PMFTC completed the formation of the Project
Management Office (PMO) organization with a line-up
that combined internal members from different functions
and newly acquired talent to supplement Project
Management and Agile Ways of Working expertise.
The team in less than a year was able to mobilize
functional PMO in order for the unit to be responsible
BANNER
YEAR
in ensuring that the Company develops the centralized
and coordinated management of all critical & strategic
projects. Initial win was achieved as these projects were
made visible across functions with a common lens to
update, speed up decision making for project teams via
governance reviews.
Follow through was done on the previous year’s
success milestones on the New Ways of Working via
Fast Forward (FFWD) by integrating the ownership of
this within PMO. A number of FFWD projects pitched
in 2018 saw progress and scale-up efforts such as
E-Ordering and E-payments that got folded under Digital
Trade Engagement & Cigarette Butt collection brand
promotion, to name a few. Key individuals that also
were pivotal practicing the New Ways of Working in the
previous year progressed in further honing their skills set
and contributing back to the Company by applying as
internal FFWD catalysts (3) and functional builders (21)
in order to further increase the growing critical mass of
employees who are already actualizing a more consumer-
centric mindset.
Inclusion and Diversity
PMFTC continued to strengthen its commitment to
achieve a nurturing, fair and inclusive environment where
our employees thrive and celebrate diversity. In 2019,
for the second year in a row, the Company retained its
Equal Salary Certification which proves that we stand
true behind our commitment to equal pay among men
and women. A significant addition to its portfolio of well-
being related initiatives is the introduction of the Agile
and Balanced Life Program - ABLE. Under this program,
PMFTC launched its Flexible Work Around Core
Hours and Remote Work setup, allowing employees
greater flexibility around managing and balancing their
professional and personal commitments. Likewise, a
24/7 Employee Assistance Program Helpline was also
established to further support and sustain the emotional
and mental well-being of our employees.
2019 ANNUAL REPORT 23

BANKING
P hilippine National Bank (PNB) sustained healthy financial results in
2019 and scored milestones in various areas in the business. PNB
registered a net income of Php9.9 billion, slightly higher than the earnings
of Php9.8 billion in 2018. The growth in net profit resulted from sustained
efforts in strengthening the Bank’s core business. Excluding the impact
of non-recurring gains from the sale of foreclosed assets, the Bank’s core
net income grew by 55% year-on-year.
Net interest income reached Php32.5 billion, 20% higher compared to
the previous year, driven by improved earnings from loans to corporate,
commercial and small and medium enterprises, and other interest-earning
assets. Loan receivables registered double digit growth to Php657.9
billion, higher by 12% from 2018. On the other hand, deposit liabilities
reached Php826.0 billion, up by 13% versus 2018 year-end level.
Net service fees and commission income grew by 20%, propelled by
enhanced cross selling efforts resulting in improvements in underwriting
fees from capital market transactions as well as loan, deposit and credit
card-related fees. Net trading and foreign exchange gains expanded by
98%, resulting mainly from favorable opportunities in the market.
24 LT G R O U P, I N C .
Meanwhile, net gains from sale of acquired assets declined to Php690.7
million compared to last year’s Php5.9 billion. Despite the reduction,
total operating income registered a 6% improvement on account of solid
growth in core revenues. Excluding net gains from sales of foreclosed
assets, total operating income increased by 22% year-on-year.
PNB’s total consolidated resources stood at Php1.2 trillion, up Php159.5
billion or 16% from year-ago level. The year’s financial results reflect the
strength of PNB’s franchise in its wholesale and retail businesses.
The Bank’s asset quality remained strong with non-performing loan
(NPL) ratios of 0.68% net of valuation reserves and 1.99% at gross.
NPL coverage on the other hand stood at 118.91%. PNB’s consolidated
risk-based capital adequacy ratio (CAR) stood at 14.80%, exceeding the
minimum regulatory requirement of 10% and Common Equity Tier (CET)
1 ratio at 14.10% by end-2019.
In 2019, PNB funded several projects in the power, water supply, and
infrastructure industries thereby giving underserved areas access to
facilities and/ or improving agricultural activity from the rural areas to the
metropolis.
PNB continues to be very active in offering investment opportunities to
customers. During the year, the Bank issued Php8.22 billion Long-Term
Negotiable Certificates of Time Deposit (LTNCDs), at a coupon rate
of 5.750% per annum with a tenor of five years and six months. This
is the largest LTNCD issuance of the Bank to date and was 2.7 times
oversubscribed. PNB likewise listed its maiden offering for fixed rate
Philippine Peso bonds, which reached Php13.9 billion, equivalent to
an oversubscription of almost three times the announced issue size of
Php5 billion. Moreover, PNB issued USD750 million worth of Senior
Notes, which is the largest in the Philippine banking history. At orderbook
value of over USD3.25 billion, this is the biggest in terms of demand
size in Philippine banking history. To commemorate its 103rd Anniversary,
PNB launched a Php12 billion Stock Rights Offering, earning a positive
feedback from investors. With the additional capital, we foresee a solid
support for our growth strategy in the medium term.
On the other hand, PNB’s overseas branches specifically those located
in Hong Kong, Japan, and Singapore actively conducted financial
wellness programs to educate Filipinos on the importance of savings
and investment. This initiative, coupled with financial literacy programs
for students in the greater Metro Manila area, was a fertile ground for the
acquisition of new customers.
PNB recognizes the significance of digital transformation in creating a
safe, secure, and seamless banking experience for our customers. To
support the Philippine government’s National Retail Payment System
(NRPS), the Bank enhanced its mobile banking services with PESONet
and InstaPay. Using the PNB Mobile App, customers can perform real-
time electronic fund transfers to participating banks in the Philippines. For
the millions of Filipinos overseas, PNB has embarked on a digital strategy
of launching a mobile remittance application. Finally, the Bank’s Trust
Banking Group implemented the country’s first end-to-end fully automated
UITF online facility where customers can enroll, invest, and redeem funds
through the internet or with the convenience of their mobile phones.
PNB is committed to embodying the values of diversity and inclusion
as part of its professional culture. In August 2019, PNB became the
BANNER
YEAR
first local bank to join the Philippine Business Coalition for Women
Empowerment (PBCWE), an organization comprised of large influential
companies that promote gender equality in the workplace. The Bank aims LOANS AND RECEIVABLES
in Php Billions
to undergo the Economic Dividends for Equality (EDGE) Certification,
658
a leading global assessment methodology and business standard
586
for gender equality that evaluates the workplace’s performance of an
502
organization against global and industry benchmarks.
PNB proactively engages employees in living out the Bank’s sustainability
mission. In September, the Bank launched Project P.L.A.N.E.T. which
stands for Protect, Love, and Nurture the Environment Together. This
campaign is our journey towards making the Bank a planet-friendly
‘17 ‘18 ‘19
workplace. In November, PNB held its first Sustainable Lifestyle Fair
featuring a bazaar showcasing eco-friendly, sustainably sourced products
and organic food items. The Bank hosted the 36th Asian Bankers
Association Conference and General Meeting on the same month. With
the theme, Reshaping the Asian Financial Landscape, the gathering is
the largest conference of its kind in Asia, bringing together more than
150 different decision-makers of peer banks across Asia. PNB also
became the official partner of the 30th Southeast Asian Games held in the
country. This momentous event granted significant exposure, not only with
Filipinos, but also with the international community. The Bank’s Prepaid
Card product was issued to 9,000 volunteers where their allowances
were credited.
On the awards front, several accolades were given to PNB. The Bank
received an award for “Best FIG Bond-Philippines”, recognizing its
USD750 million fixed rate notes issued in June 27, 2019. The deal
marked the Bank’s successful return to the offshore bond market with
the largest offering size from the Philippine banking sector. PNB was
also awarded by the Social Security System (SSS) as its “Best Paying
Commercial Bank” partner during the 2019 Balikat Ng Bayan Awards
proving that the Bank is a reliable partner in providing diverse banking
services to SSS and its members. Lastly, for the second straight year,
PNB was recognized by the Institute of Corporate Directors (ICD)
for being one of the awardees of its ASEAN Corporate Governance
Scorecard (ACGS) Arrow for 2018.
As a new decade unfolds, 2020 ushers in a landscape filled with
potentials for growth. Moving forward, the Bank aims to continue to
strengthen its core business and digital capabilities to make end-to-end
banking seamless for customers. PNB is part of your community. No
matter who you are or where you came from, PNB will gladly open its
doors as it is the Partner that you can always lean on.
2019 ANNUAL REPORT 25
 BANNER
DISTILLED SPIRITS YEAR

T he local spirits industry grew by 2% in 2019

recovering from a slowdown last year due to
weakened consumer purchasing power. The growth in
spirits was due to the strong showing of the Visayas
and Mindanao area which grew by 6% compared to the
flat volumes in Luzon. Rum, the leading spirits brand in
Southern Philippines, posted a 6% growth compared to
the 3% increase of the gin segment and the 7% decline
of the brandy category.

Riding on the higher demand in Visayas and Mindanao, Tanduay continued to expand its market reach abroad as
the Company’s market share in terms of sales volume it added more distribution points in the USA and opened
improved further from 27% to 29% year-on-year. up marketing channels in Guam, Singapore and the
Intensive dealer retention programs and aggressive United Arab Emirates.
marketing campaigns continue to bear good results
leading to a stronger grip of the Southern Philippine Tanduay’s business landscape is fraught with difficulties
spirits market at 68%. Liquor sales volume stayed at and pressure from a highly competitive environment
the twenty million cases mark in 2019 improving by 2%. and tightening regulatory framework. The Tanduay
Sales of bioethanol and other alcohol products continued organization, with firmer resolve, will continuously nurture
to grow in double digits. a strategic team-based agile culture to attain its vision of
being the best in its business.
Revenues improved by 6% from Php18.1 billion
to Php19.3 billion as the volume increase was
complemented by higher average selling prices of both
liquor and bioethanol. Cost of sales however grew at a
SALES VOLUME
faster pace of 8% to Php16.1 billion due to higher excise in Million Cases
tax and packaging materials costs that offset the slight 20.5
20 .5
20.1
19.5
lowering of alcohol costs. Gross profit thus declined by
17.1
17 16.5
16. 16.9
1% to Php3.2 billion. 14.6

Net income after tax amounted to Php676 million which

is 26% lower compared to 2018, also on account of
higher operating expenses.

‘13 ‘14 ‘15 ‘16 ‘17 ‘18 ‘19

26 LT G R O U P, I N C . 2019 ANNUAL REPORT 27


CORPORATE GOVERNANCE REPORT
Good corporate governance dictates that a corporation should adhere to the
principles of prompt disclosure and transparency to allow “the regulators,
shareholders and the general public the opportunity to access accurate
information about its financial, operational, and other aspects of the company.”
By doing so, a company establishes its credibility and standing that generates the
trust of the people and its stakeholders. And, by earning trust, the rest will follow.
For LT Group, Inc., otherwise known as LTG, trust of all its partners, stakeholders,
stockholders, customers, suppliers, the government and the community, is vital in
ensuring its mark in the industry. For without trust, there would be no customers
who will support its products and services.
Thus, for the past years, the Company made sure to work side by side with men
and women of knowledge, competence and dedication in bringing the Company
to greater heights. These people served as members of its Board of Directors
and Management.
BOARD COMPOSITION
The Company believes that healthy and unbiased differences in opinions and
points of views are necessary for the proper management of any corporation since
diversity brings with it more ideas to help a corporation look beyond what is normal
and what is expected of it.
Thus, throughout the years, the Company maintained both men and women of
diverse beliefs and opinions, but with the same vision of keeping the interest of the
Company a top priority.
DR. LUCIO C. TAN, 85, Chairman and CEO
Dr. Tan is the Chairman of Absolut Distillers, Inc.,
Alliedbankers Insurance Corporation, Allianz PNB Life
Insurance, Air Philippines Corporation, Asia Brewery, Inc.,
Asian Alcohol Corporation, Basic Holdings Corporation,
Buona Sorte Holdings, Inc., Eton Properties Philippines,
Inc., Fortune Tobacco Corporation, Foremost Farms, Inc.,
Grandspan Development Corporation, Himmel Industries, Inc., Lucky Travel
Corporation, Mabuhay Maritime Express Transport, Inc., MacroAsia Corporation,
Philippine Airlines, Inc., PMFTC Inc., Progressive Farms, Inc., PAL Holdings,
Inc., Tanduay Distillers, Inc., Tanduay Brands International, Inc., Tangent Holdings
Corporation, The Charter House, Inc., Trustmark Holdings Corporation, University
of the East, Zuma Holdings and Management Corporation. He is also a Director of
Philippine National Bank. He holds a Bachelor of Science degree in Chemical
Engineering from Far Eastern University. He was awarded the degree of Doctor of
Philosophy, major in Commerce, by the University of Santo Tomas in 2003 and is
an awardee of several other honorary Doctorate degrees.
Board Attendance: 83%: 10 of 12 Board Meetings
Date of First Appointment: July 2, 1999
No. of Years on the Board: 20 Years
Other Information: No conflict of interest transactions in the past one (1) year.
CARMEN K. TAN, 78, Director
Ms. Tan is the Vice Chairman of Philippine Airlines, Inc. and
Director of Air Philippines Corporation, Asia Brewery, Inc.,
Buona Sorte Holdings, Inc., Foremost Farms, Inc., Dynamic
Holdings, Ltd, Eton City, Inc., Fortune Tobacco Corporation,
Himmel Industries, Inc., Lucky Travel Corporation, MacroAsia
Corporation, PAL Holdings, Inc., Philippine National
Bank, PMFTC Inc., Progressive Farms, Inc., Tanduay Distillers, Inc., Manufacturing
Services and Trade Corporation, Sipalay Trading Corporation, Saturn Holdings,
Inc., Tangent Holdings Corporation, Trustmark Holdings Corporation and Zuma
Holdings and Management Corporation.
Board Attendance: 83%: 10 of 12 Board Meetings
Date of First Appointment: May 5, 2010
No. of Years on the Board: 9 Years
Other Information: No conflict of interest transactions in the past one (1) year.
28 LT G R O U P, I N C .
In 2019, to comprise of its Board of Directors, the Company elected five (5)
women and six (6) men who are known to be knowledgeable and successful
in their respective fields. Unfortunately, Mr. Lucio K. Tan, Jr. passed away last
November 11, 2019. To continue his legacy, his son, Mr. Lucio C. Tan III, took
over and was appointed as a member of the Board of Directors on December
17, 2019. Nevertheless, it is undisputed that collectively, their service has
undoubtedly contributed to the continued success of the Company.
Moreover, the Board is composed of Non-Executive Directors (NED) (73%)
and Executive Directors (ED) (27%), with four (4) men and women of probity
and intelligence to serve as Independent Directors (ID). This is consistent with
the recommendations of the Securities and Exchange Commission (SEC) and
to ensure a balanced outlook and assessment in making the various business
decisions on behalf of the Company.
As further required by the SEC, the Independent Directors do not own more
than 2% of the Company’s outstanding capital stock; have no ties to the
Management; and are free from any business or other relationships which
could, or could possibly be perceived to materially interfere with their exercise
of independent judgment in carrying out their responsibility as Independent
Directors of the Company.
The Company’s Board of Directors are composed of the following men and
women:
HARRY C. TAN, 73, Director
Mr. Tan is a Director of Eton Properties Philippines, Inc.,
Pan-Asia Securities Corp. and Lucky Travel Corporation;
Managing Director of The Charter House, Inc.; Director and
Chairman for Tobacco Board of Fortune Tobacco Corporation;
Director and President of Maranaw Hotel (Century Park Hotel)
and Landcom Realty Corporation; Director of Asia Brewery,
Inc., Alliedbankers Insurance Corporation, Absolut Distillers, Inc., Basic Holdings
Corporation, Foremost Farms, Inc., Himmel Industries Inc., PMFTC Inc., Progressive
Farms, Inc., Grandspan Development Corporation and Tanduay Distillers, Inc. He is
also the Advisor of the Board of Philippine National Bank. He holds a Bachelor of
Science degree in Chemical Engineering from the Mapua Institute of Technology.
Board Attendance: 92%: 11 of 12 Board Meetings
Date of First Appointment: May 28, 2008
No. of Years on the Board: 11 Years
Other Information: No conflict of interest transactions in the past one (1) year.
MICHAEL G. TAN, 53, President and COO
Mr. Tan is a Director, President and Chief Operating Officer of
Asia Brewery, Inc.; Director of Tanduay Distillers, Inc., Tangent
Holdings Corp., Philippine National Bank, Eton Properties
Philippines, Inc., PMFTC Inc., Victorias Milling Company,
Inc., Sabre Travel Network (Philippines), Inc., Alliedbankers
Insurance Corporation, Lucky Travel Corp., Maranaw Hotel
(Century Park Hotel), Pan-Asia Securities Corp., MacroAsia
Corporation and Philippine Airlines, Inc. He holds a Bachelor of Science degree
in Applied Science in Civil Engineering, major in Structural Engineering, from the
University of British Columbia, Canada.
Board Attendance: 100%: 12 of 12 Board Meetings
Date of First Appointment: February 21, 2003
No. of Years on the Board: 16 Years
Other Information: No conflict of interest transactions in the past one (1) year.
LUCIO K. TAN, JR.+, 53, Director
Mr. Tan was the Director, President and Chief Operating
Officer of Tanduay Distillers, Inc. and Tanduay Brands
International, Inc.; Director and President of Eton Properties
Philippines, Inc. and PAL Holdings, Inc.; Director and
Executive Vice President of Fortune Tobacco Corporation;
Director of Absolut Distillers, Inc., Alliedbankers Insurance
Corporation, Asian Alcohol Corporation, Asia Brewery, Inc.,
Philippine Airlines, Inc., Philippine National Bank, MacroAsia Corporation,
Victorias Milling Company, Inc., PMFTC Inc., Lucky Travel Corporation, Foremost
Farms, Inc., Grandspan Development Corporation, Himmel Industries, Inc.,
Progressive Farms, Inc., The Charter House, Inc., Tangent Holdings Corporation,
Trustmark Holdings Corporation, Shareholdings, Inc. and Zuma Holdings and
Management Corporation. He graduated from the University of California, Davis in
1991 with a Bachelor of Science degree in Civil Engineering and had a Master’s
Degree in Business Administration from the Kellogg School of Management
Northwestern University.
Board Attendance: 91%: 10 of 11 Board Meetings (Passed away on November 11,
2019)
Date of First Appointment: February 21, 2003
No. of Years on the Board: 16 Years
Other Information: No conflict of interest transactions in the past one (1) year.
LUCIO C. TAN III, 27, Director
Mr. Tan was elected as Director and Chief Operating
Officer of Tanduay Distillers, Inc. and Director of MacroAsia
Corporation, PAL Holdings, Inc., Philippine Airlines, Inc.,
and Air Philippines Corporation in 2019. He earned his
Bachelor’s Degree in Electrical Engineering from Stanford
University in 2015 and Master’s Degree in Computer Science
from Stanford University in 2017.
Board Attendance: 100%: 1 of 1 Board Meeting
Date of First Appointment: December 17, 2019
No. of Years on the Board: Less than a year
Other Information: No conflict of interest transactions in the past one (1) year.
VIVIENNE K. TAN, 51, Director
Ms. Tan was elected as member of the Board of Directors in
2019. She serves as Director of Philippine National Bank,
PAL Holdings, Inc., and Philippine Airlines, Inc.; Member of
the Board of Trustees of University of the East and University
of the East Ramon Magsaysay Memorial Medical Center;
Executive Vice President of Philippine Airlines, Inc.; Founding
Chairperson of Entrepreneurs School of Asia; and Founding Trustee of Philippine
Center for Entrepreneurship (Go Negosyo).
Board Attendance: 100%: 8 of 8 Board Meetings
Date of First Appointment: May 7, 2019
No. of Years on the Board: 1 Year
Other Information: No conflict of interest transactions in the past one (1) year.
JUANITA T. TAN LEE, 77, Director and Treasurer
Ms. Tan Lee is Director of Asia Brewery, Inc., Eton Properties
Philippines, Inc., and Tanduay Distillers, Inc.; Director and
Corporate Secretary of Fortune Tobacco Corporation,
Corporate Secretary of Absolut Distillers, Inc., Asian
Alcohol Corporation, The Charter House, Inc., Foremost
Farms, Inc., Grandspan Development Corporation, Himmel
Industries, Inc., Landcom Realty Corporation, Lucky Travel Corporation, PMFTC
Inc., Progressive Farms, Inc. and Total Bulk Corporation; Assistant Corporate
Secretary of Basic Holdings Corporation; and a member of the Board of Trustees
of the University of the East. She holds a Bachelor of Science degree in Business
Administration major in Accounting from the University of the East.
Board Attendance: 100%: 12 of 12 Board Meetings
Date of First Appointment: May 2, 2012
No. of Years on the Board: 7 Years
Other Information: No conflict of interest transactions in the past one (1) year.
JOHNIP G. CUA, 63, Independent Director
Mr. Cua has served as a member of the Board of Directors
since May 2018. He was formerly the President of Procter
& Gamble Philippines, Inc., currently the Chairman of the
Board of the P&Gers Fund, Inc. and Xavier School, Inc., and
the Chairman & President of Taibrews Corporation. He is an
Independent Director of BDO Private Bank, PhilPlans First,
Inc., Eton Properties Philippines, Inc., Asia Brewery, Inc., Tanduay Distillers, Inc.,
MacroAsia Corporation, MacroAsia Catering Services, Inc., MacroAsia Airport
Services Corporation, PAL Holdings, Inc. and Philippine Airlines, Inc. He is also a
member of the Board of Directors of Interbake Marketing Corporation, Teambake
Marketing Corporation, Bakerson Corporation, Lartizan Corporation, Alpha
Alleanza Manufacturing, Inc., and Allied Botanical Corporation, and a member
BANNER
YEAR
of the Board of Trustees of Xavier School Educational & Trust Fund. He was
formerly the Chairman of the Board of Trustees of the Advertising Foundation of
the Philippines.
Board Attendance: 92%: 11 of 12 Board Meetings
Date of First Appointment: May 8, 2018
No. of Years on the Board: 2 Years
Other Information: No conflict of interest transactions in the past one (1) year.
MARY G. NG, 66, Independent Director
Ms. Ng was elected as member of the Board of Directors
in 2019. She is the Chief Executive Officer of H&E
Group of Companies and an Honorary President of the
Packaging Institute of the Philippines, the Philippine
Plastic Industrial Association of the Philippines, and the
Association of Volunteer Fire Chiefs and Firefighters of
the Philippines. She is the first woman Chairman of the ASEAN Federation of
Plastic Industries (AFPI), Executive Vice President of Federation of Filipino-
Chinese Chamber of Commerce and Industries, a Tripartite Board member
of the Department of Labor and Employment, a Board member of Technical
Educational and Skills Development Authority (TESDA), Vice President of the
Philippine Piak O Eng Chamber of Commerce and Philippine Piak O Eng Uy’s
Association and Director of Philippine Dongshi Townmate Association, Inc.
Board Attendance: 75%: 6 of 8 Board Meetings
Date of First Appointment: May 7, 2019
No. of Years on the Board: 1 Year
Other Information: No conflict of interest transactions in the past one (1) year.
WILFRIDO E. SANCHEZ, 83, Independent Director
Mr. Sanchez is the Tax Counsel of Quiason Makalintal Barot
Torres Ibarra Sison & Damaso Law Offices; Vice Chairman
of The Center for Leadership & Change, Inc.; Independent
Director of Adventure International Tours, Inc., Amon Trading
Corporation, EEI Corporation, Grepalife Asset Management
Corporation, Grepalife Fixed Income Fund Corporation, House
of Investments, Inc., JVR Foundation, Inc., Kawasaki Motor Corporation, Magellan
Capital Holdings Corporation, Omico Corporation, PETNET, Inc., PETPLANS,
Inc., Transnational Diversified Corporation, Transnational Diversified Group,
Inc., Transnational Financial Services, Inc., and Universal Robina Corporation;
Independent Director of Eton Properties Philippines, Inc., Asia Brewery, Inc., and
Tanduay Distillers, Inc. He holds a Bachelor of Arts degree from the Ateneo de
Manila University and has a Post-Graduate degree in Bachelor of Laws from the
Ateneo De Manila University and Masters of Law from Yale Law School.
Board Attendance: 92%: 11 of 12 Board Meetings
Date of First Appointment: July 31, 2012
No. of Years on the Board: 7 Years
Other Information: No conflict of interest transactions in the past one (1) year.
FLORENCIA G. TARRIELA, 73, Independent Director
Ms. Tarriela is the Chairman and Independent Director
of Philippine National Bank, PNB Capital and Investment
Corporation, PNB-IBJL Leasing and Finance Corporation,
and PNB-IBJL Equipment Rentals Corporation; Independent
Director of PNB International Investments Corporation;
Director of Bankers Association of the Philippines; Director/
Vice President of Tarriela Management Company and
Director/Vice President/Assistant Treasurer of Gozon Development Corporation;
and Life Sustaining Member of Bankers Institute of the Philippines (BAIPHIL)
and Financial Executives of the Philippines (FINEX). She has also been a Board
Trustee of Tulay sa Pag-unlad, Inc. (TSPI) since 2003. A former Undersecretary
of Finance, and used to be an alternate Board Member of the following: Monetary
Board of BSP, Land Bank of the Philippines, and the Philippine Deposit Insurance
Corporation (PDIC). She was a Managing Partner and the first Filipina Vice
President of Citibank N.A., Philippines. Currently, she is a columnist for “Business
Options” of the Manila Bulletin and “FINEX Folio” of BusinessWorld.
Board Attendance: 92%: 11 of 12 Board Meetings
Date of First Appointment: August 9, 2012
No. of Years on the Board: 7 Years
Other Information: No conflict of interest transactions in the past one (1) year.
2019 ANNUAL REPORT 29
 BANNER
CORPORATE GOVERNANCE REPORT YEAR

BOARD RESPONSIBILITIES AUDIT AND RISK MANAGEMENT COMMITTEE (ARMC) As provided in its charter, the EXCOM holds meetings on an as-need basis. MANAGEMENT
The Company’s By-Laws require the Board of Directors to regularly hold meetings In compliance with the SEC’s recommendation for good corporate governance, Since no urgent matters arose requiring their approval, it did not conduct any For several years, the Company’s brand has continued to grow and gain
every second Tuesday of the month. During said meetings, all companies under the ARMC is composed of five (5) Directors, three (3) of whom, including the meeting in 2019. worldwide appreciation under the able and experienced leadership of its Chairman
the conglomerate are represented by their respective Chief Financial Officers Chairman, are Independent Directors. Its members are Mr. Johnip G. Cua as and CEO, Dr. Lucio C. Tan, and its President and COO, Mr. Michael G. Tan.
(CFOs) or Chief Operating Officers (COOs) who are tasked to report on the Chairman, Mr. Lucio K. Tan, Jr.+, Ms. Juanita T. Tan Lee, Ms. Florencia G. Tarriela NOMINATION AND COMPENSATION COMMITTEE (NCC)
operational results of their respective divisions and brief the Board on other and Mr. Wilfrido E. Sanchez. The NCC is composed of six (6) directors with Dr. Lucio C. Tan as Chairman and Both the Chairman/CEO’s and the President/COO’s close coordination with
developments in the market place, including their plans and initiatives for the year. Mr. Harry C. Tan, Mr. Lucio K. Tan, Jr.+, Mr. Michael G. Tan, Ms. Juanita T. Tan Lee each other and with its directors and officers has dealt with the highly critical
The ARMC Chairman has served the Company as a member of the Board of and Mr. Wilfrido E. Sanchez as members. and sensitive issues. Throughout the years, it is without a doubt that, with the
On the other hand, quarterly meetings are attended by all Presidents/ Chief Advisors since August 2014 and has been a director thereof since May 2018. continued support and hard work of the different subsidiaries, the Company will
Executive Officer (CEO) or COOs of the subsidiaries, together with their CFOs. He likewise serves as Director/Officer of other companies within and outside the In compliance with its charter, and for purposes of ensuring a formal and
only continue to prosper.
Company. transparent Board nomination process in the selection, compensation, monitoring
In 2019, the Board conducted 12 meetings which were religiously attended to by and, when necessary, replacement of key executives as well as overseeing the
its members, as shown in the table below: During the Annual Stockholders’ Meeting (ASM) held last May 7, 2019, 10 out of
As provided in its charter, the ARMC is tasked to assist the Board in its oversight succession planning of the Company, the Committee conducts a meeting at least 11 Directors attended, as shown in the table below:
No. of Meetings No. of functions. During its meetings, the ARMC is informed of the financial and non- once a year.
Date of
Board Name Held during the Meetings % financial status of the Company, the management of its risks, the system of internal
Election year (2019) Attended control, the audit process, and the Company’s process for monitoring compliance On March 8, 2019, the Committee convened and passed upon the qualifications Name Present Absent
Chairman Lucio C. Tan 05/07/2019 12 10 83 with laws and regulations including Related Party Transactions (RPTs). of candidates who are nominated to hold key positions in the Company:
Lucio C. Tan
Member Carmen K. Tan 05/07/2019 12 10 83 In 2019, the Committee conducted six (6) meetings, as provided in the table Carmen K. Tan
No. of No. of Length of
Member Harry C. Tan 05/07/2019 12 11 92 Date of
below: Office Name Meetings Meetings % Service in the Harry C. Tan
Appointment
Member Michael G. Tan 05/07/2019 12 12 100 Held Attended Committee
Length of Michael G. Tan
No. of No. of
Member Juanita T. Tan Lee 05/07/2019 12 12 100 Office Name Date of Meetings Meetings % Service in the Chairman (ED) Lucio C. Tan 05/07/2019 1 1 100 5 years
Appointment Held Attended Committee Lucio K. Tan, Jr.+
Independent Johnip G. Cua 05/07/2019 12 11 92 (years) Member (NED) Harry C. Tan 05/07/2019 1 1 100 5 years
Member (ED) Michael G. Tan 05/07/2019 1 1 100 5 years Vivienne K. Tan
Independent Wilfrido E. Sanchez 05/07/2019 12 11 92 Chairman (ID) Johnip G. Cua 05/07/2019 6 6 100 2
Independent Florencia G. Tarriela 05/07/2019 12 11 92 Member (NED) Lucio K. Tan, Jr.+ 05/07/2019 1 1 100 5 years Juanita T. Tan Lee
Member (NED) Lucio K. Tan, Jr.+ 05/07/2019 6 0 0 6
Member (ED) Juanita T. Tan Lee 05/07/2019 1 1 100 7 years Johnip G. Cua
Ms. Vivienne K. Tan and Ms. Mary G. Ng were both elected on May 7, 2019. Below table Member (ED) Juanita T. Tan Lee 05/07/2019 6 6 100 6
shows the participation of the newly elected directors of 2019. Member (ID) Wilfrido E. Sanchez 05/07/2019 1 1 100 5 years Mary G. Ng
Member (ID) Wilfrido E. Sanchez 05/07/2019 6 6 100 6 +
Deceased on November 11, 2019 Wilfrido E. Sanchez
No. of Meetings No. of
Date of Member (ID) Florencia G. Tarriela 05/07/2019 6 6 100 6
Board Name Held during the Meetings % Florencia G. Tarriela
Election CORPORATE GOVERNANCE COMMITTEE (CGC)
year (2019) Attended +
Deceased on November 11, 2019. In 2019, the Company consistently implemented various activities, projects and +
Deceased on November 11, 2019
Member Vivienne K. Tan 05/07/2019 8 8 100* actions necessary to achieve good corporate governance. It updated its Charters
Independent Mary G. Ng 05/07/2019 8 6 75* For the calendar year 2019, the Committee:
and Manuals to conform to the recommendations set by the SEC and executed its TRAINING OF DIRECTORS
* Percentage based on number of meetings attended from date of appointment. • Reviewed and approved the Audit Report and Audited Financial Statements as Related Party Transactions Policy to ensure that all transactions are conducted at The SEC Memorandum Circular No. 20, series of 2013 requires that the officers
of and for the period ended December 31, 2018 as examined and presented arm’s length. and directors of the Company attend the Corporate Governance seminars
Below table shows the directorship participation of Mr. Lucio K. Tan, Jr. before his untimely
death on November 11, 2019. He attended 10 of 11 meetings in his 2019 tenure. by Sycip Gorres Velayo & Co. (“SGV & Co.”) and endorsed them to the Board conducted by the different SEC-accredited institutions within the year to keep
The CGC is composed of five (5) directors, namely, Ms. Florencia G. Tarriela as
of Directors for approval. themselves up-to-date with the current trends and necessities of being globally
Mr. Lucio C. Tan III was appointed a Director on December 17, 2019. He attended the its Chairman and Mr. Lucio K. Tan, Jr.+, Mr. Michael G. Tan, Mr. Johnip G. Cua and
competitive.
1 meeting held in his 2019 tenure. • Approved the recommendation to select and appoint the auditing firm of SGV Mr. Wilfrido E. Sanchez, as its members, all eager to bring the Company to its best
& Co. as the Company’s External Auditor for the year 2019. potential. Thus, throughout the year, they met thrice to ensure that the Company is On July 29, 2019, the Company conducted a Group-wide Corporate Governance
No. of Meetings No. of compliant with the recommendations of the SEC. Seminar for all companies under the Lucio Tan Group at the Grand Ballroom of
Date of
Board Name Held during tenure Meetings % • Reviewed and approved the Unaudited Consolidated Quarterly Financial
Election Century Park Hotel Manila with SGV & Co. as its service provider. The seminar
(2019) Attended To start the year off, the CGC met to be informed of the Company’s standing
Statements and endorsed the same for notation of the Board and submission was attended by all the Directors, Officers and essential employees of the Group.
Member Lucio K. Tan, Jr.+ 05/07/2019 11 10 91+ with regard the ASEAN Scorecard. Through their guidance, the Company has
to the appropriate government regulatory agencies.
achieved a higher rating which proved the Company’s various efforts to become a Among the attendees are as follows:
Member Lucio C. Tan III 12/17/2019 1 1 100* world class conglomerate able to keep its brand in a good light and able to ensure
+ • Reviewed the scope of work and fees of the external auditors, assessed their Board of Directors
Deceased on November 11, 2019. the continuous benefits received by its consumers, employees, business partners,
* Percentage based on number of meetings attended from date of appointment. independence and effectiveness, and endorsed them to the Board of Directors.
stockholders and by the community. Dr. Lucio C. Tan
BOARD COMMITTEES • Noted and approved the grant to the President or Chief Financial Officer of the Further to their purpose of assisting the Board into leading the Company to Carmen K. Tan
The Company has created four (4) committees to assist the Board in managing the Company the authority to negotiate and sign contracts of audit and non-audit Harry C. Tan
greater heights, a Group-wide Corporate Governance Seminar was held last July
Company and its subsidiaries. These committees are: (i) the Audit and Risk Management engagements with the External Auditor and endorse the same for approval of 29, 2019 with the firm of SGV & Co. as the service provider. This seminar was Michael G. Tan
Committee, (ii) the Executive Committee, (iii) the Nomination and Compensation Committee, the Board. attended by the different directors, officers and employees of the whole Group. Lucio K. Tan, Jr.+
and (iv) the Corporate Governance Committee. Each was created to oversee the proper
operations of the Company, including its subsidiaries, and likewise to create the necessary Lastly, as the CGC is tasked to oversee the periodic performance evaluation of Vivienne K. Tan
• Reviewed and approved the Internal Audit Reports as well as the Audit Risk
check and balances to ensure the fair and transparent transactions of the Company. the Board, its committees and the executive management, among others, the Juanita T. Tan Lee
Ratings and Recommendations given as presented by the Internal Auditors.
Company will conduct a performance evaluation meeting to make sure that a Johnip G. Cua
Audit and Risk Nomination and Corporate
Name Executive Director is capable of fulfilling and has been adequately carrying out his duties and Mary G. Ng
Management Compensation Governance As part of its responsibilities to oversee RPTs, the Committee likewise reviewed
the RPT Policy of the Company, in compliance with the SEC Memorandum responsibilities as such. Wilfrido E. Sanchez
Lucio C. Tan C C
Circular No. 10, Series of 2019, otherwise known as the Rules on Material Florencia G. Tarriela
Carmen K. Tan In 2019, the Committee conducted three (3) meetings attended to by majority of
Harry C. Tan Related Party Transactions for Publicly-Listed Companies. its members, including the Chairman, as shown in the table below:
Board Advisor
Michael G. Tan EXECUTIVE COMMITTEE (EXCOM) No. of No. of Length of Peter Y. Ong
Date of
Lucio K. Tan, Jr.+ The EXCOM is responsible in ensuring that the Board manages the businesses Office Name Meetings Meetings % Service in the
Appointment
Held Attended Committee Officers
Lucio C. Tan III and affairs of the Company properly. Their authority, however, is limited to
functions not expressly reserved to the Board of Directors under the laws of Chairman (ID) Florencia G. Tarriela 05/07/2019 3 3 100 6 years Ma. Cecilia L. Pesayco – Corporate Secretary
Vivienne K. Tan the Philippines, the corporate By-Laws and the Company’s Revised Corporate Member (ED) Michael G. Tan 05/07/2019 3 2 67 6 years Marivic T. Moya – Assistant Corporate Secretary and Compliance Officer
Juanita T. Tan Lee Governance Manual. Jose Gabriel D. Olives – Chief Financial Officer and Chief Risk Officer
Member (NED) Lucio K. Tan, Jr.+ 05/07/2019 3 1 33 6 years
Johnip G. Cua C Nestor C. Mendones – Deputy Chief Financial Officer
As part of good governance, the EXCOM is composed of eight (8) directors Member (ID) Johnip G. Cua 05/07/2019 3 3 100 2 years Dioscoro Teodorico L. Lim – Chief Audit Executive
Mary G. Ng
namely, Dr. Lucio C. Tan as Chairman and Mr. Harry C. Tan, Mr. Lucio K. Tan, Jr.+, Member (ID) Wilfrido E. Sanchez 05/07/2019 3 3 100 6 years Erwin C. Go – Chief Legal Counsel
Wilfrido E. Sanchez Mr. Michael G. Tan, Ms. Vivienne K. Tan, Ms. Juanita T. Tan Lee, Mr. Johnip G. Cua +
Deceased on November 11, 2019
Florencia G. Tarriela C and Ms. Florencia G. Tarriela as members.
+
Deceased on November 11, 2019.

30 LT G R O U P, I N C . 2019 ANNUAL REPORT 31

 CORPORATE GOVERNANCE REPORT BANNER
YEAR

DISCLOSURE AND TRANSPARENCY In 2020, the Company’s Audited Financial Statement was submitted to the SEC DEALINGS IN SECURITIES As Company practice and in compliance with the recommendations for good
UNSTRUCTURED DISCLOSURES and the PSE on March 20, 2020, at least 41 days before the ASM. The Company adopts and strictly enforces a policy against insider trading on corporate governance, the Stockholders are sent Notices to the Annual and
In 2019, the Company made the following disclosures to the SEC and the stock transactions by reporting to the SEC and the PSE, within three (3) trading Special Stockholders’ Meeting with sufficient and relevant information, at least
Philippine Stock Exchange (PSE) which disclosures were subsequently uploaded The interim and quarterly financial statements and results of operations are days, any acquisition or disposal of the Company shares, or any change in the 30 days before the meetings, to encourage them to personally attend the same.
in its website for proper and efficient dissemination of information likewise submitted to the regulators within the prescribed period of 45 days shareholdings therein, of its directors and principal officers. They are reminded that should they be unavailable to personally attend the same,
to its Stockholders: from the end of the financial period. Throughout the year, analysts’ briefings they shall have the right to appoint a proxy, in which case, they are informed of the
are regularly conducted by the Company to allow the public access to the As provided in the table below, the following are the current shares held by its proper procedure on how to appoint one.
• Clarification of News Report: “Tanduay eyes Central Azucarera Don Pedro” periodic financial statements relative to the stock market. During these briefings, Directors:
dated March 18, 2019 it is necessary that members of the Management be present to answer any RIGHT TO VOTE
questions raised by the analysts. In accordance with the Corporation Code, the Company grants the Stockholders
• Press Release: “LTG’s Net Income for 2018 at Php16.19 Billion” dated
Name Direct shares Direct shares Indirect shares / % of
Through (name Capital the right to vote on corporate acts of fundamental importance, such as, but shall
March 18, 2019 All necessary disclosures are uploaded in the Company website as soon as As of end-2018 As of end-2019 of record owner) Stock not be limited to the election, removal and replacement of Directors and the
information becomes available.
• Declaration of Regular and Special Cash Dividends dated April 10, 2019 Lucio C. Tan 2,200 2,200 NIL -
changes or amendments made to the Company’s Articles of Incorporation and
By-Laws.
OWNERSHIP STRUCTURE
• Press Release: “LT Group looks to a better 2019, but will not be an easy task” The Company’s outstanding common shares held by record owners of more than Carmen K. Tan 2,200 2,200 NIL -
Nevertheless, matters submitted to a vote at the ASM, except the election of
dated May 07, 2019
5% are as follows: Harry C. Tan 3,300 3,300 NIL - Directors and such other matters where the law requires a different threshold for
• Press Release: “LTG’s Income for the First Quarter of 2019 Increased by 22% Michael G. Tan 1,100 146,100 NIL - approval, shall require the affirmative vote of at least a majority of the Stockholders
to Php4.42 Billion” dated May 10, 2019 Title of Percent of present in person or by proxy during the said meeting.
Name of Record Owner Citizenship No. of Shares Lucio K. Tan, Jr.+ 1,100 N.A. NIL -
Class Class
• Clarification of News Report: “LT Group plans $1.5-B LNG plant” dated Common Tangent Holdings Corporation Filipino 8,046,318,193 74.36% Lucio C. Tan III N.A. 1,100 NIL - RIGHT TO INSPECT OR EXAMINE CORPORATE RECORDS
June 17, 2019 All Stockholders shall have the right to inspect corporate books and records,
Common PCD Nominee Corporation Non-Filipino 1,320,749,751 12.20% Vivienne K. Tan N.A. 1,000 NIL - including minutes of Board meetings, stock registries, annual reports and financial
• Amendment of By-Laws: “Approval of the Amendment of Articles IX and X to Juanita T. Tan Lee 1,100 1,100 NIL - statements, provided that a written notice is sent to the Corporate Secretary by
restore the position of Vice Chairman” dated June 18, 2019
BOARD REMUNERATION a Stockholder who has not improperly used any information secured through any
Johnip G. Cua 1,000 1,000 NIL -
• Clarification of News Report: “Absolut in talks with MVP to build waste-to- COMPENSATION OF DIRECTORS AND EXECUTIVE OFFICERS previous examination of records of the Company before he is allowed to exercise
energy facility” dated June 19, 2019 The Company’s Directors receive an allowance of Php30,000.00 a month and a Mary G. Ng N.A. 1,000 NIL - such right.
per diem of Php25,000.00 for every Board meeting and Php15,000.00 for every
• Statement of Changes in Beneficial Ownership of Securities dated Committee meeting attended.
Wilfrido E. Sanchez 1,000 1,000 NIL - RIGHT TO INFORMATION
July 08, 2019 Florencia G. Tarriela 1,000 1,000 NIL - Stockholders and the investing public are allowed immediate access to Company
Other than those mentioned above, no other standard arrangements are received information through its website, www.ltg.com.ph. While minority Stockholders
• Change in Shareholdings of Directors and Principal Officers dated by the Directors of the Company as compensation, directly or indirectly, for
TOTAL 14,000 161,000 NIL -
are furnished, on a timely and regular basis, with relevant information as may be
July 08, 2019 Deceased on November 11, 2019
+
any services rendered as such, including any additional amounts payable for required by law.
• Change in Directors and/or Officers: Appointment of Mr. Jose Gabriel D. Olives Committee participation or special assignments, for the last completed fiscal year
TRADING BLACKOUTS RIGHT TO DIVIDENDS
as Chief Risk Officer dated July 09, 2019 and the ensuing year.
The Company strictly implements the Blackout Period by timely and constantly The Company declares dividends and the Stockholders shall have the right to
• Clarification of News Report: “Roxas agrees to sell sugar mill to Tanduay” dated SUMMARY COMPENSATION TABLE: ANNUAL COMPENSATION reminding its directors, officers, advisers, consultants and employees who
may have knowledge on material facts regarding matters which may affect the
receive dividends out of the Unrestricted Retained Earnings of the Company when
August 02, 2019 its earnings become in excess of 100% of its Paid-in Capital Stock, except:
Year Salary Bonus Others* Company, through electronic mail and during board meetings, that they are
• Press Release: “LTG’s Attributable Net Income of Php9.24 Billion for the First prohibited from trading on the Company’s shares within the Blackout Period. (a) When justified by definite corporate expansion projects or programs approved
Half of 2019 is 3% Higher than 1H18” dated August 13, 2019 Four (4) most highly 2020 8,679,000 737,000 3,074,500 by the Board;
compensated executive (Estimate) Under the Company policy, Blackout Periods are observed during the following:
• Statement of Changes in Beneficial Ownership of Securities dated officers (see below) (1) for quarterly reports, two weeks before disclosure; and (2) for the year-end (b) When the Company is prohibited under any loan agreement with any financial
August 30, 2019   2019 7,890,000 670,000 2,795,000 financials, one month or 30 days before disclosure. institution or creditor, whether local or foreign, from declaring dividends without its
consent, and such consent has not been secured; or
• Change in Shareholdings of Directors and Principal Officers dated   2018 7,440,000 620,000 2,725,000 Due to the constant reminder of the Corporate Secretary and the discipline and
August 30, 2019 All other officers and 2020 2,530,000 210,834 7,166,500 coordination of the persons within the Group, there were no reported instances of (c) When it can be clearly shown that such retention is necessary under special
directors as a group (Estimate) any insider trading within the Company in 2019. circumstances in obtaining in the Company, such as when there is a need for
• Change in Directors and/or Officers: Death of Mr. Lucio K. Tan, Jr. unnamed special reserve for probable contingencies.
dated November 11, 2019 RIGHTS OF STOCKHOLDERS
  2019 2,300,000 191,667 6,515,000 It is a fact that a smart investor is one who makes the necessary research, study APPRAISAL RIGHT
• Press Release: “LTG’s 9M19 Attributable Net Income at Php14.72 Billion, 17%   2018 2,400,000 200,000 6,410,000 and analysis before jumping into any investment decision since investments tend Stockholders of the Company enjoy the right to dissent and demand payment
Higher than 9M18” dated November 13, 2019 to make one feel intimidated and overwhelmed, especially when the establishment
*Others – includes per diem of directors of the fair value of his shares in cases of: (1) an amendment to the Articles of
• Change in Directors and/or Officers: Appointment of Mr. Lucio C. Tan III as The following constitute LTG’s four (4) most highly compensated executive officers
in which he will invest in does not have a good reputation. Incorporation will change or restrict the rights of such stockholder or otherwise
Director dated December 17, 2019 extends or shortens the term of corporate existence; (2) sale, lease, exchange,
(on a consolidated basis): This is where the benefits of having a good corporate governance comes in. When transfer, mortgage, pledge, or other disposition of all or substantially all of
DISCLOSURE AND TIMING a corporation is fair and transparent to the investing public and respects the rights the corporate property and assets; (3) merger or consolidation; and (4) the
Dr. Lucio C. Tan is the Chairman of the Board of Directors and CEO. of its Stockholders, the investing public becomes more trusting and such company
As a publicly listed corporation, it is the responsibility of the Company to Company’s decision to invest its funds in another corporation or business or any
Mr. Michael G. Tan is the President and COO. becomes more attractive in the eyes of investors.
religiously comply with the rules and regulations of the SEC and PSE to make purpose other than its primary purpose.
Atty. Ma. Cecilia L. Pesayco is the Corporate Secretary.
sure that the investing public is immediately informed of any material information With that in mind, the Company encourages Stockholders to participate in its
Ms. Juanita T. Tan Lee is the Treasurer.
relating to or affecting the Company. business endeavors within and outside the ASM. They are allowed to raise any STAKEHOLDERS RELATIONS
EXTERNAL AUDITOR concerns or give suggestions as to how the Company may improve. For many years, the Company has operated in a way as to ensure its stockholders,
Therefore, as part of good corporate governance, the Company files with the SEC, employees, customers and trade partners, including itself, would feel secure in
The Company maintains the services of the auditing firm of SGV & Co. with Martin
immediately after approval or confirmation by the Board, any material information, Some of the rights a Stockholder may exercise are as follows: their own rights. Thus, it is necessary that all decisions and transactions made by
C. Guantes as the partner-in-charge, as its external auditor since the year 2016.
actions or decisions which may or might affect the Company. These submissions either parties be done with fairness and integrity.
Since their engagement, the External Auditors have consistently provided the
are subsequently disclosed to the PSE and thereafter uploaded in the Company RIGHT TO PARTICIPATE
Company with latest updates on the latest circulars, rulings or revenue regulations
website at www.ltg.com.ph for immediate dissemination of information to its The Company’s Revised Manual on Corporate Governance provides that To show its sincerity, the Company included in its vision and mission all its
from the Bureau of Internal Revenue, as well as updates on Philippine Financial
Stockholders and the investing public. Stockholders holding at least one-third (1/3) of the subscribed and paid-up partners, ensuring that in all its business decisions, their partners will share its
Reporting Standards for the entire group of companies.
capital stock of Company shall have (1) the right to call for a Special Stockholders’ success and likewise benefit from its growth.
For the past years, it has been Company practice and policy to immediately, and Meeting by written notice to the Corporate Secretary at least 90 days before the
AUDIT AND OTHER FEES
when necessary, disclose its financial condition, investments and acquisitions, suggested date of the meeting; and (2) the right to propose items in the agenda STOCKHOLDERS’ MEETING AND VOTING PROCEDURES
The Company incurred audit fees of Php1,200,000 for the year 2019,
if any. The disclosures would include the uploading in the Company’s website of the Stockholders’ Meeting, provided the items are for legitimate business As part of Company practice, and in compliance with the recommendations of the
Php300,000 less than that of last year’s (2018) audit fees at Php1,500,000.
within five (5) days from the date of the ASM the Minutes thereof and the Audited purposes and written notice to request inclusion of the same is sent to the SEC, the Stockholders receive a copy of the Notice of the Stockholders’ Meeting
For its quarterly review of financial statements for the years 2019 and 2018, the
Financial Statements (SEC Form 17-A) for the year which should be submitted to Corporate Secretary at least 90 days before the date of the meeting. at least 30 days prior to the date set for the said meeting.
Company incurred nil and Php1,100,000, respectively.
the SEC and PSE at least two (2) months before the ASM is held.

32 LT G R O U P, I N C . 2019 ANNUAL REPORT 33

 BANNER
CORPORATE GOVERNANCE REPORT YEAR

DIVIDENDS
In 2019, the Company declared and distributed Regular Cash Dividend of
Php0.15 per share and Special Cash Dividend of Php0.15 per share to all its
Stockholders as of April 29, 2019, in compliance with a 20% dividend payout
policy.
Further to its pursuit of good corporate governance, the Company strictly
implements its dividend policy to distribute the Dividends within 30 days from
the time it is approved and declared, and the Stockholders were paid on May 9,
2019, twenty-nine (29) days after it was approved by the Board and disclosed
to the PSE.
EMPLOYEE RELATIONS
“To win in the marketplace, you must
first win in the workplace.”
– Doug Conant, CEO of Campbell’s Soup.
It is a fact that when employees have a good relationship with the company
where they are employed, they tend to produce better outputs. Hence, the
Company makes sure to include the safety, welfare and career development of
its employees in its operations, knowing that it is also for its benefit when its
employees feel secured and appreciated. Open lines of communications, wide
health insurance for its employees, as well as their children and beneficiaries,
and scholarship opportunities are likewise provided for by the Company.
Aside from all these, the Code of Business Conduct and Ethics, with emphasis
on the “Whistle-Blower Policy”, is strictly observed and implemented all
throughout the Company, including its subsidiaries so as to protect itself, its
partners and employees from any possible yet unforeseen harm or damage.
INVESTOR RELATIONS
The Company maintains open communications with the investing community
to promote greater understanding of the Company. Reports to the SEC and
PSE are disclosed on time, and are available for viewing and downloading in the
Company’s website, ltg.com.ph. There is also a dedicated Investor Relations
Officer whose contact details are available in the website.
LTG conducts meetings regularly with investors and analysts to keep them
updated on developments with the Company and its subsidiaries. LTG arranges
conference calls and plant visits, and participates in non-deal roadshows and
conferences in various locations arranged by several stock brokerages. The
Company also communicates through emails and telephone calls.
In 2019, LTG attended seven (7) conferences with four (4) different brokers in
Manila (2), Singapore (4) and Hong Kong (1). The Company accommodates
requests for visits to its subsidiaries’ facilities from groups of sell-side and buy-
side analysts. However, in 2019, there were no requests.
During the 2019 calendar year, LTG conducted four (4) Analysts’ Briefings jointly
with subsidiary Philippine National Bank (PNB) that were attended by analysts
from different brokerages and analysts of local and foreign funds.
• Full Year 2018 Results on March 18, 2019
• First Quarter 2019 Results on May 10, 2019
• First Half 2019 Results on August 13, 2019
• Nine Months 2019 Results on November 13, 2019
The briefing for Full Year 2019 Results was cancelled as the Government
declared an Enhanced Community Quarantine in Metro Manila starting March
17, 2020 due to the coronavirus disease 2019 pandemic. LTG disclosed Full
Year 2019 Results on March 19, 2020 and distributed what should have been
the presentation materials via email and WhatsApp.
LTG disclosed the schedule of these briefings to the PSE at least a week before
the briefing date.
Regular press releases are disclosed to the PSE and SEC and distributed to the
media, on quarterly earnings results as well as events that may have a significant
impact on the operations of the Company and its subsidiaries.
After the Annual Stockholders’ Meeting on May 7, 2019, a press briefing was
conducted where members of the media had access to the President and Chief
Operating Officer, as well as the Chief Financial Officer.

In 2019, the Management sent the necessary Notices to the Stockholders

beginning April 2, 2019 or more than 30 days prior to the meeting set on
May 7, 2019.
To allow the Stockholders the opportunity to be informed of the actions and
decisions made by the Company within the year, among others, the Notices
sent to the Stockholders include the Agenda for the meeting. Moreover,
as recommended by the SEC, a statement explaining that a Stockholder
is allowed a Proxy should he/she be unavailable to personally attend the
Meeting and the process for its application is included in said Notice.
To ensure that the Stockholders are properly informed of the status
and actions of the Company, are given the opportunity to evaluate the
performance of the Board and of Management, and are able to ask questions
pertaining to the Company, a copy of the Definitive Information Statement is
attached to the Notices sent to them.
Moreover, in proposing nominees to the Board, the Stockholders are
encouraged to send their list to the office of the Corporate Secretary for
proper consideration by the Nomination and Compensation Committee prior
to its meeting held not later than the end of April. Each outstanding common
share entitles the registered Stockholders to one (1) vote.

