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 • To delight our Customers with high quality
• To be an integral part of our customers’
fuels, lubricants & specialties, and best-in-
lives, delivering consistent customer
class technical and convenience services.
experience through innovative products
• To attract and retain the best Employees
and services;
through very competitive remuneration
• To develop strategic partnerships in pursuits
and growth opportunities.
of growth and opportunity;
• To engage the most professional Business
• To leverage our refining assets to achieve
Partners in long-term and mutually-
competitive advantage;
beneficial relationships.
• To foster an entrepreneurial culture that
• To partner with Government and
encourages teamwork, innovation and
Communities in promoting social
excellence;
investments and advocacies that
• To care for the community and the
contribute to national development.
environment;
• To deliver consistent, attractive and
• To conduct ourselves with professionalism,
increasing returns for our Shareholders
integrity and fairness;
through operational excellence, superior
• To promote the best interest of all our
value propositions and strong corporate
stakeholders.
governance.
Petron Corporation
Brief History

1933 1940
Petron Corporation
Brief History

1961 1964
Petron Corporation
Brief History

1973 1988
Petron Corporation
Brief History

1994 1998
Petron Corporation
Brief History

2009 2012
Petron Corporation
Brief History

2018
 Pilipinas Shell
Petroleum Corporation
Brief History

1959 1960
 Pilipinas Shell
Petroleum Corporation
Brief History

1962 1982
 Pilipinas Shell
Petroleum Corporation
Brief History

1993 1995
 Pilipinas Shell
Petroleum Corporation
Brief History

1999 2003
 Pilipinas Shell
Petroleum Corporation
Brief History

2008 2012
 Pilipinas Shell
Petroleum Corporation
Brief History

2014 2015
 Pilipinas Shell
Petroleum Corporation
Brief History

2016
Financial Statement Analysis
 Financial Statements
 Petron Corporation
 Pilipinas Shell Petroleum Corporation
 Horizontal Analysis
 Vertical Analysis
 Ratio Analysis
 Shell

Petron

0 2,000 4,000 6,000 8,000 10,000 12,000

Petron Shell
2017 8,715 10,386
2016 6,293 7,444
2015 2,001 3553
Total Assets

270,000280,000290,000300,000310,000320,000330,000340,000350,000
Total Assets
2017 338,030
2016 318,893
2015 294,267
Total Assets

0 20,000 40,000 60,000 80,000 100,000

Total Assets
2017 81,877
2016 70,609
2015 67,628
Petron Corporation
Comparative Income Statement (Horizontal Analysis)
For the years ended December 31, 2016 and 2015

in millions
Change % Change
Sales/Revenue (16,338.00) (4.54)
Cost of Goods Sold (COGS) incl. D&A (22,527.00) (6.79)
COGS excluding D&A (25,742.00) (7.90)
Depreciation & Amortization Expense 3,215.00 52.28
Depreciation 3,286.00 56.04
Amortization of Intangibles (71.00) (24.91)
Gross Income 6,189.00 21.86
SG&A Expense 433.00 3.91
Research & Development 1.00 1.54
Other SG&A 432.00 3.93
Other Operating Expense 101.00 32.17
EBIT 5,655.00 33.39
Unusual Expense 1,245.00 (75.68)
Non Operating Income/Expense 2,313.00 (57.70)
Non-Operating Interest Income (179.00) (26.09)
Equity in Affiliates (Pretax)
Interest Expense 2,024.00 37.02
Gross Interest Expense (890.00) (10.62)
Interest Capitalized -
Pretax Income 4,520.00 46.16
Income Tax (99.00) (2.71)
Income Tax - Current Domestic 1,841.00 127.14
Income Tax - Deferred Domestic (1,940.00) (87.90)
Equity in Affiliates (67.00) (50.38)
Other After Tax Income (Expense) (200.00) 5.54
Consolidated Net Income 4,352.00 163.42
Minority Interest Expense 70.00 10.74
Pilipinas Shell Petroleum Corporation
Comparative Income Statement (Horizontal Analysis)
For the years ended December 31, 2016 and 2015
in millions
Change % Change
Sales/Revenue (20,215.00) (12.88)
Cost of Goods Sold (COGS) incl. D&A (27,368.00) (19.44)
COGS excluding D&A (27,462.00) (19.73)
Depreciation & Amortization Expense 94.00 5.90
Depreciation -
Amortization of Intangibles -
Gross Income 7,154.00 44.10
SG&A Expense 2,586.00 27.30
Other SG&A 2,586.00 27.30
Other Operating Expense -
EBIT 4,611.00 68.76
Unusual Expense (372.00) (375.76)
Non Operating Income/Expense 85.00 (22.97)
Non-Operating Interest Income (25.00) (96.15)
Interest Expense (561.00) (53.94)
Gross Interest Expense (561.00) (53.94)
Pretax Income 5,605.00 107.31
Income Tax 1,714.00 102.63
Income Tax - Current Domestic 767.00 710.19
Income Tax - Deferred Domestic 947.00 60.63
Consolidated Net Income 3,891.00 109.51
Net Income 3,891.00 109.51
Petron Corporation
Comparative Income Statement (Horizontal Analysis)
For the years ended December 31, 2017 and 2016

