Miguel Corporation and Subsidiaries

Consolidated Statement of Financial Position

As of December 2014 and 2013

Note

2014

2013

5, 9, 40, 41

P258,606

P191,613

4, 5, 6, 10, 13, 33, 35, 39, 40, 41

136,036

168,141

4, 5, 11

85,846

83,315

17

3,320

3,427

4, 5, 12, 13, 14, 34, 40, 41

46,088

33,712

529,896

480,208

9,339

8,798

539,235

489,006

ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables - net
Inventories
Current portion of biological assets - net
Prepaid expenses and other current assets
Assets held for sale

8, 13

Total Current Assets

Noncurrent Assets
Investments and advances - net
Available-for-sale financial assets
Property, plant and equipment - net
Investment property - net
Biological assets - net of current portion

4, 13

37,427

60,654

4, 14, 40, 41

41,459

42,048

4, 5, 15, 34

453,961

425,832

4, 16

3,643

4,176

4, 17

1,973

1,911

Goodwill - net

4, 5, 18, 38

41,211

41,752

Other intangible assets - net

4, 5, 18, 38

45,114

36,032

4, 5, 24

14,651

15,608

4, 5, 19, 33, 35, 39, 40, 41

38,376

53,068

677,815

681,081

P1,217,050

P1,170,087

5, 20, 33, 40, 41

P180,059

P143,226

4, 5, 21, 33, 35, 40, 41

121,844

117,257

4, 34, 40, 41

16,219

15,654

13,303

13,058

33, 36

3,134

3,544

5, 22, 33, 40, 41

19,852

42,807

354,411

335,546

Deferred tax assets

Other noncurrent assets - net
Total Noncurrent Assets

LIABILITIES AND EQUITY

Current Liabilities
Loans payable
Accounts payable and accrued expenses
Finance lease liabilities - current portion
Income and other taxes payable
Dividends payable
Current maturities of long-term debt - net of debt issue costs
Total Current Liabilities
Noncurrent Liabilities
Long-term debt - net of current maturities and debt issue costs
Deferred tax liabilities
Finance lease liabilities - net of current portion
Other noncurrent liabilities
Total Noncurrent Liabilities

5, 22, 33, 40, 41

283,136

264,690

5, 24

7,820

11,061

4, 34, 40, 41

170,111

179,394

4, 5, 23, 33, 34, 35, 40, 41

12,091

13,619

473,158

468,764

SAN MIGUEL CORPORATION AND SUBSIDIARIES

Note

2014

2013

SALES

33

P782,434

P748,241

COST OF SALES

26

669,641

631,856

112,793

116,385

GROSS PROFIT
SELLING AND ADMINISTRATIVE
EXPENSES

27

(57,018)

(60,971)

INTEREST EXPENSE AND OTHER

FINANCING CHARGES

20, 22, 30, 34

(29,710)

(30,970)

INTEREST INCOME

31

4,012

3,539

EQUITY IN NET EARNINGS (LOSSES) OF

ASSOCIATES AND JOINT VENTURES

13

1,255

(967)

GAIN ON SALE OF INVESTMENTS AND

PROPERTY AND EQUIPMENT

6, 8, 13, 14, 15, 16, 18, 19

777

41,192

OTHER INCOME (CHARGES) - Net

14, 32, 40, 41

6,307

(13,780)

38,416

54,428

10,284

3,700

P28,132

P50,728

P14,692
13,440

P38,053
12,675

P28,132

P50,728

P3.61
3.59

P13.43
13.36

INCOME BEFORE INCOME TAX

INCOME TAX EXPENSE

24, 42

NET INCOME
Attributable to:
Equity holders of the Parent Company
Non-controlling interests

Earnings Per Common Share

Attributable to Equity Holders of the
Parent Company
Basic
Diluted

37

CONSOLIDATED STATEMENTS OF INCOME

FOR THE YEARS ENDED DECEMBER 31, 2014 and 2013

SAN MIGUEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013
Note
NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS)

2014

2013

P28,132

P50,728

ITEMS THAT WILL NOT BE RECLASSIFIED TO PROFIT

OR LOSS
Equity reserve for retirement plan
Income tax benefit (expense)
Share in other comprehensive income (loss) of
associates and joint ventures - net

35

(4,109)
1,233

13

175
(2,701)

ITEMS THAT MAY BE RECLASSIFIED TO PROFIT

OR LOSS
Gain (loss) on exchange differences on translation of
foreign operations
Net gain (loss) on available-for-sale financial assets
Income tax benefit (expense)

(522)
(810)
17

14

OTHER COMPREHENSIVE INCOME (LOSS) - Net of tax

TOTAL COMPREHENSIVE INCOME - Net of tax
Attributable to:
Equity holders of the Parent Company
Non-controlling interests

1,985
(592)
(480)
913

219
1,767
(10)

(1,315)

1,976

(4,016)

2,889

P24,116

P53,617

P12,103
12,013

P38,923
14,694

P24,116

P53,617

See Notes to the Consolidated Comprehensive Income

SAN MIGUEL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2014 and 2013

Equity Attributable to Equity Holders of the Parent Company

Capital Stock

Additional
Paid-in

Revaluation

Reserve for
Retirement

Cumulative Translation
Adjustments
Translation

Fair Value

Retained Earnings
Appro-

Unappro-

Treasury Stock

Noncontrolling

Total

Note
As of January 1, 2014
Loss on exchange
differences on translation
of foreign operations
Share in other comprehensive income (loss)
of associates and joint
ventures - net
Equity reserve for retirement
plan
Net loss on available-for-sale
financial assets