34 LT G R O U P, I N C . 2019 ANNUAL REPORT 35


CORPORATE SOCIAL RESPONSIBILITY
PMFTC President Denis Gorkun hands over the annual donation to TYKFI Chairman Dr. Lucio C. Tan and Trustee Carmen K. Tan
EDUCATION
St. Teresita’s Academy Scholars from Farming Families
TYKFI has 150 scholars from grades 7 to 12 in Sta.
Teresita’s Academy in Aritao, Nueva Vizcaya.
Basic Cosmetology
Training: Ganda Mo,
Hanapbuhay Ko (Your
Beauty, My Livelihood)
In February, housewives from
farming communities in the towns
of Kayapa and Sta. Fe, Nueva
Vizcaya and Sta. Cruz, Ilocos
Sur attended basic cosmetology
training in partnership with Ang
Hortaleza Foundation.
36 LT G R O U P, I N C .
Tan Yan Kee
Foundation, Inc.
The companies under LT Group, Inc. and other
companies that are majority-owned by the Tan family
conduct most of their Corporate Social Responsibility
(CSR) activities under the Tan Yan Kee Foundation, Inc.
(TYKFI).
Dr. Lucio C. Tan and his siblings established TYKFI in
1986. The Foundation is named in honor of the late
Tan patriarch and is governed by a 15-member Board.
The Foundation and its partners pursue projects that
focus on four advocacies: Education, Health Services,
Social Welfare and the Environment.
Brigada Eskwela 2019
TYKFI donated materials to repair three classrooms at the
Nagtenga Elementary School in Sta. Cruz, Ilocos Sur.
University of the East (UE) – TYKFI Scholarship Program
For school year 2019-2020, the UE-TYKFI scholarship program has 123
scholars, including 47 new scholars. TYKFI Chairman Dr. Lucio C. Tan
welcomed the students and their parents during the annual Scholars’
Recognition Day on August 20, 2019.
HEALTH SERVICES
Asia Brewery Monthly Medical Forum
TYKFI continues to hold the monthly Asia Brewery Medical Forum in
cooperation with the Association of Asia Brewery Medical Specialty Scholars.
These forums provide the public with better health information as well as
information on the latest treatment options. Some of
the topics discussed in 2019 include eye conditions,
gastrointestinal tract, common childhood diseases, kidneys
and women’s health. Doctors who are Asia Brewery Medical
Scholars also provided free consultations during the forums.
TYKFI-Asia Brewery, Inc. (ABI) Medical Specialty
Scholarship Program
Dr. Andrei Paolo S. Angbue-Te completed a year
of Oculoplastic training at the Tan Tock Seng
Hospital in Singapore.
Dr. Noruel Gerard A. Salvador completed his
fellowship training on Hepato-Pancreato-Bilary
Surgery and Liver Transplantation at Kaohsiung
Chang Gung Memorial Hospital in Kaohsiung
City, Taiwan.
Dr. Andrei Paolo S. Angbue-Te
Dr. Janet Wenceslao-Elcano finished her one-
year training in Electrophysiology at the Yonsei
University Health System in Seoul, South Korea.
Dr. Rosemarylin L. Or completed a two-year
clinical fellowship in Neuro-Oncology at the
University of Toronto-Princess Margaret Cancer
Center in Canada.
Dr. Giselle L.
Gotamco completed
a one-year fellowship
on Neuro-Otology
and Audiology
at the Taichung Tzu Chi
General Hospital.
Dr. Janet Wenceslao-Elcano
BANNER
YEAR
SOCIAL WELFARE
Training in Good Governance and Solid Waste Management
In April, TYKFI sponsored the training of seven local government officials and
six teachers on good governance and solid waste management. The training
was conducted along a boardwalk in Boracay where TYKFI has a Roots for
Boracay Project in partnership with Tanduay Distillers, Inc., the Department of
Environment and Natural Resources and the local government of Barangay
Manoc-Manoc. Aside from a clean-up drive where almost 50 sacks of
garbage was collected, the participants also planted api-api, a local mangrove
species.
ENVIRONMENT
The Lucio C. Tan
Legacy Forest Project
Started in 2014, over 600 hectares have
been planted in the University of the
Philippines’ (UP) Land Grant in Laguna and
Quezon while close to 300 hectares were
planted in Carranglan, Nueva Ecija. Aside
from providing indigenous people jobs by
planting trees, the project also provides
livelihood training programs by teaching
scientific ways of producing vegetables
(including organic) and ornamental plants.
In April 2019, more than 150 students from the UP – Los Baños visited
the project’s Nueva Ecija site and learned about the goals, experiences and
sustainability efforts of the project.
On its fifth year, the project has
covered 787 hectares of the
930 hectares earmarked for
reforestation and protection in
Barangay R.A. Padilla, Carranglan,
Nueva Ecija. In 2019, 198,040
seedlings were grown, ready for
planting during the rainy season
of the next year.
2019 ANNUAL REPORT 37

CORPORATE SOCIAL RESPONSIBILITY
ASIA BREWERY, INC.
Bantay Bata
Community
Outreach Program
On February 23, 2019,
Asia Brewery, Inc. (ABI)
and subsidiaries joined
the Community Outreach
Program (COP) initiated
by Bantay Bata 163
Laguna Chapter at
Southville IV National
High School in Sta. Rosa,
Laguna. The COP catered
150 families of three or
450 individuals. Part of
this COP was a medical mission, parenting
seminar, children’s advocacy games and
gift giving. ABI donated a total of 142
boxes of ABI products such as Absolute,
Nestea, Vitamilk and Creamy Delight.
Brigada and Balik
Eskwela Donation Drive
This is an annual activity
wherein ABI donates products
like Absolute, Creamy Delight,
Nestea, Cobra and Vitamilk to
students of selected schools.
During the May 2019 Brigada
Eskwela, ABI donated to 9
schools located in Cabuyao (5)
and Sta. Rosa (3), Laguna, and
in Alabang (1).
Also, on August 20, 2019 during Disaster Resilience Month,
an ABI’s Environment, Health and Safety (EHS) Team
representative conducted a discussion with the students on
preparedness for fire, earthquake, typhoon and floods. ABI
products were also given along with umbrellas, raincoats
and hygiene products.
Clean-up Activities
On February 16, 2019,
employees in ABI’s El
Salvador Plant participated
in a region wide clean-up
activity held in Barangay
Amoros, El Salvador,
Misamis Oriental. ABI also
participated in the coastal
clean-up in Cagayan de
Oro on September 21,
2019.
38 LT G R O U P, I N C .
Sports
Tournament
On September 13, 2019,
a sports festival was held
in the ABI Multi-Purpose
Covered Court and
was attended by ABI
Cabuyao, Head Office
and Pasig sales office
employees. The purpose
of this is to develop
appreciation for sportsmanship and foster camaraderie
and teamwork through healthy competition among the ABI
employees.
The Energy of
the Community
– Cabuyao
Environmental
Police
A half-day event for the
Environmental Police was
organized and sponsored
by ABI subsidiary,
Interbev Philippines, Inc.
(IPI) on September 30,
2019. Aside from games
and raffles, an ABI EHS Team representative imparted
knowledge about Waste Segregation and Management to
the Environmental Police. Cobra products and promotional
items such as shirts and tumblers were given while some
items like arm sleeves, gloves, masks, towels and boots
were donated. Vital signs check-up, medicine and massage
were also provided.
Vitamilk School
Caravan
Vitamilk launched its
advocacy, Kalusugan
Para sa Kinabukasan to
support the Department
of Education and
Department of Health’s
initiatives in promoting
a culture of health and
wellness in school
communities participated
by 100 schools in South Luzon and Central Luzon. The
school caravan provides educational activities and insightful
discussions to students, teachers
and parents.
Education is Adaptation
Program
In October 2019, Summit Natural
Drinking Water partnered with
World Wide Fund for Nature
(WWF) Philippines to increase
environmental awareness to school
communities on importance of
proper waste segregation. Training for teachers and program sessions were
conducted at Molino Elementary School, Panipuan Elementary School and
Baliti Elementary School.
Summit Partnership
with Philippine Olympic
Committee (POC)
Since 2016, Summit Natural
Drinking Water has been
supporting the Philippine Olympic
Committee (POC) and providing
Filipino athletes with proper
hydration. In 2019, Summit
provided Php500,000 worth of
product support.
To further extend support, Summit
launched the “Thirst For The Win”
campaign with national athlete
Hidilyn Diaz as the face of Summit’s official campaign, as a
way to rally support for the National Athletes for the 30th
Southeast Asian Games held in December 2019.
Absolute
Mommy
Welfare Month
This is an annual
activity where ABI’s
Absolute Distilled
Drinking Water
supports first-time
mothers and their
newborns as they
go through postnatal
care and wellness.
This year, ABI partnered with 32 hospitals
and institutions in Luzon and the Visayas
and distributed 3,500 mommy wellness kits.
BANNER
YEAR
Help Flows for Mindanao
Earthquake Victims
In September 2019, a strong earthquake
hit the parts of Mindanao. ABI, through
disaster relief partners such as the
Philippine Red Cross and television
networks distributed Absolute bottled
water to the affected areas. Meanwhile,
in November 2019, an
Agua Vida Mobile Water
Station was deployed to
Kidapawan where people
were provided access to
clean and potable water.
ABI’s Other CSR Programs
On June 13, 2019, ABI was invited
by the Children’s Joy Foundation Inc.
(CJFI) for a Dinner for a Cause held at
a Chinese restaurant in Calamba City,
Laguna. The said event was to raise
money to help the foundation’s goal to
send 3 million children to school.
Meanwhile, on July 27, ABI subsidiary, AB Nutribev Corp. was a sponsor of
CJFI’s Nutrition Month celebration with the theme Kumain ng Wasto at Maging
Aktibo, Push Natin ‘To! in Canlubang and Calamba, Laguna where Vitamilk and
other ABI products were given aside from the hygiene kits and snacks.
On September 20, 2019, as part of Grandparents’ Month Celebration, ABI
participated in the “Share Pure Love with the Most Absolute Grandparents”
program at Bahay ni Maria in Calamba and Mary Mother of Mercy Home for
the Abandoned Elderly and Children with Special Needs in San Pedro, Laguna.
ABI products and individual hygiene kits were distributed. The two institutions
were also given a month’s supply of Absolute Water, home supplies and
grocery items.
Recognition for CSR Activities
In 2019, ABI was recognized by
several institutions for its support and
commitment in Community Relations
Program. One such recognition was
on August 8, 2019 from the Armed
Forces of the Philippines (AFP) – Office
of Chief Dental Service recognized ABI’s generous support
rendered during the AFP Dental Service Fun Run, AFP Dental
Service Sports Fest, AFP Dental Service First Anniversary
Ball and 65th AFP Dental Service Founding Anniversary.
2019 ANNUAL REPORT 39
 BANNER
CORPORATE SOCIAL RESPONSIBILITY YEAR

ETON PROPERTIES PHILIPPINES, INC.

Eton and TYKFI launch Masaganang Palayan Permanent Housing for Families Refurbished Classrooms in Tawi-Tawi Mingo Meals
(Prosperous Ricefield) of TYKFI Scholars On November 28, 2019,
PMFTC in partnership with
the Negrense Volunteers
for Change Foundation,
Inc. (NVC), started a
supplemental feeding
program for 400 children
in the Municipality of
Carles in Iloilo Province.
In April 2019, PMFTC’s CSR Program, NVC manufactures Mingo
Embrace, together with Joint Task Force- meals, a nutritious instant
Eton sponsored housing units for indigent families of Tawi-Tawi, Marine Battalion Landing complementary food made of rice, mung beans and moringa. Mingo meals
farmers in Aritao and Sta. Fe, Nueva Vizcaya. The donation Team-9 and the 39th Marine Company refurbished classrooms in the Datu provides nutritional support and help the children reach normal nutritional
was coursed through TYKFI. In July, four families, with Dawila Primary School, located in the farthest sitio (part of status. Children enrolled in the program are weighed at the start and are
children who are scholars of TYKFI at the Saint Teresita’s a barangay, the smallest administrative unit) of Sitangkal in monitored monthly throughout the
Academy, received their new houses from Eton. the Province of Tawi-Tawi. The classrooms were painted program’s duration. Field officers teach
and windows, ceilings, roofs, fence and blackboards were parents the importance of proper nutrition,
In December, Eton and TYKFI launched the Masaganang repaired. This benefited 142 school children and 5 teachers. give instructions for preparing Mingo and
Palayan Project where free rice seeds and fertilizer were also go house-to-house to check on the
given to 18 farmers in Comon and Tabueng Aritao, Nueva beneficiaries.
Vizcaya. Each farmer received three to five sacks of hybrid
seeds.
Educational Materials for School in Zamboanga Disaster Relief
PMFTC INC.
Multi-Purpose shelter and Fish Dryers for Fisherfolk Livelihood Project
in Batanes on Salted Egg
Production
On May 27, 2019, PMFTC turned over to the Batanes Local Government Unit
the multi-purpose shelter and fish dryers in Mavulis Island for the use of the On October 18, 2019, ten
Ivatan fisherfolk. women of Buhanginan,
Nagcarlan in the province
of Laguna, received
training and starter kits
on salted egg production. Their produce from their small-
scale business is purchased by local fast food chains.
In October 2019, PMFTC donated educational materials In November 2019, PMFTC provided
and conducted a short training on hygiene to 124 students relief assistance to victims of earthquakes.
on Simariki, a small island a few minutes by boat from the In the northern province of Batanes,
center of Zamboanga City. This was one of the places 3,200 individuals were given aid, while
where the Zamboanga Siege in September 2013 took place. in different parts of Mindanao, 22,568
individuals were helped.

Training on
Sustainable World Clean-Up Day Global Equal Salary Certification
Fishing
Techniques and On September 21-22, 2019, 247 In 2019, Philip Morris International became
the first multinational consumer goods
employees of PMFTC participated in
Fishing Boats the World Clean-Up Day in Taguig company to be awarded the distinction
of not having gender-based bias in terms
Livelihood Project for Thirty fishermen
City (Metro Manila), Cebu City
and Cagayan de Oro City. A total of salary distribution. PMFTC got its
Indigenous People in from Marantao, in
of 62,078 kilograms of litter was certification in 2019.
the Province of
Batiawan, Zambales Lanao del Sur, who
collected.
were displaced by
In September 2019, the
the Marawi Seige,
Samahang Mangagawa at
received training on fish production and sustainable
Mambubukid ng Barangay
fishing techniques, fish processing and environmental
Batiawan (Organization of
production. Materials needed to build non-motorized boats
Workers and Farmers of Barangay Batiawan), a local
were given and the boats were awarded to the fishermen
organization of farmers from indigenous peoples, received
in October 2019.
goats from PMFTC for their livelihood. This benefited 100
families.

40 LT G R O U P, I N C . 2019 ANNUAL REPORT 41


CORPORATE SOCIAL RESPONSIBILITY
PHILIPPINE NATIONAL BANK
Sustainable Lifestyle Fair
A three-day eco-bazaar featuring sustainably
sourced products and organic food items
was held on November 23 to 25, 2019 at
the Head Office premises. Sessions on
climate change and resilient communities,
zero waste lifestyle and environment-
conscious living were also provided.
Financial Literacy and
Financial Wellness
Seminars
In June, August, May, September,
October and November, the
Bank conducted Financial
Literacy Seminars for students,
teachers, parents and Overseas
Filipino Workers (OFWs). The
participants were taught the
basics of money management,
specifically identifying needs
and wants, budgeting, spending
and saving where applicable bank products and services were also presented.
These were conducted in various parts of Metro Manila, Cainta, Rizal.
Meanwhile, Financial Wellness Seminars were conducted for corporate clients
in Iloilo and OFWs in Japan and Singapore.
On October 24, 2019, a seminar on Financial Literacy was
conducted for 20 members of the Barangay Association of
Treasurers of the Municipality of Aritao in Nueva Vizcaya.
This was conducted in cooperation with the Tan Yan Kee
Foundation, Inc.
Partnership
with Philippine
Red Cross
PNB partnered with
the Philippine Red
Cross for the training
of employees on
Standard First Aid and Basic Life Support,
as well as on Disaster Preparedness. In
October, PNB donated Php5 million to Red
Cross for two ambulances in Visayas and
Mindanao.
42 LT G R O U P, I N C .
BANNER
YEAR
Scholarships for Ateneo de Manila University Fitness Program Zumba for Workers’ Health and Wellness
and Health Bulletins
At PNB’s Head Office,
physical fitness activities
are offered to employees
year-round. These include
Mixed Martial Arts, Dance
and Pilates, Yoga and
Zumba.
Moreover, monthly email blasts are sent to employees to increase health
awareness, share tips and encourage employees to live a healthy lifestyle.
In November, a one-day holistic fair was held at the Head
Office where topics on physical, social, spiritual and financial
health were discussed. This was participated by over 50
employees.
In November, PNB donated Php5 million to the Gov. Amando
M. Tetangco Scholarship Fund of the Ateneo Scholarship
Since August of 2018, employees in the Cabuyao plant have
Foundation, Inc. This is to support the education of in-need
been joining the Zumba hour everyday at noontime for better
students taking business-related courses at the Ateneo de
Manila University. TANDUAY DISTILLERS, INC. health and wellness.
River Clean-Ups
Donation of Decommissioned Desktop PCs On April 26, 2019,
employees of the Cabuyao, Lecture on
Laguna plant participated
in the clean-up of the Cardiovascular
Salanglanka River, in Diseases
Cabuyao, Laguna, with the
Cabuyao River Protection In August 2019,
Advocates (CaRPA) and TDI’s Cabuyao plant
the City Environment and had a lecture on
Natural Resources Office cardiovascular diseases
(CENRO). and stress and stress
management. 25
On June 28, 2019, TDI persons attended.
employees from the Cabuyao plant again participated
in a similar activity, for the Banlic River. An environment
In April and December, PNB donated 170 decommissioned Desktop Personal awareness lecture was conducted.
Computers to ACTION, Inc. in Olongapo City, H.O.U.S.E. Foundation and the
Pentecostal Missionary of Christ in Cainta, Rizal.
ACTION (A Child’s Trust is Ours to Nurture) is an organization that provides
educational materials for children and facilitates scholarship
programs for impoverished communities in Zambales
Province in Central Luzon. H.O.U.S.E (Helping OUrselves
through Sustainable Enterprises) educates, employs and
Lecture on Environment Preservation Adopt-an-Estero
empowers at risk youth to give them a second start in life. (Estuary)
TDI’s Murcia, Negros
Occidental plant
conducts a quarterly
Relief Operations for clean-up of its
adopted Cabungan-
Mindanao Earthquake Victims an Creek. In 2019,
the clean-ups were
On December 21, 2019, PNB and
conducted on
TYKFI conducted relief operations for
March 24, June 23,
victims of the earthquakes in Digos City,
September 29 and
Davao del Sur and Kidapawan City in
November 30.
North Cotabato. Around a thousand
families were given assistance.
Meanwhile, in January, Absolut Distillers, Inc.
had a clean-up activity of the Palico-Lian
Meanwhile, the bank launched “A Boxful of Love” in
River in the Province of Batangas.
November, a call for in-kind donations from bank employees TDI sponsored a lecture on the effects of environment
for the victims of the Mindanao earthquake. preservation and degradation of livelihood in October
for farmers, fishermen and local government officials in
Barangay Mamatid in Cabuyao, Laguna. Around 35 people
attended the lecture.
2019 ANNUAL REPORT 43
 BANNER
CORPORATE SOCIAL RESPONSIBILITY YEAR

TANDUAY DISTILLERS, INC.

Voluntary Bloodletting Program for Fisherfolk Sports Development Tilapia Fingerlings Christmas Gift Giving
Program
On December 16, 2019, 21 employees On August 6, 2019, Absolut Seventy bags of foodstuff
of TDI’s plant in Murcia, Negros Distillers, Inc. provided livelihood TDI and Absolut Distillers, Inc. were distributed to residents
Occidental donated blood for the assistance to fishermen working sponsor basketball teams in Lian near the plant.
Corazon Locsin Montelibano Memorial along the Palico – Lian River and other towns.
Regional hospital. This was in in Barangay Bucana, Nasugbu,
participation with the Coast Guard. Batangas.

Area Clean-Up Brigada Eskwela On the Job

Training (OJT)
Ten thousand tilapia fingerlings were dispersed in the Palico Lian River in
Batangas on September 25, 2019. This was a project of Absolut Distillers, Inc. Absolut Distillers, Inc.
and government agencies – the Bureau of Fisheries and allows students from
Aquatic Resources Region 4-A, City Environment and various schools to get
Natural Resources Office (CENRO) of Calaca, the Lian local OJT. Partner schools
government unit (LGU) and Municipality Environment and are the Nicolites
Natural Resources Office (MENRO). Montessori School,
Lian Senior High
School, Lian Institute,
STI Balayan Campus,
Batangas State University, Technological Institue of the
Philippines, Adamson University and the University of
Negros Occidental Recoletos.

Employees of TDI’s El Salvador Plant in Misamis Oriental

conducted a clean-up round the plant’s vicinity on September
20, 2019. They were able to collect 8 bags or 92 kilograms
of trash.
For the Brigada Eskwela activities in May at the Malaruhatan
Perimeter Fence for Police Station Plant Tours for Students
Elementary School and Lian National High School in
Batangas, Absolut Distillers, Inc. donated cleaning materials,
brooms, rags, garbage bags and paint. Employees also
joined in cleaning.

Lian Town Fiesta, Beauty Pageant License to Own and Possess Firearms (LTOPF) Caravan

TDI subsidiary, Absolut Distillers, Inc. donated and installed banderitas (small
flags strung up during fiestas) and paid for a band during the June 24, 2019
fiesta of Lian town in Batangas.
In April 2019, the Company sponsored the town’s beauty pageant.
Absolut Distillers, Inc. provided materials and manpower Students from Adamson University, Bicol University, University of the
for the construction of the perimeter fence around the Philippines (UP) - Diliman Campus, ALCHEMES (organization of chemical
Lian Municipal Police Station. It was completed on engineering majors), BIOTECH (organization of molecular
November 4, 2019. biology and biotechnology students) and the Philippine
Institute of Chemical Engineers (PiChe) have visited Absolut
Distillers, Inc. to broaden their knowledge and see the actual
application of what they learn in school.
Some staff of Absolut Distillers, Inc. helped during the 2-day
event in September, in cooperation with the Philippine
National Police (PNP) and the local government unit of Lian,
Batangas. Some equipment owned by Absolut Distillers, Inc.
were also used during the event.

44 LT G R O U P, I N C . 2019 ANNUAL REPORT 45

 BANNER
SUSTAINABILITY YEAR

ASIA BREWERY, INC.

Cabuyao River Protection Advocates (CaRPA) Activities Environment, Health and Elimination of Single Use Plastic We Care: Mission Zero Level Up,
Safety (EHS) Summit 2019 I-Care, 1001 Small Interventions
Cabuyao River
Protection In line with the Company’s goal of PMFTC has an ongoing
Advocates (CaRPA) instilling and strengthening an EHS program in its plants where
is a multi-sectoral culture of all plants, EHS Summit the aim is to achieve a
group, with a 2019 was arranged. EHS Summit with culture of safety and have no
representative of this year’s theme “Go the Extra Mile: incidents of accidents.
ABI currently as Taking EHS Beyond Compliance” was
President. As an successfully celebrated last September The Company also has
active member, ABI 24-27, 2019 at ABI Complex, Cabuyao I-Care, a behavior observation
aims to protect the Plant. program that enables
rivers within the all employees to provide
Cabuyao area where The EHS Summit was participated feedback to anyone in the organization, reminding them to always be safe.
ABI’s effluents are widely by all EHS Officers from ABI-
discharged. Cabuyao, IPI-Cabuyao, ABI-Sta. Rosa, Another program is the 1001 Small
PWI, ABN, ABI-El Salvador, IPI-Davao, Interventions where simple yet impactful
On April 26, 2019, CaRPA conducted a clean-up, dredging and desilting of and IPI-Pampanga plants. interventions are done to encourage
Tiwaytiway-Salanglanka River, one of the most economically significant rivers employees to be safe all the time.
in Cabuyao. A community clean-up was also conducted on June 28, 2019
At the Batangas and Marikina Plants, PMFTC is on the road to the elimination
which was followed by an environmental education program on proper waste
of single-use plastic waste in these facilities. Activities include the
management, water scarcity, household sanitation and hygiene for the local
implementation of the EcoBricks Program, raising awareness on the impact
community. On August 20, 2019, CaRPA held a Lakbay Aral-Benchmarking
of single-use plastic and the phase-out of single-use plastic.
Activity at the Pasig River Rehabilitation Commission.

Department of Energy Sustainable Education

and Public Awareness (SEPA)

Plant Clean-up Drive

Activities
On September 7, 2019, ABI
conducted a cleaning activity of
the Bottled Water Plant 2 Areas in
Barangay Malitlit, Sta. Rosa City.
On October 19, 2019, cleaning and
segregation of accumulated waste
outside the plant was conducted.
Reduction of Waste to Landfills Cigarette Butt Litter Collection Program
For two months in the 2nd quarter
On October 4, 2019, ABI employees attended the training conducted by of 2019, PMFTC tested a cigarette
Department of Energy on updates on the development program of the butt litter collection program for adult
country’s downstream natural gas industry and awareness campaign on smokers in two test communities in
natural gas being a new sector in energy. This promotes Marikina City and Quezon City, both
continuous learning and improvement among ABI in Metro Manila. The target is to have
employees. a nationwide expansion in 2020.
The litter will be upcycled into fillers
for cement or additives for energy
production.

PMFTC INC.
Reduction of C02 Emissions with
Equipment Efficiency and Change
of Energy Source
At the PMFTC Batangas plant. four two-ton modular
boiler were installed that will maintain operating
efficiency of 95% at any given demand from
production. This will reduce C02 emissions by 606
tons annually.
PMFTC has a Disposal Ratio Reduction Program where the target is to
have zero non-mandated waste for landfills. These were implemented in the
Marikina and Batangas factories starting 2017 where waste is composted
or used for energy and has since reduced the amount of waste disposed in
landfills by 90%.
Coal-Fired Boiler

Meanwhile at the Marikina plant, the coal-fired boiler

was decommissioned and replaced by a fuel-fired
boiler. This will reduce reduce C02 emissions by
334 tons annually.

Fuel-Fired Boiler

46 LT G R O U P, I N C . 2019 ANNUAL REPORT 47

 BANNER
SUSTAINABILITY YEAR

PHILIPPINE NATIONAL BANK

Green Loans Energy Conservation Project PLANET EDGE Certification
(Protect, Love
The Bank reduced its energy
consumption by replacing And Nurture the
conventional light fixtures to Environment Together)
LED, reducing the number of
lights turned on after office This is an internal
hours in parking and common environmental awareness and
areas of the head office building. carbon footprint reduction
At the Makati Center, the six old campaign among bank
traditional elevators are being employees focusing on energy
replaced with more energy efficiency, water conservation,
efficient models and the conventional air conditioning units banning single-use plastic and
are being replaced with inverter-type units. These activities proper waste management.
are estimated to result in electricity savings of Php6.7 million The campaign was formally
per year. launched in July 2019 during
the Bank’s 103rd anniversary.

PNB has allotted Php215.2 billion for loans to eco-friendly and sustainable
businesses and projects such as food manufacturing, agricultural production, In August 2019, PNB initiated through the Philippine Business Coalition for
water distribution and supply, energy generation and distribution, operation
of toll roads and bridges, telecommunications, responsible packaging and
Water Conservation Initiatives Women Empowerment the road towards the EDGE (Economic Dividends
for Gender Equality) Certification of the bank. The EDGE Certification is the
construction of green buildings. To reduce water consumption, leading global assessment methodology and business certification standard
the volume of water needed for gender equality.
for toilet and urinal flushing
was reduced; and leaking or
defective pipes, fittings, valves
and flushers were replaced or
fixed. An estimated Php356,000
was reduced from the water
consumption of the Head Office
and the Makati Center in 2019.
TANDUAY DISTILLERS, INC.
Evaporation Plant Lessens Use of Water Solar Panels at the Warehouse and Gym
Solar panels were installed on the roof of TDI’s building in Quiapo, Manila. A
Earth Hour total of capacity of 330 kilowatt “peak” (kWp) was installed, 232 kWp at the
warehouse and 98 kWp at the gym. At 65% utilization for six hours a day, this
PNB donated Php50,000 to is estimated to translate of savings of 38.6 thousand kilowatt hours per month.
the World Wide Fund (WWF) –
Philippines for the Earth Hour
Kick-Off on March 30 in Circuit
Makati. The Bank also initiated
a call tree advisory among
employees to encourage
participation in the symbolic
60-minute switch off of non-
essential lights and appliances
in their homes.

The evaporation plant decreases the volume of distillery effluent by up

to 80%, while the remaining product condensate can be reused in the
fermentation process, lessening groundwater extraction.

48 LT G R O U P, I N C . 2019 ANNUAL REPORT 49

 INDEPENDENT AUDITOR’S REPORT
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2019 ANNUAL REPORT 51
 INDEPENDENT AUDITOR’S REPORT
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Management is responsible for the preparation and fair presentation
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VULYLZ\S[PUNMYVTLYYVYHZMYH\KTH`PU]VS]LJVSS\ZPVUMVYNLY`
PU[LU[PVUHS VTPZZPVUZ TPZYLWYLZLU[H[PVUZ VY [OL V]LYYPKL VM
PU[LYUHSJVU[YVS
‹ 6I[HPUHU\UKLYZ[HUKPUNVMPU[LYUHSJVU[YVSYLSL]HU[[V[OLH\KP[
PUVYKLY[VKLZPNUH\KP[WYVJLK\YLZ[OH[HYLHWWYVWYPH[LPU[OL
JPYJ\TZ[HUJLZI\[UV[MVY[OLW\YWVZLVML_WYLZZPUNHUVWPUPVU
VU[OLLќLJ[P]LULZZVM[OL.YV\W»ZPU[LYUHSJVU[YVS
‹ ,]HS\H[L[OLHWWYVWYPH[LULZZVMHJJV\U[PUNWVSPJPLZ\ZLKHUK[OL
YLHZVUHISLULZZVMHJJV\U[PUNLZ[PTH[LZHUKYLSH[LKKPZJSVZ\YLZ
THKLI`THUHNLTLU[
‹ *VUJS\KL VU [OL HWWYVWYPH[LULZZ VM THUHNLTLU[»Z \ZL VM
[OL NVPUN JVUJLYU IHZPZ VM HJJV\U[PUN HUK IHZLK VU [OL
H\KP[ L]PKLUJL VI[HPULK ^OL[OLY H TH[LYPHS \UJLY[HPU[`
L_PZ[Z YLSH[LK [V L]LU[Z VY JVUKP[PVUZ [OH[ TH` JHZ[ ZPNUPÄJHU[
KV\I[ VU [OL .YV\W»Z HIPSP[` [V JVU[PU\L HZ H NVPUN JVUJLYU
[OL .YV\W [V L_WYLZZ HU VWPUPVU VU [OL JVUZVSPKH[LK ÄUHUJPHS
Z[H[LTLU[Z  >L HYL YLZWVUZPISL MVY [OL KPYLJ[PVU Z\WLY]PZPVU
HUKWLYMVYTHUJLVM[OLH\KP[>LYLTHPUZVSLS`YLZWVUZPISLMVY
V\YH\KP[VWPUPVU
>LJVTT\UPJH[L^P[O[OVZLJOHYNLK^P[ONV]LYUHUJLYLNHYKPUN
HTVUNV[OLYTH[[LYZ[OLWSHUULKZJVWLHUK[PTPUNVM[OLH\KP[
HUKZPNUPÄJHU[H\KP[ÄUKPUNZPUJS\KPUNHU`ZPNUPÄJHU[KLÄJPLUJPLZ
PUPU[LYUHSJVU[YVS[OH[^LPKLU[PM`K\YPUNV\YH\KP[
>LHSZVWYV]PKL[OVZLJOHYNLK^P[ONV]LYUHUJL^P[OHZ[H[LTLU[
[OH[^LOH]LJVTWSPLK^P[OYLSL]HU[L[OPJHSYLX\PYLTLU[ZYLNHYKPUN
PUKLWLUKLUJL HUK [V JVTT\UPJH[L ^P[O [OLT HSS YLSH[PVUZOPWZ
HUKV[OLYTH[[LYZ[OH[TH`YLHZVUHIS`IL[OV\NO[[VILHYVUV\Y
PUKLWLUKLUJLHUK^OLYLHWWSPJHISLYLSH[LKZHMLN\HYKZ
-YVT [OL TH[[LYZ JVTT\UPJH[LK ^P[O [OVZL JOHYNLK ^P[O
NV]LYUHUJL ^L KL[LYTPUL [OVZL TH[[LYZ [OH[ ^LYL VM TVZ[
ZPNUPÄJHUJL PU [OL H\KP[ VM [OL JVUZVSPKH[LK ÄUHUJPHS Z[H[LTLU[Z
VM [OL J\YYLU[ WLYPVK HUK HYL [OLYLMVYL [OL RL` H\KP[ TH[[LYZ
>L KLZJYPIL [OLZL TH[[LYZ PU V\Y H\KP[VY»Z YLWVY[ \USLZZ SH^ VY
YLN\SH[PVU WYLJS\KLZ W\ISPJ KPZJSVZ\YL HIV\[ [OL TH[[LY VY ^OLU
PU L_[YLTLS` YHYL JPYJ\TZ[HUJLZ ^L KL[LYTPUL [OH[ H TH[[LY
ZOV\SK UV[ IL JVTT\UPJH[LK PU V\Y YLWVY[ ILJH\ZL [OL HK]LYZL
JVUZLX\LUJLZ VM KVPUN ZV ^V\SK YLHZVUHIS` IL L_WLJ[LK [V
V\[^LPNO[OLW\ISPJPU[LYLZ[ILULÄ[ZVMZ\JOJVTT\UPJH[PVU
;OLLUNHNLTLU[WHY[ULYVU[OLH\KP[YLZ\S[PUNPU[OPZPUKLWLUKLU[
H\KP[VY»ZYLWVY[PZ4HY[PU*.\HU[LZ
SYCIP GORRES VELAYO & CO.
Martin C. Guantes
7HY[ULY
*7(*LY[PÄJH[L5V 
:,*(JJYLKP[H[PVU5V(9.YV\W(
 (\N\Z[]HSPK\U[PS(\N\Z[
;H_0KLU[PÄJH[PVU5V
)09(JJYLKP[H[PVU5V 
 -LIY\HY`]HSPK\U[PS-LIY\HY`
7;95V1HU\HY`4HRH[P*P[`
4HYJO
2019 ANNUAL REPORT 53
 LT GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

(Amounts in Thousands)

December 31 December 31
 
(Z9LZ[H[LK (Z9LZ[H[LK
2019 5V[L 2019 5V[L
ASSETS Total Current Liabilities (Brought Forward) P876,661,623 7 
Current Assets Noncurrent Liabilities
*HZOHUKJHZOLX\P]HSLU[Z5V[L P184,913,132 7  +LWVZP[SPHIPSP[PLZUL[VMJ\YYLU[WVY[PVU5V[L 46,095,883  
-PUHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOWYVÄ[VYSVZZ-=;73B5V[LZHUKD 13,469,380 
)PSSZHUKHJJLW[HUJLZWH`HISL5V[L 4,141,689  
-PUHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOV[OLYJVTWYLOLUZP]LPUJVTL
-=;6*0B5V[LZHUKD 16,968,590  3VUN[LYTKLI[ZUL[VMJ\YYLU[WVY[PVU5V[L  71,566,863 
-PUHUJPHSHZZL[ZH[HTVY[PaLKJVZ[5V[LZHUK 25,252,670  5L[YL[PYLTLU[ILULÄ[ZSPHIPSP[`5V[L 1,699,743 
3VHUZHUKYLJLP]HISLZ5V[LZHUK 260,926,594  +LMLYYLKPUJVTL[H_SPHIPSP[PLZUL[5V[L  8,510,128 
0U]LU[VYPLZ5V[L  12,196,871  6[OLYUVUJ\YYLU[SPHIPSP[PLZ5V[L 3,147,053   
+\LMYVTYLSH[LKWHY[PLZ5V[L 2,029,436  Total Noncurrent Liabilities 135,161,359  
6[OLYJ\YYLU[HZZL[Z5V[L 11,379,265   Total Liabilities 1,011,822,982 
Total Current Assets 527,135,938  Equity

Noncurrent Assets ([[YPI\[HISL[VLX\P[`OVSKLYZVM[OL*VTWHU`5V[LZHUK!

3VHUZHUKYLJLP]HISLZUL[VMJ\YYLU[WVY[PVU5V[LZHUK 411,253,754  *HWP[HSZ[VJR 10,821,389 
-PUHUJPHSHZZL[ZH[-=;6*05V[LZHUK 110,549,031  *HWP[HSPUL_JLZZVMWHY 35,906,231  
-PUHUJPHSHZZL[ZH[HTVY[PaLKJVZ[5V[LZHUK 75,212,087   7YLMLYYLKZOHYLZVMZ\IZPKPHYPLZPZZ\LK[V7HYLU[*VTWHU` 8,538,837 
0U]LZ[TLU[ZPUHZZVJPH[LZHUKQVPU[]LU[\YLZ5V[L 27,254,278  6[OLYJVTWYLOLUZP]LPUJVTLUL[VMKLMLYYLKPUJVTL[H_LќLJ[ 18,038,315 
7YVWLY[`WSHU[HUKLX\PWTLU[5V[L! 6[OLYLX\P[`YLZLY]LZ 1,024,653  
 ([HWWYHPZLK]HS\LZ 59,811,911  9L[HPULKLHYUPUNZ 112,604,635   
 ([JVZ[ 12,087,216  :OHYLZVMZ[VJRVM[OL*VTWHU`OLSKI`Z\IZPKPHYPLZ (12,519)  
0U]LZ[TLU[WYVWLY[PLZ5V[L 32,631,441   186,921,541  
+LMLYYLKPUJVTL[H_HZZL[ZUL[5V[L  2,386,671   5VUJVU[YVSSPUNPU[LYLZ[Z5V[LZHUK 67,086,030 
6[OLYUVUJ\YYLU[HZZL[Z5V[L 7,508,226  Total Equity 254,007,571  
Total Noncurrent Assets 738,694,615   
TOTAL LIABILITIES AND EQUITY P1,265,830,553 7 
TOTAL ASSETS P1,265,830,553 7 
See accompanying Notes to Consolidated Financial Statements.
LIABILITIES AND EQUITY
Current Liabilities
+LWVZP[SPHIPSP[PLZ5V[L P772,143,072 7 
-PUHUJPHSSPHIPSP[PLZH[-=;735V[LZHUK 245,619 
)PSSZHUKHJJLW[HUJLZWH`HISL5V[L 51,821,601  
(JJV\U[ZWH`HISLHUKHJJY\LKL_WLUZLZ5V[L 26,700,462  
:OVY[[LYTKLI[Z5V[L  5,150,000 
*\YYLU[WVY[PVUVMSVUN[LYTKLI[Z5V[L  1,002,593 
0UJVTL[H_WH`HISL 690,518  
+\L[VYLSH[LKWHY[PLZ5V[L 65,325 
6[OLYJ\YYLU[SPHIPSP[PLZ5V[LZHUK 18,842,433 
Total Current Liabilities (Carried Forward) 876,661,623  

54 LT G R O U P, I N C . 2019 ANNUAL REPORT 55

 LT GROUP, INC. AND SUBSIDIARIES LT GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Amounts in Thousands, Except for Basic/Diluted Earnings Per Share) (Amounts in Thousands)

Years Ended December 31 Years Ended December 31

   
 (Z9LZ[H[LK  (Z9LZ[H[LK  (Z9LZ[H[LK  (Z9LZ[H[LK
2019 5V[L 5V[L 2019  5V[L 5V[L
REVENUE 5V[L NET INCOME P27,565,757 7 7
)HURPUN P56,615,631 7 7 OTHER COMPREHENSIVE INCOME (LOSS)
Distilled spirits 19,261,735    6[OLYJVTWYLOLUZP]LPUJVTLSVZZ[VILYLJSHZZPÄLK[VWYVÄ[VYSVZZPU
Beverage 15,234,051     subsequent periods:
7YVWLY[`KL]LSVWTLU[ 3,132,431     5L[JOHUNLZPUMHPY]HS\LVMÄUHUJPHSHZZL[ZH[  
94,243,848     -=;6*05V[L 2,260,682  –
COST OF GOODS SOLD AND SERVICES 5V[L 46,802,568       0UJVTL[H_LќLJ[ – – –
GROSS INCOME 47,441,280     2,260,682  –
 5L[JOHUNLZPUMHPY]HS\LVM(-:PU]LZ[TLU[Z5V[L – – 
EQUITY IN NET EARNINGS OF ASSOCIATES AND JOINT
VENTURES 5V[L 14,813,251       0UJVTL[H_LќLJ[ – – 
62,254,531    – – 

OPERATING EXPENSES  ;YHUZSH[PVUHKQ\Z[TLU[Z (916,208)  

:LSSPUNL_WLUZLZ5V[L 3,011,424    5L[V[OLYJVTWYLOLUZP]LPUJVTLSVZZ[VILYLJSHZZPÄLK[VWYVÄ[VY
.LULYHSHUKHKTPUPZ[YH[P]LL_WLUZLZ5V[L 32,720,730     SVZZPUZ\IZLX\LU[WLYPVKZ 1,344,474   
Other comprehensive income (loss) not to be
35,732,154  
YLJSHZZPÄLK[VWYVÄ[VYSVZZPUZ\IZLX\LU[WLYPVKZ!
OPERATING INCOME 26,522,377   
 5L[JOHUNLZPUMHPY]HS\LVMÄUHUJPHSHZZL[ZH[-=;6*05V[L 4,974,003  –
OTHER INCOME (CHARGES)  0UJVTL[H_LќLJ[ (1,492,201)   –
-VYLPNUL_JOHUNLNHPUZUL[ 1,049,980   3,481,802   –
-PUHUJLPUJVTL5V[L 146,253    9LTLHZ\YLTLU[NHPUZSVZZLZVUKLÄULKILULÄ[WSHUZ5V[L (1,448,458)  
-PUHUJLJVZ[Z5V[L (450,841)   
 0UJVTL[H_LќLJ[ 276,868   
6[OLYZUL[5V[L 3,995,302  
(1,171,590)  
4,740,694   
 :OHYLPUYLTLHZ\YLTLU[NHPUVUKLÄULK  
INCOME BEFORE INCOME TAX 31,263,071    ILULÄ[WSHUZVMHZZVJPH[LZ5V[L 1,001,641  
PROVISION FOR (BENEFIT FROM) INCOME TAX 5V[L   9L]HS\H[PVUPUJYLHZLKLJYLHZLVU   
*\YYLU[ 4,210,851     WYVWLY[`WSHU[HUKLX\PWTLU[5V[L 858,633   –
Deferred (513,537)    0UJVTL[H_LќLJ[ (257,590)  –
3,697,314     601,043  –
NET INCOME P27,565,757 7 7 5L[V[OLYJVTWYLOLUZP]LPUJVTLSVZZUV[[VILYLJSHZZPÄLK[VWYVÄ[
VYSVZZPUZ\IZLX\LU[WLYPVKZ 3,912,896   
NET INCOME ATTRIBUTABLE TO: OTHER COMPREHENSIVE INCOMENET OF TAX 5,257,370  
,X\P[`OVSKLYZVM[OL*VTWHU` 23,117,524    TOTAL COMPREHENSIVE INCOME P32,823,127 7 7
5VUJVU[YVSSPUNPU[LYLZ[Z 4,448,233    TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:
P27,565,757   ,X\P[`OVSKLYZVM[OL*VTWHU` P26,501,864 7 7
Basic/Diluted Earnings Per Share Attributable to Equity 5VUJVU[YVSSPUNPU[LYLZ[Z 6,321,263    
Holders of the Company 5V[L P2.14 7 7
P32,823,127 7 7
See accompanying Notes to Consolidated Financial Statements.
See accompanying Notes to Consolidated Financial Statements.

56 LT G R O U P, I N C . 2019 ANNUAL REPORT 57

58
LT GROUP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY

FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
(Amounts in Thousands)

LT G R O U P, I N C .
([[YPI\[HISL[V,X\P[`/VSKLYZVM[OL*VTWHU`5V[LZHUK
6[OLY*VTWYLOLUZP]L0UJVTL3VZZ
 9L]HS\H[PVU
Increment
 VU7YVWLY[`
 7YLMLYYLK  9LZLY]LZVM  9LTLHZ\YLTLU[  9L]HS\H[PVU  7SHU[HUK  9LTLHZ\YLTLU[  ;V[HS6[OLY Shares
Shares of Disposal  5L[  .HPUZ3VZZLZ Increment  ,X\PWTLU[  .HPUZVU  *VTWYLOLUZP]L  VM:[VJR  5VU
 :\IZPKPHYPLZ  .YV\W  *OHUNLZPU  VU+LÄULK  VU7YVWLY[` Transferred  +LÄULK  0UJVTL3VZZ of the controlling
 *HWP[HS  0ZZ\LK  6[OLY  *SHZZPÄLKHZ  *\T\SH[P]L  -PUHUJPHS  )LULÄ[7SHUZ  7SHU[HUK  [V(ZZVJPH[L  )LULÄ[7SHUZ  5L[VM+LMLYYLK  *VTWHU` Interests
 *HWP[HS  PU,_JLZZ  [V7HYLU[  ,X\P[`  /LSKMVY Translation  (ZZL[ZH[  -=;6*0  ,X\PWTLU[ 5V[LZ  VMHU(ZZVJPH[L  0UJVTL;H_  9L[HPULK  /LSKI` 5V[LZ
 :[VJR  VM7HY  *VTWHU`  9LZLY]LZ Sale  (KQ\Z[TLU[Z 5V[L 5V[L 5V[L HUK 5V[L  ,ќLJ[  ,HYUPUNZ  :\IZPKPHYPLZ Total HUK Total
BALANCES AT DECEMBER 31, 2016 P10,821,389 P35,906,231 P18,060,000 P804,095 Pò P694,323 (P1,971,897) (P1,581,187) P4,473,280 P172,507 P90,980 P1,878,006 P68,640,783 (P12,519) P136,097,985 42,506,591 178,604,576
5L[PUJVTLMVY[OL`LHY – – – – – – – – – – – –  –    
6[OLYJVTWYLOLUZP]LPUJVTL – – – – –      – –    – –    
;V[HSJVTWYLOLUZP]LPUJVTLMVY[OL`LHY – – – – –      – –     –    
*HZOKP]PKLUKZKLJSHYLK – – – – – – – – – – – –   –   – –
;YHUZMLYVMWVY[PVUVMYL]HS\H[PVUPUJYLTLU[
VUWYVWLY[`WSHU[HUKLX\PWTLU[
YLHSPaLK[OYV\NOKLWYLJPH[PVUHUK
disposal – – – – – – – –    –      – – – –
BALANCES AT DECEMBER 31, 2017 10,821,389 35,906,231 18,060,000 804,095 – 983,878 371,483 (934,595) 3,733,860 – 145,048 4,299,674 78,435,633 (12,519) 148,314,503 47,000,912 195,315,415
,ќLJ[VM7-9: HKVW[PVUPU – – – – – –  – – – –   –   
,ќLJ[VM7-9:HKVW[PVUPU – – – – – – – – – – – –  –    
BALANCES AT JANUARY 1, 2018 10,821,389 35,906,231 18,060,000 804,095 – 983,878 2,835,828 (934,595) 3,733,860 – 145,048 6,764,019 77,228,912 (12,519) 149,572,127 46,288,764 195,860,891
5L[PUJVTLMVY[OL`LHY – – – – – – – – – – – –   –    
6[OLYJVTWYLOLUZP]LPUJVTL – – – – –        –   – –   
;V[HSJVTWYLOLUZP]LPUJVTLSVZZ
MVY[OL`LHY – – – – –        –     –    
*HZOKP]PKLUKZKLJSHYLK – – – – – – – – – – – –  –    
9L]LYZHSVMKPZWVZHSNYV\WJSHZZPÄLKHZ
held for sale – – – –   –    – – –   – – –  
;YHUZMLYVMWVY[PVUVMYL]HS\H[PVUPUJYLTLU[
VUWYVWLY[`WSHU[HUKLX\PWTLU[
YLHSPaLK[OYV\NOKLWYLJPH[PVUHUK
disposal – – – – – – – –   – –     – – – –
BALANCES AT DECEMBER 31, 2018 P10,821,389 P35,906,231 P18,060,000 P804,095 (P21,893) P1,152,659 P1,697,797 (P331,706) P12,689,666 P– P202,066 P15,410,482 P91,998,914 (P12,519) P172,966,699 P58,223,689 P231,190,388

9L]LYZHSVMKPZWVZHSNYV\WJSHZZPÄLKHZ
held for sale – – – –   –    – – –   – – – – –
BALANCES AT DECEMBER 31, 2018
AS ADJUSTED 10,821,389 35,906,231 18,060,000 804,095  ò 1,152,659 1,682,196 (337,998) 12,689,666 – 202,066 15,388,589 91,998,914 (12,519) 172,966,699 58,223,689 231,190,388
5L[PUJVTLMVY[OL`LHY – – – –  ò – – – – – – –  –   
6[OLYJVTWYLOLUZP]LPUJVTLSVZZ – – –  ò  ò       –    ò –   
;V[HSJVTWYLOLUZP]LPUJVTLSVZZMVY
[OL`LHY – – – –  ò       –    –   
*HZOKP]PKLUKZKLJSHYLK – – – –  ò – – – – – – –   –    
,HYS`YLKLTW[PVUVMWYLMLYYLKZOHYLZ – –   –  ò – – – – – –  ò – –   –  
0UJYLHZLPUUVUJVU[YVSSPUNPU[LYLZ[^P[OV\[
loss of control – – – –  ò – – – – – – – – – –    
6[OLYLX\P[`YLZLY]L – – –  – – – – – – – –   –   
,ќLJ[VMJOHUNLPUHJJV\U[PUN
WVSPJ`VUIVYYV^PUNJVZ[Z5V[L – – – –  ò – – – – – – –    ò 
;YHUZMLYVMWVY[PVUVMYL]HS\H[PVUPUJYLTLU[
VUWYVWLY[`WSHU[HUKLX\PWTLU[
YLHSPaLK[OYV\NOKLWYLJPH[PVUHUK
disposal – – – –  ò – – –  – –   – – – –
BALANCES AT DECEMBER 31, 2019 P10,821,389 P35,906,231 P8,538,837 P1,024,653 Pò P692,552 P4,619,445 (P1,203,707) P12,726,318 P– P1,203,707 P18,038,315 P112,604,635 (P12,519) P186,921,541 P67,086,030 P254,007,571

See accompanying Notes to Consolidated Financial Statements.























-VY^HYK
Interest paid
Inventories

Interest received
(KQ\Z[TLU[ZMVY!

9LJLP]HISLZ

Deposit liabilities
0UJYLHZLKLJYLHZLPU!
+LJYLHZLPUJYLHZLPU!
.HPUVUKPZWVZHSVM!
(Amounts in Thousands)

0UJVTLILMVYLPUJVTL[H_

6[OLYJ\YYLU[HZZL[Z
-PUHUJLJVZ[Z5V[L

-PUHUJPHSHZZL[ZH[-=;73
-PUHUJLPUJVTL5V[L

*VU[YPI\[PVUZ[VYL[PYLTLU[WSHU
+P]PKLUKPUJVTL5V[L

*HZONLULYH[LKMYVTVWLYH[PVUZ
-PUHUJPHSSPHIPSP[PLZH[-=;73

5L[JHZOMYVTVWLYH[PUNHJ[P]P[PLZ
+P]PKLUKZYLJLP]LK5V[LZHUK
7YV]PZPVUMVYSVZZLZ5V[LZHUK

6[OLYJ\YYLU[HUKUVUJ\YYLU[SPHIPSP[PLZ
(-:PU]LZ[TLU[Z5V[LZHUK
LT GROUP, INC. AND SUBSIDIARIES

(JJV\U[ZWH`HISLHUKHJJY\LKL_WLUZLZ
,X\P[`PUUL[LHYUPUNZVMHZZVJPH[LZ5V[L
CASH FLOWS FROM OPERATING ACTIVITIES

6WLYH[PUNPUJVTLILMVYLJOHUNLZPU^VYRPUNJHWP[HS
:OHYLPUSVZZLZVMQVPU[]LU[\YL5V[LZHUK
4V]LTLU[PUHJJY\LKYL[PYLTLU[ILULÄ[Z5V[L
6[OLYUVUJ\YYLU[HZZL[Z5V[LZHUK
+LWYLJPH[PVUHUKHTVY[PaH[PVU5V[LZHUK
CONSOLIDATED STATEMENTS OF CASH FLOWS

4HYR[VTHYRL[NHPUVUÄUHUJPHSHZZL[ZH[-=;735V[L

0UJVTL[H_LZWHPKPUJS\KPUNJYLKP[HISL^P[OOVSKPUNHUKÄUHS[H_LZ


53,363,192
183,812
ò
201,880
57,342,461
18,824,568
3,878,633
92,702,273
628,416
21,663,517
44,488
450,841
2,862,442
–
5,235,817
P31,263,071

(4,016,112)
(348,849)
(225,029)
(899,998)
(76,418,419)
(2,675,012)
(10,018)
(145,704)
(146,253)
(1,153,690)
(829,758)
(14,857,739)
2019 




 

 
 



 






–
 
7






 





 
5V[L
(Z9LZ[H[LK 
Years Ended December 31


  

 

 
 
 



  

7
(Z9LZ[H[LK


 
 

  

 
 
 


 


5V[L


 

 

2019 ANNUAL REPORT

59
 LT GROUP, INC. AND SUBSIDIARIES

NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS

(Amounts in Thousands, Except for Par Value Per Share and Basic/Diluted Earnings Per Share)

Years Ended December 31 1. Corporate Information and Authorization for Issue of the Consolidated (Z VM +LJLTILY    HUK  3;. PZ V^ULK I` P[Z
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NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 7,939,367    
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(ZPH7HJPÄJ)L]LYHNL7[L3[K(7):PUNHWVYL - 99.9     Singapore
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 176,973,765  
(ZPH7HJPÄJ)L]LYHNLZ4`HUTHY
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CASH AND CASH EQUIVALENTS AT END OF YEAR 5V[L 184,913,132 7  7
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:OHYLOVSKPUNZ0UJ:OHYLOVSKPUNZ 97.7 -     7OPSPWWPULZ
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60 LT G R O U P, I N C . 2019 ANNUAL REPORT 61

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 Incorporated on May 6, 2003 to handle the marketing of TDI’s products in the export market, TBI started its commercial operations in October 2017.
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On December 20, 2016, the Company sold its 100% ownership interest in TBI to TDI through an execution of a Deed of Sale of Shares of Stocks.
ILYLTLHZ\YLK\U[PSP[PZÄUHSS`ZL[[SLK^P[OPULX\P[`.VVK^PSSPZPUP[PHSS` Transactions Involving the Legal Form of a Lease;OLZ[HUKHYKZL[Z
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Myanmar, to establish a private company limited by shares which will manufacture, market, sell and distribute non-alcoholic ready-to-drink or powdered mix beverage products
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2019 ANNUAL REPORT 69
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2019 ANNUAL REPORT 73
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2019 ANNUAL REPORT 75
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Other income
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Interest income
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Commission earned on reinsurance
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Dividend income
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Rental income
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line basis over the lease terms of ongoing leases and is recorded in the
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Premiums revenue
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2019 ANNUAL REPORT 79
 Determination of functional currency ;OL.YV\W»Z)HUR/VSKPUN*VTWHUPLZOH]LYLKLLTHISLWYLMLYYLKZOHYLZ
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2019 ANNUAL REPORT 83
 ‹ )L]LYHNL^OPJOPZLUNHNLKPUIYL^PUNHUKZVM[KYPURZHUKIV[[SLK
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VWLYH[LZ HUK KLYP]LZ WYPUJPWHSS` HSS VM P[Z YL]LU\L MYVT KVTLZ[PJ
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KPZ[YPI\[PVU VM HZZL[Z HUK YL]LU\LZ VM [OL IHURPUN ZLNTLU[ V\[ZPKL Property Adjustments
ZLY]PJLJVU[YHJ[VYHUKLU[LYPU[VZLY]PJLHNYLLTLU[ZMVY[OLZ\WWS`VM [OL 7OPSPWWPULZ JVUZ[P[\[L   HUK  HZ VM +LJLTILY    Banking Distilled Spirits Beverage Tobacco Development and Others Total
ZLY]PJLZ;OL.YV\WJVUK\J[ZP[ZIL]LYHNLI\ZPULZZ[OYV\NO()0HUK YLZWLJ[P]LS` HUK  HUK  HZ VM +LJLTILY   VM [OL (In Thousands)
P[ZZ\IZPKPHYPLZHZZVJPH[LHUKQVPU[]LU[\YL .YV\W»ZJVUZVSPKH[LKHZZL[ZHUKYL]LU\LZYLZWLJ[P]LS` (ZZL[Z!
‹ ;VIHJJV^OPJOPZHZ\WWSPLYHUKTHU\MHJ[\YLYVMJPNHYL[[LZJHZPUNZ -\Y[OLY[OLTLHZ\YLTLU[VM[OLZLNTLU[ZPZ[OLZHTLHZ[OVZLKLZJYPILK  *\YYLU[HZZL[Z P488,857,140 P12,923,043 P16,840,868 P5,180,278 P9,237,156 (P5,902,547) P527,135,938
[VIHJJV WHJRHNPUN SHILSZ HUK ÄS[LYZ ;OL .YV\W JVUK\J[Z P[Z PU[OLZ\TTHY`VMZPNUPÄJHU[HJJV\U[PUNHUKÄUHUJPHSYLWVY[PUNWVSPJPLZ  5VUJ\YYLU[HZZL[Z 665,367,850 9,193,536 15,700,574 22,718,539 22,590,537 3,123,579 738,694,615
[VIHJJVI\ZPULZZ[OYV\NO-;*»ZPU[LYLZ[PU74-;*0UJ74-;* ;+0»ZPU]LZ[TLU[WYVWLY[`PZHKQ\Z[LKH[[OLJVUZVSPKH[LKSL]LS[VJHYY`
P1,154,224,990 P22,116,579 P32,541,442 P27,898,817 P31,827,693 (P2,778,968) P1,265,830,553
P[ H[ JVZ[ PU HJJVYKHUJL ^P[O [OL .YV\W»Z WVSPJ`  *LY[HPU HZZL[Z HUK
‹ 7YVWLY[`+L]LSVWTLU[^OPJOPZLUNHNLKPUV^ULYZOPWKL]LSVWTLU[ SPHIPSP[PLZ VM 75) HYL HSZV HKQ\Z[LK H[ [OL JVUZVSPKH[LK SL]LS VM 3;. [V 3PHIPSP[PLZ!
SLHZPUNHUKTHUHNLTLU[VMYLZPKLU[PHSWYVWLY[PLZPUJS\KPUNI\[UV[ YLÅLJ[[OLVYPNPUHSJHYY`PUN]HS\LZWYPVY[V[OLTLYNLYVM75)HUK()* *\YYLU[SPHIPSP[PLZ P865,580,704 P3,719,389 P7,764,522 P1,317,834 P7,743,432 (P9,464,258) P876,661,623
SPTP[LK[VHSSRPUKZVMOV\ZPUNWYVQLJ[ZJVTTLYJPHSPUK\Z[YPHS\YIHU
VYV[OLYRPUKZVMYLHSWYVWLY[`"HJX\PZP[PVUW\YJOHZPUNKL]LSVWTLU[ :LNTLU[ HZZL[Z HYL YLZV\YJLZ V^ULK HUK ZLNTLU[ SPHIPSP[PLZ HYL 5VUJ\YYLU[SPHIPSP[PLZ 129,363,371 875,491 1,606,108 103,082 6,248,863 (3,035,556) 135,161,359
HUK ZLSSPUN VM Z\IKP]PZPVU SV[Z ;OL .YV\W JVUK\J[Z P[Z WYVWLY[` VISPNH[PVUZ PUJ\YYLK I` LHJO VM [OL VWLYH[PUN ZLNTLU[Z L_JS\KPUN P994,944,075 P4,594,880 P9,370,630 P1,420,916 P13,992,295 (P12,499,814) P1,011,822,982
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Investments in associates and
‹ 6[OLYZ JVUZPZ[ VM ]HYPV\Z OVSKPUN JVTWHUPLZ 3;. (,+* :LNTLU[ YL]LU\L HUK L_WLUZLZ HYL [OVZL KPYLJ[S` H[[YPI\[HISL [V [OL
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7HYHTV\U[ :H[\YU :OHYLOVSKPUNZ HUK )HUR /VSKPUN *VTWHUPLZ ZLNTLU[L_JLW[[OH[PU[LYZLNTLU[YL]LU\LHUKL_WLUZLHYLLSPTPUH[LK
[OH[ WYV]PKL ÄUHUJPUN MVY ^VYRPUN JHWP[HS HUK JHWP[HS L_WLUKP[\YL VUS` H[ [OL JVUZVSPKH[LK SL]LS ;YHUZMLY WYPJLZ IL[^LLU VWLYH[PUN ,X\P[`H[[YPI\[HISL[V!
YLX\PYLTLU[ZVM[OLVWLYH[PUNI\ZPULZZLZVM[OL.YV\W ZLNTLU[ZHYLVUHUHYT»ZSLUN[OIHZPZPUHTHUULYZPTPSHY[V[YHUZHJ[PVUZ  ,X\P[`OVSKLYZVM[OL*VTWHU` 156,398,876 17,341,825 23,133,222 26,477,901 17,835,398 (54,265,681) 186,921,541
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;OL )6+ VM 3;. YL]PL^Z [OL VWLYH[PUN YLZ\S[Z VM [OL I\ZPULZZ \UP[Z  5VUJVU[YVSSPUNPU[LYLZ[Z 2,882,039 179,874 37,590 – – 63,986,527 67,086,030
[V THRL KLJPZPVUZ VU YLZV\YJL HSSVJH[PVU HUK HZZLZZLZ WLYMVYTHUJL ;OLJVTWVULU[ZVMJHWP[HSL_WLUKP[\YLZYLWVY[LK[V[OL*6+4HYL[OL (KKP[PVUZ[VUVUJ\YYLU[HZZL[Z!
:LNTLU[YL]LU\LHUKZLNTLU[L_WLUZLZHYLTLHZ\YLKPUHJJVYKHUJL HJX\PZP[PVUZVMWYVWLY[`WSHU[HUKLX\PWTLU[K\YPUN[OLWLYPVK  7YVWLY[`WSHU[HUKLX\PWTLU[ 2,761,203 2,878,969 794,790 80,689 20,526 (32,479) 6,503,698
^P[O 7-9:Z ;OL WYLZLU[H[PVU HUK JSHZZPÄJH[PVU VM ZLNTLU[ YL]LU\LZ
HUKZLNTLU[L_WLUZLZHYLJVUZPZ[LU[^P[O[OLJVUZVSPKH[LKZ[H[LTLU[Z ;OL .YV\W»Z KPZ[PSSLK ZWPYP[Z ZLNTLU[ KLYP]LZ YL]LU\L MYVT [^V THQVY Investment properties 967,611 5,814 – – 1,651,591 2,111 2,627,127
VMPUJVTL-PUHUJLJVZ[ZPUJS\KPUNPU[LYLZ[L_WLUZLHUKPUJVTL[H_LZ KPZ[YPI\[VYZ^OPJOH]LYHNLK HUKVM[OLZLNTLU[»Z[V[HS :OVY[[LYTKLI[Z – 200,000 2,850,000 – – 2,100,000 5,150,000
HYLTHUHNLKWLYI\ZPULZZZLNTLU[ YL]LU\L PU    HUK  YLZWLJ[P]LS` ;OL V[OLY ZLNTLU[Z VM
3VUN[LYTKLI[Z 68,421,487 433,209 596,589 – 6,764,380 (3,646,209) 72,569,456
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Eliminations, (In Thousands)
Distilled Property Adjustments :LNTLU[YL]LU\L!
Banking Spirits Beverage Tobacco Development and Others Total
 ,_[LYUHSJ\Z[VTLYZ 7 7 7 7– 7  7– 7  
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*VZ[VMNVVKZZVSKHUKZLY]PJLZ     –    
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56,865,508 19,279,195 15,930,291 – 3,132,431 (963,577) 94,243,848
,X\P[`PUUL[LHYUPUNZSVZZVM
*VZ[VMNVVKZZVSKHUKZLY]PJLZ 19,143,606 16,068,978 11,643,204 – 1,107,876 (1,161,096) 46,802,568 HZZVJPH[LZHUKQVPU[]LU[\YLZ  –    –     
.YVZZWYVÄ[ 37,721,902 3,210,217 4,287,087 – 2,024,555 197,519 47,441,280           
,X\P[`PUUL[LHYUPUNZSVZZVM :LSSPUNL_WLUZLZ –    –  – 
HZZVJPH[LZHUKQVPU[]LU[\YLZ (97,608) – (725,985) 15,437,243 – 199,601 14,813,251
.LULYHSHUKHKTPUPZ[YH[P]L
37,624,294 3,210,2 17 3,561,102 15,437,243 2,024,555 397,120 62,254,531 L_WLUZLZ           
:LSSPUNL_WLUZLZ – 1,561,758 1,338,050 – 111,616 – 3,011,424 6WLYH[PUNPUJVTL         
.LULYHSHUKHKTPUPZ[YH[P]L 29,627,829 661,940 1,248,334 205,045 807,684 169,898 32,720,730 -VYLPNUL_JOHUNLNHPUZUL[        
L_WLUZLZ
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6WLYH[PUNPUJVTL 7,996,465 986,519 974,718 15,232,198 1,105,255 227,222 26,522,377
-PUHUJLJVZ[Z –    –     
-VYLPNUL_JOHUNLNHPUZ- net 1,105,918 1,599 6,064 (51,889) (2,228) (9,484) 1,049,980
6[OLYZUL[        
-PUHUJLPUJVTL  Ě 1,060 27,006 369,459 105,948 (357,220) 146,253
0UJVTLILMVYLPUJVTL[H_        
-PUHUJLJVZ[Z  Ě (98,948) (166,018)  Ě (364,340) 178,465 (450,841)
7YV]PZPVUMVYPUJVTL[H_           
6[OLYZ- net 3,306,872 (9,900) 96,036 150,900 434,107 17,287 3,995,302
:LNTLU[WYVÄ[ 7  7   7  7  7 7 7
0UJVTLILMVYLPUJVTL[H_ 12,409,255 880,330 937,806 15,700,668 1,278,742 56,270 31,263,071
7YV]PZPVUMVYPUJVTL[H_ 2,470,986 204,549 539,567 98,530 378,358 5,324 3,697,314 :LNTLU[WYVÄ[H[[YPI\[HISL[V!
:LNTLU[WYVÄ[ P9,938,269 P675,781 P398,239 P15,602,138 P900,384 P50,946 P27,565,757 ,X\P[`OVSKLYZVM[OL*VTWHU` 7  7   7 7  7 7 7 
5VUJVU[YVSSPUNPU[LYLZ[Z      – –  
:LNTLU[WYVÄ[H[[YPI\[HISL[V!
 ,X\P[`OVSKLYZVM[OL*VTWHU` P9,858,543 P666,507 P399,380 P15,602,138 P900,384 (P4,309,428) P23,117,524 +LWYLJPH[PVUHUKHTVY[PaH[PVU
L_WLUZL        
 5VUJVU[YVSSPUNPU[LYLZ[Z 79,726 9,274 (1,141) – – 4,360,374 4,448,233
+LWYLJPH[PVUHUKHTVY[PaH[PVU
L_WLUZL 2,660,409 575,294 1,546,624 38,220 386,300 28,971 5,235,818

84 LT G R O U P, I N C . 2019 ANNUAL REPORT 85

 6[OLYÄUHUJPHSPUMVYTH[PVUVM[OLVWLYH[PUNZLNTLU[ZHZVM+LJLTILYPZHZMVSSV^Z! 6[OLYÄUHUJPHSPUMVYTH[PVUVM[OLVWLYH[PUNZLNTLU[ZHZVM+LJLTILYPZHZMVSSV^Z!

