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The Audit Committee Report to the Board of Directors

 
The Board Audit Committee is pleased to present our report for the financial year ended December 31, 2015.

Audit Committee Responsibility

The Board Audit Committee conducted its affairs in accordance with the duly approved Charter. Its primary purpose is to assist the Board in fulfilling its oversight responsibility to its stakeholders in: (a) keeping with the quality and integrity of the Company’s accounting, auditing, legal, ethical and regulatory compliance; (b) seeing to the adequacy and effectiveness of its internal control system, governance and risk management processes; (c) reviewing the annual independent audit of the Company’s financial statements and the external auditors’ qualification and independence; (d) ensuring compliance with applicable laws and regulations that may have material financial exposure to the Company; and (e) providing an avenue of communication among the independent auditors, management, internal audit and the Company.

Any proposed changes to the Audit Committee Charter are required to be first referred to the Board for approval.

Audit Committee Members and Attendance

The Board Audit Committee is composed of five members, three of whom are independent directors. The Charter requires the Committee to formally meet at least four times a year to discharge its duties and responsibilities. Special meetings are also called as needed. In 2015, the committee membership and meeting attendance are as follows:

In 2015, the committee membership and meeting attendance are as follows:

 
Member Mar 5, 2015 
Regular 
Meeting
May 7, 2015 
Regular 
Meeting
July 28, 2015 
Regular 
Meeting
Oct 26, 2015 
Regular 
Meeting
Dec 2, 2015 
Joint with 
Risk
 JOSE C. VITUG 
 Chairman, Independent 
 Director
 STEPHEN T. CUUNJIENG 
 Independent Director
 RAPHAEL P. M. LOTILLA  
 Independent Director
 ROBERTO E. ABOITIZ 
 Non-Executive Director
 JUSTO A. ORTIZ 
 Non-Executive Director


Also present in these meetings are the Group Internal Audit Head, the Chief Reputation and Risk Management Officer and, by invitation, the Chief Financial Officer, Controller and other key leaders as required.

Financial Reports

The Committee reviewed, discussed, and endorsed for the approval of the Board the 2015 quarterly unaudited consolidated financial  statements  and  the  2015  annual  audited  financial  statements of  Aboitiz  Equity  Ventures,  Inc.,  its  subsidiaries and alliances. Included in the review were the Management Discussion and Analysis of Financial Condition and Results of Operations after these had been presented and discussed with management, accounting, and the company’s independent external auditor, SyCip Gorres Velayo & Co. (SGV)—a member practice of Ernst & Young (EY) in the Philippines.

The activities of the Audit Committee are performed in the following context:
  • That management has the primary responsibility for the financial statements and the financial reporting process;and
  • That  the  company’s  independent  external  auditor  is  responsible  for  expressing  an  unqualified  opinion  on the conformity and consistency of application of the Company’s audited financial statements with Philippine Financial Reporting Standards

Independent Auditors

Upon the recommendation of the Board Audit Committee to the Board, and with the Board’s endorsement to the stockholders of the Aboitiz Equity Ventures, Inc. in its Annual General Stockholders Meeting held last May 18, 2015, SyCip Gorres Velayo & Co. (SGV) was re-appointed as the independent external auditor for 2015. The overall scope and audit plan of SGV were reviewed and approved during the October 26, 2015 regular Board Audit Committee meeting. The terms of engagement which covers audit-related services provided by SGV and its related fees were also reviewed and found to be reasonable. 

The results of the SGV audits and its assessment of the overall quality of the financial reporting process were discussed. SGV presented the effects of changes in relevant accounting standards and presentation of financial statements that impact on the reported results. These matters were covered during the first Board Audit Committee meeting held the 
following year on March 4, 2016.

Also, in the review of non-audit services provided by independent auditors, the Committee unanimously opined that there was no conflict of interest and that the work that had been contracted out to them was compatible with the general standard of independence for auditors imposed by relevant regulations.

