Horizontal Analysis

ROBINSONS RETAIL HOLDINGS, INC. AND SUBISDIARIES

CONSILDATED STATEMENTS OF FINANCIAL POSITION

Increase (Decrease)
ASSETS 2018 2017 Amount Percent
Current Assets
Cash and cash equivalents 14,788,040,613 14,565,037,906 223,002,707 1.53%
Trade and other receivables 3,171,595,504 2,234,616,952 936,978,552 41.93%
Merchandise Inventories 18,628,013,928 14,846,561,020 3,781,452,908 25.47%
Other Current Assets 3,159,661,090 2,423,694,783 735,966,307 30.37%
Total Current Assets 39,747,311,135 34,069,910,661 5,677,400,474 16.66%
Noncurrent Assets
Debt and equity financial assets 19,751,466,722 20,667,367,094 (915,900,372) -4.43%
Property and Equipment 19,269,212,908 13,601,389,023 5,667,823,885 41.67%
Investment in associates 6,814,297,383 5,271,532,196 1,542,765,187 29.27%
Intangible assets 19,106,289,393 6,657,229,873 12,449,059,520 187.00%
Deferred tax assets - net 413,459,629 355,166,249 58,293,380 16.41%
Retirement plan asset 91,253,643 - 91,253,643 -
Other noncurrent assets 2,583,816,381 1,558,131,736 1,025,684,645 65.83%
Total Non Current Assets 68,029,796,059 48,110,816,171 19,918,979,888 41.40%
107,777,107,194 82,180,726,832 25,596,380,362 31.15%

LIABILITIES AND EQUITY

Current Liabilities
Trade and other payables 24,577,110,455 17,774,234,982 6,802,875,473 38.27%
Short-term loans payable 6,794,000,000 6,377,954,863 416,045,137 6.52%
Incomte tax payable 837,681,888 964,306,126 (126,624,238) -13.13%
Other Current Liabilities 279,844,005 240,007,838 39,836,167 16.60%
Total Current Liabilities 32,488,636,348 25,356,503,809 7,132,132,539 28.13%
Noncurrent Liabilities
Deferred tax liabilities - net 1,954,819,590 1,011,395,772 943,423,818 93.28%
Retirement obligation 325,461,329 546,188,167 (220,726,838) -40.41%
Other noncurrent liabilities 304,021,928 - 304,021,928 -
Total Noncurrent Liabilities 2,584,302,847 1,557,583,939 1,026,718,908 65.92%
Total Liabilities 35,072,939,195 26,914,087,748 8,158,851,447 30.31%
Equity
Capital Stock 1,576,489,360 1,385,000,000 191,489,360 13.83%
Additional paid-in capital 40,768,202,897 27,227,385,090 13,540,817,807 49.73%
Other comprehensive income (loss) (563,817,037) 289,698,663 (853,515,700) -294.62%
Equity reserve (970,435,361) (1,021,894,669) 51,459,308 -5.04%
Reained earnings
Appropriated 24,151,852,847 15,212,852,847 8,939,000,000 58.76%
Unappropriated 3,558,435,683 8,440,230,328 (4,881,794,645) -57.84%
Total equity attributable to equity holder of the Parent Company 68,520,728,389 51,533,272,259 16,987,456,130 32.96%
Non-controlling interest in consolidated subsidiaries 4,183,439,610 3,733,366,825 450,072,785 12.06%
Total Equity 72,704,167,999 55,266,639,084 17,437,528,915 31.55%
107,777,107,194 82,180,726,832 17,887,601,700 21.77%

ROBINSONS RETAIL HOLDINGS, INC. AND SUBISDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31 Increase (Decrease)

