FINANCIAL STATEMENT ANALYSIS B

TABULAR SUMMARY

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Horizontal Analysis
(In Millions)
  2010 2009 Changes % Change
ASSETS        
Current Assets
       

Cash and Cash Equivalents P15,076 P13,563 P1,513 11.16%

Trade & Other Receivables 4,366 3,311 1,055 31.86%
Inventories 3,557 3,246 311 9.58%
Prepaid Expenses and        
Other Current Assets 1,149 653 496 75.96%
Total Current Assets 24,148 20773 3,375 16.25%

Noncurrent Assets        
Investments-net 135 - 135 100.00%
Property, plant and equipment - net 19,635 5,765 13,870 240.59%
Investment property - net 1,379 - 1,379 100.00%
Intangible assets - net 36,136 32,020 4,116 12.85%
Deferred tax assets 68 232 -164 -70.69%
Other noncurrent assets - net 5,620 5,300 320 6.04%
Total Noncurrents Assets 62973 43,317 19,656 45.38%
Total Assets 87,121 64,090 23,031 35.94%

LIABILITIES AND EQUITY        

Current Liabilities        
Draft and loans Payable 1,644 - 1,644 100.00%
Accounts payable and accrued expanses 6,833 4,077 2,756 67.60%
Income and other taxes payable 2,263 1,679 584 34.78%
Total Current Liabilities 10,740 5,756 4,984 86.59%

Noncurrent Liabilities        
Long-term debt - net of debt issue cost 51,364 38,416 12,948 33.70%
Deferred tax liabilities 89 - 89 100.00%
Other noncurrent liabilities 107 - 107 100.00%
Total Noncurrent Liabilities 51,560 38,416 13,144 34.21%
 2010 2009 Changes % Change
Equity
Equity Attributable to Equity Holders
of the Parent Company
Capital Stock P15,410 P15,410 - -
Additional paid-in capital 515 515 - -
Cumulative translation adjustments -542 - -542 -100.00%
Retained Earnings 7,286 3,993 3,293 82.47%
  22669 19,918 2,751 13.81%
 
Non-controlling Interests 2,152 - 2,152 100.00%
Total Equity 24821 19,918 4,903 24.62%
  87121 64,090 23,031 35.94%
CONSOLIDATED STATEMENTS OF CASH FLOWS
Horizontal Analysis
(In Millions)

  2010 2009 Change % change

P16,56
Sales P67,575 P51,009 6 32.48%

Cost of Sales 34,505 26,261 8,244 31.39%

Gross Profit 33,070 24,748 8,322 33.63%

Selling and administrative expenses -14,519 -8,737 -5,782 66.18%

Interest expense and other financing charges -3,983 -2,600 -1,383 53.19%

interest income 696 538 158 29.37%

Impairment losses on noncurrent assets -3,694 - -3,694 0.00%

Income from acquisition of assets at fair value 2,418 - 2,418 0.00%

Other income (charges) - Net 1,247 -19 1,266 6663.16%

Income before income tax 15,235 13,930 1,305 9.37%

Income tax expense 4,862 3,897 965 24.76%

Net Income 10,373 10,033 340 3.39%

CONSOLIDATED STATEMENTS OF CASH FLOWS
Horizontal Analysis
(In Millions)

  2010 2009 Changes % Change

CASH FLOWS FROM  
OPERATING ACTIVITIES  
Income before income tax P15,235 P13,930 P1,305 9.37%
Adjustments for:
Interest expense and
other financing charges 3,983 2,600 1,383 53.19%
Impairment losses on noncurrent assets 3,694 - 3,694 100.00%
Depreciation, amortization and others 2,064 1,694 370 21.84%
Income from acquisition of
assets at fair value -2,418 - -2,418 100.00%
Interest income -696 -538 -158 29.37%
Provision (reversal) of allowance for
impairment losses on receivables,
inventory and others 294 -236 530 224.58%
Loss (gain) on sale of property and
equipment property 7 4 3 75.00%