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Investments in associates and
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 ,X\P[`OVSKLYZVM[OL*VTWHU`         
 5VUJVU[YVSSPUNPU[LYLZ[Z     – –  
 5VUJVU[YVSSPUNPU[LYLZ[Z     – –    
(KKP[PVUZ[VUVUJ\YYLU[HZZL[Z!
(KKP[PVUZ[VUVUJ\YYLU[HZZL[Z!
 7YVWLY[`WSHU[HUKLX\PWTLU[         
 7YVWLY[`WSHU[HUKLX\PWTLU[         
Investment properties  – –    – 
Investment properties  – –   – 
:OVY[[LYTKLI[Z –   – –  
:OVY[[LYTKLI[Z –   – –  
3VUN[LYTKLI[Z  – – –     
3VUN[LYTKLI[Z – – – –     

-VY[OL`LHYLUKLK+LJLTILYHZYLZ[H[LK5V[L!

5. *HZOHUK*HZO,X\P]HSLU[Z 6. -PUHUJPHS(ZZL[ZH[-HPY=HS\L[OYV\NO7YVÄ[VY3VZZ
 ,SPTPUH[PVUZ

7YVWLY[`  (KQ\Z[TLU[Z *HZOHUKJHZOLX\P]HSLU[ZJVUZPZ[VM! -PUHUJPHSHZZL[ZH[MHPY]HS\L[OYV\NOWYVÄ[VYSVZZJVUZPZ[VM!
 )HURPUN Distilled Spirits Beverage Tobacco Development  HUK6[OLYZ Total
(In Thousands)
 
:LNTLU[YL]LU\L!  (Z9LZ[H[LK  (Z9LZ[H[LK
,_[LYUHSJ\Z[VTLYZ 7 7  7   7– 7 7– 7 2019  5V[L 2019  5V[L
0U[LYZLNTLU[     – –  – (In Thousands) (In Thousands)
*HZOHUKV[OLYJHZOP[LTZ P33,823,608 7   .V]LYUTLU[ZLJ\YP[PLZ P8,503,822 7
      –   
*HZOLX\P]HSLU[Z! 7YP]H[LKLI[ZLJ\YP[PLZ 3,130,156 
*VZ[VMNVVKZZVSKHUKZLY]PJLZ      –     
+\LMYVT)HUNRV:LU[YHSUN ,X\P[`ZLJ\YP[PLZ 1,455,435 
.YVZZWYVÄ[     –    7PSPWPUHZ):7 105,981,801  +LYP]H[P]LHZZL[Z5V[LZHUK 373,040 
,X\P[`PUUL[LHYUPUNZSVZZVM +\LMYVTV[OLYIHURZ 17,758,143  <UP[PU]LZ[TLU[[Y\Z[M\UK<0;- 6,927  
HZZVJPH[LZHUKQVPU[]LU[\YLZ   –    –    0U[LYIHURSVHUZYLJLP]HISL 24,831,816  P13,469,380 7
           :LJ\YP[PLZOLSK\UKLY
agreements to resell 2,517,764  H (ZVM+LJLTILY HUK\UYLHSPaLKSVZZVUNV]LYUTLU[
:LSSPUNL_WLUZLZ –    –   –   HUK WYP]H[L KLI[ ZLJ\YP[PLZ HTV\U[LK [V 7 TPSSPVU HUK
P184,913,132 7 
.LULYHSHUKHKTPUPZ[YH[P]L 7 TPSSPVU YLZWLJ[P]LS` 0U    HUK  [OL UVTPUHS
L_WLUZLZ            H *HZOHUKV[OLYJHZOP[LTZJVUZPZ[VMJHZOVUOHUKHUKPUIHURZHUK PU[LYLZ[ YH[LZ YHUNL MYVT  [V  MYVT  [V  HUK
ZOVY[[LYTPU]LZ[TLU[Z*HZOPUIHURZLHYUPU[LYLZ[H[IHURKLWVZP[ MYVT[VYLZWLJ[P]LS`MVY[OLNV]LYUTLU[ZLJ\YP[PLZHUK
6WLYH[PUNPUJVTL         
-VYLPNUL_JOHUNLNHPUZSVZZLZ
- net
-PUHUJLPUJVTL
-PUHUJLJVZ[Z
6[OLYZ- net
0UJVTLILMVYLPUJVTL[H_
7YV]PZPVUMVYPUJVTL[H_
:LNTLU[WYVÄ[
:LNTLU[WYVÄ[H[[YPI\[HISL[V!
,X\P[`OVSKLYZVM[OL*VTWHU`
5VUJVU[YVSSPUNPU[LYLZ[Z
+LWYLJPH[PVUHUKHTVY[PaH[PVU
L_WLUZL
YH[LZ*HZOLX\P]HSLU[ZYLWYLZLU[TVUL`THYRL[WSHJLTLU[ZTHKL MYVT  [V  MYVT  [V  HUK MYVT  [V 
MVY]HY`PUNWLYPVKZKLWLUKPUNVU[OLPTTLKPH[LJHZOYLX\PYLTLU[Z YLZWLJ[P]LS`MVY[OLWYP]H[LKLI[ZLJ\YP[PLZ
        VM[OL.YV\W
–        I ;OLJHYY`PUNHTV\U[VMLX\P[`ZLJ\YP[PLZPUJS\KLZ\UYLHSPaLKSVZZVM
I +\L MYVT ):7 PZ JVTWVZLK VM PU[LYLZ[ILHYPUN ZOVY[[LYT 7 TPSSPVU HUK 7  TPSSPVU HZ VM +LJLTILY    HUK 
–    –      YLZWLJ[P]LS`
WSHJLTLU[Z^P[O):7HUKHKLTHUKKLWVZP[HJJV\U[[VZ\WWVY[[OL
        YLN\SHYVWLYH[PVUZVM75)
            J 6U ]HYPV\Z KH[LZ PU  [OL .YV\W PU]LZ[LK PU 75) 0UZ[P[\[PVUHS
J 0U[LYLZ[LHYULKVUJHZOHUKV[OLYJHZOP[LTZHUKJHZOLX\P]HSLU[Z 4VUL`4HYRL[-\UK^OPJOPZHTVUL`THYRL[<0;-;OLPU]LZ[TLU[
            HYL WYLZLU[LK \UKLY ¸-PUHUJL PUJVTL¹ HUK ¸)HURPUN YL]LU\L¹ PZZ\IQLJ[[VHTPUPT\TOVSKPUNWLYPVKVMKH`Z4HYR[VTHYRL[
7 7 7 7 7 7 7 YLZWLJ[P]LS`ZLL5V[LZHUK NHPUZ VU ÄUHUJPHS HZZL[Z H[ -=;73 HTV\U[LK [V 7 TPSSPVU
7TPSSPVUHUK7 TPSSPVUPU HUKYLZWLJ[P]LS`
ZLL 5V[L   9LHSPaLK NHPUZ MYVT YLKLTW[PVU VM PU]LZ[TLU[
WYLZLU[LK \UKLY ÄUHUJL PUJVTL HTV\U[LK [V 7 TPSSPVU PU
7 7 7 7 7 7 7  7 TPSSPVUPUHUK7TPSSPVUPUZLL5V[L
  –     
         

86 LT G R O U P, I N C . 2019 ANNUAL REPORT 87

 (ZVM+LJLTILY HUK[OLMHPY]HS\LVMÄUHUJPHSHZZL[H[ I -PUHUJLSLHZLYLJLP]HISL KLUVTPUH[LKYLJLP]HISLZHUKMYVT[V PU MYVT
7. Financial Assets at FVTOCI and Financial Assets at Amortized Cost HTVY[PaLKJVZ[PU]LZ[TLU[ZPU[OLMVYTVMNV]LYUTLU[HUKWYP]H[LIVUKZ [VPUHUKMYVT [V PUMVYWLZVKLUVTPUH[LK
WSLKNLK [V M\SÄSS P[Z JVSSH[LYHS YLX\PYLTLU[Z ^P[O ZLJ\YP[PLZ ZVSK \UKLY (UHUHS`ZPZVM[OL.YV\W»ZÄUHUJLSLHZLYLJLP]HISLZHZVM+LJLTILY YLJLP]HISLZ
-PUHUJPHS(ZZL[ZH[-=;6*0 YLW\YJOHZL HNYLLTLU[Z [YHUZHJ[PVUZ ^P[O JV\U[LYWHY[PLZ HTV\U[LK [V PZWYLZLU[LKHZMVSSV^Z!
7IPSSPVUHUK7IPSSPVUYLZWLJ[P]LS`ZLL5V[L :HSLZ JVU[YHJ[ YLJLP]HISLZ ILHY Ä_LK PU[LYLZ[ YH[L WLY HUU\T YHUNPUN
;OPZHJJV\U[JVUZPZ[ZVM! MYVT  [V   [V  HUK  [V  PU  
2019 
HUKYLZWLJ[P]LS`
8. 3VHUZHUK9LJLP]HISLZ (In Thousands)
 .YVZZPU]LZ[TLU[PUÄUHUJLSLHZL ;YHKL9LJLP]HISLZ
 (Z9LZ[H[LK receivables
3VHUZHUKYLJLP]HISLZJVUZPZ[VM! ;YHKLYLJLP]HISLZJVUZPZ[VM!
2019  5V[L
 +\L^P[OPUVUL`LHY P1,260,542 7
(in thousands)
  +\LIL`VUKVUL`LHYI\[UV[  2019 
.V]LYUTLU[ZLJ\YP[PLZ5V[L P91,540,723 7    V]LYÄ]L`LHYZ 1,164,893 
 (Z9LZ[H[LK (In Thousands)
6[OLYKLI[ZLJ\YP[PLZ 30,390,001  2019  5V[L  +\LIL`VUKÄ]L`LHYZ  Ě 
,X\P[`ZLJ\YP[PLZ! *VUZ\TLYNVVKZ P13,899,237 7  
(In Thousands) 2,425,435   *VU[YHJ[YLJLP]HISLZ 1,374,425  
8\V[LK 4,174,897   -PUHUJLYLJLP]HISLZ5V[LZ P672,252,455 7   9LZPK\HS]HS\LVMSLHZLKLX\PWTLU[
<UX\V[LK 1,412,000   Lease receivables  Ě 
HUK  +\L^P[OPUVUL`LHY 304,898  
127,517,621  15,273,662 
Trade receivables 15,273,662   +\LIL`VUKVUL`LHYI\[UV[ 
5VUJ\YYLU[WVY[PVU (110,549,031)   (SSV^HUJLMVYJYLKP[SVZZLZKV\I[M\S
6[OLYYLJLP]HISLZ 3,401,409    V]LYÄ]L`LHYZ 349,380 
HJJV\U[Z (322,710) 
P16,968,590 7  690,927,526  654,278  
14,950,952  
;OL TV]LTLU[Z PU UL[ \UYLHSPaLK NHPU SVZZ YLJVNUPaLK PU V[OLY (SSV^HUJLMVYJYLKP[SVZZLZ (18,747,178)  ;V[HSÄUHUJLSLHZLYLJLP]HISL P3,079,713 7 
5VUJ\YYLU[WVY[PVUVMJVU[YHJ[
JVTWYLOLUZP]LPUJVTLMVSSV^! 672,180,348   
J 0U[LYLZ[PUJVTLVUSVHUZHUKYLJLP]HISLZJVUZPZ[ZVMZLL5V[L! receivables (674,304)  
5VUJ\YYLU[WVY[PVU (411,253,754) 
P14,276,648 7
H -VY [OL `LHYZ LUKLK +LJLTILY     HUK  [OL P260,926,594 7
UVTPUHSPU[LYLZ[YH[LZVMNV]LYUTLU[ZLJ\YP[PLZYHUNLMYVT[V  H ;YHKL YLJLP]HISLZ VU JVUZ\TLY NVVKZ WLY[HPU [V YLJLP]HISLZ MYVT
[VHUK[VYLZWLJ[P]LS` -PUHUJL9LJLP]HISLZ (Z9LZ[H[LK ]HYPV\Z J\Z[VTLYZ VM KPZ[PSSLK ZWPYP[Z IL]LYHNLZ HUK [VIHJJV
2019  5V[L ZLNTLU[Z ^OPJO HYL UVUPU[LYLZ[ILHYPUN HUK NLULYHSS` OH]L  [V
I -VY [OL `LHYZ LUKLK +LJLTILY     HUK  [OL 9LJLP]HISLMYVT KH`Z»[LYTZ

UVTPUHSPU[LYLZ[YH[LZVMWYP]H[LKLI[ZLJ\YP[PLZYHUNLMYVT[V J\Z[VTLYZHUKZHSLZ
 (Z9LZ[H[LK
 [VHUK[VYLZWLJ[P]LS` contract receivables P39,618,639 7   7 I *VU[YHJ[Z YLJLP]HISLZ VM [OL WYVWLY[` KL]LSVWTLU[ ZLNTLU[
2019  5V[L
<UX\V[LKKLI[ZLJ\YP[PLZ – –  JVUZPZ[ VM YL]LU\LZ YLJVNUPaLK [V KH[L IHZLK VU WLYJLU[HNL VM
J (ZVM+LJLTILY HUK[OLMHPY]HS\LVMÄUHUJPHSHZZL[Z (In Thousands)
P39,618,639 7   7 JVTWSL[PVU SLZZ JVSSLJ[PVUZ YLJLP]LK MYVT [OL YLZWLJ[P]L I\`LYZ
H[-=;6*0PU[OLMVYTVMNV]LYUTLU[HUKWYP]H[LIVUKZWSLKNLK[V 9LJLP]HISLZMYVTJ\Z[VTLYZ! 0U[LYLZ[ PUJVTL MYVT PU[LYLZ[ILHYPUN JVU[YHJ[Z YLJLP]HISLZ
M\SÄSSP[ZJVSSH[LYHSYLX\PYLTLU[Z^P[OZLJ\YP[PLZZVSK\UKLYYLW\YJOHZL  3VHUZHUKKPZJV\U[Z P616,615,375 7  (Z VM +LJLTILY    HUK   HUK  YLZWLJ[P]LS` HTV\U[LK[VUPS7TPSSPVUHUK7TPSSPVUPU HUK
HNYLLTLU[[YHUZHJ[PVUZ^P[OMVYLPNUIHURZHTV\U[LK[V7IPSSPVUHUK  *\Z[VTLYZ»SPHIPSP[PLZVU VM [OL [V[HS YLJLP]HISL MYVT J\Z[VTLYZ VM [OL .YV\W ^LYL Z\IQLJ[ [V YLZWLJ[P]LS`ZLL5V[L
7IPSSPVUYLZWLJ[P]LS`ZLL5V[L;OLJV\U[LYWHY[PLZOH]LHU HJJLW[HUJLZSL[[LYZVM PU[LYLZ[ YLWYPJPUN (Z VM +LJLTILY    HUK   HUK
VISPNH[PVU[VYL[\YU[OLZLJ\YP[PLZ[V75)VUJL[OLVISPNH[PVUZOH]L  JYLKP[HUK[Y\Z[YLJLPW[Z 10,185,304   YLZWLJ[P]LS`VM[OL[V[HSYLJLP]HISLZMYVTJ\Z[VTLYZVM[OL7HYLU[ 6[OLY9LJLP]HISLZ
ILLUZL[[SLK0UJHZLVMKLMH\S[[OLMVYLPNUIHURZOH]L[OLYPNO[[V *VTWHU`^LYLZ\IQLJ[[VPU[LYLZ[YLWYPJPUN9LTHPUPUNYLJLP]HISLZJHYY` 6[OLY YLJLP]HISLZ HYL K\L HUK KLTHUKHISL HUK PUJS\KL HJJY\LK
 )PSSZW\YJOHZLK5V[L 1,945,838 
OVSK [OL ZLJ\YP[PLZ HUK ZLSS [OLT HZ ZL[[SLTLU[ VM [OL YLW\YJOHZL HUU\HSÄ_LKPU[LYLZ[YH[LZYHUNPUNMYVT[V PU MYVT interest receivable pertaining to interest earned on cash and cash
HNYLLTLU[  *YLKP[JHYKYLJLP]HISLZ 15,869,946 
[V PUHUKMYVT[VPUMVYMVYLPNUJ\YYLUJ` LX\P]HSLU[ZHUK\UWHPK\[PSP[`JOHYNLZ[V[LUHU[ZHUKYLJLP]HISLZMYVT
 -PUHUJLSLHZLYLJLP]HISLZ 3,079,713   ZHSLVM]HYPV\ZHZZL[Z
K 6[OLYKLI[ZLJ\YP[PLZJVUZPZ[VMUV[LZPZZ\LKI`WYP]H[LLU[P[PLZ 647,696,176 
6[OLYYLJLP]HISLZ!
L (ZVM+LJLTILY HUKLќLJ[P]LPU[LYLZ[YH[LZMVY[OL
ÄUHUJPHSHZZL[ZH[-=;6*0PU]LZ[TLU[ZMVSSV^!  (JJV\U[ZYLJLP]HISL 9,932,268 
 (JJY\LKPU[LYLZ[YLJLP]HISL 7,814,819   4V]LTLU[ZVM(SSV^HUJLMVY*YLKP[3VZZLZ
Sales contract receivables 6,849,281   +L[HPSZHUKTV]LTLU[ZVMHSSV^HUJLMVYJYLKP[SVZZLZHZMVSSV^Z!
2019 
 4PZJLSSHULV\Z 411,102 
7LZVKLUVTPUH[LK 3.00% to 7.00% [V
25,007,470  December 31, 2019
-VYLPNUJ\YYLUJ`KLUVTPUH[LK 0.18% to 7.25% [V
672,703,646  Finance Trade Other
;OL UL[ \UYLHSPaLK NHPUZ VU ÄUHUJPHS HZZL[Z H[ -=;6*0 HTV\U[LK [V <ULHYULKHUKV[OLYKLMLYYLK Receivables Receivables Receivables Total
7 IPSSPVUMVY[OL.YV\WUL[VMKLMLYYLKPUJVTL[H_LќLJ[HTV\U[PUN income (451,191)  (In Thousands)
[VTPSSPVUHUK7IPSSPVUMVY[OL.YV\WUL[VMKLMLYYLKPUJVTL 672,252,455    )HSHUJLH[ILNPUUPUNVM`LHY P17,309,069 P453,211 P11,240 P17,773,520
[H_LќLJ[HTV\U[PUN[V7TPSSPVUPU HUKYLZWLJ[P]LS` 7YV]PZPVUZK\YPUN[OL`LHY5V[L 2,448,429 11,015 – 2,459,444
(SSV^HUJLMVYJYLKP[SVZZLZ (18,413,228)   
-PUHUJPHS(ZZL[ZH[(TVY[PaLK*VZ[ 653,839,227   9L]LYZHSZK\YPUN[OL`LHY  Ě (142,017) – (142,017)
5VUJ\YYLU[WVY[PVU (410,579,450)  (JJV\U[ZJOHYNLKVќ[YHUZMLYZHUKV[OLYZ (1,334,270) (501) – (1,343,769)
;OPZHJJV\U[JVUZPZ[ZVM! P243,259,777 7   )HSHUJLH[LUKVM`LHY P18,413,228 P322,708 P11,240 P18,747,178

H <UX\V[LKKLI[ZLJ\YP[PLZ +LJLTILY(Z9LZ[H[LK5V[L


 (Z9LZ[H[LK  -PUHUJL Trade  6[OLY
<UX\V[LK KLI[ PUZ[Y\TLU[Z PUJS\KL [OL aLYVJV\WVU UV[LZ
2019  5V[L  9LJLP]HISLZ  9LJLP]HISLZ  9LJLP]HISLZ Total
YLJLP]LK I` 75) MYVT :7= *VTWHUPLZ VU 6J[VILY   H[
.V]LYUTLU[ZLJ\YP[PLZ5V[L  P55,594,860 7 [OL WYPUJPWHS HTV\U[ VM 7 TPSSPVU ;YHUJOL ( 5V[L WH`HISL (In Thousands)
7YP]H[LKLI[ZLJ\YP[PLZ5V[L  48,655,093    PUÄ]L`LHYZHUKH[[OLWYPUJPWHSHTV\U[VM7IPSSPVU;YHUJOL) )HSHUJLH[ILNPUUPUNVM`LHY 7 7  7 7
104,249,953  5V[LWH`HISLPULPNO[`LHYZPUL_JOHUNLMVY[OLV\[Z[HUKPUNSVHUZ 7YV]PZPVUZK\YPUN[OL`LHY5V[L    – 
3LZZHSSV^HUJLMVYL_WLJ[LKJYLKP[ YLJLP]HISL MYVT 5H[PVUHS :[LLS *VYWVYH[PVU 5:* VM 7 IPSSPVU (JJV\U[ZJOHYNLKVќ[YHUZMLYZHUKV[OLYZ   –  
SVZZLZ5V[L (3,785,196)   ;OL UV[LZ HYL ZLJ\YLK I` H ÄYZ[ YHURPUN TVY[NHNL HUK ZLJ\YP[`
PU[LYLZ[ V]LY [OL 5:* 7SHU[ (ZZL[Z  0U  75) VI[HPULK )HSHUJLH[LUKVM`LHY 7  7 7 7
P100,464,757 7 HKKP[PVUHSUVUYLZPKLU[\UX\V[LKKLI[PU]LZ[TLU[ZHTV\U[PUN[V
0U HUKTV]LTLU[ZPUHSSV^HUJLMVYL_WLJ[LKJYLKP[SVZZLZ 7 IPSSPVU  ;OLZL PU]LZ[TLU[Z HYL aLYVYH[LK IVUKZ PZZ\LK I`
VU PU]LZ[TLU[ ZLJ\YP[PLZ H[ HTVY[PaLK JVZ[ HYL TVZ[S` KYP]LU I` UL^S` *OPULZLÄUHUJPHSPUZ[P[\[PVUZ(ZVM+LJLTILY HUK
VYPNPUH[LK HZZL[Z ^OPJO YLTHPULK PU :[HNL  HUK HTVY[PaH[PVU VM [OL [OLUV[LZHYLJHYYPLKH[[OLPYYLJV]LYHISL]HS\LZ
JVYYLZWVUKPUNNYVZZÄN\YLZ

6U ]HYPV\Z KH[LZ PU (WYPS   [OL 7HYLU[ *VTWHU` ZVSK H WVY[PVU
VM P[Z PU]LZ[TLU[ ZLJ\YP[PLZ H[ HTVY[PaLK JVZ[ ^P[O H JHYY`PUN ]HS\L VM
7  TPSSPVU HUK JVYYLZWVUKPUN NHPU VM 7 TPSSPVU HZ WHY[ VM P[Z YPZR
THUHNLTLU[WVSPJPLZ

88 LT G R O U P, I N C . 2019 ANNUAL REPORT 89

 Investment in PMFTC :\TTHYPaLK ÄUHUJPHS PUMVYTH[PVU VM 74-;* IHZLK VU P[Z ÄUHUJPHS
9. 0U]LU[VYPLZ 10. Other Current Assets +L[HPSZVMPU]LZ[TLU[PU74-;*HYLHZMVSSV^Z! Z[H[LTLU[Z HZ H[ +LJLTILY    HUK  HUK YLJVUJPSPH[PVU
^P[O [OL JHYY`PUN HTV\U[ VM [OL PU]LZ[TLU[ PU JVUZVSPKH[LK ÄUHUJPHS
0U]LU[VYPLZJVUZPZ[VM! Z[H[LTLU[ZHYLZL[V\[ILSV^!
2019  2019 
(In Thousands) (In Thousands)
2019  *YLKP[HISL^P[OOVSKPUN[H_LZ*>; P4,488,682 7  (JX\PZP[PVUJVZ[ P13,483,541 7 2019  
(In Thousands) (K]HUJLZ[VZ\WWSPLYZ 1,629,372  (JJ\T\SH[LKLX\P[`PUUL[LHYUPUNZ! (In Thousands)
$W&RVW 0UW\[=(; 1,519,068    )HSHUJLH[ILNPUUPUNVM`LHY (908,866)     9L]LU\L P170,872,448 7  7  
 *VUZ\TLYNVVKZ! 7YLWHPKL_WLUZLZ 1,399,984   ,X\P[`PUUL[LHYUPUNZ 15,396,195  *VZ[ZHUKL_WLUZLZ (126,819,405)  
  (SJVOVS P3,011,993 7 +LMLYYLKYLPUZ\YHUJLWYLTP\TZ 1,135,113    *HZOKP]PKLUKZ5V[L (9,778,726)  Income before income
Beverage 2,831,328  [H_ 44,053,043   
Deferred rent 244,206  )HSHUJLH[LUKVM`LHY 4,708,603  
5,843,321  7YV]PZPVUMVYPUJVTL
,_JPZL[H_5V[L 185,043  (JJ\T\SH[LKZOHYLPUV[OLY [H_ (13,252,072)   
 9LHSLZ[H[LPU]LU[VYPLZ! :[H[PVULYPLZVѝJLZ\WWSPLZHUK comprehensive income 226,476 
  *VUKVTPUP\THUKYLZPKLU[PHS 5L[PUJVTL 30,800,971    
stamps on hand 86,843  P18,418,620 7 
  \UP[ZMVYZHSL 457,731  6[OLYJVTWYLOLUZP]L
4PZJLSSHULV\ZJHZOHUKV[OLYJHZO income (35,854)  
  3HUKOLSKMVYM\[\YL  items 86,542  6U -LIY\HY`   -;* HUK 74740 JVTIPULK [OLPY YLZWLJ[P]L
development 217,542  KVTLZ[PJ I\ZPULZZ VWLYH[PVUZ I` [YHUZMLYYPUN ZLSLJ[LK HZZL[Z Total comprehensive
:LJ\YP[`KLWVZP[ 44,132   HUK SPHIPSP[PLZ [V 74-;* PU HJJVYKHUJL ^P[O [OL WYV]PZPVUZ VM [OL income P30,765,117 7  7
  :\IKP]PZPVUSHUK\UKLY  Deferred charges 3,134 
development 3,927,357  (ZZL[ 7\YJOHZL (NYLLTLU[ (7( IL[^LLU -;* HUK P[Z YLSH[LK WHY[PLZ .YV\W»ZZOHYLVM[V[HS
6[OLYZ 557,146  HUK 74740 ;OL LZ[HISPZOTLU[ VM 74-;* HSSV^Z -;* HUK 74740 comprehensive
4,602,630  [V ILULÄ[ MYVT [OLPY YLZWLJ[P]L JVTWSLTLU[HY` IYHUK WVY[MVSPVZ HZ
P11,379,265 7  PUJVTLMVY[OL`LHY P16,305,060 7 7 
 -\LSTH[LYPHSZHUKZ\WWSPLZ 915,984   ^LSS HZ JVZ[ Z`ULYNPLZ MYVT [OL YLZ\S[PUN PU[LNYH[PVU VM THU\MHJ[\YPUN
11,361,935   H *>;ZWLY[HPUTHPUS`[V[OLHTV\U[Z^P[OOLSKMYVTPUJVTLKLYP]LK KPZ[YPI\[PVU HUK WYVJ\YLTLU[ HUK [OL M\Y[OLY KL]LSVWTLU[ HUK Investment in VMC
At NRV - 4H[LYPHSZHUKZ\WWSPLZ 834,936   MYVTZHSLVMJVUZ\TLYNVVKZHUKYLHSLZ[H[LPU]LU[VYPLZ;OL*>;Z HK]HUJLTLU[ VM [VIHJJV PUK\Z[Y` NYV^PUN PU [OL 7OPSPWWPULZ +L[HPSZVMPU]LZ[TLU[PU=4*HYLHZMVSSV^Z!
JHUILHWWSPLKHNHPUZ[HU`PUJVTL[H_SPHIPSP[`VMHJVTWHU`PU[OL
P12,196,871 7
.YV\W[V^OPJO[OL*>;ZYLSH[L -;*HUK74740OVSKLX\HSLJVUVTPJPU[LYLZ[PU74-;*:PUJL74740
2019 
(SSV^HUJL MVY PU]LU[VY` VIZVSLZJLUJL VU TH[LYPHSZ HUK Z\WWSPLZ OHZTHQVYP[`VM[OLTLTILYZVM[OL)6+P[OHZJVU[YVSV]LY74-;*-;*
I (K]HUJLZ [V Z\WWSPLYZ WLY[HPU [V KLWVZP[Z THKL MVY YH^ TH[LYPHS JVUZPKLYZ74-;*HZHUHZZVJPH[L (In Thousands)
HTV\U[LK [V 7  TPSSPVU HUK 7 TPSSPVU HZ VM +LJLTILY    W\YJOHZLZHUKHYLHWWSPLK\WVUKLSP]LY`VM[OLYLSH[LKPU]LU[VYPLZ
HUKYLZWLJ[P]LS` (JX\PZP[PVUJVZ[!
J ,_JPZL[H_WLY[HPUZ[VHK]HUJL[H_WH`TLU[Z[V[OL)\YLH\VM0U[LYUHS (Z H YLZ\S[ VM -;*»Z KP]LZ[TLU[ VM P[Z JPNHYL[[L I\ZPULZZ [V 74-;* )HSHUJLH[ILNPUUPUNVM`LHY P1,459,768 7 
H *VTWVULU[ZVM[OLJVUZ\TLYNVVKZPU]LU[VYPLZHYLHZMVSSV^Z! 9L]LU\L)09VUZHSLVMHSJVOVSPJIL]LYHNLZZLL5V[L -;* PUP[PHSS` YLJVNUPaLK [OL PU]LZ[TLU[ HTV\U[PUN [V 7 IPSSPVU (KKP[PVUZ – –
YLWYLZLU[PUN[OLMHPY]HS\LVM[OLUL[HZZL[ZJVU[YPI\[LKI`-;*UL[VM
K 7YLWHPK L_WLUZLZ PUJS\KL WYLWHPK PTWVY[H[PVU JOHYNLZ HTV\U[PUN )HSHUJLH[LUKVM`LHY 1,459,768  
\UYLHSPaLKNHPUVM7IPSSPVU;OL[YHUZHJ[PVU^HZHJJV\U[LKMVYZPTPSHY
2019  to 7 TPSSPVU HUK 7 TPSSPVU HZ VM +LJLTILY    [V H JVU[YPI\[PVU PU H QVPU[ ]LU[\YL IHZLK VU :[HUKPUN 0U[LYWYL[H[PVUZ (JJ\T\SH[LKLX\P[`PUUL[LHYUPUNZ!
(In Thousands) HUKYLZWLJ[P]LS`7YLWHPKPTWVY[H[PVUJOHYNLZWLY[HPU[V[OL *VTTP[[LL :0* 0U[LYWYL[H[PVU  Jointly Controlled Entities-Non-  )HSHUJLH[ILNPUUPUNVM`LHY 1,139,120   
W\YJOHZLZVMYH^TH[LYPHSZI`[OLKPZ[PSSLKZWPYP[Z Monetary Contributions by Venturers ^OLYL -;* YLJVNUPaLK VUS`
-PUPZOLKNVVKZ P1,046,445 7  ,X\P[`PUUL[LHYUPUNZ 251,171  
>VYRPUWYVJLZZ 1,816,060  L 6[OLYZPUJS\KLPU[LYVѝJLÅVH[ZHUKHK]HUJLZ[VJVU[YHJ[VYZ [OH[ WVY[PVU VM [OL NHPU ^OPJO PZ H[[YPI\[HISL [V [OL PU[LYLZ[Z VM 74740  ,_JLZZVMMHPY]HS\LVMUL[HZZL[Z
HTV\U[PUN[V7IPSSPVUPU;OLWVY[PVUH[[YPI\[HISL[V-;*PZILPUN of associate over cost of
9H^TH[LYPHSZ 2,980,816   YLJVNUPaLKVUJL[OLYLSH[LKHZZL[ZHUKSPHIPSP[PLZHYLYLHSPaLKKPZWVZLK
P5,843,321 7 investment – –
11. 0U]LZ[TLU[PU(ZZVJPH[LZHUK1VPU[=LU[\YLZ VY ZL[[SLK  -;* YLJVNUPaLK H NHPU VM HIV\[ 7  TPSSPVU LHJO `LHY
Z[HY[PUN\U[PSHUKHUV\[YPNO[SVZZVM7IPSSPVUPU^OPJO )HSHUJLH[LUKVM`LHY 1,390,291  
*VZ[VMJVUZ\TLYNVVKZPU]LU[VYPLZYLJVNUPaLKHZL_WLUZLZ\UKLYJVZ[ :OHYLPUYLTLHZ\YLTLU[NHPUVU
0U]LZ[TLU[ZPU(ZZVJPH[LZHUK1VPU[=LU[\YLZ HYLPUJS\KLKPU[OL¸,X\P[`PUUL[LHYUPUNZ¹PU[OLZLWLYPVKZ-\Y[OLYHZ
VMNVVKZZVSKHTV\U[LK[V7IPSSPVU7IPSSPVUHUK7IPSSPVU KLÄULKILULÄ[WSHUZ (1,015)   
;OL .YV\W OHZ [OL WV^LY [V WHY[PJPWH[L PU [OL ÄUHUJPHS HUK VWLYH[PUN H YLZ\S[ VM [OL [YHUZMLY VM ZLSLJ[LK HZZL[Z HUK SPHIPSP[PLZ WVY[PVU VM [OL
PU HUKYLZWLJ[P]LS`ZLL5V[L
WVSPJ` KLJPZPVUZ VM 74-;* =PJ[VYPHZ 4PSSPUN *VTWHU` 0UJ =4* YL]HS\H[PVUPUJYLTLU[VU-;*»ZWYVWLY[`WSHU[HUKLX\PWTLU[HTV\U[PUN Balance of convertible notes 58,460 
() /70 HUK (7300  ;OL .YV\W HSZV OHZ  PU[LYLZ[ PU ()0 7HZJ\HS to 7 IPSSPVU^HZ[YHUZMLYYLK[VYL[HPULKLHYUPUNZ P2,907,504 7
I 4V]LTLU[ZPUYLHSLZ[H[LPU]LU[VYPLZHYLZL[V\[ILSV^!
/VSKPUNZ7YP]H[L3PTP[LK()07HZJ\HS/VSKPUNZHUK(30,[VU7YVWLY[`
+L]LSVWTLU[*VYWVYH[PVU(,7+*^OPJOHYLQVPU[S`JVU[YVSSLKLU[P[PLZ (SZVHZHYLZ\S[VM[OL[YHUZHJ[PVU-;*OHZVI[HPULK[OLYPNO[[VZLSSW\[ 6U-LIY\HY`=4*HWWYV]LK[OLHJX\PZP[PVUVMP[ZV^UZOHYLZ
2019  VW[PVUP[ZPU[LYLZ[PU74-;*[V74740L_JLW[PUJLY[HPUJPYJ\TZ[HUJLZ ;OL ZHSL HNYLLTLU[ OHK ILLU L_LJ\[LK VU -LIY\HY`   HUK
(In Thousands) K\YPUN [OL WLYPVK MYVT -LIY\HY`   [OYV\NO -LIY\HY`   SLK[V[OLHJX\PZP[PVUVMTPSSPVU[YLHZ\Y`ZOHYLZ;OPZYLZ\S[LKPU
6^ULYZOPW (TV\U[ H[ HU HNYLLK\WVU ]HS\L  6U +LJLTILY   [OL )6+ VM 3;. HU PUJYLHZL PU [OL 7HYLU[ *VTWHU`»Z WLYJLU[HNL VM V^ULYZOPW MYVT
)HSHUJLH[ILNPUUPUNVM`LHY P5,268,060 7
2019  2019  HWWYV]LK[OL^HP]LYI`-;*VMP[ZYPNO[Z\UKLY[OL,_P[9PNO[Z(NYLLTLU[ [V6U[OLZHTLKH[L[OL.YV\W[OYV\NO-;*HJX\PYLK
,ќLJ[VMJOHUNLPUHJJV\U[PUNWVSPJ` LU[LYLK PU[V ^P[O 740 HUK JVUÄYTLK [OL L_LJ\[PVU VM [OL ;LYTPUH[PVU HKKP[PVUHSZOHYLZVMZ[VJRVM=4*HTV\U[PUN[V7TPSSPVUYLZ\S[PUN
(In Thousands)
VUIVYYV^PUNJVZ[Z5V[L (135,424)  ò (NYLLTLU[ [VHUPUJYLHZLPU[OL.YV\W»ZLќLJ[P]LV^ULYZOPWPU=4*[V
(ZZVJPH[LZ!
*VUZ[Y\J[PVUKL]LSVWTLU[JVZ[Z
PUJ\YYLK 262,303    74-;* 49.6%   P18,418,620 7  :\TTHYPaLK ÄUHUJPHS PUMVYTH[PVU VM 74-;* IHZLK VU P[Z ÄUHUJPHS 6U 4H`   WVY[PVUZ VM [OL JVU]LY[PISL UV[LZ HTV\U[PUN [V
;YHUZMLYMYVT[VWYVWLY[`WSHU[  =4* 30.9%   2,898,208  Z[H[LTLU[ZHZVM+LJLTILYHYLZL[V\[ILSV^! 7 TPSSPVU^LYLJVU]LY[LK[VZOHYLZVMZ[VJRVM=4*YLZ\S[PUN[V
HUKLX\PWTLU[HUKPU]LZ[TLU[  (7300 44.0%  2,605,473  HU PUJYLHZL PU [OL .YV\W»Z WLYJLU[HNL VM V^ULYZOPW [V   HZ VM
WYVWLY[PLZ5V[LZHUK 2,038    ()/70 50.0%  Ě   +LJLTILY
2019 
Disposals and others (794,347)   1VPU[=LU[\YLZ! (In Thousands) ;OLZ\TTHYPaLKÄUHUJPHSPUMVYTH[PVUVM=4*HZVM5V]LTILY 
)HSHUJLH[LUKVM`LHY P4,602,630 7  ()07HZJ\HS/VSKPUNZ 50.0%  21,171  *\YYLU[HZZL[Z P47,037,934 7   HUKHUKYLJVUJPSPH[PVU^P[O[OLJHYY`PUNHTV\U[VM[OLPU]LZ[TLU[
 (,7+* 50.0%  3,310,806  5VUJ\YYLU[HZZL[Z 29,206,664  PUJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZHYLZL[V\[ILSV^!
P27,254,278 7 *\YYLU[SPHIPSP[PLZ 13,449,004 
5VUJ\YYLU[SPHIPSP[PLZ 6,127,518  2019 
,X\P[` 56,668,076  (In Thousands)
,X\P[`PU[LYLZ[VM[OL7HYLU[*VTWHU` 49.6%    *\YYLU[HZZL[Z P2,919,787 7
:OHYLPUUL[HZZL[ZVM[OLHJX\PYLL 28,107,366   5VUJ\YYLU[HZZL[Z 6,588,422  
(JX\PZP[PVUYLSH[LKMHPY]HS\LHKQ\Z[TLU[Z *\YYLU[SPHIPSP[PLZ 1,246,250  
HKQ\Z[TLU[ZYLSH[PUN[VKPќLYLUJLZPU 5VUJ\YYLU[SPHIPSP[PLZ 1,005,420 
HJJV\U[PUNWVSPJPLZHUKV[OLYZ (9,688,746) 
,X\P[` 7,256,539  
*HYY`PUN]HS\LVMPU]LZ[TLU[ P18,418,620 7 
,X\P[`PU[LYLZ[VM[OL7HYLU[
*VTWHU` 30.9%  
:OHYLPUUL[HZZL[ZVM[OLHJX\PYLL 2,242,271  
-HPY]HS\LHKQ\Z[TLU[ZHUKV[OLYZ 665,233  
*HYY`PUN]HS\LVMPU]LZ[TLU[ P2,907,504 7

90 LT G R O U P, I N C . 2019 ANNUAL REPORT 91

 :\TTHYPaLKZ[H[LTLU[ZVMJVTWYLOLUZP]LPUJVTLVM=4*MVY[OL`LHYZ :\TTHYPaLK Z[H[LTLU[Z VM JVTWYLOLUZP]L PUJVTL VM () /70 MVY [OL :\TTHYPaLKÄUHUJPHSPUMVYTH[PVUVM(7300HZVM+LJLTILY HUK ;OL Z\TTHYPaLK Z[H[LTLU[Z VM JVTWYLOLUZP]L PUJVTL VM ()0 7HZJ\HS
LUKLK5V]LTILYHYLHZMVSSV^Z! `LHYZLUKLK+LJLTILYHYLHZMVSSV^Z! MVSSV^Z! /VSKPUNZMVY[OL`LHYZLUKLK+LJLTILYHYLHZMVSSV^Z!

2019   2019  2019  2019 

(In Thousands) (In Thousands) (In thousands) (In Thousands)
9L]LU\L P6,343,290 7 7   9L]LU\L P2,913,073 7  *\YYLU[HZZL[Z P1,287,221 7  9L]LU\L P353,909 7
*VZ[ZHUKL_WLUZLZ (5,296,131)     *VZ[ZHUKL_WLUZLZ (4,346,353)  5VUJ\YYLU[HZZL[Z 35,866,453  *VZ[ZHUKL_WLUZLZ (364,563) 
0UJVTLILMVYLPUJVTL[H_ 1,047,159   3VZZILMVYLPUJVTL[H_ 1,433,280  *\YYLU[SPHIPSP[PLZ 1,130,146    3VZZILMVYLPUJVTL[H_ (10,654) 
7YV]PZPVUMVYPUJVTL[H_ (234,308)    7YV]PZPVUMVYPUJVTL[H_ – – 5VUJ\YYLU[SPHIPSP[PLZ 33,766,163  7YV]PZPVUMVYPUJVTL[H_ 381 –
5L[PUJVTL 812,851    5L[SVZZ 1,433,280  ,X\P[` 2,257,365  5L[SVZZ (11,035) 
6[OLYJVTWYLOLUZP]L
PUJVTLSVZZ
Total comprehensive
income
.YV\W»ZZOHYLVM[V[HS
comprehensive income
MVY[OL`LHY
0U]LZ[TLU[PU()/70
6U 4H`   () /70 ^HZ PUJVYWVYH[LK HUK YLNPZ[LYLK ^P[O [OL
6[OLYJVTWYLOLUZP]LSVZZ – – ,X\P[`PU[LYLZ[VM[OL7HYLU[*VTWHU` 44%  6[OLYJVTWYLOLUZP]LPUJVTL – –
(3,285)   Total comprehensive loss 1,433,280  :OHYLPUUL[HZZL[ZVM[OLHJX\PYLL 993,241   Total comprehensive loss (P11,035) 7
.YV\W»ZZOHYLVM[V[HSJVTWYLOLUZP]L 7YLTP\TVUHJX\PZP[PVU 1,601,389  .YV\W»ZZOHYLVM[V[HSJVTWYLOLUZP]L
809,566 7 7  SVZZMVY[OL`LHY P274,897 7 *HYY`PUN]HS\LVMPU]LZ[TLU[ P2,594,630 7 SVZZMVY[OL`LHY (P5,518) 7
Investment in APLII :\TTHYPaLKZ[H[LTLU[ZVM[V[HSJVTWYLOLUZP]LPUJVTLVM(7300MVY[OL Investment in AEPDC
P250,156 7 7 6U +LJLTILY   75) LU[LYLK PU[V H `LHY L_JS\ZP]L `LHYLUKLK+LJLTILYHYLHZMVSSV^Z! 6U 1HU\HY`   [OL *VTWHU` LU[LYLK PU[V HU HNYLLTLU[ ^P[O
WHY[ULYZOPW^P[O(SSPHUa:,\UKLY[OLMVSSV^PUNHYYHUNLTLU[ZZ\IQLJ[[V (`HSH3HUK0UJ(30[VQVPU[S`KL]LSVWHWYVQLJ[HSVUN[OL*JVYYPKVY
YLN\SH[VY`HWWYV]HSZ! ;OL WYVQLJ[ PZ LU]PZPVULK [V IL H [V^UZOPW KL]LSVWTLU[ [OH[ ZWHUZ
2019  WVY[PVUVM7HZPN*P[`HUK8\LaVU*P[`6U(WYPS[OL*VTWHU`
7OPSPWWPUL :,* MVY  H\[OVYPaLK ZOHYLZ H[ 7 WHY ]HS\L WLY ‹ (SSPHUa:,^PSSHJX\PYLZOHYLZYLWYLZLU[PUNZ[VJROVSKPUNZ (In Thousands) PUM\ZLK7TPSSPVU[V[OLQVPU[WYVQLJ[^P[O(30
ZOHYL \UKLY [OL UHTL VM )YVUJVIYL^ 0UJVYWVYH[LK )YVUJVIYL^ VM(7300HUK^PSSOH]LTHUHNLTLU[JVU[YVSV]LY[OLUL^QVPU[]LU[\YL 9L]LU\L P3,721,320 7
;OL 7OPSPWWPUL :,* HWWYV]LK [OL JOHUNL PU JVYWVYH[L UHTL VM JVTWHU`" *VZ[ZHUKL_WLUZLZ (3,881,720)  6U 1\S`   [OL *VTWHU` Z\IZJYPILK [V HKKP[PVUHS 
)YVUJVIYL^[V()/LPULRLU7OPSPWWPULZ0UJVU1\S` ‹ ;OL UL^ QVPU[ ]LU[\YL JVTWHU` ^PSS VWLYH[L \UKLY [OL UHTL VM JVTTVU ZOHYLZ HUK  WYLMLYYLK ZOHYLZ MYVT (,7+*»Z
¸(SSPHUa75)3PML0UZ\YHUJL0UJ¹" 5L[PUJVTLSVZZ (160,400) 
PUJYLHZL PU H\[OVYPaLK JHWP[HS Z[VJR MVY H JVUZPKLYH[PVU [V[HSPUN [V
6U 4H`   [OL .YV\W [OYV\NO ()0 W\YJOHZLK  ZOHYLZ ‹ ( `LHY KPZ[YPI\[PVU HNYLLTLU[ ^OPJO ^PSS WYV]PKL (SSPHUa HU 6[OLYJVTWYLOLUZP]LPUJVTL 297,095   7TPSSPVU
VM Z[VJR VM () /70 MVY H JVUZPKLYH[PVU HTV\U[PUN [V 7 TPSSPVU 6U L_JS\ZP]L HJJLZZ [V [OL IYHUJO UL[^VYR VM 75) HUK 75) :H]PUNZ Total comprehensive income P136,695 7 
5V]LTILY[OL.YV\WW\YJOHZLKHKKP[PVUHSJVTTVU )HUR .YV\W»ZZOHYLVM[V[HSJVTWYLOLUZP]L 6U5V]LTILY[OL*VTWHU`THKLHKKP[PVUHSJHWP[HSPUM\ZPVU
ZOHYLZV\[VM[OLWYVWVZLKPUJYLHZLPU[OLH\[OVYPaLKJHWP[HSZ[VJRVM() PUJVTLMVY[OL`LHY P60,145 7 HTV\U[PUN[V7TPSSPVUMVY[OLQVPU[]LU[\YL»ZPUP[PHSW\YJOHZLVMSHUK
/70MVYHJVUZPKLYH[PVUVM7TPSSPVU;OL.YV\W»ZZ\IZJYPW[PVU[V() ;OLZHSLVM(7300^HZJVTWSL[LKVU1\ULMVYH[V[HSJVUZPKLYH[PVU PUL_JOHUNLMVYJVTTVUZOHYLZ
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0U HJJVYKHUJL ^P[O [OL :OHYLOVSKLYZ» (NYLLTLU[ LU[LYLK PU[V I`
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VM<:TPSSPVU7IPSSPVU7\YZ\HU[[V[OLZHSLVM(730075)HSZV
LU[LYLK PU[V H KPZ[YPI\[PVU HNYLLTLU[ ^P[O (7300 ^OLYL 75) ^PSS HSSV^
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W\YJOHZLHNYLLTLU[HUKKPZ[YPI\[PVUHNYLLTLU[OH]LWYV]PZPVUZYLMLYYPUN
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6U-LIY\HY`()0HUK*VYWVYH[PVU,TWYLZHYPHS7HZJ\HS:3
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0U  [OL *VTWHU` THKL HKKP[PVUHS JHWP[HS PUM\ZPVU [V[HSPUN [V
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consideration of 7 TPSSPVU ;OL UVUTVUL[HY` HZZL[Z ^LYL ZVSK H[ [VVULHUV[OLYTHRPUN[OLKPZ[YPI\[PVUHNYLLTLU[HUPU[LNYHSJVTWVULU[ [OL¸]LU[\YLYZ¹^PSSOVSKPU[LYLZ[PU()07HZJ\HS/VSKPUNZ-\Y[OLY +L[HPSZ VM [OL PU]LZ[TLU[ PU H QVPU[ ]LU[\YL HZ VM +LJLTILY  HYL HZ
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MYVTMHPY]HS\H[PVUHTV\U[PUN[V7TPSSPVU
Details of the investment in an associate as of December 31 are as
MVSSV^Z!
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<:TPSSPVU7IPSSPVU^HZHSSVJH[LKIL[^LLU[OLZHSLVM[OL VWLYH[PUNKLJPZPVUZHTVUN]LU[\YLYZ
PU[LYLZ[PU(7300HUK[OL,_JS\ZP]L+PZ[YPI\[PVU9PNO[Z,+9HTV\U[PUN
6U 5V]LTILY   ()0 7HZJ\HS /VSKPUNZ JYLH[LK ()0 7HZJ\HS 2019 
[V <:  TPSSPVU 7 IPSSPVU HUK <: TPSSPVU 7 IPSSPVU
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PUJVYWVYH[LK HUK KVTPJPSLK PU [OL 7OPSPWWPULZ [OH[ ^PSS KL]LSVW H )LNPUUPUNIHSHUJLHJX\PZP[PVUJVZ[ P2,176,000 7
75)^PSSHSZVYLJLP]L]HYPHISLHUU\HSHUKÄ_LKIVU\ZLHYUV\[WH`TLU[Z I\ZPULZZVMTHYRL[PUNHUKKPZ[YPI\[PUNJLY[HPUHNYLLKWYVK\J[Z(ZWHY[ (KKP[PVUHSJHWP[HSPUM\ZPVUK\YPUN[OL
2019  VM [OL QVPU[ ]LU[\YL HNYLLTLU[ [OL ]LU[\YLYZ HSZV HNYLLK [V L_LJ\[L H
IHZLKVUTPSLZ[VULZHJOPL]LKV]LY[OL`LHY[LYTVM[OLKPZ[YPI\[PVU `LHY 1,195,000 
(In Thousands) HNYLLTLU[ WYVK\J[KPZ[YPI\[PVUHNYLLTLU[ (JJ\T\SH[LKLX\P[`PUUL[LHYUPUNZ!
P787,400 7
(Z VM +LJLTILY   ()0 OHZ HU PU]LZ[TLU[ PU ()0 7HZJ\HS )HSHUJLH[[OLILNPUUPUNVM[OL`LHY (49,674) –
(JJ\T\SH[LKLX\P[`PUUL[LHYUPUNZ!
 )HSHUJLH[[OLILNPUUPUNVM[OL`LHY
Share in net loss of an associate
)HSHUJLH[LUKVM`LHY
,UKPUNIHSHUJL
*\T\SH[P]L\UYLJVNUPaLKZOHYLPUUL[
;OL .YV\W YLJVNUPaLK NHPU VU ZHSL VM [OL  PU[LYLZ[ PU (7300
HTV\U[PUN [V 7 TPSSPVU UL[ VM [H_LZ HUK [YHUZHJ[PVU JVZ[Z /VSKPUNZ HTV\U[PUN [V 7 TPSSPVU ^OPSL ()0 7HZJ\HS /VSKPUNZ :OHYLPUUL[SVZZVMHQVPU[]LU[\YL (8,973)  
(512,503) 
HTV\U[PUN [V 7 TPSSPVU HUK 7 TPSSPVU YLZWLJ[P]LS` ;OL OHZ HU PU]LZ[TLU[ PU ()0 7HZJ\HS -VVKZ HTV\U[PUN [V 7 TPSSPVU )HSHUJLH[LUKVM`LHY (58,647)  
(274,897)   ;OLQVPU[]LU[\YLOHZZ[HY[LKVWLYH[PVUZPU:LW[LTILY
KLMLYYLKYL]LU\LHTV\U[PUN[V7 TPSSPVUHSSVJH[LK[V[OL,+9^HZ ,UKPUNIHSHUJL P3,312,353 7
(787,400)  WYLZLU[LKHZ¸6[OLYKLMLYYLKYL]LU\L¹HUK^PSSILHTVY[PaLK[VPUJVTL
*Includes catch-up adjustment of share in net loss in prior years
PĚ 7  V]LY`LHYZMYVTKH[LVMZHSLZLL5V[L(TVY[PaH[PVUHTV\U[PUN ;OL.YV\WKL[LYTPULK[OH[P[ZHK]HUJLZ[V()07HZJ\HS-VVKZYLWYLZLU[Z
to 7TPSSPVU^HZYLJVNUPaLKPUZLL5V[L7YPVY[V[OLZHSL [OL.YV\W»ZSVUN[LYTPU[LYLZ[PU()07HZJ\HS/VSKPUNZHUKP[ZZ\IZPKPHY`
:\TTHYPaLKÄUHUJPHSPUMVYTH[PVUVM(,7+*HZVM+LJLTILY 
SVZZLZPU()/70 P441,743 7ò VM ZOHYLZ [V (SSPHUa :, 75) HJX\PYLK HKKP[PVUHS  Z[VJROVSKPUNZ [OH[PUZ\IZ[HUJLMVYTWHY[VM[OL.YV\W»ZUL[PU]LZ[TLU[PU[OLQVPU[
HUKMVSSV^Z!
MYVT [OL TPUVYP[` ZOHYLOVSKLYZ MVY H JVUZPKLYH[PVU HTV\U[PUN [V ]LU[\YL
:\TTHYPaLKÄUHUJPHSPUMVYTH[PVUVM()/70HZVM+LJLTILY  7 TPSSPVUIL[^LLU1\ULHUK1\UL
HUKHUKYLJVUJPSPH[PVU^P[O[OLJHYY`PUNHTV\U[VM[OLPU]LZ[TLU[ ;OL Z\TTHYPaLK ÄUHUJPHS PUMVYTH[PVU VM ()0 7HZJ\HS /VSKPUNZ HZ VM 2019 
PUJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZHYLZL[V\[ILSV^! *VUZLX\LU[S`75)HJJV\U[LKMVYP[ZYLTHPUPUNV^ULYZOPWPU[LYLZ[ +LJLTILYMVSSV^Z! (In thousands)
PU(7300HZHUHZZVJPH[L([[OLKH[LVMSVZZVMJVU[YVS75)»ZPU]LZ[TLU[
*\YYLU[HZZL[Z P12,780,696 7
PU (7300 ^HZ YLTLHZ\YLK [V 7 IPSSPVU IHZLK VU [OL MHPY ]HS\L VM P[Z
2019  2019  5VUJ\YYLU[HZZL[Z 3,868,199  
YL[HPULKLX\P[`75)YLJVNUPaLKNHPUVUYLTLHZ\YLTLU[HTV\U[PUN[V
(In Thousands) 7IPSSPVUPU[OLJVUZVSPKH[LKZ[H[LTLU[VMPUJVTL (In thousands) *\YYLU[SPHIPSP[PLZ 7,783,092  
*\YYLU[HZZL[Z P3,423,754 7 *\YYLU[HZZL[Z P250,991 7 5VUJ\YYLU[SPHIPSP[PLZ 2,241,098  
5VUJ\YYLU[HZZL[Z 2,537,818   ;OLMHPY]HS\LVM[OLYL[HPULKLX\P[`^HZIHZLKVUHJVTIPUH[PVUVM[OL 5VUJ\YYLU[HZZL[Z 4,031   ,X\P[` 6,624,705 
*\YYLU[SPHIPSP[PLZ 3,088,271  PUJVTLHWWYVHJOHUKTHYRL[HWWYVHJO *\YYLU[SPHIPSP[PLZ 205,670 
5VUJ\YYLU[SPHIPSP[PLZ 3,765,330  5VUJ\YYLU[SPHIPSP[PLZ 13,753 –
6U:LW[LTILY[OL7OPSPWWPUL:,*HWWYV]LK[OLHTLUKTLU[
,X\P[`JHWP[HSKLÄJPLUJ` (892,029)  VM75)3PML0UZ\YHUJL0UJ»ZHY[PJSLVMPUJVYWVYH[PVU[VYLÅLJ[[OLJOHUNL ;V[HSLX\P[` 35,599  
50%  PUJVYWVYH[LUHTL[V(SSPHUa75)3PML0UZ\YHUJL0UJ
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6[OLYZ  Ě 
*HYY`PUN]HS\LVMPU]LZ[TLU[ PĚ 7 

92 LT G R O U P, I N C . 2019 ANNUAL REPORT 93

94
5L[SVZZ
9L]LU\L

interest
interest
+LJLTILY!
*VZ[ZHUKL_WLUZLZ

controlling interest
SVZZMVY[OL`LHY

LT G R O U P, I N C .
7YV]PZPVUMVYPUJVTL[H_

5L[PUJVTLHSSVJH[LK[V
Total comprehensive loss

(JJ\T\SH[LKIHSHUJLZVM

PU[LYJVTWHU`LSPTPUH[PVUZ
TH[LYPHSUVUJVU[YVSSPUN
TH[LYPHSUVUJVU[YVSSPUN

HSSVJH[LK[VTH[LYPHSUVU
Total comprehensive income
6[OLYJVTWYLOLUZP]LPUJVTL
0UJVTLSVZZILMVYLPUJVTL[H_

.YV\W»ZZOHYLVM[V[HSJVTWYLOLUZP]L
[OL`LHYLUKLK+LJLTILYHYLHZMVSSV^Z!

