Instructions:

Please follow below steps to complete this capital decision model.

step 1 - complete "coverpage", input CER number assigned by CER coordinator,

project name, location name, project owner, amount requested in local currency.
Obtain discount rate, incremental tax rate, depreciation years, depreciation
method, project evaluation years, and exchange rate from corporate finance.
Input green highlighted cells only.

Step 2 - complete "outline", input detailed written description of the current

and proposed methods with a discussion of the associated benefits and risks.

Step 3 - complete "Expenditure", input the capital investment and expenditure

investment associated to the project. The subtotal amount should tie to amount
requested that you input on "coverpage". Decriptions, quotations, and
assumptions behind for each assets purchased should be in written
justifications on this page.

Step 4 - complete "OWC" for investment with changes in operating working

capital (Accounts receivable, inventory, Accounts Payable). Obtain inventory
turnover, DSO and DPO information from division finance controller. Complete
this tab with help from finance coordinator. - data link from tab "EBIT
simulation". Please fill in assumptions in green highlighted tabs. Narratives
are required for assumptions behind.

Step 5 - complete "CostSavings" only for cost reduction project. Input present
and proposed cost, and the assumptions behind.

Step 6 - complete "Risk-adj return ratio" for sumitomo corp risk management
simulation. Please let Sumitomo Finance Officer input the risk adjustment ratio
in yellow highlighted cells. Others are auto linked.
 NEW CER FORM

SUMIFRU (PHILIPPINES) CORPORATION

CAPITAL EXPENDITURES REQUEST (CER)

Project Name PROPELLER OVERHAUL(BUA 296169)- FOR BUDGET GROUP USE ONLY
Additional
:
Amount Requested (Php): 600,000.00 CER No.
Amount Requested (USD): IO No.
District / Farm / Dept. : AIRTRAC Asset No.
Cost Center : 8000100000

Brief Summary of Justification:

Project Purpose/
Justification: We will re-overhaul this propeller due to CAAP mandatory memorandum circular no. 34-2020 related to
safety issue(s) with high risk that may constitute imminent danger to safe operation of the aircraft

Q1- Year Q2 - Year Q3 - Year Q4 - Year

Timing of Capital Expenditure, Php (000) 600,000.00

PROJECT PROPONENT:
Position/ Function Name Signature Date
Maintenance & Engineering ManaAlberto Almerex
AAC General Manager Capt. Sandy Habana

DISTRICT/ DEPARTMENT APPROVALS:

Position/ Function Name Signature Date
Finance Officer Joy Japay
District Manager/Dep't Head
Division Head

FUNCTIONAL APPROVALS:
Position/ Function Name Signature Date
MIS Head(IT-related)
Eng'g Head (Eng'g-related)

DIVISION APPROVALS:
Position/ Function Name Signature Date
Country Finance Head Florence Fernandez
Country Manager Nestor Roble

CORPORATE APPROVALS
Position/ Function Name Signature Date
Chief Operating Officer Emmanuel Javellana
Chairman/ CEO
 Sumifru Capital Expenditure Request

Project Justification:

PROPELLER OVERHAUL BUA 29169 SN 990561

Propellers are integral part of an airplane to fly. It is a mandatory requirement of the manufacturer to overhaul when ###
it reaches Calendar TBO of 3 years or when it reaches 2000 hours for Cessna and 3,000 hours for Turbo, whichever ###
comes first. ###
While this is true for normal overhauling schedule, last December 2020, Civil Aviation Authority of the Philippines ###
(CAAP) issued memorandum circular no. 34-2020 which stated that all overhauled propeller from Manila Aircraft
Propeller Services, Inc. will be recalled and will be re-overhaul due to multiple safety issue(s) with high risk that may
constitute imminent danger to safe operation of the aircraft. Propeller with BUA 29169 was overhauled by Manila ###
Aircraft Propeller Services, Inc. and will be subjected as part of the memorandum circular no. 34-2020.
###
###

###
###
PROPELLER STATUS AS OF July 2021
TAIL TYPE OF PROP. PROP. DATE OF
TBO TSO RTBO PROPELLE REMARKS
NUMBER AIRCRAFT MODEL SERIAL NO. INST.
R CHANGE
1.) RP-R 3850 TURBO AG-CAT HC-B3TN-3D BUA 31689 3/10/2018 3000 HRS 224 + 00 2776 + 00 25-Mar-24
Last 1 propeller remaining for replacement in Compliance with CAAP
RP-R 1126 TURBO THRUSH HC-BT3N-3D BUA 29619 2/8/2017 3000 HRS 910 + 00 2090 + 00 14-Feb-23
2.) Memo (Until October 2021)
3.) RP-R 2447 TURBO THRUSH HC-B3TN-3D BUA 19185 8/4/2017 3000 HRS 416 + 00 2584 + 00 4-Aug-23
4.) RP-R4861 TURBO THRUSH HC-B3TN-3D BUA32281 4/8/2020 3000 HRS 727 + 00 2273 + 00 8-Apr-23
5.) RP-R3298 TURBO THRUSH HC-B3TN-3D BUA 20970 8/19/2020 3000 HRS 133 + 00 2867 + 00 19-Aug-23
6.) RP-R5772 HC-B3TN-3D BUA34345 3/26/2019 3000 HRS 771 + 00 2229 + 00 26-Mar-22
Billy Ray TURBO
BationTHRUSH
7)
Cost AnalystTURBO THRUSH HC-B3TN-3D BUA 31759 For Overhaul 3000 HRS
8.) Purchase 2 set of Brand New Propeller and 3 blades
 Sumifru Capital Expenditure Request
Project Summary: Economics Simulation:

CER number: Net Present Value (NPV): #REF!