Common

Preferred

Capital

Increment

Plan

Reserve

Reserve

priated

priated

Common

Preferred

Total

Interests

Equity

P16,414

P10,187

P178,085

P764

P862

P4,079

P784

P28,230

P138,256

(P67,166)

(P72,788) P237,707

P128,070

P365,777

(8)

(8)

(514)

13

35

14

(1,977)
-

(1,977)
-

10

(522)

182

182

(7)

(1,977)

(899)

(786)

(786)

(7)

(793)

(8)
-

(604)
-

14,692

(2,589)
14,692

(1,427)
13,440

(4,016)
28,132

(8)
-

(604)
-

14,692
-

12,103
7

12,013
-

24,116
7

73

83

175

Other comprehensive loss

Net income
Total comprehensive income
(loss)
Issuance of common shares
25
Conversion of exchangeable
bonds from treasury
shares
25
Net addition to noncontrolling interests and
others
5, 6, 13
Appropriations - net
25
Cash dividends and
distributions:
36
Common
Preferred
Undated subordinated
capital securities

(1,977)
-

(2,876)

83
-

23,858

(23,858)

(3)
-

23,363
-

(3,329)
(6,106)

(3,329)
(6,106)

(7,810)
(2,314)

(11,139)
(8,420)

(4,303)

(4,303)

23,360
(3)

Equity Attributable to Equity Holders of the

Parent Company

Common

Preferred

Additional
Paid-in
Capital

P16,408

P10,187

P177,762

Capital Stock
Note
As of January 1, 2013
Gain (loss) on exchange
differences on translation
of foreign operations
Share in other comprehensive income (loss)
of associates and joint

Revaluation
Increment
P1,467

Reserve for
Retirement
Plan
(P176)

Cumulative Translation
Adjustments

Retained Earnings

Translation
Reserve

Fair Value
Reserve

Appropriated

Unappropriated

Common

P5,522

(P491)

P27,219

P154,475

(P67,336)

(1,443)

Total

Noncontrolling
Interests

Total
Equity

(P72,788) P252,249

P96,688

P348,937

1,662

219

Treasury Stock

Preferred

(1,443)

ventures - net
Equity reserve for
retirement plan
Net gain on available-forsale financial assets

13

35

1,038

14

1,038
-

63

1,038
-

183

1,011
-

(1,011)
(42,299)

(3,329)
(7,633)

Other comprehensive
income (loss)
Net income
Total comprehensive
income (loss)
Issuance of common shares
25
Conversion of exchangeable
bonds from treasury
shares
25
Cancellation of Employee
Stock Purchase Plan
reverted to treasury
shares
39
Stock options
39
Net addition to noncontrolling interests and
others
5, 6, 13
Appropriations - net
25
Property dividends
13, 32
Cash dividends and
distributions:
36
Common
Preferred
Undated subordinated
capital securities
As of December 31, 2013

25

P16,414

77

P10,187

P178,085

(703)
-

P764

P862

(481)

(480)

1,038

355

1,393

1,756

1,756

1,757

(1,443)
-

1,275
-

38,053

870
38,053

2,019
12,675

2,889
50,728

(1,443)
-

1,275
-

38,053
-

38,923
69

14,694
-

53,617
69

485

668

668

(315)
-

(315)
77

(315)
77

(703)
(42,299)

27,186
-

26,483
(42,299)

(3,329)
(7,633)

(6,671)
(2,153)

(10,000)
(9,786)

(1,674)

(1,674)

P128,070

P365,777

P4,079

(481)
-

P784

P28,230

P138,256

San Miguel Corporation and Subsidiaries

Statement of Cash Flows
For the Year Ended December 2014 and 2015

(P67,166)

(P72,788) P237,707

Note

2014

2013

P38,416

P54,428

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax
Adjustments for:
Depreciation, amortization and others - net

7, 28

25,224

43,825

Interest expense and other financing charges

30

29,710

30,970

Interest income

31

(4,012)

(3,539)

13

(1,255)

13, 15

(777)

Equity in net losses (earnings) of associates and

joint ventures

967

Gain on sale of investments and property and

equipment
Operating income before working capital changes

(41,192)

87,306

85,459

(24,867)

(2,465)

Changes in noncash current assets, certain current

liabilities and others

38

Cash generated from operations

62,439

82,994

Interest and other financing charges paid

(21,735)

(21,423)

Income taxes paid

(11,287)

(11,832)

Net cash flows provided by operating activities

29,417

49,739

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisitions of subsidiaries, net of cash and cash
equivalents acquired
Additions to investments and advances
Additions to property, plant and equipment
Payments of other liabilities

38

(302)

(512)

13

(6,314)

(26,814)

7, 15

(38,951)

(65,865)

2,688

(14,323)

66,913

72,962

3,481

3,476

3,857

13

Decrease (increase) in other noncurrent assets and

others
Proceeds from sale of investments and property and
equipment

6, 8, 13, 14, 15, 16, 18, 19

Interest received
Dividends received from associates

13

Net cash flows provided by (used in) investing activities

27,520

(27,219)

CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from:
See Notes to the
Financial

Short-term borrowings

827,018

853,769

Long-term borrowings

47,591

146,370

Short-term borrowings

(789,191)

(865,777)

Long-term borrowings

(54,309)

(80,225)

Payments of:

Proceeds from issuance of Series 2 preferred shares

25

Redemption of Series 1 preferred shares

25

Consolidated