Internal Auditors
We are satisfied that the internal audit function is operating effectively and that it has been able to cover the key risks pertinent to the company in its audits. The Committee has reviewed and approved the annual audit program for the year which also covers the adequacy of resources, qualifications and competency of the staff and independence of the internal auditor. The Internal Audit also completed majority of the 2015 annual plan as approved. 

With reference to the IPPF Attribute Standard 1100 which states that “The Internal Audit Activity must be independent, and internal auditors must be objective in performing their work”, the Committee confirms that the function is executed effectively and internal auditors have conducted their responsibilities objectively and in an unbiased manner. The Committee further confirms that, to the best of its knowledge and belief, the auditors have no personal or other impairments that would prevent them from objectively planning, conducting, reporting, or otherwise participating and reaching independent conclusions in their audit assignments in 2015. Internal audit is organizationally positioned to be independent— functionally reporting to the Board Audit Committee and administratively to the President and Chief Executive Officer. 

We are satisfied with the content and quality of reports prepared and issued by the internal auditors during the year under review.

The Group Internal Audit (GIA) takes the lead in setting the standards, initiatives and overall direction of the group-wide resident internal audit teams deployed to the different business units. It remains to be the single point of contact for the
Board Audit Committee. The resident audit teams have allowed for the increase in scope and coverage of audits as well as specialize in areas of business covered by their teams.

The group information systems auditors handled all technical audits related to systems and technology. Focus areas reviewed in 2015 included information technology general controls, cloud management and software applications reviews.

Based on the information from the results of the audits conducted in 2015 for Aboitiz Equity Ventures, Inc., its subsidiaries and alliances, with the contribution provided by management and other key leaders on the issues raised to their attention, Internal Audit believes that, overall there is reasonable assurance that the existing system of internal controls allows for a generally adequate management of identified risks and effectively supports the improvement of the management of the Company as a whole.

Key Initiatives

Part of the internal audit function is to continuously enhance its systems and processes. In 2015, the team has completed the Go-live of its Audit Management System; scripting training on the Audit Command Language (ACL); has documented and signed its Master Services Agreement with the business units and corporate services units; and has reviewed and updated its audit risk register.

Learning activities were also conducted to include holding an Audit Forum with the theme “Taking the IA function forward”; having an internal learning session with the audit committee on the power industry’s regulatory environment; having the first group-wide auditors’ teambuilding activity; and active participation in the activities of the Institute of Internal Auditors.

(IIA)-Philippines including a sponsorship during the Asian Confederation of the IIA (ACIIA) Convention held in Manila last November 2015.

Review of the Audit Charter

The Committee reviewed and assessed the current audit charter in its meeting held October 26, 2015 and found it adequate. No modification was suggested.

Self-Assessment

The Committee conducted its annual self-assessment in accordance with the guidelines of SEC Memorandum Circular No. 4, series of 2012. The assessment result showed that it fully complied with the requirements set forth in the Audit Charter and met the necessary and most important requirements set by global standards and best practices.

Risk Management

The Audit Committee had a joint meeting with the Board Risk and Reputation Management Committee in December 2, 2015. The committee members were apprised of the top key strategic and project risks consequential to the Company’s ability to execute its strategies and achieve its business objectives for the following year. High-level risk exposures were presented and discussed as these could affect shareholder value and ultimately the viability of the company. The significant potential impact of these strategic risks warranted a more focused attention from the board and its directors.

Also in this meeting, the mandatory and planned assurance activities for the following year were reviewed and approved. A short overview on the importance of combined assurance using the Three Lines of Defense Model of the Institute of Internal Auditors was presented as being part of the board’s learning activities.

As in previous years, the Committee continues to so monitor action plans and commitments developed by management to address audit issues and to ensure that proposed solutions are workable, strategic and sustainable.

Finally, the Committee has undertaken its activities to ensure that it will pursue even greater focus on the integrity of financial reporting, effectiveness of internal controls, risk management, governance and compliance within the Aboitiz group
of companies.

