PETRON CORPORATION

BALANCE SHEET
(Amounts in Millions Pesos)

2014 2015 2016 2017 2018

ASSETS
Current Assets
Cash and cash equivalents 90,602 18,881 17,332 17,014 17,405
Financial assets at fair value through profit or loss 470 509 221 336 1,126
Available-for-sale financial assets 430 233 71 199 40
Trade and other receivables - net 56,299 30,749 31,548 38,159 42,497
Inventories 53,180 30,823 44,147 56,604 63,873
Other current assets 18,048 34,530 32,499 33,178 37,081
Total Current Assets 219,029 115,725 125,818 145,490 162,022

Noncurrent Assets
Available-for-sale financial assets 451 388 408 332 338
Property, plant and equipment - net 153,650 161,597 176,604 177,690 163,984
Investment in associate 1,162 1,814 1,883 - 16,536
Investment property - net 113 112 91 75 257
Deferred tax assets 242 211 194 207 257
Goodwill 8,921 7,694 7,480 8,277 8,532
Other noncurrent assets - net 7,756 6,726 6,415 5,959 6,485
Total Noncurrent Assets 172,295 178,542 193,075 192,540 196,389

TOTAL ASSETS 391,324 294,267 318,893 338,030 358,411

LIABILITIES AND EQUITY

Current Liabilities
Short-term loans 133,388 99,481 90,366 69,583 82,997
Liabilities for crude oil and petroleum
product importation 24,032 16,271 29,966 36,920 25,991
Trade and other payables 39,136 9,347 16,161 11,604 28,471
 Derivatives liabilities 98 603 778 1,791 614
Income tax payable 73 183 626 808 146
Current portion of long-term debt -net 5,860 694 20,911 3,789 17,799
Total Current Liabilities 202,587 126,579 158,808 124,495 156,018

Noncurrent Liabilities
Long-term debt -net of current portion 66,269 71,726 58,941 97,916 100,201
Retirement benefits liability 2,273 5,509 3,315 4,885 2,433
Deferred tax liabilities 3,471 4,638 5,726 7,397 8,450
Asset retirement obligation 1,659 1,809 2,324 2,681 3,592
Other noncurrent liabilities 1,373 906 959 1,037 1,274
Total Noncurrent Liabilties 75,045 84,588 71,265 113,916 115,950

TOTAL LIABILITIES 277,632 211,167 230,073 238,411 271,968

Equity Attributable to Equity Holders of the Parent Company

Capital stock 9,485 9,485 9,485 9,485 9,485
Additional paid-in capital 19,653 19,653 19,653 19,653 19,653
Undated subordinated capital securities 30,546 30,546 30,546 30,546 24,881
Retained earnings 40,815 41,712 42,011 49,142 49,491
Reserve for retirement plan - 1,018 - 3,204 - - - 14,031
Other reserves - 2,149 - 5,563 - 7,204 - 5,171 -
Treseaury Stock - - 10,000 - 10,000 - 10,000 10,000
Total Equity Attributable to Equity
Holders of the Parent Company 97,332 82,629 84,491 93,655 99,479
Non-controlling Interests 16,360 471 4,329 5,964 6,707

TOTAL EQUITY 113,692 83,100 88,820 99,619 106,186

TOTAL LIABILITIES AND EQUITY 391,324 294,267 318,893 338,030 378,154

PETRON CORPORATION
INCOME STATEMENT
(Amounts in Million Pesos)
 2014 2015 2016 2017 2018

SALES 482,535 360,178 343,840 434,624 557,386

COST OF GOODS SOLD 463,100 328,438 306,125 391,969 522,824
GROSS PROFIT 19,435 31,740 37,715 42,655 34,562

SELLING AND ADMINISTRATIVE EXPENSES - 11,830 - 13,606 - 13,918 - 15,017 - 15,641

INTEREST EXPENSE AND OTHER FINANCING CHARGES - 5,528 - 5,533 - 7,557 - 8,487 - 9,689
INTEREST INCOME 844 686 507 535 706
SHARE IN NET INCOME/(LOSS) OF ASSOCIATES 102 133 66 63 -
OTHER INCOME (EXPENSES) - Net 790 - 3,495 - 2,435 - 907 517
- 15,622 - 21,815 - 23,337 - 23,813 - 24,107
INCOME BEFORE INCOME TAX 3,813 9,925 14,378 18,842 10,455
INCOME TAX EXPENSE 804 3,655 3,556 4,755 3,386
NET INCOME 3,009 6,270 10,822 14,087 7,069

A. PROFITABILITY RATIOS
RETURN OF SALES 0.01 0.02 0.03 0.03 0.01
RETURN OF EQUITY 0.03 0.08 0.12 0.14 0.07
GROSS PROFIT MARGIN 0.04 0.09 0.11 0.10 0.06
OPERATING RETURN ON ASSETS 0.08 0.16 0.17 0.18 0.15
B. ASSET UTILIZATION AND ACTIVITY
INVENTORY TURNOVER RATIO 9.07 11.69 7.79 7.68 8.73
FIXED ASSETS TURNOVER RATIO 3.14 2.23 1.95 2.45 3.40
ASSET TURNOVER RATIO 1.23 1.22 1.08 1.29 1.56
OPERATING ASSET TURNOVER 1.29 1.30 1.14 1.34 1.71
C. LIQUIDITY
CURRENT RATIO 1.08 0.91 0.79 1.17 1.04
QUICK OR ACID TEST RATIO 0.82 0.67 0.51 0.71 0.63
D. SOLVENCY
TOTAL DEBT TO ASSET RATIO 0.71 0.72 0.72 0.71 0.76
DEBT TO EQUITY RATIO 0.58 0.86 0.66 0.98 0.94
EQUITY MULTIPLIER 3.44 3.54 3.59 3.39 3.38
C. DU PONT ANALYSIS
NET INCOME 3,009 6,270 10,822 14,087 7,069
SALES 482,535 360,178 343,840 434,624 557,386
TOTAL ASSETS 391,324 294,267 318,893 338,030 358,411
EQUITY 113,692 83,100 88,820 99,619 106,186

RETURN OF SALES 0.01 0.02 0.03 0.03 0.01

ASSET TURNOVER RATIO 1.23 1.22 1.08 1.29 1.56
EQUITY MULTIPLIER 3.44 3.54 3.59 3.39 3.38
RETURN OF EQUITY 0.03 0.08 0.12 0.14 0.07 0.09