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MS CARIOTA R VII{AY

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AUARTEPLl REPoRTPIRSUANTTO

AND SRC RULE 1?(I)-I(b)(2)THERE

ffi',{.iurrr "

sEc rd.dificarior

%i.'lil""'iL:,j

10979

slllid Ree!trEso ide

umc 7d

coq E nn rcg'ms' a-Fim-

ldunr, oro hrjrnsdic' or

F|or, JMr Condominiun. ADB Aveue

R.c,r3.is rkphon. *mbfr

connonQ'EturorPr

arr

oiihe

tLa;s;Hi;E

005hart)

Anoufi of Ilbt olsbnding

Ar ry n

$.uiri6

= ?444,253

tisred 0

AuisuedmdoutbndingMnonshc

th'rrpr rei drhg rhe pHedr.s D m-rh, (", r", fik $.h reponn

has

be$ sbj€db $.h fitjigrcq

*"h

"r,"f*

F,iod

.ei;d

as of Mmh

t,20r

Mmh1,2016

For rhe

f,qud.r

ad€d M@h

Fo dE

qMr

dded Mmh

31, 2017 md

r, 2017

4d Mdh

r sleenbr of ohd c.mpEhdsire hom.

Mirch

31,

2oro

31,

20ro

4. sid.med ofchrg* in Eoity AsofMnh 31,20t7, M@h3r,2016md De€nb* I1.2016

4totM4.h1.r0 7.vmrI,_oto lbn !. M$ry.mm. Dr$'ron md L Fin@ialc.ndition Marh 3 t, zot 7 md Mfth I1.20 ro 2.R..ulbofoFnrions Fdrtequaturend.dMarch3r.2ol?

|7dndD.enbs1'.0|o 6.

PART

Dis.l6r

vie* of6. cumr atob.t fimciat dhis.

OTHER INfORM^TION

supphndbrylniofu'onmddBdo scb.duleof F'ns(isl soufthsi hdrcini! Rmmiridto or R.bned Emn6 A4iL,bk ror Divld.nd Declamidi Mrp or tr|don,hip3 of ompmis wtrhh ,h. @up

SEAFRONT RESOURCtrS CORPOIIATION STATEMENTS OF FINANCIAL POSITION

rnamdl ascts d lair

klE

rhtuugh proin

( b$

Avrihble-fd sah tinanci.l aseb

P2r0.?43.522 P1?1,,r45.653

LIABILITIESAND EQUITY accounts

Fyrbh

and

,ccrkd e{

Authori4d . 333.rx]0.Ot)0 shares rsswd anl Nbhidins 161,0{iJ.or|] sh!res Nd maliad g.tB m aEitabLelo.sah fmncial

TOTAL LIABllTTIf,SAIDtr

p209,974,237

SEAfRONT RESOURCES CORPORATION STATEMENTS OF INCOMO

For rhc

ll-Marl7 REI'f,NUES Net Cai6 on faL valuc chrngds on fan val'f rh@gh profr tr h6s

fmncbl a$els

TOTAL RTITNUES E](PENSES Ceneml and adninistarive

Income beft)rc iDcone

NETINCOME Baic

Noil

Dilukd Eamibgs PerSbrE

P',437,

0.0t5t6

Qu.ner

3l-M.Ft6

-6Sf, AFROM RESOURCES

CORMRATION SIATEMENTS OF COMPREHENSIVE INCOME

Umudit€d

UmudiEd

31-MaF17 3l-MGl5

NETINCOME

P2.487.304

P4"5582t2

OTHER COMPREHENSII'E INCOME (LOSS)

Itu

b \er

rectasifxd

to ptuJi1

ot lbs in

ulHtud grtu i kb*: I d !w&bh_f*-

I]OTAL COMPREEENSII'f, INCOME FOR T'gE QUARTER

.uh (r.sol.rr,

,2/I]nJ

SEAIRONT RESO!RCf, S CORPORATION STATEMtrNTS OfCHANCES IN [QUITY

For

rh. rr' aurn!r tddrd

M'nhll,

:01? (unrudi'.d)

P1,40o,4r6 P209,,r0,617

B,b'.*, .

r"Jl

P|b1'001'n0n f{'h

Bahnc* al beAjminq

rr Quie

n|010,1164 End.d

Msrh

)0 6(umudiad)

orFrr

{'hL \ sr Frtlc,l DBrmh<r lr, ?0r6(audtud)

P|...m.I!.o046)P|6!J44!o3

flo,,00nm0

r42.00r:21

SL{TRONT RESOURCF]S CORPORATION STATf, Mf, NTS OF CASIIFLO\IS

CASH FLOTVS FROM OPERATING ACTIVITIES

I5J,71n

(19.330)

(203|])

(rr,4or) (124,71r)

Nsr m.a|ned }Is (gaint d iirt vaiE changes on fmrcbl ossls at lair vatue thrcwh proft

OFraling lo$ bei@ wokine capital changes Changes in lTeraring

aseh

(236,923)

and liabilirbs:

(6q49D

(244311

(52,171)

A(cod p":abk.da!.'rdc\pe1...

(l2l.l,l4)

Ner cash used for opemrioN

(t?5,3r0)

\180,

'l/

(314J72) 9,201

lrr:J p'"'i/Jb L-r. in,6rrmqa'riri".

ll'5.310r \bpa-_(, (bo.. l,

CASH FLO\\S TROM I NVESTING ACTIVITI trS

l3,17tl a$cs - FVPL Acqutition ol Financial a$es - AFS Nel cash Dmvilcd by hlesina activitics NET INCREASf, (DECREASf,) IN CASH AIID CASH EQUIVALENTI) CASH AND CASH EQUIVALf,NTS AT BECINNING OF THE \EAR CASH AND CASH EQUIVALf,NTS AT Acquisition of Fidancial

(4,s23) Q,4AA,7r7)

(r,{4r,!4J)

(5,1s,633) (I0t53) 11,725,233

P3,306,1R5

,4a0.053

,?:s213

,9, SDAFRONT RESOURCES CORPORATION NOTES TO FINANCTAL STATEMENTS

Seofiont Resources CorpoEtion ( 1he Comprny' or "sRc ) ws registered wirh the S*rities md Exchange Commksion (SEC) on pril 16, 19?0 .n oil cxplorarioi and prcduqlion company On Oolober 13, 1996,lhe ComFny amended its Anicks of lDcorporarion whichporid* for Ihe revhion ofns pnnary purDose nofr eigaging in rhe buslnc$ ofoil cxplodioi and pNduction inro r holding conplnt and io irclude oil explodion aDd prodndion husines one of ib purposer. seondoD_ The rc8is!*ed oflica iddr*s ofrhe Conpany is 7rh Floor, JMT Building, ADBAvenoe, Onisas Center, PrisCiq

The Compdyt

shrs of

ick

are lisbd

are curEndy taded ar the Philippine Srck

'Ihe acdnpanyins financial sbtemenh of lhe Company hlve b€ei prcpared underlbe historcal cosi bass, ex*p! for .he finmcial tuseh at fan vrtue thmush profir or los (FVPL) and availa6le foFsale (AFS) financial as*ls, $hich havc ben mcaswcd !. fan value TheComp.ny\fiimcial slalen'enls @ pre*nred in Philippine leso (P), rhich is ako rhe Co'npmyt ftrnction,l cuftncy. The

and b.lrncas olthe funds re conlolidared otr a lire by li'E b6is ro dre fnnd rcpods re prepalerl lor rhe sane reponins year as the Compm}. using accounllng pollcles.

tutrsetiois

Conpany. lne

bnsient

tu{

srabment ofcomolianqe

Thc nnd.ial iatemenh of the Conp3iy hare be.n prcparcd in .ccordanca Financial Reporing shndd& (PFRst. The rcconpanying inrerim finmcial Bsue by tl'e Board .f Dncc!o^.

{irh

Philippine

nar'nens of rh. Company *ere rpproved md aurhoriad for

Ch.nger in Accounri.g Poli.i6 ard Dbclducs

esunlin8 policies adopted m consisr wnh rhose of$e previour caleMar year, exepl !h.r rhe company has a,lopEd rhe folloring res sccouiling prcnounenenr nanins The

Jrnlary 1.2017. Adoption ofthese pronouncanenb did nor have any sienillcor inpacr on Comprny\ nnancial posirion or p€rlomance unle$ orheflisc iidicded

rhe

Aneodn.dI ro PFIiS 12, Cr,'it dri,h of th. srope of the stad|t, \P^rt of ,4"nurr rnptovewrc tu PFRS! 2011 - 2016 Cyct ) The anddnenb clari$ rld rhe dfclosure requiremenh in Pf_Rs l2j olhtr th.n rhose rtariig ro sunmfizd finmcirr i,fomarion, apptlroan enrit) s i'rerc$ in. subsidiary, ajoinl ventor or an asociare (or a ponion ofirs inrerst in ajoin rcdurc ran rssciac) rhar 6 dssjficd (orinctuded in r dispoel group L\ar is cla$nie,l) held for saG

lo PAS 7. SdleDenr otCnsh Floss' Di$losun rnnirrv€ The smendnens to PAS 7 requif s enrit) ro provide di$losu6rhrr cnabh use6 ol linaNial irrnenls ro evrludre .hanges in liabilliies dning fo'n financing aqlivities, includitrg both chlnses dnina |lom c$h flous and non{ash ch.nges Guch as forci8n exchanSe glins or 1o$et on ;ilial oD;li-tion or the amenddent! entnies .rc rcr rcquired to pflide conpmtive inromation io; preeding periods. Erly applic.lion .f dre ameidment is pemirled

Anedn.nl!

Anendmcnt b PAs

12.