79,726
2019

(14,705)
–
47,982
26,942
P3,153,413
2019

(P10,520)
(P21,040)
(21,040)
(3,126,471)


  

(In Thousands)
(In Thousands)

+PZJSVZ\YLZVU:\IZPKPHY`^P[O4H[LYPHS5VUJVU[YVSSPUN0U[LYLZ[
–

7





7 
7

 
  

P2,882,039 7  7 

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ILSV^PZIHZLKVU[OLHTV\U[ZPU[OLJVUZVSPKH[LKÄUHUJPHSZ[H[LTLU[ZVM
VMPU[LYLZ[ZTL[OVK;O\Z[OLZ\TTHYPaLKÄUHUJPHSPUMVYTH[PVUVM75)
Z[H[LTLU[Z [OL TLYNLY VM 75) HUK ()* HUK [OL HJX\PZP[PVU VM 75)
[OL HJX\PZP[PVU TL[OVK VM 7-9:   0U [OL 3;. JVUZVSPKH[LK ÄUHUJPHS
VM()*75)HJJV\U[LKMVY[OLI\ZPULZZJVTIPUH[PVU^P[O()*\UKLY
6U-LIY\HY` 75)HJX\PYLKVM[OL]V[PUNJVTTVUZ[VJR
UVUJVU[YVSSPUN PU[LYLZ[Z VM  HZ VM HUK MVY [OL `LHYZ LUKLK
-VSSV^PUN PZ [OL ÄUHUJPHS PUMVYTH[PVU VM  75) ^OPJO OHZ TH[LYPHS
:\TTHYPaLK Z[H[LTLU[Z VM [V[HS JVTWYLOLUZP]L PUJVTL VM (,7+* MVY

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Investing
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Dividends declared to

in cash and cash

5VUJ\YYLU[SPHIPSP[PLZ
7YV]PZPVUMVYPUJVTL[H_

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 5VUJVU[YVSSPUNPU[LYLZ[Z
 5VUJVU[YVSSPUNPU[LYLZ[Z

5L[PUJYLHZLKLJYLHZL
Total comprehensive income
Total comprehensive income
-VYLPNUL_JOHUNLNHPUZUL[

6[OLYJVTWYLOLUZP]LPUJVTL

 5VUJVU[YVSSPUNPU[LYLZ[
:[H[LTLU[ZVM*HZO-SV^Z!
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P7,869,854
51,891,720
2019
3,372
14,522,733
79,726
P9,858,543
P14,759,674
4,821,405
9,938,269
12,409,255
3,209,264
1,105,918
P56,865,508
2019

(14,705)
(2,470,986)
(29,627,829)
(19,143,606)


 

2,882,039
156,398,876
129,363,371
865,580,704
665,367,850
2019

7 

P22,079,130 7 

(In Thousands)

(In Thousands)

  
  
7
7
  



7


(66,100,996)  



 
5V[L

(In Thousands)




 

7
7  
  


 
7 
 (Z9LZ[H[LK  (Z9LZ[H[LK




 
  
  
 
  
P488,857,140 7 

 
 
 
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7 
 
7

12. 7YVWLY[`7SHU[HUK,X\PWTLU[

+LJLTILY

At Appraised Values At Cost

Plant  2τFHDQG Furniture,
Land and Buildings and Administration Fixtures and
Land Building Machineries Buildings and Transportation Returnable Other Construction Right-of-Use
Improvements Improvements and Equipment Subtotal Improvements Equipment Containers Equipment in Progress Subtotal Assets Total
(In Thousands)
Cost
)HSHUJLH[ILNPUUPUNVM`LHYHZ
WYL]PV\ZS`YLWVY[LK P40,432,488 P20,947,525 P28,362,171 P89,742,184 P6,846,941 P2,569,749 P4,192,636 P12,504,073 P1,713,838 P27,827,237 PĚ P117,569,421
,ќLJ[VMHKVW[PVUVM7-9:
5V[L – – – – – – – – – – 3,126,156 3,126,156
)HSHUJLH[ILNPUUPUNVM`LHYHZ
restated 40,432,488 20,947,525 28,362,171 89,742,184 6,846,941 2,569,749 4,192,636 12,504,073 1,713,838 27,827,237 3,126,156 120,695,577
(KKP[PVUZ[YHUZMLYZ5V[L 4,232 483,278 1,593,260 2,080,770 346,564 304,970 415,081 1,347,474 949,644 3,363,733 461,918 5,906,421
+PZWVZHSZ[YHUZMLYZV[OLYZ
5V[L 294,494 482,951 (1,377,068) (599,623) 463,078 (101,247)  Ě (240,206) (1,281,189) (1,159,564)  Ě (1,759,187)
)HSHUJLH[LUKVM`LHY 40,731,214 21,913,754 28,578,363 91,223,331 7,656,583 2,773,472 4,607,717 13,611,341 1,382,293 30,031,406 3,588,074 124,842,811
Accumulated Depreciation,
Amortization and
Impairment Losses
)HSHUJLH[ILNPUUPUNVM`LHY 1,480,271 6,839,475 21,104,677 29,424,423 4,271,514 1,855,410 3,172,144 10,710,742 – 20,009,810  Ě 49,434,233
+LWYLJPH[PVUHUKHTVY[PaH[PVU 126,335 560,746 964,503 1,651,584 382,717 245,787 303,997 1,093,261 – 2,025,762 654,329 4,331,675
+PZWVZHSZ[YHUZMLYZV[OLYZ
5V[L 605,566 562,019 (832,172) 335,413 (107,390) (161,932)  Ě (888,315) – (1,157,637)  Ě (822,224)
)HSHUJLH[LUKVM`LHY 2,212,172 7,962,240 21,237,008 31,411,420 4,546,841 1,939,265 3,476,141 10,915,688 – 20,877,935 654,329 52,943,684
Net Book Value P38,519,042 P13,951,514 P7,341,355 P59,811,911 P3,109,742 P834,207 P1,131,576 P2,695,653 P1,382,293 P9,153,471 P2,933,745 P71,899,127

+LJLTILY

([(WWYHPZLK=HS\LZ ([*VZ[(Z9LZ[H[LK5V[L
 7SHU[  6ѝJLHUK  -\YUP[\YL
 )\PSKPUNZHUK  (KTPUPZ[YH[PVU  -P_[\YLZHUK
Land and Land  )\PSKPUN Machineries  )\PSKPUNZHUK Transportation  9L[\YUHISL  6[OLY  *VUZ[Y\J[PVU
Improvements Improvements  HUK,X\PWTLU[  :\I[V[HS Improvements  ,X\PWTLU[  *VU[HPULYZ  ,X\PWTLU[  PU7YVNYLZZ  :\I[V[HS Total
(In Thousands)
Cost
)HSHUJLH[ILNPUUPUNVM`LHY 7  7   7 7 7 7 7  7 7 7 7
(KKP[PVUZ[YHUZMLYZ5V[L              
5L[PUJYLTLU[PUHWWYHPZLK]HS\L   –   – – – – – –  
+PZWVZHSZ[YHUZMLYZV[OLYZ
5V[L               
)HSHUJLH[LUKVM`LHY                 
Accumulated Depreciation,
Amortization and
Impairment Losses
)HSHUJLH[ILNPUUPUNVM`LHY           –  
+LWYLJPH[PVUHUKHTVY[PaH[PVU            –   
+PZWVZHSZ[YHUZMLYZV[OLYZ
5V[L –          –  
)HSHUJLH[LUKVM`LHY           –    
Net Book Value 7  7 7  7 7 7 7  7  7 7 7
2019 ANNUAL REPORT
95
 9PNO[VM\ZLHZZL[Z
13. 0U]LZ[TLU[7YVWLY[PLZ
+LJLTILY
4V]LTLU[ZVM[OL.YV\W»ZPU]LZ[TLU[WYVWLY[PLZHYLHZMVSSV^ZPU[OV\ZHUKZ!
Plant
Buildings and December 31, 2019
Land and Land Building Machineries
Buildings and Residential Construction
Bank Premises Improvements Improvements and Equipment Total
Land Improvements Unit in Progress Total
Cost
)HSHUJLH[ILNPUUPUNVM`LHY P1,817,349 P1,185,608 P73,661 P49,538 P3,126,156 Cost
(KKP[PVUZ[YHUZMLYZ 461,918 Ě Ě Ě 461,918 )HSHUJLH[ILNPUUPUNVM`LHY P22,137,643 P11,397,724 P7,620 P4,179,574 P37,722,561
)HSHUJLH[LUKVM`LHY 2,279,267 1,185,608 73,661 49,538 3,588,074 (KKP[PVUZ 845,792 166,338 35,551 1,579,446 2,627,127
Accumulated Depreciation, Amortization +PZWVZHSZ[YHUZMLYZV[OLYZ (833,430) 3,266,202 (1,075) (3,294,549) (862,852)
and Impairment Losses )HSHUJLH[LUKVM`LHY 22,150,005 14,830,264 42,096 2,464,471 39,486,836
)HSHUJLH[ILNPUUPUNVM`LHY Ě Ě Ě Ě Ě
Accumulated Depreciation and Impairment
+LWYLJPH[PVUHUKHTVY[PaH[PVU 568,067 70,542 4,911 10,809 654,329 Losses
)HSHUJLH[LUKVM`LHY 568,067 70,542 4,911 10,809 654,329
)HSHUJLH[ILNPUUPUNVM`LHY 3,558,186 3,837,854 7,620 – 7,403,660
Net Book Value P1,711,200 P1,115,066 P68,750 P38,729 P2,933,745
Depreciation – 528,023 – – 528,023
7YV]PZPVUMVYPTWHPYTLU[SVZZLZ – 500,253 – – 500,253
9L]HS\H[PVU VM 3HUK HUK 3HUK 0TWYV]LTLU[Z 7SHU[ )\PSKPUNZ HUK Depreciation +PZWVZHSZ[YHUZMLYZV[OLYZ (1,056,283) (472,147) (48,111) – (1,576,541)
4HJOPULYPLZHUK,X\PWTLU[ +LWYLJPH[PVUVMWYVWLY[`WSHU[HUKLX\PWTLU[JOHYNLK[VVWLYH[PVUZPZ )HSHUJLH[LUKVM`LHY 2,501,903 4,393,983 (40,491) – 6,855,395
;OL JVYYLZWVUKPUN MHPY ]HS\LZ VM SHUK HUK SHUK PTWYV]LTLU[Z WSHU[ HZMVSSV^Z!
I\PSKPUNZHUKI\PSKPUNPTWYV]LTLU[ZHUKTHJOPULYPLZHUKLX\PWTLU[HYL Net Book Value P19,648,102 P10,436,281 P82,587 P2,464,471 P32,631,441
KL[LYTPULKIHZLKVU]HS\H[PVUWLYMVYTLKI`7OPSPWWPUL:,*HJJYLKP[LK
 
HUKPUKLWLUKLU[HWWYHPZLYZ;OLMHPY]HS\LVM[OLSHUK^HZKL[LYTPULK +LJLTILY
(Z9LZ[H[LK (Z9LZ[H[LK
\ZPUN[OLTHYRL[KH[HHWWYVHJOIHZLKVUH]HPSHISLTHYRL[L]PKLUJLHUK
2019 5V[L 5V[L  )\PSKPUNZHUK  9LZPKLU[PHS  *VUZ[Y\J[PVU
[OLMHPY]HS\LZMVYSHUKPTWYV]LTLU[ZWSHU[I\PSKPUNZHUKTHJOPULYPLZ
HUK LX\PWTLU[ ^LYL KLYP]LK \ZPUN [OL KLWYLJPH[LK YLWSHJLTLU[ JVZ[ (In Thousands) Land Improvements  <UP[  PU7YVNYLZZ Total
;OL KH[LZ VM [OL SH[LZ[ HWWYHPZHS ]HS\H[PVUZ ^LYL +LJLTILY   *VU[PU\PUNVWLYH[PVUZ! Cost
HUKZLL5V[L4V]LTLU[ZPUYL]HS\H[PVUPUJYLTLU[UL[  *VZ[VMNVVKZZVSKHUK
VMKLMLYYLKPUJVTL[H_LќLJ[HYLHZMVSSV^Z! )HSHUJLH[ILNPUUPUNVM`LHY 7 7 7 7 7 
 ZLY]PJLZ5V[L P1,490,522 7  7
 :LSSPUNL_WLUZLZ5V[L 292,805   (KKP[PVUZ   –  
2019   .LULYHSHUK +PZWVZHSZ[YHUZMLYZV[OLYZ   –  
(In Thousands) administrative )HSHUJLH[LUKVM`LHY       
9L]HS\H[PVUPUJYLTLU[VU[OLWYVWLY[`   L_WLUZLZ5V[L 2,548,348  
Accumulated Depreciation and Impairment
WSHU[HUKLX\PWTLU[UL[VM P4,331,675 7 7 Losses
KLMLYYLKPUJVTL[H_LќLJ[!
(Z VM +LJLTILY    HUK  [OL .YV\W»Z ¸*VUZ[Y\J[PVU PU )HSHUJLH[ILNPUUPUNVM`LHY     – 
  )HSHUJLH[ILNPUUPUNVM`LHY P22,060,427 7 WYVNYLZZ¹\UKLY[OL¸7YVWLY[`WSHU[HUKLX\PWTLU[¹HJJV\U[WLY[HPUZ Depreciation –  – – 
  5L[YL]HS\H[PVUPUJYLHZL (395,141)  [V((*»ZTHQVYYLOHIPSP[H[PVUVMWSHU[MHJPSP[PLZ^OPJOHYLL_WLJ[LK[V
  ;YHUZMLYVMWVY[PVUVMYL]HS\H[PVU ILJVTWSL[LKPU HUK75)»ZJVUZ[Y\J[PVUVMI\PSKPUN 7YV]PZPVUMVYPTWHPYTLU[SVZZLZ –  – – 
   PUJYLTLU[VUWYVWLY[`WSHU[ +PZWVZHSZ[YHUZMLYZV[OLYZ   – – 
   HUKLX\PWTLU[YLHSPaLK  6\[ VM [OL [V[HS HKKP[PVUZ PU   HUK  7 TPSSPVU HUK
)HSHUJLH[LUKVM`LHY    – 
  [OYV\NOKLWYLJPH[PVUHUK 7TPSSPVUYLTHPU[VIL\UWHPKHZVM+LJLTILY HUK
disposal (734,614)   YLZWLJ[P]LS`^OPJOYLWYLZLU[UVUJHZOPU]LZ[PUNHJ[P]P[PLZ Net Book Value 7  7  7– 7  7 
  )HSHUJLH[LUKVM`LHY P20,930,672 7
*LY[HPU WYVWLY[` HUK LX\PWTLU[ VM [OL .YV\W ^P[O JHYY`PUN HTV\U[ ;OL .YV\W»Z PU]LZ[TLU[ WYVWLY[PLZ JVUZPZ[ VM WHYJLSZ VM SHUK MVY 9LU[0UJVTLHUK+PYLJ[6WLYH[PUN,_WLUZLZVM0U]LZ[TLU[7YVWLY[PLZ
([[YPI\[HISL[V! of 7  TPSSPVU HUK 7  TPSSPVU HYL [LTWVYHYPS` PKSL HZ VM HWWYLJPH[PVU YLZPKLU[PHS HUK JVUKVTPUP\T \UP[Z MVY SLHZL HUK MVY ZHSL 9LU[HS PUJVTL HUK KPYLJ[ VWLYH[PUN L_WLUZLZ HYPZPUN MYVT [OL
 ,X\P[`OVSKLYZVM[OL*VTWHU` 12,726,318   +LJLTILY HUKYLZWLJ[P]LS` HUKYLHSWYVWLY[PLZMVYLJSVZLKVYHJX\PYLKPUZL[[SLTLU[VMSVHUZ^OPJO PU]LZ[TLU[ WYVWLY[PLZ VM WYVWLY[` KL]LSVWTLU[ ZLNTLU[ HTV\U[LK
 5VUJVU[YVSSPUNPU[LYLZ[Z 8,204,354  HYLHSS]HS\LKH[JVZ[-VYLJSVZLKPU]LZ[TLU[WYVWLY[PLZZ[PSSZ\IQLJ[[V to 7 TPSSPVU HUK 7  TPSSPVU PU   7  TPSSPVU HUK
)VYYV^PUN*VZ[Z YLKLTW[PVU WLYPVK I` [OL IVYYV^LYZ HTV\U[LK [V 7 TPSSPVU HUK 7TPSSPVUPUHUK7TPSSPVUHUK7TPSSPVUPU
P20,930,672 7
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96 LT G R O U P, I N C . 2019 ANNUAL REPORT 97

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2019  HUK6700MVY[OLZHSLVM[OL57(Z^LYLL_LJ\[LKVU+LJLTILY  J <USLZZ LHYSPLY YLKLLTLK [OL 3;5*+Z ZOHSS IL YLKLLTLK I` (In Thousands)
(In Thousands) 6700^HZZWLJPÄJHSS`VYNHUPaLK[VOVSKTHUHNLZLY]PJLHUK 75) VU TH[\YP[` KH[L H[ HU HTV\U[ LX\HS [V VUL O\UKYLK )PSSZWH`HISL[V!
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I 0U[OL.YV\WYLJSHZZPÄLK[OLWYLWHPKL_JPZL[H_LZVM;+0MYVT 2019 
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Savings 383,963,252  L :\IQLJ[[V[OL¸,]LU[ZVM+LMH\S[¹PU[OL;LYTZHUK*VUKP[PVUZ 2019  
J 4PZJLSSHULV\Z HZZL[Z THPUS` WLY[HPU [V PU[LYVѝJL ÅVH[Z  ;OL IHUR Time 262,046,747   [OL3;5*+ZJHUUV[ILWYL[LYTPUH[LKH[[OLPUZ[HUJLVMHU`*+ -VYLPNUJ\YYLUJ`KLUVTPUH[LK
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98 LT G R O U P, I N C . 2019 ANNUAL REPORT 99

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(Z VM +LJLTILY   75) OHZ JVTWSPLK ^P[O [OL HIV]L KLI[ (JJY\LK,_WLUZLZ [OLHNNYLNH[LPZZ\LWYPJLVM[OL5V[LZWS\ZHJJY\LKHUK\UWHPKPU[LYLZ[
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0U[LYLZ[ L_WLUZL VU IPSSZ WH`HISL PZ PUJS\KLK \UKLY ¸*VZ[ VM IHURPUN UV[L Z\IQLJ[ [V PU[LYLZ[ YH[L VM 7+:;-  `LHYZ WS\Z  ZWYLHK [V
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100 LT G R O U P, I N C . 2019 ANNUAL REPORT 101

 Parent Company, Subsidiaries, Parent Company, Subsidiaries,
21. +LYP]H[P]L-PUHUJPHS0UZ[Y\TLU[Z Associates and Joint Ventures Entities Under Common Control Associates and Joint Ventures Entities Under Common Control
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  )*0 5LNYVZ)PVJOLT*VYWVYH[PVU  3H=PKH+L]LSVWTLU[*VYW
  ,*0 .YHUK^H`2VUZ[Y\J[0UJ  7YVMV\UK/VSKPUNZ0UJ
December 31, 2019 +LJLTILY   -/0 /HYTVUPJ/VSKPUNZ*VYW  7\YWSL*Y`Z[HS/VSKPUNZ0UJ
(]LYHNL   ,74* 7YV[VU9LHS[` +L]LSVWTLU[*VYWVYH[PVU  :HML^H`/VSKPUNZ ,X\P[PLZ0UJ
Average Notional -VY^HYK 5V[PVUHS )HUR/VSKPUN*VTWHUPLZ! Billinge Investments Limited  :VJPL[`/VSKPUNZ*VYW
Assets Liabilities Forward Rate Amount* (ZZL[Z Liabilities 9H[L (TV\U[  (SSTHYR/VSKPUNZ*VYW :[LW+YHNVU*V3PTP[LK  ;V[HS/VSKPUNZ*VYW
(In Thousands)  +\UTVYL+L]LSVWTLU[*VYW /PNO(IV]L7YVWLY[PLZ3[K   75)HUK:\IZPKPHYPLZ
-YLLZ[HUKPUNKLYP]H[P]LZ!  2LUYVJR/VSKPUNZ*VYW 7LUPJR.YV\W3PTP[LK 4HI\OH`.SVIHS/VSKPUN*VTWHU`
 3LHK^H`/VSKPUNZ0UJ 0U:OHWL.YV\W3[K 7[L3[K
*\YYLUJ`MVY^HYKZ
 4\S[PWSL:[HY/VSKPUNZ*VYW /PILYZOHT(ZZL[Z3[K 4HI\OH`+PNP[HS7OPSPWWPULZ0UJ
 )<@! 4HI\OH`+PNP[HS;LJOUVSVNPLZ
 7PVULLY/VSKPUNZ ,X\P[PLZ0UJ 6YPLU[3LNLUK+L]LSVWTLU[Z3[K
<:+ P23,951 P179,106 P50.64 P1,042,766 7 7  7 7  0UJ
 +VUMHY4HUHNLTLU[3[K *VTWSL[L)LZ[+L]LSVWTLU[3[K
17@ 2 – 0.01 666      Associates
 -HZ[9L[\YU,U[LYWYPZLZ3[K *VYTHJR0U]LZ[TLU[Z3[K
/2+ – – – –       74-;*
 4H]LSZ[VUL0U[LYUH[PVUHS3[K 3PUR.YLH[0U[LYUH[PVUHS3[K
*5@ 39 – 0.14 2,000 33 ò    =4*
 <[[LYTVZ[:\JJLZZ3[K )YPNO[(ISL/VSKPUNZ3[K
 (7300
.)7 278 – 1.31 1,700  ò    0]VY`/VSKPUNZ0UJ
 ()/70
,<9 39 2,114 1.11 11,173      4LYP[/VSKPUNZ ,X\P[PLZ*VYW
Joint Ventures
:.+ 3 – 0.74 23,394 – – – –  ;Y\L:\JJLZZ7YVÄ[Z3[K
 ()07HZJ\HS/VSKPUNZ
 :,33!  2L`3HUKTHYR0U]LZ[TLU[Z3[K
 ()07HZJ\HS-VVKZ
<:+ 280,652 8,432 50.64 1,677,221          -YHNPSL;V\JO0U]LZ[TLU[Z3[K
 (,7+*
 *HYH]HU/VSKPUNZ*VYW
*(+ – 809 0.77 1,500  ò  
.)7 176 211 1.31 5,150 ò   
*/- – – – –  ò   ;OLJVUZVSPKH[LKZ[H[LTLU[ZVMPUJVTLPUJS\KL[OLMVSSV^PUNYL]LU\LHUKV[OLYPUJVTLYLSH[LKJVZ[ZHUKV[OLYL_WLUZLZHJJV\U[IHSHUJLZHYPZPUNMYVT
/2+ – 7,010 0.13 399,627     [YHUZHJ[PVUZ^P[OYLSH[LKWHY[PLZ!
,<9 4,613 51 1.11 28,691 ò   
17@ 2,869 66 0.01 1,152,909     Nature 2019  
:.+ – – – – ò    (In Thousands)
(<+ – 27 0.70 100  –   Dividend income P9,778,726 7 7 
0U[LYLZ[YH[LZ^HWZ 60,418 47,687 – –   – – 7\YJOHZLZVMPU]LU[VYPLZ (547,273)   
>HYYHU[Z – – – –  – – – Associates
Sales 516,812    
P373,040 P245,513 7 7 Leases 35,100  
;OLUV[PVUHSHTV\U[ZWLY[HPU[V[OLVYPNPUHSJ\YYLUJ`L_JLW[MVY[OLLTILKKLKKLYP]H[P]LZ^OPJOYLWYLZLU[[OLLX\P]HSLU[[V<:+HTV\U[ )HURPUNYL]LU\LPU[LYLZ[VUSVHUZHUK
receivables 1,255,819    
H (Z VM +LJLTILY    HUK  75) OVSKZ UPS ZOHYLZ HUK ;OLJOHUNLZPUMHPY]HS\LVM[OLKLYP]H[P]LZHYLPUJS\KLKPU¸;YHKPUNHUK :HSLZVMJVUZ\TLYWYVK\J[Z 30,656  
ZOHYLZHUKZOHYLZVM967>HYYHU[Z:LYPLZ)H[ PU]LZ[TLU[ZZLJ\YP[PLZNHPUZ¹WYLZLU[LKHZWHY[VM¸)HURPUNYL]LU\LZ¹PU Entities Under Interest income on loans and advances 23,090   
[OLPYMHPY]HS\LVM<:TPSSPVU7TPSSPVUHUK<:TPSSPVU [OLJVUZVSPKH[LKZ[H[LTLU[ZVMPUJVTLZLL5V[L Common Control
7TPSSPVUYLZWLJ[P]LS` 9LU[PUJVTL 17,968  
6[OLYPUJVTL 73,199   
I ;OL [HISL ILSV^ ZOV^Z [OL YVSSMVY^HYK HUHS`ZPZ VM UL[ KLYP]H[P]LZ 22. 9LSH[LK7HY[`;YHUZHJ[PVUZ -YLPNO[HUKOHUKSPUN (13,802)   
HZZL[ZSPHIPSP[PLZ! 7\YJOHZLZVMPU]LU[VYPLZ (6,336)    
;OL*VTWHU`OHZ[YHUZHJ[LK^P[OP[ZZ\IZPKPHYPLZHZZVJPH[LZHUKV[OLY *VZ[VMIHURPUNZLY]PJLZPU[LYLZ[L_WLUZLVU
YLSH[LKWHY[PLZHZMVSSV^Z! deposit liabilities (246,104)    
2019 
(In Thousands) Entities Under *VZ[VMNVVKZZVSKHUKZLY]PJLZ (2,035)  
)HSHUJLH[ILNPUUPUNVM`LHY Common Control Management and professional fees (581,793)    
Parent Company, Subsidiaries,
Derivative assets 574,629   Associates and Joint Ventures Entities Under Common Control 6\[ZPKLZLY]PJLZ (71,668)  
Derivative liabilities 470,649  Parent Company (ZJV[/VSKPUNZ0UJ 9LU[L_WLUZL (23,698)  
103,980   Tangent 7VS/VSKPUNZ0UJ (K]LY[PZPUNL_WLUZL (130)   
:PLYYH/VSKPUNZ ,X\P[PLZ0UJ :OVY[[LYTLTWSV`LLILULÄ[Z (572,547)   
*OHUNLZPUMHPY]HS\L Key Management
Subsidiaries .YHUK*HYNVHUK>HYLOV\ZPUN:LY]PJLZ0UJ 7VZ[LTWSV`TLU[ILULÄ[Z (77,652)  
 *\YYLUJ`MVY^HYKZHUKZWV[Z (663,118)   ;+0HUK:\IZPKPHYPLZ )HZPJ/VSKPUNZ*VYWVYH[PVU
 0U[LYLZ[YH[LZ^HWZHUK^HYYHU[Z (3,733)   (+0 -VYLTVZ[-HYTZ0UJ ;OLJVUZVSPKH[LKZ[H[LTLU[ZVMÄUHUJPHSWVZP[PVUPUJS\KL[OLMVSSV^PUNHZZL[SPHIPSP[`HJJV\U[IHSHUJLZ^P[OYLSH[LKWHY[PLZ!
(666,851)    ((* .YHUKZWHU+L]LSVWTLU[*VYW
(]HPSTLU[Z 690,292  TBI /PTTLS0UK\Z[YPLZ0UJ (TV\U[=VS\TL 6\[Z[HUKPUN)HSHUJL
()0HUK:\IZPKPHYPLZ 3HW\3HW\7HJRHNPUN Financial Statement Account Terms and Conditions 2019  2019 
)HSHUJLH[LUKVM`LHY
 (N\H=PKH:`Z[LTZ0UJ 3\JR`;YH]LS*VYWVYH[PVU (In Thousands)
Derivative assets 373,040  Interbev 7OPSPWWPUL(PYSPULZ0UJ
Derivative liabilities 245,619  +\L[VYLSH[LKWHY[PLZ 6UKLTHUK"UVUPU[LYLZ[ILHYPUN P– 7– (P15,325) 7
 >H[LYPJO 9HWPK4V]LYZ -VY^HYKLYZ*V0UJ Parent Company
127,421   +\LMYVTYLSH[LKWHY[PLZ 6UKLTHUK"UVUPU[LYLZ[ILHYPUN – – 509,000  
 7HJRHNL^VYSK <WYPNO[7YVÄ[Z3[K
 ()5\[YPIL] +`a\T+PZ[PSSLY`0UJ 6[OLYYLJLP]HISLZKP]PKLUKZ 7H`HISLTVU[OS` 9,778,726   Ě 
7YLZLU[LKHZWHY[VM¸-VYLPNUL_JOHUNLNHPUZ¹ Associates
7YLZLU[LKHZWHY[VM¸;YHKPUNHUKPU]LZ[TLU[ZLJ\YP[PLZNHPUZUL[¹  (ZPH7HJPÄJ)L]LYHNL7[L3[K /LYP[HNL/VSKPUNZ*VYW Trade receivables KV 516,812   1,197,250 
 (ZPH7HJPÄJ)L]LYHNL4`HUTHY 4H_LSS/VSKPUNZ*VYW 5VU[YHKLYLJLP]HISLZ KV 129,980  266,985 
  7[L3[K (JJV\U[WH`HISLHUKV[OLY [VKH`Z[LYTZ"UVUPU[LYLZ[
-VY^HYK liabilities bearing (547,273)  (490,957)  

102 LT G R O U P, I N C . 2019 ANNUAL REPORT 103

 (TV\U[=VS\TL 6\[Z[HUKPUN)HSHUJL ;OLMVSSV^PUN[HISLZZ\TTHYPaL[OLJVTWVULU[ZVMUL[YL[PYLTLU[WSHUHZZL[ZHUKUL[YL[PYLTLU[ILULÄ[ZSPHIPSP[`YLJVNUPaLKPU[OLJVUZVSPKH[LKZ[H[LTLU[Z
Financial Statement Account Terms and Conditions 2019  2019  VM ÄUHUJPHS WVZP[PVU [OL UL[ ILULÄ[ L_WLUZLZ YLJVNUPaLK PU [OL JVUZVSPKH[LK Z[H[LTLU[Z VM PUJVTL HUK [OL YLTLHZ\YLTLU[ SVZZLZ NHPUZ YLJVNUPaLK PU
JVUZVSPKH[LKZ[H[LTLU[ZVMJVTWYLOLUZP]LPUJVTL
(In Thousands)
:LJ\YLKI`OVSKV\[VUKLWVZP[Z 5L[YL[PYLTLU[WSHUHZZL[Z!
NV]LYUTLU[ZLJ\YP[PLZYLHSLZ[H[L
HUKTVY[NHNL[Y\Z[PUKLU[\YL"
<UPTWHPYLK">P[OPU[LYLZ[YH[LZ 2019  
YHUNPUNMYVT[V^P[O  'HðQHG Net  +LÄULK  5L[  +LÄULK  5L[
 %HQHðW Fair Value of Retirement  )LULÄ[  -HPY=HS\LVM  9L[PYLTLU[  )LULÄ[  -HPY=HS\LVM  9L[PYLTLU[
TH[\YP[`[LYTZYHUNPUNMYVT KH`Z
Obligations Plan Assets Plan Assets  6ISPNH[PVUZ  7SHU(ZZL[Z  7SHU(ZZL[Z  6ISPNH[PVUZ  7SHU(ZZL[Z  7SHU(ZZL[Z
[V`LHYZHUKWH`TLU[[LYTZVM
(In Thousands)
YHUNPUNMYVTTVU[OS`[VX\HY[LYS`
-PUHUJLYLJLP]HISLZ WH`TLU[Z P1,255,819 7  P39,487,080 7   Beginning balance P201,030 (P481,494) (P280,464) 7 7 7 7 7 7
*OHUNLPUZ[H[\ZVMYL[PYLTLU[WSHU – – – – – – – – –
Trade receivables KV 30,656  14,298  
Entities Under 5L[YL[PYLTLU[ILULÄ[ZL_WLUZLPUJVTL
Common 6[OLYYLJLP]HISLZ KV 73,199  16,590  PUWYVÄ[VYSVZZ!
Control +\LMYVTYLSH[LKWHY[PLZ 6UKLTHUK"UVUPU[LYLZ[ILHYPUN 127  778,948   *\YYLU[ZLY]PJLJVZ[ 10,478 (1,380) 9,098  –   – 
(K]HUJLZ[VZ\WWSPLYZ KV (2,035)  3,026  5L[PU[LYLZ[JVZ[ 7,389 (26,178) (18,789)        
>P[OHUU\HSYH[LZYHUNPUNMYVT 17,867 (27,558) (9,691)        
[VHUKTH[\YP[` *VU[YPI\[PVUZ (655) (3,620) (4,275) –   –  
Deposit liabilities YHUNPUNMYVTKH`Z[VVUL`LHY (916,094)   15,138,059  )LULÄ[ZWHPK (3,995) 3,995 –   –   –
(JJV\U[WH`HISLHUKV[OLY [V KH`Z[LYTZ"UVUPU[LYLZ[ 9LTLHZ\YLTLU[SVZZLZNHPUZPUV[OLY
liabilitites bearing (80,744)  (376,414)   JVTWYLOLUZP]LPUJVTLHJ[\HYPHS
JOHUNLZHYPZPUNMYVTJOHUNLZPU!
+\L[VYLSH[LKWHY[PLZ 6UKLTHUK"UVUPU[LYLZ[ILHYPUN 14,874  (50,000) 
-PUHUJPHSHZZ\TW[PVUZ 32,296 – 32,296  –   – 
[V KH`Z[LYTZ"UVUPU[LYLZ[
+LTVNYHWOPJHZZ\TW[PVUZ – (8,841) – – – – – – –
6[OLYWH`HISLZ bearing – – – –
,_WLYPLUJLHKQ\Z[TLU[Z 11,927 (911) 11,016       
(Z VM +LJLTILY    HUK  [OL V\[Z[HUKPUN YLSH[LK WHY[` ‹ ;OLWYVWLY[`KL]LSVWTLU[ZLNTLU[W\YJOHZLZWHYJLSZVMSHUKMYVT 44,223 (9,752) 34,471       
IHSHUJLZHYL\UZLJ\YLKHUKZL[[SLTLU[VJJ\YZPUJHZO\USLZZV[OLY^PZL V[OLYYLSH[LKWHY[PLZMVY\ZLPUP[Z]HYPV\ZWYVQLJ[Z ,UKPUNIHSHUJL P258,470 (P518,429) (P259,959) 7 7  7 7 7 7
PUKPJH[LK ;OL .YV\W OHZ UV[ YLJVYKLK HU` PTWHPYTLU[ VM YLJLP]HISLZ
YLSH[PUN [V HTV\U[Z V^LK I` YLSH[LK WHY[PLZ ;OPZ HZZLZZTLU[ PZ ‹ :L]LYHS LU[P[PLZ \UKLY JVTTVU JVU[YVS THPU[HPU WLZV HUK MVYLPNU
\UKLY[HRLULHJOÄUHUJPHS`LHY[OYV\NOL_HTPUPUN[OLÄUHUJPHSWVZP[PVUVM J\YYLUJ`KLUVTPUH[LKKLWVZP[ZHUKZOVY[[LYTHUKSVUN[LYTSVHUZ 5L[YL[PYLTLU[ILULÄ[ZSPHIPSP[PLZ!
[OLYLSH[LKWHY[PLZHUK[OLTHYRL[PU^OPJO[OLZLYLSH[LKWHY[PLZVWLYH[L ^P[O 75) 0U[LYLZ[ PUJVTL HUK ÄUHUJPUN JOHYNLZ YLSH[LK [V [OLZL
[YHUZHJ[PVUZ HYL YLWVY[LK \UKLY ¸)HURPUN YL]LU\L¹ HUK ¸*VZ[ VM  
6[OLY [LYTZ HUK JVUKP[PVUZ YLSH[LK [V [OL HIV]L YLSH[LK WHY[` IHSHUJLZ IHURPUNZLY]PJLZ¹YLZWLJ[P]LS`ZLL5V[L (ZYLZ[H[LK (ZYLZ[H[LK
HUK[YHUZHJ[PVUZHYLHZMVSSV^Z! 2019 5V[L 5V[L
 'HðQHG Accrued  (JJY\LK +LÄULK  (JJY\LK
Transactions with Tangent, parent company 23. 9L[PYLTLU[)LULÄ[Z  %HQHðW Fair Value of Retirement +LÄULK)LULÄ[  -HPY=HS\LVM  9L[PYLTLU[ )LULÄ[  -HPY=HS\LVM  9L[PYLTLU[
Obligations Plan Assets  %HQHðWV  6ISPNH[PVUZ  7SHU(ZZL[Z  )LULÄ[Z  6ISPNH[PVUZ  7SHU(ZZL[Z  )LULÄ[Z
‹ 6U(WYPS HUK4HYJO3;.KLJSHYLKJHZOKP]PKLUKZ ;OL .YV\W OHZ M\UKLK UVUJVU[YPI\[VY` KLÄULK ILULÄ[ YL[PYLTLU[ (In Thousands)
of 7 HUK 7 WLY ZOHYL [V HSS Z[VJROVSKLYZ VM YLJVYK HZ VM WSHUZ HKTPUPZ[LYLK I` H [Y\Z[LL JV]LYPUN HSS VM P[Z WLYTHULU[ Beginning balance P9,239,745 (P7,601,607) P1,631,868 7  7 7 7  7  7 
(WYPS  HUK4HYJOYLZWLJ[P]LS`VM^OPJO7IPSSPVU LTWSV`LLZ (Z VM +LJLTILY    HUK  [OL .YV\W PZ PU *OHUNLPUZ[H[\ZVMYL[PYLTLU[WSHU – – – – – – – – –
PU HUK7IPSSPVUPU^LYLWHPK[V;HUNLU[ JVTWSPHUJL ^P[O (Y[PJSL  VM [OL 3HIVY *VKL HZ HTLUKLK I` 5L[YL[PYLTLU[ILULÄ[ZJVZ[PUWYVÄ[VY
9LW\ISPJ(J[5V SVZZ!
Transactions with Associates  *\YYLU[ZLY]PJLJVZ[ 625,316 – 625,316   –    – 
+L[HPSZ VM [OL .YV\W»Z UL[ YL[PYLTLU[ WSHU HZZL[Z HUK SPHIPSP[PLZ HYL HZ  5L[PU[LYLZ[JVZ[ 542,042 (431,789) 110,253      
‹ +P]PKLUKPUJVTLMYVT74-;*HTV\U[LK[V7 IPSSPVUPU HUK MVSSV^Z!  7HZ[ZLY]PJLJVZ[ 3,774 – 3,774  –  – – –
7IPSSPVUPUZLL5V[L 1,171,132 (431,789) 739,343         
2019 
(In Thousands) *VU[YPI\[PVUZ (1,000) (1,904,683) (1,905,683) –     –    
‹ ;OL .YV\W W\YJOHZLZ YH^ TH[LYPHSZ Z\JO HZ YH^ HUK YLÄULK Z\NHY
)LULÄ[ZWHPKMYVTWSHUHZZL[Z (419,579) 419,579 –     –   –
HUKTVSHZZLZMYVT=4* 5L[YL[PYLTLU[WSHUHZZL[Z!
)LULÄ[ZWHPKKPYLJ[S`MYVTIVVRYLZLY]LZ (20,590) – (20,590)  –  – – –
 -;* P246,112 7
‹ ()0LU[LYLKPU[VHUVWLYH[PUNSLHZLHNYLLTLU[^P[O()/70[VSLHZL 9LTLHZ\YLTLU[SVZZLZNHPUZPUV[OLY
TDI 2,648  JVTWYLOLUZP]LPUJVTLHJ[\HYPHS
WVY[PVUZVMP[Z[^VIYL^LYPLZPU*HI\`HV3HN\UHHUK,S:HS]HKVY JOHUNLZHYPZPUNMYVTJOHUNLZPU!
 ((* Ě 
4PZHTPZ6YPLU[HSZ\IQLJ[[V[OL[LYTZHUKJVUKP[PVUZVMHUHZZL[
TBI 3,011 ò -PUHUJPHSHZZ\TW[PVUZ 1,322,604 – 1,322,604  –   – 
SLHZLHNYLLTLU[ZPNULKSHZ[5V]LTILY;OLSLHZLOHZH
+LTVNYHWOPJHZZ\TW[PVUZ (26,893) – (26,893)  –   – 
Ä_LK`LHYS`PUJYLHZLHZZWLJPÄLKPU[OLJVU[YHJ[(ZVM+LJLTILY  3;. 8,188 
 HUK[OLYLSH[LKYLU[YLJLP]HISLMVY[OLSLHZLVMSHUK ,_WLYPLUJLHKQ\Z[TLU[Z 69,174 (116,350) (47,176)        
P259,959 7
HTV\U[LK[V7TPSSPVUHUK7TPSSPVUYLZWLJ[P]LS` 1,364,885 (116,350) 1,248,535        
5L[YL[PYLTLU[ILULÄ[ZSPHIPSP[PLZ!
,UKPUNIHSHUJL P11,334,593 (P9,634,850) P1,699,743 7   7 7 7   7  7
‹ ()0 ZVSK PU]LU[VYPLZ [V () /70 HZPKL MYVT [OL UVUTVUL[HY` HZZL[Z  75)HUKZ\IZPKPHYPLZ P776,936 7
ZVSKVU5V]LTILYPUJS\KPUN^VYRPUWYVNYLZZHTV\U[PUN  ()0HUKZ\IZPKPHYPLZ 749,049 
to 7TPSSPVU0U HUK()0YLUKLYLKZLY]PJLZPUMH]VY  (+0 29,578  
VM ()/7 YLSH[LK [V Z\WWSPLZ IV[O PTWVY[LK HUK SVJHSS`W\YJOHZLK  ((* 15,452 ò
HK]LY[PZPUN L_WLUZL WYVTV[PVUZ WYVMLZZPVUHS MLLZ LUNPULLYPUN MLL  ,[VU 128,728 
HUKZOHYLKL_WLUZLZPU[OLWSHU[
P1,699,743 7
Transactions with Entities under Common Control

‹ +\L[VYLSH[LKWHY[PLZPUJS\KLJHZOHK]HUJLZWYV]PKLK[V[OL.YV\W[V
Z\WWVY[P[Z^VYRPUNJHWP[HSYLX\PYLTLU[Z

‹ :L]LYHS Z\IZPKPHYPLZ VM [OL .YV\W LU[LYLK PU[V THUHNLTLU[

ZLY]PJLZ HNYLLTLU[Z ^P[O )HZPJ /VSKPUNZ *VYWVYH[PVU MVY JLY[HPU
JVUZPKLYH[PVUZ 4HUHNLTLU[ MLLZ HYL YLJVYKLK \UKLY ¸6\[ZPKL
ZLY]PJLZ¹ PU ¸*VZ[ VM NVVKZ ZVSK¹ HUK ¸7YVMLZZPVUHS MLLZ¹ PU [OL
¸.LULYHSHUKHKTPUPZ[YH[P]LL_WLUZLZ¹

104 LT G R O U P, I N C . 2019 ANNUAL REPORT 105

 ;OLMHPY]HS\LVMWSHUHZZL[ZHZVM+LJLTILYPZHZMVSSV^Z! :OV^U ILSV^ PZ [OL TH[\YP[` HUHS`ZPZ VM [OL \UKPZJV\U[LK ILULÄ[ )HURPUNYL]LU\LJVUZPZ[ZVM!
WH`TLU[ZVM[OL.YV\W(in thousands)! 25. :LSSPUN,_WLUZLZ
2019 2019  
(In Thousands) 2019  (Z9LZ[H[LK (Z9LZ[H[LK 2019  
*HZOHUKJHZOLX\P]HSLU[Z P142,365 7 6UL`LHYHUKSLZZ 1,348,317  2019 5V[L 5V[L (In Thousands)
9LJLP]HISLZ 22,375  4VYL[OHUVUL`LHY\W[VÄ]L`LHYZ 5,106,816   (In Thousands) (K]LY[PZPUNHUKWYVTV[PVUZ P1,458,151 7 7
,X\P[`PU]LZ[TLU[Z! 4VYL[OHUÄ]L`LHYZ\W[V`LHYZ 4,775,894   0U[LYLZ[PUJVTLVU! -YLPNO[HUKOHUKSPUN 560,738   
4VYL[OHU`LHYZ\W[V`LHYZ 3,326,514   Loans and receivables P39,618,639 7   7
 -PUHUJPHSPUZ[P[\[PVUZ 313,744   +LWYLJPH[PVUHUKHTVY[PaH[PVU
4VYL[OHU`LHYZ 50,368,706  Trading and investment 5V[L 292,805  
 6[OLY  Ě 
ZLJ\YP[PLZ5V[L 9,425,264  
+LI[PU]LZ[TLU[Z! 4HUHNHTLU[JVUZ\S[PUNHUK
;OL .YV\W L_WLJ[Z [V JVU[YPI\[L 7 IPSSPVU [V [OL KLÄULK ILULÄ[ +LWVZP[Z^P[OIHURZHUKV[OLYZ 652,539   professional fees 170,507  
0U]LZ[TLU[PUWYP]H[LKLI[ZLJ\YP[PLZ 49,393   WLUZPVU WSHU PU  ;OL H]LYHNL K\YH[PVU VM [OL KLÄULK ILULÄ[ 0U[LYIHURSVHUZYLJLP]HISL 668,211     7LYZVUULSJVZ[Z 130,180  
0U]LZ[TLU[ZPUNV]LYUTLU[ZLJ\YP[PLZ 419,520   VISPNH[PVUZH[[OLLUKVM[OLYLWVY[PUNWLYPVKYHUNLMYVT`LHYZHZ
50,364,653   *VTTPZZPVUZ 101,545  
6[OLYZ  Ě    VM+LJLTILY HUK[V`LHYZHZVM+LJLTILY
Service fees and commission
9V`HS[PLZ 72,239   
-HPY]HS\LVMWSHUHZZL[Z P947,397 7 income 5,176,500     
;YHUZHJ[PVUZ^P[O9L[PYLTLU[7SHUZ -\LSHUKVPS 28,939    
4HUHNLTLU[VM[OLYL[PYLTLU[M\UKZVM[OLIHURPUNZLNTLU[PZOHUKSLK ;YHKPUNHUKZLJ\YP[PLZNHPUZUL[ 1,074,478   
;OLTHQVYJH[LNVYPLZVMWSHUHZZL[ZHZHWLYJLU[HNLVM[OLMHPY]HS\LVM 4H[LYPHSZHUKJVUZ\THISLZ 37,901   
[V[HSWSHUHZZL[ZHYLHZMVSSV^Z! I`[OL75);Y\Z[)HURPUN.YV\W;).;OLMHPY]HS\LVM[OLWSHUHZZL[Z P56,615,631 7 7
HZVM+LJLTILY HUKMVY[OL.YV\WPUJS\KLZPU]LZ[TLU[ZPU 9LWHPYZHUKTHPU[LUHUJL 32,860   
[OL75)ZOHYLZVMZ[VJR^P[OMHPY]HS\LHTV\U[PUN[V7TPSSPVUHUK :HSLVMJVUZ\TLYNVVKZJVUZPZ[ZVM! 6[OLYZ 125,559  
2019  7TPSSPVUJSHZZPÄLKHZÄUHUJPHSHZZL[ZH[-=;735VSPTP[H[PVUZHUK
P3,011,424 7 7 
*HZOHUKJHZOLX\P]HSLU[Z 15%  YLZ[YPJ[PVUZHYLWYV]PKLKHUK]V[PUNYPNO[ZV]LY[OLZLZOHYLZHYLL_LYJPZLK 2019  
9LJLP]HISLZ 2%  I`H[Y\Z[VѝJLYVYHU`VMP[ZKLZPNUH[LKHS[LYUH[LVѝJLYVM;). 6[OLYZ PUJS\KL VJJ\WHUJ` MLLZ M\LS HUK VPS PUZ\YHUJL KVUH[PVUZ
(In Thousands)
,X\P[`PU]LZ[TLU[Z 33%  TLTILYZOPWHUKZ\IZJYPW[PVUK\LZ^OPJOHYLPUKP]PK\HSS`UV[ZPNUPÄJHU[
(ZVM+LJLTILY HUKÄUHUJPHSHZZL[ZH[-=;73HUKH[ .YVZZZHSLZ P37,323,117 7 7 HZ[VHTV\U[Z
Debt investments 50%  HTVY[PaLK JVZ[Z PUJS\KL NV]LYUTLU[ HUK WYP]H[L KLI[ ZLJ\YP[PLZ HUK 3LZZZHSLZYL[\YUZKPZJV\U[ZHUK
-HPY]HS\LVMWSHUHZZL[Z 100%  ]HYPV\Z M\UKZ +LWVZP[Z ^P[O V[OLY IHURZ WLY[HPU [V :WLJPHS +LWVZP[ HSSV^HUJLZ 2,827,331   
(JJV\U[ZWSHJLTLU[^P[O):7 P34,495,786 7 7  26. .LULYHSHUK(KTPUPZ[YH[P]L,_WLUZLZ
2019  
+PZJV\U[YH[L 4.7%-5.1%   ;OLYL[PYLTLU[M\UKZVM[OLV[OLYJVTWHUPLZPU[OL.YV\WHYLTHPU[HPULK *VZ[VMNVVKZZVSKHUKZLY]PJLZJVUZPZ[ZVM!
I`75)HZ[OL[Y\Z[LLIHUR75)»ZYL[PYLTLU[M\UKZOH]LUVPU]LZ[TLU[Z 
-\[\YLZHSHY`PUJYLHZLZ 4.0%-8.0%   (Z9LZ[H[LK
PUKLI[VYLX\P[`ZLJ\YP[PLZVM[OLJVTWHUPLZPU[OL.YV\W
2019   2019  5V[L
(ZVM+LJLTILY [OLKPZJV\U[HUKM\[\YLZHSHY`PUJYLHZLYH[LZ
(In Thousands) (In Thousands)
HYLHUKYLZWLJ[P]LS`
24. 9L]LU\LHUK*VZ[VM.VVKZ:VSKHUK:LY]PJLZ *VZ[VMJVUZ\TLYNVVKZZVSK! 7LYZVUULSJVZ[Z P10,399,515 7 7 
;OLZLUZP[P]P[`HUHS`ZPZILSV^OHZILLUKL[LYTPULKIHZLKVUYLHZVUHIS`  4H[LYPHSZ\ZLKHUKJOHUNLZPU ;H_LZHUKSPJLUZLZ 5,113,559     
WVZZPISLJOHUNLZVMLHJOZPNUPÄJHU[HZZ\TW[PVUVU[OLKLÄULKILULÄ[ 9L]LU\LJVUZPZ[VM!  PU]LU[VYPLZ5V[L  P14,326,602 7  7 +LWYLJPH[PVUHUKHTVY[PaH[PVU
VISPNH[PVUZ HZ VM [OL LUK VM [OL YLWVY[PUN WLYPVK HZZ\TPUN HSS V[OLY  +LWYLJPH[PVUHUKHTVY[PaH[PVU 5V[LZHUK 3,052,122   
HZZ\TW[PVUZ^LYLOLSKJVUZ[HU[(in thousands)!    5V[L 1,578,423   7YV]PZPVUMVYJYLKP[SVZZLZ5V[L 2,459,444  
(Z9LZ[H[LK (Z9LZ[H[LK  -\LSHUKWV^LY 1,192,723   0UZ\YHUJL 1,874,192  
2019 5V[L 5V[L
2019   ;H_LZHUKSPJLUZLZ 6,141,929    6\[ZPKLZLY]PJLZ 1,860,478   
(In Thousands)
Increase (Decrease) 0UJYLHZL+LJYLHZL  7LYZVUULSJVZ[Z 959,764   4HYRL[PUNHUKWYVTV[PVUHS 1,141,243  
in Present PU7YLZLU[ )HURPUNYL]LU\L5V[L P56,615,631 7 7
 *VTT\UPJH[PVUSPNO[HUK^H[LY 820,024   6JJ\WHUJ` 1,040,989   
Change in 9DOXHRI'HðQHG *OHUNLPU =HS\LVM+LÄULK :HSLVMJVUZ\TLYNVVKZ 34,495,786   
rate %HQHðW2EOLJDWLRQV rate )LULÄ[6ISPNH[PVUZ  6\[ZPKLZLY]PJLZ 501,097    4HUHNLTLU[JVUZ\S[PUNHUK
9LU[HSPUJVTL5V[L 1,707,833   
 9LWHPYZHUKTHPU[LUHUJL 512,175    professional fees 1,031,532   
+PZJV\U[YH[LZ 0.50% (474,462)    9LHSLZ[H[LZHSLZ 1,424,598  
-0.50% (315,804)     -YLPNO[HUKOHUKSPUN 435,428    7VSPJ`OVSKLYILULÄ[ZHUKJSHPT
P94,243,848 7   7 ILULÄ[Z 909,975    
-\[\YLZHSHY`  6[OLYZ 530,317   
increases 1.00% (230,197)   0UMVYTH[PVU[LJOUVSVN` 818,896   
+PZZHNYLNH[LKYL]LU\LPUMVYTH[PVU 26,998,482   
-1.00% (537,972)   :L[ V\[ ILSV^ PZ [OL KPZHNNYLNH[PVU VM [OL .YV\W»Z YL]LU\LZ MYVT Travel and transportation 453,325  
*VZ[VMIHURPUNZLY]PJLZ 18,696,210   
JVU[YHJ[Z^P[OJ\Z[VTLYZHUKYL]LU\LZUV[JV]LYLK\UKLY7-9:MVY Litigation 326,588  
-\SS HJ[\HYPHS ]HS\H[PVUZ ^LYL WLYMVYTLK [V [LZ[ [OL ZLUZP[P]P[` VM [OL [OL`LHYLUKLK+LJLTILY (in thousands)!
*VZ[VMYLHSLZ[H[LZHSLZ5V[L  663,789   
*VTT\UPJH[PVUSPNO[HUK^H[LY 314,066  
KLÄULKILULÄ[VISPNH[PVU[VHPUJYLTLU[PUZHSHY`PUJYLHZLYH[L *VZ[VMYLU[HSPUJVTL5V[L 444,087  
KLJYLTLU[PU[OLKPZJV\U[YH[LHUKHPTWYV]LTLU[PU[OLLTWSV`LL 4H[LYPHSZHUKJVUZ\THISLZ 286,716  
*VZ[VMNVVKZZVSKHUKZLY]PJLZ P46,802,568 7  7  
[\YUV]LYYH[L;OLYLZ\S[ZHSZVWYV]PKLHNVVKLZ[PTH[LVM[OLZLUZP[P]P[` .VVKZ 9LWHPYZHUKTHPU[LUHUJL 230,192    
VM [OL KLÄULK ILULÄ[ VISPNH[PVU [V H  KLJYLTLU[ PU ZHSHY` PUJYLHZL Services 9L]LU\LZ
6[OLY L_WLUZLZ PUJS\KL PUZ\YHUJL \[PSP[PLZ HUK V\[ZPKL ZLY]PJLZ ^OPJO -YLPNO[HUKOHUKSPUN 78,884     
transferred Services V\[ZPKL[OL
YH[L  PUJYLTLU[ PU [OL KPZJV\U[ YH[L HUK H  PUJYLHZL PU [OL HYLPUKP]PK\HSS`UV[ZPNUPÄJHU[HZ[VHTV\U[Z -\LSHUKVPS 11,767  
at a point in transferred scope of
LTWSV`LL[\YUV]LYYH[LI\[^P[OYL]LYZLPTWHJ[ time over time 7-9: Total 7YV]PZPVUMVYYL]LYZHSVMSLNHSJHZLZ
:HSLVMJVUZ\TLYNVVKZ 7  7ò 7ò 7  *VZ[VMIHURPUNZLY]PJLZJVUZPZ[VM! HUKV[OLYSVZZLZUL[5V[LZ
;OL .YV\W LTWSV`Z HZZL[SPHIPSP[` TH[JOPUN Z[YH[LNPLZ [V TH_PTPaL HUK Ě  
Service fees and
PU]LZ[TLU[YL[\YUZH[[OLSLHZ[YPZR[VYLK\JLJVU[YPI\[PVUYLX\PYLTLU[Z commission income  ò ò  6[OLYZ 1,317,247  
2019  
^OPSLTHPU[HPUPUNHZ[HISLYL[PYLTLU[WSHU9L[PYLTLU[WSHUZHYLPU]LZ[LK
9LHSLZ[H[LZHSLZ ò   ò   (In Thousands) P32,720,730 7   7
[V LUZ\YL [OH[ SPX\PK M\UKZ HYL H]HPSHISL ^OLU ILULÄ[Z ILJVTL K\L
Interest income ò ò   0U[LYLZ[L_WLUZLVU!
[V TPUPTPaL SVZZLZ K\L [V PU]LZ[TLU[ WYL[LYTPUH[PVUZ HUK TH_PTPaL 6[OLYZPUJS\KLL_WLUZLP[LTZTHPUS`YLSH[PUN[VIHURPUNVWLYH[PVUZ^OPJO
9LU[HSPUJVTL ò ò  
VWWVY[\UP[PLZMVYOPNOLYWV[LU[PHSYL[\YUZH[[OLSLHZ[YPZR  +LWVZP[SPHIPSP[PLZ5V[L P13,577,503 7 7 HYLPUKP]PK\HSS`UV[ZPNUPÄJHU[HZ[VHTV\U[Z
;YHKPUNHUKZLJ\YP[PLZ
NHPUZUL[ ò ò    )PSSZWH`HISLHUKV[OLY 
;OL J\YYLU[ WSHU HZZL[ VM [OL .YV\W PZ HSSVJH[LK [V JV]LY ILULÄ[  IVYYV^PUNZ5V[LZHUK 2,185,046  
WH`TLU[ZPU[OLVYKLYVM[OLPYWYV_PTP[`[V[OLWYLZLU[[PTL,_WLJ[LK 7  7  7  7 
 )VUKZWH`HISL 1,945,497  –
ILULÄ[ WH`TLU[Z HYL WYVQLJ[LK HUK JSHZZPÄLK PU[V ZOVY[[LYT VY
Services fees and commission
SVUN[LYT SPHIPSP[PLZ  0U]LZ[TLU[ PUZ[Y\TLU[Z [OH[ ^V\SK TH[JO [OL  L_WLUZL 988,164   
SPHIPSP[PLZ HYL PKLU[PÄLK  ;OPZ Z[YH[LN` TPUPTPaLZ [OL WVZZPIPSP[` VM [OL
P18,696,210 7   7
HZZL[SPHIPSP[` TH[JO ILPUN KPZ[VY[LK K\L [V [OL .YV\W»Z MHPS\YL [V
JVU[YPI\[LPUHJJVYKHUJL^P[OP[ZNLULYHSM\UKPUNZ[YH[LN`

