FIRST PHILIPPINE MOVING HOLDINGS CORPORATION2008 FORWARD ANNUAL REPORT TODAY FOR TOMORROW FIRST PHILIPPINE HOLDINGS BUSINESS MISSION CORPORATION Our basic purpose is to create new wealth for our stakeholders. 2008 Our business will focus on vital needs for national development in the areas of energy, ANNUAL infrastructure, manufacturing and supporting industries. REPORT

In pursuing our objective, we will be guided by the following fundamental and imperishable values and principles: nationalism, entrepreneurship and innovation, teamwork, a strong work ethic and corporate social responsibility.

CREDO We believe in the Filipino’s ability to innovate, to seize development opportunities borne from the real needs of domestic and overseas markets.

We affirm our partnership with the Filipino in their endeavor of ever pushing the social development frontiers beyond currently known limits.

We share the Filipino’s vision of spreading gainful employment to all who are willing to put their talents in the total betterment of the Filipino.

THE FPHC COMMITMENTS We at the First Philippine Holdings Corporation commit to the Filipino nation: − Our continuing search for innovative ventures and technology that optimize human and natural resources bringing out the best from the Filipino mind and skills; and − Our thrust towards the development of communities and persons we influence in our work.

We commit to our suppliers of goods and services: − Our adherence to conducting business transactions with integrity, fairness, and professionalism; − Our willingness to assist in their development; and − Our continuous assistance in improving the quality of such services.

We commit to our stockholders: − Our untiring efforts to give competitive returns on their investments while exercising prudence in our decisions.

We commit to our customers: − Our unceasing quest to meet their needs; and − Our uncompromising struggle for excellence in meeting their expectations.

We commit to all members of the FPHC family: − Our institution of better and more comprehensive programs that allow for total personal development; and − Our constant search for more effective ways to foster teamwork and employee participation to attain higher levels of productivity and quality. FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT Table of Contents

Financial Highlights 2

Management’s Discussion and Analysis of Financial Condition and Results of Operation 3

Directors and Executive Officers of the Registrant 22

Compensation of Directors and Executive Officers 31

Security Ownership of Certain Beneficial Owners and Management 33

Certain Relationships and Related Transactions 37

Corporate Governance 38

Statement of Management’s Responsibility for Financial Statements 41

Report of the Audit Committee 42

Independent Auditors’ Report 43

Consolidated Balance Sheets 44

Consolidated Statements of Income 46

Consolidated Statements of Changes in Equity 47

Consolidated Statements of Cash Flows 49

Notes to Consolidated Financial Statements 51

1 First Philippine Holdings Corporation and Subsidiaries Financial Highlights

December 31 2008 2007 OPERATING RESULTS (In million Php) Revenues 78,565 54,996 Sale of electricity 65,710 49,115 Sale of steam 4,242 377 Sale of merchandise 2,455 1,510 Contracts and services 2,234 1,682 Share in project revenue of joint ventures 1,527 362 Equity in net earnings of associates 1,405 1,607 Revenue from drilling services 726 52 Sale of real estate 266 291 Finance costs (10,903) (5,755) Foreign exchange gain (loss) (8,452) 1,575 Provision for income tax 3,409 1,181 Gain on sale of a subsidiary 2,762 - Net income for the year 5,454 11,680 Net income attributable to equity holders of the parent 1,192 4,475 FINANCIAL POSITION (In million Php) Total Assets 227,007 242,956 Investments at equity and deposits 27,394 37,380 Total debt 147,154 146,215 Total Liabilities 157,860 153,797 Total equity attributable to equity holders of the parent 27,851 34,838 Total Equity 69,147 89,159 FINANCIAL RATIOS Return on equity3 (%) 4.28% 12.85% Dividend payout ratio (%)4 0.00% 19.16% Current Ratio (times)5 0.86 1.05 Debt to equity (times)6 2.13 1.64 PER SHARE DATA (In Php) Earnings per share7 Basic 1.859 7.642 Diluted 1.840 7.542 Book value per share8 39.89 59.11 Price earnings ratio9 8.20 9.49 Market price 15.25 72.50 Cash dividend per share - 2.00 Number of shares issued and subscribed 590,340,305 589,394,893 Weighted average number of shares Basic 589,482,417 585,591,888 Diluted 595,576,835 593,343,416 Number of stockholders 13,131 13,051

7KHUHVXOWVIRUWKH\HDUVHQGHG'HFHPEHUDQGDUHVHWRXWRQWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV 7KHEDODQFHVKHHWVDVRI'HFHPEHUDQGDUHVHWRXWRQWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV 3 Return on equity = net income for the year attributable to equity holders of the parent/total equity attributable to equity holders of the parent 4 Dividend payout ratio = dividends paid by parent/prior year’s net income attributable to equity holders of the parent 5 Current ratio = current assets/current liabilities 6 Debt to equity ratio = Total debt/total equity. Total equity includes the equity attributable to equity holders of the parent and minority interests. The details of the WRWDOGHEWDUHVHWRXWRQWKHQRWHVWRFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV QRWH  7KH(36FRPSXWDWLRQIRUWKH\HDUVHQGHG'HFHPEHUDQGDUHVHWRXWRQWKHQRWHVWRWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV QRWH  8 Book value per share = (total equity attributable to equity holders of the parent - preferred equity)/no. of shares issued and subscribed 9 Price-Earnings ratio = market value per share/basic earnings per share

2 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT Management’s Discussion and Analysis of Financial Condition and Results of Operation

7KHIROORZLQJPDQDJHPHQW¶VGLVFXVVLRQDQGDQDO\VLVRIWKH&RPSDQ\¶V¿QDQFLDOFRQGLWLRQDQGUHVXOWVRIRSHUDWLRQVVKRXOGEH UHDGLQFRQMXQFWLRQZLWKWKHDFFRPSDQ\LQJDXGLWHGFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVDQGWKHUHODWHGQRWHVDVDW'HFHPEHU DQGDQGIRUHDFKRIWKHWZR\HDUVLQWKHSHULRGHQGHG'HFHPEHUDQG7KLVGLVFXVVLRQLQFOXGHV IRUZDUGORRNLQJVWDWHPHQWVZKLFKPD\LQFOXGHVWDWHPHQWVUHJDUGLQJIXWXUHUHVXOWVRIRSHUDWLRQV¿QDQFLDOFRQGLWLRQRU EXVLQHVVSURVSHFWVZKLFKDUHVXEMHFWWRVLJQL¿FDQWULVNVXQFHUWDLQWLHVDQGRWKHUIDFWRUVDQGDUHEDVHGRQ)3+&¶VFXUUHQW H[SHFWDWLRQVVRPHRIZKLFKDUHEH\RQG)3+&¶VFRQWURODQGDUHGLI¿FXOWWRSUHGLFW7KHVHVWDWHPHQWVLQYROYHULVNVDQG XQFHUWDLQWLHVDQGRXUDFWXDOUHVXOWVPD\GLIIHUPDWHULDOO\IURPWKRVHDQWLFLSDWHGLQWKHVHIRUZDUGORRNLQJVWDWHPHQWV

OVERVIEW The First Holdings Group’s operating businesses are organized and managed separately according to the nature of the products and services, with each segment representing a strategic business unit that offers different products and serves different markets. The Group conducts the majority of its business activities in the following areas: • Power generation and power-related activities – power generation subsidiaries under First Gen Corporation (First Gen), power distribution under First Philippine Utilities Corporation (FPUC, formerly, First Philippine Union Fenosa Inc.) and our oil transporting company under First Philippine Industrial Corporation (FPIC). • Roads and tollways operations – Subic Tipo Road and North Luzon Expressway under First Philippine Infrastructure, Inc. (FPII) • Manufacturing – our manufacturing subsidiaries under First Philippine Electric Corporation (First Philec). • Others±LQYHVWPHQWVKROGLQJVFRQVWUXFWLRQUHDOHVWDWHGHYHORSPHQWVHFXULWLHVWUDQVIHUVHUYLFHVDQG¿QDQFLQJ

7KHWDEOHEHORZVKRZVWKHFRQWULEXWLRQRIHDFKRIRXUEXVLQHVVVHJPHQWVWRRXUFRQVROLGDWHGUHYHQXHV¿QDQFHLQFRPH ¿QDQFHFRVWVEHQH¿WIURP SURYLVLRQIRU LQFRPHWD[DQGQHWLQFRPH ORVV 2XUUHYHQXHVDUHGHULYHGIURPRXURSHUDWLRQV conducted in the Philippines.

(in Millions) Power Roads and Tollways Manufacturing Investment Holdings, Eliminations Consolidated Generation and Operations Construction, Real Power-related (Discontinued Estate Development Activities Operations) and Others For the year ended December 31, 2008 Revenues P 71,610 P 4,305 P 3,121 P 2,517 P (88) P 81,465 Equity in net earnings of 155 92 29 1,221 - 1,497 associates Finance costs (8,956) (740) (50) (1,897) - (11,643) Finance Income 997 63 11 251 - 1,322 Provision for income tax 3,227 - 162 20 - 3,409 Net income (loss) 4,110 752 229 381 (18) 5,454

3 Management’s Discussion and Analysis (December 31, 2008 Compared To December 31, 2007)

(in Millions) Power Roads and Tollways Manufacturing Investment Holdings, Eliminations Consolidated Generation and Operations Construction, Real Power-related (Discontinued Estate Development Activities Operations) and Others For the year ended December 31, 2007 Revenues P 49,553 P 5,499 P 2,392 P 1,484 P (40) P 58,888 Equity in net earnings of 306 83 37 1,264 - 1,690 associates Finance costs (4,255) (975) (9) (1,490) - (6,729) Finance Income 1,535 115 11 273 - 1,934 Provision for income tax 1,006 138 158 17 - 1,319 Net income (loss) 8,450 2,196 335 575 124 11,680

DECEMBER 31, 2008 COMPARED TO DECEMBER 31, 2007

Financial Condition

As of December 31, 2008, FPHC Group’s audited consolidated assets totaled P227.0 billion. This is lower by 7%, or P15.9 billion, compared to the December 31, 2007 balance of P243.0 billion.

&DVKDQGFDVKHTXLYDOHQWVLQFUHDVHGE\

Cash consists of cash on hand, in banks and cash equivalents. Cash in banks earns interest at the prevailing bank deposit rates. Cash equivalents consist of short-term placements for varying periods of up to three months depending on the immediate cash requirements of the Group. Cash equivalents and short-term investments earn interest at the prevailing short-term placement rates. Cash and cash equivalents increased by 21%, or P3.1 billion, to P17.9 billion mainly due to increase in security accounts of FGPC and FGP from $66.1 million (P2.7 billion) last year to $186.0 million (P8.8 billion) this year. On February 28, 2007, an aggregate amount of $87.6 million of security accounts was used to prepay the Secured Indebtedness and all indebtedness under the EIB Finance Contracts of FGPC on a pro-rata basis.

6KRUWWHUPFDVKLQYHVWPHQWVLQFUHDVHGE\

This account consists of short-term placements made for period of more than three months. The P1.9 billion short-term placements are that of FPHC.

7UDGHDQGRWKHUUHFHLYDEOHV±QHWGHFUHDVHGE\

This account consists of trade receivables, cost of estimated earnings in excess of billings on uncompleted contract of FBI and others. Trade receivables are non-interest bearing and are generally on 30 days’ terms. Trade and other receivables decreased by 18%, or P2.1 billion, to P9.7 billion due to lower trade receivables of the gas plants as a result of early payment of Meralco on fuel charges for the month of December 2008.

$YDLODEOHIRUVDOH $)6 ¿QDQFLDODVVHWVGHFUHDVHGE\

This account consists of quoted and unquoted equity and proprietary membership share investments. Unrealized gain on AFS investments is recognized as a separate component of equity. The sale of investments in government debt securities brought down WKH$)6¿QDQFLDODVVHWVE\RUP504 million, to P674 million as funds were utilized for the payment of debts. 4 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

'HULYDWLYHDVVHWVDQGOLDELOLWLHVLQFUHDVHGE\DQGUHVSHFWLYHO\

EDC entered into nine Foreign Currency Forward Contracts with various counterparty banks during the year. EDC has an outstanding deliverable to buy US Dollars and sell Philippine peso. As of December 31, 2008, the foreign currency forward contracts of EDC have an aggregate notional amount of $100 million. The net movement in fair value changes of EDC’s derivative transactions necessitated the recognition of derivative assets amounting to $12.9 million (P614 million) and derivative liabilities of $1.1 million (P54.0 million). The settlement date for both forward contracts will coincide on May 28, 2009. The net changes in the fair value of EDC’s derivative instruments during the year were taken into “Mark-to-market gain on derivatives” account under “Other income” in the consolidated statement of income.

The noncurrent portion of derivative liabilities amounting to P2.8 billion pertains to the recognition of FGPC’s derivative liability in relation to the hedged portion of the loans availed in November 2008.

2WKHUFXUUHQWDVVHWVGHFUHDVHGE\

This account includes prepaid expenses and taxes, advances to contractors, royalty fees, share in current assets of joint venture and others. Other current assets decreased by 12%, or P526 million, to P3.7 billion due to the application of prepaid tax during the year.

1RQFXUUHQWDVVHWVKHOGIRUVDOHLQFUHDVHGE\

Noncurrent assets held for sale consist of the land and other properties owned by EDC in Fort Bonifacio that will be sold to PNOC. The total lot area of the land is 29,291 square meters with a carrying value of P1.8 billion. This is continually presented as part of non-current assets held for sale since EDC’s view is that the sale will be concluded in 2009 given the intent of PNOC. The increase by 8%, or P136 million, is due to buildings, improvements and equipments which were included during the year.

/RQJWHUPUHFHLYDEOHVLQFOXGLQJFXUUHQWSRUWLRQGHFUHDVHGE\

This account consists of EDC’s concession receivables arising from its service contract agreement with the Philippine government, UHFHLYDEOHVIURP0HUDOFRIRUDQQXDOGH¿FLHQF\DULVLQJIURP)*3&DQG)*3¶VJDVWDNHRUSD\UHFHLYDEOHVDQGRWKHUV7RWDOORQJ term receivables (both current and non-current) amounted to P34.3 billion, lower by 7%, or P2.7 billion, against the previous year’s level (PELOOLRQ 7KHGHFUHDVHZDVGXHWRSULQFLSDOSD\PHQWVE\0HUDOFRRQWKH$QQXDO'H¿FLHQF\UHODWHGWRWKHVHWWOHGJDV take-or-pay dispute.

,QYHVWPHQWVDWHTXLW\DQGGHSRVLWVGHFUHDVHGE\

FPHC purchased the 40% share of Union Fenosa Internacional, S.A. in First Philippine Utilities Corp. (FPUC, formerly FPUFI) last January 23, 2008 for approximately $250 million, for which a deposit of $220 million has been made as of year-end 2007. FPUC has an effective 22.8% stake in Meralco. Upon completion of the acquisition of the 40% of FPUC, the latter became a wholly-owned subsidiary of FPHC, hence, its shares were eliminated during consolidation, bringing about the decrease in investments at equity and deposits by 27%, or P10.0 billion, to P27.4 billion.

3URSHUW\SODQWDQGHTXLSPHQWLQFUHDVHGE\

Property, plant and equipment increased by 11%, or P3.7 billion, to P37.5 billion due to foreign currency translation adjustments and DFTXLVLWLRQRI¿[HGDVVHWVRI)36&DPRXQWLQJWRP1.0 billion.

5 ,QWDQJLEOHDVVHWVGHFUHDVHGE\

This account includes: water rights from the Pantabangan reservoir for the generation of electricity, construction cost (pipeline ULJKWV RIWKHQDWXUDOJDVSLSHOLQHIDFLOLW\FRQQHFWLQJWKHQDWXUDOJDVVXSSOLHU¶VUH¿QHU\WR)*3¶VSRZHUSODQWLQFOXGLQJLQFLGHQWDO transfer costs incurred in connection with the transfer of ownership of the pipeline facility to the natural gas supplier, and intangible assets recognized under the Service Concession Agreements. Intangible assets decreased due to disposal through the sale of FPII (P17.2 billion).