In behalf of the Committee,

Jose C. Vitug
(Retired Justice, Supreme Court/Independent Director)
Chairman


Statement of Management's
Responsibility for Financial Statements

 

SECURITIES AND EXCHANGE COMMISSION
SEC Building, EDSA Greenhills
Mandaluyong, Metro Manila

 
 
STATEMENT OF MANAGEMENT'S RESPONSIBILITY
FOR FINANCIAL STATEMENTS


 
The management of Aboitiz Equity Ventures, Inc. is responsible for the preparation and fair presentation of the consolidated financial statements for the years ended December 31, 2015 and 2014, including the additional components attached therein, in accordance with the prescribed financial reporting framework indicated therein. This resposibility includes designing and implementing internal controls relevant to the preparation and fair presentationof financial statements that are free from materials misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting statements that are reasonable in the circumstances.

The Board of Directors reviews and approves the consolidated financial statements and submit the same to the stockholders.
 
Sycip Gorres Velayo & Co., the independent auditors, appointed by the stockholders for the period December 31, 2015 and 2014 has examined the consolidated financial statements of the company in accordance with Philippine Standard on Auditing, and in its report to stockholders, has expressed its opinion on tha fairness of presentation upon completion of such examination.

Signed this 8th day of March, 2016.

 
Republic of the Philippines
Taguig City, S.S.

 


 
Before me, a notary public in and for the city named above, personally appeared:
Name Passport/CTC    Date/Place Issue

Jon Ramon M. Aboitiz

Erramon I. Aboitiz   


Manuel R.Lozano 

 
EB9718353
02217649 
EB7151577
02252882

EC1926563
05092418 

 
Novermber 29, 2013, Cebu City
February 10, 2016, Cebu City
January 14, 2013, Cebu City
January 26, 2016, Cebu City

August 18, 2014, NCR South
January 15, 2016, Makati City

 
who are professionally known to me and to me known to be the same persons who presented the
foregoing instrument and signed the instrument in my presence, and who took an oath before me
as to such instrument.
 
 


Independent Auditors' Report


The Stockholders and the Board of Directors
Aboitiz Equity Ventures, Inc.

We have audited the accompanying consolidated financial statements of Aboitiz Equity Ventures, Inc. and Subsidiaries, which comprise the consolidated balance sheets as at December 31, 2015 and 2014, and the consolidated statements of income, statements of comprehensive income, statements of changes in equity and statements of cash flows for each of the three years in the period ended December 31, 2015, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with Philippine Financial Reporting Standards, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these consolidated financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Aboitiz Equity Ventures, Inc. and Subsidiaries as at December 31, 2015 and 2014, and their financial performance and their cash flows for each of the three years in the period ended December 31, 2015 in accordance with Philippine Financial Reporting Standards.


SYCIP GORRES VELAYO & CO.

Leovina Mae V. Chu
Partner
CPA Certificate No. 99910
SEC Accreditation No. 1199‐AR‐1 (Group A),
June 22, 2015, valid until June 21, 2018
Tax Identification No. 209‐316‐911
BIR Accreditation No. 08‐001998‐96‐2015,
January 5, 2015, valid until January 4, 2018
PTR No. 5321709, January 4, 2016, Makati City
March 8, 2016
 


Independent Auditors' Report
On Supplementary Schedules


The Stockholders and the Board of Directors
Aboitiz Equity Ventures, Inc.
32nd Street, Bonifacio Global City
Taguig City, Metro Manila, Philippines

We have audited in accordance with Philippine Standards on Auditing, the consolidated financial statements of Aboitiz Equity Ventures, Inc. and Subsidiaries included in this Form 17‐A and have issued our report thereon dated March 8, 2016. Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed in the Index to Financial Statements and Supplementary Schedules are the responsibility of the Company’s management. These schedules are presented for purposes of complying with the Securities Regulation Code Rule 68, as amended (2011) and are not part of the basic financial statements. These schedules have been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, fairly state, in all material respects, the financial information required to be set forth therein in relation to the basic financial statements taken as a whole.

SYCIP GORRES VELAYO & CO.