106 LT G R O U P, I N C . 2019 ANNUAL REPORT 107

  2019 
27. Finance Costs and Finance Income (Z9LZ[H[LK
2019  5V[L
Net Net  5L[  5L[
Deferred Deferred Deferred Deferred
+L[HPSZ VM ÄUHUJL JVZ[Z HUK ÄUHUJL PUJVTL V[OLY [OHU [OL IHURPUN (In Thousands)
Income Tax Income Tax  0UJVTL;H_  0UJVTL;H_
ZLNTLU[HYLHZMVSSV^Z! 4HYR[VTHYRL[NHPUVUÄUHUJPHS
Assets(1) Liabilities(2)  (ZZL[Z Liabilities
HZZL[ZKLZPNUH[LKH[-=;73
5V[L P17,800 7 7  (In Thousands)
2019  
9LMLYYHSWYVJLZZPUNHUK[Y\Z[MLLZ Ě   +PќLYLUJLIL[^LLU[H_HUKIVVRIHZPZVMHJJV\U[PUNMVYYLHSLZ[H[L
(In Thousands) .HPUVUKPZWVZHSVM(-:PU]LZ[TLU[Z Ě ò   HUKIHURPUN[YHUZHJ[PVUZ PĚ P– 7 7–
-PUHUJLJVZ[Z5V[L ! 6[OLYZ 473,477   ,_JLZZ4*0;  Ě –  –
:OVY[[LYTKLI[Z P166,018 7 7ò P3,995,302 7  7 <UHTVY[PaLKWHZ[ZLY]PJLJVZ[ 4,474 5,703  
<UZLJ\YLK[LYTSVHUHUKUV[LZ
WH`HISL5V[L 284,823    H 5L[NHPUZVUZHSLVYL_JOHUNLVMHZZL[ZPUJS\KLZHSLVMPU]LZ[TLU[ 9LZLY]LMVY\ULHYULKWYLTP\TZ  Ě – – –
P450,841 7 7  WYVWLY[PLZVM[OLIHURPUNZLNTLU[PU HUKHTV\U[PUN 563*6  Ě – – –
to 7TPSSPVU7TPSSPVUHUK7TPSSPVUYLZWLJ[P]LS` 7YV]PZPVUMVYSVZZLZ  Ě – – –
-PUHUJLPUJVTL
<UYLHSPaLKMVYL_SVZZLZ 104 4,811 – –
 *HZOHUKV[OLYJHZOP[LTZ I 6[OLYZ PUJS\KL PUJVTL HUK L_WLUZL P[LTZ THPUS` YLSH[PUN [V IHURPUN
  5V[L 146,253    +PќLYLUJLIL[^LLUYPNO[VM\ZLHZZL[ZHUKSLHZLSPHIPSP[PLZ 1,044 74,090 – –
VWLYH[PVUZ^OPJOHYLPUKP]PK\HSS`UV[ZPNUPÄJHU[HZ[VHTV\U[Z
 0U[LYLZ[ILHYPUNJVU[YHJ[Z 8,383,482 543,591    
 YLJLP]HISL5V[L ò   'HIHUUHGLQFRPHWD[OLDELOLWLHVRQ
 -=;735V[L ò  
29. 0UJVTL;H_LZ -HPY]HS\LNHPUVUPU]LZ[TLU[WYVWLY[PLZ (1,164,193) –  
 (-:PU]LZ[TLU[Z5V[L ò ò 
,_JLZZVMMHPY]HS\LZV]LYJHYY`PUN]HS\LZVMWYVWLY[`WSHU[HUK
P146,253 7 7 0UJVTL [H_LZ PUJS\KL [OL JVYWVYH[L PUJVTL [H_ ^OPJO PZ KPZJ\ZZLK LX\PWTLU[HJX\PYLK[OYV\NOI\ZPULZZJVTIPUH[PVU (405,545) (30,354)   
ILSV^ HUK ÄUHS [H_LZ WHPK ^OPJO YLWYLZLU[Z ÄUHS ^P[OOVSKPUN [H_ VU .HPUVUYLTLHZ\YLTLU[VMHWYL]PV\ZS`OLSKPU[LYLZ[ (164,429) –   –
NYVZZ PU[LYLZ[ PUJVTL MYVT NV]LYUTLU[ ZLJ\YP[PLZ HUK V[OLY KLWVZP[
28. 6[OLY0UJVTL*OHYNLZ <UYLHSPaLKMVYLPNUL_JOHUNLNHPUZ (329,047) (11,995)   
Z\IZ[P[\[LZ HUK PUJVTL MYVT [OL -*+< [YHUZHJ[PVUZ  ;OLZL PUJVTL
[H_LZHZ^LSSHZ[OLKLMLYYLK[H_ILULÄ[ZHUKWYV]PZPVUZHYLWYLZLU[LK )VYYV^PUNJVZ[JHWP[HSPaLK[VWYVWLY[`WSHU[HUKLX\PWTLU[ (3,175) (108,728)   
 HZ¸7YV]PZPVUMVYPUJVTL[H_¹PU[OLJVUZVSPKH[LKZ[H[LTLU[ZVMPUJVTL Deferred rental income (2,536) (99,844)  
(Z9LZ[H[LK
2019  5V[L
+PќLYLUJLIL[^LLU[H_HUKIVVRIHZPZVMHJJV\U[PUNMVYYLHSLZ[H[L
<UKLY7OPSPWWPUL[H_SH^Z75)HUKP[ZJLY[HPUZ\IZPKPHYPLZHYLZ\IQLJ[ transactions (6,976) (37,189)  –
(In Thousands) [V WLYJLU[HNL HUK V[OLY [H_LZ WYLZLU[LK HZ ¸;H_LZ HUK 3PJLUZLZ¹
5L[PUZ\YHUJLWYLTP\T P1,151,705 7  7 <UHTVY[PaLKKLI[JVZ[ – (5,600)  –
PU [OL JVUZVSPKH[LK Z[H[LTLU[Z VM PUJVTL HZ ^LSS HZ PUJVTL [H_LZ
9LU[HSPUJVTLHUKK\LZ5V[L 892,391     7LYJLU[HNLHUKV[OLY[H_LZWHPKJVUZPZ[WYPUJPWHSS`VMNYVZZYLJLPW[Z[H_ .HPUVUHZZL[ZOHYLZ^HW – (443,110) – 
5L[NHPUZVUZHSLVYL_JOHUNLVM HUKKVJ\TLU[HY`Z[HTW[H_ 5L[YL[PYLTLU[WSHUHZZL[Z 771 (116,939) – 
assets 814,920   5L[JOHUNLZPUMHPY]HS\LZVM-=;73ÄUHUJPHSHZZL[Z (78,637)  Ě –  
4HYRL[PUNHSSV^HUJLHUKPUJVTL -*+<VќZOVYLPUJVTLPUJVTLMYVTUVUYLZPKLU[ZPZ[H_L_LTW[^OPSL 6[OLYZ (54,335) (32,415)      
MYVT^PYL[YHUZMLYZ 344,090    NYVZZVUZOVYLPUJVTLPUJVTLMYVTYLZPKLU[ZPZNLULYHSS`Z\IQLJ[[V
(2,208,102) (886,174)  
9VVTZHUKV[OLYVWLYH[LK PUJVTL[H_0UHKKP[PVUPU[LYLZ[PUJVTLVUKLWVZP[WSHJLTLU[^P[OV[OLY
departments 181,862   -*+<ZHUKVќZOVYLIHURPUN\UP[Z6)<ZPZ[H_LKH[9LW\ISPJ 6,175,380 (342,583)   
Dividend income 145,704   (J[5V  HUHJ[YLZ[VYPUN[OL[H_L_LTW[PVUVM6)<ZHUK-*+<Z
9L]LYZHSVMWYV]PZPVUMVYL_WLJ[LK WYV]PKLZ [OH[ [OL PUJVTL KLYP]LK I` [OL -*+< MYVT MVYLPNU J\YYLUJ` 9LJVNUPaLKKPYLJ[S`PULX\P[`!
credit loss (142,017) ò ò [YHUZHJ[PVUZ^P[OUVUYLZPKLU[Z6)<ZSVJHSJVTTLYJPHSIHURZPUJS\KPUN 'HIHUUHGLQFRPHWD[DVVHWVRQ
9LJV]LYPLZMYVTJOHYNLKVќHZZL[Z 76,362   IYHUJOLZVMMVYLPNUIHURZPZ[H_L_LTW[^OPSLPU[LYLZ[PUJVTLVUMVYLPNU 9LTLHZ\YLTLU[SVZZLZVUYL[PYLTLU[ILULÄ[Z 2,524 45,108 – 
Management fees 24,170    J\YYLUJ` SVHUZ MYVT YLZPKLU[Z V[OLY [OHU 6)<Z VY V[OLY KLWVZP[VY`
'HIHUUHGLQFRPHWD[OLDELOLWLHVRQ
.HPUVUYL[PYLTLU[ 14,838   IHURZ\UKLY[OLL_WHUKLKZ`Z[LTPZZ\IQLJ[[VPUJVTL[H_
9L]HS\H[PVUPUJYLTLU[VUWYVWLY[`WSHU[HUKLX\PWTLU[ (3,777,969) (8,065,255)   
-VY^HYK
9LTLHZ\YLTLU[NHPUZVUKLÄULKILULÄ[WSHUZ (13,264) (53,084)  
H +L[HPSZVM[OL.YV\W»ZKLMLYYLKPUJVTL[H_HZZL[ZHUKSPHIPSP[PLZHZVM+LJLTILYMVSSV^! <UYLHSPaLKNHPUZVUJOHUNLZPUMHPY]HS\LVMÄUHUJPHSHZZL[ZH[-=;6*0 – (94,314) – 
(3,791,233) (8,212,653)   
2019  (3,788,709) (8,167,545)    
Net Net  5L[  5L[ P2,386,671 (P8,510,128) 7  7
Deferred Deferred Deferred Deferred  Pertain to IPI, ADI, Eton and PNB
Income Tax Income Tax  0UJVTL;H_  0UJVTL;H_  7LY[HPU[V3;.:H[\YU730((*;+0()07>0HUK-;*
Assets(1) Liabilities(2)  (ZZL[Z Liabilities  7LY[HPU[V7>0070(+0,[VUHUK75)
(In Thousands)  7LY[HPU[V3;.:H[\YU730((*;+0()0HUK-;*
9LJVNUPaLKKPYLJ[S`PU[OLJVUZVSPKH[LKZ[H[LTLU[ZVMPUJVTL!
'HIHUUHGLQFRPHWD[DVVHWVRQ I 7YV]PZPVUMVYJ\YYLU[PUJVTL[H_JVUZPZ[ZVM!
(SSV^HUJLMVYPTWHPYTLU[SVZZVU!
9LJLP]HISLZ P5,764,478 P97,356 7  7
2019   2019 
(In Thousands) (In Thousands)
Inventories 1,440 1,223  
9*0; P2,711,115 7   7   (SSV^HUJLMVYJYLKP[SVZZLZ P7,512,006 7
7YVWLY[`WSHU[HUKLX\PWTLU[ – 50,202 –  4*0; 2,251  
(JJY\LKL_WLUZLZ 58,711 
(JJ\T\SH[LKKLWYLJPH[PVUVUPU]LZ[TLU[WYVWLY[PLZ 836,233 (14,700)  – -PUHS[H_ 1,497,485   
5L[YL[PYLTLU[ILULÄ[ZSPHIPSP[` 819,428 
<UYLHSPaLKSVZZLZVU! 7YV]PZPVUMVYJ\YYLU[PUJVTL[H_ P4,210,851 7  7
<UYLHSPaLKSVZZVU(-:PU]LZ[TLU[Z – 
Inventories on hand – 4,603
J (ZVM+LJLTILY HUK[OL.YV\WOHZUV[YLJVNUPaLK Derivative liabilities 180,759  
 :HSLVMWYVWLY[`[VHZ\IZPKPHY` 384,523 4,529  – KLMLYYLK PUJVTL [H_ HZZL[Z VU JLY[HPU KLK\J[PISL [LTWVYHY` <UHTVY[PaLKWHZ[ZLY]PJLJVZ[ 1,908,144 
 -PUHUJPHSHZZL[ZH[-=73HUKH[-=;6*0 29,450 –   – KPќLYLUJLZ Z\JO HZ 563*6 L_JLZZ 4*0; HUK V[OLY P[LTZ IHZLK
Deferred rent income 234,397 –  – VU[OLHZZLZZTLU[[OH[Z\ѝJPLU[[H_HISLWYVÄ[^PSSUV[ILH]HPSHISL[V (SSV^HUJLMVYPU]LU[VY`VIZVSLZJLUJL 9,938  
5L[YL[PYLTLU[ILULÄ[ZSPHIPSP[PLZ 586,029 262,478    HSSV^[OLKLMLYYLKPUJVTL[H_HZZL[Z[VIL\[PSPaLKHZMVSSV^Z! 563*6 543,149 
9LZLY]LZHUKV[OLYZ 47,379 1,872    ,_JLZZ4*0; 7,314 
+LMLYYLKYLU[L_WLUZL  Ě 52   6[OLYZ 261,182 
(K]HUJLYLU[HSZ 5,609 32,147    –
(JJY\LKL_WLUZLZ 488,322 19,225   –
+PќLYLUJLIL[^LLUHJJV\U[PUNHUK[H_JHYY`PUNHTV\U[VMWYVWLY[`
WSHU[HUKLX\PWTLU[  Ě  Ě  –
-VY^HYK

108 LT G R O U P, I N C . 2019 ANNUAL REPORT 109

 +L[HPSZVM[OL.YV\W»Z563*6MVSSV^(in thousands)! I ;YHJRYLJVYKVMYLNPZ[YH[PVU! 6[OLY,X\P[`9LZLY]LZ :OHYLZVM:[VJRVM[OL*VTWHU`/LSKI`:\IZPKPHYPLZ
6[OLY LX\P[` YLZLY]LZ HZ H[ +LJLTILY    HUK  JVUZPZ[ VM :OHYLZ OLSK I` Z\IZPKPHYPLZ PUJS\KL   TPSSPVU ZOHYLZ V^ULK I` (SS
@LHY0UJ\YYLK  (TV\U[  (WWSPLK  ,_WPYLK Balance  ,_WPY`@LHY
(in thousands)! :LHZVUZHTV\U[PUN[V7TPSSPVUHZVM+LJLTILY HUK
5\TILYVM:OHYLZ
HUKTPSSPVUZOHYLZV^ULKI`:H[\YUHTV\U[PUN[V7 TPSSPVUHZ
 7  7– 7 7  5( Date Licensed 0ZZ\L6ќLY7YPJL
VM+LJLTILY6U1\S`[OLZOHYLZVMZ[VJRZV^ULK
     ò  (\N\Z[   7 2019 
I` :H[\YU ^LYL ZVSK [V ;HUNLU[ H[ 7 WLY ZOHYL  (Z H YLZ\S[ [OL
  – ò   5V]LTILY    ,X\P[`HKQ\Z[TLU[ZHYPZPUNMYVT L_JLZZVM[OLZLSSPUNWYPJLV]LY[OLJVZ[VM[OL[YLHZ\Y`ZOHYLZHTV\U[PUN
     ò   I\ZPULZZJVTIPUH[PVU\UKLY to 7 TPSSPVUPZWYLZLU[LKHZHUHKKP[PVU[VV[OLYLX\P[`YLZLY]LZ
+LJLTILY   
    ò ò    JVTTVUJVU[YVS5V[L P445,113 7
4HYJO   
7  7 7 7 ,X\P[`HKQ\Z[TLU[ZMYVTZHSLVM[OL
4HYJO   
*VTWHU`»ZZOHYLZVMZ[VJROLSKI`
+L[HPSZVM[OL.YV\W»Z4*0;MVSSV^(in thousands)! 6J[VILY    HZ\IZPKPHY` 413,769  
6J[VILY    ,ќLJ[VM[YHUZHJ[PVU^P[O
@LHY0UJ\YYLK  (TV\U[  (WWSPLK  ,_WPYLK Balance  ,_WPY`@LHY (WYPS   UVUJVU[YVSSPUNPU[LYLZ[ 66,658 
 7 7– 7 7ò  ,ќLJ[VMZHSLVMHZ\IZPKPHY`[V
    ò   
0U(WYPS3;.PZZ\LK7TPSSPVUZOHYLZMVY7IPSSPVU
^OLYL L_JLZZ V]LY WHY ]HS\L HTV\U[PUN [V 7  IPSSPVU ^HZ *VTWHU` 99,655 
      ò  
YLJVYKLKHZJHWP[HSPUL_JLZZVMWHY:[VJRPZZ\LJVZ[ZHTV\U[PUN ,ќLJ[VMZHSLVMKPYLJ[PU[LYLZ[PUH
  – ò  
to 7IPSSPVU^LYLJOHYNLKHNHPUZ[JHWP[HSPUL_JLZZVMWHYPU Z\IZPKPHY` (543) 
7  7 7 7 6[OLY VќLYPUNYLSH[LK L_WLUZLZ HTV\U[PUN [V 7  TPSSPVU ^LYL
P1,024,652 7 
JOHYNLKKPYLJ[S`[V¸.LULYHSHUKHKTPUPZ[YH[P]LL_WLUZLZ¹
K ( YLJVUJPSPH[PVU VM [OL .YV\W»Z WYV]PZPVU MVY PUJVTL [H_ JVTW\[LK
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H 6U 4HYJO   3;.»Z )6+ HWWYV]LK [OL KLJSHYH[PVU HUK 5VUJVU[YVSSPUN0U[LYLZ[Z
[V[OLWYV]PZPVUMVYPUJVTL[H_ZOV^UPU[OLJVUZVSPKH[LKZ[H[LTLU[Z
KPZ[YPI\[PVUVMYLN\SHYJHZOKP]PKLUKZVM7WLYZOHYLHUKZWLJPHS )LSV^HYL[OLJOHUNLZPUUVUJVU[YVSSPUNPU[LYLZ[Z!
VMPUJVTLPZHZMVSSV^Z!
cash dividends of 7WLYZOHYLVYH[V[HSVM7TPSSPVU[V
HSSZ[VJROVSKLYZVMYLJVYKHZVM4HYJO[VILWHPKUV[SH[LY
2019  
2019   [OHU(WYPS
(In Thousands)
(In Thousands)
I 6U (WYPS    3;.»Z )6+ HWWYV]LK [OL KLJSHYH[PVU HUK )HSHUJLHZVM1HU\HY`HZWYL]PV\ZS`YLWVY[LK P58,223,689 7  7 
7YV]PZPVUMVYPUJVTL[H_H[
Z[H[\[VY`PUJVTL[H_YH[L KPZ[YPI\[PVUVMYLN\SHYJHZOKP]PKLUKZVM7WLYZOHYLHUKZWLJPHS ,ќLJ[VMHKVW[PVUVM!
MYVT! cash dividends of 7WLYZOHYLVYH[V[HSVM7TPSSPVU[V  7-9:  Ě  –
HSSZ[VJROVSKLYZVMYLJVYKHZVM(WYPS  [VILWHPKUV[SH[LY  7-9:  Ě  –
 *VU[PU\PUNVWLYH[PVUZ P7,586,748 7  7 [OHU4H`  
(KQ\Z[TLU[ZYLZ\S[PUNMYVT! )HSHUJLHZVM1HU\HY`HZHKQ\Z[LK 58,223,689   
,X\P[`PUUL[LHYUPUNZVM J 9L[HPULK LHYUPUNZ PUJS\KL \UKPZ[YPI\[LK LHYUPUNZ HTV\U[PUN [V 5L[PUJVTLH[[YPI\[HISL[VUVUJVU[YVSSPUNPU[LYLZ[Z 4,448,233   
associates 217,708    7IPSSPVUPU 7IPSSPVUPUHUK7IPSSPVUPU :OHYLPUV[OLYJVTWYLOLUZP]LPUJVTLUL[VMKLMLYYLKPUJVTL[H_LќLJ[!
0UJVTLZ\IQLJ[LK[VÄUHS[H_ (1,103,293)      YLWYLZLU[PUNHJJ\T\SH[LKLHYUPUNZVMZ\IZPKPHYPLZHUKLX\P[`PUUL[  9L]HS\H[PVUPUJYLTLU[VUWYVWLY[`WSHU[HUKLX\PWTLU[ (170,223)  –
5VU[H_HISLPUJVTL (3,708,409)    LHYUPUNZVMHZZVJPH[LZHUKQVPU[]LU[\YLZ^OPJOHYLUV[H]HPSHISL  *\T\SH[P]L[YHUZSH[PVUHKQ\Z[TLU[Z (456,101)  
MVYKP]PKLUKKLJSHYH[PVU\U[PSYLJLP]LKPU[OLMVYTVMKP]PKLUKZMYVT
 5VUKLK\J[PISLL_WLUZLZ 1,711,882   [OLJVTIPUPUNLU[P[PLZHUKHZZVJPH[LZ9L[HPULKLHYUPUNZH]HPSHISL  9LTLHZ\YLTLU[NHPUZSVZZLZVUKLÄULKILULÄ[WSHUZ5V[LZHUK (305,881)   
5VUKLK\J[PISLKLÄJPLUJ` MVY KP]PKLUK KLJSHYH[PVU HZ H[ +LJLTILY    HTV\U[LK [V  5L[JOHUNLZPU(-:PU]LZ[TLU[Z5V[L 2,805,235  
[H_LZ 25,904  ò ò 7IPSSPVU  :OHYLPUYLTLHZ\YLTLU[NHPUVUKLÄULKILULÄ[WSHUZVMHZZVJPH[LZ – – 
,ќLJ[VMH]HPSTLU[VM0;/ (51,911)  ò ò 9LZLY]LZVMKPZWVZHSNYV\WJSHZZPÄLKHZOLSKMVYZHSL –  –
563*6HUKV[OLYKLK\J[PISL 9L[HPULKLHYUPUNZHYLM\Y[OLYYLZ[YPJ[LKMVY[OLWH`TLU[VMKP]PKLUKZ Dividends received (3,372)   –
[LTWVYHY`KPќLYLUJLZMVY [V[OLL_[LU[VM[OLJVZ[VM[OLZOHYLZOLSKPU[YLHZ\Y`ZOHYLZVMZ[VJR
VM [OL JVTWHU` OLSK I` Z\IZPKPHYPLZ \UYLHSPaLK MVYLPNU L_JOHUNL (JX\PZP[PVUVMZOHYLZVMZ\IZPKPHYPLZMYVT[OL*VU[YVSSPUN:OHYLOVSKLYZ 2,539,185 – –
^OPJOUVKLMLYYLKPUJVTL
[H_HZZL[Z^LYLYLJVNUPaLK NHPUZ L_JLW[ [OVZL H[[YPI\[HISL [V JHZO HUK JHZO LX\P]HSLU[Z MHPY 6[OLYLX\P[`YLZLY]LZ 5,264
PUJ\YYLU[`LHY (875,332)   ]HS\L HKQ\Z[TLU[ VY NHPUZ HYPZPUN MYVT THYR[VTHYRL[ ]HS\H[PVU Balance as of December 31 P67,086,029 7 7 
KLMLYYLKPUJVTL[H_HZZL[ZYLJVNUPaLK[OH[YLK\JLK[OLPUJVTL[H_
(WWSPJH[PVUVM563*6HUK
L_WLUZLHUKPUJYLHZLKUL[PUJVTLHUKYL[HPULKLHYUPUNZHUKV[OLY
V[OLYKLK\J[PISL[LTWVYHY` 31. )HZPJ+PS\[LK,HYUPUNZ7LY:OHYL
\UYLHSPaLKNHPUZVYHKQ\Z[TLU[ZHZVM+LJLTILY HUK
KPќLYLUJLZMVY^OPJOUV
KLMLYYLKPUJVTL[H_HZZL[Z ;OLMVSSV^PUN[HISLZYLÅLJ[[OLUL[PUJVTLHUKZOHYLKH[H\ZLKPU[OLLHYUPUNZWLYZOHYLJVTW\[H[PVUZ!
7YLMLYYLK:OHYLZVM:\IZPKPHYPLZPZZ\LK[V7HYLU[*VTWHU`
^LYLYLJVNUPaLKPUWYPVY
6U4HYJO[OLYLZWLJ[P]L)6+»ZHUKZ[VJROVSKLYZVM]HYPV\Z
`LHYZ (24,949)    )HZPJKPS\[LKLHYUPUNZWLYZOHYL^LYLJHSJ\SH[LKHZMVSSV^Z!
)HUR /VSKPUN *VTWHUPLZ HWWYV]LK [OL PUJYLHZL PU [OLPY H\[OVYPaLK
+PќLYLUJLVMP[LTPaLK JHWP[HSZ[VJRZJVTWYPZPUNVMJVTTVUZOHYLZHUKWYLMLYYLKZOHYLZ^P[O
KLK\J[PVUHNHPUZ[VM WHY ]HS\L VM 7 WLY ZOHYL ;OL WYLMLYYLK ZOHYLZ ^LYL Z\IZJYPILK
[H_HISLPUJVTL (51,750) –   I` ;HUNLU[ [OYV\NO JVU]LYZPVU VM P[Z HK]HUJLZ PU[V PU]LZ[TLU[Z PU 2019   32. -PUHUJPHS9PZR4HUHNLTLU[6IQLJ[P]LZHUK7VSPJPLZ
6[OLYZ (29,284)   – JLY[HPU)HUR/VSKPUN*VTWHUPLZZLL5V[L<WVUHWWYV]HSVM[OL (In Thousands)
7YV]PZPVUMVYPUJVTL[H_ P3,697,314 7  7  7OPSPWWPUL:,*VM[OLPUJYLHZLPUH\[OVYPaLKJHWP[HSZ[VJRVM)HUR/VSKPUN 5L[PUJVTLH[[YPI\[HISL ;OL .YV\W»Z ÄUHUJPHS YPZR THUHNLTLU[ Z[YH[LNPLZ HYL OHUKSLK VU H
*VTWHUPLZVU]HYPV\ZKH[LZPU6J[VILY5V]LTILYHUK+LJLTILY [VLX\P[`OVSKLYZVM[OL NYV\W^PKLIHZPZZPKLI`ZPKL^P[O[OVZLVM[OLV[OLYYLSH[LKJVTWHUPLZ
WYLMLYYLK ZOHYLZ HTV\U[PUN [V 7 IPSSPVU WYLZLU[LK \UKLY ¸7YLMLYYLK *VTWHU` P23,117,524 7  7 ^P[OPU [OL .YV\W ;OL .YV\W»Z THUHNLTLU[ HUK [OL )6+ VM [OL
30. ,X\P[` ZOHYLZVMZ\IZPKPHY`PZZ\LK[V7HYLU[*VTWHU`¹^LYLPZZ\LK[V;HUNLU[ ]HYPV\Z JVTWHUPLZ JVTWYPZPUN [OL .YV\W YL]PL^ HUK HWWYV]L WVSPJPLZ
<UPZZ\LKWYLMLYYLKZOHYLZHTV\U[PUN[V7IPSSPVU^OPJOHYLWLUKPUN +P]PKLKI`^LPNO[LK MVYTHUHNPUN[OLZLYPZRZ4HUHNLTLU[JSVZLS`TVUP[VYZ[OLM\UKZHUK
*HWP[HS:[VJR HWWYV]HSVM[OL7OPSPWWPUL:,*HYLWYLZLU[LK\UKLY¸+LWVZP[MVYM\[\YL H]LYHNLU\TILYVM ÄUHUJPHS[YHUZHJ[PVUZVM[OL.YV\W
(\[OVYPaLKHUKPZZ\LKJHWP[HSZ[VJRVM[OL*VTWHU`HYLHZMVSSV^Z! Z[VJR Z\IZJYPW[PVU¹ HZ VM +LJLTILY   <WVU HWWYV]HS VM [OL shares 10,821,389  
7OPSPWWPUL:,*VU]HYPV\ZKH[LZPU[OLYLTHPUPUNWYLMLYYLKZOHYLZ )HZPJKPS\[LK,7:MVYUL[ Financial Risk Management Objectives and Policies of the
of 7IPSSPVUHUKHKKP[PVUHSJVU]LYZPVUVMHK]HUJLZ[VWYLMLYYLKZOHYLZ PUJVTLH[[YPI\[HISL[V Banking Segment
(\[OVYPaLKJHWP[HSZ[VJRH[7WHY]HS\L
K\YPUN[OL`LHYVM7IPSSPVU^LYLPZZ\LK[V;HUNLU[(ZVM+LJLTILY LX\P[`OVSKLYZVM[OL
 ([ILNPUUPUNHUKLUKVM`LHY ZOHYLZ   HUK  WYLMLYYLK ZOHYLZ VM [OL Z\IZPKPHY` PZZ\LK [V [OL *VTWHU` P2.14 7 7 9PZR4HUHNLTLU[:[YH[LNPLZ
0ZZ\LKJHWP[HSZ[VJRH[7WHY]HS\L! 7HYLU[*VTWHU`HTV\U[LK[V7IPSSPVU ;OL.YV\W»ZIHURPUNHJ[P]P[PLZHYLWYPUJPWHSS`YLSH[LK[V[OLKL]LSVWTLU[
 ([ILNPUUPUNHUKLUKVM`LHY 7 ;OLYLHYLUVWV[LU[PHSJVTTVUZOHYLZ^P[OKPS\[P]LLќLJ[VU[OLIHZPJ
KLSP]LY`ZLY]PJPUNHUK\ZLVMÄUHUJPHSPUZ[Y\TLU[Z9PZRPZPUOLYLU[PU[OLZL
;OL WYLMLYYLK ZOHYLZ OH]L [OL MVSSV^PUN MLH[\YLZ! UVU]V[PUN LHYUPUNZWLYZOHYLPU HUK
HJ[P]P[PLZI\[P[PZTHUHNLK[OYV\NOHWYVJLZZVMVUNVPUNPKLU[PÄJH[PVU
H *HWP[HS Z[VJR PZ OLSK I` H [V[HS VM  HUK  Z[VJROVSKLYZ HZ VM UVUJ\T\SH[P]LHUKUVUWHY[PJPWH[PUNHZ[VKP]PKLUKZUVUYLKLLTHISL TLHZ\YLTLU[ HUK TVUP[VYPUN Z\IQLJ[ [V YPZR SPTP[Z HUK V[OLY JVU[YVSZ
+LJLTILY HUKYLZWLJ[P]LS` MVYHWLYPVKVMZL]LU`LHYZMYVT[OLPZZ\HUJLHUKYLKLLTHISLH[[OL ;OPZ WYVJLZZ VM YPZR THUHNLTLU[ PZ JYP[PJHS [V [OL .YV\W»Z IHURPUN
VW[PVU VM [OL )HUR /VSKPUN *VTWHUPLZ HM[LY ZL]LU `LHYZ MYVT [OL ZLNTLU[JVU[PU\PUNWYVÄ[HIPSP[`
PZZ\HUJL[OLYLVM

110 LT G R O U P, I N C . 2019 ANNUAL REPORT 111

 ;OL.YV\WTVUP[VYZP[ZWYVJLZZLZHZZVJPH[LK^P[O[OLMVSSV^PUNV]LYHSS L JVUJLU[YH[PVU YPZR WLY JSHZZPÄLK HJJV\U[ WLY PUK\Z[Y` JSLHU *VUZVSPKH[LK(Z9LZ[H[LK5V[L J *VUJLU[YH[PVUI`0UK\Z[Y`
YPZRJH[LNVYPLZ! L_WVZ\YLSHYNLL_WVZ\YLJVU[PUNLU[L_WVZ\YLJ\YYLUJ`ZLJ\YP[`   ;OL [HISL ILSV^ ZOV^ [OL PUK\Z[Y` ZLJ[VY HUHS`ZPZ VM [OL IHURPUN
MHJPSP[`KLTVNYHWOPJL[J -PUHUJPHS ZLNTLU[»ZÄUHUJPHSHZZL[ZH[HTV\U[ZILMVYL[HRPUNPU[VHJJV\U[[OL
‹ *YLKP[9PZR 4H_PT\T -HPY=HS\LVM 5L[ ,ќLJ[VM MHPY]HS\LVM[OLSVHUJVSSH[LYHSOLSKVYV[OLYJYLKP[LUOHUJLTLU[Z!
‹ 4HYRL[9PZR ;OL.YV\WMVSSV^Z[OL)6+HWWYV]LKWVSPJ`VU[OLNLULYPJJSHZZPÄJH[PVU ,_WVZ\YL *VSSH[LYHS ,_WVZ\YL *VSSH[LYHS
‹ 3PX\PKP[`9PZR VMSVHUZIHZLKVU[OL[`WLVMIVYYV^LYZHUK[OLW\YWVZLVM[OLSVHU :LJ\YP[PLZOLSK\UKLY 7 7   7 7   2019
‹ 6WLYH[PVUHS9PZR agreements to resell
Credit-related commitments Trading and Other
3VHUZHUKYLJLP]HISLZ!
Loans and investment ðQDQFLDO
-\Y[OLY [OL .YV\W PZ HSZV JVNUPaHU[ VM [OL ULLK [V HKKYLZZ ]HYPV\Z ;OL L_WVZ\YLZ YLWYLZLU[ N\HYHU[LLZ Z[HUKI` SL[[LYZ VM JYLKP[ 3*Z  9LJLP]HISLZMYVT receivables* securities assets*** Total
V[OLYYPZRZ[OYV\NO[OLWYPTHY`KP]PZPVUZWYLZLU[LKHIV]L;OLMVSSV^PUN PZZ\LK I` 75) HUK KVJ\TLU[HY`JVTTLYJPHS 3*Z ^OPJO HYL ^YP[[LU   J\Z[VTLYZ!
(In Millions)
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;V TP[PNH[L [OPZ YPZR 75) YLX\PYLZ OHYK JVSSH[LYHSZ HZ KPZJ\ZZLK \UKLY  -PUHUJPHSPU[LYTLKPHYPLZ P106,952 P23,769 P42,590 P173,311
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‹ 0U[LYLZ[9H[L9PZRPU)HURPUN)VVR099)) Collateral and other credit enhancement MVY Z[HUKI` 3*Z SPULZ ^OPSL  >OVSLZHSLHUKYL[HPS 88,529 Ě Ě 88,529
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‹ :[YH[LÄJ)\ZPULZZ9PZR JVTTLYJPHS3*ZHYLJVSSH[LYHSPaLKI`[OL\UKLYS`PUNZOPWTLU[ZVMNVVKZ  ,SLJ[YPJP[`NHZHUK 
  /V\ZPUN3VHUZ      ^H[LY 72,582 4,618 Ě 77,200
‹ 9LW\[H[PVUHS9PZR [V^OPJO[OL`YLSH[L
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‹ *YLKP[*VUJLU[YH[PVU9PZR
  6[OLYZ         JVTT\UPJH[PVU 31,625 144 Ě 31,769
‹ *`ILY:LJ\YP[`9PZR +LYP]H[P]LÄUHUJPHSPUZ[Y\TLU[Z
*YLKP[ YPZR HYPZPUN MYVT KLYP]H[P]L ÄUHUJPHS PUZ[Y\TLU[Z PZ H[ HU` [PTL  6[OLYYLJLP]HISLZ      4HU\MHJ[\YPUN 45,365 352 Ě 45,717
;OL IHURPUN ZLNTLU[»Z )6+ OHZ V]LYHSS YLZWVUZPIPSP[` MVY [OL SPTP[LK[V[OVZL^P[OWVZP[P]LMHPY]HS\LZHZYLJVYKLKPU[OLJVUZVSPKH[LK 7 7 7 7  7\ISPJHKTPUPZ[YH[PVU 
LZ[HISPZOTLU[HUKV]LYZPNO[VM[OL.YV\W»ZYPZRTHUHNLTLU[MYHTL^VYR Z[H[LTLU[VMÄUHUJPHSWVZP[PVU *Receivables from customers exclude residual value of the leased asset (Note 10). and defense 15,627 Ě Ě 15,627
(Z KLSLNH[LK I` [OL IHURPUN ZLNTLU[»Z )6+ [OL 9PZR 6]LYZPNO[  (NYPJ\S[\YLO\U[PUNHUK
*VTTP[[LL96*PZTHUKH[LK[VZL[YPZRHWWL[P[LHWWYV]LMYHTL^VYRZ Collateral and other credit enhancement   MVYLZ[Y` 9,716 Ě Ě 9,716
;OL TH_PT\T JYLKP[ YPZR ^P[OV\[ [HRPUN PU[V HJJV\U[ [OL MHPY ]HS\L VM
WVSPJPLZHUKWYVJLZZLZMVYTHUHNPUNYPZRHUKHJJLW[YPZRZIL`VUK[OL (ZHNLULYHSY\SLJOHYHJ[LYPZ[OLZPUNSLTVZ[PTWVY[HU[JVUZPKLYH[PVUPU HU`JVSSH[LYHSHUKUL[[PUNHNYLLTLU[ZPZSPTP[LK[V[OLHTV\U[ZVU[OL :LJVUKHY`[HYNL[PUK\Z[Y`!
HWWYV]HS KPZJYL[PVU WYV]PKLK [V THUHNLTLU[ ;OL 96* HK]PZLZ VU NYHU[PUNSVHUZ/V^L]LYJVSSH[LYHSZHYLYLX\LZ[LK[VTP[PNH[LYPZR;OL Z[H[LTLU[VMÄUHUJPHSWVZP[PVUWS\ZJVTTP[TLU[Z[VJ\Z[VTLYZZ\JOHZ  .V]LYUTLU[ Ě 155,871 108,500 264,371
[OL V]LYHSS J\YYLU[ HUK M\[\YL YPZR HWWL[P[L HUK Z[YH[LN` HUK HZZPZ[Z PU SVHU]HS\LHUK[`WLVMJVSSH[LYHSYLX\PYLKKLWLUKVU[OLHZZLZZTLU[VM \U\ZLKJVTTLYJPHSSL[[LYZVMJYLKP[V\[Z[HUKPUNN\HYHU[LLZHUKV[OLYZ  9LHSLZ[H[LYLU[PUNHUK
V]LYZLLPUN[OLPTWSLTLU[H[PVUVM[OVZLZ[YH[LNPLZHUKI\ZPULZZWSHUZI` [OL JYLKP[ YPZR VM [OL IVYYV^LY VY JV\U[LYWHY[`  ;OL IHURPUN ZLNTLU[ HZKPZJSVZLKPU5V[L[V[OLÄUHUJPHSZ[H[LTLU[Z   I\ZPULZZHJ[P]P[PLZ 87,039 22,826 Ě 109,865
[OLIHURPUNZLNTLU[»ZZLUPVYTHUHNLTLU[ MVSSV^ZN\PKLSPULZVU[OLHJJLW[HIPSP[`VM[`WLZVMJVSSH[LYHSHUK]HS\H[PVU  *VUZ[Y\J[PVU 41,520 Ě Ě 41,520
WHYHTL[LYZ Excessive risk concentration  6[OLYZ 158,313 29,494 121 187,928
;OL9PZR4HUHNLTLU[.YV\W94.WYV]PKLZ[OLSLN^VYRMVY[OL96* ;OLIHURPUNZLNTLU[»ZJYLKP[YPZRJVUJLU[YH[PVUZJHUHYPZL^OLUL]LY P657,268 P237,074 P151,211 P1,045,553
PUP[ZYVSLVMMVYT\SH[PUN[OLYPZRTHUHNLTLU[Z[YH[LN`[OLKL]LSVWTLU[ ;OLTHPU[`WLZVMJVSSH[LYHSVI[HPULKHYLHZMVSSV^Z! H ZPNUPÄJHU[ U\TILY VM IVYYV^LYZ OH]L ZPTPSHY JOHYHJ[LYPZ[PJZ ;OL * Loans and receivables exclude residual value of the leased asset.
HUK THPU[LUHUJL VM [OL PU[LYUHS YPZR THUHNLTLU[ MYHTL^VYR HUK [OL IHURPUNZLNTLU[HUHS`aLZ[OLJYLKP[YPZRJVUJLU[YH[PVU[VHUPUKP]PK\HS ** Others include the following sectors - Other community, social and personal services, private
KLÄUP[PVUVM[OLNV]LYUPUNYPZRTHUHNLTLU[WYPUJPWSLZ;OL94.WYV]PKLZ ‹ -VY JVYWVYH[L HJJV\U[Z  KLWVZP[ OVSK V\[Z N\HYHU[LLZ ZLJ\YP[PLZ household, hotel and restaurant, education, mining and quarrying, and health and social work.
IVYYV^LY YLSH[LK NYV\W VM HJJV\U[Z PUK\Z[Y` NLVNYHWOPJ PU[LYUHS 6[OLY ÄUHUJPHS HZZL[Z PUJS\KL [OL MVSSV^PUN ÄUHUJPHS HZZL[Z! ¸+\L MYVT ):7¹ ¸+\L MYVT V[OLY
HZZPZ[HUJL [V [OL (ZZL[Z HUK 3PHIPSP[PLZ *VTTP[[LL (3*6 VU JHWP[HS WO`ZPJHS JVSSH[LYHSZ LN YLHS LZ[H[L JOH[[LSZ PU]LU[VY` L[J" HZ H YH[PUN I\JRL[Z J\YYLUJ` [LYT HUK ZLJ\YP[`  -VY YPZR JVUJLU[YH[PVU IHURZ¹ ¸0U[LYIHUR SVHUZ YLJLP]HISL¹ ¸:LJ\YP[PLZ OLSK \UKLY HNYLLTLU[Z [V YLZLSS¹ HUK V[OLY
THUHNLTLU[ HUK [OL )VHYK 7VSPJ` *VTTP[[LL VU [OL THUHNLTLU[ VM NLULYHSY\SLJVTTLYJPHSPUK\Z[YPHSHUKYLZPKLU[PHSSV[ZHYLWYLMLYYLK TVUP[VYPUN W\YWVZLZ [OL ÄUHUJPHS HZZL[Z HYL IYVHKS` JH[LNVYPaLK ÄUHUJPHSHZZL[ZIVVRLK\UKLY¸6[OLY(ZZL[Z¹
YLN\SH[VY`JHWP[HS ‹ -VYYL[HPSSLUKPUNTVY[NHNLZVUYLZPKLU[PHSWYVWLY[PLZHUK]LOPJSLZ PU[VSVHUZHUKYLJLP]HISLZHUK[YHKPUNHUKÄUHUJPHSPU]LZ[TLU[
ÄUHUJLK ZLJ\YP[PLZ ;V TP[PNH[L YPZR JVUJLU[YH[PVU [OL IHURPUN ZLNTLU[ 
;OLTHUKH[LVM[OL94.PU]VS]LZ! ‹ -VYZLJ\YP[PLZSLUKPUNHUKYL]LYZLYLW\YJOHZL[YHUZHJ[PVUZJHZOVY JVUZ[HU[S`JOLJRZMVYIYLHJOLZPUYLN\SH[VY`HUKPU[LYUHSSPTP[Z*SLHY
Trading and 6[OLY
ZLJ\YP[PLZ LZJHSH[PVU WYVJLZZ HUK V]LYYPKL WYVJLK\YLZ HYL PU WSHJL ^OLYLI` Loans and investment ÄUHUJPHS
‹ PTWSLTLU[PUN [OL YPZR THUHNLTLU[ MYHTL^VYR VM PKLU[PM`PUN HU`L_JLZZPUSPTP[ZHYLJV]LYLKI`HWWYVWYPH[LHWWYV]PUNH\[OVYP[`[V YLJLP]HISLZ ZLJ\YP[PLZ HZZL[Z Total
TLHZ\YPUNJVU[YVSSPUNHUKTVUP[VYPUN[OL]HYPV\ZYPZR[HRPUNHJ[P]P[PLZ ;OL KPZWVZHS VM [OL MVYLJSVZLK WYVWLY[PLZ PZ OHUKSLK I` [OL (ZZL[ YLN\SHYPaLHUKTVUP[VYIYLHJOLZPUSPTP[Z (In Millions)
VM[OL.YV\WPUOLYLU[PUHSSÄUHUJPHSPUZ[P[\[PVUZ" 4HUHNLTLU[ :LJ[VY ^OPJO HKOLYLZ [V [OL NLULYHS WVSPJ` VM KPZWVZPUN
7YPTHY`[HYNL[PUK\Z[Y`!
‹ WYV]PKPUN ZLY]PJLZ [V [OL YPZR[HRPUN \UP[Z HUK WLYZVUULS PU [OL HZZL[ZH[[OLOPNOLZ[WVZZPISLTHYRL[]HS\L H 3PTP[WLY*SPLU[VY*V\U[LYWHY[`
 -PUHUJPHSPU[LYTLKPHYPLZ 7  7  7 7
PTWSLTLU[H[PVUVMYPZRTP[PNH[PVUZ[YH[LNPLZ"HUK  ;OLPU[LYUHSSPTP[ZZL[I`[OL7HYLU[*VTWHU`MVYNYV\WL_WVZ\YLZ
‹ LZ[HISPZOPUNYLJVTTLUKLKSPTP[ZIHZLKVU[OLYLZ\S[ZVMP[ZHUHS`ZPZVM 4HUHNLTLU[ YLN\SHYS` TVUP[VYZ [OL THYRL[ ]HS\L VM [OL JVSSH[LYHS  ,SLJ[YPJP[`NHZHUK
HYLHZMVSV^Z!   ^H[LY  ò ò 
L_WVZ\YLZ HUK YLX\LZ[Z HKKP[PVUHS JVSSH[LYHS PU HJJVYKHUJL ^P[O [OL \UKLYS`PUN  *99¶\W[V VM[OLYLN\SH[VY`:PUNSL)VYYV^LYZ3PTP[:)3
 >OVSLZHSLHUKYL[HPS    ò 
HNYLLTLU[  ;OL L_PZ[PUN THYRL[ ]HS\L VM [OL JVSSH[LYHS PZ JVUZPKLYLK  *99¶\W[VVM[OLYLN\SH[VY`:)3
*YLKP[9PZR K\YPUN [OL YL]PL^ VM [OL HKLX\HJ` VM [OL HSSV^HUJL MVY JYLKP[ SVZZLZ  4HU\MHJ[\YPUN     ò 
 *99¶\W[VVM[OLYLN\SH[VY`:)3
-VY [OL IHURPUN ZLNTLU[ JYLKP[ YPZR PZ [OL UVUYLJV]LY` VM JYLKP[ .LULYHSS` JVSSH[LYHS PZ UV[ OLSK V]LY SVHUZ HUK HK]HUJLZ [V IHURZ  ;YHUZWVY[Z[VYHNLHUK
L_WVZ\YLZVUHUKVќIHSHUJLZOLL[L_WVZ\YLZ4HUHNPUNJYLKP[YPZR L_JLW[MVYYL]LYZLYLW\YJOHZLHNYLLTLU[Z;OLIHURPUNZLNTLU[PZUV[   JVTT\UPJH[PVU    ò  
 -VY[YHKPUNHUKPU]LZ[TLU[ZLJ\YP[PLZ[OL.YV\WSPTP[ZPU]LZ[TLU[Z
HSZV PU]VS]LZ TVUP[VYPUN VM TPNYH[PVU YPZR JVUJLU[YH[PVU YPZR JV\U[Y` permitted to sell or repledge the collateral held over loans and advances [V NV]LYUTLU[ PZZ\LZ HUK ZLJ\YP[PLZ PZZ\LK I` LU[P[PLZ ^P[O OPNO  7\ISPJHKTPUPZ[YH[PVU
and defense  ò ò 
YPZRHUKZL[[SLTLU[YPZR;OLIHURPUNZLNTLU[THUHNLZP[ZJYLKP[YPZR [VJV\U[LYWHY[`IHURZHUK):7PU[OLHIZLUJLVMKLMH\S[I`[OLV^ULY X\HSP[`PU]LZ[TLU[YH[PUNZ
H[ ]HYPV\Z SL]LSZ PL Z[YH[LNPJ SL]LS WVY[MVSPV SL]LS KV^U [V PUKP]PK\HS VM[OLJVSSH[LYHS  (NYPJ\S[\YLO\U[PUN
  HUKMVYLZ[Y`  ò ò 
[YHUZHJ[PVU I .LVNYHWOPJ*VUJLU[YH[PVU
Maximum exposure to credit risk after collateral held or other credit :LJVUKHY`[HYNL[PUK\Z[Y`!
 ;OL[HISLILSV^ZOV^Z[OLIHURPUNZLNTLU[»ZJYLKP[YPZRL_WVZ\YLZ
;OLJYLKP[YPZRTHUHNLTLU[VM[OLLU[PYLSVHUWVY[MVSPVPZ\UKLY[OLKPYLJ[ enhancements ILMVYL [HRPUN PU[V HJJV\U[ HU` JVSSH[LYHS OLSK VY V[OLY JYLKP[  .V]LYUTLU[    
V]LYZPNO[VM[OL96*HUK,_LJ\[P]L*VTTP[[LL*YLKP[YPZRHZZLZZTLU[ (U HUHS`ZPZ VM [OL TH_PT\T L_WVZ\YL [V JYLKP[ YPZR HM[LY [HRPUN PU[V LUOHUJLTLU[ZJH[LNVYPaLKI`NLVNYHWOPJSVJH[PVU!  9LHSLZ[H[LYLU[PUNHUK
VM PUKP]PK\HS IVYYV^LY PZ WLYMVYTLK I` [OL I\ZPULZZ ZLJ[VY  YLTLKPHS HJJV\U[HU`JVSSH[LYHSOLSKVYV[OLYJYLKP[LUOHUJLTLU[ZMVY[OL.YV\W»Z   I\ZPULZZHJ[P]P[PLZ   ò 
ZLJ[VYHUKJYLKP[THUHNLTLU[ZLJ[VY9PZRTHUHNLTLU[PZLTILKKLK IHURPUNZLNTLU[PZZOV^UILSV^!  *VUZ[Y\J[PVU   ò 
PU [OL LU[PYL JYLKP[ WYVJLZZ PL MYVT JYLKP[ VYPNPUH[PVU [V YLTLKPHS 2019   6[OLYZ    
THUHNLTLU[PMULLKLK (In Millions) 7 7  7 7 
Consolidated
7OPSPWWPULZ P900,502 7  * Loans and receivables exclude residual value of the leased asset.
2019 ** Others include the following sectors - Other community, social and personal services, private
(TVUN [OL [VVSZ \ZLK I` [OL .YV\W PU PKLU[PM`PUN HZZLZZPUN HUK (ZPHL_JS\KPUN[OL7OPSPWWPULZ 95,755 
Fair Value Financial household, hotel and restaurant, education, mining and quarrying, and health and social work.
THUHNPUNJYLKP[YPZRPUJS\KL!
Maximum of Net (σHFWRI <:(HUK*HUHKH 16,555  6[OLY ÄUHUJPHS HZZL[Z PUJS\KL [OL MVSSV^PUN ÄUHUJPHS HZZL[Z! ¸+\L MYVT ):7¹ ¸+\L MYVT V[OLY
‹ +VJ\TLU[LK JYLKP[ WVSPJPLZ HUK WYVJLK\YLZ! ZV\UK JYLKP[ NYHU[PUN Exposure Collateral Exposure Collateral IHURZ¹ ¸0U[LYIHUR SVHUZ YLJLP]HISL¹ ¸:LJ\YP[PLZ OLSK \UKLY HNYLLTLU[Z [V YLZLSS¹ HUK V[OLY
WYVJLZZYPZRHZZL[HJJLW[HUJLJYP[LYPH[HYNL[THYRL[HUKHWWYV]PUN 6JLHUPH Ě   ÄUHUJPHSHZZL[ZIVVRLK\UKLY¸6[OLY(ZZL[Z¹
(In Millions)
H\[OVYP[PLZ" 6[OLY,\YVWLHU<UPVU*V\U[YPLZ 6,521 
:LJ\YP[PLZOLSK\UKLY P2,518 P2,518 PĚ P2,518 ;OL PU[LYUHS SPTP[ VM [OL IHURPUN ZLNTLU[ IHZLK VU [OL 7OPSPWWPUL
‹ :`Z[LTMVYHKTPUPZ[YH[PVUHUKTVUP[VYPUNVML_WVZ\YL" agreements to resell <UP[LK2PUNKVT 23,753 
‹ 7YLHWWYV]HSYL]PL^VMSVHUWYVWVZHSZ" :[HUKHYK 0UK\Z[Y` *SHZZPÄJH[PVU 7:0* Z\IPUK\Z[Y` PZ  MVY WYPVYP[`
3VHUZHUKYLJLP]HISLZ! 4PKKSL,HZ[ 2,468 
‹ 7VZ[HWWYV]HSYL]PL^VMPTWSLTLU[LKSVHUZ" PUK\Z[Y`  MVY YLN\SHY PUK\Z[Y`  MVY WV^LY PUK\Z[Y` HUK  MVY
 9LJLP]HISLZMYVT P1,045,554 7  HJ[P]P[PLZVMOVSKPUNJVTWHUPLZ]LYZ\Z[V[HSSVHUWVY[MVSPV
‹ >VYRV\[Z`Z[LTMVYTHUHNPUNWYVISLTJYLKP[Z"   J\Z[VTLYZ!
‹ 9LN\SHYYL]PL^VM[OLZ\ѝJPLUJ`VM]HS\H[PVUYLZLY]LZ"
  *VYWVYH[LZ 540,584 287,490 378,128 162,456 *YLKP[X\HSP[`WLYJSHZZVMÄUHUJPHSHZZL[Z
‹ 4VUP[VYPUN VM [OL HKLX\HJ` VM JHWP[HS MVY JYLKP[ YPZR ]PH [OL *HWP[HS
Local government 6,729 130 6,694 35
(KLX\HJ`9H[PV*(9YLWVY["    \UP[Z3.<
‹ 4VUP[VYPUNVMIYLHJOLZPUYLN\SH[VY`HUKPU[LYUHSSPTP[Z" 0U[OLIHURPUNZLNTLU[YLL]HS\H[LK[OLZLNTLU[H[PVUVMP[ZSVHU
  *YLKP[*HYKZ 14,264 Ě 14,264 Ě WVY[MVSPVZV[OH[P[PZNYV\WLKIHZLKVU[OL\UKLYS`PUNYPZRJOHYHJ[LYPZ[PJZ
‹ *YLKP[9PZR4HUHNLTLU[+HZOIVHYK"
  9L[HPSZTHSSHUKTLKP\T 18,943 28,248 5,494 13,449 [OH[ HYL L_WLJ[LK [V YLZWVUK PU H ZPTPSHY THUULY [V THJYVLJVUVTPJ
‹ +P]LYZPÄJH[PVU"
   LU[LYWYPZLZ:4, MHJ[VYZHUKMVY^HYKSVVRPUNJVUKP[PVUZ4VYLV]LY[OLIHURPUNZLNTLU[
‹ 0U[LYUHS9PZR9H[PUN:`Z[LTMVYJVYWVYH[LHJJV\U[Z"
  /V\ZPUN3VHUZ 32,017 28,805 12,633 19,385 OHZ HSPNULK [OL WVY[MVSPV ZLNTLU[H[PVU [V ZV\UK WYHJ[PJL N\PKLSPULZ VM
‹ *YLKP[:JVYPUNMVYYL[HPSHJJV\U[Z"HUK
‹ (J[P]LSVHUWVY[MVSPVTHUHNLTLU[\UKLY[HRLU[VKL[LYTPUL[OLX\HSP[`   (\[V3VHUZ 12,861 13,688 9,681 3,180 PU[LYUHSYH[PUNZIHZLKIHURZ
VM[OLSVHUWVY[MVSPVHUKPKLU[PM`[OLMVSSV^PUN!   6[OLYZ 10,897 18,436 2,778 8,119
H WVY[MVSPVNYV^[O  6[OLYYLJLP]HISLZ 20,973 5,515 18,278 2,695
I movement of loan portfolio P659,786 P384,830 P447,950 P211,837
J HKLX\HJ`VMSVHUSVZZYLZLY]LZ *Receivables from customers exclude residual value of the leased asset (Note 10).
K [YLUKVMUVUWLYMVYTPUNSVHUZ573Z

112 LT G R O U P, I N C . 2019 ANNUAL REPORT 113

 .LULYHSS`[OLIHURPUNZLNTLU[»ZL_WVZ\YLZJHUILJH[LNVYPaLKHZLP[OLY 26-grade CRR system 
Credit quality
5VU9L[HPS HUK 9L[HPS  5VU9L[HPS ZLNTLU[ VM [OL IHURPUN ZLNTLU[ Used beginning January 1, 2018
Stage 1 :[HNL Stage 3 Total
TH` IL KLÄULK HZ KLI[ VISPNH[PVU VM H ZV]LYLPNU ÄUHUJPHS PU[\P[PVU Standard BRR 13-15 Average
JVYWVYH[PVU WHY[ULYZOPW VY WYVWYPL[VYZOPW  0U WHY[PJ\SHY [OL IHURPUN )VYYV^LY Z[PSS OHZ [OL JHWHJP[` [V TLL[ P[Z ÄUHUJPHS (In Millions)
ZLNTLU[»Z 5VUYL[HPS WVY[MVSPV ZLNTLU[Z HYL HZ MVSSV^Z! :V]LYLPNUZ : 7,X\P]HSLU[ JVTTP[TLU[Z HUK ^P[OZ[HUK UVYTHS I\ZPULZZ J`JSLZ :\IQLJ[[V*99
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L_WVZ\YLZ HYL L_WVZ\YLZ [V PUKP]PK\HS WLYZVU VY WLYZVUZ VY [V H ZTHSS L_[LYUHSMVYJLZPTWHJ[VU[OLIVYYV^LYPZ\UJLY[HPU+LMH\S[ Standard    ò 
I\ZPULZZ HUK HYL UV[ \Z\HSS` THUHNLK VU HU PUKP]PK\HS IHZPZ I\[ HZ PZHWVZZPIPSP[`
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*HYKZ*VUZ\TLY3VHUZHUK9L[HPS:4,HTVUNV[OLYZ )99(JJLW[HISL Impaired ò ò  
)VYYV^LY \UKLY [OPZ YH[PUN ZJHSL IHZPJHSS` WVZZLZZLZ [OL
   
JOHYHJ[LYPZ[PJZVMIVYYV^LYZYH[LKHZ)99[V)99^P[O
3VHUZHUK9LJLP]HISLZ ZSPNO[S`SLZZLYX\HSP[`+LMH\S[PZHWVZZPIPSP[`
;OL JYLKP[ X\HSP[` VM 5VU9L[HPS ZLNTLU[ PZ L]HS\H[LK HUK TVUP[VYLK
:\IQLJ[[V:JVYPUN <UYH[LK
\ZPUN L_[LYUHS YH[PUNZ HUK PU[LYUHS JYLKP[ YPZR YH[PUN Z`Z[LT   0U  )99 =\SULYHISL
[OL IHURPUN ZLNTLU[ [YHUZP[PVULK [V H UL^ PU[LYUHS JYLKP[ YPZR YH[PUN )VYYV^LY PZ SLZZ ]\SULYHISL PU [OL ULHY [LYT [OHU V[OLY 5VU9L[HPS    
Z`Z[LTI\[THPU[HPULK[OLKPTLUZPVUHSZ[Y\J[\YL"[OH[PZ[OLYLPZZ[PSSH SV^YH[LK IVYYV^LYZ /V^L]LY P[ MHJLZ THQVY VUNVPUN  *VYWVYH[L      
IVYYV^LYYPZRYH[PUN)99HUK[OLMHJPSP[`YPZRYH[PUN-99 \UJLY[HPU[PLZ HUK L_WVZ\YL [V HK]LYZL I\ZPULZZ ÄUHUJPHS
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VY LJVUVTPJ JVUKP[PVUZ [OH[ JV\SK SLHK [V [OL IVYYV^LY»Z
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:WLJPÄJIVYYV^LYYH[PUNTVKLSZ^LYLKL]LSVWLKI`[OLIHURPUNZLNTLU[ +LMH\S[PZHWVZZPIPSP[`  (\[V3VHUZ    
[VJHW[\YLZWLJPÄJHUK\UPX\LYPZRJOHYHJ[LYPZ[PJZVMLHJOVM[OL5VU :\IZ[HUKHYK )99>LHR
9L[HPSZLNTLU[;OLIVYYV^LYYPZRYH[PUNPZTLHZ\YLKIHZLKVUÄUHUJPHS  /V\ZPUN3VHUZ    
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MHJ[VYZZ\JOHZTHUHNLTLU[PUK\Z[Y`V\[SVVRHUKTHYRL[JVTWL[P[PVU .SVIHS9H[PUN! TLL[P[ZÄUHUJPHSJVTTP[TLU[Z(K]LYZLI\ZPULZZÄUHUJPHS *YLKP[*HYK     
;OL)99TVKLSZJHW[\YLZV]LYSH`ZHUKLHYS`^HYUPUNZPNUHSZHZ^LSS )[V*** VY LJVUVTPJ JVUKP[PVUZ ^PSS SPRLS` PTWHPY [OL IVYYV^LY»Z
JHWHJP[` VY ^PSSPUNULZZ [V TLL[ P[Z ÄUHUJPHS JVTTP[TLU[Z 6[OLYZ       
+LMH\S[PZTVYL[OHUHWVZZPIPSP[`     
;OL IHURPUN ZLNTLU[ \ZLZ H ZPUNSL ZJHSL ^P[O  YPZR NYHKLZ MVY HSS
P[Z IVYYV^LY YPZR YH[PUN TVKLSZ ;OL YPZR NYHKL PU[LYUHS KLMH\S[ 7 7 7 7
)99>H[JOSPZ[
THZ[LYZJHSLPZHYLWYLZLU[H[PVUVMHJVTTVUTLHZ\YLVMYLSH[P]LKLMH\S[ )VYYV^LY PZ J\YYLU[S` ]\SULYHISL HUK PZ KLWLUKLU[ \WVU
;OLHUHS`ZPZVMWHZ[K\LZ[H[\ZVMYLJLP]HISLZMYVTJ\Z[VTLYZ[OH[HYLZ\IQLJ[[VZJVYPUNHUK\UYH[LKMVSSV^Z!
YPZR HZZVJPH[LK ^P[O [OL VISPNVYZJV\U[LYWHY[PLZ ;OL PU[LYUHS KLMH\S[ MH]VYHISL I\ZPULZZ ÄUHUJPHS HUK LJVUVTPJ JVUKP[PVUZ [V
THZ[LYZJHSLPZTHWWLK[VHNSVIHSYH[PUNZJHSL TLL[ P[Z ÄUHUJPHS JVTTP[TLU[Z )VYYV^LY TH` HSYLHK` IL
L_WLYPLUJPUNSVZZLZHUKPTWHPYLKJHWP[HSPU[OLJHZLVM)99 Consolidated