/,c,e la.r,

R?.osnitioi of D*tEd TN Attex fot U,EatizeII

anendments clari8 rh.r ar e'til]_ needs ro coisderrvherh* rd kw renrica rhc surces'f u$6le plofit .gainst which it mdy mak. deduclions on rhe Eremal ol rhar dedDcrible tenpo$rv dillerene Flthemore, rhc ameidmenb povide Suidrnce on hos an entiq should ddemine tuble prctis and expliin lhe ciftunnancas in *hich raMble p.otu mav in.lude the reovery oi so'ne aseh fd moE &an then cany'ng anonnr

intr

on ir itial aPplislio, rhe mendmenis, .he change in the opsniig equity ofrhe c.rlie$ comparafie period mav be r@ogliz.d Ln openins r*iicd eonings (or in anorh$ componenr of equitv, rs appmpnarc), Nilh.ur ollocaring rhe qhaBe beseen opening rcained minss .nd other comPoren( of equLq Ean) aPplication of rhc anendmenB n Entnies applyrg rhis Elief mu$ di$lose rlft Enriries !rc requned

apply rhc

mendneft rertuspcclively Horever,

lacl

snmn.rvolSignificanlAccourii.ePoliciB R*enue is€cqnized to rhe exrenr rhar it r prcbable thrr rhe eonomic benefirs willndw ro lhc Conpdy and the incomc cai be reliably mersured regldle$ of rhdher the paymenr is being mad. Relenue is neasurd a( rhe Ln value orthe considerdidn recived.r ftceivable. raking inro accounr contactua lly defin ed rcms of ply'nei and exclud ing des or ddies The Company h6 concluded ihst it is actins asprincipalinallofl6 €venue anansemens. The specilic recognilion criteria described belo* mu$ako he

nel before

revenue is

Esgrized:

Diridend income is rcogniz.d when lhe Companyt rishr td rscsivc lhc poynent iserablished, which is ghedlly sh.n the BoD approverhedividend.

lnlerc$ imone is recoslized

lncome

as rhe

interi e.rues aki'g

tom seaicer k Ecqnftd shen lhe *ruLces

inro sccount the efiective yield on Lhe

have be€n rEndered.

Renral inomc under noncancellable leases h rsoglizen in $c Company\ natmenr of 'ncomc on 3 iraish line bash over the lease lems or based on a cenan' percenble ol rhe Sros rcvenue of.h. lcians- as novidcd uMer rh

Expen$ are €corded in rhe slale'nenl of ircone when incuned. Caneml lnd adminrhrive oxpenses con*irure cosb of adminiiering

rle busines.

Csh tiouivalcnls i^l' l*,t"a*irtr on hsnd .nd in banks Cash equivalent !ft shonrm hiClrlv liquid iNenmhts !h are Eadily conrenible ro known mouns otcssh vnh.rigiml maturirics ol thE (:l) nonrhs or le* and thsr are subjcd ro an insignificanr rGk of chtrges in value Cdh

and

Finarciat

seh and Financial

Liab ilines

c;mpa;] recoeiizs a fin.nciar 6sd or a financid liabiliq in $e sareme of financial m€nr P ih'* o Do-rion hhcn oMae. The

l,r. o r-..".,.."

regtrl.tior or conven(ion

B e er"bh hed b €e '.r '{ on rhe srtkmentdarc. in the narkerplae.r. rec.gnized

lntul E.anrto" o{{nm

..i

tal inn.unedL

d l \ Pl lo'r .s aPpropmre Liabilnies and otht frnocial lirbililies .! Frr'PL Financirl liabiliri6 arc clasified rs financial rre requird and the shich rhe invc$frenls The clssificnion depends on rhe Purro$ for whcre and, d iniriaL doginioi comprny deremires the clasific.rion olrhe fi.anci.l 6seis allow.d and lPpropriare, to-evalurtes $n desis!.rion ar $ch nnanci.l ]carend he .opeofP{sro,i' L fi<o !' e ' -' li' rnLkl a+F r, *.. , "r"rt'i" inve$menB (HTM) and AFS tjnancid aset held to-maonq rnd reeivables.

.\ll frnscill inshnenb are reqognlzd initially ft FVPL, dnell] anribuhble to tmnecton cos$

f.ir

value plus, in (he ca$

ol inveshEnc

no1

tin.nciala$eb include fiiaicial6sets d FVPL.loans and rseivable md AFS finmci.l6set a|ld lhe financidl liabilitics irElude other finrncial liabililies As of March ll, 2Ol7 aid December ll, 2016, lhc Company hrs ro HTM invc$nents and financi.l liabilines rt The aompan] s

s*!

or paid r. tansfer r liabilltv in m Fan value is the price $a( \vould bc @eived to sell an ordeny bmsaction berween na*et panicipanb .r rhc me6u€nent dare nr. hn value neasuEnefi k bsed .n rhe presumplion !ha. lhe tansac(ion ro sell rhc as*t or tansler rhc

. .

lnrhe principalmark.l tunE as*rorliability, or ln thc absnceofa p.i',cipal narket. in rhe nos advanhgeous ma.kd for the as.l or lirbil'q 'Ihc pnn.ipal or the no{ dvrnhgeo$ marke! nusl be sccesible ro by rhe Company lhefan valne olm aser or a liabiliry is me6u€d usi',C the d:umprions lhai ma{et Paniciprnt would uv rhen pricing rhc a$er or lhbiliq. asumingrhar frtkct pariclpmrs sct inthenesnomic bei

cirumnand and for whi.h sutncient dak ato .railable ro reasue f,if vdoe, mrximizing thc us. of rclevant obserrble inpus dd minimizinethe uq ofunobsenabk input. The Company uses vduation techniques rhar are.pprcprirte in rhe

Nt.nd

liabiliries for which lsnvaiue is measured or di$lose'l in lhe fimncial sbtenens de cdg3oried wilhin dF lair value hielKhy, desribed 6 iollows, ba*d on rhe lo*en lcvel inpur rhn k sisnilicanr ro the fanvdlue heasuremcnr as!*hole:

for L*e1 I Quored (umdrused) marker pnc.s in active 'nukds forshich the lowe* levelinDur lhar h signliicmt ro the f:n Level2 Valuarion reqhniques lalue h direcrly or indiedy ob*Rlble 'nesurement rhal n sigliliclnt lo the hn Leve13 vah'ation lechniquos for whLoh the losei level 'npu( value msurenent n Dn.bqflable

For 6sers and li.bilities Lhar ar rccoenized in rhe iinancialn.rcnenE on a rccuiii"C basis. lhe comDrn! determines *hcrber rcnsfes hlve o.cutred between trvek in rhe hitarchv bv i mr'" fte 15 \rluc rhe 1o$*

.-u..'.g."...',.""".b,..

.\!'nour'-r "Cf

me,sureme s',\hoLe)r'ftceidorea.hrcponiigperor

d noi'&tire mrker h diffetn( ro the rair value fom oder obseo.blc currcnt marker tansacrions in rhe sne i'Ntuhenr or bsed on a valuorion technlque lhose vdables include only d.r.lrcn obserable na*et the Companv ftcosnias lhe dif'erencc berqeh the tansac(ion ;ri.e md fa; niue {r 'D.t l difierence) in lhe sblemenl of .onpEhensive incone nn1;s ir qualifrcs forrcosnirion !s $me other tvp€ ofsser orliabil19

wh;e rn;hns.ctiotr prik in

vdiables used is madc oldab shich is nol obsenable, Iho dlfeEnce b€it€n the and modcl value is only rccogr,7td in fie n.r.metrt of onprhensive income rdstion rhen the inpus becone obseryablc or shei the innrudent 6 dersognird. For each tansacrion the Compd] ddemines rhe appspriare nethod of Fognizing lhc Dsv I difeEne lnount ln cses

*hre

priP

and rec.ivables are fiMncill a$eb *nh fiied or deieminable prynenh and frxed marDfii.s lha! ft nor quored in m acrive marker' The, are nor entercd iilo wnh lne intmtion of inmediale or shonren rcqle and art no! dsigmted rs AFS fin!rcial ase6 or lin.ncial rseb .r

Lms

are subsequentlv mersurcd at amon'zed ssl usingrhe EIR method,lc$ allowa'E for impaimcnt Amofrizd cos is colculded by taking i'tro accou my dhcount or premiun oi equisirion and fees rhar !e an intesrtl pan of tl'e EIR

Ater innial measurement. lo.ns antl Heivables

Cla$ified undq lhis caregory are lhe ComFny\

and cash equivalent and rcaivables

ssds ar FVPL include fitranciaL aseb hsld for tudi.8 purloscs. dcivalive instumen!! or lnd* desiSnared by nanalemen( upon lnnrll rccognirion as at rvPL. subjed ro anr ofthe Financial

rhe ddi8,alion elininares dr signinclndy rcduces ihe iNonsistent teahenr lhar would

othe$iearisefrommeasurinethe6*horlirbilnicsorFognizinCsrinrorlosesonrhem lhe ssds and liabilnies are pln ofr group of finaicial rset, financial liabiline! or borh Rhich aE m.nagcd $d their perfomanca .rc cvaluded on a frn viluc basis, in acordaice sith adeunenled rilk managefrent or rnresrnenl inGS/, or the financial idrumcnt conrains an embended derilalire, mles the enb.dded deivatve des nor sienlfic$nr modi$ the c.sh no*s or ir k clear, *nh litle or no mrllsis. rhat it would not be spaately rc.orded Financialas*sand financialliabiliries at FVPL are recaded in rhe natcmcnt ol fi nmcial pN iliot at fat valG. Chlnges in fair value ne rcflccred in nt $areme ofincone IntEn oh.d or incuftd i! acorded in im*e$ income or expenle. respeclvcl!

chsinen as financial .sss !t FVPL m the ComDany s $ve*menrs in Lisred equiq secmties held lor tadiiB dd inveshent in govenmeir securiries clxsified undd fimncid asds ar fat value thrcug:h prdlir or lo$

6*6 ee Lhose *hich aE d.sigmted as suqh afd m Purchased .td held and m.y bc sold ii relpons ro liquidity re{u'renen6 0r chanees rn turkcr in'lefinirely. condilions. AFS frnmcial assb include inveslnenb in equiry secufties dasified under lhe avaihblFfor sale fi mncial a$ds ArS fimnci.l

FS linscid 5s*bre measurcd fatwlue The untallzed gains Aner inilial 'nesuremenr. md loses arising lro'n the lair laluation of AFS financial a$et aic excluded frcm repoed emin6 and rre ftDoned in the $ar.me oflinmcirl posnioi and $arement ofchanSes in equilv

when rhe secuit is dhposcd ol nr cumtrlalive Sain or lo$ preriousl] r4ognized in the iatemenr ol cban!.s Li equit] is rso$izql in thc $aremenr of incom€ Whcre the compmv to be dkposed ol on a nnl holds more rhd one invesncnr ii lhe sa'ne kcurity, these m 'leemed rhe in li^t{ur b^h. Ile lossr arisins fron impdimcn! of such inveshent aft rscognizd 'n