in millions
Change % Change
Sales/Revenue 90,784.00 26.40
Cost of Goods Sold (COGS) incl. D&A 85,555.00 27.66
COGS excluding D&A 83,954.00 27.99
Depreciation & Amortization Expense 1,601.00 17.10
Depreciation 1,677.00 18.33
Amortization of Intangibles (76.00) (35.51)
Gross Income 5,229.00 15.15
SG&A Expense 1,959.00 17.04
Research & Development 10.00 15.15
Other SG&A 1,949.00 17.05
Other Operating Expense -
EBIT 3,685.00 16.31
Unusual Expense 2,487.00 (621.75)
Non Operating Income/Expense 4,055.00 (239.09)
Non-Operating Interest Income 28.00 5.52
Equity in Affiliates (Pretax)
Interest Expense 814.00 10.87
Gross Interest Expense 814.00 10.87
Interest Capitalized
Pretax Income 4,530.00 31.65
Income Tax 1,199.00 33.72
Income Tax - Current Domestic (535.00) (16.27)
Income Tax - Deferred Domestic 1,734.00 649.44
Equity in Affiliates -
Other After Tax Income (Expense) (217.00) 5.70
Consolidated Net Income 3,048.00 43.45
Minority Interest Expense 626.00 86.70
Pilipinas Shell Petroleum Corporation
Comparative Income Statement (Horizontal Analysis)
For the years ended December 31, 2017 and 2016

in millions
Change % Change
Sales/Revenue 32,713.00 23.92
Cost of Goods Sold (COGS) incl. D&A 30,724.00 27.10
COGS excluding D&A 30,578.00 27.38
Depreciation & Amortization Expense 146.00 8.65
Depreciation
Amortization of Intangibles
Gross Income 1,988.00 8.50
SG&A Expense 635.00 5.27
Other SG&A 635.00 5.27
Other Operating Expense
EBIT 1,354.00 11.96
Unusual Expense (1,109.00) 406.23
Non Operating Income/Expense 484.00 (169.82)
Non-Operating Interest Income 5.00 500.00
Interest Expense 20.00 4.18
Gross Interest Expense 20.00 4.18
Pretax Income 2,932.00 27.08
Income Tax 8.00 0.24
Income Tax - Current Domestic 2,617.00 299.09
Income Tax - Deferred Domestic (2,609.00) (103.99)
Consolidated Net Income 2,924.00 39.28
Net Income 2,924.00 39.28
Income Statement
Comparative Horizontal Analysis

For the years ended

2016 and 2015 2017 and 2016
December 31,
% Change % Change
PETRON SHELL PETRON SHELL
Sales/Revenue (4.54) -12.88 26.4 23.92
Cost of Goods Sold (6.79) -19.44 27.66 27.1
Gross Income 21.86 44.1 15.15 8.5
SG&A Expense 3.91 27.3 17.04 5.27
EBIT 33.39 68.76 16.31 11.96
Unusual Expense (75.68) -375.76 -621.75 406.23
Non-Operating
Income/Expense (57.70) -22.97 -239.09 -169.82
Non-Operating Interest
Income (26.09) -96.15 5.52 500
Interest Expense 37.02 -53.94 10.87 4.18
Pretax Income 46.16 107.31 31.65 27.08
Income Tax (2.71) 102.63 33.72 0.24
Other After Tax Income
(Expense) 5.54 5.7
Consolidated Net Income 163.42 109.51 43.45 39.28
Minority Interest Expense 10.74 86.7
Net Income 212.93 109.51 38.49 39.28
Statement of Financial Position
Comparative Horizontal Analysis