Leovina Mae V. Chu
Partner
CPA Certificate No. 99910
SEC Accreditation No. 1199‐AR‐1 (Group A),
June 22, 2015, valid until June 21, 2018
Tax Identification No. 209‐316‐911
BIR Accreditation No. 08‐001998‐96‐2015,
January 5, 2015, valid until January 4, 2018
PTR No. 5321709, January 4, 2016, Makati City

March 8, 2016
 


Consolidated Balance Sheets


ABOITIZ EQUITY VENTURES, INC. AND SUBSDIARIES
CONSOLIDATED BALANCE SHEETS
(Amounts in Thousands)

                                         
​​
 December 31                               

  2015 2014

ASSETS
 
Current Assets
Cash and cash equivalents (Note 4)
Trade and other receivables (Note 5)
Inventories (Note 6)
Derivative asset (Note 36)
Other current assets (Note 7 and 8)



63,581,884
18,828,936
7,945,304
185,283
6,492,012



50,481,566
16,639,775
7,664,499
53,500
4,041,372

Total Current Assets 97,033,419 78,880,712
 
Noncurrent Assets
Trade Receivables - net of current portion (Note 5)
Derivative asset ‐ net of current portion (Note 36)
Property, plant and equipment (Notes 13 and 19)
Investments and advances (Note 10)
Investment properties (Notes 14 and 29)
Intangible asset ‐ service concession rights (Note 15)
Land and improvements (Note 13) 
Goodwill (Notes 9 and 12)
Available‐for‐sale (AFS) investments (Note 3)
Net pension assets (Note 30)
Deferred income tax assets (Note 31)
Other noncurrent assets (Notes 8 and 16) 

224,395
378,083
143,997,702
73,435,061
5,183,780
3,226,536
2,960,646

2,073,972
367,716
106,621
699,549

10,430,383

292,414
59,044
126,203,724
52,267,310
4,441,417
3,400,354
1,970,211
1,550,106
64,244
133,882
350,005
11,383,133

Total Noncurrent Assets  243,084,444 202,115,844


TOTAL ASSETS 

P 340,117,863

P 280,996,556

 
LIABILITIES AND EQUITY

Current Liabilities
Bank loans (Note 17)
Trade and other payables (Notes 18, 34 and 38)
Current portions of:
       Long‐term debts (Note 19)
       Long‐term obligation on Power Distribution System (PDS)
                (Note 15)
      Obligations under finance lease (Notes 13 and 22)
Income tax payable
 

P 8,883,056
18,565,557

3,133,346


40,000
2,583,754

957,497

P 7,343,700
15,631,565

2,907,302

40,000
1,971,739
694,604

Total Current Liabilities 34,163,210 28,588,910

 
                                                                                                                                                                                                        December 31                               

  2015 2014

Noncurrent Liabilities
Noncurrent portions of:
         Obligations under finance lease (Notes 13 and 22)
         Long‐term debts (Note 19)
         Long‐term obligations on PDS (Note 15)
         Trade payables (Notes 18 and 34)
Customers’ deposits (Note 20)
Asset retirement obligation (Note 21)
Deferred income tax liabilities (Note 31)
Net pension liability (Note 30)
 

P 51,085,100
95,414,386
207,184
302,202
6,581,459
3,016,528
1,607,906
755,446


P 52,489,282
95,414,386
216,015
345,915
5,943,305
2,353,250
1,760,139
550,094

Total Noncurrent Liabilities 158,970,211 158,970,211

Total Liabilities 193,133,421 146,061,592
 
Equity Attributable to Equity Holders of the Parent
Capital stock (Note 23)
Additional paid‐in capital (Note 23)
Other equity reserves:
      Gain on dilution (Note 2)
      Excess of book value over acquisition cost of an acquired
             subsidiary (Note 9)
      Acquisition of non‐controlling interests (Note 2)
Accumulated other comprehensive income:
       Net unrealized mark‐to‐market gains on AFS
               investments
       Cumulative translation adjustments (Note 36)
        Actuarial losses on defined benefit plans
              (Note 30)
        Share in actuarial losses on defined benefit plans
              of associates and joint ventures (Note 10)
        Share in cumulative translation adjustments
             of associates and joint ventures (Note 10)
        Share in net unrealized mark‐to‐market losses on AFS investments
             of associates (Note 10)
Retained earnings (Note 24)
Treasury stock at cost (Note 23)
5,694,600
7,683,568