Olher linanclal liabilitie! m non derivalive frnocial lbbilities Rith fiiql or detenninable palnenarhatm norqudtsl inanldive ma d Theseliabilniesarc co$ in rhe sbtemenr of linancia I posirion. Anon iar ion is detem ined u sing !h e cffdtire inreren

Ile

Company\ orher financill li$ilnies inctude accdun6 payabl. (excludine sbtutory lidiliries)

accrued expenses

$*$s

at each reponingdarc Nhethcr!nnmcialasd or sroup olUiarcial6sels there is objecrivc.vidence rhat an i'npaiment lo$ on financial a$els cr.ied ar amodizd coe (e.9., Beivablet hrs 6een incured, rhe anount ofrhc b$ n mearuEd as rhe difierence beN*n ihe Nel s c.rrling.nounr and lhe prcsenr value olenimared furure clrh

The ComFny

i! impaired. lf

the !$ct\ orginll effective interei rate Tine vallc is genenlly nd considered shen dr elfed ofdisountin! is nol mardial. The qarryinc amounr of the dser shlll pemanent The Conpany willEduce rhe be Educed dnelly ilthe impanneil ^6se$edtobe us ofanalloMnce ac.ounr rfthe impaiment i! asvsed carryinC anourt oirhe r$d d\roush rhe ro be renpomry. The.noun!olrhelosshlll bereagnizd inthe $aremenr ofincome whetr lhe book $lue exceeds lhe i* value of the financial aseb

floff

di*ounted

fiN ssesss whether objedive evidsncc of impaimcnr .xisls irdividually for finmcial aseb thar ae indiridudlly signilic.n!, .nd indiridully or colledilely for financial .s*6 thar orc not lndividually significmr ll it h detemined rhar no objecrive evrde.ce of inpeiment exi* for m individually dsesed financidl a$cr, lherh$ signiticinl or nor, rhe aset is included in a group ol tii.ncial6ser qnh similrcftdii rnk chancreristics rnd thd Soup of finanqFl s*$ is collenvell3se$ed for impaiment. Aset that are individmll] asssed for inpaimentand for rhich an imprimenl los isdrcoitinucs ro b. reqogni^'l ore rot i.clndedin . colleclive o$c$men. of impanmeit The Conpany

lf in,

sub*quent period, rh€ dmount ofrhe impdiftenr lo$ decrees an'l die decreare can be rel.tcd objeorively ro an cveil occuring llier lhe inpsnme.r *as rccosni-d, Ihe previodly Eosnird impaimenr los k rvetred. Ary subsequenr rEve^al of .n inpaiment los B does nor rccogniad in lhc s6tcnenr ollncone, to lhe exrent that nhe crrying vah'e of ihe '$et exceed its amofrizen con d lhe reverel dat

!grae!rt!!!-eI!i@sd4sEt!qU!@EE[!d]]ni6

A financiar a$et or, rherc applistL., p"n financislas*t, is dcrec.snitd qhci "

lrl n*""r"l **r -

p.n

5 sroup

oi si'nilar

€ntaclual righs to reeilec$h nols from lhe aset have expned! se 1sJ' t.o'e.ah f!\\' fr r rhe "..cr' I I'a d rmed rn rhq (o rr1 'o r'e idlJcla] o 'eL'n u de d p!* houdh .bpa.rc;bM\ rhe- m ul. *ihour 'rhndpt4 *.., t" (", rt'"..np.n,' rEn remd uo$nr s h 3 i c n'3nd'e*anr the

''"i"..-'. or rh;A e o'tb,ht

the aser, bur ha!

.sscr

trnsfeftd contol ofthe

snr"lrall''r'r'rnJ'c*sid

when rhe ConFnl has rnnsfened it! rig!6 ro rec.ive srh floss fio rmnsiertd nor re;ined subnmdally illlhe rGk! and re*ards olrhe a$et nor lmnsfened connol of (he as*!, rhe a$er is recogn iz.d ro $e exlenr of rhe c ompanv \ coir inuin! invo lvcment n rhe as*t ConrinuinA inlolvemenr thar rakcs nt form of.8u!€ntee over rhc tmnsfered asct 6 n*ured ar rhs lorer ofrhe oiginalcarrying rmounr oi lhe sset and the n'aximum .nouil oi considenrion rhar rh€ C.npatry could be requircd ro repay.

A financi.l li.bilirr. is derecogiizql

when rhe obligrtiotr unde. the

li.billv is dischargcd

existin! financial liabilit is repla@d by anorher from rhc s.ne lender on subs6nriallv difierent rems, or rhe terms ofan exnriiglilbiliq rre sub$.n!iallymodified, such an.xchanse or nodifietior is ftared rs a derecostririon ofthe oriSiml liabilitv and th. rcqognirion of a ner {remfl' "f /ed Lsb'lt md hed'ne'en.e rlfle pe.',e (ar4'nC rorl 'n 'he 'crog 'n When

includes parkLis slob thrt de held ro be leased our rder one or more openring leases. Thcse prcpenies are initiall! ncsured at con. *hich comprnes ia purchAe pric. and dir*dy anriburabl. exp.nditore. Didny anriburable expendnurc copiEli-d as

lnv.sheil prcped!

pan of the invc$meil prcpenies con includcs polesional fee ftr lcgal tinsf* rdes md other hnectidn sis lc$ scuntrlded depdolon

*fl'cec

propetv

the inveiment poper] co'nPriss of purchAe price md an] didrlv anribubble m$s of bringin8 the sser ro ib Rorking condilion Expenditu6 incn.d aner Lhe invenment propeiy hos been put into openrion, such as ftpairs and mainrenance, arc nomllv charged ro incone in rhe year ihen cons .rc i..ured ln situations rhcrc il can be cledrlt denonstured that the €xDendiluEs have rcstrlted in an incrssc ln rhe iirur economic bcrcfils exp*ted ro be obbincd lon the use of an irem of inwsrmenr proPert] belond its onginallv a$6sed slandard ol perfomanca, rhc expenditures are crpiklized as atr sddnional oi of inveshenr Dtupen!. The Company mcomb lor it iivesNenr p.opert at con The initiil

.o$ of

lnveinenr pope.y h d.rccogni-d when eirher it ha been disposed oforlhen rh. itrvesdent poperty G permnently rhd€*n fon u* and no luture 4onofric beEfit k expecled ftum i$ prcperr ft disposal. Any gains or loses on the direm. or di+osal of d 'nveimcn. rdostrized i', rhe sbtenenb dlincomc ii rhe year of reriremenl ordnposal. Tansfen are madc !o inveslnent prope!_ ihen, and otrly when, rhere h a ch.ngc in use, elidenced 6y rhe end of o*ne.occ0p.rion, comne ncement ofan op€raling lco* ro andher pany or bv the end o I con$ruction or deve lopment. Iransle6 are nlde trom inve(menr Dop€rty rhen. and only !hen, thee k a chanse in use, evideiccd by con'nencemenl of o*ncrocctrprtion or comnencemenr of developfrcnr wtrh a ! ie* to sell

l$se k b.*d on tbe subsbe ot ol lhe mangcnenr b the fullillnent reduires .n Bse;smen! of lherher of ; srecific as*t or a$et and rhe.nansenenr convev! a rishi io nsc rhe is mie atur nrceprioi of the lease onlv if one of the follo$ns app

*heth6

an ananccment is. orconrains, a

'esl

(r)

ol lhe mnrocNd rems. orhd than a reDe*al dr 'xreision dar rem or unles iul r. ***"t "pr;" k exercised or cxtension snnted, exrension ws iniri.llv iicluded ii rhe lease rcmi (c) Ther G a chsge in ihc dete.mination of whe(hs ftrlfillnsn! n dependcnr on I]1erc is

changc in

(d) Tnere i!

subsdrid ch.n8e

the.ser

Leass *here rhe Company does nor rnnsler sub$anli,llv allthe nrks and tqfds of o*n*slrp in pmfir oi '. *""u" a*"iii"a nt.p-dins leaes. L.dsc palmen6 receired are Hosnized co$s licund lnnid dird lease trm bsh ov* the or lo$ a5 nrome on 3 {raishtline 'n over rhe negotiating le6es m added ro the canling a'nount of nt Gr*d 6sei and re'ogtrized c; tm_on rhe sane bsis 6 rhc rcnbl i;conc conrinsenl rcnb aE recoeri-d as rcvenue in the period in

*hich they

are eamed

*h'ch

e of rne Compd r b;mfir.;r."ne,Jpd re{F'ztd e 3n D.

Oood-ns le.

ub'

d'itllJ I

\k'

8nd

' ' ,re *il, -el< o' oPen'ig leF.olkcri'tr rhc'}eremo' lincl'5 i o'e 'n.ome!n3 'is}'

n"].idl rde,ne L lhq siedi'.lu*d unle rhe i":'i^i.r t'u"tr.*.DU-br',o'sno 'nor nr r.ou'.e €mb.d) n"ei o-. oenefi'.' a1re ALonr:"B-'"'* ; -"*;! ,/.d n, he rdn.'alssHnel ou' d'- oro she 'r 'os !reLono'n' be e'ir n

a$.ls $d liabiliries for rhe cunenr lrd Prior p€riods m medured d rhe anount Curenr lass u*d exD*ted b be reoovered fnn or paid 10 the rasiion aurhoritics The iax rarcs ei !o mnpnre rhe amount are rhose rhd m .nacted or subnanriallv enacted bv the rcponing &re'

Ixr<Rd s p'o\id.d o s I e- po?r d nern,e. d rhe ft ro-'ng dr. oe qee' Moun . ro' fnrft Bl rporin' purpo e or 6*F sd lidb'lr'e md se .lo

rhe

b b6_

'ns

r*ogniad for all tMble renPonrv difiercnces Defened i!-\ 6seh art rcsgnized for all deduclble cmporrr' difierences, orrlfofrad ol unused rox cftdns fon corpode income tax (MC IT) over regu lar corponte inconc a and unuscd ner exe$ qilr be 'ninimum oDe'',nr lu\\e' \!ao\e' (\Ol O), r. re e{. ' rha ts p'ob:ble rnar resble ptufir ' of u u ed L\ r\a l.b[asrnir "ni. rhe d.d..r b' re- portD d lk'en.e,n l he "'r)rnud uriliad credits to; exce$ MCITand urexpired NOLCO can be Defenen tax lirbilities are

anounr of defcred tu asds h Evicwed ar sch rcporting dale and rc'luced to rhc eftnt rhal ii is no lotrger probable rhar sufiicienr bxable pmfii rill be available to allos oll or pad ofthe defered tax asel ro be urilizd U.recogni-d deLred ;&h rcponinr dd. and arc raogniad !o the exrenl thar ir ha b€come probabl. dEt turur taxable orofir will allo* $e dEfened d $ The