As of December 31, 2015 and 2016 2016 and 2017

% Change % Change
PETRON SHELL PETRON SHELL

ASSETS
Cash & Short Term Investments (10.19) 25.67 (0.43) 43.48
Accounts Receivable (12.34) -21.35 34.14 3.18
Inventories 43.23 44.34 28.22 32.29
Other Current Assets 18.2 2.33 (21.07) -20.04
Total Current Assets 8.72 6.7 15.64 17.79
Property, Plant & Equipment 9.29 4.79 0.61 8.79
Investments and Advances 2.94 11.08 (82.91) 8.66
Long-Term Note Receivable -89.78 2,696.52 11.22 -
Intangible Assets -5.41 28.87 7.68 577.78
Other Assets 48.52 25.75 -6.01 53.92
Total Assets 8.37 4.41 6.00 15.96

LIABILITIES & SHAREHOLDER'S

EQUITY
ST Debt & Current Portion LT Debt 11.08 97.64 -34.06 87.28
Accounts Payable 71.19 4.9 21.89 36.3
Income Tax Payable 242.08 82.76 29.07 13.21
Other Current Liabilities 79.75 4.94 5.7 -2.71
Total Current Liabilities 25.46 18.61 -21.61 39.44
Long-Term Debt -17.82 -31.25 66.13 -54.55
Provision for Risks & Charges -22.94 -8.04 34.17 -44.71
Deferred Taxes 24.96 -90.96 29.97 -312.73
Other Liabilities 5.85 -46.59 8.13 14.25
Total Liabilities 8.95 -9.27 3.62 5.47
Common Equity 2.25 26.19 10.85 27.96
Retained Earnings 61.46 2,708.79 26.56 180.5
Total Equity 6.88 26.19 12.16 27.96
Petron Corporation
Comparative Income Statement (Vertical Analysis)

in millions
For the year ended
2015 2016 2017
December 31,
Change % Change Change % Change Change % Change
Sales/Revenue 360,178.00 100.00 343,840.00 100.00 434,624.00 100.00
Cost of Goods Sold (COGS) incl. D&A 331,863.00 92.14 309,336.00 89.97 394,891.00 90.86
COGS excluding D&A 325,714.00 90.43 299,972.00 87.24 383,926.00 88.34
Depreciation & Amortization
Expense 6,149.00 1.71 9,364.00 2.72 10,965.00 2.52
Depreciation 5,864.00 1.63 9,150.00 2.66 10,827.00 2.49
Amortization of Intangibles 285.00 0.08 214.00 0.06 138.00 0.03
Gross Income 28,315.00 7.86 34,504.00 10.03 39,733.00 9.14
SG&A Expense 11,064.00 3.07 11,497.00 3.34 13,456.00 3.10
Research & Development 65.00 0.02 66.00 0.02 76.00 0.02
Other SG&A 10,999.00 3.05 11,431.00 3.32 13,380.00 3.08
Other Operating Expense 314.00 0.09 415.00 0.12 -
EBIT 16,937.00 4.70 22,592.00 6.57 26,277.00 6.05
Unusual Expense (1,645.00) (0.46) (400.00) (0.12) 2,087.00 0.48
Non Operating Income/Expense (4,009.00) (1.11) (1,696.00) (0.49) 2,359.00 0.54
Non-Operating Interest Income 686.00 0.19 507.00 0.15 535.00 0.12
Equity in Affiliates (Pretax) - - 63.00 0.01
Interest Expense 5,467.00 1.52 7,491.00 2.18 8,305.00 1.91
Gross Interest Expense 8,381.00 2.33 7,491.00 2.18 8,305.00 1.91
Interest Capitalized 2,914.00 0.81 - - -
Pretax Income 9,792.00 2.72 14,312.00 4.16 18,842.00 4.34
Income Tax 3,655.00 1.01 3,556.00 1.03 4,755.00 1.09
Income Tax - Current 1,448.00 0.40 3,289.00 0.96 2,754.00 0.63
Income Tax - Deferred 2,207.00 0.61 267.00 0.08 2,001.00 0.46
Equity in Affiliates 133.00 0.04 66.00 0.02 -
Other After Tax Income (Expense) (3,607.00) (1.00) (3,807.00) (1.11) (4,024.00) (0.93)
Consolidated Net Income 2,663.00 0.74 7,015.00 2.04 10,063.00 2.32
Minority Interest Expense 652.00 0.18 722.00 0.21 1,348.00 0.31
Pilipinas Shell Petroleum Corporation
Comparative Income Statement (Vertical Analysis)