5,376,176

469,540
(1,577,075)


14,188
176,379

(795,967)

(334,456)

(193,921)

(3,748,731)
106,521,242
(1,065,585)

5,694,600
6,911,044

5,376,176

469,540
(1,577,075)


14,627
35,533

(708,448)

(315,444)

(277,293)

(1,496,305)
94,995,596
(1,178,397)


Non‐controlling Interests
118,219,958
28,764,484
107,944,154
26,990,810

Total Equity 146,984,442 134,934,964

TOTAL LIABILITIES AND EQUITY

P 340,117,863

P 280,996,556


Consolidated Statements of Income




ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Amounts in Thousands, Except Earnings Per Share Amounts)


 
Years Ended December 31                                   

  2015 2014 2013

 
REVENUES
Sale of:
      Power and electricity (Note 25)
      Goods
Real estate (Notes 13 and 25)
Fair value of swine (Note 8)
Service fees (Note 38)
Others (Note 34)
 

P 84,874,038
20,982,378
2,732,878
1,786,095
827,222
57,357


P 86,136,648
17,862,179
3,267,741
1,878,236
252,028
470,458


P 71,810,961
15,125,115
1,760,573
1,306,475
714,428
158,742

  111,259,968 109,867,290 90,876,294

COSTS AND EXPENSES
Cost of generated and purchased power
       (Notes 5, 26, 27 and 38)
Cost of goods sold (Notes 6 and 27)
Operating expenses (Notes 27, 34, 38 and 39)
Cost of real estate sales (Note 6)
Overhead expenses (Note 27)
 

46,426,239
18,011,108
17,972,039
1,328,650
103,532


50,870,515
14,722,760
17,383,920
2,235,576
108,789


42,357,799
13,300,399
12,844,466
1,078,392
71,755

  83,841,568 85,321,560 69,652,811


OPERATING PROFIT
Share in net earnings of associates and joint ventures
      (Note 10)
Interest expense (Notes 22, 34 and 35)
Interest income (Notes 4, 34 and 35)
Other income ‐ net (Notes 5, 29 and 34)
27,418,400

6,589,452
(7,881,566)
1,132,001
224,010
24,545,730

7,244,241
(6,696,445)
591,136
1,906,530
21,223,483

10,596,577
(5,748,235)
481,461
541,503

INCOME BEFORE INCOME TAX
27,482,297 27,591,192 27,094,789
 
PROVISION FOR INCOME TAX (Note 31) 4,324,819 4,026,326 886,552

 
NET INCOME P 23,157,478 P 23,564,866 P26,208,237

 
ATTRIBUTABLE TO:
Equity holders of the parent
Non‐controlling interests

P 17,679,116
5,478,362

P 18,380,620
5,184,246

P 21,027,470
5,180,767

  P 23,157,478 P 23,564,866 P 26,208,237

 
EARNINGS PER SHARE (Note 32)
Basic and diluted, for net income for the year
       attributable to ordinary equity holders of the
       parent
 


P 3.184



P 3.324



P 3.808

                                            See accompanying Notes to Consolidated Financial Statements. 
 

Consolidated Statements of Comprehensive Income



ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Amounts in Thousands)


 
 
               Years Ended December 31                                   

  2015 2014 2013

 
NET INCOME ATTRIBUTABLE TO:
Equity holders of the parent
Non‐controlling interests

P 17,679,116
5,478,362

P 18,380,620
5,184,246

P 21,027,470
5,180,767

  23,157,478 23,564,866 26,208,237

 
OTHER COMPREHENSIVE INCOME
Items that may be reclassified to
         consolidated statements of income:
Movement in cumulative translation adjustments
Movement in net unrealized mark‐to‐market gains
       (losses) on AFS investments
Share in movement in cumulative
       translation adjustments of associates and joint
       ventures (Note 10)
Share in movement in net unrealized mark‐to‐market
       gains (losses) on AFS investments of associates
       (Note 10)