.wins

Defered

rd aser.nd li.bilirie are fte.sured.r rh. rax arcs rhar arc cxpecrd when the asd is rcalird or rhe liability is setlen.6ased on lax ntes (and tax bm haclcd or subv.ntially cnaqrcd !r rhcrcponingd..c.

b opplybn'e

lsr

la*9

havc

EEnin6 rershare (EPs)

averqe nunberofsharcs outrandiigduinC the year alier grvrie reroacnv. eid for ony *oqk divideid! d{ Diluted EPS is computen by dividin! net inone applicdble to commo. 3hnes by rhc wcighlcd avcragc nunb6 of common shar.s issued and ou$oidine duniS ihe yen after giving eilecr to asumed exercise ofnock options and retoadive effd ofnekdividendsdelared Basic EPS is compured

rhe basis ofrhe weighred

E4!rE CapiFl slock is nc$ured a. par vlluc for lll sharcs hsued ofribnhble to the i!$atrce ofne$ shares rrc sho*n in equit!s a ded,'ction lrom prcceds, nd of rax When rhcCompsy purchas.s irs owi.apiral $oqk (reasury shaE ,lhecorldeElion pa'd. includingatry ahribuhble increnenblco$s, k deducted from equirr_ unrilthe shfts are cancauen. reisiftd or disposed of Where such shares are subsequent\ sold or reissued, any oisidcmrion rccer ved, ner of an! d nedy anriburab le incrcmenu I ransod ioi coss s d lhe rclared lax eltack is

sninss (deUcil) rtpresEnt accuntrlatn income ind los*s dfrhe Conpiny considemrion olany chmges i',3cc.unti',B polices d en n applied ftbaciiveLy Rerained

di$ibution

and wnh

Dividend

is approved by lhe BOD

SignificldlAeounti.gJudgn..is.EslinntBrndA$unpliob3 The preprdion of the accdnpmying finmcial naGment ftquies nrilgemc to makc judgDen$, e$imares and rhat aller rhouns rep.ned in fte nn.icial salcmcfis aid ^sumplions Elated notes. The judsnent. estimats sd r$u'nptions used in the fina,cial iarenent ft bas.d upon nan.aenenfs evaluarion dl relevanl fach aid cncunstanes as olrhc drlc ofrhe Company \ financ irl iaremert AcruslFsulrs cotrld difer honi such e$imts ludgnonb add e$in.tes ato smdct'ally evrltrared and .E bsd on hkorical experience and oL\er frb6i including expectaliois of luture evei6 thar arc bcheve'l lo be rcasoMble uderrhe

ln lhe pnes of applyin8 rhs Compan' s acountin! policis. management has dade rhe followingjudgmenls, apd iom rhose involviigcainarions, *hich h6 rhc mos si8nillenr ellect on the amount recosnized in Ihe fin$cid $stemeft Thc Comp.ny\ n.n.gef,enr has hade an *sesmenr of the Cdmpany\ abiliry to ontinue.s a soing concen md n elnfied thl1 the Conpany hos lhe Esources ro conrlnuc in buslnes for lhe foreseable furure. Funhemore, nanagement k nor Nare of my narerid uncetuinties thar nay can sigriilcant doubt up.i the Comp.ny's ability to ontinue6a going concm rherefore, the

finanridl.h'e-enr.61f u" ob'prcpredo,.o,net.n.e.nbarl Opsdin:4 k6e

annilndb

Canpary a\

lesil

pa*ing slos shich are being lsscd our to . lhnd pany. The Conpaiy does nor tansfer subsbntidly all the r(ks ord bencii$ ol owncFhip of rhe .$er. rherefore n is cldsilied 6 oper.ring le.se The co'npany owns

sd A$unorions Tle kcy a$umptions cofeming rhe tlture and othq ke) $urces ofe{lnalon uicenai'ry ar the naGmenr of iinanci.t posnion d3te, lha!have a sisnilicani.isk of.ausinga marerial dju$m.nr ro lhe erry'ns anou'k ofa$sa dnd liabilities wnhin rhe next fimncbl year !rc di$tr$ed h€low. Eslimates

Dekmindian ollan ntue alJinahciat 6seb on,t tiabjtitiet Thc fair valm delemin.lions aor financis .s*$ and tiabitnies m ba*d renenltv o, tined n.e o blure' o de,flp tix rE nd,fldt derem;aote d I 'rre' liqoidrting the posnions h reasonabl) exp€cred ro aFect prie!, fair vstue is based or 'n!*er ei$er inledrlvaluatilo modcls or manasementse$inare dfamounbihltcoutd bc rertird under cuftnr mrketconditio.s, asun,i',C an orderL)r liquidaiion over a r*onabte p€riod otrjme 'fte Comprny based ns tan vrtues for fiEncia mscr .nd lia6ilities oi ouor.d Drices in acrive market tar i'l.n!iql a$eh or li$ilirLes

rhecrryncvalueof findciala$e$ FVPLandAFsinE ciatasehamounredbe50.t6.id nilllo\ respecrively as of March 11, 2017 ard 81715 mi ion and Ft4966 ni ion, rtsp.ctirclr,.sof Decenber3l, 2016. P105.55

htituan .Jfan ratre .Iuhquate.t

equitr

*lec

The Compatry us.s nsjudsnenrto unquoted equ't) inveslm.ns and male

p.,tili:

.tass6e.t a:

tFs

nos appropine vltuarion

merhodotogy io vatue nt asunplods rhdr rc mainll h6ed on narker s itions eristins ar each toponins peiod. As olMarch 1.2017 and Dccomberll,20l6, rhe conpan, valu.d lhe unquotedequlry *curiries clasified6 a!.i table-foFete secu.l ies, usingrheadjusbd net aser rhich is r conhinarion ofrhe in$ker $d tnsme appmehes l irvotvcs 'nethod ihe ftt value ofihe as*s direqrly measurine and ti.biliries ofrtE inve$cc conpany 1.he fan value adjushens arkine llom changes in lair vdue of unqrored e4uib, securnrcs arc tu ] he

oJ iry.ti.kenl aI at s narc idt 6s 'nre Company detemines tld AFS financial ^ 6sels .rc impdned w|en iheE har b€en a sisnifioi or prolo4ed deline in the fin valuc beloi irs co* Thisderemimrion ofs,hal issignifiuanror prolonSed reqnifts j!,lgnenr ln nariig rhi judsmenr. rhe Conpiny euluaies amoq olh$

Erattukn

ticto6, lhe nomal roldiliq' in rhe shre pice Ii addirion, panictrtrt), tbr unquord equi!hirument. ihp.imenr may 6e appropriare she' rheE 6 cvtdence of dereriomlo0 in rhe Jilscial condnion oflhe invcne. induiry aD'l *cror pe omance tike changes in op€nrional andnnmcialssh flows Any indicarion ofdereriorltiotr inrhsabove trcton caf havc.negarive inpact on the fair vdrc. Had rl@ been a significanr o. pDlotrgcd decline in fan vob. over is co$, lhe conpmt shoold ls8nia net realizcd bs nom Afs financiatisser in lhe narment of ofAFS ilnanciataseb anDunlcd !o *150.55 niIion aid p1,19.66 miltion as of March rr. 2017 .nd Dece ber L ?016, respecrively Thcrc .re no impained to$ recoerized by the Company ibr rhc 1' quaftr 20 | 7 aid Decamber I l. 201 6 Tbe carrying values

Etdttuitu .linpaimht .t E eiqbtt: The Conpary rcvl.$s ils rcceivobtcs ro ases inp*'nenr d tedi on sn annuat basis tn deleminins whdler atr inp.imeni lo$ shoutd be reoded i0 rhc y.remenb of iicone, lhc

Company n.kes judgmenh 6 ro whdher rhere n.ny db$aabte dara indisring rhar therc is a measurrbre decrcile in rhe esltnaled fulurc crsh flows ltum irs Eceivabt6. ThG evidence nomally includes direct iifomarion abo( !h. financiat condniotr ofrhe bomwer

Allo\yane for inpaimcnr loses is detcmined basen.n individu.t asesnenl. The comD.nv has nol Mognized imp'imcnr toses in t! quder20l7 and Dece'nbqIt,2016.

crrling

values of re€ivables amounred 2017 andDecamberll, 2016, rsp{ively The

rol0.l6 million and

F0ll

million as of March 3r,

t:jtindnD oJaqftmd 1d asds

$16

it is pob$te rhar be rvailable rssind *hich rhe l.$es .ai bs uriliad Signifisnr hmagement judgment i5 Equned ro deremine rhe amounr of defeftd d r$.$ that car b€ rco8niTrd, ba*d up.n the likely timingc.d leveloltlrurc Exablc profir ro3erher liih furure h Defered rax

are rccoeiiTed for alt unusd rax los*s ro the exrenr n\at

fnhre 6sble pr.fir

iill

The Comprny did nor Bogtriz,letmed as*r mounlins c0.93 ss of December 31, 20t6 Mai.gsmed brlieves thar i( ma] pnbabtc rha!suficie raMbte in6ne rittbeavaitable

'otbe in rhe near lorcseeable luorc .gainn which rhe income

benefit can

be realizcd.

c,rh Fquiv.lehs

Crsb rDd

3139J.rs

5,711J45

3,306,t35

lt,7:5rr3

mrcs Cash e4uivrlenr rrc slDn bnr invesnenb that ee mlde lbr v.rylng periods olup to rhrce mondE depeidingon rhe imneJiare qash rcqulrenenh of the company md eam inrcrer d rhe prevrilins shofriem ptrenHl .ates Cash in b.nks eam inrere{ at rhe prevallitre bank deposir

sh in bsks an,l c.sh equivalsnr amounred b F0 0l millior, F0.l2 nillion forrhe l" qmn$ 2017, asofDcMb* I1.2016 and D.{emberIt,

lnrere$ incons emed on

milli.n

d P0.23

Itrv€tmetrt in Trust Fund

rui

The ComFny estsblishod a fund (he Trusl) *hich is bcing adninisr*ed b] a tomt bank under ru! asenenr The delaik ofrhe rtri ftrrd basen on fie finarciols6rcnei6 issued by rhe

rru{e

bank follow:

Finarcial ascts Available for

d frir

value lhrcugh

prcft and

lmncial .ssets 24,519,373

Accmb Flable

an'l lccrued expeNe!