in millions
For the years ended
2015 2016 2017
December 31,
Change % Change Change % Change Change % Change
Sales/Revenue 156,978.00 100.00 136,763.00 100.00 169,476.00 100.00
Cost of Goods Sold (COGS) incl.
D&A 140,755.00 89.67 113,387.00 82.91 144,111.00 85.03
COGS excluding D&A 139,161.00 88.65 111,699.00 81.67 142,277.00 83.95
Depreciation & Amortization
Expense 1,594.00 1.02 1,688.00 1.23 1,834.00 1.08
Depreciation 1,590.00 1.01 - -
Amortization of
Intangibles 4.00 0.00 - -
Gross Income 16,223.00 10.33 23,377.00 17.09 25,365.00 14.97
SG&A Expense 9,473.00 6.03 12,059.00 8.82 12,694.00 7.49
Other SG&A 9,473.00 6.03 12,059.00 8.82 12,694.00 7.49
Other Operating Expense 44.00 0.03 - -
EBIT 6,706.00 4.27 11,317.00 8.27 12,671.00 7.48
Unusual Expense 99.00 0.06 (273.00) (0.20) (1,382.00) (0.82)
Non Operating Income/Expense (370.00) (0.24) (285.00) (0.21) 199.00 0.12
Non-Operating Interest Income 26.00 0.02 1.00 0.00 6.00 0.00
Interest Expense 1,040.00 0.66 479.00 0.35 499.00 0.29
Gross Interest Expense 1,040.00 0.66 479.00 0.35 499.00 0.29
Pretax Income 5,223.00 3.33 10,828.00 7.92 13,760.00 8.12
Income Tax 1,670.00 1.06 3,384.00 2.47 3,392.00 2.00
Income Tax - Current Domestic 108.00 0.07 875.00 0.64 3,492.00 2.06
Income Tax - Deferred Domestic 1,562.00 1.00 2,509.00 1.83 (100.00) (0.06)
Consolidated Net Income 3,553.00 2.26 7,444.00 5.44 10,368.00 6.12
Net Income 3,553.00 2.26 7,444.00 5.44 10,368.00 6.12
Income Statement
Comparative Vertical Analysis

For the years ended

2015 2016 2017
December 31,
% Change
PETRON SHELL PETRON SHELL PETRON SHELL
Sales/Revenue 100.00 100 100.00 100 100.00 100
Cost of Goods Sold 92.14 89.67 89.97 82.91 90.86 85.03
Gross Income 7.86 10.33 10.03 17.09 9.14 14.97
SG&A Expense 3.07 6.03 3.34 8.82 3.10 7.49
EBIT 4.70 4.27 6.57 8.27 6.05 7.48
Unusual Expense (0.46) 0.06 (0.12) -0.2 0.48 -0.82
Non Operating
Income/Expense (1.11) -0.24 (0.49) -0.21 0.54 0.12
Non-Operating Interest
Income 0.19 0.02 0.15 0 0.12 0
Interest Expense 1.52 0.66 2.18 0.35 1.91 0.29
Pretax Income 2.72 3.33 4.16 7.92 4.34 8.12
Income Tax 1.01 1.06 1.03 2.47 1.09 2
Consolidated Net Income 0.74 2.26 2.04 5.44 2.32 6.12
Minority Interest Expense 0.18 0.21 0.31
Net Income 0.56 2.26 1.83 5.44 2.01 6.12
Statement of Financial Position
Comparative Vertical Analysis

in millions
As of December 31, 2015 2016 2017
% Change
PETRON SHELL PETRON SHELL PETRON SHELL
ASSETS
Cash & Short Term Investments 6.67 5.29 5.53 6.37 5.19 7.88
Accounts Receivable 14.59 25.16 11.8 18.95 14.94 16.86
Inventories 10.47 16.78 13.84 23.2 16.75 26.47
Other Current Assets 7.59 6.03 8.28 5.91 6.17 4.07
Total Current Assets 39.33 53.26 39.45 54.43 43.04 55.29
Property, Plant & Equipment 54.92 32.99 55.38 33.11 52.57 31.06
Investments and Advances 0.79 0.51 0.75 0.54 0.12 0.51
Long-Term Note Receivable 0.68 0.17 0.06 4.55 0.07 3.93
Intangible Assets 2.99 0.01 2.61 0.01 2.65 0.07
Other Assets 1.23 5.58 1.68 6.88 1.49 9.14
100 100 100 100 100 100
Total Assets