 
174,906

(439)


119,113


(2,245,010)



64,539

1,405


13,068


1,914,372



151,913

(6,651)


459,032


(4,246,487)

  (1,951,430) 1,993,384 (3,642,193)

Items that will not be reclassified to
         consolidated statements of income:
         Movement in actuarial gains (losses) on defined
              benefit plans, net of tax
         Share in movement in actuarial gains (losses) on
              defined benefit plans of associates and joint
              ventures, net of tax
 

(87,519)


(8,751)



149,154


(172,593)



135,660


(299,952)
 

 
  (1,951,430) 1,993,384 (3,642,193)

 
TOTAL COMPREHENSIVE INCOME P 21,109,778 P 25,534,811 P 22,266,092

ATTRIBUTABLE TO:
       
Equity holders of the parent
       Non‐controlling interests

P 15,543,938
5,565,840

P 20,353,550
5,181,261

P 16,977,564
5,288,528

  P 21,109,778 P 25,534,811 P 22,266,092

                                            See accompanying Notes to Consolidated Financial Statements. 



(INSERT IMAGE HERE)






Consolidated Statements of Cash Flows


ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Amounts in Thousands)



 
              Years Ended December 31                                    

  2015 2014 2013

CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax
Adjustments for:
      Interest expense (Note 35)
      Depreciation and amortization (Note 27)
      Net unrealized foreign exchange losses
      Provision for decline in value of project costs and various
             assets
      Loss (gain) on sale of:
             Property, plant and equipment (Note 13)
             AFS investments (Note 3)
             Investment in subsidiary and associate
                     (Notes 9 and 10)
      Provision for impairment loss
             on investments and advances (Note 10)
      Write‐off of goodwill on investment (Note 12)
      Gain on remeasurement in step acquisition (Note 9)
      Dividend income (Note 29)
      Net unrealized valuation gain on investment
              property
      Unrealized mark‐to‐market losses (gains) on
               derivatives
      Interest income
      Share in net earnings of associates and joint ventures
                (Note 10)

P 27,482,297

7,881,566
4,956,308
1,392,912

138,553

71,402




13,937


(1,810)

(186,512)

(317,645)
(1,132,001)

(6,589,452)

P 27,591,192

6,696,445
5,160,897
188,901

64,677

(15,958)
23

(638,878)

2,834


(89)

(5,001)

897
(591,136)

(7,244,241)

P 27,094,789

5,748,235
4,339,683
2,110,911

103,514

(47,291)


(1,294,659)

657,510
(964,600)

(338)

(20,884)

(394)
(481,461)

(10,596,577)

Operating income before working capital changes
Decrease (increase) in:
         Trade and other receivables
         Inventories
         Pension asset
         Other current assets
 Increase (decrease) in:
        Trade and other payables (Note 9)
        Pension liability
        Long‐term obligation on PDS
        Customers’ deposits
33,709,555

(499,797)
(638,947)
24,942
(2,669,217)

351,764
123,329
(40,000)
953,714
31,210,563

(5,034)
1,514,708

(560,495)

(2,600,976)

(40,000)
605,996
27,017,342

(3,923,828)
(1,488,493)

(1,124,068)

3,710,855

(40,000)
2,921,525

Net cash generated from operations
Income and final taxes paid
31,315,343
(4,056,356)
30,124,762
(3,020,302)
27,073,333
(1,729,652)

Net cash flows from operating activities 27,258,987 27,104,460 25,343,681

CASH FLOWS FROM INVESTING ACTIVITIES
Cash dividends received (Note 10)
Proceeds from sale of common shares and redemption of
      preferred shares of associates and joint ventures
      (Note 10)
Interest received
Proceeds from sale of:
      AFS investments
      Property, plant and equipment

5,126,894


2,649,204
1,123,646

214,555
145,378

5,957,286


637,732
506,094

456
25,176

5,248,482


340,430
427,767

11,800
144,057

 
Years Ended December 31                              

  2015 2014 2013

Acquisition through business combination, net of cash
        acquired (Note 9)
Disposal of a subsidiary, net of cash disposed (Note 9)
Additions to:
     AFS investments
     Land and improvements (Note 13)
     Property, plant and equipment and investment
           properties (Notes 13 and 14)
     Investments in and advances to associates (Note 10)
Increase in intangible asset ‐ service concession
     rights (Note 15)
Increase in other noncurrent assets