Prirbdl'urdend Accmubred

tur

!3.03b.,11'

tund inoome

(kist

(3,6r9,033) (533,163)

Tiu$ ahd income (bst ld the year A!(umuhrcd run rud iicoN (bs) arend of

The

lsb,

liabilnies .nd p€rfonance.f lhc

the Compan, for

finacial

slalemenr

'3,0.04 "

fund

e consolidared in

peenbrion pueoses

the Conpsy s fin..cial

eil

the.rltiable acsunh ot

carcaories

s follov!

209,369,910 Th€ fimncial

(iiduded

a$et. ercept for csh

and cash

cak8ory above)

deFitcd

in each

Firancial As*bft FVPL The Compdy\ financiala$els a!

FVIL

3t3,397 209,14q152

equiulens. shoflrem inveshens and receivabtes folowsl

caried d f.n vatue

The rcr gain on fan valu. chm8$ on finmciat

rcl.rd acqukitior cons

asss ar fair vatue rhmugh pofi or tos amounred niilionand ?6 30 ni ion forrhe l!quder20l7 snd for rhe rea6 ended D€canb€r I t. 2016, rcsp*rivell, while rhe net to$ on fin value . hlngos .mounted ro*12.25 ni ion torlhe year ended Ddenber I l. 20 | t.

b*2

'Ihe noremenrs in financial ssers ar FVPL

Balaice at begiming

r',

\.Lue

ffi;i

are as ibtLows:

ofrrar

gJn. rb\., F,

o04d dlm!

\e,.

1.o99.0b{

AFSFindcialAs*b jock het,l for longrerm inve$nenr caried al Lir vah'e The.aq-insvaluesofrhss inve{metu ift as fo ows:

AFS financial dses consisr of quoted and unquoied shms of

purro*s

and d€

R.soures CoTlm rrn

LP E

RCI

Hemsa Ec{@ne Dcvelrp@ft Corpomrih (HED()

r34,153,t22

o2.353,884)

t50.550.3.:6

The hovemerG in

AIS lif ancial rsds

arc as

tolows:

Babncs ar b€gimhe ofl,€ar

r 12,094,759

2,433,713

o,s93,687) 150,550,326 The

nov€ne

$bsiplton palable!o HIjDCas ofMarch 31,2017 Md December3t,20t6

Babnce

vo.e-en

12':]53,33.t

begiming of )€ar

in rhc nc.

u'sli^J

gain. 01

A'S fi

dn.

k r.r.. m 6

lolloq.

(unaudjiod) Balance at beginning

12,151.33,1

(Audied)

of)€ar

Gain (kss) reco3nizd h o!he. compreherive

o,s93,637) Tmnsfercd b plofi and hss

The Compaiy

torrl invesdenrs

PERC are as fottows:

t5932,332

PERC providesa,lminisMrne. accounringond lcgal seaices ro rhe

conpany.

tunaudned)

,4utGC,

162.601

Reoeiy.ble from Weahn Securiries, lrc.

1564

Dividend iDcome eamcd on irs invei'nerrs mounred to p0 05

nillion for the l"quader2017

I6,720

and

n|tion,

yer end.d D&emberll,20l6sd

p0.15 miltion sdrB.Z5 20t5, rcsp€crivet)'

Advanc6 b $pplie6penainsbdo$npaynefu maderosupplie6 Thcse art lpptied again$ fur,re billings up.i ompldionof drsenies Receivable

lom HEtxl penainr !o adv.nces to HEDC lo 6sd rhem in conpt€ting ns ipprcved s *ellar ro sushin its finaiciitrequireme'ls ii rhc cominsyu

pr$sand program!

Reeivable fton wealth Securitiesj In.. pctuins ro renbl income fron leased parkine spo.cs ThecaryingamounBdisclosed abdverosorabtyapproximre fln votucs For lhe

remr and condnons of relaren peny rans.dions, rete. ro Norc I I

Agine.faeounb rciMble

Dividcnd from virious

Pr56,0rt

t113,6]

0.J0dr$ J-o0d!]r

bt-0r,

dr$ Divldqd ftun

money mmkr

Pmk

Tob

rt,.30- I.

T5,\'<fe.'. rhc'!o,, 3 I,

2017 a.d

f'^

Deenber I l.

ng.to..qned

prefl4h

sp&* oMed

t,.a{ p,,., r}",."

b)'+..noan)

t,rlf

rrtue

s ta olv,n , ,:0 d o D.cembe. ri r0 0

20I 6, lhe

erio6

or,r. A, o Mhh

carying vitue ot i,Ne$menr properr! foltows:

rh.

-23

'fte fan value of the i.veshenr property onounted ro P500j000 per slol as of March 3 I, 2017 and Dccembq3l,20l6. Ihtu hA besn deremined on rhe basis ofr*ent salesofsimila.propenies in p€fry and bkfiC rnrorcc.untlhe econo'nic coidilions pevlilng alhc limelhc valuarion s.s mrde. There are no relden cons for lne opentions ofthe

1l Relrl.d PirtJ Tnns,.tions

Rclatcd pa4 *l.rionship exkr when one ptrny h6 abiriry ro connol, dircclly, or indl@dy rhroush one or more intemediaries, lhc orh*pin] orexeris silnificanr influence over the dher p34 ii nakiig fin.nci.l and opemring decisions strch rekrioithip ale cxhc bd*ccn md/or among enrities. which rrt under comnon co tul *irh rhe reporins enteipnes and ia key nanagement peBonnclj direcro^, or i6 shareholden. rn conndeiiS €ch rc1.lcd pan) relalionship, atenrion is direded lo lhe subsance ofrhe reldion:hip, and nd nercly rhe le8al

The Compmy

ns €gularcondud ofbusines has enierd ioro $e ibllowing hnsac.ions $irh relaled panies onsistins of reinbtrfiemenr ofcipei*s.nd manasenenl and rc.unlinS senices

Tne Company\

tnnsadions

n.Gnenr of fin{clat

positton inctude rhe foltouing

mouns

resuttine

tlsn

ith relaEd panies:

3l-MrFI0ll (|]nr ftd)

ll.De!.20 6(cudired)

1t)27 HEDC

As or Msch 31, 201? and December 31. 2016 rhe ComDan! h6 tt.3l% inveshenr in HEDC amounlins ?122 o0 million, ner ofsubsriprion p.yable. The companl lho hotds invenmenr in

lERa rorali',9i29.91million

and P30 93

nillion d ofMarch t t,20t7

Ter6 adunniians aftds@iort ||ith tlldted pa ies outhnding baluqes ar le.rend are unsecurcd. inlecj-free have

ber

no guamnrees povided or r4eived for

sy fhrd

and

Deemberll,20l6

and sefrlementoccu6 in c6h. Therc padt rccaivables or Fyabtes The$

mainlt consistof adrances and reimbu^emenr of crpcnses The Conpmy hasnor recogn'ad anl imprim€nt on rmounh due lom .lliliaed con,panies lor rhe l" quaner 2017 a'd lor rh. ydr ended Dsen,ber3l,20l6 lhis asesmenr; undenaken each tniancialtear rhreuetr r rviewof rhe financirlposilion ofthe rtlatd pany and dicftarke! itr shich the rclared prny operabs

'lhe Company\ principaLlinanoi.l asses aid li.bilitics iNlude cash and cash eq aM iiveshent *cunties (finsicirl as*. ar FVPL and Af_S financiri as*rt, rcceivabl.s, rcount palable and accrued expenses and $b*riplions pry.ble. Thc $ain purpor ot the* nraiciali'srunenb 6ro fuid tl'e Corpatry s wo*i"ScspLhl rqunen'enb

ran valus of Fi"rncirl linrumen$ fhe methods and rsumptions med b] the Company in eiimaiin!

Careeones rnd

'h?

fan,il!rs ur'he fna

ial

md ash ?grialent and re.ei hles Duc to rhc shomem narure ofrhe insrument. carrling anounG approxifrde fair v.lucs.s of Cash

Fatrvaluesm gcnoall, b.scd on qudred markel pricas d reponins dale ThkhmderLevel catesory or the

tln rslN

hiemrchy

For quored equirr. secuaries, lan valus .rc b.sqi on plbl .hcd quu'ed Lcvcl I cdegory of the frir vah'e hiermhl

pr.es

lhG is

!nd{

For unquotn equily ycurities, lair values rrc derenni'rd unie lhe adjusEd nc! 6sd method *hLoh hvolvcs dlrectly hedsurirs the frir valE olthe rsds and liahilirles olthe iivesle comprny. lhis measuEneil lblls undq lilell in the frn vahLe hiermhy

)rconb prBhle ud @e.t etped.: Csrry$gvalues.ppmximate fai values due to theirshon,rem carorg valuesappoximaE fanv.lues

nalurc

b€caus thk is dne anddena'l'lablc

seencn. obiecrives rnd poticies The Conpant s fimncial insrumenrs conprisc slh ind cash e{uivrlenbj shofriem irveshents, recivahles, linanciil assb ar |VPL, AFS lii.nciat ase6, accounb payabte and accrue'l expenses md subscnpl ion s Da)rab le. The main pueo* of ih e$ fi nancial innomena h b fu nd irs own openrion! an,l capnal cxp.ndntrr{. lnherent i'r usinE rhcsc fin.ncial ininmenb the iallowing rnks on liquidilv. markd aid crcdir. The BOD rerieff aDd apprclet potrcics ibr Financial Rirk

mdacine rh.sc rnks. Also, the Audii comntee of rhc BoD mcer reguhny and exercises 0ve*ighr role in manlCiferhcsc risks. The ma'i nnmcial isks arnins lrom the Conpai]

fiD.ncial in$rumenr

liquidity risk,

.25 Liquidity risk is the risk that (he Compai! is unable ro m*r its financial obliganon when due Conpar) has s0bshrial $vestmen6 in sharesofnock whichrc not lisGn in the Philipplie mY be mdily conv.nible ro hquid assrs nec*sary b Stock Exchanec and nay 'neer 'or i un'tuoled equny porentia! additional liquidiry rcqulEneirs ol the company. lnvc$nens *curirics licltrded Ln AFs invenment amoumed ro Bl22 0 million, nel ofsubscriplloi prFble, 6 olMrch 31.201? and DecambsrSl,2016

The

is c6h potrion a'ld ovemlllittuidity poririon ii.s*sirg ils exposure to Tne company maintains a levelofcadi aM crsh equivdenb deemed ruficl.trt !o liquidiry finmce opentions and ro nirigare the efec$ of r'lucrurtion in cash nows. The company monitoB

nsk

Tie Compan] s accouns Sub*iptionspay.blc

pdyable and ..crue'l exptNes

rrc all rnled on a mofihly bsis

arc payable on demand md rre non interes

bern.g.