3HQVLRQDVVHWLQFUHDVHGE\

Pension assets increased by 28%, or P115 million, to P533 million as the actual contributions (including settlements) exceeded pension expense.

'HIHUUHGWD[DVVHWVLQFUHDVHGE\

Deferred tax assets increased by 21%, or P1.4 billion, to P8.4 billion due to deferred taxes on capitalized foreign exchange ORVVHVRQ%27SRZHUSODQWDQG¿QDQFLDOLQWDQJLEOHDVVHWV

2WKHUQRQFXUUHQWDVVHWVLQFUHDVHGE\

Other noncurrent assets increased by 50% or P4.2 billion, to P12.6 billion due to the noncurrent portion of advances to BG (QHUJ\+ROGLQJV/WG %* IURPWKHQHWSURFHHGVRIWKH6DQWD5LWDORDQUH¿QDQFLQJDQGSXUFKDVHRIPDMRUVSDUHSDUWV7KLV ZDVUHGXFHGE\DPRQJRWKHUVWKHDSSOLFDWLRQRILQSXW9$7DQGUHFODVVL¿FDWLRQRIFHUWDLQH[SORUDWLRQDQGHYDOXDWLRQDVVHWV into intangible assets account since these are now considered to be in the development stage.

/RDQVSD\DEOHGHFUHDVHGE\

This account consists of Bridge loans and Short-term loans. Loans payable decreased by 48%, or P8.8 billion, to P9.6 billion. The decrease was due to the full settlement of First Gen’s Bridge Loan amounting to $287.5 million, which was fully drawn on November 26, 2007 to fund First Gen’s fees, costs and expenses incurred in connection with the acquisition of a controlling stake in EDC. As of December 31, 2008, First Gen (Parent) has an outstanding unsecured, short-term, US Dollar- denominated loans amounting to $80.6 million and Philippine peso-denominated loans amounting to P1.8 billion. Prime Terracota also availed of unsecured short-term Philippine peso-denominated loans amounting to P1.9 billion to pay down debt incurred by Red Vulcan in connection with the EDC acquisition. EDC, on the other hand, availed of P2.0 billion short-term loans from a local bank to augment working capital requirements.

7UDGHSD\DEOHVDQGRWKHUFXUUHQWOLDELOLWLHVGHFUHDVHGE\

Trade payables are non-interest bearing and are normally settled on 30 to 60 days’ payment terms. Trade payables and other current liabilities decreased by 5%, or P628 million, to P13.2 billion due to decrease in EDC’s accounts payables as a result of the lower level of accrual of purchases from suppliers and contractors given the full turnover of the Leyte BOT plants.

,QFRPHWD[SD\DEOHGHFUHDVHGE\

Income tax payable decreased by 74%, or P454 million, to P157 million as a net result of cash payments and application RIZLWKKROGLQJWD[FHUWL¿FDWHVLQWKHSD\PHQWRILQFRPHWD[GXULQJWKH\HDUDQGWKHDFFUXDORILQFRPHWD[OLDELOLW\GXULQJWKH period. 6 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

2EOLJDWLRQVWR*DV6HOOHULQFOXGLQJQRQFXUUHQWSRUWLRQGHFUHDVHGE\

Obligation to Gas Sellers totaled P1.7 billion, lower by 37% or P1.0 billion compared to the previous year. The decrease was due to payments made in accordance with the Payment Deferral Agreement (PDA) between First Gen and the Gas Sellers.

'HIHUUHGSD\PHQWIDFLOLW\ZLWK36$/0LQFOXGLQJFXUUHQWSRUWLRQLQFUHDVHGE\

Deferred payment facility to PSALM amounted to P2.9 billion, of which current portion amounted to P455 million and the balance of P2.5 billion represents non-current portion. The amount stands for the obligation to Power Sector Assets and Liabilities Management Corporation (PSALM) under the Asset Purchase Agreement (APA) for the purchase of the 112 MW Pantabangan-Masiway Hydro Electric Power Plant payable in 14 semi-annual installments at 12% interest compounded annually. The increase was due to foreign exchange translation.

/RQJWHUPGHEWLQFOXGLQJFXUUHQWSRUWLRQGHFUHDVHGE\

Long-term debt, including current portion decreased by 1% or P1.2 billion, to P96.9 billion due to principal payments on the Parent Company loans and First Gen and its subsidiaries’ loans. The decrease was tempered by the net increase in FGPC’s ORDQVE\PLOOLRQDIWHULWVPLOOLRQUH¿QDQFLQJLQ1RYHPEHU

5R\DOW\IHHSD\DEOHLQFOXGLQJQRQFXUUHQWSRUWLRQGHFUHDVHGE\

This account pertains to the royalty fees due to the Department of Energy (DOE) and Local Government Units under the service contracts entered into by EDC with DOE. Royalty fee payable amounted to P1.7 billion as of December 31, 2008, lower against the previous year due to adjustment in the 2007 balance as a result of the purchase price allocation. The royalty fees are paid to the DOE based on an agreed payment schedule.

2EOLJDWLRQVWRSRZHUSODQWFRQWUDFWRUVLQFOXGLQJFXUUHQWSRUWLRQGHFUHDVHGE\

This account pertains to the balance of the obligations to the power plant contractors in connection with the construction of the geothermal power plants in some of EDC’s geothermal service contract areas. The present value of obligations amounted to P112.0 million, the decrease was due to the regular monthly payments.

%RQGV3D\DEOHLQFUHDVHGE\

On February 11, 2008, First Gen Corp. issued $260 million, US Dollar-denominated Convertible Bonds (CBs) due on February 11, 2013 with a coupon rate of 2.5%. The CBs are listed on the Singapore Exchange Securities Trading Limited. As of December 31, 2008, the carrying amount of the host contract amounts to $258.4 million. The said CBs are in addition to the P5.0 billion Philippine peso-denominated bonds issued on June 24, 2005 due on July 30, 2010.

'HIHUUHGWD[OLDELOLWLHVLQFUHDVHGE\

Deferred tax liabilities increased by 12%, or P664 million, to P6.2 billion due to unrealized foreign exchange gains and capitalized foreign exchange gains, taxes, duties and interest.

7 5HWLUHPHQWEHQH¿WOLDELOLW\LQFUHDVHGE\

5HWLUHPHQWEHQH¿WOLDELOLW\LQFUHDVHGE\RUP69 million, to P1.4 billion mainly due to retirement asset recognition.

2WKHUQRQFXUUHQWOLDELOLWLHVLQFUHDVHGE\

Other noncurrent liabilities increased by 19%, or P602 million, to P3.8 billion due to the recognition of unearned revenues pertaining to payments of Meralco on the gas take-or-pay obligations.

7RWDOHTXLW\DWWULEXWDEOHWRHTXLW\KROGHUVRIWKH3DUHQWGHFUHDVHGE\

Total equity attributable to equity holders of the Parent increased by 22%, or P7.7 billion, to P27.4 billion. The following major items brought about the net decrease in equity attributable to equity holders of the Parent:

(1) On November 23, 2007, the SEC approved the increase in authorized capital stock of FPHC from P12.1 billion, divided into 1,210,000,000 shares with par value of P10 a share to P32.1 billion, consisting of 1,210,000,000 common shares with par value of P10 a share and 200,000,000 preferred shares with par value of P100 a share. The total number of preferred shares is broken down as follows: 50,000,000 Series “A”, 50,000,000 Series “B” and XQFODVVL¿HGSUHIHUUHGVKDUHV

FGHC International, a wholly-owned Cayman Island-based subsidiary, First Philec and FPRC, both wholly-owned subsidiaries, executed Subscription Agreements on November 6, 2007 for 20,000,000, 15,000,000 and 15,000,000, Series “A” preferred shares, respectively. FGHC International subscribed and paid for P2.0 billion worth of shares while First Philec and FPRC have subscriptions for P1.5 billion each. The subscription of FGHC International is presented as Preferred stock and a debit to the equity section of the consolidated balance sheet under the “Parent Company Preferred Stock Held by a Subsidiary” account. The subscription to the Series “A” preferred shares by First Philec and FPRC were redeemed by FPHC on February 20, 2008 and February 21, 2008, respectively.

(2) The Parent Company issued P4.3 billion Preferred shares having a dividend rate of 8.7231% per annum. The non- voting, non-convertible and peso-denominated shares were listed in the Philippine Stock Exchange on April 30, 2008.

(3) Share in unrealized fair value gains on available for sale investments of an associate decreased by 37% to P12 million. The decrease pertains to unrealized gains on AFS investments of the Group.

(4) Cumulative translation adjustment (CTA) increased by 101%, or P6.1 billion, to P12.2 billion. Upon adoption of PAS 21, The Effects of Changes in Foreign Exchange Rates, the functional and presentation currency of the First Gen Group, First Sumiden Realty Inc., First Private Power Corp., and First Sumiden Circuits, Inc. was changed from 3KLOLSSLQHSHVRWR86'ROODURQDUHWURDFWLYHEDVLVDQGSULRU\HDUFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVZHUHUHVWDWHG The capitalized foreign exchange differences arising from the U.S. Dollar-denominated obligations were eliminated in the translation process without negatively affecting the retained earnings. For purposes of consolidating the DFFRXQWVRI)LUVW*HQWRWKH)LUVW+ROGLQJV*URXSFRQVROLGDWHG¿QDQFLDOVWDWHPHQWVWKHDFFRXQWVRI)LUVW*HQZHUH translated to Philippine peso, which is the Parent Company’s presentation currency. Any exchange differences from retranslation was taken directly as cumulative translation adjustments. The peso depreciation brought about an increase in negative CTA. Share in cumulative translation adjustments of associates (First Philec’s FSCI), decreased by 105%, or P137 million, to P7 million negative balance.

8 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

(5) In 2008, First Holdings Group changed its accounting for acquisition of minority interest from parent entity concept method to entity concept method to be aligned with the preferred method of accounting as provided for under PFRS 3 ( R ) and to be consistent with the accounting policy adopted by First Gen Group, its major operating subsidiary. Under this method, the difference between the fair value of the consideration and the net book value of the net assets DFTXLUHGLVSUHVHQWHGDVHTXLW\7KHFKDQJHZDVDFFRXQWHGIRUUHWURVSHFWLYHO\DQGFRQVROLGDWHG¿QDQFLDO statements have been restated. The change resulted in the reversal of gain on dilution amounting to P2.7 billion recognized in the 2006 consolidated statement of income related to the dilution of First Holdings’ interest in First Gen Group as a result of the latter’s public offering of its common shares. This was recorded as an adjustment to Equity Reserve account in the consolidated Balance Sheet. The 34% decrease to P1.8 billion was a result of the loss on dilution relative to the sale of 60% interest of First Gen in First Gen Hydro.

(6) The P5.2 billion excess of acquisition cost over carrying value of minority interest represents the difference between the carrying amount of the minority interest (P6.0 billion) and the purchase price (P11.2 billion) in FPHC’s purchase of 40% economic and voting interest in FPUC.

(7) Retained earnings increased by 4%, or P1.1 billion, to P29.7 billion due to the net income generated for the period (please refer to Statement of Changes in Equity), reduced by dividends declared.

0LQRULW\LQWHUHVWGHFUHDVHGE\

Minority interest decreased by 23%, or P12.6 billion, to P41.3 billion due to the decrease in the portion of assets attributed to minority shareholders, primarily that of FPHC and First Gen.

PFRS requires changes in the presentation of minority interests in the consolidated balance sheets and consolidated statements of income. Minority interest is now presented as a footnote in the Statement of income and as part of Equity in the FRQVROLGDWHG¿QDQFLDOVWDWHPHQWV

9 Management’s Discussion and Analysis (December 31, 2008 Compared To December 31, 2007)

DECEMBER 31, 2008 COMPARED TO DECEMBER 31, 2007

5HVXOWVRI2SHUDWLRQV

Revenue

FPHC’s consolidated revenues totaled P78.6 billion for the year ended December 31, 2008. This is higher by 43% (P23.6 billion) compared to the previous year.

The following table sets out the contribution of each of the components of revenues as a percentage of the Company’s total revenue for December 31, 2008 and 2007:

For the year ended December 31 Increase (decrease) 2008 2007 Amount % (amounts in MM P, except percentages) Sale of electricity P 65,710 84% P 49,115 89% P 16,595 34% Sale of steam 4,242 5% 377 1% 3,865 1025% Sale of merchandise 2,455 3% 1,510 3% 945 63% Contracts and services 2,234 3% 1,682 3% 552 33% Share in project revenue of joint 1,527 2% 362 1% 1,165 322% venture Equity in net earnings of 1,405 2% 1,607 3% (202) -13% associate Revenue from drilling services 726 1% 52 0% 674 1296% Sale of real estate 266 0% 291 0% (25) -9%

Total P 78,565 100% P 54,996 100% P 23,569 43%

The Company’s revenues comprise of:

6DOHRIHOHFWULFLW\

Sale of electricity accounts for 84% of total revenue in 2008 and 89% in 2007. Revenue from sale of electricity went up by 34% (P16.6 billion) to P65.7 billion due to the following: recognition of EDC’s revenues from sale of electricity for the whole year of 2008 vis-à-vis previous year’s one month revenue; increase in capacity fees, albeit slightly, for both Santa Rita and San Lorenzo power plants as a result of higher average Net Dependable Capacity (NDC), by 2.3% and 5.0%, respectively, to 1,043.4 MW and 530 MW; and, increase in fuel charges due to higher fuel prices.

Sale of steam

('&UHFRJQL]HUHYHQXHVIURPVDOHRIVWHDPZKHQWKHVWHDPJHQHUDWHGRULWVE\SURGXFWSDVVHVWRWKHÀRZPHWHUVLQVWDOOHG at the interface point for conversion by the buyer into electricity. Sale of steam is based on sales price per kWh of gross or net JHQHUDWLRQDQGJXDUDQWHHGWDNHRUSD\DWFHUWDLQSHUFHQWDJHSODQWIDFWRUVXEMHFWWRLQÀDWLRQDGMXVWPHQWVDQGQHWRIWKHSRUWLRQ UHSUHVHQWLQJFROOHFWLRQRIFRQFHVVLRQUHFHLYDEOHVDQGUHODWHG¿QDQFHLQFRPH6DOHRIVWHDPLVQRZWKHVHFRQGUHYHQXHGULYHU 10 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

FRQWULEXWLQJWRWRWDOUHYHQXHVLQ7KHVLJQL¿FDQWLQFUHDVH  LQVDOHRIVWHDPWRP4.2 billion is due to the whole year recognition of sales vis-à-vis one month only last year.

6DOHRI0HUFKDQGLVH

Revenue from sale of merchandise is derived from the sale of power and distribution transformers. Sale of merchandise contributed 3% to total revenues in 2008 and in 2007. Sale of merchandise grew by 63% (P945 million) to P2.5 billion, wherein sale of manufactured transformers grew by 11%, as well as the full year contribution of newly established subsidiaries under First Philec.

&RQWUDFWVDQGVHUYLFHV

Revenue from contracts and services is primarily derived from construction contracts, engineering projects and pipeline shipment of fuel and other petroleum products. Revenue from contracts and services accounts for 3% of total revenues in 2008 and in 2007.

Revenues from contracts and services increased by 33% (P552 million) to P2.2 billion, due to full year recognition of revenues from construction services of EDC.

6KDUHLQSURMHFWUHYHQXHRIMRLQWYHQWXUH

First Balfour Inc. entered into several unincorporated construction and engineering joint venture agreements. The share in project revenue of joint venture amounted to P1.5 billion in 2008, higher by 322% (P1.2 billion) against last year. The increase was primarily due to construction development of the St. Luke’s Medical Center.

(TXLW\LQQHWHDUQLQJVRIDVVRFLDWHV

This represents the Company’s share in the consolidated net income of, among others, Meralco, First Private Power Corporation, Rockwell Land Corporation and First Sumiden Circuits, Inc.