-HJPSP[` 9PZR 9H[PUN VU [OL V[OLY OHUK HZZLZZLZ WV[LU[PHS SVZZ VM [OL 2019
IHURPUNZLNTLU[PUJHZLVMKLMH\S[^OPJOJVUZPKLYZJVSSH[LYHS[`WLHUK Less than More than
Impaired BRR 26 Default
SL]LS VM JVSSH[LYHSPaH[PVU VM [OL MHJPSP[` ;OL -99 OHZ NYHKLZ PL -99 +LMH\S[^PSSILHNLULYHSKLMH\S[)VYYV^LY^PSSMHPS[VWH`HSSVY 30 days 31 to 90 days 91 to 180 days 180 days Total
([V-990 : 7,X\P]HSLU[ Z\IZ[HU[PHSS`HSSVMP[ZVISPNH[PVUZHZ[OL`JVTLK\L
(In Millions)
.SVIHS9H[PUN!
;OL *99 VY ÄUHS JYLKP[ YPZR YH[PUN ZOHSS IL L_WYLZZLK PU HSWOHU\TLYPJ D 3.< PĚ P69 PĚ P27 P96
[LYTZLN*99(^OPJOPZHJVTIPUH[PVUVM[OLNLULYHSJYLKP[^VY[OPULZZ *YLKP[*HYK Ě 420 Ě 1,867 2,287
VM[OLIVYYV^LY)99HUK[OLWV[LU[PHSSVZZVM[OLIHURPUNZLNTLU[PU -VY[OL9L[HPSZLNTLU[VM[OLWVY[MVSPVZ\JOHZ9L[HPS:4,*YLKP[*HYKZ
/V\ZPUNHUK(\[V3VHUZJYLKP[ZJVYPUNPZILPUN\ZLKPUL]HS\H[PUN[OL 9L[HPS:4, 366 345 903 2,028 3,642
[OLL]LU[VM[OLIVYYV^LY»ZKLMH\S[-99(
JYLKP[^VY[OPULZZVM[OLIVYYV^LY /V\ZPUN3VHUZ 422 1,571 1,340 4,057 7,390
;OL JYLKP[ X\HSP[` HUK JVYYLZWVUKPUN )99Z VM [OL IHURPUN ZLNTLU[»Z (\[V3VHUZ 157 460 273 793 1,683
YLJLP]HISLZMYVTJ\Z[VTLYZHYLKLÄULKILSV^! ;OL [HISL ILSV^ ZOV^Z [OL JYLKP[ X\HSP[` VM [OL IHURPUN ZLNTLU[»Z 6[OLYZ 66 737 184 395 1,382
YLJLP]HISLZ MYVT J\Z[VTLYZ NYVZZ VM HSSV^HUJL MVY JYLKP[ SVZZLZ HUK P1,011 P3,602 P2,700 P9,167 P16,480
Total
\ULHYULKHUKV[OLYKLMLYYLKPUJVTLI\[UL[VMYLZPK\HS]HS\LZVMSLHZLK
26-grade CRR system HZZL[ZHZVM+LJLTILY!
Credit quality
Used beginning January 1, 2018 *VUZVSPKH[LK
/PNO BRR 1 Excellent 
)VYYV^LY OHZ HU L_JLW[PVUHSS` Z[YVUN JHWHJP[` [V TLL[ P[Z 2019
: 7,X\P]HSLU[ ÄUHUJPHS JVTTP[TLU[Z 5V L_PZ[PUN KPZY\W[PVUZ VY M\[\YL Stage 1 Stage 2 Stage 3 Total
Less than More than
.SVIHS9H[PUN! KPZY\W[PVUZHYLOPNOS`\USPRLS`7YVIHIPSP[`VMNVPUNPU[VKLMH\S[ KH`Z [V KH`Z [VKH`Z KH`Z Total
(In Millions)
((([V))) PU[OLJVTPUN`LHYPZ]LY`TPUPTHSSV^ (In Millions)
Subject to CRR
BRR 2 Very Strong 3.< 7 7 7 ò 7
5VU9L[HPS*VYWVYH[L
)VYYV^LY OHZ H ]LY` Z[YVUN JHWHJP[` [V TLL[ P[Z ÄUHUJPHS *YLKP[*HYK 1     
JVTTP[TLU[Z 5V L_PZ[PUN KPZY\W[PVUZ VY M\[\YL KPZY\W[PVUZ /PNO P1,568 PĚ PĚ P1,568
9L[HPS:4,     
HYL\USPRLS`0[KPќLYZMYVT)99IVYYV^LYZVUS`[VHZTHSS Standard 450,194 2,477 19 452,690
KLNYLL7YVIHIPSP[`VMNVPUNPU[VKLMH\S[PU[OLJVTPUN`LHYPZ /V\ZPUN3VHUZ ò    
:\IZ[HUKHYK 65,136 13,318 311 78,765
]LY`TPUPTHSSV^ (\[V3VHUZ 1  3  
Impaired Ě Ě 10,655 10,655
BRR 3 Strong 516,898 15,795 10,985 543,678
6[OLYZ     
)VYYV^LY OHZ H Z[YVUN JHWHJP[` [V TLL[ P[Z ÄUHUJPHS Total 7 7 7 7 7 
JVTTP[TLU[Z 5V L_PZ[PUN KPZY\W[PVUZ VY M\[\YL KPZY\W[PVUZ
HYL \USPRLS` /V^L]LY HK]LYZL LJVUVTPJ JVUKP[PVUZ VY Subject to Scoring & Unrated ;YHKPUNHUK0U]LZ[TLU[:LJ\YP[PLZHUK6[OLY-PUHUJPHS(ZZL[Z
JOHUNPUN JPYJ\TZ[HUJLZ JV\SK SLHK [V ZVTL^OH[ SLZZLY 5VU9L[HPS 11,194 358 450 12,002 0U LUZ\YPUN X\HSP[` PU]LZ[TLU[ WVY[MVSPV 75) \ZLZ [OL JYLKP[ YPZR YH[PUN IHZLK VU [OL L_[LYUHS YH[PUNZ VM LSPNPISL L_[LYUHS JYLKP[ YH[PUN PUZ[P[\[PVUZ PL
JHWHJP[` [V TLL[ ÄUHUJPHS VISPNH[PVUZ [OHU PU OPNOLYYH[LK 4VVK`»Z0U]LZ[VYZ:LY]PJLHZMVSSV^Z!
 *VYWVYH[L 4,490 289 423 5,202
IVYYV^LYZ 7YVIHIPSP[` VM NVPUN PU[V KLMH\S[ PU [OL JVTPUN
`LHYPZ]LY`TPUPTHSSV^  3.< 6,704 69 27 6,800
(HH [V (H  Ä_LK PUJVTL HYL Q\KNLK [V IL VM OPNO X\HSP[` HUK HYL Z\IQLJ[ [V ]LY` SV^ JYLKP[ YPZR I\[ [OLPY Z\ZJLW[PIPSP[` [V SVUN[LYT YPZRZ HWWLHYZ
9L[HPS 69,064 2,795 11,261 83,120
)99.VVK ZVTL^OH[NYLH[LY
)VYYV^LY OHZ HU HKLX\H[L JHWHJP[` [V TLL[ P[Z ÄUHUJPHS  (\[V3VHUZ 11,443 459 1,067 12,969
JVTTP[TLU[Z PU [OL UVYTHS JV\YZL VM P[Z I\ZPULZZ >P[O  /V\ZPUN3VHUZ 26,601 1,571 5,396 33,568 ([V(Ä_LKPUJVTLVISPNH[PVUZHYLJVUZPKLYLK\WWLYTLKP\TNYHKLHUKHYLZ\IQLJ[[VSV^JYLKP[YPZRI\[OH]LLSLTLU[ZWYLZLU[[OH[Z\NNLZ[H
PKLU[PÄLKKPZY\W[PVUZMYVTL_[LYUHSMHJ[VYZI\[JVTWHU`OHZ  9L[HPS:4, 17,437 345 2,931 20,713 Z\ZJLW[PIPSP[`[VPTWHPYTLU[V]LY[OLSVUN[LYT
VY^PSSSPRLS`V]LYJVTL+LMH\S[WVZZPIPSP[`PZTPUPTHSSV^
*YLKP[*HYK 13,583 420 1,867 15,870
)99 :H[PZMHJ[VY` 6[OLYZ 10,699 737 579 12,015 )HHHUKILSV^YLWYLZLU[Z[OVZLPU]LZ[TLU[Z^OPJOMHSS\UKLYHU`VM[OLMVSSV^PUNNYHKL!
)VYYV^LY \UKLY [OPZ YH[PUN ZJHSL IHZPJHSS` WVZZLZZLZ [OL 90,957 3,890 12,290 107,137
JOHYHJ[LYPZ[PJZVMIVYYV^LYZYH[LKHZ)99[V)99^P[O ‹ )HH)HH)HHÄ_LKPUJVTLVISPNH[PVUZHYLZ\IQLJ[[VTVKLYH[LJYLKP[YPZR;OL`HYLJVUZPKLYLKTLKP\TNYHKLHUKHZZ\JOWYV[LJ[P]LLSLTLU[Z
ZSPNO[S`SLZZLYX\HSP[`+LMH\S[WVZZPIPSP[`)99PZTPUPTHSSV^ P607,855 P19,685 P23,275 P650,815 TH`ILSHJRPUNVYTH`ILJOHYHJ[LYPZ[PJHSS`\UYLSPHISL
‹ )H)H)HVISPNH[PVUZHYLQ\KNLK[VOH]LZWLJ\SH[P]LLSLTLU[ZHUKHYLZ\IQLJ[[VZ\IZ[HU[PHSJYLKP[YPZR
BRR 10-12 Adequate
‹ )))VISPNH[PVUZHYLJVUZPKLYLKZWLJ\SH[P]LHUKHYLZ\IQLJ[[VOPNOJYLKP[YPZR
)VYYV^LY OHZ HU HKLX\H[L JHWHJP[` [V TLL[ P[Z ÄUHUJPHS
JVTTP[TLU[Z\UKLY[OLUVYTHSJV\YZLVMI\ZPULZZ/V^L]LY ‹ *HH*HH*HHHYLQ\KNLK[VILVMWVVYZ[HUKPUNHUKHYLZ\IQLJ[[V]LY`OPNOJYLKP[YPZR
HK]LYZL LJVUVTPJ JVUKP[PVUZ HUK JOHUNPUN JPYJ\TZ[HUJLZ ‹ *HHYLOPNOS`ZWLJ\SH[P]LHUKHYLSPRLS`PUVY]LY`ULHYKLMH\S[^P[OZVTLWYVZWLJ[VMYLJV]LY`VMWYPUJPWHSHUKPU[LYLZ[
HYL TVYL SPRLS` [V ^LHRLU [OL IVYYV^LY»Z JHWHJP[` [V TLL[ ‹ *HYL[OLSV^LZ[YH[LKJSHZZVMIVUKZHUKHYL[`WPJHSS`PUKLMH\S[^P[OSP[[SLWYVZWLJ[MVYYLJV]LY`VMWYPUJPWHSVYPU[LYLZ[
P[ZÄUHUJPHSJVTTP[TLU[Z+LMH\S[WVZZPIPSP[`PZTPUPTHSSV^

114 LT G R O U P, I N C . 2019 ANNUAL REPORT 115

 )LSV^HYL[OLÄUHUJPHSHZZL[ZVM[OLIHURPUNZLNTLU[L_JS\KPUNYLJLP]HISLZMYVTJ\Z[VTLYZ^OPJOHYLTVUP[VYLK\ZPUNL_[LYUHSYH[PUNZ ;OL[HISLILSV^ZOV^Z[OLIHURPUNZLNTLU[»ZÄUHUJPHSHZZL[ZHUKÄUHUJPHSSPHIPSP[PLZ»SPX\PKP[`PUMVYTH[PVU^OPJOPUJS\KLZJV\WVUJHZOÅV^ZJH[LNVYPaLK
IHZLKVU[OLL_WLJ[LKKH[LVU^OPJO[OLHZZL[^PSSILYLHSPaLKHUK[OLSPHIPSP[`^PSSILZL[[SLK-VYV[OLYHZZL[Z[OLHUHS`ZPZPU[VTH[\YP[`NYV\WPUNPZIHZLK
VU[OLYLTHPUPUNWLYPVKMYVT[OLLUKVM[OLYLWVY[PUNWLYPVK[V[OLJVU[YHJ[\HSTH[\YP[`KH[LVYPMLHYSPLY[OLL_WLJ[LKKH[L[OLHZZL[Z^PSSILYLHSPaLK
December 31, 2019
Rated
Baa1 and December 31, 2019
Aaa to Aa3 A1 to A3 below Subtotal Unrated Total More than More than 3 More than 6
(In Millions) Up to 1 Month to Months to 6 Months to 1
+\LMYVT):7 PĚ PĚ PĚ PĚ P105,982 P105,982 1 Month 3 Months Months Year Beyond 1 year Total
+\LMYVTV[OLYIHURZ 5,038 3,090 7,990 16,118 1,643 17,761 (In Millions)
0U[LYIHURSVHUZYLJLP]HISLZ 9,595 13,182 435 23,212 1,627 24,839 Financial Assets
:LJ\YP[PLZOLSK\UKLYHNYLLTLU[Z[VYLZLSS Ě Ě Ě Ě 2,520 2,520 *6*0 P30,501 P– P– P– P– P30,501
-PUHUJPHSHZZL[ZH[-=;6*0 +\LMYVT):7HUKV[OLYIHURZ 123,755 – – – – 123,755
 .V]LYUTLU[ZLJ\YP[PLZ 460 2,125 88,335 90,920 129 91,049
0U[LYIHURSVHUZYLJLP]HISL 19,539 2,295 1,517 – 1,921 25,272
 7YP]H[LKLI[ZLJ\YP[PLZ 3,443 3,330 6,367 13,140 17,250 30,390
:LJ\YP[PLZOLSK\UKLYHNYLLTLU[Z[VYLZLSS 2,520 – – – – 2,520
 8\V[LKLX\P[`ZLJ\YP[PLZ Ě Ě 160 160 912 1,072
 <UX\V[LKLX\P[`ZLJ\YP[PLZ Ě Ě Ě Ě 630 630 -PUHUJPHSHZZL[ZH[-=;73!
0U]LZ[TLU[ZLJ\YP[PLZH[HTVY[PaLKJVZ[!  .V]LYUTLU[ZLJ\YP[PLZ 2 – 965 – 9,874 10,841
 .V]LYUTLU[ZLJ\YP[PLZ Ě Ě 55,305 55,305 290 55,595  7YP]H[LKLI[ZLJ\YP[PLZ  Ě 405 9 – 3,605 4,019
7YP]H[LKLI[ZLJ\YP[PLZ 1,408 22,281 9,288 32,977 15,678 48,655  ,X\P[`ZLJ\YP[PLZ  Ě – – – 1,455 1,455
-PUHUJPHSHZZL[H[HTVY[PaLKJVZ[!
0U]LZ[TLU[PU<0;-Z 7 – – – – 7
6[OLYZ Ě Ě 5,965 5,965 19,353 25,318
 +LYP]H[P]LHZZL[Z!
+LJLTILY   .YVZZJVU[YHJ[\HSYLJLP]HISL 50,516 15,145 1,051 1,089 266 68,067
9H[LK
   .YVZZJVU[YHJ[\HSWH`HISL (50,248) (15,049) (1,034) (1,067) (204) (67,602)
Baa1 and
(HH[V(H ([V( ILSV^ :\I[V[HS <UYH[LK Total 268 96 17 22 62 465
(In Millions) -PUHUJPHS(ZZL[ZH[-=;6*0!
+\LMYVT):7 7ò 7ò 7 7 7  7  .V]LYUTLU[ZLJ\YP[PLZ 100 9,247 7,100 6,788 103,867 127,102
+\LMYVTV[OLYIHURZ        7YP]H[LKLI[ZLJ\YP[PLZ 289 1,255 475 2,764 29,551 34,334
0U[LYIHURSVHUZYLJLP]HISLZ        ,X\P[`ZLJ\YP[PLZ 1,701 – – – – 1,701
:LJ\YP[PLZOLSK\UKLYHNYLLTLU[Z[VYLZLSS ò ò ò ò  
0U]LZ[TLU[ZLJ\YP[PLZH[HTVY[PaLKJVZ[
-PUHUJPHSHZZL[ZH[-=;6*0
 .V]LYUTLU[ZLJ\YP[PLZ 759 10 2,205 1,002 67,026 71,002
 .V]LYUTLU[ZLJ\YP[PLZ  ò   ò 
 7YP]H[LKLI[ZLJ\YP[PLZ         7YP]H[LKLI[ZLJ\YP[PLZ 11,016 11,617 1,276 1,150 28,510 53,569
 8\V[LKLX\P[`ZLJ\YP[PLZ ò ò     -PUHUJPHSHZZL[ZH[HTVY[PaLKJVZ[!
 <UX\V[LKLX\P[`ZLJ\YP[PLZ ò ò ò ò    9LJLP]HISLZMYVTJ\Z[VTLYZ 106,847 77,393 34,688 27,025 420,935 666,888
0U]LZ[TLU[ZLJ\YP[PLZH[HTVY[PaLKJVZ[!  6[OLYYLJLP]HISLZ 12,718 697 2,787 201 10,698 27,101
 .V]LYUTLU[ZLJ\YP[PLZ         6[OLYHZZL[Z 421 – – – 55 476
 7YP]H[LKLI[ZLJ\YP[PLZ  ò      
;V[HSÄUHUJPHSHZZL[Z P310,443 P103,015 P51,039 P38,952 P677,559 P1,181,008
-PUHUJPHSHZZL[H[HTVY[PaLKJVZ[!
6[OLYZ ò ò ò ò   Financial Liabilities
1/
‘Due from BSP’ is composed of interest-earning short-term placements with the BSP and a demand deposit account to support the regular operations +LWVZP[SPHIPSP[PLZ!
of PNB.
2/
Loans and receivables - Others is composed of accrued interest receivable, accounts receivable, sales contracts receivable and other miscellaneous Demand P172,229 P– P– P– P– P172,229
YLJLP]HISLZUL[VMHSSV^HUJLZZLL5V[L Savings 391,770 Ě Ě Ě Ě 391,770
 ;PTLHUK3;5*+Z 154,612 48,317 17,170 9,753 49,383 279,235
3PX\PKP[`9PZRHUK-\UKPUN4HUHNLTLU[
;OLIHURPUNZLNTLU[»ZSPX\PKP[`THUHNLTLU[PU]VS]LZTHPU[HPUPUNM\UKPUNJHWHJP[`[VHJJVTTVKH[LÅ\J[\H[PVUZPUHZZL[HUKSPHIPSP[`SL]LSZK\L[VJOHUNLZ -PUHUJPHSSPHIPSP[PLZH[-=;73!
PU[OLIHURPUNZLNTLU[»ZI\ZPULZZVWLYH[PVUZVY\UHU[PJPWH[LKL]LU[ZJYLH[LKI`J\Z[VTLYILOH]PVYVYJHWP[HSTHYRL[JVUKP[PVUZ;OLIHURPUNZLNTLU[  +LYP]H[P]LSPHIPSP[PLZ!
ZLLRZ[VLUZ\YLSPX\PKP[`[OYV\NOHJVTIPUH[PVUVMHJ[P]LTHUHNLTLU[VMSPHIPSP[PLZHSPX\PKHZZL[WVY[MVSPVJVTWVZLKZ\IZ[HU[PHSS`VMKLWVZP[ZPUWYPTHY`HUK
ZLJVUKHY`YLZLY]LZHUK[OLZLJ\YPUNVMTVUL`THYRL[SPULZHUK[OLTHPU[LUHUJLVMYLW\YJOHZLMHJPSP[PLZ[VHKKYLZZHU`\UL_WLJ[LKSPX\PKP[`ZP[\H[PVUZ   .YVZZJVU[YHJ[\HSWH`HISL 34,974 15,820 841 1,069 216 52,920
  .YVZZJVU[YHJ[\HSYLJLP]HISL (35,114) (15,896) (865) (1,089) (210) (53,174)
3PX\PKP[`YPZRPZTVUP[VYLKHUKJVU[YVSSLKWYPTHYPS`I`HNHWHUHS`ZPZVMTH[\YP[PLZVMYLSL]HU[HZZL[ZHUKSPHIPSP[PLZYLÅLJ[LKPU[OLTH_PT\TJ\T\SH[P]L (140) (76) (24) (20) 6 (254)
V\[ÅV^4*6YLWVY[HZ^LSSHZHUHUHS`ZPZVMH]HPSHISLSPX\PKHZZL[Z;OL4*6MVJ\ZLZVUHTVU[OWLYPVK^OLYLPU[OLTVU[OJ\T\SH[P]LV\[ÅV^
PZJVTWHYLK[V[OLHJJLW[HISL4*6SPTP[ZL[I`[OL)6+-\Y[OLYTVYLHUPU[LYUHSSPX\PKP[`YH[PVOHZILLUZL[[VKL[LYTPULZ\ѝJPLUJ`VMSPX\PKHZZL[Z )PSSZHUKHJJLW[HUJLZWH`HISL 18,063 17,836 3,221 33 16,858 56,011
V]LYKLWVZP[SPHIPSP[PLZ )VUKZ7H`HISL – – – – 75,601 75,601

3PX\PKP[`PZTVUP[VYLKI`[OLIHURPUNZLNTLU[VUHKHPS`IHZPZ[OYV\NO[OL;YLHZ\Y`.YV\W3PRL^PZL[OL94.TVUP[VYZ[OLZ[H[PJSPX\PKP[`]PH[OL4*6 (JJY\LKPU[LYLZ[WH`HISLHUKHJJY\LKV[OLY
\UKLYUVYTHSHUKZ[YLZZLKZJLUHYPVZ L_WLUZLZWH`HISL 1,254 708 473 404 275 3,114
6[OLYSPHIPSP[PLZ 11,914 Ě Ě Ě 1,075 12,989
;V[HSÄUHUJPHSSPHIPSP[PLZ P749,702 P66,785 P20,840 P10,170 P143,198 P990,695

116 LT G R O U P, I N C . 2019 ANNUAL REPORT 117

 +LJLTILY \UKLYLZ[PTH[LKPMJOHUNLZPUYPZRMHJ[VYZMHPS[VHSPNU^P[O[OLUVYTHS Foreign Interest Equities
KPZ[YPI\[PVUHZZ\TW[PVU=H9TH`HSZVIL\UKLYVYV]LYLZ[PTH[LK Trading Portfolio Exchange* Rate Price Total VaR**
More than More than More than K\L [V [OL HZZ\TW[PVUZ WSHJLK VU YPZR MHJ[VYZ HUK [OL YLSH[PVUZOPW (In Millions)
 <W[V 1 Month to 3 Months to 4VU[OZ[V )L`VUK IL[^LLUZ\JOMHJ[VYZMVYZWLJPÄJPUZ[Y\TLU[Z,]LU[OV\NOWVZP[PVUZ December 29, 2019 P13.13 P278.29 P26.39 P317.81
Month 3 Months 4VU[OZ @LHY `LHY Total TH`JOHUNL[OYV\NOV\[[OLKH`[OL=H9VUS`YLWYLZLU[Z[OLYPZRVM[OL Average Daily 8.98 472.54 17.44 498.96
(In Millions) WVY[MVSPVZH[[OLJSVZLVMLHJOI\ZPULZZKH`HUKP[KVLZUV[HJJV\U[ Highest 27.50 1,160.34 34.89 1,222.73
MVYHU`SVZZLZ[OH[TH`VJJ\YIL`VUK[OL JVUÄKLUJLSL]LS Lowest 0.54 89.02 2.32 91.88
Financial Assets
+LJLTILY     
*6*0 7 7– 7– 7– 7– 7 I =H9HZZ\TW[PVUZWHYHTL[LYZ
(]LYHNL+HPS`       
+\LMYVT):7HUKV[OLYIHURZ  – – – –  =H9LZ[PTH[LZ[OLWV[LU[PHSSVZZVU[OLJ\YYLU[WVY[MVSPVHZZ\TPUNH
/PNOLZ[     
ZWLJPÄLK[PTLOVYPaVUHUKSL]LSVMJVUÄKLUJLH[ ;OL\ZL
0U[LYIHURSVHUZYLJLP]HISL        VMH JVUÄKLUJLSL]LSTLHUZ[OH[^P[OPUHVULKH`OVYPaVU 3V^LZ[    
:LJ\YP[PLZOLSK\UKLYHNYLLTLU[Z[VYLZLSS  – – – –  SVZZLZL_JLLKPUN[OL=H9ÄN\YLZOV\SKVJJ\YVUH]LYHNLUV[TVYL * FX VaR is the bankwide foreign exchange risk
** The high and low for the total portfolio may not equal the sum of the individual
-PUHUJPHSHZZL[ZH[-=;73! [OHUVUJLL]LY`VULO\UKYLKKH`Z
components as the highs and lows of the individual trading portfolios may have
 .V]LYUTLU[ZLJ\YP[PLZ       VJJ\YYLKVUKPќLYLU[[YHKPUNKH`Z
J )HJR[LZ[PUN
 7YP]H[LKLI[ZLJ\YP[PLZ  – – –   ;OL]HSPKP[`VM[OLHZZ\TW[PVUZ\UKLYS`PUN[OLIHURPUNZLNTLU[»Z=H9
Structural Market Risk of the Banking Segment
TVKLSZJHUVUS`ILJOLJRLKI`HWWYVWYPH[LIHJR[LZ[PUNWYVJLK\YLZ
 ,X\P[`ZLJ\YP[PLZ 1     
)HJR[LZ[PUNPZHMVYTHSZ[H[PZ[PJHSMYHTL^VYR[OH[JVUZPZ[ZVM]LYPM`PUN
0U]LZ[TLU[PU<0;-Z  – – – 1  5VU[YHKPUN4HYRL[9PZR
[OH[ HJ[\HS SVZZLZ HYL ^P[OPU [OL WYVQLJ[LK =H9 HWWYV_PTH[PVUZ
Interest rate risk
 +LYP]H[P]LHZZL[Z! ;OL IHURPUN ZLNTLU[ HKVW[Z IV[O [OL JSLHU IHJR[LZ[PUN HUK KPY[`
;OL IHURPUN ZLNTLU[ ZLLRZ [V LUZ\YL [OH[ L_WVZ\YL [V Å\J[\H[PVUZ PU
IHJR[LZ[PUNHWWYVHJOLZHWWYVHJOPUIHJR[LZ[PUN*SLHUIHJR[LZ[PUN
   .YVZZJVU[YHJ[\HSYLJLP]HISL        PU[LYLZ[ YH[LZ HYL RLW[ ^P[OPU HJJLW[HISL SPTP[Z  0U[LYLZ[ THYNPUZ TH`
JVUZPZ[ZVMJVTWHYPUN[OL=H9LZ[PTH[LZ^P[OZVTLO`WV[OL[PJHS7 3
PUJYLHZLHZHYLZ\S[VMZ\JOJOHUNLZI\[TH`ILYLK\JLKVYTH`JYLH[L
   .YVZZJVU[YHJ[\HSWH`HISL        ]HS\LZ VM [OL WVY[MVSPV OH]PUN RLW[ P[Z JVTWVZP[PVU \UJOHUNLK 0U
SVZZLZPU[OLL]LU[[OH[\UL_WLJ[LKTV]LTLU[ZHYPZL
[OPZJHZL[OLZHTLWVY[MVSPVPZYLWYPJLKVYTHYRLK[VTHYRL[H[[OL
     
LUKVM[OL[PTLPU[LY]HSHUK[OLO`WV[OL[PJHS7 3PZ[OLUJVTWHYLK
-PUHUJPHS(ZZL[ZH[-=;6*0! 9LWYPJPUN TPZTH[JOLZ ^PSS L_WVZL [OL IHURPUN ZLNTLU[ [V PU[LYLZ[
^P[O [OL =H9 ;OL V[OLY TL[OVK JHSSLK KPY[` IHJR[LZ[PUN JVUZPZ[Z
YH[L YPZR  75) TLHZ\YLZ [OL ZLUZP[P]P[` VM P[Z HZZL[Z HUK SPHIPSP[PLZ [V
 .V]LYUTLU[ZLJ\YP[PLZ         VM JVTWHYPUN [OL =H9 LZ[PTH[LZ ^P[O [OL HJ[\HS 7 3 ]HS\LZ H[ [OL
PU[LYLZ[YH[LÅ\J[\H[PVUZI`^H`VMH¸YLWYPJPUNNHW¹HUHS`ZPZ\ZPUN[OL
LUKVM[OL[PTLOVYPaVU;OPZTL[OVKOV^L]LYTH`WVZLHWYVISLT
 7YP]H[LKLI[ZLJ\YP[PLZ       YLWYPJPUN JOHYHJ[LYPZ[PJZ VM P[Z ÄUHUJPHS PUZ[Y\TLU[ WVZP[PVUZ [LTWLYLK
PM [OL WVY[MVSPV OHZ JOHUNLK KYHZ[PJHSS` ILJH\ZL VM [YHKPUN HJ[P]P[PLZ
^P[O HWWYV]LK HZZ\TW[PVUZ  ;V L]HS\H[L LHYUPUNZ L_WVZ\YL PU[LYLZ[
 ,X\P[`ZLJ\YP[PLZ – – – –   IL[^LLU [OL ILNPUUPUN HUK [OL LUK VM [OL [PTL OVYPaVU ZPUJL =H9
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Financial Liabilities PZ IL[[LY WVZP[PVULK ILJH\ZL [OL JVTWHU`»Z HZZL[Z HYL YLÄUHUJLK H[
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;YHKPUN THYRL[ YPZR L_PZ[Z PU [OL IHURPUN ZLNTLU[ HZ [OL ]HS\LZ VM
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M\[\YLWYPJLTV]LTLU[Z^PSSMVSSV^HZ[H[PZ[PJHSKPZ[YPI\[PVU+\L[V[OL
=H9 TL[OVKVSVN` HUK /PZ[VYPJHS :PT\SH[PVU TL[OVKVSVN` ^P[O  MHJ[ [OH[ =H9 YLSPLZ OLH]PS` VU OPZ[VYPJHS KH[H [V WYV]PKL PUMVYTH[PVU
JVUÄKLUJL SL]LS TVKLSZ ^LYL ]HSPKH[LK I` HU L_[LYUHS PUKLWLUKLU[ HUK TH` UV[ JSLHYS` WYLKPJ[ [OL M\[\YL JOHUNLZ HUK TVKPÄJH[PVUZ
]HSPKH[VY=VSH[PSP[PLZ\ZLKPU[OLWHYHTL[YPJHYL\WKH[LKVUHKHPS`IHZPZ VM [OL YPZR MHJ[VYZ [OL WYVIHIPSP[` VM SHYNL THYRL[ TV]LZ TH` IL

118 LT G R O U P, I N C . 2019 ANNUAL REPORT 119

 ;OLMVSSV^PUN[HISLZL[ZMVY[O[OLYLWYPJPUNNHWWVZP[PVUVM[OLIHURPUNZLNTLU[! -VYLPNUJ\YYLUJ`KLWVZP[ZHYLNLULYHSS`\ZLK[VM\UK75)»ZMVYLPNUJ\YYLUJ`KLUVTPUH[LKSVHUHUKPU]LZ[TLU[WVY[MVSPVPU[OL-*+<)HURZHYLYLX\PYLK
I`[OL):7[VTH[JO[OLMVYLPNUJ\YYLUJ`SPHIPSP[PLZ^P[O[OLMVYLPNUJ\YYLUJ`HZZL[ZOLSK[OYV\NO-*+<Z0UHKKP[PVU[OL):7YLX\PYLZHSPX\PKP[`
YLZLY]LVUHSSMVYLPNUJ\YYLUJ`SPHIPSP[PLZOLSK[OYV\NO-*+<Z6\[ZPKL[OL-*+<75)OHZHKKP[PVUHSMVYLPNUJ\YYLUJ`HZZL[ZHUKSPHIPSP[PLZPUP[ZMVYLPNU
2019 IYHUJOUL[^VYR
More than More than More than
Up to 1 1 Month to 3 Months to 6 Months to Beyond ;OLIHURPUNZLNTLU[»ZWVSPJ`PZ[VTHPU[HPUMVYLPNUJ\YYLUJ`L_WVZ\YL^P[OPUHJJLW[HISLSPTP[ZHUK^P[OPUL_PZ[PUNYLN\SH[VY`N\PKLSPULZ;OLIHURPUN
Month 3 Months 6 Months 1 Year 1 year Total ZLNTLU[ILSPL]LZ[OH[P[ZWYVÄSLVMMVYLPNUJ\YYLUJ`L_WVZ\YLVUP[ZHZZL[ZHUKSPHIPSP[PLZPZ^P[OPUJVUZLY]H[P]LSPTP[ZMVYHÄUHUJPHSPUZ[P[\[PVULUNHNLKPU[OL
(In Millions) [`WLVMI\ZPULZZPU^OPJO[OLIHURPUNZLNTLU[PZPU]VS]LK
Financial Assets* ;OL[HISLILSV^Z\TTHYPaLZ[OLIHURPUNZLNTLU[»ZL_WVZ\YL[VMVYLPNUL_JOHUNLYH[LYPZR0UJS\KLKPU[OL[HISLHYL[OLÄUHUJPHSHZZL[ZHUKSPHIPSP[PLZH[
+\LMYVT):7HUKV[OLYIHURZ P27,273 P1,575 P564 P128 P94,140 P123,680 JHYY`PUNHTV\U[ZJH[LNVYPaLKI`J\YYLUJ`HTV\U[ZPU7OPSPWWPULWLZVLX\P]HSLU[
0U[LYIHURSVHUZYLJLP]HISLHUKZLJ\YP[PLZ
OLSK\UKLYHNYLLTLU[Z[VYLZLSS 22,442 3,469 1,279 Ě 159 27,349 December 31, 2019 +LJLTILY
9LJLP]HISLZMYVTJ\Z[VTLYZHUKV[OLY USD Others* Total <:+ 6[OLYZ Total
YLJLP]HISLZNYVZZ 148,095 58,598 26,796 8,019 98,959 340,467
(In Millions)
;V[HSÄUHUJPHSHZZL[Z P197,810 P63,642 P28,639 P8,147 P193,258 P491,496
Assets
Financial Liabilities*
*6*0HUKK\LMYVT):7 P149 P335 P484 7 7331 7
+LWVZP[SPHIPSP[PLZ!
+\LMYVTV[OLYIHURZ 9,638 6,084 15,722    
Savings P107,429 P38,894 P20,766 P13,055 P211,626 P391,770
0U[LYIHURSVHUZHUKZLJ\YP[PLZOLSK\UKLY
 ;PTL 149,496 34,112 9,859 9,964 26,464 229,895 agreements to resell 4,880 2,095 6,975    
)VUKZWH`HISL Ě Ě Ě Ě 66,615 66,615 Loans and receivables 22,726 11,047 33,773    
)PSSZHUKHJJLW[HUJLZWH`HISL 33,718 17,038 1,838 732 2,637 55,963 -PUHUJPHS(ZZL[ZH[-=;73 352 Ě 352  1 
;V[HSÄUHUJPHSSPHIPSP[PLZ P290,643 P90,044 P32,463 P23,751 P307,342 P744,243 (-:PU]LZ[TLU[Z-PUHUJPHS(ZZL[ZH[
Repricing gap (92,833) (26,402) (3,824) (15,604) (114,084) (252,747) -=;6*0 1,434 503 1,937   
Cumulative gap (P92,833) (P119,235) (P123,059) (P138,663) (P252,747) PĚ -PUHUJPHSHZZL[ZH[HTVY[PaLKJVZ[/;4
investments 10,061 Ě 10,061    
* Financial instruments that are not subject to repricing/rollforward were excluded.
** Receivables from customers excludes residual value of leased assets (Note 10). 6[OLYHZZL[Z 5,402 2,686 8,088   
***Excludes LTNCD. Total assets 54,642 22,750 77,392   

More than More than More than Liabilities
<W[V 1 Month to 3 Months to 4VU[OZ[V )L`VUK
Month 3 Months 4VU[OZ @LHY `LHY Total Deposit liabilities 7,364 5,194 12,558   
(In Millions) Derivative liabilities 7 7 14 1  3
Financial Assets* )PSSZHUKHJJLW[HUJLZWH`HISL 27,942 13,298 41,240   
+\LMYVT):7HUKV[OLYIHURZ 7 7 7 7 7 7 (JJY\LK[H_LZPU[LYLZ[HUKV[OLY
L_WLUZLZ 154 32 186   
0U[LYIHURSVHUZYLJLP]HISLHUKZLJ\YP[PLZ
OLSK\UKLYHNYLLTLU[Z[VYLZLSS    ò  ò   6[OLYSPHIPSP[PLZ 1,217 945 2,162    
9LJLP]HISLZMYVTJ\Z[VTLYZHUKV[OLY Total liabilities 36,684 19,476 56,160    
YLJLP]HISLZNYVZZ         Net Exposure P17,958 P3,274 P21,232 7  7 7
;V[HSÄUHUJPHSHZZL[Z 7 7  7 7 7  7 6[OLYJ\YYLUJPLZPUJS\KL<(,+PYOHT(,+(\Z[YHSPHKVSSHY(<+)HOYHPUKVSSHY)/+)Y\ULPKVSSHY)5+*HUHKHKVSSHY*(+:^PZZMYHUJ*/-
Financial Liabilities* *OPUH@\HU*5@+LUTHYRRYVULY+22,\YV,<9<2WV\UK.)7/VUN2VUNKVSSHY/2+0UKVULZPHY\WPHO0+91HWHULZL`LU17@5L^
ALHSHUKKVSSHY5A+7/7:H\KP(YHIPHYP`HS:(9:^LKLURYVULY:,2:PUNHWVYLKVSSHY:.+:V\[O2VYLHU^VU:2>;OHPSHUKIHO[;/)HUK
+LWVZP[SPHIPSP[PLZ! ;HP^HUKVSSHY;>+
Savings 7 7 7 7  7   7
0UMVYTH[PVU YLSH[PUN [V [OL IHURPUN ZLNTLU[»Z J\YYLUJ` KLYP]H[P]LZ PZ TP[PNH[LKILJH\ZL[OLJVYYLZWVUKPUN[P[SL[V[OLWYVWLY[`ZVSK\UKLY[OPZ
 ;PTL         
JVU[HPULKPU5V[L HYYHUNLTLU[PZ[YHUZMLYYLK[V[OLI\`LYZVUS`\WVUM\SSWH`TLU[VM[OL
)VUKZWH`HISL ò ò ò ò   JVU[YHJ[WYPJL
)PSSZHUKHJJLW[HUJLZWH`HISL        Financial Risk Management Objectives and Policies of the
Companies in the Group other than the Banking Segment Concentration risk
;V[HSÄUHUJPHSSPHIPSP[PLZ 7 7  7  7 7 7 *VUJLU[YH[PVUZHYPZL^OLUHU\TILYVMJV\U[LYWHY[PLZHYLLUNHNLKPU
Repricing gap        9PZR4HUHNLTLU[:[YH[LNPLZ ZPTPSHY I\ZPULZZ HJ[P]P[PLZ OH]PUN ZPTPSHY LJVUVTPJ MLH[\YLZ [OH[ ^V\SK
Cumulative gap 7 7  7 7  7 7ò ;OL .YV\W»Z WYPUJPWHS ÄUHUJPHS PUZ[Y\TLU[Z JVTWYPZL VM ZOVY[[LYT JH\ZL[OLPYHIPSP[`[VTLL[JVU[YHJ[\HSVISPNH[PVUZ[VILZPTPSHYS`HќLJ[LK
HUK SVUN[LYT KLI[Z HUK *6*0 ;OL THPU W\YWVZL VM [OLZL ÄUHUJPHS I` JOHUNLZ PU LJVUVTPJ WVSP[PJHS VY V[OLY JVUKP[PVUZ *VUJLU[YH[PVUZ
* Financial instruments that are not subject to repricing/rollforward were excluded. PUZ[Y\TLU[Z PZ [V LUZ\YL HKLX\H[L M\UKZ MVY [OL .YV\W»Z VWLYH[PVUZ PUKPJH[L [OL YLSH[P]L ZLUZP[P]P[` VM [OL .YV\W»Z WLYMVYTHUJL [V
** Receivables from customers excludes residual value of leased assets (Note 10). HUK JHWP[HS L_WHUZPVU ,_JLZZ M\UKZ HYL PU]LZ[LK PU H]HPSHISLMVYZHSL KL]LSVWTLU[Z HќLJ[PUN H WHY[PJ\SHY PUK\Z[Y` VY NLVNYHWOPJHS SVJH[PVU
***Excludes LTNCD. ÄUHUJPHSHZZL[Z^P[OH]PL^[VSPX\PKH[L[OLZL[VTLL[]HYPV\ZVWLYH[PVUHS :\JO JYLKP[ YPZR JVUJLU[YH[PVUZ PM UV[ WYVWLYS` THUHNLK TH` JH\ZL
YLX\PYLTLU[Z^OLUULLKLK;OL.YV\WOHZ]HYPV\ZV[OLYÄUHUJPHSHZZL[Z ZPNUPÄJHU[SVZZLZ[OH[JV\SK[OYLH[LU[OL.YV\W»ZÄUHUJPHSZ[YLUN[OHUK
;OL MVSSV^PUN [HISL ZL[Z MVY[O MVY [OL `LHY PUKPJH[LK [OL PTWHJ[ VM YPZRPU[OLIHURPUNIVVRZ[VJVTWSLTLU[[OLLHYUPUNZH[YPZRHWWYVHJO HUK ÄUHUJPHS SPHIPSP[PLZ Z\JO HZ YLJLP]HISLZ HUK HJJV\U[Z WH`HISL HUK \UKLYTPULW\ISPJJVUÄKLUJL*VUJLU[YH[PVUYPZRWLYI\ZPULZZZLNTLU[
JOHUNLZPUPU[LYLZ[YH[LZVU[OLIHURPUNZLNTLU[»ZYLWYPJPUNNHWMVY[OL \ZPUN[OLTVKPÄLKK\YH[PVUHWWYVHJO*VNUPaHU[VM[OPZYLX\PYLTLU[[OL HJJY\LKL_WLUZLZ^OPJOHYPZLKPYLJ[S`MYVTP[ZVWLYH[PVUZ JV\SKHYPZLVU[OLMVSSV^PUN!
`LHYZLUKLK+LJLTILY! 7HYLU[*VTWHU`OHZ\UKLY[HRLU[OLPUP[PHSHJ[P]P[PLZZ\JOHZPKLU[PÄJH[PVU
VM[OLI\ZPULZZYLX\PYLTLU[HUKKLZPNUVM[LTWSH[LZMVYLHJOHJJV\U[ ;OLTHPUYPZRZHYPZPUNMYVT[OL\ZLVMÄUHUJPHSPUZ[Y\TLU[ZHYLJYLKP[YPZR ‹ +PZ[PSSLKZWPYP[ZZLNTLU[»ZHUU\HSZHSLZWLY[HPUTHPUS`[V[^V[Y\Z[LK
HUK[OLPUJS\ZPVUVM[OPZYLX\PYLTLU[PU[OL(ZZL[3PHIPSP[`4HUHNLTLU[ SPX\PKP[`YPZRHUKTHYRL[YPZRZJVUZPZ[PUNVMMVYLPNUL_JOHUNLYPZRPU[LYLZ[ WHY[PLZ^P[OZHSLZ[V[OLTJVTWYPZPUNHIV\[VM[OL[V[HSZLNTLU[
2019  I\ZPULZZYLX\PYLTLU[KLÄUP[PVU YH[LYPZRHUKLX\P[`WYPJLYPZR YL]LU\L
Income Income ‹ )L]LYHNLZLNTLU[HUU\HSZHSLZWLY[HPUTHPUS`[VWHY[PLZ^P[OZHSLZ
Before Before Foreign currency risk *YLKP[9PZR [V[OLTJVTWYPZPUNHIV\[VM[OL[V[HSIL]LYHNLZHSLZ
Income Tax Equity 0UJVTL;H_ ,X\P[` -VYLPNUL_JOHUNLPZ[OLYPZR[VLHYUPUNZVYJHWP[HSHYPZPUNMYVTJOHUNLZ ;OL.YV\WTHUHNLZP[ZJYLKP[YPZRI`[YHUZHJ[PUN^P[OJV\U[LYWHY[PLZVM ‹ ;VIHJJV HUK WYVWLY[` KL]LSVWTLU[ ZLNTLU[Z HYL UV[ L_WVZLK [V
(In Millions) PUMVYLPNUL_JOHUNLYH[LZ;OLIHURPUNZLNTLU[[HRLZVUL_WVZ\YL[V NVVKÄUHUJPHSJVUKP[PVUHUKZLSLJ[PUNPU]LZ[TLU[NYHKLZLJ\YP[PLZ;OL JVUJLU[YH[PVUYPZRILJH\ZLP[OHZKP]LYZLIHZLVMJV\U[LYWHY[PLZ
LќLJ[ZVMÅ\J[\H[PVUZPU[OLWYL]HPSPUNMVYLPNUJ\YYLUJ`L_JOHUNLYH[LZ .YV\W[YHKLZVUS`^P[OYLJVNUPaLKJYLKP[^VY[O`[OPYKWHY[PLZ0UHKKP[PVU
IWZ P574 P574 7 7 VUP[ZÄUHUJPHSZHUKJHZOÅV^Z YLJLP]HISLIHSHUJLZHYLTVUP[VYLKVUHUVUNVPUNIHZPZ^P[O[OLYLZ\S[ *YLKP[X\HSP[`WLYJSHZZVMÄUHUJPHSHZZL[Z
IWZ (574) (574)   [OH[[OL.YV\W»ZL_WVZ\YL[VIHKKLI[ZPZUV[ZPNUPÄJHU[4HUHNLTLU[ ¸:[HUKHYKNYHKL¹HJJV\U[ZJVUZPZ[VMÄUHUJPHSHZZL[ZMYVT[Y\Z[LKWHY[PLZ
-VYLPNUJ\YYLUJ`SPHIPSP[PLZNLULYHSS`JVUZPZ[VMMVYLPNUJ\YYLUJ`KLWVZP[Z JSVZLS`TVUP[VYZ[OLM\UKHUKÄUHUJPHSJVUKP[PVUVM[OL.YV\W ^P[O NVVK ÄUHUJPHS JVUKP[PVU ¸:\IZ[HUKHYK NYHKL¹ HJJV\U[Z VU [OL
IWZ 1,147 1,147  
PU 75)»Z -*+< IVVRZ HJJV\U[Z THKL PU [OL 7OPSPWWPULZ VY ^OPJO HYL V[OLYOHUKHYLÄUHUJPHSHZZL[ZMYVTV[OLYJV\U[LYWHY[PLZ^P[OYLSH[P]LS`
IWZ (1,147) (1,147)   NLULYH[LK MYVT YLTP[[HUJLZ [V [OL 7OPSPWWPULZ I` -PSPWPUV L_WH[YPH[LZ 0U HKKP[PVU JYLKP[ YPZR VM WYVWLY[` KL]LSVWTLU[ ZLNTLU[ PZ THUHNLK SV^ KLMH\S[Z ;OL .YV\W KPK UV[ YLNHYK HU` ÄUHUJPHS HZZL[ HZ ¸OPNO
HUK V]LYZLHZ -PSPWPUV ^VYRLYZ ^OV YL[HPU MVY [OLPY V^U ILULÄ[ VY MVY WYPTHYPS` [OYV\NO HUHS`ZPZ VM YLJLP]HISLZ VU H JVU[PU\V\Z IHZPZ  ;OL NYHKL¹PU]PL^VM[OLLYYH[PJJHZOÅV^ZVY\UJLY[HPU[`HZZVJPH[LK^P[O[OL
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HUKMVYLPNUJ\YYLUJ`KLUVTPUH[LKIVYYV^PUNZHWWLHYPUNPU[OLYLN\SHY YPNO[ [V JHUJLS [OL ZHSLZ JVU[YHJ[ ^P[OV\[ [OL YPZR MVY HU` JV\Y[ HJ[PVU VM MYLX\LU[ KLMH\S[ UL]LY[OLSLZZ [OL HTV\U[ K\L HYL Z[PSS JVSSLJ[PISL
LJVUVTPJ ]HS\L HWWYVHJO PU TLHZ\YPUN [OL PTWHJ[ VM [OL PU[LYLZ[ YH[L IVVRZVM75) HUKJHU[HRLWVZZLZZPVUVM[OLZ\IQLJ[WYVWLY[`PUJHZLVMYLM\ZHSI`[OL 3HZ[S` ¸0TWHPYLK ÄUHUJPHS HZZL[Z¹ HYL [OVZL [OH[ HYL SVUNV\[Z[HUKPUN
I\`LY[VWH`VU[PTL[OLJVU[YHJ[ZYLJLP]HISLZK\L;OPZYPZRPZM\Y[OLY HUKOH]LILLUWYV]PKLK^P[OHSSV^HUJLMVYKV\I[M\SHJJV\U[Z

120 LT G R O U P, I N C . 2019 ANNUAL REPORT 121

 :L[V\[ILSV^PZ[OLPUMVYTH[PVUHIV\[[OLJYLKP[YPZRL_WVZ\YLVU[OL*VTWHU`»ZÄUHUJPHSHZZL[Z\ZPUNWYV]PZPVUTH[YP_PUTPSSPVUZ! Equity price risk
,X\P[` WYPJL YPZR PZ [OL YPZR [OH[ [OL MHPY ]HS\L VM LX\P[PLZ ^PSS KLJYLHZL
(ZVM+LJLTILY ! HZ H YLZ\S[ VM JOHUNLZ PU [OL SL]LSZ VM LX\P[` PUKPJLZ HUK ]HS\L VM
PUKP]PK\HS Z[VJRZ 0U    HUK  JOHUNLZ PU MHPY ]HS\L VM
LX\P[`PUZ[Y\TLU[ZOLSKHZ(-:LX\P[`PUZ[Y\TLU[ZK\L[VHYLHZVUHISL
Trade and other receivables WVZZPISLJOHUNLPULX\P[`PU[LYLZ[^P[OHSSV[OLY]HYPHISLZOLSKJVUZ[HU[
Cash in Due from Days past due ^PSSPUJYLHZLWYVÄ[I`7TPSSPVU7TPSSPVUHUK7TPSSPVU
MHPY ]HS\L PU[LYLZ[ YH[L YPZR ^OPSL ÅVH[PUN YH[L ÄUHUJPHS PUZ[Y\TLU[Z HYL
Z\IQLJ[[VJHZOÅV^PU[LYLZ[YH[LYPZR9LWYPJPUNVMÅVH[PUNYH[LÄUHUJPHS
PUZ[Y\TLU[ZPZTVZ[S`H[PU[LY]HSVM[OYLLTVU[OZVYZP_TVU[OZ
Foreign currency risk
;OL UVUIHURPUN ZLNTLU[ VM [OL .YV\W PZ UV[ ZPNUPÄJHU[S` HќLJ[LK I`
MVYLPNUJ\YYLUJ`YPZRZPUJL[OL.YV\WOHZUVZPNUPÄJHU[MVYLPNUJ\YYLUJ`
related YLZWLJ[P]LS`PMLX\P[`WYPJLZ^PSSPUJYLHZLI`  HUK [YHUZHJ[PVUZ
< 30 days 30-60 days 61-90 days > 90 days YLZWLJ[P]LS` (U LX\HS JOHUNL PU [OL VWWVZP[L KPYLJ[PVU ^V\SK OH]L
banks parties Current Total
KLJYLHZLLX\P[`I`[OLZHTLHTV\U[
Expected credit loss rate 0.13% - 0.13% - 0.13% - 0.13% - 5.00% - 33. 6MMZL[[PUNVM-PUHUJPHS(ZZL[ZHUK-PUHUJPHS3PHIPSP[PLZ
–% –% 82.00% 78.9% 36.00% 93.06% 47.00% Interest rate risk
Estimated total gross carrying 0U[LYLZ[YH[LYPZRHYPZLZMYVT[OLWVZZPIPSP[`[OH[JOHUNLZPUPU[LYLZ[YH[LZ ;OL .YV\W PZ YLX\PYLK [V KPZJSVZL PUMVYTH[PVU HIV\[ YPNO[Z VM VќZL[
amount at default P3,322.7 P2,029.4 P6,934.0 P2,097.7 P2,327.6 P1,274.3 P2,552.3 P15,185.9 ^V\SK\UMH]VYHIS`HќLJ[M\[\YLJHZOÅV^ZMYVTÄUHUJPHSPUZ[Y\TLU[Z(Z HUK YLSH[LK HYYHUNLTLU[Z Z\JO HZ JVSSH[LYHS WVZ[PUN YLX\PYLTLU[Z MVY
VM+LJLTILY HUK[OL.YV\W»ZSVUN[LYTKLI[ZHYLUV[ ÄUHUJPHSPUZ[Y\TLU[Z\UKLYHULUMVYJLHISLTHZ[LYUL[[PUNHNYLLTLU[ZVY
Expected credit loss P– P– P1.2 P5.8 P10.1 P14.2 P302.6 P333.9
L_WVZLK[V[OLYPZRPUJOHUNLZPUTHYRL[PU[LYLZ[YH[LZZPUJL[OLKLI[Z ZPTPSHYHYYHUNLTLU[Z;OLLќLJ[ZVM[OLZLHYYHUNLTLU[ZHYLKPZJSVZLK
(ZVM+LJLTILY! HYLPZZ\LKH[Ä_LKYH[LZ-P_LKYH[LÄUHUJPHSPUZ[Y\TLU[ZHYLZ\IQLJ[[V PU[OLZ\JJLLKPUN[HISLZ