Theeblcsbdo{ sunnaaze the mhriq pnfileoftheComp.n}\ fin.ncial ssels andlia6ililies as of Mmh ll,20l7 and Decefrbn I1,2016 ba$d oi contacrualund

50,157,303

3,306,135

25,000

, AccNd lnleft s. F.elvlble

rJrs 90,236 74,359

r5,443.r69 rs. r'r.r.r 69 4,533.915 4,533,915 Nonlbled €quity secun!:

|]rJ$,r22 3,519,004 3,5r9,00r

r34,353,122

r62,40{,}r0

.I2!,!21,70.1

r62,601 r62,90,r.2r0

209,,t25,652

Invshe

qoYemed scrirEs 16)

?63

ror,ooc.

62,t63 rd1004,r30 ', rGr.s

of srbscription polahk ta flLDC .nauntins ia p 12,J5j,331 Pre:mkd 6 a dedrcti.n to AFs fot jnonciat sutenent preynlatiu

22 102016

203J3!Jtl

tltpat.t

Mtrkd risk is rhe risk of ro$ on furure ermirgs, of lan v.lles or on fururc cash owsrhar na] resuh tum chanees in markd prices Thevilueofann$cialln$runenrm,ychangeasrrcsutt of changes in inter$ at6, foreign curency exchanges rares, comnodiry pricc!, eq;iry prices and o$er market chanSes lhe compant\ ndker risk emamrs t6n irs hotdings jn,leb!lndequu E uitv Price Rhk The Coopany closely morito6 lhe prices of ils debl and equity securities as we as roc@4onon1c and entty^pc.ifrc facroB *hich qoutd dnecd) or indi@tty.ffer lne

pncs ot

In c.se ofan cxperd d4line in ib ponfohoofequib, securitis, rh.conp.ny rc.dilydisposs or lEdcs lhe s*uritie! forrcpl.cementwnh morcriable rnd i6s risky

such i"v6rhenr secu ies arc subj*r ro price risk ro chanses n mtrKer 'luc arising e ither frcn facron spec ific to ind ivid ua1 in {run en6 or rhe! D! uq 5, innrumeiB raded i'r ihe marker.

There

no signiucdnr

concenr*ioisotcredn rkk rilhiD lhccorpd,,

Therable belo$ shows the c.mparalive summTy ofmaxrnufr crenir rjsk exposurcs on Unaicial mstumenb 6 0f Msch 3 l. 2017 a'd Deenber I L 2016

cash an'l cosh cquivabds

,7:5,218

Recctabk lion Weath Sec(iri:s.lnc. Accrued inrerei €ceivabb 162,601

I5,932,312

't.533.915 HEDC*

llveshent

121999213 in

sovermem fcuriris

. r4 ate^.qp'q@ahD H.L 'nre

blbsing tables shor limncial ininmenr Boeriz.d ar fan vatue as.f Mmh jt,20t7aid ll,2016, aMlyzed btueetr tho$ whos fanvslues aft oa*o on:

De.ember

L 2

Quotnpricesinacrivena ersforidenricatasrborliabilitics(Levet r)l Tho* involving inpur orher than quoted pi6 i.cluded in r:vet I rhar.rc dbsefrabte aselorliabilit, eiiherdl€dlyorindirecrly (Levet 2);.nd S. nose sith inpu6 for rhe dsei or tFbitity lhar m not based on obserrbte mskel d.ta (onobrerv$te inpus) (Levet

for rhe

t.t.|JfrntJu.

L4c|]

75.t09,7?9 .

ra otubipru

wu.

h HLb. adtudhs

12r.99:39.00

Fair vaLl€

t97.10snt3

$,334

here were no tansfo6 betueen L€vel I md kvel 2 fair value neasurcn.its and no tansfe^ into and outofr:vel3 fan value measurcnenh .s of Mdch 3t,20l7 dd D*ember I t,20t6

'Ihe bbles below sho* the cEdi! quali!- by .lss ol6ser ba*d on rhe Conpany\ inrenFl elalution $of Mmh 31,201? md Dsenberll,2016.

,,'.,',',.;

r.D*.r6

(Audi,.d)

!t!lEL4 t!1!2?ll

j0e.r4qr!l

,30The Company

the

follosinecireri.ro

Cla$

mre

crdil qudiry:

Dc$riprion r'nancirl assb th!. orc deposned itor rmsacted widi rcpukble banks rhich have l.w pnbabiliry of Financ'al 6se6 ofconpanies thar have rhe apprrenrabilit Io sarisry ns obligariotu in full.

The primary objedire oflhe Compaiy

cEdir

6liig .nd hshh] capihl

s capihr nanaeemenl is ro cNure Brios in oder to suppon ib bnsine$ aDd

Tle Conpan) nanlces its capiral irucrure sd makes adju$nenb ro i(, in lishr of chsees in Mnonic coidilions. To mainrain or adjNl lhc c.pibl srucruq rhe conpeny may adju$ lhe Bmenr to sharcholdssorissue neR sharcs 'lividend Compry mon,toru capn l using a debr to equrq mio, which is roht debr divided by 106l equity. Thc company includes wrthin ror.l debr rhe lollowingr ecounc palabte dnd accrued exp€nes rnd subsoiplidns prlable Tohl .quiry includes capnal sbck, net unrcalizcd gaiis (loset oi AFS financial aseb and rctrined eaminss (defi.n) The

The ComFny lEs no extemlly impord copiol rcquirenEnb The lable below denonnnGs rhe deblto-cquiry rarios ofrhe

s of M$ch

conFny 6 otM.rch

31,2Ot?

and

31,2017 and

(Unaudired) :Alied, Accdnls p€yabb

411,258

and accrued exr€nses

Net mrealiad goins on AFS fmtuial asets

I0,30,t,164 0.00t1

there *eE m chmges in rhe objectires, poli.ics or pse$es for rhe l" qu@r20t7 and forrhe yeor cnden Dsenber I I, 20l6 'Ihe ComDany

hs declaEble

TheComp,nJ

sFelRordof\rprrlno(ri5,slortnq.l

dlvidends amounted e9 46 millionas

otMarhl1.2017.

jhiEcAiitEdolfdDfurooroli

|:2m$ocr'igrr6ofedig |2'l,5sbckigh6o'rede F0

0trsh bfr 00 hre

au!@@idion

11.

B*ic rnd Diluted Earnibg! The snpurarions

ofr|t

o6.er5.0@.@0) (4

r2.0m.000)

Per Sh3ft

Co'npanj' s b.sicerning! per share

fo[o*s:

2.437.304

6,300,5t2

Wcished avenee

Ba\r

eamings per

Tr.Compd')

sh:E

hr iopoFnr'all) d .rrFto' mr ror.'n20to,20 {ind)u

conFny has cnrercd inro cancelhble lese aSremens as a lesor wnh bms oi one ( t) !car. l4es conrain Enewal oprotrs and a clauseemblingmnmtup*ard revhid. ofrhe renbl chages be'l on pielailins rorket conditions The relared renr incone derived lom rhh reserionincludedunder"olhcrincdneiamouniedloP2t,l20.nd*34330asofMarch3t. The The

2017 and Dccenb€r I 1, 2016

- 11iaGnenh olrhe conrP3iy lerc approved md

'urhorized

for

The

Ihe sme policies ard relhods ofcompubrion seEfottored in rhe preparrrion ofthe interim finmciaircpon compdred ro the Decemb$ 31,2016 Audired Financid Slalencn$

lGrin FinancialRepon as ofMarch ll.20l7 is in conpliance with Aenenlty acepred aeountingprinciples (all effecrive studads an'l ] cryrckrions under Pf Rs)

c) Therrcnounusu irn lhe March

There

or itenslha! aileored I1,2017 Fi'Dncral Skrmenh

ire no

matftl

alTecr lhe resuh

rhe

as*6, tiabitiiies, e'tuiry md osh floM of

erenls h.ppmed lnb*quenl to rhc end of Mdch

dfeid financid sEcmhr

jt,2Ot7

lhar nighr

Emings per shm is prcsenled in rhe face of lhe unaudned sraremenb of income tor p€nod ended M!rch I l. 2017 and M@h I t, 20 t6

No sig|iriconr even6

happened during rhe

quner thst

rhe

alTet rhe Mmh 31,2ot7

Unoudikd Fimncial Sarcmeib

There

no seasonalaspecb lnar

op€rdion of rhe company

mareiale$ecr on rhe linanciat.ondnion or rcsutls of

there i5 no lor$eable er€n hor sitttisger direcl.r conlinaenr financialobtigatior rhar js matera|lo the compan]. including4] defautr ofaceterded obtigarion

i) Ihre ar

no of-balance sher hnsacrions. amngcmsnr. obtigationr and olher 'narci.l rcbnonship ofrhe company rh orher enrni.s or pe^ons thar were crcared du.ing the period.

ofdoun$ rcponed in prior periods ofrhe cuftnr jjns.ial e$inar.s of anou.b apotrcd in p.io. financiat yca6 rhar could hNe

There &E no changes in enindes

or ch.nges

narenat

cffer

'n cunenr pedod in the

Tlere aft no issuances, rcpurchases, ftprymens, rprymenb of debr aid equiry *curiries

we aE not rcquikl ro di$lose segmenr infomrrion i'r only have one soure olrcvenue

financiat shrenents beause

m) Thee ars no chmges in rhe composnion ol$c isuer during rhe rnr.in period, inctuding busnes combinarions, acqukiiioi or dhpost .f subsidiaries and lonc rem inve$menb, rstndurinE and discounlirgoperario.sdulinglhe period.

II.