Equity in net earnings of associates declined by 13% (P202 million) to P1.4 billion. The decline was due to the lower income posted by Meralco and BPPC.

5HYHQXHIURPGULOOLQJVHUYLFHV

Revenue from drilling services increased by 1296%, or P674 million, to P726 million due to full year recognition of revenues from drilling services of EDC.

6DOHRIUHDOHVWDWH

Revenue from sale of real estate is derived from sale of industrial lots and ready-built factories (RBF) of First Philippine Industrial Park (FPIP) in Batangas. Sale of real estate contributed less than 1% to total revenues in 2008 and in 2007. Sale of real estate contracted by 9% (P25 million) to P266 million as a result of lower industrial lots sold from 13.74 hectares in 2007 to merely 5.27 in 2008. The sale of RBF this year (against none last year), alleviated the effect in revenues of the soft industrial lots market.

11 Costs and expenses

FPHC’s consolidated cost and expenses totaled P61.0 billion. This is higher by 44% (P18.7 billion) compared to the previous year’s P42.3 billion.

The following table sets out the contribution of each of the components of cost and expenses as a percentage of the Company’s total cost and expenses for 2008 and 2007:

For the year ended December 31 Increase (decrease) 2008 2007 Amount % (amounts in MM P, except percentages) Operations and maintenance P 46,751 77% P 34,574 82% P 12,177 35% General and administrative expense 9,742 16% 5,007 12% 4,735 95% Merchandise sold 2,096 4% 1,227 3% 869 71% Share in project costs of joint venture 1,399 2% 372 1% 1,027 276% Contracts and services 786 1% 1,006 2% (220) -22% Real estate sold 202 0% 135 0% 67 50%

Total P 60,976 100% P 42,321 100% P 18,655 44%

The Company’s costs and expenses comprise of:

2SHUDWLRQVDQGPDLQWHQDQFH

3RZHUSODQWRSHUDWLRQVDQGPDLQWHQDQFH 2 0 H[SHQVHVLQFOXGHIXHOFKDUJHVSLSHOLQHFKDUJHV¿[HGDQGYDULDEOH2 0 charges, start-up costs and Net Dependable Capacity bonuses paid to Siemens Operations as O&M contractor for Santa Rita and San Lorenzo. Cost of power plant operations and maintenance accounts for 77% of total cost and expenses in 2008 and 82% in 2007.

Cost of power plant operations and maintenance increased by 35% (P12.2 billion) to P46.8 billion. As an offshoot of the higher revenues, cost of power plant operations and maintenance increased due to the full year recognition of revenues (and FRUUHVSRQGLQJFRVWV RI('&0RUHRYHUWKH¿[HG2 0FRPSRQHQWIRU6DQWD5LWDDQG6DQ/RUHQ]RDOVRLQFUHDVHGGXH to the higher NDC values for both plants and upward CPI adjustments following the requirements of their respective O&M agreements. The average price of natural gas was also higher, by 37% to $11.7/GJ.

*HQHUDODQGDGPLQLVWUDWLYHH[SHQVHV

General and administrative expenses include depreciation and amortization, salaries and wages, taxes and license fees, LQVXUDQFHSUHPLXPVDQGSURIHVVLRQDOIHHVUHSDLUVDQGPDLQWHQDQFHWUDQVSRUWDWLRQDQGWUDYHOUHQWDOVDQGRI¿FHVXSSOLHV among others. General and administrative expenses account for 16% of total cost and expenses in 2008 and 12% in 2007. General and administrative expenses increased by 95%, P4.7 billion, to P9.7 billion. The increase was primarily due to recognition of full year expenses of EDC.

12 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

0HUFKDQGLVHVROG

Cost of merchandise sold pertains to costs which are related to the manufacture of products. Cost of merchandise sold accounts for 4% of total cost and expenses in 2008 and 3% in 2007. Cost of merchandise sold increased by 71% (P869 million) to P2.1 billion, due to the increase in manufacturing cost of Philec, as well as the cost associated with the revenues of the new companies under First Philec.

6KDUHLQSURMHFWFRVWVRIMRLQWYHQWXUH

The corresponding share in project costs of joint venture amounted to P1.4 billion, higher by 276% (P1.0 billion), again, due to the construction development of the St. Luke’s Medical Center.

&RQWUDFWVDQGVHUYLFHV

Cost of contracts and services pertains to contract costs, which include all direct materials, labor costs and indirect costs related to contract performance. Provision for estimated losses on uncompleted contracts, likewise, form part of the cost of contracts and services. Such provision is recognized in the period in which the loss is determined. Cost of contracts and services accounts for 1% of total cost and expenses for 2008 and 2% in 2007. Cost of contracts and services decreased, by 22% (P220 million) to P786 million, as a consequence of the decrease in revenues of FBI.

Real estate sold

Cost of real estate sold is determined on the basis of the acquisition cost of the land plus its full development costs, which include estimates of costs for future development work. Cost of real estate sold accounts for less than 1% of total cost and expenses in 2008 and in 2007. Cost of real estate sold went up, by 50% (P67 million) to P202 million, due to the cost related to the RBF sold.

Finance costs

Finance costs comprise principally of interest expense on debt facilities of the Parent (through the Special Purpose Vehicles) and Power Generation Group. Finance costs went up by 89% (P5.1 billion) to P10.9 billion, due to the increase in debt level starting on the latter part of 2007 up to the current period in connection with the acquisition of a controlling stake in EDC.

Foreign exchange gain (loss)

Foreign exchange gain or loss arose primarily from the restatement of dollar-denominated transactions. Foreign exchange loss for the period reached P8.5 billion, a reversal of the previous year’s P1.6 billion foreign exchange gain, due to translation adjustments on foreign exchange transactions mainly pertaining to the Parent and First Gen Group.

Finance Income

Finance income decreased by 31%, P560 million, to P1.3 billion due to lower cash balance during the period.

Gain on sale of investment in shares of stock

)RUWKH¿UVWTXDUWHURIWKH3DUHQW&RPSDQ\VROGDWRWDORIVKDUHVRILWVLQYHVWPHQWVLQ6L5)7HFKQRORJ\ Holdings, Inc. (SiRF) realizing a gain of P44 million. 13 Other income (net)

Other income represents management fees and others (like rent, dividends and miscellaneous income). Other income LQFUHDVHGVLJQL¿FDQWO\E\RUP5.5 billion, to P5.9 billion, due to EDC’s interest income on service concessions (P2.1 billion) and favorable arbitral award (P2.1 billion). Also, P1.3 billion mark-to-market gains on derivative transactions relating to First Gen’s convertible bonds and EDC’s hedging contracts were recognized.

Income before income tax

As a result of the foregoing, income before income tax contracted by 50% (P5.32 billion) to P5.35 billion from P10.7 billion last year.

3URYLVLRQVIRU %HQH¿WIURP ,QFRPH7D[

The Group reported a provision for income tax of P3.4 billion for the year, higher by 189% (P2.2 billion) against the previous year. Where provision for current income tax totaled P3.5 billion, higher by 103% (P1.8 billion) due mainly to the end of the income tax holiday of FGPC and higher income tax from EDC, on account of the recognition of full year income. Deferred EHQH¿WIURPLQFRPHWD[LVGRZQWRP72 million, from P537 million previously as a result of the depreciation of the Philippine peso vis-à-vis the US Dollar.

Income from discontinued operations

%HQSUHVDQG)3+&ZLWK0HWUR3DFL¿F,QYHVWPHQWV&RUSRUDWLRQ 03,& H[HFXWHGD6KDUH3XUFKDVH$JUHHPHQW 63$ WRVHOO WKHLUVWDNHLQWKHLUWROOURDGEXVLQHVVWR03,&7KH63$LVDGH¿QLWLYHDJUHHPHQWFRQWHPSODWHGE\WKHOHWWHURIDJUHHPHQW signed by the parties that became effective on August 7, 2008. The acquisition by MPIC resulted in MPIC holding 67.1% effective interest in Manila North Tollways Corporation (MNTC), the concession holder of the North Luzon Expressway and 46% effective interest in Tollways Management Corporation. The agreement involves the sale of Benpres’ 48.08% and FPHC’s 50.04% interest in FPII. The transaction was completed on November 13, 2008.

Operating results of the roads and tollways operations from the period beginning January 1, 2008 up to November 13, 2008 amounting to P752 million were treated as income from discontinued operations. The roads and tollways’ operating results were lower by 66% (P1.4 billion) compared to the previous year, where previous year represents full year operating results. 0RUHRYHULQWKHEXVLQHVVZDVDIIHFWHGE\IRUHLJQH[FKDQJHORVVHVDQGUHGXFHGWUDI¿FYROXPH

Gain on sale of a subsidiary

As a result of the sale transaction, the First Holdings Group recognized a gain on sale of investment in subsidiary amounting to P2.8 billion.

Net income

Net income decreased by 53% (P6.2 billion) to PELOOLRQSULPDULO\GXHWRKLJKHU¿QDQFHFRVWVDQGIRUHLJQH[FKDQJHORVVHV

Net income attributable to Equity holders of the Parent

Of the total net income, Net income attributable to Equity holders of the Parent amounted to P1.2 billion. This is lower by 73% (P3.3 billion) compared to the previous year’s P4.5 billion, for the same reasons cited above. 14 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

Minority Interest

PFRS requires changes in the presentation of minority interests in the consolidated balance sheets and consolidated statements of income. Minority Interests is now presented as a footnote in the Statement of income and as part of Equity in the consolidated Balance Sheets.

Minority interest decreased by 41% (P2.9 billion) to P4.3 billion, due generally to lower bottom line posted by the operating VXEVLGLDULHVDQGKLJKHUIRUHLJQH[FKDQJHORVVHVDQG¿QDQFHFRVWVLQFXUUHGE\WKHSDUHQWFRPSDQLHV

Earnings per share for Net income attributable to Equity holders of the Parent

Basic earnings per share is at P1.859, while Diluted earnings per share is at P1.84, both lower against the previous year by 76%. The decrease in EPS for the period was attributed to the lower net income.

15 Management’s Discussion and Analysis (December 31, 2007 Compared To December 31, 2006)

DECEMBER 31, 2007 COMPARED TO DECEMBER 31, 2006

Results of Operations

Revenue

FPHC’s consolidated revenues totaled P55.0 billion for the year ended December 31, 2007. This is lower by 5% (P2.9 billion) compared to the previous year.

The following table sets out the contribution of each of the components of revenues as a percentage of the Company’s total revenue for December 31, 2007 and 2006:

For the year ended December 31 Increase (decrease) 2007 2006 Amount % (amounts in MM P, except percentages)

Sale of electricity P 49,115 89% P 51,176 89% P (2,061) -4% Sale of steam 377 1% - 0% 377 100% Sale of merchandise 1,510 3% 1,184 2% 326 28% Contracts and services 1,682 3% 1,322 2% 360 27% Share in project revenue of joint venture 362 1% - 0% 362 100% Equity in net earnings of associate 1,607 3% 4,066 7% (2,459) -60% Revenue from drilling services 52 0% - 0% 52 100% Sale of real estate 291 0% 181 0% 110 61%

Total P 54,996 100% P 57,929 100% P (2,933) -5%

The Company’s revenues comprise of:

6DOHRIHOHFWULFLW\

Sale of electricity accounts for 89% of total revenue in 2007 and in 2006. Revenue from sale of electricity went down by 4% (P2.1 billion) to P49.1 billion from P51.2 billion in 2006, due to the strengthening of peso. In dollar terms (which is the functional currency of the power generation group), revenues rose by 5% ($51.9 million) due to the following: full-year operation of Pantabangan-Masiway hydro-power facility. This facility was turned over to First Gen on November 18, 2006, thereby, contributing around 45 days’ worth of revenues in 2006; revenues from sale of electricity of the newly-acquired EDC amounting to $21.8 million; capacity charges for both Santa Rita and San Lorenzo also increased due to the implementation of one of the power augmentation initiatives, which improved the Net Dependable Capacity of both plants. The average NDC for Santa Rita and San Lorenzo reached 1,019 MW and 505 MW, respectively.

16 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

Sale of steam

('&UHFRJQL]HUHYHQXHVIURPVDOHRIVWHDPZKHQWKHVWHDPJHQHUDWHGRULWVE\SURGXFWSDVVHVWRWKHÀRZPHWHUVLQVWDOOHG at the interface point for conversion by the buyer into electricity. Sale of steam is based on sales price per kWh of gross or net JHQHUDWLRQDQGJXDUDQWHHGWDNHRUSD\DWFHUWDLQSHUFHQWDJHSODQWIDFWRUVXEMHFWWRLQÀDWLRQDGMXVWPHQWVDQGQHWRIWKHSRUWLRQ UHSUHVHQWLQJFROOHFWLRQRIFRQFHVVLRQUHFHLYDEOHVDQGUHODWHG¿QDQFHLQFRPH6DOHRIVWHDPFRQWULEXWHGWRWRWDOUHYHQXHV in 2007, representing one month contribution of EDC.

6DOHRI0HUFKDQGLVH

Revenue from sale of merchandise is derived from the sale of power and distribution transformers. Sale of merchandise contributed 3% to total revenues in 2007 and 2% in 2006. Sale of merchandise grew by 28% (P326 million) to P1.5 billion from P1.2 billion in 2006, wherein sale of manufactured transformers leaped by 43%.

&RQWUDFWVDQGVHUYLFHV

Revenue from contracts and services is primarily derived from construction contracts, engineering projects and pipeline shipment of fuel and other petroleum products. Revenue from contracts and services accounts for 3% of total revenues in 2007 from 2% in 2006.

Revenues from contracts and services increased by 27% (P360 million) to P1.7 billion, due mainly to construction projects of FBI and service contracts of First Philec.

6KDUHLQSURMHFWUHYHQXHRIMRLQWYHQWXUH

First Balfour Inc. entered into several unincorporated construction and engineering joint venture agreements. The share in project revenues of joint venture amounted to P362 million in 2007 against none in 2006. The increase was primarily due to construction development of the St. Luke’s Medical Center.

(TXLW\LQQHWHDUQLQJVRIDVVRFLDWHV

This represents the Company’s share in the consolidated net income of, among others, Meralco, First Private Power Corporation, Rockwell Land Corporation and First Sumiden Circuits, Inc.

Equity in net earnings of associates declined by 60% (P2.5 billion) to P1.6 billion. The decline was due to the lower income posted by Meralco: Meralco’s net income amounted to P4.0 billion from P13.9 billion in 2006 due to absence of one time gains. (DUQLQJVLQUHÀHFWHGWKHZULWHEDFNRIDOOSURYLVLRQVIRUSUREDEOHORVVHVERRNHGEHWZHHQDQG7KHZULWHEDFN followed the SC Decision upholding a regulatory order that allowed Meralco to raise charges through the unbundling of its tariffs.

5HYHQXHIURPGULOOLQJVHUYLFHV

Revenue from drilling services amounted to P52 million representing one-month worth of drilling services of EDC.

17 6DOHRIUHDOHVWDWH

Revenue from sale of real estate is derived from sale of industrial lots of First Philippine Industrial Park (FPIP) in Batangas. Sale of real estate contributed less than 1% to total revenues in 2007 and in 2006. Sale of real estate increased by 61% (P110 million) to P291 million as a result of the increase in industrial lots sold by FPIP from 9.6 hectares 2006 against 13.7 hectares in 2007.

Costs and expenses

FPHC’s consolidated cost and expenses totaled P42.3 billion. This is lower by 4% (P1.6 billion) compared to the previous year’s P43.9 billion.

