Cash and cash equivalents increased to P=54.

34 billion as of December 31, 2017, from

P=43.41 billion as of December 31, 2016. Cash provided by operating activities amounted to

P=38.30 billion. As of December 31, 2017, net cash used in investing activities amounted to

P=38.75 billion mainly for the Group’s capital expenditure program. The Group’s net cash

provided by financing activities amounted to P=11.37 billion mainly due to additional long-term

loan availments of the Group, net of partial settlements of trust receipts payable of the

petrochemicals business and short-term loans of an offshore company. Our financial assets,

including those held at fair value through profit and loss (excluding derivative assets),

available for sale investments and held to maturity amounted to P=60.95 billion, a 7.2%

increase from P=56.85 billion as of December 31, 2016 due to higher market valuation during

the year.

Receivables, including noncurrent portion increased by 29.5% from P=69.72 billion as of

December 31, 2016 to P=90.26 billion as of December 31, 2017 mainly due to the significant
increase in finance receivables of the banking business.

Inventories increased 5.7% from P=49.70 billion as of December 31, 2016 to P=52.54 billion as

of December 31, 2017 due to higher level of raw materials and spare parts of the food and

petrochemicals businesses.

Biological assets, including noncurrent portion, increased 21.3% due to increase in

headcount and market prices of hogs.

Other current assets increased 16.9% from P=13.01 billion as of December 31, 2016 to

P=15.21 billion as of December 31, 2017 mainly due to higher input value-added tax of the real

estate and petrochemicals businesses.

Investment in associates and joint ventures increased 8.2% from P=127.95 billion as of

December 31, 2016 to P=138.39 billion as of December 31, 2017 due to the additional

investment in Meralco and equity earnings from UIC during the year.
Investment properties increased 18.3% from P=75.42 billion as of December 31, 2016 to

P=89.24 billion as of December 31, 2017 due to acquisition of several land properties both for

residential and commercial development, and ongoing constructions of the real estate

business during the year.

Other noncurrent assets went up by 30.4% from P=6.52 billion as of December 31, 2016 to

P=8.51 billion as of December 31, 2017 primarily due to the advance payments made for the

Airbus A330 life limited engine parts of the airline business.

Consolidated total assets reached P=739.31 billion as of end of December 2017.

Accounts payable and accrued expenses increased by 19.0% from P=96.30 billion as of

December 31, 2016 to P=114.60 billion as of December 31, 2017 mainly due to the higher

level of deposit liabilities of our banking business.

Short term debt decreased 25.9% to P=45.85 billion as of December 31, 2017 from P=61.88

billion as of December 31, 2016 due to partial settlement of JGSPL’s short-term loans and
Petrochemical’s trust receipts during the year.

Income tax payable decreased 39.5% mainly due to lower level of tax payable of the food

and real estate business units.

Other current liabilities increased 6.1% to P=13.69 billion as of December 31, 2017 mainly due

to higher unearned transportation revenue on sale of passenger travel services by the airline

business.

Long-term debt, including current portion, increased 14.1% from P=159.19 billion as of

December 31, 2016 to P=181.69 billion as of December 31, 2017 mainly due to additional term

loans availed by the Parent Company and RLC during the period.

Other noncurrent liabilities increased to P=28.04 billion as of December 31, 2017 from

P=13.21 billion as of December 31, 2016 due to higher level of deposit liabilities of the banking

business.

Stockholders’ equity, excluding minority interest, stood at P=267.84 billion as of December 31,
2017 from P=239.52 billion last year.

Book value per share amounted to P=37.39 as of December 31, 2017 from P=33.43 as of

December 31, 2016.