MANAGf,MENT DISCUSSION AND ANALYS$ OF fINANCIAL CONDiTION AI\,D RESULTS OF OPET{ATIONS

l.rib.nci'r conditiotr (Ar ofMrnh

31.2017

Manh31. t0r6)

50.rs?Ji3

rr055oj:n f,hBL|rc

ToLl

'fte Conper\ 'n

rsJe:,82

ANDoOUn

A$b anolded b

P11.490

4s50r,o43

P2l0 743 ni|ion and pt73.4,16 nriltion as ofMarch I1,20 t7 .nd March

ll,

cdh equivalenls anounred b p3.806 hi ion as of March 31, 2017 ud million as of Mrrch 3t,20t6, esp€crircty. The 2136% ier decrcAe Ras duc ro inveshncnr cash and

ROP bondq which

k ftcorded und.r lhe Najlabte for $re fii.nciaLa$e6.

rman.hlr..e6q"i.'\.tJerhrcLsroot,orto,amo.nr-d,op.u, .m, .one d p4..0 n, hon add..oIVir.h.t _oto. T.re.,,eh hc l])rd..r4e, ma,ntJ ouero

n'cre

Da*cr vrlues of inve{nenr in n@ks rnded

ar psF.

a{ inr a. or Vd rt. 20 a oun.-d .o p0 , o m, hon lo P0.140 nlttioi vdlh l .20 h lhe 4xt"o ne' hfa.. a.o,nr ,o. rhe |do ,oni compared receivables j lpe.ifi .ally on Fernabk.

accrued inteEs6 for rhe period.

Orher-aren! 6sds consisr ofpr.palTenls, prepai,l rakes and inptrr ra cairy-oveE thBmourdro P0^3--o m' l'on and Dn3:2 it'.na.orMr.h, nt-rd...tM,nt,rt,20tc,e,oe.r."t\ Irc o..q-iner.r.Fh( mdnh rpk.e,r,dd.io-,t,nDu.b\e e.o.deddu, ns.heF,iud Availabre-fo_Fsle (AFs) nnmcHl asels aaounr 6 ofMaroh l1,20t7.mounicd ro tl50 550 ion and Pll5.29r niltion of March 20t6. The butk of rh; 30.53% ier increae h dtre to thc ns rair varue Ni'3 lhe rdjDsrcd rer nrue mdhod o',

flHfflii"il'..-"** *"s

lt, b

patBble and ecned exp€nss amounred to P0.444 nillion md P0.l3? nillion 4 of M@h 31. 2017 md March I 1, 2016. respelively. The 221.93% incrse a€ounb for addirioml tayobles lbr

Aeouts

6 of as ofMfth 11.2017 mounted lo 210.304 or P1.29 hillion md Pl73.309niUion orPl 063 book value @ share.

Tobl sl@knokeN Eouit

Reulb

Opentio8 {ror rh.

Qud.

.nd.d M!rcb

31, 201? and

M.rch

2016)

b.m{r,tb6Eioed

r.137JM

4,55&r'

The Cdnpdy posled a n€l in6me olP2 437 million or P0.015 eaminCs per sh@ 2017 and P4.553

dilliono.P0.023 mings

per

shm

sofMmhll,20l6.

6 of

Mrrch

ll,

Coopany\ nel g.in on fat vdue cha4rs on fimrcial at aair Mlue rhmust p6li d lo$ 'sb amoued b P2.699 rilljon ud P4.351 million a of March 31, 2017 and 2016, ere!iv.\. Ih. 44.16% decline pdains ro lowe. market value movenenb ofrhe invsrnenis in nooks for lhe p€riod. The

lnl*$

income imounred b m.02? nillion and P0.20 million os ot Mmlr ll.2017 dd Maeh 31, 2016. Fsp€lnvely. neE w$ a 32.71% incftise due ro hisher inbrsts em€d jn lhe inlesftenls in ecoud duins the p.!io,l.

Dividend h@me decreased ftom m.054 nillior 6 of MNh ll,2016lo P0.050 nillion as 31, 201 7 due to lowd dividend incone re€ived ftom invesbenb for rhe pei.d.

O$s .@ou

for March 31. 2017 and 2016 mairly p.nains lo recunine sflioes rcndeFd by lhe Company ro HEDC and ftnrat mmne.

income ing

wice

olMmh

inmm. lor

Gddddd

sdminislrorile cxp.nses mounred rd m375 nillion and P0.453 nirlior 6 of Msch 3t. 2017 md Mdch 11,2016, rspdively The 17.23% dereas. aeolns fo.lows adninifrrive incurcd dudng lhe Fiiod.

*Fns

Po sion for incomc ta a of Meh I1, 2017 nd 2016 penairs b tie Mininum CriDoBe lncome Tu (MCIT) sd-up. The Company sel-up MCIT bthd rhd the 30% Eguts lu be.ds nost ot its incom. r. fbn unHlizen twket chanee of invehen$ dd Da$ive income subjed ro fiml h.

-353.FiDncial CondilioN(AJof M..ch3r.2017rnd DN.Dbcrll,2016)

LI^AIM6

AND @UNY

ror4LuBLnrE!

^ND

[awY

Toralas*s lmotrnred ro P2l0 749

'irtron

a3 of March

I,2017

conrpared !o p?09.9?,1mi ion

6 of

The Company\ c6h .nd cash equivaleots amounred ro P3.306 mitlioo as of Mmch 11, 2017 comparcd ro l1lr25 nrillion as of Dsember I,2016. The 2,1.90% ner decrear Ms due b additional in$nmenr in ROP bords trid eeienl expenses during the peri.d

Finmcid r$ds d FVPL rccount rs ol March 11, 201? amounted lo p50.157 ni|ion conpared ro P47.454 million s of Dc€frber ll.2016 The 5.70% incrs:e Ntui'N to ncitivc novemenr of nEker lalucs ofinreimenr

n@ks rmded arl,SE

Rseivables account 6 oi March 31. 2017 amounled to P0.156 million conpared ro P0.31,1nillion d ot December ll. 2016 The 1314% incrsse is atuibuted ro addnional reorded Heivoble! specifi*lly on accrued imere$s duri'rg the peiod. other cuftnt $sels.s ofMarch ll,20l7 afrounrn b P0.379 miltiotr conpared rd t0.326 mittion $ ofDechberll.20l6. Thc increase is dDe to addnion.l inpur taxes a'd olher sc6 reco ed duins

Thercw6slighrchangeinavailabllfolsale(AFS)fin!rciata$.sacounrfrompt4g.655mi ion of D*mber 31,2016 to P150.550 million as ofMrch 3t,2017 Esuhinc r. a 0 60% net incree market values of inrennenr Accounb paybl. md accrued expenres amounled ro p0.414 trrittion and p0 564 ni ion s of Mmh 31, 2017 and Decenh€r ll,2016. ftspedivetr. Thc 21. t3% Der d*rase rccounc tor *rtenenl of

Tohl Srckholder' Equirt

ofMarch I1,2017 amounled ro P210.104 frillion or I,r 29 book v'lue Pl 234 book volue 6 ofDsenb.r I1,2016

p€r sharc comp.red 1o P209.41I million or

trxcepr lor ncms discu$ed above, there are no more rhe marerialit rhredrcrd ol5%

ges i', the iinancial

$.!men$

rhar

willftach

Kf, Y Pf, TIFOTTMANCE TNDTCATORS (KPI): The tallowing liquidiry and profihbility ratios irdicale acceplablc lcvols of financial condirion and

perlommce of rhe compm):

s6 m incrase i.

rhe Co'nFtryt .uftd rdio as of Mmh l t j I1,2016 nainry duc ro rhe d4rease in cunent tirbrtirtcs.

There

201 7

conpared ro December

ThedsrakirlheCompanysdebtequi!rali.asolM.rch:ll,2017comparedroDeerber31, 2016 mainly is duero nd irco'he lbrrhe 1" quaner20l? d deselse ii ti.biLiri*. Ner piofit mag andas$rlundverforrhel'quaner20l7htouercompmdtothelsquano20l6 dle !o lo*er mket value movencnG ofthe inw{meils rn $ock.

Plea* refer ro Sched u le of Financial Sou ndnes r ndlcalo 6 lor orhcr add irion't K pt s Except for nenN dilcused above, there reno more dErgcs in rhe financial shteme'ns $al wtltrcmb rhe mareriatig

Di$usion orindic..od ot.hc comp,ny'slevrl otperfornrne

'nr

Company\ rcccihbles reponed in the ShrmentsofFinanciatPosition jnctudc rhe foltosingl

Acctued InreE{ Receivablc ftum rhe Company\ shon 20lTofshich (he Company willNcjle upon maruiry

Cash Dividends nom various nock inveimenls.

Funhemore, rhe Conpany manages

i1 s receivabtcs by

exsulotr of n@esary inrenenlionscftons

inveimenb

B .f Ma(h

nonirorins on a regutar basis ro enlurc rimety

Conpu} has $bimricl i'Nesh.n$ in shares of {ock which arc nor lisred in the Srock Exchmge,n,l nay nor be Eadity conv.nibts !o liqtrid asrb nece$ary .o mser The

31,

phiiippi'e

porenrial

additiond liquidiryrequirnflrsolrheCompatry lnvc$menr in unquoted securiries inctuded in AFs invenmenh amounled ro ll22 nillion as ofMrrch ll.20t? DccamberI.20t6

'id

Management of |quidny reqdirts a flor and imk p€Bpecrive. con{rainr such as polirical ervrcnncnr, tuati.n, bElgn eichange. inbE$ nres a.d olher enrnofmenr.t facro can impose signifimt re$idioison fims b of$en fiMrciat tiquidny. 'nmagemsnl

Seafionr has cons idcred rhe above

Cohpr

) & 'ifie. sl.L r.