Operating income before 22,163 17,454 4,709 26.98%

Decrease (increase) in:
Trade and other receivables 476 368 108 29.35%
Inventories 202 266 -64 -24.06%
Prepaid expenses and other current assets -145 -39 -106 271.79%
Increase (decrease) in:
Accounts Payable and accrued expenses 465 309 156 50.49%
Other taxes payables -29 -439 410 -93.39%
Cash generated from operations 23,132 17,919 5,213 29.09%
Interest paid -3,753 -1,708 -2,045 119.73%
Income taxes paid -4,467 -4,187 -280 6.69%
Net cash flows provided by operating activities 14,912 12,024 2,888 24.02%
 %
  2010 2009 Changes Change
CASH FLOWS FROM INVESTING ACTIVITIES      
Acquisitions of property, plant and equipment -956 -626 330 52.72%
Proceeds from sale of property and
equipment and investment property 13 5 8 160.00%
Acquisition of subsidiaries, net of cash received -16,464 -32,000 -15,536 48.55%
Increase in intangible assets
and other noncurrent assets -1,033 -1,559 -526 33.74%
Interest received 694 535 159 29.72%
Net cash flows used in investing activities -17,746 -33,645 -15899 47.26%
CASH FLOWS FROM FINANCING ACTIVITIES  
Payments of short-term borrowings, net of
Availments -27 -  27  100.00%
Proceeds from long-term debt 13,469 38,356 -24,887 64.88%
Proceeds from issuances of capital stock - -  -  -
Dividends paid to non-controlling shareholders -300 - 300  100.00% 
Increase (decrease) in other noncurrent liabilities -83 -39 44 112.82%
Cash dividends paid -8,475 -9,170 695 7.58%
Net cash flows provided by (used in)
financing activities 4,584 29,147 -24,563 84.27%
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS -237 -4 233 5825.00%
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,513 7,522 -6,009 79.89%
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 13,563 6,041 7,522 124.52%
CASH AND CASH EQUIVALENTS AT END OF YEAR 15,076 13,563 1,513 11.16%

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION

Vertical Analysis
(In Millions)

2010 % change 2009 % change

ASSETS

 Current Assets

Cash and Cash Equivalents P15,076 17.30% P13,563 21.16%

Trade and other receivables 4366 5.01% 3311 5.17%

Inventories 3557 4.08% 3246 5.06%

Prepaid Expenses and other current

assets 1149 1.32% 653 1.02%

Total Current Assets 24148 27.72% 20773 32.41%

Noncurrent Assets

Investment - net 135 0.15% 0.00%

Property, Plant and Equipment - net 19635 22.54% 5765 9.00%

Investment Property - net 1379 1.58% 0.00%

Intangible Assets - net 36136 41.48% 32020 49.96%

Deferred Tax Assets 68 0.08% 232 0.36%

Other noncurrent assets - net 5620 6.45% 5300 8.27%

Total Noncurrent Assets 62793 72.08% 43317 67.59%

Total Assets 87121 100.00% 64090 100.00%

 2010 % Change 2009 % Change

LIABILITIES AND EQUITY

Current Liabilities

Draft and loans payable 1644 1.89% 0.00%

Account Payable and accrued

expenses 6833 7.84% 4072 6.35%

Income and other taxes payable 2263 2.60% 1679 2.62%

Total Current Liabilities 10740 12.33% 5756 8.98%

Noncurrent Liabilities

Long-term debt - net of debt issue

costs 51364 58.96% 38416 59.94%

Deferred tax liabilities 89 0.10% 0.00%

Other noncurrent liabilities 107 0.12% 0.00%

Total Noncurrent Liabilities 51560 59.18% 38416 59.94%

Equity

Equity Attributable to Equity

Holders of the Parent Company

Capital Stock 15410 17.69% 15410 24.04%

Additional paid-in capital 515 0.59% 515 0.80%

Cumulative translation adjustments -542 -0.62% 0.00%

Retained Earnings 7286 8.36% 3993 6.23%

22669 26.02% 19918 31.08%

Non-controlling Interests 2152 2.47% 0.00%

Total Equity 24821 28.49% 19918 31.08%

Total Liabilities and Equity 87121 100.00% 64090 100.00%

CONSOLIDATED STATEMENTS OF INCOME
Vertical Analysis
(In Millions)
  2010 % change 2009 % change

Sales 67575 100.00% 51009 100.00%

Cost of Sales 34505 51.06% 26261 51.48%

Gross Profit 33070 48.94% 24748 48.52%

Selling and administrative

expenses -14519 -21.49% -8737 -17.13%

Interest expense and other

financing charges -3983 -5.89% -2600 -5.10%

Interest income 696 1.03% 538 1.05%

Impairment losses on
noncurrent assets -3694 -5.47% 0 0.00%

Income from acquisition of

assets at fair value 2418 3.58% 0 0.00%

Other income (charges) - Net 1247 1.85% -19 -0.04%

Income before income tax 15235 22.55% 13930 27.31%

income tax expense 4862 7.19% 3897 7.64%

Net Income 10373 15.35% 10033 19.67%

CONSOLIDATED STATEMENTS OF CASH FLOW

Vertical Analysis
(In Millions)