P 101,374



(685,642)

(19,514,009)
(24,229,823)

(20,046)
(1,504,063)

(P 1,229,760)
254,343

(1,173)
(200,083)

(16,651,075)
(1,400,685)

(36,286)
(2,285,272)

(P 847,934)
3,418,636


(617,608)

(17,335,118)
(2,058,015)

(41,584)
(1,252,453)

Net cash flows used in investing activities (36,592,532) (14,423,247) (12,561,540)

 
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from availment of long‐term debts ‐ net of
       transaction costs (Note 19)
Net proceeds from (settlements of) bank loans
Proceeds from issuance of treasury shares (Note 23)
Acquisition of non‐controlling interests (Note 9)
Interest paid
Cash dividends paid and other changes to non‐controlling
       interest
Cash dividends paid to equity holders of the parent
       (Note 25)
Payments of:
      Payable to preferred shareholder of a subsidiary
      Long‐term debts (Note 19)
      Obligations under finance lease (Note 21)
 

44,494,653
1,055,647
885,336

(3,350,218)

(4,243,450)

(6,153,470)


(2,813,140)
(7,482,447)


22,788,325
3,666,100
916,853
(1,010,045)
(2,033,042)

(3,752,913)

(9,939,369)


(2,002,259)
(6,970,625)


28,976,900
(3,712,791)

(84,018)
(968,925)

(3,930,354)

(11,043,744)

(62,140)
(12,888,615)
(6,722,939)

Net cash flows from (used in) financing activities 22,392,911 1,663,025 (10,436,626)

 
NET INCREASE IN CASH
       AND CASH EQUIVALENTS

EFFECT OF EXCHANGE RATE CHANGES
       ON CASH AND CASH EQUIVALENTS

CASH AND CASH EQUIVALENTS
       AT BEGINNING OF YEAR

13,059,366


40,952


50,481,566

14,344,238


19,138


36,118,190

2,345,515


42,144


33,730,531

 
CASH AND CASH EQUIVALENTS
        AT END OF YEAR
(Note 4)

P 63,581,884

P 50,481,566

P 36,118,190

                                           See accompanying Notes to Consolidated Financial Statements. 
 


Investor Information


Head Office:
NAC Tower, 32nd Street, Bonifacio Global City,
Taguig City, Metro Manila 1634, Philippines
Tel (632) 886-2800 | Fax (632) 886-2407

Cebu Office:
Aboitiz Corporate Center
Gov. Manuel A. Cuenco Avenue,
Kasambagan, Cebu City 6000, Philippines
Tel (6332) 411-1800 | Fax (6332) 231-4037

Common Stock
The Company’s common stock is listed and traded
in the Philippine Stock Exchange.

Stockholders’ Meeting
The Company’s regular stockholders’ meeting is held
on the third Monday of May of every year.
 
Stockholder Services and Assistance
Stock Transfer Service, Inc. (STSI) serves as the Company’s stock
transfer agent registrar.

For matters concerning dividend payments, account status, lost or damaged stock 
certificates, change of address, please write or call:

STOCK TRANSFER SERVICE, INC.
34-D Rufino Pacific Tower,
6784 Ayala Avenue, Makati City 1226, Philippines
Tel (632) 403-3798 | (632) 403-2410 | (632) 403-2412
Fax (632) 403-2414
 
Contact person:
Mr. Michael C. Capoy - mccapoy@stocktransfer.com.ph
AEV welcomes inquiries from institutional investors, analysts, and the financial community.
Please write or call:

Investor Relations
Aboitiz Equity Ventures, Inc.
Mr. Judd Salas or Mr. Aristo de Borja
Tel (632) 886-2423 | Fax (632) 817-3560

Email: aev_investor@aboitiz.com
Website: www.aboitiz.com