Trade and other receivables

Financial assets
*HZOPU +\LMYVT +H`ZWHZ[K\L
December 31, 2019
related
#KH`Z KH`Z  KH`Z % KH`Z (σHFWRIUHPDLQLQJULJKWVRI
IHURZ parties *\YYLU[ Total
Gross Net amount VHWRσLQFOXGLQJULJKWVWRVHW
,_WLJ[LKJYLKP[SVZZYH[L      RσðQDQFLDOFROODWHUDOWKDW
¶ ¶       amounts presented
Gross RσVHWLQ in the GRQRWPHHW3$6RσVHWWLQJ
,Z[PTH[LK[V[HSNYVZZJHYY`PUN carrying accordance consolidated criteria
HTV\U[H[KLMH\S[ 7 7 7 7 7 7 7 7  Amounts with the statement of Fair value of
,_WLJ[LKJYLKP[SVZZ 7– 7– 7   7 7 7 Financial assets recognized at (before RσVHWWLQJ ðQDQFLDOSRVLWLRQ Financial Financial Net exposure
end of reporting period by type RσVHWWLQJ criteria [a-b] instruments collateral [c-d]
3PX\PKP[`9PZRHUK-\UKPUN4HUHNLTLU[
[a] [b] [c] [d] [e]
3PX\PKP[`YPZRPZNLULYHSS`KLÄULKHZ[OLJ\YYLU[HUKWYVZWLJ[P]LYPZR[VLHYUPUNZVYJHWP[HSHYPZPUNMYVT[OL.YV\W»ZPUHIPSP[`[VTLL[P[ZVISPNH[PVUZ^OLU
[OL`JVTLK\L^P[OV\[PUJ\YYPUN\UHJJLW[HISLSVZZLZVYJVZ[Z (In Thousands)
Derivative assets (Notes 6 and 21) P74,965,186 (P74,592,146) P373,040 (P45,891) PĚ P327,149
;OL.YV\W»ZVIQLJ[P]LPZ[VTHPU[HPUHIHSHUJLIL[^LLUJVU[PU\P[`VMM\UKPUNHUKZV\YJPUNÅL_PIPSP[`[OYV\NO[OL\ZLVMH]HPSHISLÄUHUJPHSPUZ[Y\TLU[Z
;OL.YV\WTHUHNLZP[ZSPX\PKP[`WYVÄSL[VTLL[P[Z^VYRPUNHUKJHWP[HSL_WLUKP[\YLYLX\PYLTLU[ZHUKZLY]PJLKLI[VISPNH[PVUZ(ZWHY[VM[OLSPX\PKP[`YPZR Securities sold under agreements
THUHNLTLU[WYVNYHT[OL.YV\WYLN\SHYS`L]HS\H[LZHUKJVUZPKLYZ[OLTH[\YP[`VMP[ZÄUHUJPHSHZZL[ZLN[YHKLYLJLP]HISLZV[OLYÄUHUJPHSHZZL[ZHUK to repurchase (Note 8) 2,517,764 Ě 2,517,764 Ě (2,517,745) 19
YLZVY[Z[VZOVY[[LYTIVYYV^PUNZ^OLUL]LYP[ZH]HPSHISLJHZOVYTH[\YLKWSHJLTLU[ZPZUV[LUV\NO[VTLL[P[ZKHPS`^VYRPUNJHWP[HSYLX\PYLTLU[Z;VLUZ\YL P77,482,950 (P74,592,146) P2,890,804 (P45,891) (P2,517,745) P327,168
H]HPSHIPSP[`VMZOVY[[LYTIVYYV^PUNZ[OL.YV\WTHPU[HPUZJYLKP[SPULZ^P[OIHURZVUHJVU[PU\PUNIHZPZ
+LJLTILY
;OL.YV\WYLSPLZVUI\KNL[PUNHUKMVYLJHZ[PUN[LJOUPX\LZ[VTVUP[VYJHZOÅV^JVUJLYUZ;OL.YV\WHSZVRLLWZP[ZSPX\PKP[`YPZRTPUPT\TI`WYLWH`PUN ,ќLJ[VMYLTHPUPUNYPNO[ZVM
[V[OLL_[LU[WVZZPISLPU[LYLZ[ILHYPUNKLI[\ZPUNVWLYH[PUNJHZOÅV^Z ZL[VќPUJS\KPUNYPNO[Z[VZL[
.YVZZ 5L[HTV\U[
HTV\U[Z presented VќÄUHUJPHSJVSSH[LYHS[OH[
;OLMVSSV^PUN[HISLZZOV^[OLTH[\YP[`WYVÄSLVM[OL.YV\W»ZV[OLYÄUHUJPHSSPHIPSP[PLZ\UKPZJV\U[LKHTV\U[ZVMWYPUJPWHSHUKYLSH[LKPU[LYLZ[HZ^LSSHZ[OL KVUV[TLL[7(:VќZL[[PUN
ÄUHUJPHSHZZL[Z\ZLKMVYSPX\PKP[`THUHNLTLU[(in millions)! .YVZZ VќZL[PU in the
JHYY`PUN accordance consolidated criteria
(TV\U[Z ^P[O[OL statement of -HPY]HS\LVM
2019  -PUHUJPHSHZZL[ZYLJVNUPaLKH[ ILMVYL VќZL[[PUN ÄUHUJPHSWVZP[PVU -PUHUJPHS -PUHUJPHS 5L[L_WVZ\YL
Less than 1 to less than Less than 1 to less than LUKVMYLWVY[PUNWLYPVKI`[`WL VќZL[[PUN criteria BHID PUZ[Y\TLU[Z collateral BJKD
one year 3 years Total VUL`LHY `LHYZ Total BHD BID BJD BKD BLD
*HZOHUKV[OLYJHZOP[LTZ P3,323 P– P3,323 7 7– 7 (In Thousands)
Trade receivables 14,940 – 14,940  –  +LYP]H[P]LHZZL[Z5V[LZHUK 7 7  7  7 7ò 7
6[OLYYLJLP]HISLZ 3,401 – 3,401  –  :LJ\YP[PLZZVSK\UKLYHNYLLTLU[Z
[VYLW\YJOHZL5V[L  ò  ò    
+\LMYVTYLSH[LKWHY[PLZ 2,029 – 2,029  – 
7 7  7  7 7   7 
9LM\UKHISLKLWVZP[Z 178 – 178  – 
-PUHUJPHSHZZL[ZH[-=;73 7 – 7  –  Financial liabilities
P23,878 P– P23,878 7 7– 7
December 31, 2019
2019  (σHFWRIUHPDLQLQJULJKWVRI
Less than 1 to less than Less than 1 to less than Gross Net amount VHWRσLQFOXGLQJULJKWVWRVHW
amounts presented RσðQDQFLDOFROODWHUDOWKDW
one year 3 years Total VUL`LHY `LHYZ Total
Gross RσVHWLQ in the GRQRWPHHW3$6RσVHWWLQJ
Short term debts P3,323 P– P3,323 7 7– 7 criteria
carrying accordance consolidated
(JJV\U[ZWH`HISLHUKV[OLY Amounts with the statement of Fair value of
SPHIPSP[PLZ 14,940 – 14,940  –  Financial assets recognized at (before RσVHWWLQJ ðQDQFLDOSRVLWLRQ Financial Financial Net exposure
3VUN[LYTKLI[Z 443 3,705 4,148     end of reporting period by type RσVHWWLQJ criteria [a-b] instruments collateral [c-d]
+\L[VYLSH[LKWHY[PLZ 65 – 65  –  [a] [b] [c] [d] [e]
6[OLYSPHIPSP[PLZ 2,456 1,519 3,975    (In Thousands)
P21,227 P5,224 P26,451 7 7 7 +LYP]H[P]LSPHIPSP[PLZ5V[LZHUK P60,131,350 (P59,885,731) P245,619 (P155,245) PĚ P90,374
,_JS\KPUNUVUÄUHUJPHSSPHIPSP[PLZHTV\U[PUN[VP134.3 million and PTPSSPVUHZVM+LJLTILY HUKYLZWLJ[P]LS` :LJ\YP[PLZZVSK\UKLYHNYLLTLU[Z
[VYLW\YJOHZL5V[L 23,268,257 Ě 23,268,257 Ě (29,655,404) (6,387,147)
4HYRL[9PZRZVM[OL.YV\WV[OLY[OHU[OL)HURPUN:LNTLU[ 4HUHNLTLU[VMÄUHUJPHSTHYRL[YPZRPZHRL`WYPVYP[`MVY[OL.YV\W;OL Total P83,399,607 (P59,885,731) P23,513,876 (P155,245) (P29,655,404) P6,296,773
;OL .YV\W»Z VWLYH[PUN PU]LZ[PUN HUK ÄUHUJPUN HJ[P]P[PLZ HYL KPYLJ[S` .YV\WNLULYHSS`HWWSPLZZLUZP[P]P[`HUHS`ZPZPUHZZLZZPUNHUKTVUP[VYPUN 0UJS\KLKPUIPSSZHUKHJJLW[HUJLZWH`HISLPU[OLJVUZVSPKH[LKZ[H[LTLU[VMÄUHUJPHSWVZP[PVU
HќLJ[LK I` JOHUNLZ PU MVYLPNU L_JOHUNL YH[LZ HUK PU[LYLZ[ YH[LZ P[ZTHYRL[YPZRZ:LUZP[P]P[`HUHS`ZPZLUHISLZTHUHNLTLU[[VPKLU[PM`[OL
0UJYLHZPUNTHYRL[Å\J[\H[PVUZPU[OLZL]HYPHISLZTH`YLZ\S[PUZPNUPÄJHU[ YPZRWVZP[PVUVM[OL.YV\WHZ^LSSHZWYV]PKLHUHWWYV_PTH[LX\HU[PÄJH[PVU
LX\P[`JHZOÅV^HUKWYVÄ[]VSH[PSP[`YPZRZMVY[OL.YV\W-VY[OPZYLHZVU VM[OLYPZRL_WVZ\YLZ,Z[PTH[LZWYV]PKLKMVYMVYLPNUL_JOHUNLYPZRJHZO
[OL.YV\WZLLRZ[VTHUHNLHUKJVU[YVS[OLZLYPZRZWYPTHYPS`[OYV\NOP[Z ÅV^ PU[LYLZ[ YH[L YPZR WYPJL PU[LYLZ[ YH[L YPZR HUK LX\P[` WYPJL YPZR HYL
YLN\SHYVWLYH[PUNHUKÄUHUJPUNHJ[P]P[PLZ IHZLKVU[OLOPZ[VYPJHS]VSH[PSP[`MVYLHJOTHYRL[MHJ[VY^P[OHKQ\Z[TLU[Z
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WVZZPISL

122 LT G R O U P, I N C . 2019 ANNUAL REPORT 123

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JVUZVSPKH[LKZ[H[LTLU[VMÄUHUJPHSWVZP[PVUPUWHY[PJ\SHYJPYJ\TZ[HUJLZ
;OLZL PUJS\KL SHUK HUK SHUK PTWYV]LTLU[Z I\PSKPUNZ HUK I\PSKPUN
PTWYV]LTLU[Z HUK THJOPULYPLZ HUK LX\PWTLU[ TLHZ\YLK H[ YL]HS\LK
HTV\U[HUKPU]LZ[TLU[WYVWLY[PLZTLHZ\YLKH[JVZ[I\[^P[OMHPY]HS\L
TLHZ\YLTLU[KPZJSVZ\YL
(In Thousands)
7  7  7ò 7
ò  ò   ò SHJRVMZ\P[HISLTL[OVKZVMHYYP]PUNH[HYLSPHISLMHPY]HS\L
7  7    7
;OL .YV\W»Z THUHNLTLU[ KL[LYTPULZ [OL WVSPJPLZ HUK WYVJLK\YLZ MVY
IV[OYLJ\YYPUNHUKUVUYLJ\YYPUNMHPY]HS\LTLHZ\YLTLU[
,_[LYUHS]HS\LYZHYLPU]VS]LKMVY]HS\H[PVUVMZPNUPÄJHU[HZZL[ZZ\JOHZ
PU]LZ[TLU[WYVWLY[PLZSHUKHUKSHUKPTWYV]LTLU[ZWSHU[I\PSKPUNZHUK
I\PSKPUNPTWYV]LTLU[ZHUKTHJOPULYPLZHUKLX\PWTLU[0U]VS]LTLU[VM
L_[LYUHS ]HS\LYZ PZ KLJPKLK \WVU HUU\HSS` I` THUHNLTLU[  :LSLJ[PVU
JYP[LYPH PUJS\KL THYRL[ RUV^SLKNL YLW\[H[PVU PUKLWLUKLUJL HUK
^OL[OLYWYVMLZZPVUHSZ[HUKHYKZHYLTHPU[HPULK4HUHNLTLU[KLJPKLZ
HM[LY KPZJ\ZZPVUZ ^P[O [OL .YV\W»Z L_[LYUHS ]HS\LYZ ^OPJO ]HS\H[PVU
[LJOUPX\LZHUKPUW\[Z[V\ZLMVYLHJOJHZL
([ LHJO YLWVY[PUN KH[L THUHNLTLU[ HUHS`ZLZ [OL TV]LTLU[Z PU [OL
]HS\LZVMHZZL[ZHUKSPHIPSP[PLZ^OPJOHYLYLX\PYLK[VILYLTLHZ\YLKVY
YLHZZLZZLK HZ WLY [OL .YV\W»Z HJJV\U[PUN WVSPJPLZ  -VY [OPZ HUHS`ZPZ
THUHNLTLU[]LYPÄLZ[OLTHQVYPUW\[ZHWWSPLKPU[OLSH[LZ[]HS\H[PVUI`
HNYLLPUN[OLPUMVYTH[PVUPU[OL]HS\H[PVUJVTW\[H[PVU[VJVU[YHJ[ZHUK
V[OLY YLSL]HU[ KVJ\TLU[Z ^P[O YLSL]HU[ L_[LYUHS ZV\YJLZ [V KL[LYTPUL
^OL[OLY[OLJOHUNLPZYLHZVUHISL
[PTLKLWVZP[ZYHUNLZMYVT[VHUK[VHZVM
,X\P[` ZLJ\YP[PLZ  MHPY ]HS\LZ VM X\V[LK LX\P[` ZLJ\YP[PLZ HYL IHZLK VU +LJLTILY HUKYLZWLJ[P]LS`
X\V[LKTHYRL[WYPJLZ>OPSLMHPY]HS\LZVM\UX\V[LKLX\P[`ZLJ\YP[PLZHYL
[OLZHTLHZ[OLJHYY`PUN]HS\LZPUJL[OLMHPY]HS\LJV\SKUV[ILYLSPHIS` Fair value hierarchy
KL[LYTPULKK\L[V[OL\UWYLKPJ[HISLUH[\YLVMM\[\YLJHZOÅV^ZHUK[OL ;OL .YV\W \ZLZ [OL MVSSV^PUN OPLYHYJO` MVY KL[LYTPUPUN HUK KPZJSVZPUN
[OLMHPY]HS\LVMHZZL[ZHUKSPHIPSP[PLZI`]HS\H[PVU[LJOUPX\L;OLZLSL]LSZ
HYLIHZLKPU[OLPUW\[Z[OH[HYL\ZLK[VKL[LYTPUL[OLMHPY]HS\LHUKJHU
3VHUZ HUK YLJLP]HISLZ  -VY SVHUZ ^P[O Ä_LK PU[LYLZ[ YH[LZ MHPY ]HS\LZ ILZ\TTHYPaLKPU!
HYLLZ[PTH[LKI`KPZJV\U[LKJHZOÅV^TL[OVKVSVN`\ZPUN[OL.YV\W»Z
J\YYLU[ THYRL[ SLUKPUN YH[LZ MVY ZPTPSHY [`WLZ VM SVHUZ -VY SVHUZ ^P[O 3L]LS!X\V[LK\UHKQ\Z[LKWYPJLZPUHJ[P]LTHYRL[ZMVYPKLU[PJHSHZZL[Z
ÅVH[PUNPU[LYLZ[YH[LZ^P[OYLWYPJPUNMYLX\LUJPLZVUHX\HY[LYS`IHZPZ[OL or liabilities
.YV\WHZZ\TLZ[OH[[OLJHYY`PUNHTV\U[HWWYV_PTH[LZMHPY]HS\L 3L]LS ! V[OLY [LJOUPX\LZ MVY ^OPJO HSS PUW\[Z ^OPJO OH]L H ZPNUPÄJHU[
LќLJ[VU[OLYLJVYKLKMHPY]HS\LHYLVIZLY]HISLLP[OLYKPYLJ[S`VYPUKPYLJ[S`
3PHIPSP[PLZ,_JLW[MVY[PTLKLWVZP[SPHIPSP[PLZZ\IVYKPUH[LKKLI[IVUKZ 3L]LS![LJOUPX\LZ^OPJO\ZLPUW\[Z^OPJOOH]LHZPNUPÄJHU[LќLJ[VU
WH`HISL\UZLJ\YLK[LYTSVHUZUV[LZWH`HISLWH`HISL[VSHUKV^ULYZ [OLYLJVYKLKMHPY]HS\L[OH[HYLUV[IHZLKVUVIZLY]HISLTHYRL[KH[H
;OL.YV\WOLSK[OLMVSSV^PUNHZZL[ZHUKSPHIPSP[PLZTLHZ\YLKH[MHPY]HS\LHUKH[JVZ[I\[^OPJOMHPY]HS\LZHYLKPZJSVZLKHUK[OLPYJVYYLZWVUKPUNSL]LSPU
MHPY]HS\LOPLYHYJO`!
December 31, 2019
Level 1 Level 2 Level 3 Total
(In Thousands)
$VVHWVPHDVXUHGDWIDLUYDOXH
Financial Assets
-PUHUJPHSHZZL[ZH[-=;73!
/LSKMVY[YHKPUN!
.V]LYUTLU[ZLJ\YP[PLZ P4,258,245 P4,245,577 P– P8,503,822

(ZVM+LJLTILY HUK[OLJHYY`PUN]HS\LZVM[OL.YV\W»ZÄUHUJPHSHZZL[ZHUKSPHIPSP[PLZHWWYV_PTH[L[OLPYYLZWLJ[P]LMHPY]HS\LZL_JLW[MVY Derivative assets – 373,040 – 373,040

[OLMVSSV^PUNÄUHUJPHSPUZ[Y\TLU[Z! 7YP]H[LKLI[ZLJ\YP[PLZ 2,246,515 883,641 – 3,130,156
,X\P[`ZLJ\YP[PLZ 1,455,435 – – 1,455,435
+LJLTILY +LZPNUH[LKH[-=;73!
December 31, 2019 (Z9LZ[H[LK5V[L
0U]LZ[TLU[PU<0;-Z 1,373 5,554 – 6,927
Carrying Value Fair Value *HYY`PUN=HS\L -HPY=HS\L
P7,961,568 P5,507,812 P– P13,469,380
(In Thousands)
-PUHUJPHSHZZL[ZH[-=;6*0!
)LQDQFLDO$VVHWV
.V]LYUTLU[ZLJ\YP[PLZ P66,204,545 P24,845,170 P– P91,049,715
-PUHUJPHSHZZL[ZH[HTVY[PaLKJVZ[ P100,464,757 P101,580,817 7  7  
7YP]H[LKLI[ZLJ\YP[PLZ 9,130,230 18,496,386 2,763,386 30,390,002
3VHUZHUKYLJLP]HISLZ!
,X\P[`ZLJ\YP[PLZ 428,706 790,013 482,404 1,701,123
9LJLP]HISLZMYVTJ\Z[VTLYZ 636,950,500 695,304,130  
P75,763,481 P44,131,569 P3,245,790 P123,140,840
P737,415,257 P796,884,947 7 7
1RQðQDQFLDODVVHWV
)LQDQFLDO/LDELOLWLHV
7YVWLY[`WSHU[HUKLX\PWTLU[
-PUHUJPHSSPHIPSP[PLZH[HTVY[PaLKJVZ[!
Land and land improvements P– P– P38,519,042 P38,519,042
+LWVZP[SPHIPSP[PLZ
7SHU[I\PSKPUNZHUKI\PSKPUNPTWYV]LTLU[Z – – 13,951,514 13,951,514
Time deposits P226,894,643 P226,525,853 7 7
4HJOPULYPLZHUKLX\PWTLU[ – – 7,341,355 7,341,355
)PSSZWH`HISLZ 53,270,956 56,049,095   
P– P– P59,811,911 P59,811,911
3VUN[LYTKLI[Z!
/LDELOLWLHVPHDVXUHGDWIDLUYDOXH
:\IVYKPUH[LKKLI[ 3,497,797 3,551,484    
Financial liabilities
<UZLJ\YLK[LYTSVHU 2,334,259 2,051,108    
-PUHUJPHSSPHIPSP[PLZH[-=;73!
)VUKZWH`HISL 66,615,078 69,640,930   
+LZPNUH[LKH[-=;73!
3;5*+ 35,152,104 35,311,473  
Derivative liabilities P– P245,619 P– P245,619
6[OLYSPHIPSP[PLZ!
P– P245,619 P– P245,619
7H`HISL[VSHUKV^ULYZ 1,828,949 1,828,949  
$VVHWVIRUZKLFKIDLUYDOXHVDUHGLVFORVHG
;LUHU[Z»YLU[HSKLWVZP[Z 560,992 560,992    
Financial Assets
P390,154,778 P395,519,884 7 7  
-PUHUJPHSHZZL[ZH[HTVY[PaLKJVZ[ 30,455,373 70,924,643 200,801 101,580,817
3VHUZHUKYLJLP]HISLZ!
9LJLP]HISLZMYVTJ\Z[VTLYZ – – 695,304,130 695,304,130
P30,455,373 P70,924,643 P695,504,931 P796,884,947
-VY^HYK

124 LT G R O U P, I N C . 2019 ANNUAL REPORT 125

 December 31, 2019 +LJLTILY(Z9LZ[H[LK5V[L
Level 1 Level 2 Level 3 Total Level 1 3L]LS Level 3 Total
(In Thousands) (In Thousands)
1RQðQDQFLDO$VVHWV 1RQðQDQFLDO$VVHWV
0U]LZ[TLU[WYVWLY[PLZ 0U]LZ[TLU[WYVWLY[PLZ
Land P– P– P23,894,410 P23,894,410 Land 7– 7– 7 7
)\PSKPUNZHUKPTWYV]LTLU[Z – – 4,844,980 4,844,980 )\PSKPUNZHUKPTWYV]LTLU[Z – –  
P– P– P28,739,390 P28,739,390 7– 7– 7 7
/LDELOLWLHVIRUZKLFKIDLUYDOXHVDUHGLVFORVHG /LDELOLWLHVIRUZKLFKIDLUYDOXHVDUHGLVFORVHG
Financial liabilities Financial liabilities
-PUHUJPHSSPHIPSP[PLZH[HTVY[PaLKJVZ[! -PUHUJPHSSPHIPSP[PLZH[HTVY[PaLKJVZ[!
+LWVZP[SPHIPSP[PLZ! +LWVZP[SPHIPSP[PLZ!
Time deposits P– P– P 226,525,853 P 226,525,853 Time deposits 7ò 7ò 7 7
3VUN[LYTKLI[Z! 3VUN[LYTKLI[Z!
 )PSSZWH`HISL – – 56,049,095 56,049,095 )PSSZWH`HISL ò ò  
 <UZLJ\YLK[LYTSVHU – – 2,051,108 2,051,108 <UZLJ\YLK[LYTSVHU ò ò  
 )VUKZWH`HISL 39,517,123 30,123,807 Ě 69,640,930 )VUKZWH`HISL   ò ò  
 3;5*+ – 35,311,473 Ě 35,311,473 3;5*+  ò ò 
6[OLYSPHIPSP[PLZ! 6[OLYSPHIPSP[PLZ!
 7H`HISL[VSHUKV^ULYZ – – 1,828,949 1,828,949 7H`HISL[VSHUKV^ULYZ ò ò  
 ;LUHU[Z»YLU[HSKLWVZP[Z – – 560,992 560,992 ;LUHU[Z»YLU[HSKLWVZP[Z ò ò      
P39,517,123 P65,435,280 P287,015,997 P391,968,400 7 7ò 7   7
* Excludes cash component * Excludes cash component
** Excludes unquoted available-for-sale securities ** Excludes unquoted available-for-sale securities
 )HZLKVU[OLMHPY]HS\LZMYVTHWWYHPZHSYLWVY[Z^OPJOHYLKPќLYLU[MYVT[OLPYJHYY`PUNHTV\U[Z^OPJOHYLJHYYPLKH[JVZ[  )HZLKVU[OLMHPY]HS\LZMYVTHWWYHPZHSYLWVY[Z^OPJOHYLKPќLYLU[MYVT[OLPYJHYY`PUNHTV\U[Z^OPJOHYLJHYYPLKH[JVZ[

>OLUMHPY]HS\LZVMSPZ[LKLX\P[`HUKKLI[ZLJ\YP[PLZHZ^LSSHZW\ISPJS`[YHKLKKLYP]H[P]LZH[[OLYLWVY[PUNKH[LHYLIHZLKVUX\V[LKTHYRL[WYPJLZVY
+LJLTILY(Z9LZ[H[LK5V[L IPUKPUNKLHSLYWYPJLX\V[H[PVUZ^P[OV\[HU`KLK\J[PVUMVY[YHUZHJ[PVUJVZ[Z[OLPUZ[Y\TLU[ZHYLPUJS\KLK^P[OPU3L]LSVM[OLOPLYHYJO`
Level 1 3L]LS Level 3 Total
(In Thousands) ;OL\UX\V[LKKLI[ZLJ\YP[PLZMHPY]HS\LZHYLLZ[PTH[LKIHZLKVU[OLTHYRL[KH[HHWWYVHJO[OH[THRLZ\ZLVMTHYRL[T\S[PWSLZKLYP]LKMYVTHZL[VM
JVTWHYHISL4\S[PWSLZ^LYLKL[LYTPULK[OH[PZTVZ[YLSL]HU[[VHZZLZZPUN[OL]HS\LVM[OL\UX\V[LKZLJ\YP[PLZLNLHYUPUNZIVVR]HS\L;OLZLSLJ[PVU
$VVHWVPHDVXUHGDWIDLUYDOXH VM[OLHWWYVWYPH[LT\S[PWSL^P[OPU[OLYHUNLPZIHZLKVUX\HSP[H[P]LHUKX\HU[P[H[P]LMHJ[VYZZWLJPÄJ[V[OLTLHZ\YLTLU[
Financial Assets
-VY HSS V[OLY ÄUHUJPHS PUZ[Y\TLU[Z MHPY ]HS\L PZ KL[LYTPULK \ZPUN ]HS\H[PVU [LJOUPX\LZ =HS\H[PVU [LJOUPX\LZ PUJS\KL UL[ WYLZLU[ ]HS\L [LJOUPX\LZ
-PUHUJPHSHZZL[ZH[-=;73!
JVTWHYPZVU[VZPTPSHYPUZ[Y\TLU[ZMVY^OPJOTHYRL[VIZLY]HISLWYPJLZL_PZ[HUKV[OLYYL]HS\H[PVUTVKLSZ
/LSKMVY[YHKPUN!
.V]LYUTLU[ZLJ\YP[PLZ 7  7 7– 7 :PNUPÄJHU[PUW\[\ZLKPUKL[LYTPUPUNMHPY]HS\LZVMÄUHUJPHSPUZ[Y\TLU[Z\UKLY3L]LSJVTWYPZLZVMPU[LYWVSH[LKTHYRL[YH[LZVMILUJOTHYRZLJ\YP[PLZ-VY
PU]LZ[TLU[ZPU<0;-ZMHPY]HS\LZHYLKL[LYTPULKIHZLKVUW\ISPZOLK5(=7<HZVMYLWVY[PUNKH[L
Derivative assets  ò ò 
7YP]H[LKLI[ZLJ\YP[PLZ ò    (ZVM+LJLTILY HUK[OLYL^LYLUV[YHUZMLYZIL[^LLU3L]LSHUK3L]LSMHPY]HS\LTLHZ\YLTLU[ZHUKUV[YHUZMLYZPU[VHUKV\[VMSL]LS
,X\P[`ZLJ\YP[PLZ ò  ò  MHPY]HS\LTLHZ\YLTLU[Z

+LZPNUH[LKH[-=;73! ;OL[HISLILSV^Z\TTHYPaLZ[OL]HS\H[PVU[LJOUPX\LZ\ZLKHUK[OLZPNUPÄJHU[\UVIZLY]HISLPUW\[Z]HS\H[PVUMVYLHJO[`WLVMWYVWLY[`WSHU[HUKLX\PWTLU[
0U]LZ[TLU[PU<0;-Z ò    ò    HUKPU]LZ[TLU[WYVWLY[PLZOLSKI`[OL.YV\W!
7 7 7 7
(-:PU]LZ[TLU[Z! Valuation 6LJQLðFDQW
Techniques Unobservable Inputs Range of Estimates
.V]LYUTLU[ZLJ\YP[PLZ 7  7  7ò 7 
7YVWLY[`WSHU[HUKLX\PWTLU[!
7YP]H[LKLI[ZLJ\YP[PLZ    ò 
Land and land improvements 4HYRL[+H[H(WWYVHJO 7YPJLWLYZX\HYLTL[LY 77
,X\P[`ZLJ\YP[PLZ    ò 
7SHU[I\PSKPUNZHUKI\PSKPUN
7  7 7ò 7  improvements
1RQðQDQFLDODVVHWV )\PSKPUN 9LWSHJLHISL-P_LK(ZZL[=HS\H[PVU 9LWSHJLTLU[JVZ[ 77
7YVWLY[`WSHU[HUKLX\PWTLU[ (WWYVHJO ,Z[PTH[LK[V[HSÅVVYHYLH ZXT
Land and land improvements 7– 7– 7  7  )\PSKPUNPTWYV]LTLU[Z 9LWSHJLHISL-P_LK(ZZL[=HS\H[PVU 9LWSHJLTLU[JVZ[ 7TPSSPVU7TPSSPVU
(WWYVHJO ,Z[PTH[LKU\TILYVMJVTWVULU[Z
7SHU[I\PSKPUNZHUKI\PSKPUNPTWYV]LTLU[Z – –  
JVTWVULU[Z
4HJOPULYPLZHUKLX\PWTLU[ – –    
4HJOPULYPLZHUKLX\PWTLU[ 9LWSHJLHISL-P_LK(ZZL[=HS\H[PVU 9LWSHJLTLU[JVZ[ 77TPSSPVU
7– 7– 7 7 (WWYVHJO ,Z[PTH[LKU\TILYVMJVTWVULU[Z
/LDELOLWLHVPHDVXUHGDWIDLUYDOXH JVTWVULU[Z
Financial liabilities 0U]LZ[TLU[WYVWLY[PLZ!
-PUHUJPHSSPHIPSP[PLZH[-=;73! Land 4HYRL[+H[H(WWYVHJO 7YPJLWLYZX\HYLTL[LY 77
ZPaLSVJH[PVUZOHWL[PTL
+LZPNUH[LKH[-=;73! LSLTLU[HUKJVYULYPUÅ\LUJL
Derivative liabilities –  –  3HUKHUKI\PSKPUN 4HYRL[+H[H(WWYVHJOHUK 5L^9LWYVK\J[PVU*VZ[
7– 7 7– 7 9LWSHJLTLU[*VZ[(WWYVHJO
$VVHWVIRUZKLFKIDLUYDOXHVDUHGLVFORVHG :PNUPÄJHU[MH]VYHISL\UMH]VYHISLHKQ\Z[TLU[Z[V[OLHMVYLTLU[PVULKMHJ[VYZIHZLKVU[OLWYVMLZZPVUHSQ\KNTLU[VM[OLPUKLWLUKLU[HWWYHPZLYZ^V\SK
Financial Assets PUJYLHZL KLJYLHZL [OL MHPY ]HS\L VM SHUK :PNUPÄJHU[ PUJYLHZLZ KLJYLHZLZ PU [OL J\YYLU[ YLWSHJLTLU[ JVZ[ ^V\SK YLZ\S[ PU ZPNUPÄJHU[S` OPNOLY SV^LY
HWWYHPZLK]HS\LZ^OLYLHZZPNUPÄJHU[PUJYLHZLKLJYLHZLPU[OLYLTHPUPUN\ZLM\SSPMLVM[OLWYVWLY[`WSHU[HUKLX\PWTLU[V]LY[OLPY[V[HS\ZLM\SSPML^V\SK
-PUHUJPHSHZZL[ZH[HTVY[PaLKJVZ[ 7  7   7 7  YLZ\S[PUZPNUPÄJHU[S`OPNOLYSV^LYHWWYHPZLK]HS\LZ
3VHUZHUKYLJLP]HISLZ!
9LJLP]HISLZMYVTJ\Z[VTLYZ – –  
7  7   7  7 
-VY^HYK

126 LT G R O U P, I N C . 2019 ANNUAL REPORT 127

 +LZJYPW[PVU VM [OL ]HS\H[PVU [LJOUPX\LZ HUK ZPNUPÄJHU[ \UVIZLY]HISL 35. Notes to Consolidated Statements of Cash Flows 75)HUKP[ZPUKP]PK\HSS`YLN\SH[LKZ\IZPKPHYPLZVWLYH[PVUZOH]LJVTWSPLK ):7 *(9 YLX\PYLTLU[ I\[ ^PSS HSZV JV]LY HSS TH[LYPHS YPZRZ [OH[ P[ TH`
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HUKPU]LZ[TLU[WYVWLY[PLZHYLHZMVSSV^Z! Non-cash Investing Activities JSVZL PU[LNYH[PVU VM JHWP[HS WSHUUPUNZ[YH[LNPJ THUHNLTLU[ ^P[O YPZR
6U 1HU\HY`   [OL ):7 PZZ\LK *PYJ\SHY 5V  )HZLS 000 THUHNLTLU[  75) OHZ PU WSHJL H YPZR THUHNLTLU[ MYHTL^VYR [OH[
H (Z VM +LJLTILY    HUK  \UWHPK HKKP[PVUZ [V WYVWLY[` 0TWSLTLU[PUN .\PKLSPULZ VU 4PUPT\T *HWP[HS 9LX\PYLTLU[Z ^OPJO PU]VS]LZ H JVSSHIVYH[P]L WYVJLZZ MVY HZZLZZPUN HUK THUHNPUN PKLU[PÄLK
Description WSHU[ HUK LX\PWTLU[ HTV\U[LK [V 7 TPSSPVU HUK 7 TPSSPVU WYV]PKLZ [OL PTWSLTLU[PUN N\PKLSPULZ VU [OL YL]PZLK YPZRIHZLK JHWP[HS 7PSSHY  HUK 7PSSHY  YPZRZ  75) JVTWSPLZ ^P[O [OL YLX\PYLK HUU\HS
=HS\H[PVU;LJOUPX\LZ YLZWLJ[P]LS` ^OPJO PZ PUJS\KLK HZ WHY[ VM ¸(JJV\U[Z WH`HISL HUK HKLX\HJ`MYHTL^VYRWHY[PJ\SHYS`VU[OLTPUPT\TJHWP[HSHUKKPZJSVZ\YL Z\ITPZZPVUVM\WKH[LK0*((7
HJJY\LKL_WLUZLZ¹ YLX\PYLTLU[Z MVY \UP]LYZHS IHURZ HUK JVTTLYJPHS IHURZ HZ ^LSS HZ
4HYRL[+H[H(WWYVHJO (WYVJLZZVMJVTWHYPUN[OLZ\IQLJ[WYVWLY[` [OLPYZ\IZPKPHY`IHURZHUKX\HZPIHURZPUHJJVYKHUJL^P[O[OL)HZLS000
being appraised to similar comparable I 0U HUK[OL.YV\WYLJSHZZPÄLKJVZ[VMSHUK^OPJO Z[HUKHYKZ;OLJPYJ\SHYPZLќLJ[P]LVU1HU\HY` 37. 9LZ[H[LTLU[ZVM7YPVY@LHY-PUHUJPHS:[H[LTLU[Z
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Consolidated Statement of Financial Position
Assets
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reported Restatements As restated
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128 LT G R O U P, I N C . 2019 ANNUAL REPORT 129


Consolidated Statement of Income
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YLZWLJ[P]LS`

130 LT G R O U P, I N C . 2019 ANNUAL REPORT 131

 39. Notes to Statements of Cash Flows

Cash Flows from Financing Activities

The changes in liabilities arising from financing activities in 2019 and 2018 follow:

Consolidated
2019
Beginning
balance
(As restated – Net cash Ending
Note 37) flows Others balance
Bills and acceptances payable P70,082,835 (P11,348,364) (P2,771,181) P55,963,290

SUSTAINABILITY
Bonds payable 15,661,372 51,899,720 (946,014) 66,615,078
Lease liabilities 1,859,717 (641,613) 588,305 1,806,409
P87,603,924 P39,909,743 (P3,128,890) P124,384,777

Consolidated

REPORT 2019
2018
Beginning Net cash Ending
balance flows Others balance
Bills and acceptances payable P43,916,687 P24,867,590 P1,298,558 P70,082,835
Bonds payable – 15,398,696 262,676 15,661,372
P43,916,687 P40,266,286 P1,561,234 P85,744,207

Others include the effects of foreign exchange revaluations, amortization of transaction costs, and accretion of interest.

Non-cash Transactions
Effective January 1, 2019, the Group adopted PFRS 16, in which the Group recognized right-of-use asset and the corresponding lease liabilities,
Building a Sustainable Foundation
adjusted for previously recognized prepaid and accrued lease payments. Additions to the right-of-use assets of the Group in 2019 amounted to
P461.9 million. The Group recognized additional lease liabilities in 2019 amounting to P456.6 million.

The Group applied creditable withholding taxes against its income tax payable amounting to P1.3 billion, P2.6 billion and P1.6 billion in 2019, 2018 and
2017, respectively.

The Group acquired investment properties through foreclosure and rescission amounting to P1.0 billion, P0.8 billion, and P0.6 billion in 2019, 2018 and
2017, respectively.

132 LT G R O U P, I N C . 2019 ANNUAL REPORT 133

 MESSAGE FROM THE CHAIRMAN
O ur commitment and dedication to service are just a few
things we take to heart as a business and as a member
of the global community. We believe that the success of our
business is the success of all Filipinos, achieved through
our collective strength and solidarity working towards a
common goal to elevate the lives of our fellow countrymen
who are most in need.
Despite the challenges that the world faced in 2019, the
resilience of humanity remains. We continue to move
forward by building better and stronger. We hold on to hope
and continue to see the good in each other. We remain
committed to a brighter tomorrow as we surge forward to
a better future.
This is the first sustainability report of LT Group, Inc. You will
find in these pages our contribution to a global movement
to save the future. Guided by our theme, ‘Building a
Sustainable Foundation’, we have stepped up to the
challenges of the year that was and continue to look at
better ways to operate so we can create sustainable value
for all our stakeholders. We look forward to doing more and
doing better in the years to come.
As a new decade unfolds, we remain true to our vision
of excellence and leadership in business while providing
sustainable value for our stakeholders. We believe that
although the future might be filled with more challenges, it
will be brighter and better.
Dr. Lucio C. Tan
Chairman and Chief Executive Officer
134 LT G R O U P, I N C .
MESSAGE FROM THE PRESIDENT
T he landscape of business is changing. Success in
doing business is no longer solely limited to the health
of our balance sheets but our Company’s interactions
with employees, customers and suppliers, contribution to
the communities we operate in and role in environmental
preservation. Beyond creating financial value, we look
to creating sustainable value for this generation and the
generations to come. As effective stewards of today’s
resources, we are able to help pave the way for a better
tomorrow.
At LT Group, Inc. (LTG), we believe that true excellence is
achieved by success in financial as well as environmental
and social aspects. With this in mind, our commitment to
long-term value creation is also a commitment to long-term
sustainable development expressed through our alignment
to the United Nations’ Sustainable Development Goals
(SDGs).
LTG’s financial success this year was unprecedented.
Our total revenues for this reporting period amounted to
Php114.25 billion. Of this amount, we spent Php11.49
billion on employee wages and benefits, Php14.95 billion
on payments to government, and Php0.09 billion on
community investments.
Across the Group, we have robust policies and practices
that allow us to remain consistent with our business values,
goals and strategy.
We have governance systems in place that help us mitigate
risks and ensure compliance. We continue our drive against
corrupt practices within the Group with our regular anti-
corruption information sessions. Our Whistle-Blower Policy
also ensures that any suspected incidents of corruption
are reported and resolved without any threat of retaliation
to the reporting party. On the other hand, we observe
strict compliance with all applicable laws and regulations.
Any oversights to compliance are immediately addressed
with all necessary requirements. Our compliance teams
are working to achieve our target of surpassing standard
compliance.
At LTG, we take very seriously our role in helping save
the environment and the responsible usage of natural
resources. Across the Group, we have placed measures
to monitor our water and energy consumptions, and limit
our waste production. These are not only beneficial to the
environment but also help optimize our operations. We
advocate and support efforts on water conservation and
the reuse of wastewater, energy efficiency and the use of
renewable energy, and proper waste segregation including
the transition away from single-use plastics. We also
support eco-friendly and sustainable ventures with green
financing schemes. By taking care of the environment, we
are able to work better while able to help make sure that
future generations have clean air to breathe, clean water to
drink, and a healthy planet to live in.
The wellness and safety of our people is another one
of our top priorities. We regularly conduct trainings on
occupational health and safety to inform and update them
on the dos and don’ts of a safe working environment.
Throughout our operations, we ensure fairness, gender
equality, and diversity and inclusion.
Our businesses rely on the continued patronage of our
customers and so we work hard to uphold excellence and
quality through the products and services we offer. We
ensure that our customers are able to make well-informed
decisions by ensuring transparency of our products and
services through our websites, social media profiles and
other platforms. We also make sure that any information
that our customers decide to share with us are managed
securely in compliance with the Data Privacy Act of 2012
and other related regulations.
As the communities where we operate in are key to our
success, we work hard to give back and contribute to their
progress and development. Our main corporate social
responsibility arm, the Tan Yan Kee Foundation, Inc., takes
the lead in conducting projects in the education, health
services, social welfare and environmental aspects with
projects and activities that continue to touch the lives of our
fellow Filipinos in numerous ways.
In the year that passed, we have taken new and bolder
steps on our journey to sustainability. These are our ways
of showing our deep commitment to becoming more
sustainable as a business. In the coming years, we continue
to strengthen our efforts in helping build a sustainable
future. We look forward to the new decade with renewed
hope to surge forward to greater heights.
Michael G. Tan
President and Chief Operating Officer
2019 ANNUAL REPORT 135
 2019 Highlights No assurance has been sought for the non-financial disclosures
presented in this report, but this is of primary consideration in
Eton’s Property Management Group and Customer Support Team
manage on-site concerns and concerns from existing clients,
Materiality Matrix

the future as our reporting matures. All financial data and general respectively. PNB’s Customer Experience Division manages all Our materiality matrix shows the 17 key material issues that were
information about the business in this report, however, have been client concerns and complaints through a variety of channels 24 identified to have the most significant impact and stakeholder in
Economics and Governance disclosed in our 2019 Annual Report. hours a day, 7 days a week. TDI maintains a number of channels test.
including their website, email address, phone numbers, and social
Php114.25 45% | 55% 100% Economic Performance Boundary media profiles through which customers may relay any issues and
billion pesos Female Male employees, business
total revenues LTG Board of partners and concerns.
Directors governance body LTG’s economic performance data presented in this report is from
gender balance members know of our the consolidated financial statements as of and for the year ended The key topics and concerns raised during the Annual Shareholders’
anti-corruption policies December 31, 2019 covering LTG, as the parent company, and Meeting, Annual Press Briefing, and Quarterly Analysts’ Briefings Economic
Performance
Customer Health

all its subsidiaries and associates operating in the Philippines and are the financial results of the Group, future plans of operations,
and Safety Marketing and
Climate Change

Environment
Labelling
Socio-economic

abroad. For more information, please refer to the 2019 Annual and other significant changes on the operations of the Group. As
Water Management Compliance
Customer Engagement
Illicit Trade
Energy Efficiency and Satisfaction

52 tons 5,663 161,339 Report. for the meetings with the government, significant updates on the

Stakeholder Interest
Safety and Well-being Anti-Corruption Risk

hazardous waste megaliters thousand gigajoules regulatory compliance especially on taxes are discussed. Managing Waste
Community
Employment
Management

generated and total groundwater direct energy

Relations

Reporting Approach Customer Data Privacy and Security and Initiatives

disposed withdrawal consumption

Sustainability Report Feedback
Digital Transformation and Innovation

In the preparation of this report, we used the principle of Materiality

402,501 tons 1,150 224,820 to determine our key issues. Utilizing a framework developed for We aim to improve our reporting over the course of time to
non-hazardous megaliters thousand kilowatt hours
this purpose, we came up with a long list of potential material meet the highest standards of reporting and meet stakeholders’
waste generated total third-party electricity consumed
and disposed water withdrawal issues gathered from internal and external sources, and prioritized expectations. On our first sustainability report, we would like to
according to input from internal stakeholders via both quantitative know how well we have done on any aspect of this report or
Employees and qualitative metrics to identify which material issues have the if you have any suggestions for improvement—from content to
capacity to impact the Group and our operations, and its impact to design and presentation, among others, you may reach us at
12,390 53% | 47% 40% our various stakeholders. sustainability@ltg.com.ph.
total number of Female Male of all employees covered
employees workforce gender by Collective Bargaining
balance Agreement1 Sustainability Reporting Guidelines and Standards Our Approach to Materiality Impact

Society This report has been prepared in accordance with the Global Our journey to sustainability is informed by our materiality CATEGORY KEY MATERIAL ISSUE CATEGORY KEY MATERIAL ISSUE

Reporting Initiative (GRI) Standards: Core option, and the assessment process. We looked at a variety of sources and ECONOMICS AND GOVERNANCE Economics Performance ENVIRONMENT Water Management

787 of 930 ha. 198,040 2000+ sustainability reporting guide provided by the Philippine SEC in conducted workshops to assess and determine the most critical ECONOMICS AND GOVERNANCE Socio-economic Compliance SOCIETY Community Relations and Initiatives
hectares planted seedings ready for number of scholars
and reforested in planting by the across all scholarship Memorandum Circular No. 4, Series of 2019. We have also aligned material issues that have the highest capacity to impact the Group, ECONOMICS AND GOVERNANCE Risk Management EMPLOYEES Safety and Well-being

this report to the 17 United Nations (UN) Sustainable Development internally, and its stakeholders, externally.
EMPLOYEES Employment ENVIRONMENT Managing Waste
Barangay R.A. LCT Legacy programs since 1998 ECONOMICS AND GOVERNANCE Anti-Corruption ENVIRONMENT Energy Efficiency
Padilla in Carranglan, Forest Project Goals (SDGs) to further our commitment in contributing to the CUSTOMERS Marketing and Labeling ENVIRONMENT Climate Change
Nueva Ecija global sustainable development agenda. CUSTOMERS Customer Health and Safety CUSTOMERS Digital Transformation and Innovation
1
The denominator used to calculate this figure is the total number of employees, which CUSTOMERS Customer Engagement and Satisfaction CUSTOMERS Customer Data Privacy and Security
includes employees who are eligible and non-eligible by law to form a union. Stakeholder Engagement Mechanisms ECONOMICS AND GOVERNANCE Illicit Trade

Scan Prioritize Validate

Our Board of Directors is tasked with identifying our stakeholders Our Key Material Issues
About this Report in the communities where the Group operates in or those that are
directly affected by our operations. The Board then formulates a • Global standards, • Collected • Meeting and
clear policy of accurate, timely, and effective communication with Material Issues Relevant SDGs
Reporting Scope and Boundary issues and mega data analyzed discussion
identified stakeholders. Our stakeholders include our stockholders, trends that affect quantitatively with key 1 Economic Performance
employees, customers, trade partners, and the government. the industries we and qualitatively management Maintaining profitability to return a
This is our first sustainability report, which presents our sustainability are engaged in • List of identified executives dividend and re-invest in products
performance as of and for the year ended December 31, 2019, • Regulatory potential material on prioritized
We engage with our stakeholders in through a number of ways and services. This also covers stable
unless otherwise indicated. We at LTG believe that sustainability requirements issues voted material
including but not limited to: revenues in the event of political
is an essential feature of the way we do business because our • Material issues according issues to see and economic uncertainties,
resilience in the future partly depends on it. Together with our identified by our to order of alignment with
market competition, pressure from
1. Annual Shareholders’ Meeting peers importance to group strategy
annual report, this sustainability report aims to communicate to you regulatory bodies, and employing
2. Annual Press Briefing • Media coverage stakeholders and
our commitment to sustainability, what we are doing about it, and strategies to increase market share.
3. Quarterly Analysts’ Briefing around the impact on and of
where we are going.
4. Meetings with the Congress Group and the business 2 Socio-economic Compliance
5. Investors’ Conference (as needed) potential material Complying with socioeconomic
This sustainability report covers LTG, as the holding company, and issues identified
6. Private Meetings (as needed) laws and regulations, and regulatory
our subsidiaries operating within the Philippines particularly ABI, • Review of
7. Conference Calls (as needed) changes in both financial and non-
Eton, and TDI. PNB, which was part of the materiality assessment internal policies
8. Plant Visits (as requested) financial reporting
process we have conducted for this report, has prepared its own and board
sustainability report that complements this report. PMFTC has not papers identifying 3 Risk Management
The Group also maintains open communications with the potential material Managing risks that may greatly
been included in the materiality assessment process and, as such,
investing community to promote greater understanding of our issues impact the Group’s operations and
will not be covered in detail because it is under the management
businesses. Reports to the SEC and PSE are disclosed on time, performance. This includes systems
of Philip Morris International Inc. (PMI) and will be included in PMI’s
and are available for viewing and downloading in the Group’s and policies in place to address
sustainability report.
website. There is also a dedicated Investor Relations Officer and potential credit, market, interest
the Group may also be corresponded with through email and/or rate, liquidity, security, reputation
Due to the diverse nature of our businesses—beverages, property From a long list of 44 material issues, we were able to prioritize to 17
telephone calls. and other risks relevant to the
development, tobacco, banking, and distilled spirits—some top material issues and these were validated by key management operations of its subsidiaries.
differences may be observed in terms of material issues and officers.
Across our subsidiaries, ABI maintains a Customer Complaint
context. However, common issues have been consolidated for the
Report and conducts a regular Customer Satisfaction Survey.
Group enabling the reader to get a good grasp of our big picture.

136 LT G R O U P, I N C . 2019 ANNUAL REPORT 137

 Material Issues
4 Employment
Attracting and retaining highly
capable individuals to support
high performance, and includes
employee wages and other forms
of compensation such as bonuses
and executive remuneration, as well
as fostering gender equality in the
workplace.
5 Anti-Corruption
Demonstrating integrity,
transparency, governance, and
responsible business practices,
as expected by the marketplace,
international norms, and
stakeholders
6 Marketing and Labeling
Providing customers access to
accurate and adequate information
on the positive and negative
economic, environmental and
social impacts of the products
and services they use–both from
a product and service labeling
and a marketing communications
perspective. This also includes
communication of customer
protection policies and laws.
7 Customer Health and Safety
Protecting and promoting health
and safety of our customers through
assurance of product quality,
effective safety risk management
and promotion of a safety culture.
This also refers to ensuring that
products are free from toxic or
hazardous contents that may
endanger customer safety.
8 Customer Engagement and
Satisfaction
Meeting customer expectations and
needs in delivery of our products,
services and experiences. This also
ensures that customer complaints
are recorded, monitored, resolved
and reported to regulatory bodies,
as applicable.
9 Illicit Trade
Implementing policies and
measures to ensure the security
of aspects in the supply chain
which could be most susceptible
to illegal trading and counterfeiting.
This entails full cooperation with
law enforcement agencies, and
engagement with policymakers
for a more effective and balanced
regulation.
10 Water Management
Optimizing the use of water
resources, including management
of water treatment of drinking
water, industrial water, sewage or
wastewater, water resources and
flood protection
138 LT G R O U P, I N C .
Relevant SDGs Material Issues
11 Community Relations and Initiatives
Maintaining our social license to
operate through engagements with
the community
12 Safety and Well-being
Protecting and promoting health,
safety and well-being of our
employees and contractors through
effective safety risk management
and promoting a safety culture
13 Managing Waste
Managing and minimizing waste,
including responsible waste
management by resource reduction,
reuse, recycling and reprocessing,
waste treatment and waste disposal
14 Energy Efficiency
Managing and minimizing energy
use, increasing efficiency measures
and using low-carbon emission
energy sources
15 Climate Change
Ensuring that the Group is prepared
to anticipate, address, and recover
from impacts of climate change that
might pose risks to the workforce,
cause disruption to operations and/
or loss of property
16 Digital Transformation and Innovation
Implementing digitalization of
products and services to streamline
customer experience. This also
refers to other innovations that
capitalize on current trends on
blockchain, artificial intelligence,
etc. This also includes cybersecurity
and cyber resilience measures
within the Group.
17 Customer Data Privacy and Security
Managing the privacy of customer
information and ensuring personal
information is secure against fraud
and theft
Unique Material Issues across Subsidiaries
During the materiality assessment process, we determined unique
key material issues across some subsidiaries. Although we did not
include specific disclosures for these material issues in this report
as we will be reporting on them in future editions, we have included
them here for information.
Material Issues
ABI and PNB
Learning and Development
Developing our workforce capabilities, skills
and competencies to create a positive and
sustainable organizational culture
ABI and TDI
Environmental Compliance
Complying with environmental laws and
regulations
Relevant SDGs Material Issues Relevant SDGs | Economic Value Distributed, 2019
(in billion pesos)
ABI % to total
 Operating Costs 41.01 45%
Greenhouse Gas Emissions
 Payments to Providers of 22.47 25%
Managing and minimizing emissions to free
Capital
the air of pollutants – including carbon and
 Payments to Government 14.95 17%
other greenhouse gases (GHGs)
 Employee Wages and 11.49 13%
Benefits
 Community Investments 0.09 0%
Total 90.01 100%
Labor/Management Relations
Using consultative practices with | LTG Attributable Net Income, 2019
(in billion pesos)
employees and their representatives,
% to total
including communicating significant
 Tobacco 15.50 67%
operational changes
 Banking 5.56 24%
PNB  Property Development 0.90 4%
 Distilled Spirits 0.67 3%
Indirect Economic Impact
 Beverages 0.40 2%
Supporting infrastructure investments
 Others 0.09 0%
and public services that are additional
Total 23.12 100%
consequences of the direct impact of
financial transactions and the flow of
money between PNB and its stakeholders Socio-economic Compliance
TDI
Businesses play an important role in nation-building.
Materials Stewardship
It provides jobs for people, helps create economic
Using materials efficiently and judiciously,
value and drive growth, nurtures innovation, and
whether renewable or non-renewable,
can significantly contribute to long-term progress.
necessary for the provision of products and
However, due to the numerous areas that
services
businesses can affect, it also has the potential to
Supply Chain Management have negative impacts to societies and economies. We recognize
Supporting local suppliers, or those owned the importance of how our businesses operate and its compliance
by women or members of vulnerable
to social and economic laws, rules and regulations.
groups, and assessing procurement
practices that may cause or contribute to
Across the Group, our Corporate Governance Committee, together
negative impacts in the supply chain
with our Compliance Officer and Corporate Secretary, ensures
that we are able to consistently comply, and aim to go beyond
compliance, with all conditions set by Philippine regulatory bodies
Our Strategy and and legislation, as well as international standards. Our Manual on
Performance
Corporate Governance, which contains our Code of Business
Conduct and Ethics, mandates that all personnel in the business,
regardless of rank or seniority, abide by all government laws, rules
In the following sections, you will find out more about our
and regulations. This is cascaded on to our employees as part of
sustainability journey in 2019. The disclosures have been divided
onboarding procedures and is available on our corporate website
into five categories — Economics and Governance, Environment,
for easy reference to anyone who wishes to access the document.
Employees, Customers and Society – with the corresponding
key material issues contained therein.
In terms of reporting to regulatory bodies, we ensure strict and
timely compliance with the requirements set by the SEC, the PSE
Economics and Governance and the Bureau of Internal Revenue (BIR), among others. This allows
us to avoid penalties due to late submissions and also paves the
Economic Performance
way for us to improve our reporting methods and immediately take
corrective measures to address regulatory issues and concerns.
This year was a banner year for
LTG. Our economic performance hit
For 2019, there was one incident of non-compliance with laws and
record-breaking heights due to our
regulations in the social and economic area with a final decision
strong commitment to excellence in
Relevant SDGs and a monetary fine amounting to Php61,600.00. This incident of
doing business. Our total revenues
non-compliance was due to an oversight in the updating of the LTG
for this reporting period is Php114.25 billion. Our total operating
website as per SEC regulation. This was promptly addressed with
costs amounted to Php41.01 billion, while employee wages and
the necessary fines paid, thus we are now compliant to regulation.
benefits accounted for Php11.49 billion. Payments to government
We are committed to ensure that no incidents of non-compliance
accounted for Php14.95 billion, and payments to providers
are recorded for the next reporting period and that any incident that
of capital amounted to Php22.47 billion. Our total community
may arise is resolved immediately.
investments is at Php0.09 billion from various donations of our
subsidiaries. As of the end of the current reporting period, the
economic value retained is at Php24.24 billion.
2019 ANNUAL REPORT 139