The following table sets out the contribution of each of the components of cost and expenses as a percentage of the Company’s total cost and expenses for 2007 and 2006:

For the year ended December 31 Increase (decrease) 2007 2006 Amount % (amounts in MM P, except percentages) Operations and maintenance P 34,574 82% P 38,610 88% P (4,036) -10% General and administrative expense 5,007 12% 3,387 8% 1,620 48% Merchandise sold 1,227 3% 978 2% 249 25% Share in project costs of joint venture 372 1% - -% 372 100% Contracts and services 1,006 2% 831 2% 175 21% Real estate sold 135 0% 96 0% 39 41%

Total P 42,321 100% P 43,902 100% P (1,581) -4%

The Company’s costs and expenses comprise of:

2SHUDWLRQVDQGPDLQWHQDQFH

3RZHUSODQWRSHUDWLRQVDQGPDLQWHQDQFH 2 0 H[SHQVHVLQFOXGHIXHOFKDUJHVSLSHOLQHFKDUJHV¿[HGDQGYDULDEOH2 0 charges, start-up costs and Net Dependable Capacity bonuses paid to Siemens Operations as O&M contractor for Santa Rita and San Lorenzo. Cost of power plant operations and maintenance accounts for 82% of total cost and expenses in 2007 and 88% in 2006.

Cost of power plant operations and maintenance decreased by 10% (P4.0 billion) to P34.6 billion. Aside from the strengthening of the peso, the decrease in cost of power plant operations and maintenance was brought about by the lower fuel charges. Fuel charges in 2006 were comparatively higher as a result of the use of liquid fuel during the Malampaya outage, wherein liquid fuel used averaged at $11.7/GJ, vis-à-vis $8.54/GJ in 2007. Moreover, the gas plants were able to recover the banked gas totaling $15.9 million given that both plants were able to consume the required take-or-pay quantity for 2007.

18 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

*HQHUDODQGDGPLQLVWUDWLYHH[SHQVHV

General and administrative expenses include depreciation and amortization, salaries and wages, taxes and license fees, LQVXUDQFHSUHPLXPVDQGSURIHVVLRQDOIHHVUHSDLUVDQGPDLQWHQDQFHWUDQVSRUWDWLRQDQGWUDYHOUHQWDOVDQGRI¿FHVXSSOLHV among others. General and administrative expenses account for 12% of total cost and expenses in 2007 and 8% in 2006. General and administrative expenses increased by 48%, P1.6 billion, to P5.0 billion. The increased was primarily due to payment of documentary stamp taxes on loans and personnel expenses.

0HUFKDQGLVHVROG

Cost of merchandise sold pertains to costs which are related to the manufacture of products. Cost of merchandise sold accounts for 3% of total cost and expenses in 2007 and 2% in 2006. Cost of merchandise sold increased by 25% (P249 million) to P1.2 billion, due to the increase in manufacturing cost of Philec and Fedcor, as a consequence of the increase in revenues, as well as the general increase in cost of raw materials, particularly silicon steel and copper wires.

6KDUHLQSURMHFWFRVWVRIMRLQWYHQWXUH

The corresponding share in project costs of joint venture amounted to P372 million, against none in 2006.

&RQWUDFWVDQGVHUYLFHV

Cost of contracts and services pertains to contract costs, which include all direct materials, labor costs and indirect costs related to contract performance. Provision for estimated losses on uncompleted contracts, likewise, form part of the cost of contracts and services. Such provision is recognized in the period in which the loss is determined. Cost of contracts and services accounts for 2% of total cost and expenses for 2007 and 2006. Cost of contracts and services increased by 21% (P175 million) to P1.0 billion as a consequence of the increase in construction revenues of FBI.

Real estate sold

Cost of real estate sold is determined on the basis of the acquisition cost of the land plus its full development costs, which include estimates of costs for future development work. Cost of real estate sold accounts for less than 1% of total cost and expenses in 2007 and in 2006. Cost of real estate sold increased by 41% (P39 million) to P135 million, due to higher lot area sold this year.

Finance costs

Finance costs comprise principally of interest expense on debt facilities of the Parent (through the Special Purpose Vehicles), Power Generation and Roads & Tollways Subsidiaries. Finance costs decreased by 3% (P165 million) to P5.8 billion from P5.9 billion year-ago level, inspite of the increase in loans. The lower interest cost was brought about by the prepayment of the Santa Rita loans in February 2007. Proceeds of the additional loans obtained by FPHC and First Gen were received during the latter part of 2007.

Foreign exchange gain (loss)

Foreign exchange gain or loss arose primarily from the restatement of dollar-denominated transactions. Foreign exchange gain for the period increased by 1444% (P1.5 billion) to P1.6 billion, due to translation adjustments on foreign exchange transactions mainly pertaining to FPHC as the weighted average foreign exchange rate between Philippine peso and US dollar improved.

19 Finance Income

Finance income decreased by 41%, P1.3 billion, to P1.8 billion due to lower cash balance during the period.

Gain on sale of investment in shares of stock

During the year, the Parent Company sold a total of 140,000 shares of its investments in SiRF Technology Holdings, Inc. (SiRF) realizing a gain of P44 million. This is, however, lower by 92% (P491 million) compared to the previous year’s gain of P535 million, wherein FPHC sold a total of 380,000 shares.

Other income (net)

Other income represents management fees and others (like rent, dividends and miscellaneous income). Other income decreased by 53% (P350 million) to P307 million, mainly due to previous year’s unrealized fair value gains on investment held for trading.

Income before income tax

As a result of the foregoing, income before income tax contracted by 15% (P1.8 billion) to P10.7 billion from P12.5 billion last year.

3URYLVLRQVIRU %HQH¿WIURP ,QFRPH7D[

The Group reported a provision for income tax of P1.2 billion for the year, lower by 4% (P53 million) vis-à-vis last year. Of the total provision, P1.7 million pertains to current provision for income tax, which registered an increase of 343% (P1.3 billion) due PDLQO\WRWKHHQGRIWKHLQFRPHWD[KROLGD\RI)*3&'HIHUUHGEHQH¿WIURPLQFRPHWD[DPRXQWHGWRP537 million, a reversal of the previous year’s P846 deferred provision for income tax. This resulted from the differences between the treatment of taxes XQGHU)XQFWLRQDO&XUUHQF\5HSRUWLQJ )&5 ZKLFK)LUVW*HQDQGLWVPDMRUVXEVLGLDULHVDGRSWHGLQ:KLOHWKH¿QDQFLDO VWDWHPHQWVDUHSUHVHQWHGLQ86'ROODUVIRU¿QDQFLDOUHSRUWLQJSXUSRVHVEDVHGRQWKHODWHVW%,5UHTXLUHPHQWVFRPSDQLHVWKDW KDYHDGRSWHGWKH)&5DUHREOLJHGWRFRQWLQXHSUHVHQWLQJWKHLU¿QDQFLDOVWDWHPHQWVSUHSDULQJWKHLUWD[UHWXUQVDQGFRPSXWLQJ and paying their tax liabilities in Philippine pesos.

Income from discontinued operations

%HQSUHVDQG)3+&ZLWK0HWUR3DFL¿F,QYHVWPHQWV&RUSRUDWLRQ 03,& H[HFXWHGD6KDUH3XUFKDVH$JUHHPHQW 63$ WRVHOO WKHLUVWDNHLQWKHLUWROOURDGEXVLQHVVWR03,&7KH63$LVDGH¿QLWLYHDJUHHPHQWFRQWHPSODWHGE\WKHOHWWHURIDJUHHPHQW signed by the parties that became effective on August 7, 2008. The acquisition by MPIC resulted in MPIC holding 67.1% effective interest in Manila North Tollways Corporation (MNTC), the concession holder of the North Luzon Expressway and 46% interest in Tollways Management Corporation. The agreement involves the sale of Benpres’ and FPHC’s shares in FPII. The transaction was completed on November 13, 2008. As a result of the foregoing, operating results of the roads and tollways operations were treated as income from discontinued operations. Income from discontinued operations amounted to P2.2 billion. The roads and tollways’ operating results were higher by 30% (P505 million) compared to the previous year.

20 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

Net income

Net income decreased by 10% (P1.3 billion) to P11.7 billion primarily due to previous year’s reversal of Meralco’s provisions.

Net income attributable to Equity holders of the Parent

Of the total net income, Net income attributable to Equity holders of the Parent amounted to P4.5 billion. This is lower by 27% (P1.6 billion) compared to the previous year’s P6.1 billion, for the same reasons cited above.

Minority Interest

PFRS requires changes in the presentation of minority interests in the consolidated balance sheets and consolidated statements of income. Minority Interests is now presented as a footnote in the Statement of income and as part of Equity in the consolidated Balance Sheets.

Minority interest increased by 5% (P0.4 billion) to P7.2 billion primarily due to the minority shareholders’ share in EDC’s net income.

Earnings per share for Net income attributable to Equity holders of the Parent

Basic earnings per share is at P7.642, while Diluted earnings per share is at P7.542, both lower against the previous year by 28%. The decrease in EPS for the period was attributed to the lower net income.

21 Control and Compensation Information

Directors and Executive Officers of the Registrant

Board of Directors Augusto Almeda-Lopez Cesar B. Bautista Thelmo Y. Cunanan Jose P. De Jesus Peter D. Garrucho, Jr. Oscar J. Hilado Elpidio L. Ibañez Eugenio L Lopez III Federico R. Lopez Manuel M. Lopez Oscar M. Lopez Artemio V. Panganiban Vicente T. Paterno (UQHVWR%5X¿QR-U Washington Z. Sycip

([HFXWLYH&RUSRUDWH2I¿FHUV 0U2VFDU0/RSH] &KDLUPDQRIWKH%RDUG &KLHI([HF2I¿FHU Mr. Augusto Almeda-Lopez Vice Chairman of the Board 0U(OSLGLR/,EDxH] 3UHVLGHQW &KLHI2SHUDWLQJ2I¿FHU 0U)UDQFLV*LOHV%3XQR 6HQLRU9LFH3UHV7UHDVXUHU &KLHI)LQDQFH2I¿FHU Mr. Federico R. Lopez Managing Director for Energy Mr. Arthur A. De Guia Managing Director for Manufacturing & Portfolio Investments Group Mr. Fiorello R. Estuar Head of Infrastructure Business Development Mr. Benjamin K. Liboro Senior Vice President Mr. Danilo C. Lachica Senior Vice President Mr. Richard B. Tantoco Senior Vice President Ms. Perla R. Catahan Vice President & Comptroller Mr. Ramon T. Pagdagdagan Vice President & Internal Auditor Mr. Anthony M. Mabasa Vice President Mr. Leonides U. Garde Vice President Mr. Ricardo B. Yatco Vice President Mr. Hector Y. Dimacali Vice President Mr. Victor Emmanuel B. Santos, Jr. Vice President Mr. Oscar R. Lopez, Jr. Vice President Mr. Robert C. Chan Vice President Mr. Rodrigo E. Franco Vice President Mr. Benjamin R. Lopez Vice President Mr. Ariel C. Ong Vice President Ms. Elizabeth M. Canlas Vice President 0U(QULTXH,4XLDVRQ &RUSRUDWH6HFUHWDU\ &RPSOLDQFH2I¿FHU 0U5RGROIR5:DJD-U 9LFH3UHVLGHQW$VVLVWDQW&RUSRUDWH6HFUHWDU\ $VVLVWDQW&RPSOLDQFH2I¿FHU

Independent Directors Amb. Cesar B. Bautista Mr. Oscar J. Hilado Chief Justice Artemio V. Panganiban Mr. Vicente T. Paterno Mr. Washington SyCip

'LUHFWRUVDQGH[HFXWLYHFRUSRUDWHRI¿FHUVKROGRI¿FHIRUDSHULRGRIRQH  \HDUDQGXQWLOVXFKWLPHZKHQWKHLUVXFFHVVRUVDUH HOHFWHGDQGKDYHTXDOL¿HG

22 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT Board Of Directors

OSCAR M. LOPEZ 78 Years Old, Filipino 0U2VFDU0/RSH]KDVEHHQ&KDLUPDQDQG&KLHI([HFXWLYH2I¿FHURIWKH&RPSDQ\VLQFH0U/RSH]LVWKH&KDLUPDQ of the Executive Committee, Nomination and Election Committee, Investment and Finance Committee, and the Compensation and Remuneration Committee of the Company. Mr. Lopez is the Chairman of the Board of Directors of Benpres Holdings Corp., Lopez, Inc., First Gen Corp., First Balfour, Inc., First Phil. Electric Corp., First Phil. Industrial Corp., First Phil. Industrial Park, Inc., First Sumiden Circuits, Inc. and First Philec Solar Corp., among others. Before joining the Company, he was the President of Benpres from 1973 to 1986. He studied at the Harvard College and graduated cum laude (Bachelor of Arts) in +H¿QLVKHGKLV0DVWHUVRI3XEOLF$GPLQLVWUDWLRQDWWKH/LWWDXHU6FKRRORI3XEOLF$GPLQLVWUDWLRQDOVRDW+DUYDUGLQ +HKDVEHHQSDUWRIWKH/RSH]JURXSLQDGLUHFWRUVKLSDQGH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV0U/RSH]LVOLNHZLVHD director in ABS-CBN Broadcasting Corporation.

AUGUSTO ALMEDA-LOPEZ 80 Years Old, Filipino Mr. Augusto Almeda-Lopez has been a Director of the Company since 1986 and Vice-Chairman since 1993. Mr. Almeda- Lopez is a member of the Company’s Executive Committee and Chairman of the Chairman’s Compensation and Remuneration Committee. Mr. Almeda-Lopez is also the Chairman of the Board of ADTEL, Inc. and ACRIS Corporation, Vice Chairman of ABS-CBN and a Director of First Phil. Industrial Corp., Forst Electro Dynamics Corp., Philippine Electric Corp., Bayantel, Skyvision Corp., Radio Communications of the Phils., Inc. and a Trustee of ABS-CBN Foundation, Inc. He graduated with an Associate in Arts degree from Ateneo de Manila and a Bachelor of Laws degree from the University of the Philippines. He SODFHGIRXUWKLQWKH%DU([DPV+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDGLUHFWRUVKLSFDSDFLW\IRUWKHODVW¿YH  \HDUV

THELMO Y. CUNANAN 70 Years Old, Filipino Mr. Thelmo Y. Cunanan has been a Director of the Company since October 2004. Mr. Cunanan is also a member of the Investment and Finance Committee of the Company. Mr. Cunanan is a retired Lieutenant General of the Armed Forces of the Philippines. He was an Ambassador Extraordinary & Plenipotentiary to the Royal Kingdom of Cambodia and served as the President & CEO of the Philippine National Oil Company. He is currently the Chairman of the Social Security Commission, the top policy-making body of the Social Security System. He graduated with a Bachelor of Science degree in Military Art & (QJLQHHULQJIURPWKH3KLOLSSLQH0LOLWDU\$FDGHP\LQDQGWKH860LOLWDU\$FDGHP\LQ+H¿QLVKHGKLV0DVWHUV in Business Administration at the University of the Philippines. He is likewise a director of the Union Bank of the Philippines, Philex Mining Corporation and Belle Corporation.

JOSE P. DE JESUS 74 Years Old, Filipino Mr. Jose P. De Jesus sits as member of the Investment and Finance Committee. He has been a Director of the Company since -XQH+HLVFXUUHQWO\WKH3UHVLGHQWRIWKH0DQLOD(OHFWULF&RPSDQ\+HZDVWKH3UHVLGHQW &KLHI([HFXWLYH2I¿FHURIWKH Manila North Tollways Corp. from 2000 to 2008. He was Executive Vice President of Philippine Long Distance Telephone Co. from 1993 to 1999 and Chairman of the Manila Waterworks & Sewerage System from 1992 to 1993. He was Secretary of the Department of Public Works & Highways from January 1990 up to February 1993. He graduated with an AB Economics degree and Master of Arts in Social Psychology from the Ateneo de Manila University. He pursued his Graduate Studies in Human Development DWWKH8QLYHUVLW\RI&KLFDJRLQ+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDQH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

23 Board of Directors

PETER D. GARRUCHO, JR. 64 Years Old, Filipino Mr. Peter D. Garrucho, Jr. was the Managing Director of the Company from 1994 to January 2008. He has been a member of the Board for the same period. He is a member of the Audit Committee and Investment and Finance Committee. Mr. Garrucho was IRUPHUO\WKH9LFH&KDLUPDQ &KLHI([HFXWLYH2I¿FHURI)LUVW*HQDQGWKH)LUVW*DVFRPSDQLHV+HLVDOVRD%RDUG0HPEHURI)LUVW Gen and Energy Development Corp. He was also formerly Secretary of the Department of Trade & Industry (1991-1992) and of the 'HSDUWPHQWRI7RXULVP  +HKDVOLNHZLVHVHUYHGDV([HFXWLYH6HFUHWDU\ $GYLVHURQ(QHUJ\$IIDLUVLQWKH2I¿FHRIWKH President of the Philippines in 1992. Prior to joining government in June 1989, he was President of C.C. Unson Co., Inc., which he joined in 1981 after serving as a Full Professor at the Asian Institute of Management. He has an AB-BSBA degree from De La Salle University (1966) and an MBA degree from Stanford University (1971).