2018 2017 Amount Percent
SALES- net of sales discounts and returns 132,680,466,776 115,238,459,529 17,442,007,247 15.14%
COST OF MERCHANDISE SOLD 102,845,384,354 89,446,079,938 13,399,304,416 14.98%
GROSS PROFIT 29,835,082,422 25,792,379,591 4,042,702,831 15.67%
ROYALTY, RENT AND OTHER REVENUE 2,422,278,306 2,262,158,547 160,119,759 7.08%
GROSS PROFIT INCLUDING OTHER REVENUE 32,257,360,728 28,054,538,138 4,202,822,590 14.98%
OPERATING EXPENSES (25,631,402,164) (21,749,155,955) (3,882,246,209) 17.85%
OTHER INCOME (CHARGES)
Interest Income 981,862,604 873,425,105 108,437,499 12.42%
Foreign currency exchange gain - net 200,867,038 16,104,012 184,763,026 1147.31%
Dividend income 111,500,000 111,500,000 - 0.00%
Equity in net earnings in associates 108,739,236 123,639,511 (14,900,275) -12.05%
Interest Expense (159,071,734) (127,384,471) (31,687,263) 24.88%
Others (272,614,314) - (272,614,314) -
 971,282,830 997,284,157 (26,001,327) -2.61%
INCOME BEFORE INCOME TAX 7,597,241,394 7,302,666,340 294,575,054 4.03%
PROVISION FOR INCOME TAX
Current 1,807,600,901 1,785,241,581 22,359,320 1.25%
Deferred (35,573,353) (81,928,619) 46,355,266 -56.58%
1,772,027,548 1,703,312,962 68,714,586 4.03%
NET INCOME 5,825,213,846 5,599,353,378 225,860,468 4.03%
Vertical Analysis

ROBINSONS RETAIL HOLDINGS, INC. AND SUBISDIARIES

CONSILDATED STATEMENTS OF FINANCIAL POSITION

Percentage
ASSETS 2018 2017 2018 2017
Current Assets
Cash and cash equivalents 14,788,040,613 14,565,037,906 13.72% 17.72%
Trade and other receivables 3,171,595,504 2,234,616,952 2.94% 2.72%
Merchandise Inventories 18,628,013,928 14,846,561,020 17.28% 18.07%
Other Current Assets 3,159,661,090 2,423,694,783 2.93% 2.95%
Total Current Assets 39,747,311,135 34,069,910,661 36.88% 41.46%
Noncurrent Assets
Debt and equity financial assets 19,751,466,722 20,667,367,094 18.33% 25.15%
Property and Equipment 19,269,212,908 13,601,389,023 17.88% 16.55%
Investment in associates 6,814,297,383 5,271,532,196 6.32% 6.41%
Intangible assets 19,106,289,393 6,657,229,873 17.73% 8.10%
Deferred tax assets - net 413,459,629 355,166,249 0.38% 0.43%
Retirement plan asset 91,253,643 - 0.08% 0.00%
Other noncurrent assets 2,583,816,381 1,558,131,736 2.40% 1.90%
Total Non Current Assets 68,029,796,059 48,110,816,171 63.12% 58.54%
107,777,107,194 82,180,726,832 100.00% 100.00%

LIABILITIES AND EQUITY

Current Liabilities
Trade and other payables 24,577,110,455 17,774,234,982 22.80% 22%
Short-term loans payable 6,794,000,000 6,377,954,863 6.30% 8%
Incomte tax payable 837,681,888 964,306,126 0.78% 1%
Other Current Liabilities 279,844,005 240,007,838 0.26% 0%
Total Current Liabilities 32,488,636,348 25,356,503,809 30.14% 31%
Noncurrent Liabilities
Deferred tax liabilities - net 1,954,819,590 1,011,395,772 1.81% 1%
Retirement obligation 325,461,329 546,188,167 0.30% 1%
Other noncurrent liabilities 304,021,928 - 0.28% 0%
Total Noncurrent Liabilities 2,584,302,847 1,557,583,939 2.40% 2%
Total Liabilities 35,072,939,195 26,914,087,748 32.54% 33%
Equity
Capital Stock 1,576,489,360 1,385,000,000 1.46% 2%
Additional paid-in capital 40,768,202,897 27,227,385,090 37.83% 33%
Other comprehensive income (loss) (563,817,037) 289,698,663 -0.52% 0%
Equity reserve (970,435,361) (1,021,894,669) -0.90% -1%
Reained earnings
Appropriated 24,151,852,847 15,212,852,847 22.41% 19%
Unappropriated 3,558,435,683 8,440,230,328 3.30% 10%
Total equity attributable to equity holder of the Parent Company 68,520,728,389 51,533,272,259 63.58% 63%
Non-controlling interest in consolidated subsidiaries 4,183,439,610 3,733,366,825 3.88% 5%
Total Equity 72,704,167,999 55,266,639,084 67.46% 67%
107,777,107,194 82,180,726,832 100% 100%