R.re of Rerurn or

fa.lon

and

spec

ial anenion ro irs

now

anagenhr. The

nd n\e.'..nr..a. eo tu,d.,o

Erh Sbc[[old.i

The company hds no erisringdividond policy tlowevo, rhe Company i'nends ro decl.redividends i. the fulure out ol ils uircsricred rerained eamiigr in rccor&nce wnh rhe Corpodion Code ofrhe

expen{si Ihe conP3

}

itr vi€wof lh€currenr

has cigaged rhe senices of PeroEnery} Relources leg3l. adninhrturive, accoumrng .nd rtod!'ry functions

o,nciat c0.dnion

on \d' rnd e-,ntr d< u rc.F I F.n\erin! .o1,e b,.)c*e.. f,,..o ' -nte' of .o, qiftnr,n.eBr-tr€ nFlion or.ncFa.fg r\.rotrit brr ro*ards inve$ment l he Company is senentiie ils f nds ftum inreresl eamtngs on money mskel

Ierumo,n\'..n1.

commihenl ofrhe Company islhc b.l.nce on ir subsoiprion ro HenDsa Eszoi. Devclopnmt corpodion (HEDC) i0 the.mounr ofpt2.154 miltion. fhe tiquidt.y ofrhe comprlr s'llbe atreled ifHEDC decl.res r {t1on sai'l subsriprior po$ibtc$uceoffund s dlougb ba.k lM. Aside tron rhe subsqplton p,yabte ro HEDC, rhere ar no kiown tends, den{ds, co'nmn'nens, evenborunccdainlies thar wilthave narerial inpet on rhe compe,y\ tiquidity. The only material

The Phillppine economy n $illrffecred hy econdmic .rnis, .esuhing in fl uciuarinC forc ign e:chanse rares and incMe no.k nwker uncenainries Unccnrinries rmai, ro wherhe;lhe ;oufiry oontinue ro be affecled by regiomt r.nds in rhe coning nonrhs. rhe fino.i.t jarenenr do iot

'ncludeatryadjuinenlsthotmighl rhe fimdals&rsnert, as

4.. -rrd

resuh

iom

rhese

;tl

uncenlifties Relrred eilss wiltbe

reponed in

lhcy become known and e$ima6le

de finrn.Bln.|: e"po.ur. o. he,ompdr ponl.td t) on ure..\ liquiJi.) \. tla...hrge,t,ercrs _o mil, \ sner, rhe, BnBt .odtr,o.ino ' rcsulrs ofopenlon ofrheCompatry, provide a di{u$ion in rhe repotronqu.n arive i,np&lorsuch .isks an'l include a descdpr ion ofenh{ccnenr in (hec.npaiy\rhk msagencnr policie; to addre$ 8nd

The CompDlt principat nnanciat innrume s include csh aM cash eauivolens. radinc and in.e.menr a.u r e, rfi nrnci't s e, d | \ , e-d R.endbk.. n e.,n fi Ditomenls isto fundrhecompany s sorkircc.pnat ftqunements ";"."1

Financial

RhkM.na.eme.tOb eqrilesad p.ticics

o,;" d k*

.t3I

nvesrneb

l in H€rnos. E ozone Da.lop meni co rporrtio

o (H

Pfn{ shlchdde{

rrcd ii'o r

EDc)

un'ydubsnds.omF'ci3|ftd{

ebjed slr

rhe subic

is4*sibk

fiom

rasjunbencompkrd

'dyhi.h ii!ir.d. rh€

cblk,rldlc E\pEs*ay (scrEx) *N

atrcsdy.onptered md pu6Li.

e$:

*hich Moudd Pt? 35 mi

anoun ofpT

I I.2016,

rlr€

r! ni ior

As of

conp.ny hs ourbtrding suhsdipr ois

the

payabte ro HEDC

ion.

itr AFS nol t..ded jn the

Mmh 31,201?

h€ce, yse.lrsdy

for irs share

mmed sine rbe

A. ltrvdlnenr

n.rkd (I.lenDenl

dju!.d i.l

n4rrod.

rhn

in HEDC)

ComFny holds I1.ll% inrerei in ns inveshenr tn Hemos D€vetopmenr

The Mmagemeil ol HEDC h bling dl eibns !o *tt ponion of ib saleabt. propdlj proeeds which will b€ usedro finaN he derelopnenioflhe undcvetop€d ponions ofihe popedy.

B. Inv.*nert

eEs lqe

daned in May 2003 A

r rbe mme of rh. rtigtmt o*reA G r.raror?2e

indusriat

in Fin.ocial Asscr at

FwL.nd

AFs rRd.d in rhe mark t

Cdnpry *ill conlinue ro closeiy monilor rhe prices of irs *curities 6 sctl $ rhos specific &rcto6 $hich could ,lireclly or indirecdy lFecl rhe pricEs of rhese inslrumens. Beause such inve$mens are subj*i io price risk due io changes ln markc! !.tu6. an expsted ,letine in lhc podolio will pmnpt rhe Company lo dhpose dr rrde rhe securnres lbr replaement wnh noE viable and le* isky inve$ncnG in de fur'r The

wirhrhe compatrtt curenr sh p.siti.i, nc.n suiafi ns neds tor is operdins expenses tr orly po$iblc mre.ial commitmenr tu. ssh ullnon HEDC. ofwhich is not expeded ro caltin rhe next selre monrhs Thus. ii does mr inrend ronise addllionatfunds

the Corpln)\ ,ive$merrs {aled ibolc, d'ere erc D. orhtr rcsearcher or deveLopneni phns, and ptrrchase or sale olsignificrntequipme rhar the company erpeds perfom

Arde iiom

ThsCompan) hrs no orher informalion rhat need to 6e discLosed olher thar dn.bsures mrde und{

StrAf RONT RJSOURCf, S CORPOIIATION SUPFLEMf,NTARY INFORMATION AND DISCLOSURES RXQUIRED ON SRC RULE 63 Belos ae lhc additional i.fomalion and schedules rcquiEd by SRC rute 68. 6 Amended (201 I ) rhar rcr*anr ro rhe Gbup Thn infomation is ed forpurposesoffilingwnh$e srjc md is nol requiftd pd ofthebasic financ ial shre'nens.

pr.f

Schedule

A Fin,n.,rlA..e'r

Belo$ i! rhe dekilen shedure of rhc cum Nanc oflhe Isuing Entity and

Associ iotrofE.ch Lsu. FiMrci.l as.G !t FVPL: 21,350

l]J20 t0,l t3

t23,l9l t7229

Empne Ean Land Holdings, Inc. '132

House ol lnve shenls, lnc.

Dtllnce Tehphdre Co. PLDT lfz Cunubriw Convenirb Pret Rtal Cdftro Bankins Cdpsalim PhilbDine Long

32,300

sodh Chim Resouces, Inc.

WatdMr I'hililpines, Inc. PeroEnersy Resouces

CorFration

3.6t3.352 14.491.54?

AnountshomiD

Incom€

Sl.ien.ntor Ecehedabd

the

Fio.ncirlPorilion

!.crued

Aullnble,foHale s€cdries

PctrcEneqrResourcescom.rarbn

l.35r.16,1

15,,t41.169

2001:.03,1

Hernsa Ecoae DeveloFft nt l34J5l l2l 12,153,334

Inleshenr n GovemGnr Selurirr!

The lair valle for fina.cial

oreo

nr\d

pa e

i'srunsnb raded

and asking pnces are nor awjlable. rhe

ra' \. ur o\.uns,.

rt'er'

in @rive markeh ar $e

eroninc

dare

based on

lhcn

ro,;.un.e,n"..h,n"1bd

pice of$e non r*enr rosadjdn Drovides evrdence of o' bem d,'Bn,fi J.'.hr e.

rhe

| "o.j.i..i,*.r*. -\ne

For mquoled frnancial securnies, rhe mo$ re.snr stes rm'ection sas med as rh. ba3is for deaminingrhe fa; valuc ds ofMarch I t,2017 ad Dec.nb* l1.20t6

$hldlleB Anolnb Re(errbte rom Dtrdrou srmknolders aorh€r

compd] h6

rtrn Retared parieJ odshdinc dcivabb! nom i6

dtdro , officeh, eftploleei relared panics andprircipalnockholde6asof March1t.2017rndDece'nber jl,2016. The

schedurec ABounb Rseivibte 60ntpa ,ble io Relabd Pan'ci $htrh Coneliddion orF'nancBl sBretunB

schedurc D. tnransibte

re l:t'hin.red durir

As*r

'nre Company lEs no intmgibtc

6ser

Lonliem pebl Th. conpdy h6 no oubbdirg tongrem

Mmh lt.:0t7,nd

Dtuember

,20to

Schedule E.

debr as

Schedu/e F lddebrednes io R!lacll fan'es Tle Company hss no tong rem rndcbrednes

ofM.rch lt,20l7

ed Decmberlt,20t6

$ jdcb-C,.OE!34€-els!!!!ilb!@ls.br!!E

'ne Compmy dGs not bNe gDaml*s ofsurilirs oforher

Sch.duL H.

colrrll@

issu€rs

s of MNi

I, 201?

clnibl Sbck

shu5 r3&m,0m

16r

c4donEh6 m,oo

6rd5

161!3,14'

Sf, AFRONI RESOURCf, S

CORPOR{TION SCHf,DULf, OF FINANCIAL SOUNDNESS INDICATORS Below ft the finmcial rarios thrt arc Elevml b lhe Conpany for the 1' qu.ner ended Maah 2017. M@h I l, 2016 and yed dded Deenber I l. 2016

ll-MrEl7

UMudited 3rM&16

r35.50Jr

We8f@d Awrase No.

Price eanins!

€rlo

Ch6ns price

36,345% Ldgbmdebrroequitl EBTTDA ro

ifleR,'

Lmg.emdEbr

EBITDA

qr 92)9"

ll,

Audired

ll,Decr6

SEAF.RONT RESOURCES CORPORATION RECONCILATION OF Rf,TAINED EARNINCS

AVAILABLf, FOR DIVIDEND

Uddjusted Er.ined €anings. begioning

Lrealiad fair vanE adjBhenrs (mrkedicmrkct Adjmred rerrin€d elnings. b.gi.ning Ne. ir.ame duin8 Lle Fdn cb*d b rcdied eamiqs Add: NmrctoaUunEllized irc(m ner of rax le$: Ne{cttraUurellbed ircoft ner of rrx Fai $iE adjuimenh (ma* tcmarkel) ImFimem bf on avaibbk.foEale lmN Bl as*E Net income rtuallyincuftd during the year Iis: Diyidcnd declantiom dnring th. ylar Tord Et[ord.amrrer a! aiLbl. fr'rdhdendt

-45SEAFRONT RESOIJRCES COR.POMTION MAP OF RELA.TIONSIIPS OF TEE COMPANIES WITI{IN TEE GROUP A[ distina stoc*rddeG 6 ofM@n 31. 2017 neirher snsdtute mlrol M sigltfid innu@ os 0E cdpory. Abq rh. cmpmy'3 in6llnen8 n.ids odstitut @rrol nor sieDifiod irnu.E.

STGNATI'RES

Pus{m

Eqdmena spd lo b. 5i3n.d on b.hlf to lne

of dE Sqni6 Reslkno Code, dF EeisFa,ft h{5 duly of lh. mdmigned tneffb duly .ulhoiDd.

SEAFRONT REAOURCES CORPORAI'ION

uo1

tl '

'nr+

@sd dis