OSCAR J. HILADO Independent Director 71 Years Old, Filipino Mr. Oscar J. Hilado has been a Director of the Company since 1996. Mr. Hilado sits as Chairman of the Audit Committee and a member of the Nomination and Election Committee. Mr. Hilado is the Chairman of the Philippine Investment Management (“PHINMA”), Inc. He is also the Chairman of Holcim Phils., Inc.; President & Vice Chairman of Atlas Holdings Corporation. He is currently Chairman of the Board & Chairman of the Executive Committee of Bacnotan Consolidated Industries, Inc., Chairman of Trans Asia Power Generation Corp.; Chairman of Trans Asia Oil & Energy Development Corp. and Chairman of Bacnotan Industrial Park Corp. He graduated with Highest Honors and with a Gold Medal for General Excellence and a Bachelor of Science in Commerce Degree from De La Salle College (Bacolod). He pursued his Degree of Masters in Business Administration at the +DUYDUG*UDGXDWH6FKRRORI%XVLQHVV$GPLQLVWUDWLRQIURP0U+LODGRLVD&HUWL¿HG3XEOLF$FFRXQWDQW+HKDVEHHQ SDUWRIWKH/RSH]*URXSLQDGLUHFWRUVKLSFDSDFLW\ZLWKLQWKHODVW¿YH  \HDUV0U+LODGRLVOLNHZLVHDQLQGHSHQGHQWGLUHFWRURI$ Soriano Corporation.

ELPIDIO L. IBAÑEZ 58 Years Old, Filipino Mr. Elpidio L. Ibañez has been a Director of the Company since 1988 and was promoted to the position President & Chief Operating 2I¿FHULQ0D\DSRVLWLRQZKLFKKHKROGVXSWRWKHSUHVHQW0U,EDxH]ZDVDQ([HFXWLYH9LFH3UHVLGHQWIURPWR+H was Vice President from 1985 to 1987. He is the Chairman of the Board of Trustees of the Retirement Fund and the Employee Stock Purchase Plan Board of Administrators as well as member of the Executive Committee. He is Chairman of the Board of First Batangas +RWHO&RUSDQGWKH3UHVLGHQWRI)LUVW3KLO8QLRQ)HQRVD,QF+HLVDOVRD'LUHFWRURIYDULRXV)3+&VXEVLGLDULHVDQGDI¿OLDWHVVXFK DV)LUVW*HQ&RUS)LUVW*DV+ROGLQJV&RUS)LUVW*DV3RZHU&RUS8QL¿HG+ROGLQJV&RUS)LUVW3ULYDWH)LUVW%DOIRXU)LUVW3KLO Electric Corp., First Phil. Industrial Corp., First Phil. Industrial Park, Phil. Electric Corp. and Securities Transfer Services, Inc. He graduated with an AB Economics Degree from Ateneo de Manila University. He pursued his MBA at the University of the Philippines LQ+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDQH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV0U,EDxH]LVOLNHZLVHDGLUHFWRULQ First Gen.

EUGENIO L. LOPEZ III 56 Years Old, Filipino Mr. Eugenio L. Lopez III is a Director and member of the Investment and Finance Committee. He has been a director of the Company since June 2005. He is also the Chairman of the Board of ABS-CBN and has held this position since December 10, 1997. He joined ABS-CBN in 1986 as Finance Director before he became General Manager in 1988 and thereafter President in 1993. He worked as General Manager of the MIS group, Crocker National Bank in San Francisco, USA. Mr. Lopez is a recipient of various Philippine broadcasting industry awards. Mr. Lopez served as Director of ABS-CBN from 1986 to 1997 and as Chairman

24 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

DQG&KLHI([HFXWLYH2I¿FHUVLQFH+HJUDGXDWHGZLWKD%DFKHORURI$UWVGHJUHHLQ3ROLWLFDO6FLHQFHIURP%RZGRLQ&ROOHJH and has a Masters degree in Business Administration from Harvard Business School. He has been part of the Lopez group in a GLUHFWRUVKLSFDSDFLW\ZLWKLQWKHODVW¿YH  \HDUV

FEDERICO R. LOPEZ 47 Years Old, Filipino Mr. Federico R. Lopez has been a Director of the company since February 2006. He was promoted to Senior Vice President last December 2007. He was appointed Managing Director for Energy in February 2008. He also sits as member of the Company’s ,QYHVWPHQWDQG)LQDQFH&RPPLWWHH+HLVWKH3UHVLGHQW &KLHI([HFXWLYH2I¿FHURI)LUVW*HQDQGVLWVRQWKHERDUGRI)LUVW*HQ¶V various subsidiaries. He is currently the President of First Phil. Conservation, Inc. He is also a member of the Board of Directors of various subsidiaries such as First Balfour, First Phil. Electric Corp., First Gen Renewables Inc., ABS-CBN and Bauang Private Power Corp. He graduated with a Bachelor of Arts Degree with a Double Major in Economics & International Relations (Cum /DXGH IURPWKH8QLYHUVLW\RI3HQQV\OYDQLDLQ+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDQH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH (5) years.

MANUEL M. LOPEZ 66Years Old, Filipino Mr. Manuel M. Lopez has been a Director of the Company since 1992. He was named President of the Manila Electric Company (Meralco) in April 1986 and assumed the Chairmanship in July 2001. He serves as Chairman of Rockwell Land Corporation and Soluziona Philippines, Inc. He is also a member of the Board of Directors of Benpres Holdings Corporation, First Private Power Corporation, Bauang Private Power Corporation, ABS-CBN Holdings Corporation and of charitable foundations and organizations, in particular Meralco Millennium Foundation Inc. (MMFI) and Meralco Management and Leadership Development Center Foundation Inc. (MMLDCFI). Mr. Lopez was the Chairman of the Board of Directors of Philippine Commercial Capital, Inc. from March 1986 to January 2006 and was a member of the Board of Directors of ABS-CBN Broadcasting Corporation until June 2005. He obtained his Bachelor of Science degree in Business Administration from the University of the East, and pursued advanced VWXGLHVLQ¿QDQFLDODQGPDQDJHPHQWGHYHORSPHQWIURPWKH+DUYDUG%XVLQHVV6FKRRO

VICENTE T. PATERNO Independent Director 83 Years Old, Filipino Mr. Vicente T. Paterno has been a Director of the Company since 2003. He is a member of the Nomination and Election Committee, the Compensation and Remuneration Committee and Chairman’s Compensation and Remuneration Committee. Mr. Paterno is the Chairman of Philippine Seven Corp. since 1982. He served as a Senator from July 1987 to June 1992 and &KDLUPDQRIWKH&RPPLWWHHRQ(FRQRPLF$IIDLUV+HOLNHZLVHVHUYHGDV'HSXW\([HFXWLYH6HFUHWDU\IRU(QHUJ\2I¿FHRIWKH President, from April 1986 to February 1987. He was Chairman and President of the PNOC from March 1986 to February 1987. He also served as Chairman, Board of Investments, June 1970 to June 1979, concurrently Minister of Industry, August 1974 to June 1979; and as Minister of Public Highways in July 1979 until he resigned in November 1980. He graduated with a Bachelor of Science in Mechanical Engineering Degree from the University of the Philippines and pursued his Master of Business Administration (with Distinction) at the Harvard University. He has been part of the Lopez group in a directorship capacity for the ODVW¿YH  \HDUV0U3DWHUQRLVOLNHZLVHDQLQGHSHQGHQWGLUHFWRURI%HQSUHV

25 Key Executive Officers

ERNESTO B. RUFINO, JR. 67 Years Old, Filipino 0U(UQHVWR%5X¿QR-UZDVWKH&KLHI)LQDQFH2I¿FHU7UHDVXUHUDQGD6HQLRU9LFH3UHVLGHQWRIWKH&RPSDQ\XQWLOKLV retirement in 2007. He became a Director of the Company from 1986 to 2001. He was re-elected to the board in January 2003 and has remained a director since then. He sits as member of the Risk Management Committee. He is also the Chairman &KLHI([HFXWLYH2I¿FHURI+HDOWK0DLQWHQDQFH,QFDQGWKH3UHVLGHQWRI676,+HLVDOVRWKH&KDLUPDQ 3UHVLGHQWRI Zyloid Management, Inc. and a Director of First Balfour, First Philec, FPIP, FPUF, Inaec Development Corp., Philec, and Trust International Paper Corp. Before joining the Company, he served as the President of Merchants Investments Corp. and Chairman & CEO of Mever Films, Inc. He has AB and BSBA degrees (Cum Laude) from De La Salle University and an MBA degree from Harvard University.

WASHINGTON Z. SYCIP Independent Director 87 Years Old, American Mr. Washington Z. Sycip has been a Director since 1997. Mr. Sycip also sits as member of the Company’s Audit Committee, Nomination and Election Committee, and the Compensation and Remuneration Committee. Mr. Sycip is the Founder of the SGV group, auditors and management consultants, with operations throughout East Asia, and advisor to Arthur Andersen. He is the Chairman of the Board of Trustees and Board of Governors of the Asian Institute of Management. He was Chairman of the Euro-Asia Centre, INSEAD Fountainbleau from 1981 to 1988 and President of the International Federation of Accountants from 1982 to 1985. He graduated with a Bachelor of Science in Commerce degree (Summa Cum Laude) and a Master of Science in Commerce degree (Meritissimus) from the University of Santo Tomas, Philippines. He pursued his Master of Science in Commerce at Columbia University, New York and was admitted to the Beta Gamma Sigma, Honorary Business Society. He has EHHQSDUWRIWKH/RSH]JURXSLQDGLUHFWRUVKLSFDSDFLW\ZLWKLQWKHODVW¿YH  \HDUV0U6\FLSLVOLNHZLVH&KDLUPDQRI0DFUR$VLD Corporation and an independent director of Benpres, Belle Corporation and Highlands Prime, Inc.

CESAR B. BAUTISTA Independent Director 71 Years Old, Filipino Mr. Cesar B. Bautista is a member of the Risk Management Committee. He was an Ambassador Extraordinary & Plenipotentiary to the United Kingdom of Great Britain and Northern Island, Republic of Ireland and Republic of Iceland. He was a Permanent Representative to the United Nations International Maritime Organization and a Special Presidential Envoy to Europe. $PEDVVDGRU%DXWLVWDVHUYHGDV6HFUHWDU\RIWKH'HSDUWPHQWRI7UDGHDQG,QGXVWU\IRU¿YH\HDUV+HVHUYHGDV&KDLUPDQRIWKH Board of Investments, Export Development Council, Industry and Development Council, WTO/AFTA Advisory Commission, the National Development Corp., the Presidential Committee on National Museum Development and Cabinet Committee on Tariff and 5HODWHG0DWWHUV(FRQRPLF*URZWK$UHDV=RQHV+HZDV3UHVLGHQWDQG&KDLUPDQRI3KLOLSSLQH5H¿QLQJ&RPSDQ\,QF8QLOHYHU for eight years. He graduated with a degree in Bachelor of Science in Chemical Engineering from the University of the Philippines DQGSXUVXHGKLV0DVWHU¶V'HJUHHLQ&KHPLFDO(QJLQHHULQJDWWKH2KLR6WDWH8QLYHUVLW\+LVEXVLQHVVH[SHULHQFHIRUWKHODVW¿YH (5) years includes the positions held above. Mr. Bautista is likewise an independent director of Asian Terminals, Inc. and ABS- &%1+HDVVXPHGRI¿FHDVD'LUHFWRURI)3+&ODVW-XQH

ARTEMIO V. PANGANIBAN Independent Director 72 Years Old, Filipino Hon. Artemio V. Panganiban was the Chief Justice of the Philippines from 2005 to 2006. He was Justice of the Supreme Court from 1995 to 2005. He is a columnist of the Philippine Daily Inquirer, and acts as Adviser, Consultant or Independent Director of several business, civic, non-government and religious groups. He graduated in Associate in Arts with Highest Honors from the Far Eastern University in 1956 and was the Most Outstanding Student in 1960. He was 6th placer in the 1960 Bar Examinations 26 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT with a grade of 89.55 percent. Chief Justice Panganiban is also an independent director of GMA Network, Inc., Meralco, Metro 3DFL¿F,QYHVWPHQWV&RUSRUDWLRQ5RELQVRQV/DQG&RUSRUDWLRQ0DQLOD1RUWK7ROOZD\V&RUSRUDWLRQDQG7ROOZD\V0DQDJHPHQW &RUSRUDWLRQ+HLVDOVR6HQLRU$GYLVHUWR0HWURSROLWDQ%DQNDQG7UXVW&RPSDQ\+HDVVXPHGRI¿FHDVDQLQGHSHQGHQW'LUHFWRU of FPHC last July 5, 2007 and is Chairman of the Risk Management Committee.