ROBINSONS RETAIL HOLDINGS, INC. AND SUBISDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

Years Ended December 31 Percentage

2018 2017 2018 2017
SALES- net of sales discounts and returns 132,680,466,776 115,238,459,529 100.00% 100.00%
COST OF MERCHANDISE SOLD 102,845,384,354 89,446,079,938 77.51% 77.62%
GROSS PROFIT 29,835,082,422 25,792,379,591 22.49% 22.38%
ROYALTY, RENT AND OTHER REVENUE 2,422,278,306 2,262,158,547 1.83% 1.96%
GROSS PROFIT INCLUDING OTHER REVENUE 32,257,360,728 28,054,538,138 24.31% 24.34%
OPERATING EXPENSES (25,631,402,164) (21,749,155,955) -19.32% -18.87%
OTHER INCOME (CHARGES)
Interest Income 981,862,604 873,425,105 0.74% 0.76%
Foreign currency exchange gain - net 200,867,038 16,104,012 0.15% 0.01%
Dividend income 111,500,000 111,500,000 0.08% 0.10%
Equity in net earnings in associates 108,739,236 123,639,511 0.08% 0.11%
Interest Expense (159,071,734) (127,384,471) -0.12% -0.11%
Others (272,614,314) - -0.21% 0.00%
 971,282,830 997,284,157 0.73% 0.87%
INCOME BEFORE INCOME TAX 7,597,241,394 7,302,666,340 5.73% 6.34%
PROVISION FOR INCOME TAX
Current 1,807,600,901 1,785,241,581 1.36% 1.55%
Deferred (35,573,353) (81,928,619) -0.03% -0.07%
1,772,027,548 1,703,312,962 1.34% 1.48%
NET INCOME 5,825,213,846 5,599,353,378 4.39% 4.86%
 2018 Profitability Ratios
29,835,082,422.00
Gross Profit Margin Gross Profit/ Sales 22.49%
132,680,466,776.00
4,203,680,258.00
Operating Profit Margin Operating Profit/Sales 3.17%
132,680,466,776.00
5,825,213,846.00
Net Profit Margin Net Profit/Sales 4.39%
132,680,466,776.00
Operating Profit/ Average Total 4,203,680,258.00
Return on Assets 4.43%
Assets 94,978,917,013.00
5,825,213,846.00
Return on Equity Net Profit/ Average Total Equity 9.10%
63,985,403,541.50

2018 Efficiency Ratios

Cost of Goods Sold / Average 102,845,384,354.00
Inventory Turnover (ITO) 6 Times
Inventory 16,737,287,474.00
Average Age of Inventory 365
365 Days / ITO 61 Days
(AAI) 6
Fixed Asset Turnover Net Sales / Average Total Fixed 132,680,466,776
2.28
(FATO) Assets 58,070,306,115
Total Asset Turnover Net Sales / Average Total Fixed 132,680,466,776
1.40
(TATO) Assets 94,978,917,013
*Data on credit sales not available

2018 Liquidity Ratios

39,747,311,135.00
Current Ratio Current Assets / Current Liabilities 122.34%
32,488,636,348.00
17,959,636,117
Quick Ratio Quick Assets / Current Liabilities 55.28%
32,488,636,348

2018 Solvency Ratios

35,072,939,195.00
Debt to Asset Ratio Total Debt / Total Assets 0.33
107,777,107,194.00
35,072,939,195.00
Debt to Equity Ratio Total Debt / Total Equity 0.48
72,704,167,999

2018 Coverage Ratios

4,203,680,258.00
Earning Interest Coverage Operating Profit / Interest Expense 26.43
159,071,734.00