Risk Management
Businesses are faced with risks—from shifts in
the economy, operations and strategy to changes
in legislation and taxation. With this in mind, it is
imperative that businesses manage risks and use
it to its advantage to create value and nurture
sustainability.
Our Enterprise Risk Management (ERM) system is in place to
help us mitigate risks for value creation and sustainable growth.
Our Chief Risk Officer ensures continued compliance with SEC
regulations on the implementation of risk management activities
aligned with its risk management framework. Our ERM system
is partly based on the Enterprise Risk Management - Integrated
Framework of the Committee of Sponsoring Organizations of the
Treadway Commission (COSO).
At PNB, the Risk Management Group (RMG) ensures that needed
processes and procedures are implemented to successfully
operationalize the Bank’s own ERM Framework, aligned to
the risk governance framework and the three lines-of-defense
model. PNB’s Risk Oversight Committee, which meets monthly,
looks into the Bank’s constantly changing risk profile based on
the material risks defined in the its Internal Capital Adequacy
Assessment Process (ICAAP) document. To ensure consistent risk
management and monitoring, the RMG directly engages with all
levels of the organization across its business and support groups,
which includes ongoing training activities and learning sessions to
properly equip personnel. For new employees, the RMG conducts
trainings twice a month on business continuity, data privacy
awareness, operational risk, and ICAAP during the New Employees
Orientation Program. For existing employees, the RMG conducts
the Risk Education and Awareness Program annually to employees
in both domestic and overseas branches covering business
continuity, data privacy awareness, trust risk, credit risk, market
risk, operational risk and ICAAP. RMG maintains a database of
employees who have attended and have yet to attend risk trainings.
Anti-Corruption
Our strong commitment for fair and equitable
business practices ensures that we do not engage
in corrupt activities. We comprehend the negative
effects of corruption on people’s lives and do our
best to counter it.
Across the Group, our Code of Business Conduct and Ethics
ensures that we do not engage in nor condone any act of bribery
or corruption with government officials in order to facilitate
transactions. The Code also ensures that all our Directors,
Officers, and Employees comply with all government rules, laws,
and regulations, and to conduct themselves in a way that avoids
conflicts of interest. Approved by our Board, the Code is aligned
to the standards set by SEC in accordance with internationally
accepted standards. The Board also conducts regular reviews of
the Code to ensure its continued relevance and to update when
needed. We conduct regular refresher sessions on the Code to
existing employees, and as part of onboarding procedures for new
employees. The Code is also available on our corporate website
for easy reference to anyone who wishes to access the document.
For any suspected cases of corruption, employees may report to
their immediate supervisor who shall determine the existence of
reasonable ground to escalate the matter. Directors and Officers
shall then report any known or suspected cases of corruption to the
Chairman of the Corporate Governance Committee. Alternatively,
employees and officers may also use the Whistle-Blower Policy,
which allows one to report any instances of suspected or known
unethical behavior or corruption anonymously.
140 LT G R O U P, I N C .
100%
To further enhance our action against
corruption, our subsidiaries also have
their own policies that complement
of all our the Group’s Code. ABI, Eton, PNB
employees, and TDI have their own Code of
business partners Conduct and Ethics. ABI, apart from
and governance the Code of Conduct, maintains a
body members Labor Management Council and
Committee on Right Ethics (CORE)
know of our
which helps manage cases of
anti-corruption
misconduct and corruption. Eton’s
policies Code of Ethics contains a no-gift
policy. PNB maintains a policy on
Soliciting and Receiving Gifts and a
policy on Office Decorum, which includes anti-bribery and anti-
corruption clauses. TDI has Conflict of Interest Policy, aside from
the Corporate Code of Conduct.
Due to our commitment and drive against corruption, there has
been no instance of corruption nor have there been any cases
reported through our Whistle-Blower Policy in 2019. We continue
our commitment to maintain zero cases of corruption for 2020 and
moving forward.
Environment
We recognize the importance of the natural environment in building
a sustainable foundation for our business. From the environment
comes the resources that we use to deliver our products and
services, and we are committed to protect it not just for the current
generation but for the generations of the future. Our commitment
to help save our environment is long-standing as evidenced by our
initiatives that began prior to 2019.
At ABI, we began producing water in glass bottles to provide an
alternative to single-use plastics. In 2019, ABI sold 544,776 glass
bottles of water in 330ml and 1000ml variants. In addition, through
ABI’s partnership with the World Wide Fund for Nature (WWF),
we have committed to give Php1.00 million of our sales proceeds
annually to be used for WWF’s transformational programs for water
conservation.
At Eton, we have shifted to clean and renewable energy sources
for our office buildings. Our office buildings in Eton Centris are
powered by geothermal energy through Cleanergy of AboitizPower,
a starting point for more clean energy initiatives in the future for our
properties.
At PNB, we have an ongoing multibillion-peso financing program
to support eco-friendly and sustainable businesses and projects
that promote nation-building and countryside development,
environmental protection and conservation, and sustainable
development. In 2019, over 40% of the total loans of the Bank were
used to finance green and sustainable businesses and projects in
the food and manufacturing industry, the energy transmission,
generation, and generation industry, and the infrastructure
development industry.
At TDI, to support the shift for using renewable sources of energy,
our solar power and bioethanol facilities in Lian, Batangas have
helped bridge the gap in making clean energy accessible to
interested parties. On the other hand, our carbon dioxide by-
product from TDI’s production, which would otherwise be released
to the atmosphere, is converted to dry ice. Waste water or sludge
is also converted to fertilizer as part of our effort for zero effluent
discharge.
In a world with rapidly changing climate conditions, our businesses
are faced with new threats and opportunities that shape the
way we operate. We constantly do our best to meet and go
beyond regulatory compliance to effectively manage our overall
environmental footprint. We look to new ideas and innovate on
what we can do to contribute to efficient resource use and address
the impacts of climate change.
Water Management
As the world feels the effects of
climate change, water scarcity has
become the new normal. Our Group
takes very seriously the impact of
water scarcity to our operations
as well as how we impact water resources. Across the Group,
we strictly observe and comply with regulation related to water
consumption and management.
At ABI, we observe strict monitoring of our water consumption and
how we manage our waste water through our Water Treatment
Process and our Waste Water Treatment Process, respectively.
We observe strict compliance with regulation and have secured all
necessary permits and installed all required equipment to allow us
to draw water from our deep wells sustainably.
| Total Water Withdrawal from all Sources, 2019
(in megaliters)
% to total
 Groundwater 5,663 83%
 Third-party water 1,150 17%
Total 6,813 100%
At Eton, we have strengthened our campaign to encourage our
property tenants and residents to conserve water at all times. We
sent out circular memoranda to remind them to check if there are
leaks in their faucets and showerheads, and to make sure that
their faucets and other water sources are turned off when they
leave the premises to prevent any water wastage.
At PNB, the water that we use is purchased from a third-party
water services provider. At our head office in Pasay, waste water
is treated at our Sewage Treatment Plant (STP) before being
released to the Manila Bay in strict compliance with conditions set
by regulators. At our offices in Makati, waste water is discharged
to the sewer lines of our third-party water services provider and
subsequently treated at their STP. We continue to look for better
ways to improve our water consumption. For example, we have
adjusted the flushing mechanisms of our water closets to reduce
the volume of water being used per flush in toilets and urinals as
well as the replacement of defective faucets and leaking water
valves.
At TDI, our Water Resource Management Toolkit is strictly
implemented to ensure our operational compliance to regulation.
Using the tool, we conduct monthly monitoring of our water
consumption through sub-meters on all points-of-use. The
extraction of water from our deep wells is under strict compliance
with the conditions set by the National Water Resources Board
(NWRB) which regulates and monitors the volume of water we
extract. We ensure that our liquid chemical waste is hauled by
accredited third-party contractors and is treated properly by
requiring a Certificate of Treatment. We also partner with local
non-government organizations (NGOs), like the Cabuyao River
Protection Advocates, in activities that improve and protect the
water quality of receiving water bodies. Ongoing initiatives include
the Adopt-a-River program where we adopted Cabuyao River in
Cabuyao, Laguna and the Adopt-an-Estero program where we
adopted Cabungan-an Creek in Murcia, Negros Occidental.
We regularly conduct river and creek clean-up activities, the
installation of trash catchment mechanisms, and an education
campaign for the community regarding environmental stewardship.
For this reporting period, our total water withdrawal is 6,813
megaliters (ML), where 5,663 ML is from groundwater sources
and 1,150 ML is from third-party water suppliers.
Managing Waste
Waste management
is an important part
of our operations
and how we manage
our environmental
footprint. We are continuously looking for better ways to dispose
of our waste. We are also looking at better ways to work so we
can lessen the amount of waste we produce thereby cutting
cost on waste disposal services and lessening our impact to the
environment.
Across the Group, we have encouraged internal communication
to be only be transmitted electronically to limit the use of paper.
We have also promoted two-sided printing and repurposing
scratch paper for second use. LTG, ABI and Eton strictly observe
proper waste segregation. Waste from LTG and Eton is handled
by the respective building management where LTG and Eton are
tenants. Waste from ABI is handled by a third-party contractor
that has been accredited by Department of Environment and
Natural Resources (DENR) to handle hazardous and non-
hazardous wastes.
At PNB, our solid waste is managed by third-party contractors.
We have ensured that these contractors are compliant with
government regulation as part of our due diligence procedures.
These contractors work with our designated Pollution Control
Officers who take the lead in monitoring our waste disposal
system and provide needed insight on how we can continue to
improve our performance.
At TDI, our Solid Waste Management Plan is strictly implemented
in all our plants to manage and control solid waste in compliance
with the conditions set by our Environmental Compliance
Certificate (ECC). We have third-party contractors who haul
and dispose of our solid waste. As part of due diligence, we
ensure that our contractors have the necessary government
accreditation. The Pollution Control Officers of each plant evaluate
the performance of their respective plants and report this to the
regulators. The results of the evaluation are discussed during the
regular Environment, Health and Safety (EHS) meetings for steps
forward.
| Hazardous and Non-Hazardous Waste Generated
and Disposed, 2019
(in tons)
% to total
 Non-Hazardous Waste 402,501 100%
 Hazardous Waste 52 0%
Total 402,553 100%
For 2019, we generated and disposed of 52 tons and 402,501
tons of hazardous and non-hazardous waste, respectively. We
also disposed of 633 pieces of lead acid batteries through our
accredited third-party service providers. Due to the strict and
efficient implementation of our solid waste management plan, as
well as a Group-wide campaign to reduce waste, no violations or
non-compliance incidents have been reported.
2019 ANNUAL REPORT 141
 | Non-Hazardous Waste by Disposal Method, 2019 Climate Change | Employee Breakdown by Gender, 2019
(in tons)
At Eton’s head office, our employees are encouraged to turn Climate change is not just a buzzword to the
% to total
% to total off office equipment when not in use, which includes the Group. It is a real challenge that we consider in our
operations today and on to the future.  Female 6,601 53%
 Landfill 388,430 96% implementation of our lights-off policy during noon break. For our
 Male 5,789 47%
 Other (hauled by 10,350 3% buildings, residents and tenants are reminded through memos
Total 12,390 100%
third-party contractor) to conserve energy by making sure that lights are turned off and At ABI, our Manufacturing Continuity Program is a
 Recycling 3,720 1% appliances such as air-conditioning units are unplugged when not practical guide on how to prevent, prepare, respond and recover
 On-site Storage 1 0% in use. before, during and after a disaster, incident or crisis. Our primary
Total 402,501 100% considerations include the reduction of employee exposure to Our employment policies have been created in accordance with
At PNB, we have an energy conservation program that allows health and safety risks, reducing operations downtime, and labor laws, industry practices, and the existing collective bargaining
| Hazardous Waste by Disposal Method, 2019 us not only to save on our energy costs but also to address our managing financial loss. Updated annually, this guide covers agreements (CBAs) with the employees’ unions. Across the Group,
(in tons) emissions in compliance with regulation. Our main source of various scenarios that are due to or made worse by the effects of 40% of all our employees are covered by an existing CBA — 22%
direct emissions are our standby generator sets, which are only climate change including severe weather conditions, typhoons, of employees at ABI, 49% of employees at PNB, and 22% of
% to total used during power interruptions. Our Pollution Control Officers flooding, epidemics, among others. We regularly communicate employees at TDI — and we ensure that we uphold and safeguard
 Other (hauled by 24 47% monitor these emissions and ensure effective compliance. We with regulators and other stakeholders on the impact of our the rights of our all employees, whether they are covered by a
third-party contractor) also have allocated resources for regular third-party smoke operations to local communities and the climate. CBA or otherwise. We have policies on hiring, transfer, promotion,
 On-Site Storage 20 38% emissions testing to ensure accurate data and assessments. In employee benefits, resignation and separation, and learning and
 Recovery 5 9% terms of energy efficiency, we have engaged the services of a At Eton, we have taken steps in combating climate change by development, among others, which are regularly reviewed and
 Recycling 3 6%
third-party provider who provide us with regular reports on the finding ways to use clean and renewable energy. Together with evaluated by senior management.
Total 52 100% our partners, Eton’s office buildings at Eton Centris in Quezon City
status of our energy efficiency situation. From these reports,
adjustments are regularly implemented based on performance currently use clean and renewable energy through the MakBan We have a Code of Business Conduct and Ethics which is a guide on
Energy Efficiency and operating conditions. Geothermal Power Plant via Cleanergy of AboitizPower. professional and ethical conduct for all executives and employees
of our businesses. The Code is aligned to the standards set by
Across the Group, we At TDI, we monitor our energy consumption and emissions in At PNB, our long-standing campaign for climate stewardship is the SEC in accordance with internationally accepted standards.
continue to strengthen relation to production outputs by using the energy use ratio expressed through the Bank’s sustainability report highlighting Embedded in the Code is our Whistle-Blower Policy, which helps
our energy efficiency (EUR)5. EURs for our three (3) plants differ depending on the the PNB’s drive to address the effects of climate change to the us ensure that all incidents of misconduct and unethical behavior
efforts that promote factors affecting their operations. The energy consumption of our business. The Bank is also currently drafting its sustainability are reported anonymously without fear of retaliation.
energy conservation Cabuyao plant is limited to usage from production as it does not financing policy and framework, which will enable us to effectively
and reduce our overall have bottle washing since it uses brand new bottles. The energy assess and manage the Bank’s environmental and social risks and For any cases of misconduct, disputes or controversies arising from
carbon footprint. For consumption of our Negros and El Salvador plants, on the other impacts when doing business. the interpretation, meaning, application and implementation of our
example, we use LED hand, consider usage in all aspects as they use second-hand CBAs between the union and the concerned business or between
lights across most of bottles requiring bottle washing in their operations. Each plant, At TDI, we observe strict compliance to DENR’s policies on ozone- the concerned business and any covered employee, our Grievance
our offices and sites to led by their respective Pollution Control Officers, submits their depleting gases and GHG emissions. Our Incident Management Machinery Policy is in place to address and resolve these cases for
replace conventional bulb and tube lights. energy consumption reports to our Group Safety, Environment Crisis Resolution Procedure is climate-informed and includes timely investigation and resolution.
and Risk Management (GSERM) Department as part of their various scenarios caused by or made worse by climate change.
At the LTG office, we have set the air-conditioning units at 25 environmental key performance indicator (KPI) monitoring. Any We use DENR-approved fuels in our operations such as low-sulfur Full-time employees across our subsidiaries are entitled to all
degrees Celsius to ensure maximum energy efficiency. Employees positive or negative deviation from the set EUR target is analyzed fuel oil for our boilers. We also participate in various reforestation government-mandated benefits as well as but not limited to life
are also asked to only turn on equipment when needed and to and steps are made for mitigation and conservation measures. programs throughout the year. As part of our ongoing plans to insurance coverage, healthcare coverage, vacation and sick leaves,
unplug unused equipment. We also promote carpooling and the strengthen our campaign against climate change, we will be parental leaves, retirement provision, loan facilities, among others.
use of our company car service to help them in their commute. As of the current reporting period, our total energy consumption mapping out and measuring our GHG emissions in the near future
across the Group is 162,148 thousand gigajoules (GJ). Our to implement evidence-based policies to reduce emissions. We take particular pride in our gender equality and diversity and
At ABI, we have allocated resources and implemented our Energy direct energy consumption (Scope 1) is at 161,339 thousand GJ, inclusion (D&I) practices where a significant number of women are
Management System Policy for our beverage manufacturing plants while our indirect energy consumption (Scope 2) from purchased Employees in our governance bodies and senior management. The Board of
where we saw a 15% improvement in energy consumption2. At electricity is 809 thousand GJ. Directors of LTG is comprised of five (5) women and six (6) men. Our
ABI Cabuyao, we were able to reduce our coal consumption by Our businesses rely on the people who work to make our every combined workforce also shows a majority of women employees.
33% and increase efficiency after we conducted maintenance and | Direct Energy Consumption (Scope 1), 2019 success possible. Within our workforce can be found exceptional Our robust practices also ensure that there is no difference between
rehabilitation work on our steam boiler3. In June 2019, at our ABI (in thousand gigajoules) human capital who are our partners in creating sustainable value. the basic salaries of men and women.
Bottled Water Plant (BWP) in Sta. Rosa, Laguna, we optimized our % to total We do our best to recruit, retain and nurture our human capital in
PET (polyethylene terephthalate) Blowing Machine Preform Oven  Liquefied petroleum gas 150,908 93% a safe and healthy work environment that not only fosters creativity | Composition of LTG Board of Directors, 2019
by converting it into an Eco-Oven Module Assembly that uses  Coal 7,892 5% and innovation but also gives a strong focus on work-life balance.
less power to operate and has resulted in 25% energy efficiency  Gasoline 2,500 2% % to total
for two lines of the BWP4. Other activities that sought to improve,  Bunker Oil 28 0% Employment  Male 6 55%
repair or maintain refrigeration systems, among other equipment,  Diesel 11 0%  Female 5 45%
have all led to reduced energy consumption and increased energy Total 161,339 100% Across the Group, we have a strong Total 11 100%
efficiency. commitment to ensure fair employment
| Indirect Energy Consumption (Scope 2), 2019 practices, gender equality, diversity
| Total Energy Consumption, 2019 (in thousand kilowatt hours) and inclusion. We ensure strict
(in thousand gigajoules) compliance to all requirements of the
% to total Labor Code of the Philippines and the General Labor Standards
% to total
 Luzon and Visayas 219,783 98% of the Department of Labor and Employment (DOLE) who conduct
 Direct Energy 161,339 100% regular inspections and evaluations on our compliance.
 Mindanao 5,037 2%
Consumption
Total 224,820 100%
 Indirect energy 809 0%
As of 2019, no instances of non-compliance have been recorded
consumption
and we are at full compliance.
Total 162,148 100%

2
Using 2018 as base year 5
Energy Use Ratio (EUR) - Average total amount of electricity and fuel consumed on-site
3
ibid. from all sources converted to mega joules (MJ) for every liter of product produced.
4
ibid.

142 LT G R O U P, I N C . 2019 ANNUAL REPORT 143

 In November 2018, leveraging on its diverse and inclusive | New Hires by Gender, 2019 PZ N\PKLK I` +63,»Z N\PKLSPULZ VU [OL 5V[PÄJH[PVU HUK 2LLWPUN Work-Related Injuries, 2019
workforce, the Philippine National Bank (PNB) approved of Records Accidents and/or Occupational Illnesses (Rule 1050,
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innovation, create sustainable value and impact, and cases
Male 1,007 62% Our employees across the Group are covered by a healthcare plan
improve employee acquisition and retention. The Bank is Female 618 38% which include coverage for occupational health services. For employees
also looking at its existing policies and is working to craft Total 1,625 100% Fatalities as a result of work-related 0 0
gender-responsive provisions that ensure gender equality We conduct regular training programs on occupational safety injuries
and non-discrimination. HUKOLHS[OPU[LYUHSS`[OYV\NOV\Y:HML[`6ѝJLYZOLHS[OWYV]PKLYZ /PNOJVUZLX\LUJL^VYRYLSH[LK 0 0
government agency partners, and third-party providers. Apart injuries (excluding fatalities)
,Q 0D\  31% EHFDPH WKH ƂUVW GRPHVWLF XQLYHUVDO | New Hires by Region, 2019 MYVT [OL +63,WYLZJYPILK THUKH[VY` [YHPUPUN OV\YZ MVY 6:/
bank to join the Philippine Business Coalition for Women Recordable work-related injuries 49 5.82
we conduct other trainings to further commitment to maintaining
Empowerment (PBCWE). As part of the membership, the Number of hours worked (hours) 8,413,664
% to total safety and health across all our operations. For example, at Eton’s
Bank underwent the Economic Dividends for Gender
Luzon 1,360 84% construction sites, we also conduct loss control management For contract workers
(TXDOLW\('*(&HUWLƂFDWLRQDVVHVVPHQWLQWKHUGTXDUWHU
Mindanao 152 9% ZLTPUHYZÄYZ[HPK[YHPUPUNZ^VYRPUNH[OLPNO[ZHUKZJHќVSKZHML[`
RI  LQ SUHSDUDWLRQ IRU ('*( &HUWLƂFDWLRQ VHW WR EH Fatalities as a result of work-related 0 0
completed in 2020. Visayas 113 7% trainings, and heavy equipment operation trainings, among others.
injury
Total 1,625 100% ;OPZPZVU[VWVMV\YHUU\HS[YHPUPUNZMVY6:/)HZPJ6JJ\WH[PVUHS
:HML[`HUK/LHS[O)6:/HUK*VUZ[Y\J[PVU6JJ\WH[PVUHS:HML[` /PNOJVUZLX\LUJL^VYRYLSH[LK 0 0
As of this reporting period, our workforce is at 12,390 regular injuries (excluding fatalities)
employees where 6,601 people or 53% are females. We also have | New Hires by Age Group, 2019 HUK /LHS[O *6:/ H YLX\PYLTLU[ MVY [OL JVUZ[Y\J[PVU PUK\Z[Y`
([ ;+0 V\Y :HML[` 6ѝJLYZ HYL YLX\PYLK [V JVUK\J[ [YHPUPUNZ Recordable work-related injuries 15 5.49
360 contractual workers. Our employee turnover rate is at 9.27%.
We hired 1,625 new employees of which 618 were females. % to total on hazardous materials management, hot works operation, Number of hours worked (hours) 2,730,632
Under 30 1,142 70% ZWPSS JVU[YVS JVUÄULK ZWHJL ZHML[` HUK ^VYRPUN H[ OLPNO[Z HUK
| Employee Breakdown by Age Group, 2019 30 to 50 456 28% laboratory safety, among others. Group-wide, our businesses also Customers
Over 50 27 2% respectively publish health bulletins regularly to promote sustained
Total 1,625 100% awareness among our employees. Our journey to creating value would not be complete without our
% to total
Under 30 3,928 32%
customers. By listening to them, we are able to understand our
| Employees Who took Parental Leave by Gender, 2019 ([()0^LPTWSLTLU[[OL/HaHYK0KLU[PÄJH[PVU9PZR(ZZLZZTLU[ businesses better and we are able to move forward and grow
30 to 50 6,550 53%
Over 50 1,912 15%
HUK+L[LYTPUPUN*VU[YVS/09(+*WYVJLK\YL^OLYLHZ,[VU»ZZP[LZ in unprecedented ways. We learn about the changing market,
Total 12,390 100% % to total HUK;+0PTWSLTLU[[OL/HaHYK0KLU[PÄJH[PVU9PZR(ZZLZZTLU[HUK developing preferences, and new or recurring trends by listening
Female 185 82% *VU[YVS /09(* WYVJLK\YL ;OLZL HSSV^ \Z [V PKLU[PM` OHaHYKZ [V V\Y J\Z[VTLYZ ;OPZ ^H` ^L HYL HISL [V PTWYV]L [OL ^H` ^L
| Employee Breakdown by Category, 2019 Male 41 18% and assess risks according to their likelihood and severity. After do business and create products and services that our customers
(for LTG, ABI, Eton and TDI only) Total 226 100% evaluation, we are able to determine and apply controls to manage need, many of which have become homegrown brands we can be
these hazards and risks in the workplace. truly proud of.
% to total
As of 2019, we have zero instances among full-time employees Over the years, our businesses have remained true to its promise of
Rank and file 2,736 71%
Return to Work Rate by Gender, 2019 of high-consequence work-related injuries7 during the reporting excellence. We strengthen our commitment and look to innovative
Supervisors 750 20%
period. ways to provide quality products and services and create new and
Managers 244 6% Male Female
Officers 110 3% Employees due to return after parental leave 39 173 better value for our customers.
Total 3,840 100% Employees that returned to work after 39 173 OHS Management System Coverage, 2019
parental leave Marketing and Labeling
Return to Work Rate (%) 100% 100% No. of
| Employee Breakdown by Category, Percentage
employees ;OL^H`HI\ZPULZZJVTT\UPJH[LZ[VP[ZJ\Z[VTLYZ
2019 (for PNB only)6
Retention Rate by Gender, 2019 Covered by occupational health and safety management is an important aspect of doing business. Our
system Group ensures transparent and easily-accessible
% to total Male Female
Regular employees 11,906 100% information about our products and services to
Rank and file 4,232 50% Employees retained 12 months after
16 166 help our customers arrive at a well-informed choice.
Managers 3,850 45% returning to work following parental leave Contract workers 360 99%
Officers 468 5% Number of employees returning from 16 166 Across the Group, we follow local and international standards and
Covered by occupational health and safety management regulation on responsible marketing and labeling practices. We
Total 8,550 100% parental leave in prior periods
system that has been internally audited continue to look at better ways to improve our websites and other
Retention Rate (%) 100% 100%
Regular employees 11,491 97% information channels for ease-of-access to our clients.
Total Number of Employees by Employment Contract,
by Region, 2019 Contract workers 360 99%
Safety and Well-being At ABI, our Manufacturing Change Control (MCC) document
Region Permanent Temporary Covered by occupational health and safety management
is a practical guide we follow when we introduce, manage,
Luzon 9,580 0 Z`Z[LT[OH[OHZILLUH\KP[LKVYJLY[PÄLKI`HUL_[LYUHS
We recognize the great importance execute and implement changes in terms of raw materials used,
Visayas 1,347 0 party
of our people’s safety and well-being. packaging, operational activities, promotional activities, and
Mindanao 1,463 0 A safe working environment is an Regular employees 8,610 72% WYVK\J[ JHTWHPNUZ ;OL 4** [VNL[OLY ^P[O V\Y 5L^ 7YVK\J[
important feature of our operations Contract workers 0 0 +L]LSVWTLU[ KVJ\TLU[ HUK V\Y :[VJR (NPUN 4HUHNLTLU[
Total Number of Employees by Employment Contract, and we make sure we are able to KVJ\TLU[LUHISLZ\Z[VJV]LYKPќLYLU[HZWLJ[ZVMOV^^LTHYRL[
by Gender, 2019 provide this to our employees at all times. HUKSHILSV\YWYVK\J[Z[VJVUZ\TLYZH[KPќLYLU[Z[HNLZ>LLUZ\YL
Male Female strict compliance with guidelines on information and labeling set
Permanent Temporary Permanent Temporary (JYVZZ [OL .YV\W ^L OH]L HU 6JJ\WH[PVUHS :HML[` HUK /LHS[O by the Philippine Food and Drug Administration (FDA), as well as
5,789 0 6,601 0 6:/ 7VSPJ` [V ZHMLN\HYK V\Y LTWSV`LLZ» YPNO[ HUK HJJLZZ [V HSSYLX\PYLTLU[ZZL[I`[OL7OPSPWWPUL(K:[HUKHYKZ*V\UJPS(:*
O\THUL ^VYRPUN JVUKP[PVUZ  6\Y YLZWLJ[P]L 6:/ JVTTP[[LLZ HUK[OL+LWHY[TLU[VM;YHKLHUK0UK\Z[Y`+;0^OPJOTH`PUJS\KL
Total Number of Employees by Employment Type, HUK HJJYLKP[LK :HML[` 6ѝJLYZ OLSW LUZ\YL Z[YPJ[ PTWSLTLU[H[PVU information on sourcing, content, safe use, and proper disposal.
by Gender, 2019 of this policy in accordance with our policies on good corporate
Male Female governance and in compliance with the conditions set by DOLE.
Full-time Part-time Full-time Part-time We also conduct regular reviews and evaluation of this policy to
5,789 0 6,601 0 HZZLZZP[ZLќLJ[P]LULZZHUK[VLќLJ[HU`JOHUNLZPMULLKLK;OL
respective Committees regularly meet to manage work-related
6
hazards, including investigation and incident reporting, which
PNB’s employee breakdown by category has been separated from the Group-wide 7
A high-consequence work-related injury is a work-related injury that results in a fatality
ÄN\YLZHZ75)OHZUVJVYYLZWVUKPUNYHURZMVY[OL:\WLY]PZVYJH[LNVY` or in an injury from which the worker cannot, does not, or is not expected to recover
fully to pre-injury health status within 6 months.

144 LT G R O U P, I N C . 2019 ANNUAL REPORT 145

 At Eton, our Marketing team ensures that our materials are
compliant with our branding guidelines and all applicable laws and
regulation set by the Department of Human Settlements and Urban
Development (DHSUD) [formerly Housing and Land Use Regulatory
Board (HLURB)] and DTI, among others. We regularly conduct a
review of branding guidelines to address and accommodate new
trends in industry branding. Likewise, we ensure that our brand
logos and product names are duly registered at the Philippine
Intellectual Property Office (IPO).
At PNB, we observe strict compliance with the conditions set by
the Bangko Sentral ng Pilipinas (BSP), as well as guidelines by the
Philippine Deposit Insurance Corporation (PDIC), ASC, DTI, among
others. All our marketing tools have undergone internal reviews
and have the necessary permits from regulators. Our Social Media
Framework is also in place to help us manage our reputational risk
across our social media platforms.
At TDI, we are guided by our Brand Guidance Policy, created
through research done by TDI on marketing standards practiced
in the Philippines. Our Quality Policy guides our labeling practices
where we follow a mandatory minimum standard for information on
our labels, which include alcohol content, packing size, intended
sale placement (whether domestic or export), manufacturing
plant address, BIR assessment number, ingredient declaration,
and product traceability, among others. When critical, we also
include proper product storage conditions and mixing guides,
as well as guidelines on disposal. We continuously monitor this
under our Quality Management System, and in strict compliance
with conditions set by regulatory bodies such as the ASC for our
television and radio advertisements. Labels of products for local
distribution conform to the guidelines of FDA, while labels for
products meant for export are subject to labeling regulations of the
importing country. All our products are evaluated and registered
by the FDA with their corresponding Philippine Intellectual Property
Office (IPO) registration. We conduct regular assessments and
evaluations throughout the year as we continuously look for new
and innovative ways to strengthen our presence in existing markets
and heighten our appeal to emerging markets.
In 2019, due to our strict commitment to comply with laws and
regulations on marketing and labeling, we have recorded zero
incidents of non-compliance.
Customer Health and Safety
Our customers’ health and safety
will always be a top priority for us.
Across all our products and services,
we make sure that our customers are
protected and safe from toxins and
hazards. We continuously look at ways to contribute to improving
our customers’ quality of life.
At ABI, our Food Safety and Quality Policy ensures that our
products meet international standards on quality and safety as set
by our Quality Management System and policies of the FDA, as well
as the National Sanitation Foundation and the International Bottled
Water Association. We continue to ensure that all our plants are
certified, that there are zero cases of non-conformance to regular
internal and external audit procedures, and that key performance
indicators on quality and packaging are met.
At Eton, we look to building and developing properties that
positively impact the way communities live and grow. We strictly
meet and observe all conditions set out by regulation and secure all
needed permits as required by local zoning laws, regulations set by
146 LT G R O U P, I N C .
the National Building Code of the Philippines, as well as policies of
the DHSUD (formerly HLURB), the Bureau of Fire Protection (BFP),
DENR, among others.
At TDI, our Quality Policy is in place to ensure that our products
are not just of excellent quality but are free of any elements that
could potentially be harmful to our customers. Within our Quality
Management System, and in compliance with the policies of the
FDA, we make sure that strict implementation of our Quality Policy
is observed as well as efficient response and resolution to product
complaints with our product complaints procedure, consumer
response program and corrective action plan.
During the reporting period, we recorded zero incidents of non-
compliance with regulations on customer health and safety. We
strengthen our commitment to ensure customer health and safety
at all times and aim to maintain zero cases in the next reporting
period.
Customer Engagement and Satisfaction
The longevity of our businesses has always partly depended on
how well we listen to our customers. By listening well, not only are
we able to improve the way we work, but we are able to create
better value. We consider customer engagement and satisfaction
a top priority.
At ABI, as part of our Food Safety and Quality Policy, we regularly
conduct a Customer Satisfaction Survey. Together with our
Customer Complaint Report, we use these tools to understand
how well we have done and to see which areas of improvement
we need to work on based on customer feedback sent through our
website, email, phone and social media profiles.
At Eton, our commitment to customer engagement and
satisfaction is rooted in our mission and vision as well as our Code
of Ethics. We work hard to ensure that we are able to address
client concerns and meet client demands in an efficient and timely
manner. Our Customer Support team handles all concerns coming
from our existing clients, while our Property Management Group
takes care of on-site concerns. Our Marketing team, on the other
hand, handles all feedback received from our website and social
media platforms from both existing and prospective clients.
At PNB, customer engagement and satisfaction is embedded across
all client touchpoints—from account opening to administration and
termination. Our dedicated Customer Experience Division handles
all client concerns and complaints 24 hours a day, 7 days a week
through various channels including our Customer Care Hotline,
website, email, secure online messaging platforms and the private
messaging function of our social media profiles. Our Customer
Care Policy ensures that any complaints brought to our attention
are acknowledged, processed and resolved in a timely manner.
Consistent with our Data Privacy Policy, we also ensure proper
documentation for these issues and complaints and report them to
the concerned regulators for compliance.
At TDI, we regularly engage in relationship-building activities
between our salesmen and our customers. We are also active
on social media and conduct marketing promotion campaigns
throughout the year. We conduct monthly and annual evaluations
of our activities to look at ways to improve. For any complaints, our
customers are able to reach us through our website, telephone,
email and/or our social media profiles. Each bears a distinct code
which will identify the plant batch, line and date of production to
pinpoint source of any defective products.
Digital Transformation and Innovation
In today’s information age, businesses are driven by
change that allow them to grow and improve. We
recognize the importance of digital transformation
and innovation as we look to reach new heights in
the way we do business.
Our businesses are currently looking at ways to continuously keep
up with present trends in technology. At Eton, we have integrated
innovation in our business as we continue to look at smart cities
and the impact of smart home systems to our properties. We
are also looking at plans to continue upgrading our Enterprise
Resource Planning (ERP) system.
At PNB, we launched our Ecosystem Strategy in 2016, which is an
end-to-end, sustainable value chain concept to provide customized
banking solutions and other services, which include integrated
cash management solutions, bills payment, and payroll services to
parties in the value chain. Digital transformation is at the very core
of this strategy as we innovate and find better solutions to working
with our partners. To make banking accessible to everyone, we
currently have 1,557 automatic teller machines (ATMs), and 81
cash accept machines (CAM) for 24-hour banking convenience.
At TDI, we are documenting business processes of our new ERP
system, which automates and integrates the management of many
business processes. Quarterly operational audits will be conducted
to ensure that written policies and procedures are being followed.
Customer Data Privacy and Security
Keeping information safe and secure is a top priority
for us. We look to new and innovative ways to
keep data that we have and data entrusted to us
safe and secure at all times. We comply with all
applicable regulation and go beyond compliance in
making sure that our data safekeeping capabilities are continuously
updated.
Across the Group, we are guided by our Data Privacy Policy
which provides a framework for processing personal data from
an individual in compliance with local data privacy laws and
professional standards, most notably the Philippine Data Privacy
Act of 2012. Our respective Data Protection Officers ensure strict
compliance and implementation of the policy as well as handling of
inquiries and complaints related to data privacy and security.
At Eton, we have a Data Privacy Manual, which complements
our Group-wide Data Privacy Policy. This manual is reviewed and
evaluated annually for any changes and improvement needed. Our
Data Protection Officers work closely with our Legal Department to
ensure that all required documentation is obtained from our clients.
We also make sure that our employees are compliant with existing
conditions set by regulation.
At PNB, together with our Group-wide Data Privacy Policy, our
Enterprise Data Privacy Policy reinforces our strong commitment to
data privacy and security. This policy was developed based on the
Philippine Data Privacy Act of 2012, the General Data Protection
Regulation 2016/679 (GDPR) of the European Union (EU), ISO
27001:2013 for Information Security Management System and our
Enterprise Information Security Policy, the Manual of Regulation for
Banks (MORB) of the BSP, and publications and references issued
by industry associations as the Information Systems Audit and
Control Association (ISACA) and the International Association of
Privacy Professionals (IAPP), among others. With our Data Privacy
Management Division (DPMD), comprised of our Data Protection
Officers and Data Protection Program Managers, we ensure firm
compliance with both local and international regulations as well
as international standards, including the compliance checklist of
the National Privacy Commission and the six (6) data protection
principles of the EU GPDR. Our DPMD also works with our
Customer Experience Division for a quick and easy way to
resolve any data privacy-related concerns directly coming from
our customers. Within the Bank, all our personnel are bound by
our confidentiality policy. We also regularly send out data privacy
advisories to all personnel concerned regarding updates and
trends on data privacy and security.
For 2019, we recorded three (3) incidents of inadvertent leakage
of customer data, and four (4) incidents of non-compliance with
rules and regulation on data privacy across the Group. These
incidents, which were recorded at PNB, have all been addressed
and immediately resolved in accordance with the Bank’s Enterprise
Information Security Policy and Enterprise Data Privacy Policy.
We also regularly reiterate our Group-wide Data Privacy Policy for
continued awareness. While the rest of our subsidiaries had zero
cases of non-compliance with rules and regulation on data privacy,
our commitment to ensuring data privacy and security remains
strong to avoid similar incidents in the next reporting period.
Society
Community Relations and Initiatives
We consider the
communities we operate
in as our partners in value
creation. From these
communities, we are
able to access a wealth
of human and natural
resources that contribute
greatly to our success.
We are committed to
contributing back to the very communities that help us grow for their
success is our success.
The Group’s main corporate social responsibility (CSR) arm is the Tan
Yan Kee Foundation, Inc. (TYKFI). Together with our partners, TYKFI
pursues projects that focus on education, health services, social
welfare and the environment.
In education, TYKFI maintains a number of scholarship and education
activities. In partnership with the University of the East (UE), the UE-
TYKFI Scholarship Program, an academic scholarship program for
deserving UE undergraduates and faculty members, has 123 new
and continuing scholars this year totaling to over 1,410 beneficiaries,
including 18 faculty members and 103 grantees who have benefitted
from the program in over 21 school years.
The TYKFI-STA Scholarship Program for Farmers’ Children, which
provides free private school education for deserving high school
students from marginalized farming families, currently has 160
scholars from grades 7 to 12 in Sta. Teresita’s Academy in Aritao,
Nueva Vizcaya.
In partnership with the Foundation for Liberty and Prosperity (FLP),
the TYKFI-FLP Legal Scholarship Program, a scholarship for selected
junior and senior year law students who are at the top of their class,
currently has 20 scholars across various law schools in the country.
TYKFI together with ABI has a Medical Specialty Scholarship
Program that helps Filipino doctors finish specialty training abroad.
Four (4) medical doctors completed their specialty training in
2019 ANNUAL REPORT 147
 2019 with the help of the program: Dr. Andrei Paulo Angbue-Te,
Dr. Noruel Gerard Salvador, Dr. Rosemarylin Or, and Dr. Giselle
Gotamco.
Together with the Foundation for Upgrading the Standards of
Education (FUSE), TYKFI sponsored the training of 133 teachers
to update and upgrade their teaching skills across different
subjects. The school supplies projects benefited 1,076 children
while the food distribution project reached 1,179 children and
teachers alike at the adopted schools. TYKFI also participated
in Brigada Eskwela 2019 where Nagtenga Elementary School in
Sta. Cruz, Ilocos Sur was provided with materials to help remodel
three (3) old Marcos-type classrooms for kindergarten and second
and third grade students. The Tan Yan Kee Library also conducted
summer learning activities for children on Chinese literature,
language and culture from May to July. From August to October,
the library gathered a diverse group of 11 people aged 14 to 85 for
its Chinese Ink Painting classes.
In health services, TYKFI continues to hold the monthly Asia Brewery
Medical Forum in cooperation with the Association of Asia Brewery
Medical Specialty Scholars. These forums provide the public
with better health information as well as information on the latest
treatment options. Some of the topics discussed in 2019 include
eye conditions, gastrointestinal tract afflictions, common childhood
diseases, kidney health and women’s health. Doctors who are Asia
Brewery Medical Scholars also provided free consultations during
the forums. Meanwhile, TYKFI has partnered with LGUs and private
medical specialists in extending free consultation to goiter patients.
In social welfare, TYKFI spearheaded a host of projects in
partnership with sister companies as well as public and private
organizations to help develop communities and improve their
quality of life. It sponsored the training of seven (7) local government
officials and six (6) teachers on good governance and solid waste
management through a clean-up drive within a mangrove park in
Boracay, Aklan. Aside from collecting almost 50 sacks of garbage,
the participants also planted api-api, a local mangrove species
in line with the Roots for Boracay Project in partnership with TDI,
DENR and the local government of Barangay Manoc-Manoc.
In response to the aftermath of the earthquakes that displaced
numerous families in Cotabato, TKYFI, together with Philippine
Airlines, PNB and TDI, distributed Chairman’s Gift Boxes filled with
food and drinks to over 2,000 evacuees across five (5) evacuation
camps in Makilala, Cotabato and Kidapawan City during the HOPE
Caravan’s disaster relief campaign.
TYKFI also helped PNB conduct a financial literacy seminar for 20
barangay treasurers from Aritao, Nueva Vizcaya.
In the protection of the environment, one of TYKFI’s biggest
undertakings is the Dr. Lucio C. Tan Legacy Forest Project. Started
in 2014, over 787 hectares of the 930-hectare area for reforestation
and protection in Barangay R.A. Padilla in Carranglan, Nueva Ecija
have been planted with different varieties of timber, fuelwood, and
fruit trees. Other planting and reforestation sites include the Laguna-
Quezon Land Grant (LQLG) of the University of the Philippines Los
Baños (UPLB) and parts of Nueva Vizcaya, as well as the Mangrove
Rehabilitation Projects in Ilocos Sur and Boracay.
Apart from rehabilitating the forests, TYKFI provided livelihood
opportunities by giving jobs to the farmers and teaching them
new scientific methods of producing vegetables, and organic and
ornamental plants. TYKFI also conducted holistic development
programs for the farm workers that include values formation,
wellness promotion and spiritual development. At the 56-hectare
planting site in Barangay Joson in Carranglan called Friendship
Park, various developmental activities have been conducted
like intercropping, ring weeding, fertilizer application, hedgerow
establishment, and road gravelling. In April 2019, more than 150
students from UPLB visited the project’s Nueva Ecija site and
learned about the goals, experiences, and sustainability efforts of
the project.
In September and October 2019, 19 farming students from the
Don Bosco Training Center in San Jose, Nueva Ecija who are NC-
II-certified also went to the TYKFI farm project site to undergo a 10-
day immersion program under their Supervised In-Plant training.
At TDI, we have partnered with Dualtech Training Center to train their
students under the Technical Education and Skills Development
Authority’s dual training system. Lasting for 18 months, Dualtech
students spend time training with us at TDI from Monday to Friday
and attending classes and other activities at their school during
Saturdays.
In 2019, 89% of our local operations have implemented community
initiatives.
LTG’s Unique Key Material Issue
Over time, our Group has grown and expanded to include
businesses in different industries with different challenges. In our
journey to sustainability, we recognize these unique challenges
as opportunities for us to show our skill and capability in meeting
these challenges head on and create long-term value for our
stakeholders.
Illicit Trade
The presence of smuggled and/or counterfeit
tobacco products, also known as illicit cigarettes,
in the country has created considerable challenges
to our operations in PMFTC. As illicit cigarettes
evade paying government-mandated excise taxes
and value added tax (VAT), the price gap between
illicit cigarettes and legitimate cigarettes is widened resulting to
low prices of illicits compared to our licit low-priced brands. These
illicit cigarettes then become an attractive alternative for smokers,
particularly the youth and low-income groups. The legislated
annual increase of excise taxes on tobacco products further widen
price gaps and make illicit cigarettes even more attractive. It is a
major economic problem for governments. In the Philippines, the
Intellectual Property Office of the Philippines (IPO) reported that in
2018 alone, around Php20 billion worth of illicit cigarettes and illicit
cigarette-making paraphernalia were seized.
At PMFTC, we work closely with other
PMFTC is part of a multisectoral movement called “Fight IT (Illicit
Trade)” led by the Federation of Philippine Industries (FPI) to curb
unfair trade and secure national revenues and protect legitimate
players in the domestic market. The Fight IT movement is also
supported by sectors, of which common issues are smuggling and
illicit trade in their industries, including rice, sugar, corn, palm oil,
tobacco, steel, cement and ceramic tiles. With its strengthened
fight against illicit trade, Fight IT action plans include: (1) to intensify
its public information drive against illicit trade; (2) to develop a
regulatory and fiscal information campaign designed to increase
the awareness of retailers on illicit trade; and (3) to advocate for
laws and regulations to mitigate illicit trade and support industry
investigators who will monitor the illegal tobacco trade for the
purpose of pushing for enforcements.
As part of the global PMI group, we at PMFTC channel our efforts
on illicit trade through the following:
1. Fighting the diversion of our products by continuously improving
measures to secure the supply chain with all stakeholders;
2. Sharing our knowledge with the impacted parties through
continuous research, analysis, and communication of illicit trade
issues and consequences; and
3. Pre-empting attempts to illegally divert our smoke-free products
by assessing potential risks and by equipping our organization
for this new challenge.
For further information, please refer to the PMI 2018 Sustainability
Report thru this link: https://www.pmi.com/sustainability/
sustainability-report.

TYKFI sponsored the skills enhancement training of 19 past

trainees from farming communities in the towns of Kayapa and Sta.
Fe, Nueva Vizcaya and Sta. Cruz, Ilocos Sur on basic cosmetology
in partnership with Ang Hortaleza Foundation. 30 housewives were
also trained in longanisa-making in the community of Las-Ud in
Sta. Cruz, Ilocos Sur.
Together with Eton, TYKFI launched the Masaganang Palayan
Project by donating high quality rice seeds and fertilizers to 18
farmers from Comon and Tabueng in Aritao, Nueva Vizcaya. Each
of the farmers received an average of three (3) to five (5) sacks
of hybrid rice seeds that can yield up to 100 to 110 cavans of
high quality palay. Another project together with Eton is the TYKFI-
Eton Joint Housing Assistance Project where four (4) newly-built
houses were turned over to the families of four (4) scholars under
the TYKFI-STA Scholarship Project
Together with TDI through Tanduay Athletics, TYKFI co-sponsored
the Golden KAP Basketball Tournament, a grassroots sports
development program participated in by community members from
Aritao, Nueva Vizcaya and Carranglan, Nueva Ecija. The project
was initiated to enable the youth to develop their skills in sports,
instill the value of sportsmanship, and foster intercommunity
goodwill and fellowship. Three (3) barangays from each of the two
municipalities participated in the tournament with over 75 youth
players.
Due to its successful efforts in reaching out to the community, TYKFI
was conferred the 2019 Global NGO Leadership and Excellence
Award due to its holistic commitment framework in doing CSR that
1000+ affiliates of Philip Morris International,
Inc. (PMI) to share intelligence and
resources to fight illicit trade guided
works to leave no one behind. participants to 63 by the objectives and the principles
engagements by of the WHO Framework Convention
At ABI, through our Asia Brewery Manufacturing Operations PMFTC on raising on Tobacco Control (FCTC) Protocol
Resources & Environment Sustainability (AMORES) project, the awareness about to Eliminate Illicit Trade in Tobacco
flagship sustainability project of ABI, we continue to drive further the illegal cigarette Products. We also regularly engage
our commitment to environmental and community stewardship. trade problem various internal and external
Together with WWF Philippines as our partner, we conducted the stakeholders to raise awareness
Education is Adaptation program to teach schoolchildren and about the illegal cigarette trade
teachers the environmental impact of waste and the importance problem, which includes capacity building activities on how to spot
of waste segregation. With this program, we were able to conduct an illicit cigarette product. In 2019, PMFTC conducted 63 separate
one (1) teachers’ training and three (3) information sessions with engagements with over 1,000 participants who are trade and law
students of Molino Elementary School, Panipuan Elementary enforcement partners, and PMFTC employees.
School, and Baliti Elementary School all in the province of
Pampanga.
At PNB, our Corporate Social Responsibility Policy drives
forward our commitment to incorporate and implement CSR
and sustainability-related initiatives in our operations. With the
creation of our new Corporate Sustainability Unit, we are currently
developing our sustainability policy, roadmap and framework.
Annually, we allocate at least two percent of our net income to
various CSR activities as education programs on financial literacy,
and scholarships, as well as livelihood development initiatives and
environmental campaigns.

148 LT G R O U P, I N C . 2019 ANNUAL REPORT 149

 APPENDIX Climate Change
GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 143 -
GRI Content Index Approach 2016 GRI 103 - 2 The management approach and its components 143 -
GRI Standard Disclosure Page No. Omissions GRI 103 - 3 Evaluation of the management approach 143 -
GRI 101: Foundation 2016 (GRI 101 does not include any disclosures) GRI 201: Economic GRI 201 - 2 Financial implications and other risks and opportunities due to climate change 143
-
General Disclosures Performance 2016
GRI 401: Employment 2016
Organizational Profile
GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 143-144 -
GRI 102 - 1 Name of the organization 61 -
Approach 2016 GRI 103 - 2 The management approach and its components 143-144 -
GRI 102 - 2 Activities, brands, products, and services 3, 14-27 -
GRI 103 - 3 Evaluation of the management approach 143 -
GRI 102 - 3 Location of headquarters 61 -
GRI 401: Employment GRI 401 - 1 New employee hires and employee turnover 143-144 -
GRI 102 - 4 Location of operations 61 -
2016 GRI 401 - 2 Benefits provided to full-time employees that are not provided to temporary or 143
GRI 102 - 5 Ownership and legal form 4-5, 32, 61-62 - -
part-time employees
GRI 102 - 6 Markets served 14-27 -
GRI 401 - 3 Parental leave 144 -
GRI 102 - 7 Scale of the organization 2-3, 14-27, 143-144 -
GRI 403: Occupational Health and Safety 2018
GRI 102 - 8 Information on employees and other workers 143-144 -
GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 144-145 -
GRI 102 - 9 Supply chain - Please see pages 17-18 of LTG’s
Approach 2016 GRI 103 - 2 The management approach and its components 144-145 -
full sustainability report <https://ltg.
GRI 102 - 10 Significant changes to the organization and its supply chain - GRI 103 - 3 Evaluation of the management approach 144-145 -
com.ph/sustainability-reports/>.
GRI 403: Occupational GRI 403 - 1 Occupational health and safety management system 144-145 -
GRI 102 - 11 Precautionary Principle or approach 137, 140 -
Health and Safety 2018 GRI 403 - 2 Hazard identification, risk assessment, and incident investigation 144-145 -
GRI 102 - 12 External initiatives 136-137 -
GRI 403 - 3 Occupational health services 144-145 -
Please see pages 19-20 of LTG’s
GRI 403 - 4 Worker participation, consultation, and communication on occupational health and 144-145
GRI 102 - 13 Membership of associations - full sustainability report <https://ltg. -
safety
com.ph/sustainability-reports/>.
GRI 403 - 5 Worker training on occupational health and safety 144-145 -
Strategy
GRI 403 - 6 Promotion of worker health 143-145 -
GRI 102 - 14 Statement from senior decision-maker 7-13, 134-135 -
GRI 403 - 7 Prevention and mitigation of occupational health and safety impacts directly linked 144-145
Ethics and Integrity -
by business relationships
Inside Front Cover,
GRI 102 - 16 Values, principles, standards, and norms of behavior - GRI 403 - 8 Workers covered by an occupational health and safety management system 145 -
28-35, 140
GRI 403 - 9 Work-related injuries 145
GRI 102 - 17 Mechanisms for advice and concerns about ethics 140 -
GRI 417: Marketing and Labeling 2016
Governance
GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 145-146 -
GRI 102: General GRI 102 - 18 Governance structure 28-33 -
Approach 2016 GRI 103 - 2 The management approach and its components 145-146 -
Disclosures 2016 GRI 102 - 22 Composition of the highest governance body and its committee 28-33 -
GRI 103 - 3 Evaluation of the management approach 145-146 -
GRI 102 - 23 Chair of the highest governance body 28-33 - GRI 417: Marketing and GRI 417 - 1 Requirements for product and service information and labeling 145-146 -
GRI 102 - 26 Role of highest governance body in setting purpose, values, and strategy Inside Front Cover - Labeling 2016 GRI 417 - 2 Incidents of non-compliance concerning product and service information and 146
Stakeholder Engagement -
labeling
GRI 102 - 40 List of stakeholder groups 136 - GRI 417 - 3 Incidents of non-compliance concerning marketing communications 146 -
GRI 102 - 41 Collective bargaining agreements 143 - GRI 416: Customer Health and Safety 2016
GRI 102 - 42 Identifying and selecting stakeholders 136 - GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 146 -
GRI 102 - 43 Approach to stakeholder engagement 136 - Approach 2016 GRI 103 - 2 The management approach and its components 146 -
GRI 102 - 44 Key topics and concerns raised 137 - GRI 103 - 3 Evaluation of the management approach 146 -
Reporting Practice GRI 416: Customer Health GRI 416 - 1 Assessment of the health and safety impacts of product and service categories 146 -
GRI 102 - 45 Entities included in the consolidated financial statements 2-3, 61-63 - and Safety 2016 GRI 416 - 2 Incidents of non-compliance concerning the health and safety impacts of products 146
-
GRI 102 - 46 Defining report content and topic Boundaries 136-137 - and services
GRI 102 – 47 List of material topics 137-139 - Customer Engagement and Satisfaction
Not applicable as this is the first GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 146 -
GRI 102 - 48 Restatements of information Approach 2016 GRI 103 - 2 The management approach and its components 146 -
year of reporting.
Not applicable as this is the first GRI 103 - 3 Evaluation of the management approach 146 -
GRI 102 - 49 Changes in reporting GRI 102: General Standard GRI 102 - 43 Approach to stakeholder engagement 136 -
year of reporting.
GRI 102 - 50 Reporting period 136 Disclosures 2016 GRI 102 - 44 Key topics and concerns raised 137 -
Not applicable as this is our first Digital Transformation and Innovation
GRI 102 - 51 Date of most recent report GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 147 -
sustainability report.
GRI 102 - 52 Reporting cycle 136 - Approach 2016 GRI 103 - 2 The management approach and its components 147 -
GRI 102 - 53 Contact point for questions regarding the report 137, 156 - GRI 418: Customer Privacy 2016
GRI 102 - 54 Claims of reporting in accordance with the GRI Standards 136 - GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 147 -
GRI 102 - 55 GRI content index 150-151 - Approach 2016 GRI 103 - 2 The management approach and its components 147 -
GRI 102 - 56 External assurance 136 - GRI 103 - 3 Evaluation of the management approach 147 -
Material Topics GRI 418: Customer Privacy GRI 418 - 1 Substantiated complaints concerning breaches of customer privacy and losses of 147
-
GRI 201: Economic Performance 2016 2016 customer data
GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 136-137, 139 - GRI 413: Local Communities 2016
Approach 2016 GRI 103 - 2 The management approach and its components 139 - GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 138, 147-149 -
GRI 201: Economic Approach 2016 GRI 103 - 2 The management approach and its components 147-149 -
GRI 201 - 1 Direct economic value generated and distributed 139 - GRI 413: Local GRI 413 - 1 Operations with local community engagement, impact assessments, and 147-149
Performance 2016 -
GRI 419: Socioeconomic Compliance 2016 Communities 2016 development programs
GRI 103 - 1 Explanation of the material topic and its boundary 137, 139 - GRI 413 - 2 Operations with significant actual and potential negative impacts on local 147-149
GRI 103: Management -
GRI 103 - 2 The management approach and its components 139 - communities
Approach 2016 Illicit Trade
GRI 103 - 3 Evaluation of the management approach 139 -
GRI 419: Socioeconomic GRI 103: Management GRI 103 - 1 Explanation of the material topic and its boundary 22, 138, 149 -
GRI 419 - 1 Non-compliance with laws and regulations in the social and economic area 139 - Approach 2016 GRI 103 - 2 The management approach and its components 22, 149 -
Compliance 2016
Risk Management Task Force on Climate-related Financial Disclosures (TCFD) Content Index
GRI 103 - 1 Explanation of the material topic and its boundary 137, 140 -
GRI 103: Management Recommended Disclosures
GRI 103 - 2 The management approach and its components 140 -
Approach 2016
GRI 103 - 3 Evaluation of the management approach 140 - Governance
GRI 102: General Disclose the organization’s governance around climate-related risks and opportunities.
GRI 102 - 11 Precautionary principle or approach 140 -
Disclosures 2016 a) Describe the board’s oversight of climate related risks and opportunities. 30-35, 137
GRI 205: Anti-Corruption 2016 b) Describe management’s role in assessing and managing climate-related risks and opportunities. 30-35, 137
GRI 103 - 1 Explanation of the material topic and its boundary 138, 140 - Strategy
GRI 103: Management
GRI 103 - 2 The management approach and its components 140 - Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s business, strategy, and
Approach 2016
GRI 103 - 3 Evaluation of the management approach 140 - financial planning where such information is material.
GRI 205: Anti-Corruption GRI 205 - 2 Communication and training about anti-corruption policies and procedures 31, 140 - a) Describe the climate-related risks and opportunities the organization has identified over the short, medium, and long term. Still being studied
2016 GRI 205 - 3 Confirmed incidents of corruption and actions taken 140 -
GRI 303: Water and Effluents 2018 b) Describe the impact of climate-related risks and opportunities on the organization’s businesses, strategy, and financial planning. 143
GRI 103 - 1 Explanation of the material topic and its boundary 138, 141 - c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or 143
GRI 103: Management
GRI 103 - 2 The management approach and its components 141 - lower scenario.
Approach 2016
GRI 103 - 3 Evaluation of the management approach 141 - Risk Management
GRI 303 - 1 Interactions with water as a shared resource 141 - Disclose how the organization identifies, assesses, and manages climate-related risks.
GRI 303: Water and
GRI 303 - 2 Management of water discharge-related impacts 141 -
Effluents 2018 a) Describe the organization’s processes for identifying and assessing climate-related risks. 140
GRI 303 - 3 Water withdrawal 141 -
GRI 306: Effluents and Waste 2016 b) Describe the organization’s processes for managing climate-related risks. 140, 143
GRI 103 - 1 Explanation of the material topic and its boundary 138, 141-142 - c) Describe how processes for identifying, assessing, and managing climate-related risks are integrated into the organization’s overall risk 140
GRI 103: Management management.
GRI 103 - 2 The management approach and its components 141 -
Approach 2016 Metrics and Targets
GRI 103 - 3 Evaluation of the management approach 141 -
GRI 306: Effluents and Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material.
GRI 306 - 3 Waste by type and disposal method 141-142 - a) Describe the metrics used by the organization to assess climate-related risks and opportunities in line with its strategy and risk 140-143
Waste 2016
management process.
GRI 302: Energy 2016 b) Disclose Scope 1, Scope 2, and if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks. 142
GRI 103 - 1 Explanation of the material topic and its boundary 138, 142 - c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets. Processes are still to be set up for the future
GRI 103: Management
GRI 103 - 2 The management approach and its components 142 - reporting of this metric
Approach 2016
GRI 103 - 3 Evaluation of the management approach 142 -
GRI 302: Energy 2016 GRI 302 - 1 Energy consumption within the organization 142 - For the digital copy of the full 2019 Sustainability Report, please download at: https://ltg.com.ph/sustainability-reports/

150 LT G R O U P, I N C . 2019 ANNUAL REPORT 151

 Believing in the power of sports in inspiring
individuals to work hard for their goals, he promoted the
love for sports among employees which, in turn,
transcended many barriers in the workplace.

ucio ‘Bong’ Tan, Jr. was a young visionary whose eyes Under his leadership, TDI strengthened into an iconic
L were set on building a strong future for LT Group, Inc.
and his country, the Philippines.
Filipino brand. It became the world’s number one rum for
2018 and 2019, beating Puerto Rican brand Bacardi,
according to Drinks International.
He followed his destiny as the dutiful son and namesake
of taipan Dr. Lucio C. Tan. Together, they shared the vision
TDI also started various green initiatives like the bioethanol
of building a world-class conglomerate at the forefront of
facility of Absolut Distillers, Inc. The Company was among
the country’s economic growth.
the first distilleries in the Philippines to heed government’s
But Bong was also very much his own man, boldly call for bioethanol production, in an effort to provide a
pursuing new initiatives and injecting fresh ideas for the sustainable and clean source of energy for the transport
advancement of LT Group and society at large. In pursuing sector.
this vision, Bong was armed with the rare combination of
In Eton, Bong spearheaded the development of the
an educational training as an engineer, an unparalleled
Company’s various product offerings – from homes to
passion as a sportsman and a strong advocacy for the
commercial spaces – always keeping in mind the clients’
environment.
evolving needs. With him at the helm, Eton was able to
Born in Manila in 1966, Bong was into different sports strike an optimal balance between sales and recurring
and mind games while growing up. He went to Saint Jude revenue.
Catholic School in Manila for his grade school education
Though regarded as a prince in Philippine business, Bong
during which he became part of the Philippine Swimming
always exuded an unassuming, youthful and down-to-earth
Team.
demeanor. He never lost sight of Chairman Tan’s vision of
After grade school, he went to Dunman High School building a world-class conglomerate that contributed to the
in Singapore where he developed a keen interest in country’s economic growth.
basketball. He later took Chinese Language and Ancient
His charismatic leadership style and sportsmanship greatly
Chinese History courses at Beijing University, believing
endeared him to the employees of the Lucio Tan Group,
that one can only be ready for the future by learning
their clients and other stakeholders.
lessons of the past.
Believing in the power of sports in inspiring individuals to

LUCIO K. TAN, JR.

June 14, 1966 – November 11, 2019
After graduating with a Civil Engineering degree from the
work hard for their goals, he promoted the love for sports
University of California, Davis in 1991, he pursued higher
among employees which, in turn, transcended many barriers
studies and took up the Executive Master of Business
in the workplace.
Administration Program at Kellogg School of Management
Northwestern University through a link-up with the Hong He was a team player himself, leading his employees to

Young Taipan, Kong University of Science and Technology. Afterwards,
he returned to the Philippines to help his father manage
his many businesses.
always strive for a harmonious work environment that made
them better equipped to handle challenges of the future.
Without doubt, Bong left member firms of the Lucio Tan
Group in a better place than when he first found them,

Sports Enthusiast,
His first job at Fortune Tobacco Corporation was as
a tobacco checker. He studied different grades of enabling these companies to contribute better to nation-
tobacco leaves before they could be processed into building.
cigarettes. Years later, he became President of Tanduay
Indeed, like his favorite Marvel superhero Iron Man,

Man for Others

Distillers, Inc., its subsidiary Absolut Distillers, Inc. and
Bong strived to the very end to make his real life Marvel
Eton Properties Philippines, Inc. aside from sitting in
Universe better and stronger for his countrymen. He will be
the Board of LT Group, Inc. and other Lucio Tan Group
greatly missed.
member firms.

152 LT G R O U P, I N C . 2019 ANNUAL REPORT 153

 BANNER
BOARDD OF DIRECTORS YEAR

Michael G. Tan Juanita T. Tan Lee Johnip G. Cua Mary G. Ng Wilfrido E. Sanchez
President and Chief Operating Officer Director and Treasurer Independent Director Independent Director Independent Director

Dr. Lucio C. Tan

Chairman and Chief Executive Officer

BOARD OF ADVISORS EXECUTIVE OFFICERS

Carmen K. Tan Harry C. Tan Lucio C. Tan III

Director Director Director
Appointed on December 17, 2019

Peter Y. Ong Jose Gabriel D. Olives Nestor C. Mendones Atty. Ma. Cecilia L. Pesayco
Advisor Chief Financial Officer Deputy Chief Financial Officer Corporate Secretary

Lucio K. Tan, Jr.+ Vivienne K. Tan Florencia G. Tarriela

Director Director Independent Director
Deceased on November 11, 2019

Dioscoro Teodorico L. Lim Atty. Marivic T. Moya Atty. Erwin C. Go

Chief Audit Executive Assistant Corporate Secretary Chief Legal Counsel

154 LT G R O U P, I N C . 2019 ANNUAL REPORT 155

 Investor Information Annual Report 2019

Paper used: MOHAWK Options PC White 216 gsm

LT Group, Inc.
210 x 297 mm
11th Floor Unit 3 Bench Tower,
100% post consumer recycled fiber
30th Street corner Rizal Drive, Crescent Park West 5,
Bonifacio Global City, Taguig City
Limited Edition Planner Cream 80 gsm 50% post consumer
Tel: +632 8808 1266;
recycled pulp
Facsimile: +632 8869 8336
Website: ltg.com.ph
Ink used: Printed with soy based ink
Alcohol free fountain solution
BUSINESS GROUPS:
Printer: Velprint Corp.
SMETA-certified printer
Asia Brewery, Inc. External Auditor
www.Velprint.com.ph
Head Office: 6th Floor PNB Makati Center SyCip Gorres Velayo & Co.
(formerly Allied Bank Center), 6760 Ayala Avenue, Makati City
6754 Ayala Avenue, Makati City
Tel: +632 8816 3421 to 40 Stockholder Services and Assistance
Facsimile: +632 8810 4041 For matters concerning dividend payments, account status,
Website: asiabrewery.com lost or damaged certificates or change of address,
please write or call:
Eton Properties Philippines, Inc.
Head Office: 8th Floor PNB Makati Center Philippine National Bank – Trust Banking Group
(formerly Allied Bank Center), (Fiduciary Services Division)
6754 Ayala Avenue, Makati City Attention: Ms. Joanna Marie L. Aviles
Tel: +632 8548 4000; or Ms. Emylyn P. Audemard
Facsimile: +632 8887 1549
Address: 3rd Floor PNB Financial Center
Website: eton.com.ph
President Diosdado Macapagal Boulevard, Pasay City
PMFTC Inc. Tel: +632 8526 3131 or +632 8891 6040
Head Office: 31st Floor, The Finance Center local 2307 and 4575
26th Street corner 9th Avenue Email: avilesjml@pnb.com.ph or audemardep@pnb.com.ph
Bonifacio Global City, Taguig City
Tel: +632 8886 5901
Website: pmi.com Investor Relations
LTG welcomes inquiries from institutional investors,
Philippine National Bank analysts and the financial community.
Head Office: PNB Financial Center, Please write or call:
President Diosdado Macapagal Boulevard, Pasay City Ms. Annabelle Arceo
Tel: +632 8526 3131 to 70 or +632 8891 6040 to 70; LT Group, Inc.
Facsimile: +632 8834 0780 or +632 8573 4580 Tel: +632 8808 1266
Website: pnb.com.ph Email: ir@ltg.com.ph or annabelle.arceo@ltg.com.ph

Tanduay Distillers, Inc.

Head Office: Km. 43 National Highway,
Barangay Sala, Cabuyao, Laguna
Tel: +632 8810 2701 to 10;
Facsimile: +632 8816 5101
Website: tanduay.com

Legal Counsel
Atty. Erwin C. Go
Office of the Legal Counsel
Lucio Tan Group of Companies
2nd Floor Allied Bank Center,
6754 Ayala Avenue, Makati City

156 LT G R O U P, I N C .
 11th Floor Unit 3 Bench Tower, 30th Street corner Rizal Drive
Crescent Park West 5, Bonifacio Global City, Taguig City, Philippines
ltg.com.ph