Key Executive Officers

FRANCIS GILES B. PUNO 44 Years Old, Filipino )UDQFLV*LOHV%3XQRZDVDSSRLQWHG&KLHI)LQDQFH2I¿FHUDQG7UHDVXUHURI)3+&LQ2FWREHUDQGZDVSURPRWHGWR6HQLRU Vice President in December 2007. He was Vice President since he joined the Company in June 1997. He is currently Executive 9LFH3UHVLGHQW &KLHI)LQDQFH2I¿FHURI)LUVW*HQ+HLVDOVRDGLUHFWRUDQGRI¿FHURI)LUVW*HQLWVVXEVLGLDULHVDQGDI¿OLDWHV and of First Balfour, Inc., FEDCOR, First Phil. Electric Corp., First Phil. Industrial Park, Inc., First Phil. Utilities Corp. and Energy Development Corp. Before joining FPHC, he worked with The Chase Manhattan Bank as Vice President for Global Power. He has a Bachelor of Science degree in Business Management from the Ateneo de Manila University and a Master of Management degree from Northwestern University’s Kellogg Graduate School of Management. He has been part of the Lopez group in an executive FDSDFLW\IRUWKHODVW¿YH  \HDUV

ARTHUR A. DE GUIA 56 Years Old, Filipino Arthur A. De Guia has been the Managing Director for Manufacturing and Portfolio Investments since he joined the Company in June 1997. He is currently the President of First Phil. Electric Corp. He is also a member of the Board of Directors of various FPHC VXEVLGLDULHVDQGDI¿OLDWHV+HZRUNHGDVD0DQXIDFWXULQJ'LUHFWRUIRUWKH0DOD\VLDQ2SHUDWLRQVRI&ROJDWH3DOPROLYH&RPSDQ\ from 1994 to 1997. He graduated Cum Laude with a Bachelor of Science in Electrical Engineering degree from the Mapua Institute of Technology in 1973. He pursued his Master of Engineering in Industrial Management degree at the Asian Institute of Technology (Thailand) from 1974 to 1975 and his Doctor of Engineering in Industrial Engineering degree from the University of California %HUNHOH\ IURPWR+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDQH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

FIORELLO R. ESTUAR 70 Years Old, Filipino Fiorello R. Estuar became the Head of the Infrastructure Business Development of the Company in August 2007. He has been the 9LFH&KDLUPDQDQG&KLHI([HFXWLYH2I¿FHURI)LUVW%DOIRXUVLQFH1RYHPEHU+HZDV3UHVLGHQWRI0D\QLODG:DWHU6HUYLFHV from 2004 up to June 2007. He also served as President of First Philippine Balfour Beatty, Inc. from 2001 to 2004, and as a Board Member of Security Land Corporation from 2004 to 2006. He was Head of Agency of four major government agencies, namely, NIA, PNCC, ESF and DPWH from 1980 to 1991. He earned his PhD degree in Civil Engineering at the age of 27 while serving as a faculty and research staff at Lehigh University USA from 1960 to 1965. He was also a faculty member at the U.P. Graduate School RI(QJLQHHULQJIURPWR+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDQH[HFXWLYHFDSDFLW\ZLWKLQWKHODVW¿YH  \HDUV

27 Key Executive Officers

DANILO C. LACHICA 54 Years Old, American Danilo C. Lachica has been a Senior Vice President of the Company since July 2005. He was a Vice President from May 1999 until June 2005. He was President of FSCI until October 1, 2007. He is a Director & Managing Director for Electronics of First Philec, Philec and FEDCOR. He is currently President of First Philec Solar Corporation. He graduated with a B.S. in Electrical Engineering degree from the University of the Philippines and pursued his M.B.A. at the San Jose State University, San Jose, California, U.S.A. He is currently taking up his D.B.A. degree at De La Salle University. He has been part of the Lopez group in an executive capacity IRUWKHODVW¿YH  \HDUV

RICHARD B. TANTOCO 42 Years Old, Filipino Richard B. Tantoco was promoted to Senior Vice President last December 2007. He has been a Vice President of the Company VLQFH0D\+HLVFXUUHQWO\([HFXWLYH9LFH3UHVLGHQWDQG&KLHI2SHUDWLQJ2I¿FHURI)LUVW*HQ+HLVDOVRDGLUHFWRUDQG RI¿FHURI)LUVW*HQVXEVLGLDULHVDQGDI¿OLDWHVDQGRI(QHUJ\'HYHORSPHQW&RUS3ULRUWRMRLQLQJ)3+&KHZRUNHGDVD%UDQG 0DQDJHUZLWK3URFWHUDQG*DPEOH3KLOLSSLQHVDQGDVDPHPEHURIWKHFRQVXOWLQJ¿UP%RR]$OOHQDQG+DPLOWRQ,QFEDVHGLQ New York. He has a BS in Business Management degree from the Ateneo de Manila University where he graduated with honors and an MBA in Finance from the Wharton School of Business of the University of Pennsylvania. He has been part of the Lopez JURXSLQDQH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

PERLA R. CATAHAN 55 Years Old, Filipino Perla R. Catahan has been a Vice President and Comptroller of the Company since 1994. She is a Director of First Philec, Philec and STSI. She is also the comptroller of various FPHC subsidiaries. She graduated Magna Cum Laude with a Bachelor of Science in Commerce (Major in Accounting) degree from the Philippine College of Commerce in 1974 and pursued her Master in Business Management degree at the Asian Institute of Management in 1983. She has been part of the Lopez group in an H[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

ANTHONY M. MABASA 49 Years Old, Filipino Anthony M. Mabasa has been a Vice President of the Company since 1994. He is currently a Director of Tollways Management Corp. and First Balfour, Inc. He was President of Tollways Management Corporation from 2003 to 2008, President of FPIC from WRDQ([HFXWLYH9LFH3UHVLGHQWRI)LUVW%DOIRXUIURPWRDQG3UHVLGHQW &KLHI2SHUDWLQJ2I¿FHURI(&&2 Asia from August 1994 to October 1999. He earned a degree in Bachelor of Science in Commerce Major in Management of Financial Institutions from the De La Salle University in 1979. He pursued his Master in Business Administration degree at the 8QLYHUVLW\RIWKH3KLOLSSLQHVLQ+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDQH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

LEONIDES U. GARDE 51 Years Old, Filipino Leonides U. Garde has been a Vice President of the Company since 1994. He is currently the President & Chief Operating 2I¿FHURI)LUVW3KLOLSSLQH,QGXVWULDO&RUS+HHDUQHGDGHJUHHLQ%60(IURPWKH8QLYHUVLW\RIWKH3KLOLSSLQHVLQDQG pursued his MBA at the Ateneo Graduate School of Business from 1981 to 1984. He has been part of the Lopez group in an H[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

28 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

RICARDO B. YATCO 54 Years Old, Filipino Ricardo B. Yatco has been a Vice President of the Company since 1996. Prior to this posting, he was a Vice President of FPIC. He earned a degree in BS Industrial Management Engineering from the De La Salle University from 1972 to 1977 and pursued his MBA at the University of San Francisco from 1980 to 1982. He has been part of the Lopez group in an executive capacity for WKHODVW¿YH  \HDUV

HECTOR Y. DIMACALI 58 Years Old, Filipino Hector Y. Dimacali has been a Vice President of the Company since April 1997. He is currently the President of FPIP. He was also a Director and President of FSRI in 1997. He is also a Director of First Philec and First Batangas Hotel Corp. He earned a degree in B.S.E.E. from the University of the Philippines in 1973. He has been part of the Lopez group in an executive capacity IRUWKHODVW¿YH  \HDUV

VICTOR EMMANUEL B. SANTOS, JR. 41 Years Old, Filipino Victor Emmanuel B. Santos, Jr. has been Vice President since March 30, 2001. He is currently Vice President and Compliance 2I¿FHURI)LUVW*HQDQG9LFH3UHVLGHQWRI)*3%HIRUHMRLQLQJ)3+&KHZRUNHGDV'LUHFWRUIRU*OREDO0DUNHWVDW(QURQ Singapore. He earned his MBA in Finance at Fordham University, New York in 1995. He has been part of the Lopez group in an H[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

OSCAR R. LOPEZ, JR. 50 Years Old, Filipino Oscar R. Lopez, Jr. has been Vice President since May 2001. He is currently the Head of the Administration Department of FPHC. He is currently the President of INAEC Development Corp. and First Philippine Development Corp. and is a Director of First Philec. He has been with the Company since October 1996. He went to college at the De La Salle University and attended the EMBA Program of the Asian Institute of Management. He has been part of the Lopez group in an executive capacity for the ODVW¿YH  \HDUV

BENJAMIN R. LOPEZ 36 Years Old, Filipino Benjamin R. Lopez is a Vice President and Head of Corporate Communications. He has occupied this position since November 2006. He has been with FPHC since October 1993. He was assigned to Rockwell in May 1995 where he held various posts in Business Development, Sales and Marketing. Prior to his recall to FPHC in June 2004, he was a Vice President for Project Development of Rockwell. He is also a member of the Board of Directors of various subsidiaries such as First Balfour, Inc., First Philec and First Philippine Utilities Corp. He graduated with a Bachelor of Arts degree in International Affairs in 1992 from the George Washington University. He pursued his Executive Masters in Business Administration degree at the Asian Institute of 0DQDJHPHQWLQ+HKDVEHHQSDUWRIWKH/RSH]JURXSLQDQH[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV

RAMON T. PAGDAGDAGAN 50 Years Old, Filipino Ramon T. Pagdagdagan is a Vice President & Head of Internal Audit since August 2007. He has been with FPHC since October 1994. He was Assistant Vice President of the Internal Audit group from April 2000 until July 2007. He was assigned to Maxidata, Inc. as Assistant Comptroller from July 1993 to September 1994. He graduated with a Bachelor of Science degree in Commerce-Accounting from the Polytechnic University of the Philippines in 1980. He pursued his Executive Masters in Business Administration degree at the Asian Institute of Management from 1999 to 2000. He has been part of the Lopez group in an H[HFXWLYHFDSDFLW\IRUWKHODVW¿YH  \HDUV 29 Compensation of Directors and Executive Officers

ARIEL C. ONG 47 Years Old, Filipino Ariel C. Ong joined First Philec as a consultant in 2007. He was elected as Vice President of FPHC last September 6, 2007 and is seconded to First Philec as a Senior Vice President. He has over twenty years experience in plant general management and end to end supply chain leadership as well as project management and business process engineering. Prior to joining First Philec, KHZDV5HJLRQDO9LFH3UHVLGHQW*HQHUDO0DQDJHUDQG6XSSO\&KDLQ+HDGIRU6RXWKHDVW$VLDRI$YRQ3URGXFWV$VLD3DFL¿F Supply Chain. He is a Mechanical Engineer and obtained his Master of Science in Engineering (Energy) from the University of the Philippines in 1990.

ELIZABETH M. CANLAS 57 Years Old, Filipino Elizabeth M. Canlas has been a Vice President of the company since November 2007. She is currently a core group member of the Lopez Group’s Corporate HR, HR Council, CSR (Corporate Social Responsibility) Council and the Lopez Lifelong Wellness team. She is the chair of the HR professional development committee of the HR Council and the functional head of the Human 5HVRXUFH2I¿FHUV¶&RPPLWWHHRIWKH)LUVW+ROGLQJV¶*URXS+5V6KHLVDOVRWKH0DQDJLQJ(GLWRURI7DQJODZWKHRI¿FLDO publication of the First Holdings Group of Companies. She has been part of the Lopez group in an executive capacity for the last ¿YH  \HDUV

ENRIQUE I. QUIASON 48 Years Old, Filipino Enrique I. Quiason has been the Corporate Secretary of the Company since 1993. He is a Senior Partner of the Quiason Makalintal Barot Torres Ibarra & Sison Law Firm. He is also the Corporate Secretary of Benpres and Assistant Corporate 6HFUHWDU\RI$%6&%1+HLVDOVRWKH&RUSRUDWH6HFUHWDU\DQG$VVLVWDQW&RUSRUDWH6HFUHWDU\RIYDULRXVVXEVLGLDULHVRUDI¿OLDWHV of FPHC and Benpres. He graduated with a B.S. Business Economics degree in 1981 and with a Bachelor of Laws degree in 1985 from the University of the Philippines. He pursued a degree in LL.M. Securities Regulation at Georgetown University in +LVODZ¿UPKDVDFWHGDVOHJDOFRXQVHOWRWKH/RSH]JURXSIRUWKHODVW¿YH  \HDUV

RODOLFO R. WAGA, JR. 49 Years Old, Filipino Rodolfo R. Waga, Jr. has been a Vice President of the Company since May 2001 and is the Assistant Corporate Secretary of the &RPSDQ\+HLVDOVRWKH&RUSRUDWH6HFUHWDU\DQG$VVLVWDQW&RUSRUDWH6HFUHWDU\RIYDULRXV)3+&VXEVLGLDULHVDQGDI¿OLDWHV He graduated Magna Cum Laude with a Bachelor of Arts degree Major in Economics from the Xavier University (Ateneo de Cagayan) in 1979 and a Bachelor of Laws degree from the University of the Philippines in 1983. He completed the academic requirements for his EMBA at the Asian Institute of Management. He has been part of the Lopez group in an executive capacity IRUWKHODVW¿YH  \HDUV

,GHQWLW\RI6LJQL¿FDQW(PSOR\HHV

7KH&RPSDQ\FRQVLGHUVDOOLWVHPSOR\HHVWREHVLJQL¿FDQWSDUWQHUVDQGFRQWULEXWRUVWRWKHEXVLQHVV

Family Relationships

a) Oscar M. Lopez and Manuel M. Lopez are brothers. E  (UQHVWR%5X¿QR-ULVWKHEURWKHULQODZRI2VFDU0/RSH]+LVVLVWHU0UV&RQVXHOR5X¿QR/RSH]LVWKHZLIHRI Oscar M. Lopez. c) Federico R. Lopez, Oscar R. Lopez, Jr. and Benjamin R. Lopez are the sons of Oscar M. Lopez. d) Eugenio L. Lopez III is the nephew of Oscar M. Lopez and Manuel M. Lopez. 30 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

Involvement in Certain Legal Proceedings

:LWKUHVSHFWWRWKHODVW¿YH  \HDUVDQGXSWRWKHGDWHRIWKLVUHSRUW

D  7KH&RPSDQ\LVQRWDZDUHRIDQ\EDQNUXSWF\SURFHHGLQJV¿OHGE\RUDJDLQVWDQ\EXVLQHVVRIZKLFKDGLUHFWRUSHUVRQ QRPLQDWHGWREHFRPHDGLUHFWRURUH[HFXWLYHRI¿FHURUFRQWUROSHUVRQRIWKHUHJLVWUDQWLVDSDUW\RURIZKLFKDQ\RIWKHLU property is subject.

E  7KH&RPSDQ\LVQRWDZDUHRIDQ\FRQYLFWLRQE\¿QDOMXGJPHQWLQDFULPLQDOSURFHHGLQJGRPHVWLFRUIRUHLJQRUEHLQJ subject to a pending criminal proceeding, domestic or foreign, of any of its directors, person nominated to become a GLUHFWRUH[HFXWLYHRI¿FHUVRUFRQWUROSHUVRQ

(c) The Company is not aware of any order, judgment or decree not subsequently reversed, superseded or vacated, by any court of competent jurisdiction, domestic or foreign, permanently or temporarily enjoining, barring, suspending or RWKHUZLVHOLPLWLQJWKHLQYROYHPHQWRIDGLUHFWRUSHUVRQQRPLQDWHGWREHFRPHDGLUHFWRUH[HFXWLYHRI¿FHURUFRQWURO person in any type of business, securities, commodities or banking activities.

G  7KH&RPSDQ\LVQRWDZDUHRIDQ\¿QGLQJVE\DGRPHVWLFRUIRUHLJQFRXUWRIFRPSHWHQWMXULVGLFWLRQ LQDFLYLODFWLRQ  the Commission or comparable foreign body, or a domestic or foreign exchange or electronic marketplace or self UHJXODWRU\RUJDQL]DWLRQWKDWDQ\RILWVGLUHFWRUSHUVRQQRPLQDWHGWREHFRPHDGLUHFWRUH[HFXWLYHRI¿FHURUFRQWURO person has violated a securities or commodities law. Compensation of Directors and Executive Officers

Name and Principal Position Year Salary Bonus Other Compensation Oscar M. Lopez – Chairman of the Board & CEO Elpidio L. Ibañez – Director, President & COO Francis Giles B. Puno – Senior Vice President, Treasurer & CFO Arthur A. De Guia – Managing Director – MPIG TOTAL 1 (Estimated) 2009 80,749,320 26,916,440 (Actual) 2008 80,097,104 73,197,708 0 (Actual) 2007 80,360,252 86,935,491 0 All other directors (Estimated) 2009 0 10,432,500 (Actual) 2008 0 24,750,000 0 (Actual) 2007 0 29,445,000 0 $OORWKHURI¿FHUV (VWLPDWHG 2009 35,644,560 11,881,520 As a Group unnamed (Actual) 2008 36,900,901 28,703,549 0 (Actual) 2007 58,698,741 45,622,018 0 1 Includes projected movements of personnel who would qualify.

31 Security Ownership of Certain Beneficial Owners and Management

Compensation of Directors

a) Standard Arrangements. Directors receive a per diem of P20,000 for every board and committee meeting. Under the Company’s By-Laws, directors may receive up to a maximum of Three Fourths (3/4) of One Percent (1%) of the &RPSDQ\¶VDQQXDOSUR¿WVRUQHWHDUQLQJVDVPD\EHGHWHUPLQHGE\WKH&KDLUPDQRIWKH%RDUGDQGWKH3UHVLGHQW

b) Other Arrangements. The Company does not have any other arrangements pursuant to which any director is compensated directly or indirectly for any service provided as a director.