LIABILITIES & SHAREHOLDER'S

EQUITY
ST Debt & Current Portion LT Debt 34.04 4.02 34.89 7.61 21.71 12.28
Accounts Payable 0.9 16.56 1.43 16.64 1.64 19.56
Income Tax Payable 0.06 0.13 0.2 0.23 0.24 0.22
Other Current Liabilities 8.01 7.22 13.28 7.26 13.25 6.09
Total Current Liabilities 43.02 27.93 49.8 31.73 36.83 38.15
Long-Term Debt 24.37 23.66 18.48 15.58 28.97 6.11
Provision for Risks & Charges 2.49 5.69 1.77 5.01 2.24 2.39
Deferred Taxes 1.5 -5.4 1.73 -0.47 2.13 0.86
Other Liabilities 0.31 2.06 0.3 1.05 0.31 1.04
Total Liabilities 71.76 61.41 72.15 53.37 70.53 48.54
Common Equity 28.08 38.59 26.49 46.63 27.7 51.46
Retained Earnings 5.65 0.27 8.42 7.24 10.05 17.51
Total Equity 28.24 38.59 27.85 46.63 29.47 51.46
LIQUIDITY
PETRON SHELL
Current Ratio 145490 45270
Current Assets =1.17 =1.45
124495 31235
Current Liabilities
Acid Test Ratio 6163+291+13808
=0.65
Cash + Marketable Securities + AR 17014 + 535 + 50497
= 𝟎. 𝟓𝟓 31235
Current Liabilities 1244995

Collection Period (13808+133821)/2

(50497 + 37645)/2
Average Accounts Receivable
= 𝟒𝟎 𝐝𝐚𝐲𝐬 =34 days
Cost of sales/360 394891/360 144111/360

Days to sell inventory (56604+44147)/2

Average Inventory = 46 days (21671 + 16381)/2
= 𝟒𝟕 𝐝𝐚𝐲𝐬
394891/360
144111/360
Cost of sales/360
CAPITAL STRUCTURE &SOLVENCY
PETRON SHELL
Total Debt to Equity 238411 39742
Total Liabilities = 𝟐. 𝟓𝟓 =0.94
93655 42135
Total Equity
Long-term debt to Equity
Long − term Liabilities 113916 8507
Total Equity
=1.22 =0.20
93655 42135

Times Interest Earned

EBIT 262777 12671
=3.16 = 25.39
Interest Expense 8305 499
RETURN ON INVESTMENT
PETRON SHELL
Return on Assets 8715 + 8305 x70%
(Net Income+Interest Expense) x100 = 𝟑. 𝟔𝟑% 10368 + 499 x70%
(338030 + 318895)/2 x100 = 𝟗. 𝟗𝟖%
(81877 + 70609)/2
x(1−tax %)
Average Total Asset
x100

Return on Equity
Net Income 10368
x100 8715
𝑥100 = 𝟗. 𝟕𝟖% (42135 + 32928)/2
𝑥 100 = 𝟐𝟕. 𝟔𝟐%
Average Equity (93655 + 84491)/2
OPERATING PERFORMANCE
PETRON SHELL
Gross Profit Margin
39733 25365
Sales
x100
Gross Profit
434624
x100 = 𝟗. 𝟏𝟒%
164476
x100 = 𝟏𝟒. 𝟗𝟕%

Net Profit Margin

Net Income 10368
x100 8715
𝑥100 = 𝟐. 𝟎𝟏% 164476
𝑥100 = 𝟔. 𝟏𝟐%
Sales 434624
ASSET UTILIZATION
PETRON SHELL
Cash Turnover 434624 169476
Sales = 𝟐𝟒. 𝟕𝟏 = 𝟑𝟎. 𝟗𝟒
(17549 + 17624)/2 (6455 + 4499)/2
Average Cash