Engine & Propeller Overhaul (TURBO
Project name: THRUSH RP-R3298) Internal Rate of Return (IRR): #REF!
Location name: Airtrac Discounted Payback : #REF!
Location code: 4000
Project owner: Cesar L. Padlan Decision making: Pending Review
Cost Center: #REF! Comments:
Amount requested (Peso): 15,380,000
Amount requested (US dollar): -
Edit Trial (name, title and date)
Investment Type: SprayPlanes Project proposed by:

Division approved by: Capt. Samson S. Villaver

Assumptions: CER Coordinator review (1st level):

Discount Rate: 10% Functional approved by (1st level):
Incremental Tax Rate: 30% Functional approved by (2nd level):
Depreciation Years: 3
Depreciation Method: straight line GM Approval (Division Controller): Victor S. Mercado Jr.

Project evaluate years: 3 GM Approval (General Manager): Emilio O. Grande

Exchange rate: 45 Corporate Approval (CFO): Angela Goh

Local Currency: Peso Corporate Approval (CEO): Paul Cuyegkeng

Sumifru Capital Expenditure Request

Operational Working Capital Simulation:

Project type: Inventory turn over rate (ITO) 13

Project name: Days Sales Outstanding (DSO) 30 days
Project owner: Days Payable Outstanding (DPO) 23 days

Finance Statement Sim

Proposed Incremental
Evaluate Calendar Income Statement Income Statement
Year Year Volume unit price unit cost SG&A per Sales COGS SG&A EBIT Volume Sales COGS SG&A EBIT
box
0 #REF! - - - - - - - - - - - - -
1 #REF! - - - - - - - - - - - - -
2 #REF! - - - - - - - - - - - - -
3 #REF! - - - - - - - - - - - - -
4 #REF! - - - - - - - - - - - - -
5 #REF! - - - - - - - - - - - - -
6 #REF! - - - - - - - - - - - - -
7 #REF! - - - - - - - - - - - - -
8 #REF! - - - - - - - - - - - - -
9 #REF! - - - - - - - - - - - - -
10 #REF! - - - - - - - - - - - - -

Proposed Changes in Incremental

Evaluate Calendar Working Capital Working Capital
Year Year Inventory Recievable Payable Working Incremental Inventory Recievable AP Working Incremental
capital WC capital WC change
0 #REF! - - - - - - - - - -
1 #REF! - - - - - - - - - -
2 #REF! - - - - - - - - - -
3 #REF! - - - - - - - - - -
4 #REF! - - - - - - - - - -
5 #REF! - - - - - - - - - -
6 #REF! - - - - - - - - - -
7 #REF! - - - - - - - - - -
8 #REF! - - - - - - - - - -
9 #REF! - - - - - - - - - -
10 #REF! - - - - - - - - - -
EBIT simulation

#REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Volume
Productivity (boxes per HA)
Selling Price (in USD)

Total Market Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Ex-Wharf Cost 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Wharf Loading
Cold Chain
FOB Cost (ex-Packaging) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
KD Box
Plastic Box
Regional Overhead
Total FOB 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total C&F 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Total Costs 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

EBIT (in US$/box) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EBIT (in US$) 0 0 0 0 0 0 0 0 0 0 0

Markets Provision
Provision
EBT(US$/BOX) 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
EBT (in US$) 0 0 0 0 0 0 0 0 0 0 0

checkpoint 0 0 0 0 0 0 0 0 0 0 0
variance - - - - - - - - - - -

Rejection rate #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0! #DIV/0!
Risk-adjusted return ratio
definiation: this represents the profitability of a business against risks involved in it, calculated as consolidated net income / risk-adjusted assets.
Sumitomo corp target a risk-adjusted return ratio of 7.5%, a figure which would cover shareholders' capital costs.
Instruction: Please let Sumitomo Finance Officer input the risk adjustment ratio in yellow highlighted cells. Others are auto linked.

Year 0 Year 1 Year 2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year 10 10 yrs Accum
Risk-adjusted return ratio 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0% 0%
Consolidated net income #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Risk-adjusted assets RW
- Accounts Receivable 16.6% - - - - - - - - - - - -
- Inventories 16.6% - - - - - - - - - - - -
- Land, leasehold 46.7% - - - - - - - - - - - -
- Tangible Assets subject to amortization 70.9% #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
- Intangible Assets subject to amortization 100.0% - - - - - - - - - - - -
- Investments in Capital stock 100.0% - - - - - - - - - - - -
- Investment Securities, Other investments 51.5% - - - - - - - - - - - -
Risk Asset Total #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!

Balance sheet simulation

- Accounts Receivable - - - - - - - - - - -
- Inventories - - - - - - - - - - -
- Land, leasehold
- Tangible Assets subject to amortization #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
- Intangible Assets subject to amortization
- Investments in Capital stock
- Investment Securities, Other investments

Tangible Assets Purchase value #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Accumulated amortization #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!
Tangible Assets book value #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF! #REF!