Employment Contracts and Termination of Employment and Change-in-Control Arrangements

D  $OOHPSOR\HHVRIWKH&RPSDQ\LQFOXGLQJRI¿FHUVVLJQDVWDQGDUGHQJDJHPHQWFRQWUDFWZKLFKVWDWHVWKHLU FRPSHQVDWLRQEHQH¿WVDQGSULYLOHJHV8QGHUWKH&RPSDQ\¶V%\/DZVRI¿FHUVDQGHPSOR\HHVPD\UHFHLYHQRWPRUH WKDQ7ZRDQG7KUHH)RXUWKV ô 3HUFHQWRIWKH&RPSDQ\¶VDQQXDOSUR¿WVRUQHWHDUQLQJVDVPD\EHGHWHUPLQHG E\WKH&KDLUPDQRIWKH%RDUGDQGWKH3UHVLGHQW7KH&RPSDQ\PDLQWDLQVDTXDOL¿HGQRQFRQWULEXWRU\WUXVWHHG pension plan covering substantially all employees.

b) The Company does not have any compensatory plan or arrangement resulting from the resignation, retirement, or any RWKHUWHUPLQDWLRQRIDQH[HFXWLYHRI¿FHU¶VHPSOR\PHQWZLWKWKH&RPSDQ\RULWVVXEVLGLDULHVRUIURPDFKDQJHLQFRQWURO RIWKH&RPSDQ\RUDFKDQJHLQDQH[HFXWLYHRI¿FHU¶VUHVSRQVLELOLWLHVIROORZLQJDFKDQJHLQFRQWUROH[FHSWIRUVXFK rights as may have already vested under the Company’s Retirement Plan or as may be provided for under its standard EHQH¿WV

Options Outstanding

The Company has an existing Executive Stock Option Plan (ESOP) which is based on compensation. The ESOP entitles the GLUHFWRUVDQGVHQLRURI¿FHUVWRSXUFKDVHXSWRRIWKH&RPSDQ\¶VDXWKRUL]HGFDSLWDOVWRFNRQWKHRIIHULQJ\HDUVDWDSUHVHW SXUFKDVHSULFHZLWKSD\PHQWDQGRWKHUWHUPVWREHGH¿QHGDWWKHWLPHRIWKHRIIHULQJ7KHRXWVWDQGLQJRSWLRQVDUHKHOGDVIROORZV

Name No. of Shares Date of Grant Exercise Price Market Price at Date of Grant *Federico R. Lopez Various Various Various *Richard B. Tantoco Various Various Various *Raul I. Macatangay Various Various Various *Rodolfo R. Waga, Jr. Various Various Various *Robert C. Chan Various Various Various Sub-Total 589,868 $OO2WKHU2I¿FHUV 355,544 Total 945,412 * Top Five

32 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT Security Ownership of Certain Beneficial Owners and Management

The equity securities of the company consist of common and preferred shares.

)3+&6HFXULW\2ZQHUVRI&HUWDLQ5HFRUGDQG%HQH¿FLDO2ZQHUVRIPRUHWKDQ As of December 31, 2008 (a) Security Ownership of Certain Record and %HQH¿FLDO2ZQHUVRIPRUHWKDQ Title of Name and Address of Record Owner 1DPHRI%HQH¿FLDO Citizenship No. of Shares Percent to Class and Relationship with Issuer Owner & Held Total Issued Relationship with and Record Owner Outstanding Common Benpres Holdings Corporation Benpres Holdings Filipino 254,121,719 43.05% 5/F Benpres Building Exchange Road cor., Corporation 2 Meralco Avenue, Ortigas Center, Pasig City

Benpres is the parent of the Company. 1 Common PCD Nominee Corporation Various3 Filipino 164,757,082 27.91% G/F Makati Stock Excahnge Non-Filipino 107,843,292 18.27% 6767 Ayala Avenue, Makati City As advised to the Company, the following are the owners of more than 5% under the PCD: The Hongkong & Shanghai Banking Corp. Various Filipino 0 0.00% Custody and Clearing Dept. Non-Filipino 61,734,705 10.46% 30/F Discovery Suites 25 ADB Ave., Ortigas Center, Pasig City Social Security System (“SSS”)4 SSS Filipino 55,222,163 9.35% SSS Bldg., East Ave., Diliman, Q.C. (Same as record owner.)

1 The Chairman of Benpres Holdings Corp. (“BHC”), Mr. Oscar M. Lopez, is the Chairman of the Corporation. 2 The Board of Directors of BHC has the authority to decide how the shares of BHC in the Corporation are to be voted. 3 Per available records, no one entity owns more than 5% of FPHC. 4 The Board of Directors of SSS has the authority to decide how its shares in the Corporation are to be voted, including the grant of a proxy. In connection with the special stockholders’ meeting last January 15, 2009, the SSS sent a proxy in favor of the Corporation’s Chairman.

33 Security Ownership of Management (As of December 31, 2008)

Apart from the foregoing, there are no other persons holding more than 5% of FPHC’s outstanding capital stock:

)3+&6HFXULW\2ZQHUVRI&HUWDLQ5HFRUGDQG%HQH¿FLDO2ZQHUVRIPRUHWKDQ As of December 31, 2008 (a) Security Ownership of Certain Records Title of Name and Address of Record Owner Name of Citizenship No. of Percent to Total Class and Relationship with Issuer %HQH¿FLDO2ZQHU Shares Issued and & Relationship Held Outstanding with Record Owner Preferred PCD Nominee Corporation Various5 Filipino 35,932,800 57.04% G/F Makati Stock Exchange Non-Filipino 51,500 0.08% Ayala Avenue, Makati City Preferred FGHC International Limited6 FGHC Int’l. Cayman 20,000,000 31.75% Ugland House South Church Street George Town, Grand Cayman Cayman Islands Preferred The Insular Life Assurance Co., Ltd. Various Filipino 4,975,700 7.90% Insular Life Corporate Center Commerce Avenue Filinvest Corporate City Alabang, Muntinlupa City As advised to the Company, the following are the owners of 5% or more under the PCD: Preferred Banco de Oro – Trust Banking Group 7 Various Filipino 12,670,000 20.11% 17/F South Tower BDO Corporate Center H.V. dela Costa corner Makati Avenue, Makati City Preferred MBTC – Trust Banking Group Various Filipino 4,901,100 7.78% 5/F MetroBank Plaza Sen. Gil Puyat Avenue, Makati City Preferred Social Security System (“SSS”) SSS Filipino 4,300,000 6.83% SSS Bldg., East Avenue Diliman, Quezon City Preferred BDO Securities Corporation Various Filipino 3,327,300 5.28% 27/F Tower 1 & Exchange Plaza Ayala Avenue, Makati City 5 Per available records, no one entity owns more than 5% of FPHC. 6 The Board of Directors of FGHC International has the authority to decide how its shares in the Corporation are to be voted, including the grant of a proxy. FGHC International has previously issued a proxy in favor of the Corporation’s Chairman in connection with the special stockholders’ meeting last January 15, 2009. 7 Under the law, the Board of Directors of BDO has the authority to decide how its shares in the Corporation are to be voted, including the grant of a proxy. This is, however, subject to any internal arrangements on trust or otherwise that the company may have. BDO has previously issued a proxy in favor of the Chairman, Mr. Oscar M. Lopez in connection with the special stockholders’ meeting last January 15, 2009. 34 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

BHC has disclosed the execution of a Voting Trust Agreement dated 4 December 2008 in favor of Lopez, Inc. as voting trustee RYHUVKDUHVRIFRPPRQVWRFNLQWKHFRPSDQ\7KLVLVIRUDSHULRGRI¿YH  \HDUV7KHYRWLQJWUXVWHHLVHQWLWOHG to exercise all voting right and powers over the shares. Security Ownership of Management (As of December 31, 2008)

Common Shares Title of Class 1DPHRI%HQH¿FLDO2ZQHU Amount & Nature of Citizenship Percent of Class %HQH¿FLDO2ZQHUVKLS Common Oscar M. Lopez 5,227,955 – D/I Filipino 0.88558327% Common Augusto Almeda Lopez 42,001 – D/I Filipino 0.00711471% Common Thelmo Y. Cunanan 1 – D Filipino 0.00000017% Common Peter D. Garrucho, Jr. 499,893 - D/I Filipino 0.08467879% Common Elpidio L. Ibañez 910,377 – D/I Filipino 0.15421224% Common Oscar J. Hilado 1 – D Filipino 0.00000017% Common Manuel M. Lopez 71,758 – D/I Filipino 0.01215536% Common (UQHVWR%5X¿QR-U 1,340,765 – D/I Filipino 0.22711731% Common Vicente T. Paterno 6,381 – D/I Filipino 0.00108090% Common Federico R. Lopez 606,678 – D/I Filipino 0.10276750% Common Washington Z. Sycip 1 – D American 0.00000017% Common Eugenio L. Lopez III 14,335 - D/I Filipino 0.00242826% Common Jose P. De Jesus 52,200 – D/I Filipino 0.00884236% Common Artemio V. Panganiban 1 - D Filipino 0.00000017% Common Cesar B. Bautista 1 - D Filipino 0.00000017% Common Arthur A. De Guia 697,128 – D/I Filipino 0.11808918% Common Elizabeth M. Canlas 10,263 – D/I Filipino 0.00173849% Common Perla R. Catahan 535,024 – D/I Filipino 0.09062976% Common Anthony M. Mabasa 226,662 - D/I Filipino 0.03839514% Common Leonides U. Garde 131,863 – D/I Filipino 0.02233678% Common Ricardo B. Yatco 33,357 – D/I Filipino 0.00565047% Common Hector Y. Dimacali 112,508 – D/I Filipino 0.01905816% Common Richard B. Tantoco 45,509 – D/I Filipino 0.00770894% Common Francis Giles B. Puno 1,495,129 – D/I Filipino 0.25326561% Common Danilo C. Lachica 272,857 – D/I American 0.04622029% Common Victor Emmanuel B. Santos 25,000 – D/I Filipino 0.00423485% Common Oscar R. Lopez, Jr. 17,958 – D/I Filipino 0.00304197% Common Benjamin R. Lopez 276,001 – D/I Filipino 0.04675286% Common Ramon T. Pagdagdagan - Filipino 0.00000000% Common Fiorello R. Estuar 8,048 – D/I Filipino 0.00136328% Common Ariel C. Ong 9,000-D Filipino 0.00152454% Common Enrique I. Quiason - Filipino 0.00000000%

35 Certain Relationships and Related Transactions

Title of Class 1DPHRI%HQH¿FLDO2ZQHU Amount & Nature of Citizenship Percent of Class %HQH¿FLDO2ZQHUVKLS Common Rodolfo R. Waga, Jr. 179,115 – D/I Filipino 0.03034097% Sub-total 12,737,770 – D/I 2.30157451% Common Benpres Holdings Corp. 254,121,719 - D/I Filipino 43.04664900% Common Other Stockholders 322,631,464 Filipino & Non-Filipino 54.65177649% TOTAL 590,340,305 100.00000000%

Preferred Shares Title of Class 1DPHRI%HQH¿FLDO2ZQHU Amount & Nature of Citizenship Percent of Class %HQH¿FLDO2ZQHUVKLS Oscar M. Lopez - Filipino - Augusto Almeda Lopez - Filipino - Thelmo Y. Cunanan - Filipino - Preferred Peter D. Garrucho, Jr. 50,000 Filipino 0.11627907% Elpidio L. Ibañez - Filipino - Oscar J. Hilado - Filipino - Manuel M. Lopez - Filipino - Preferred (UQHVWR%5X¿QR-U 100,000 Filipino 0.23255814% Vicente T. Paterno - Filipino - Federico R. Lopez - Filipino - Washington Z. Sycip - American - Eugenio L. Lopez III - Filipino - Jose P. De Jesus - Filipino - Artemio V. Panganiban - Filipino - Cesar B. Bautista - Filipino - Arthur A. De Guia - Filipino - Preferred Elizabeth M. Canlas 10,000 Filipino 0.02325581% Perla R. Catahan - Filipino - Preferred Anthony M. Mabasa 10,000 Filipino 0.02325581% Preferred Leonides U. Garde 10,000 Filipino 0.02325581% Ricardo B. Yatco - Filipino - Preferred Hector Y. Dimacali 40,000 Filipino 0.09302326% Richard B. Tantoco - Filipino - Francis Giles B. Puno - Filipino - Danilo C. Lachica - American - Victor Emmanuel B. Santos - Filipino - Oscar R. Lopez, Jr. - Filipino - Preferred Benjamin R. Lopez 30,000 Filipino 0.06976744% Ramon T. Pagdagdagan - Filipino - Fiorello R. Estuar - Filipino - Ariel C. Ong - Filipino - Enrique I. Quiason - Filipino - Rodolfo R. Waga, Jr. - Filipino -

36 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

Title of Class 1DPHRI%HQH¿FLDO2ZQHU Amount & Nature of Citizenship Percent of Class %HQH¿FLDO2ZQHUVKLS

Sub-total 250,000 0.58139535% Other Stockholders 42,750,000 Filipino & Non-Filipino 99.41860465% TOTAL 43,000,000 100.00000000%

Changes in Control

7KHUHKDVEHHQQRFKDQJHRIFRQWURORIWKHUHJLVWUDQWVLQFHWKHEHJLQQLQJRILWV¿VFDO\HDU

Certain Relationships and Related Transactions

Enterprises and individuals that directly, or indirectly through one or more intermediaries, control, or are controlled by, or under common control with the Company, including holding companies, and fellow subsidiaries are related entities of the Company. Associates and individuals owning, directly or indirectly, an interest in the voting power of the Company that gives WKHPVLJQL¿FDQWLQÀXHQFHRYHUWKHHQWHUSULVHNH\PDQDJHPHQWSHUVRQQHOLQFOXGLQJGLUHFWRUVDQGRI¿FHUVRIWKH&RPSDQ\ and close members of the family of these individuals and companies associated with these individuals also constitute related entities. Transactions between related parties are accounted for at arm’s-length prices or on terms similar to those offered to non-related entities in an economically comparable market.

In considering each possible related entity relationship, attention is directed to the substance of the relationship, and not merely the legal form.

7KHVLJQL¿FDQWWUDQVDFWLRQVZLWKDVVRFLDWHVDQGRWKHUUHODWHGSDUWLHVDWPDUNHWSULFHVLQWKHQRUPDOFRXUVHRIEXVLQHVVDQG WKHUHODWHGRXWVWDQGLQJEDODQFHVDUHGLVFORVHGEHORZDQGLQ1RWHWRWKHFRQVROLGDWHG¿QDQFLDOVWDWHPHQWV

On December 23, 2002, First Philippine Holdings Corp. and Benpres Holdings Corporation entered into a Memorandum RI$JUHHPHQWDQG'HHGRI$VVLJQPHQWIRUWKHPRGL¿FDWLRQRIWKHRZQHUVKLSVWUXFWXUHRI)LUVW3KLOLSSLQH,QIUDVWUXFWXUH Development Corporation, the Lopez Group’s holding company for Manila North Tollways Corporation shares. Pursuant to the MOA, FPHC acquired from BHC the latter’s interest in FPIDC of about P1.1 billion.

In January 2008, First Philippine Holdings Corporation acquired its partner’s (Union Fenosa International, S.A.) interest in the joint venture company, First Philippine Union Fenosa, Inc.

In December 2007, the Company acquired the shares of Meralco Pension Fund in Manila Electric Company (Meralco), amounting to about 6.6% of the outstanding capital stock of Meralco.

In May 2007, the Company, with Company consolidated all its manufacturing and related businesses (Philippine Electric Corporation, First Electro Dynamics Corporation, First Sumiden Circuits, Inc. and First Sumiden Realty) in First Philippine Electric Corporation (“First Philec”, formerly FPHC Land), a 100%-owned subsidiary of the Company.