Accounts Receivable Turnover 434624 169476

Sales = 9.86 =12.47
(50497+37645)/2 (13808+13382)/2
Average Accounts Receivable

Inventory Turnover 2248.4 144111

Cost of Sales = 𝟓. 𝟎𝟐 =7.57
(56604 + 44147)/2 (21671+16381)/2
Average Inventory

Working Capital Turnover 434624 169476

Sales
=16.10 =15.37
(20995+32990)/2 (14035+8016.5)/2
Average Working Capital

PPE Turnover 434624 169476

=2.45 =6.94
Sales (177690+176604)/2 (25434+23378)/2
Average PPE
Total Assets Turnover 434624 169476
=1.32 =2.22
Sales (338030+318893)/2 (81877+70609)/2
Average Total Assets
MARKET MEASURES
PETRON SHELL
Price to Earnings 4.5
Market Price per Share =5.23 5
0.86 =0.79
6.43
Earnings per Share
Earnings Yield
0.86 6.43
Earnings per Share = 𝟏𝟗. 𝟏𝟏 =1.29
4.5 5
Market Price per Share
Dividend Yield
0.31
Dividend per Share 0.07
4.5
= 1.6 5
=0.06
Market Price per Share
Dividend Payout Rate 0.07
Dividend per Share = 𝟖. 𝟏𝟒 0.31
0.86 =4.8
Earnings per Share 6.43

Price to Book 4.5 5

Market Price per Share =3 =𝟓
1.5
1
• As shown on the statement of financial position,
the percentage of increase of total current assets
of Shell(17.79%) is higher than that of
Petron(15.64%). But in terms of change in total
current liabilities, Petron’s percentage of change
decrease to 21.61% while Shell increase to
39.44%. This means that Petron paid its
currently maturing obligation better than Shell
because of the decrease in current liabilities.
• Petron’s sales increased by 26.4% while cost of
goods sold increased by 27.66% while Shell’s
sales increased by 23.92% and cost of goods sold
increased by 27.1%. Petron is more favourable
than Shell because of the increase in gross profit
rate of 15.15% compared to 8.5% of Shell.
• On an overall basis, operating performance of
Shell is better than that of Petron because of the
increase in net income of 39.28% compared to
38.49 of Petron.
• Petron Corporation performs better in terms of
return on sales on 2016 than that of Pilipinas
Shell Petroleum Corporation. But 0n 2017, Shell
performs better than Petron.
• Shell is more efficient in controlling its cost
thereby reporting a higher gross profit rate of
14.97% compared to Petron with only 9.14%
• Shell is weak in controlling its general and
administrative expenses accounting for a 7.49%
share of net sales compared to Petron’s minimal
3.10% spending to general and administrative
expenses.
• Both corporation’s share of cost of goods sold is
devastatingly high. Much effort must be given to
reduce cost of goods sold and improve return on
sales.
• Shell Corporation uses leverage to its impressive
operating advantage by incurring a minimal
interest expense of 0.29% of net sales which
indicates lower financial risk and higher rate of
return compared to Petron which has 1.91% of
interest expense.
• Liquidity – Shell’s current and quick ratio is
better than that of Petron which indicates an
improving financial position. Average collection
period of Shell is shorter which means it can
collect payments easily than that of Petron. But
in terms of days in selling the inventory, Petron
has 46 days and Shell has 47 days which means
the former sells inventory faster and more
profits are generated.
• Capital Structure & Solvency– Petron has a
riskier capital structure because of the high debt
to equity ratio of 2.55 compared to Shell with
0.94. Similar with the long term debt to equity
which Petron is still higher than Shell. Shell has
a better ability to provide protection to its long
term creditors with a 25.39 times of times
interest earned ratio compared to Petron with a
3.16 times.
• Return on Investment – Shell has a higher
ratio in ROA and ROE compared to Petron
which means the former can generate profits
from its investment and management strategies.
• Operating Performance – Shell still has a
higher gross profit and net profit margin of
14.97% and 6.12% compared to Petron which has
9.14% and 2.01%, respectively.
• On an overall basis, Pilipinas Shell Petroleum
Corporation performs better for the past three
years compared to Petron Corporation.