  2010 % Change 2009 % Change

CASH FLOWS FROM OPERATING ACTIVITIES  
Income before income tax 15,235 101.05% 13,930 102.71%
Adjustments for:  
Interest expense and other financing charges 3,983 26.42% 2,600 19.17%
Impairment losses on noncurrent assets 3,694 24.50% - 0.00%
Depreciation, amortization and others 2,064 13.69% 1,694 12.49%
Income from acquisition of assets at fair value -2,418 -16.04% - 0.00%
Interest income -696 -4.62% -538 3.97%
Provision (reversal) of all. for impairment  
losses on receivables, inventory and others 294 1.95% -236 1.74%
Loss (gain) on sale of property and equipment
property 7 14.89% 4 0.03%
Operating income before working capital changes 22,163 147.01% 17,454 128.69%
Decrease (increase) in:  
Trade and other receivables 476 3.16% 368 2.71%
Inventories 202 1.34% 266 1.96%
Prepaid expenses and other current assets -145 0.96% -39 0.29%
Increase (decrease) in:  
Accounts Payable and accrued expenses 465 3.08% 309 2.28%
Other taxes payables -29 0.19% -439 3.24%
Cash generated from operations 23,132 153.44% 17,919 132.12%
Interest paid -3,753 24.89% -1,708 12.59%
Income taxes paid -4,467 29.63% -4,187 30.87%
Net cash flows provided by operating activities 14,912 98.91% 12,024 88.65%
 %
  2010 Change 2009 % Change
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of property, plant and equipment -956 6.34% -626 4.62%
Proceeds from sale of property and equipment
and investment property 13 0.09% 5 0.04%
109.21
Acquisition of subsidiaries, net of cash received -16,464 % -32,000 235.94%
Increase in intangible assets and other
noncurrent assets -1,033 6.85% -1,559 11.49%
Interest received 694 4.60% 535 3.94%
117.71
Net cash flows used in investing activities -17,746 % -33,645 248.06%
CASH FLOWS FROM FINANCING ACTIVITIES
Payments of short-term borrowings, net of
Availments -27 0.18% - 0.00%
Proceeds from long-term debt 13,469 89.34% 38,356 282.80%
Proceeds from issuances of capital stock - - - -
Dividends paid to non-controlling shareholders -300 1.99% - 0.00%
Increase (decrease) in other noncurrent
Liabilities -83 0.55% -39 0.29%
Cash dividends paid -8,475 56.22% -9,170 67.61%
Net cash flows provided by (used in) financing
Activities 4,584 30.41% 29,147 214.90%
EFFECT OF EXCHANGE RATE CHANGES ON CASH
AND CASH EQUIVALENTS -237 1.57% -4 0.03%
NET INCREASE IN CASH AND CASH
EQUIVALENTS 1,513 10.04% 7,522 55.46%
CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 13,563 89.96% 6,041 44.54%
CASH AND CASH EQUIVALENTS AT END OF 100.00
YEAR 15,076 % 13,563 100.00%
Ratio Analysis

A. Test of Liquidity

Formula 2010 2009

Current Assets
a. Current Ratio Current Liabilities 2.25 3.61

b. Acid Test (Quick Ratio) Quick Assets 1.81 2.93

Current Liabilities
Cost of Sales
c. Inventory Turnover Ave. Inventory 10.14 8.05

360 days
d. Inventory days Inventory Turnover 35.5 44.72

e. Net working Capital Current Assets – Current 13408 15017

Liabilities
f. Assets Turnover Net Sales 0.89 1.15
Ave. Total Assets
 B. Test of Solvency

Formula 2010 2009

Total Liabilities
a. Debt-Equity Ratio Total SHE 2.51 to 1 2.22 to 1

Total interest-bearing debt

b. Interest-bearing debt ratio Equity 2.16 to 1 1.93 to 1

Total liabilities
c. Debt Ratio Total Assets 0.72 to 1 0.69 to 1

Total SHE
d. Equity Ratio Total Assets 0.28 to 1 0.31 to 1

e. Times Interest earned EBIT

Interest Exp. 4.83 6.36
\

B. Test of Profitability

Formula 2010 2009

Net Income
a. Return on Sales Net Sales 0.15% 0.20%

Gross Profit
b. Gross Profit Ratio Net Sales 0.49% 0.49%

Net Income+interest expense,

c. Return on total Assets net of tax 0.13% 0.20%

Ave. Total Assets

Net Income
d. Return on SHE Ave. SHE 0.46% 0.52%
Trend Analysis

*base=2007 Amount (In Millions) % change

2010 2009 2008 2007 2010 2009 2008 2007

Net Sales 67575 51009 48787 12180 554% 419% 401% 100%

Cost of Sales 34505 26261 24800 6333 545% 415% 392% 100%

Gross Profit 33070 24748 23987 5847 566% 423% 420% 100%