37 Corporate Governance

Corporate Governance

*RYHUQDQFH,QLWLDWLYHV FPHC‘s corporate governance commitment was further formalized with its adoption of a Manual on Corporate Governance WKH³0DQXDO´ RQ-DQXDU\2Q$SULO)3+&¿OHGDQDPHQGHG0DQXDOZLWKWKH6HFXULWLHVDQG([FKDQJH Commission, enhancing and clarifying its provisions. It has likewise secured approval for its Amended By-laws last February 5, 2009. The amendments relate to the following: (i) the period for submission of proxies, (ii) a new provision on the general UHVSRQVLELOLW\RIWKH%RDUGRI'LUHFWRUV LLL DGGLWLRQDOTXDOL¿FDWLRQVGLVTXDOL¿FDWLRQVDUHSUHVFULEHGIRUGLUHFWRUVFRYHULQJLWHPV VXFKDVGLVTXDOL¿FDWLRQIRUYLRODWLRQVRIWKH65&&RUSRUDWLRQ&RGHDQGUXOHVDGPLQLVWHUHGE\WKH%63DQG6(&LQVROYHQF\ analogous acts in another jurisdiction, other acts prejudicial, inimical or causing undue injury to the corporation, its subsidiaries RUDI¿OLDWHVDQGJURVVQHJOLJHQFHRUEDGIDLWKFRPPLWWHGDVDGLUHFWRULQDQ\RWKHUFRPSDQ\DQG LY DQHZSURYLVLRQWR provide that, pursuant to good corporate governance, the Board is governed by the Manual, which shall be suppletory to the By-Laws.

)3+&KDVDOVRDGRSWHGD0DQXDORQ$QWL0RQH\/DXQGHULQJ7RIXUWKHUÀHVKRXWLWVFRPPLWPHQWWRJRRGJRYHUQDQFH the Company had instituted a Corporate Code of Conduct last August 2005. The Corporate Code of Conduct reiterates the values and principles instilled by its founder and carried on by the company, namely: nationalism, integrity, entrepreneurship and innovation, teamwork and a strong work ethic. The Code embodies the principles and guidelines for the conduct of the business of the company and in dealing with its shareholders, customers, joint venture partners, suppliers/service providers, WKHJRYHUQPHQWFUHGLWRUVDQGHPSOR\HHV7KH&RGHDOVRDI¿UPVWKH&RPSDQ\¶VFRPPLWPHQWWRSXUVXHFLYLFFKDULWDEOH and social projects and undertakings. The Corporate Code of Conduct, the Business Mission, the Company Credo and its Commitments are made part of the Manual of Corporate Governance.

FPHC continues to maintain that, corporate governance is an indispensable component of “sound strategic business management to improve the economic and commercial prosperity of the corporation and enhance shareholder value.” As in the past, its board is composed of individuals with proven competence, probity and integrity. And they are provided with DPSOHVXSSRUWWRHQDEOHWRWKHPWRIXO¿OOWKHLUGXWLHV

7KH%RDUG FPHC’s Board of Directors are: Mr. Oscar M. Lopez (Chairman), Mr. Augusto Almeda-Lopez (Vice Chairman), Mr. Elpidio L. Ibañez (President), Mr. Thelmo Y. Cunanan, Mr. Peter D. Garrucho, Jr., Mr. Oscar J. Hilado, Mr. Jose P. De Jesus, Mr. Eugenio /RSH],,,0U0DQXHO0/RSH]0U9LFHQWH73DWHUQR0U:DVKLQJWRQ=6\FLS0U)HGHULFR5/RSH]0U(UQHVWR%5X¿QR Jr., Ambassador Cesar B. Bautista and Chief Justice Artemio V. Panganiban.

Standing Committees The Board has constituted standing committees from among its ranks which exercises the duties and functions provided in the Manual for Corporate Governance.

The Nomination and Election Committee passes upon the nomination and election of directors. The members of the nomination and election Committee are as follows: Mr. Oscar M. Lopez as Chair, with Mr. Oscar J. Hilado, Mr. Vicente T. Paterno, Mr. Manuel M. Lopez and Mr. Washington Z. Sycip, as members. This committee performs a crucial function, as it VHOHFWVWKHGLUHFWRUVDQGSDVVHVXSRQWKHLUTXDOL¿FDWLRQVVHHNLQJWRHQWUXVWPDQDJHPHQWWRWKRVHZKRFDQ³EULQJSUXGHQW judgment to bear on the decision making process.”

38 FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

The Compensation and Remuneration committee oversees the appropriate corporate rewards system. It is composed of the following: Mr. Oscar M. Lopez (Chairman), Mr. Washington Z. Sycip and Mr. Vicente T. Paterno. It seeks to promote a culture that supports enterprise and innovation, with suitable performance related rewards that help motivate management and the employees to be effective and productive.

A separate committee composed of Mr. Augusto Almeda-Lopez (Chairman), Mr. Washington Z. Sycip and Mr. Vicente T. Paterno reviews the Chairman’s compensation and remuneration.

7KH$XGLW&RPPLWWHHHYDOXDWHV¿QDQFLDODQGDFFRXQWLQJPDWWHUVDQGLVFRPSRVHGRIWKHIROORZLQJ0U2VFDU-+LODGR (Chairman), Mr. Augusto Almeda-Lopez, Mr. Peter D. Garrucho, Jr. and Mr. Washington Z. Sycip. This committee, among RWKHUWKLQJVKDVWKHGXW\WRHQVXUHWUDQVSDUHQF\DQGLQWHJULW\LQWKH¿QDQFLDOPDQDJHPHQWV\VWHP%RWKH[WHUQDODQGLQWHUQDO auditors are available to assist the Audit Committee.

)3+&KDVDQ,QWHUQDO$XGLW*URXS ³,$*´ FRPSRVHGRI&3$VDQGPRVWRIZKRPDUH&HUWL¿HG,QWHUQDO$XGLWRUV7KH,$* reports to the Board through the Audit Committee. The IAG provides assurance and consulting functions for FPHC and its subsidiaries in the areas of internal control, corporate governance and risk management. Its Internal Audit Activities are all in accordance with the International Standards for Professional Practice of Internal Auditing.

$VDFRPSDQ\IRFXVHGRQ¿QDQFLQJDQGEXVLQHVVSURVSHFWV)3+&KDVD)LQDQFHDQG,QYHVWPHQWFRPPLWWHHFRPSRVHGRI0U Oscar M. Lopez (Chairman), Mr. Thelmo Y. Cunanan, Mr. Peter D. Garrucho, Jr., Mr. Federico R. Lopez, Mr. Eugenio Lopez ,,,DQG0U-RVH3'H-HVXVDVPHPEHUV7KLVFRPPLWWHHUHYLHZVWKHLQYHVWPHQWVDQG¿QDQFLQJHIIRUWVRIWKH&RPSDQ\ investment objectives and strategies, fund raising, major capital expenditures, investment opportunities as well as divestments, among other things.

Last December 13, 2007, the Company constituted a Risk Management Committee headed by Chief Justice Artemio V. 3DQJDQLEDQDV&KDLUPDQZLWK0U(UQHVWR%5X¿QR-UDQG$PEDVVDGRU&HVDU%%DXWLVWDDVPHPEHUV7KLVFRPPLWWHHLV tasked to (a) oversee the formulation and establishment of an enterprise-wide risk management system; (b) review, analyse and recommend the policy, framework, strategy, method and/or system of or used by the company to manage risks, threats or liabilities; (c) review with management the corporate performance in the areas of legal risks and crisis management and (d) review and assess the likelihood and magnitude of the impact of material events on the company and/or to recommend measures, responses or solutions to avoid or reduce risks or exposure.

7UDQVSDUHQF\DQG&RPSOLDQFH For added transparency, the Company presently has one (1) board observer during board meetings. Complete, prompt and WLPHO\GLVFORVXUHVRIPDWHULDOLQIRUPDWLRQKDYHEHHQPDGHE\WKH&RPSDQ\WRWKH([FKDQJHDQGWRWKH6(&IRUWKHEHQH¿WRI the investing public.

7KHODZRQO\UHTXLUHVWZR  LQGHSHQGHQWGLUHFWRUVIRUFRYHUHGFRPSDQLHV)3+&KDV¿YH  VXFKGLUHFWRUVDQGWKH requirement for such directors is likewise enshrined in its by-laws. The independent directors are also members of their respective Board committees.

$WW\(QULTXH,4XLDVRQKDVEHHQGHVLJQDWHGDV&RPSOLDQFH2I¿FHUDQG$WW\5RGROIR5:DJD-UDV$VVW&RPSOLDQFH 2I¿FHUVSHFL¿FDOO\IRUFRUSRUDWHJRYHUQDQFH%RWKDUH)3+&¶V&RUSRUDWH6HFUHWDU\DQG$VVLVWDQW&RUSRUDWH6HFUHWDU\ respectively.

)3+&OLNHZLVHLPSOHPHQWVFRUSRUDWHH[FHOOHQFHLQLWLDWLYHVERWKDWWKHSDUHQWDQGVXEVLGLDU\OHYHOVVXFKDV,62FHUWL¿FDWLRQ Environment, Safety and Health programs, Risk Management, Six Sigma and Knowledge Management, the Oscar M. Lopez 39 Award for Performance Excellence and the Lopez Achievement Award, among others. Last February 9, 2009, the company REWDLQHGLWVFHUWL¿FDWLRQVWKDWLWVLQWHJUDWHGPDQDJHPHQWV\VWHPFRQVLVWLQJRILWVTXDOLW\PDQDJHPHQWV\VWHPHQYLURQPHQWDO management system as well as its health and safety management system, conform to the standards of ISO 9001:2000, ISO 14001:2004 and ISO 18001:2007, respectively.

2WKHU2I¿FHV The Board of Trustees of the FPHC Retirement Fund which administers the retirement fund of the company is composed of Mr. Elpidio L. Ibañez as Chairman and Messrs. Francis Giles B. Puno, Mr. Arthur A. De Guia, Ms. Perla R. Catahan and Ms. Elizabeth M. Canlas as members.

The Employee Stock Purchase Plan Board of Administrators which administers the company’s stock option plan is composed of Mr. Elpidio L Ibañez as Chairman and Mr. Francis Giles B. Puno and Ms. Perla R.Catahan as members.

&RUSRUDWH6RFLDO5HVSRQVLELOLW\ &65 For its concrete contributions as a responsible corporate citizen, FPHC’s CSR activities include providing support to the Lopez group Foundation, Inc., the Paliparan Site 3 Integrated Community Development Program in Dasmariñas, Cavite, First Philippine Conservation, Inc., the Eugenio Lopez Memorial Foundation, Knowledge Channel Foundation, Inc., ABS-CBN Foundation, Opthalmological Foundation of the Phils., Inc. Philippine Business for Social Progress, Philippine Business for the (QYLURQPHQWDQGWKH6HQHQ*DEDOGRQ)RXQGDWLRQ7KHIRUHJRLQJFRYHUVDFWLYLWLHVUHODWLQJWRHGXFDWLRQ¿QDQFLDODQGPHGLFDO assistance to biodiversity conservation, among others.

40 41 REPORT OFTHE AUDIT COMMITTEE

42 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Independent Auditors’ Report

%0- $<7+3074,-:; )6, <0- 7):, 7. 1:-+<7:; 1:;< "01418816- 74,16/; 7:87:)<176

'- 0)>- )=,1<-, <0- )++758)6A16/
.16)6+1)4 ;<)<-5-6<; 7. 1:;< "01418816- 74,16/; 7:87:)<176 " )6, $=*;1,1):1-; ?01+0 +758:1;- <0- +76;741,)<-, *)4)6+- ;0--<; ); )< -+-5*-:   )6,  )6, <0- +76;741,)<-, ;<)<-5-6<; 7. 16+75- +76;741,)<-, ;<)<-5-6<; 7. +0)6/-; 16 -9=1

!     

)6)/-5-6< 1; :-;876;1*4- .7: <0- 8:-8):)<176 )6, .)1: 8:-;-6<)<176 7. <0-;-
.16)6+1)4 ;<)<-5-6<; 16 )++7:,)6+- ?1<0 "01418816- 16)6+1)4 #-87:<16/ $<)6,):,; %01; :-;876;1*141)6< <7
<0- 8:-8):)<176 )6, .)1: 8:-;-6<)<176 7. .16)6+1)4 ;<)<-5-6<; <0)< ):-
.:--
.:75 5)<-:1)4 51;;<)<-5-6< ?0-<0-: ,=-
<7 .:)=, 7: -::7: ;-4-+<16/ )6, )884A16/ )88:78:1)<- )++7=6<16/ 8741+1-; )6, 5)316/ )++7=6<16/ -;<15)<-; <0)< ):- :-);76)*4- 16 <0- +1:+=5;<)6+-;

! 

!=: :-;876;1*141

6 )=,1< 16>74>-; 8-:.7:516/ 8:7+-,=:-;
<7 7*<)16 )=,1< ->1,-6+- )*7=< <0- )57=6<; )6, ,1;+47;=:-; 16
<0- .16)6+1)4 ;<)<-5-6<; %0- 8:7+-,=:-; ;-4-+<-, ,-8-6, 76
<0- )=,1<7:B; 2=,/5-6< 16+4=,16/ <0- );;-;;5-6< 7.
<0- :1;3; 7. 5)<-:1)4 51;;<)<-5-6< 7. <0- .16)6+1)4 ;<)<-5-6<; ?0-<0-: ,=-
<7 .:)=, 7: -::7:
6 5)316/
<07;- :1;3 );;-;;5-6<; <0- )=,1<7: +76;1,-:; 16<-:6)4 +76<:74 :-4->)6< <7 <0- -6<1-6-;; 7. <0- -6<1)4=)<16/ <0- )88:78:1)<-6-;; 7. )++7=6<16/ 8741+1-; =;-, )6, <0- :-);76)*4-6-;; 7. )++7=6<16/ -;<15)<-; 5),- *A 5)6)/-5-6< ); ?-44 ); ->)4=)<16/ <0- 7>-:)44 8:-;-6<)<176 7.
<0- .16)6+1)4 ;<)<-5-6<;

'- *-41->-
<0)< <0- )=,1< ->1,-6+- ?- 0)>- 7*<)16-, 1; ;=..1+1-6< )6, )88:78:1)<-
<7 8:7>1,- ) *);1; .7: 7=: )=,1< 7816176



6 7=: 7816176 <0- +76;741,)<-, .16)6+1)4 ;<)<-5-6<; 8:-;-6<
.)1:4A 16 )44 5)<-:1)4; :-;8-+<; <0- .16)6+1)4 87;1<176 7. 1:;< "01418816- 74,16/; 7:87:)<176 )6, $=*;1,1):1-; ); 7. -+-5*-:   )6,  )6,
<0-1: .16)6+1)4 8-:.7:5)6+- )6, <0-1: +);0 .47?; .7: -)+0 7.
<0- <0:-- A-):; 16 <0- 8-:17, -6,-, -+-5*-:   16 )++7:,)6+- ?1<0 "01418816- 16)6+1)4 #-87:<16/ $<)6,):,;

$("
!##$ &(!  !

-<

8:14  

43 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Consolidated Balance Sheets

2029/2>   E
D7EF3F76
 'AF7 4 /22/549

''('

A>>2:@ ??2@? 3E:3@653E:7CG;H3>7@FE
'AF7E   3@6  $  )  ,:ADF F7D?;@H7EF?7@FE
'AF7E   3@6   Q -D367 3@6 AF:7DD757;H34>7E
@7F
'AF7E    3@6       GDD7@F BADF;A@ A8 >A@9 F7D?
D757;H34>7E
'AF7E   3@6
     "@H7@FAD;7E
'AF7    H3;>34>7 8AD E3>7
8;@3@5;3> 3EE7FE
'AF7E   3@6     7D;H3F;H73EE7F
'AF7E  3@6    Q (F:7D 5GDD7@F 3EE7FE
'AF7E     3@6         'A@5GDD7@F 3EE7FE :7>6
8ADE3>7
'AF7     -AF3>
GDD7@F EE7FE    

";:0A>>2:@ ??2@? %A@9 F7D? D757;H34>7E
@7F A8 5GDD7@F BADF;A@
'AF7E    3@6      "@H7EF?7@FE 3F 7CG;FK 3@6 67BAE;FE
'AF7E  3@6      )DAB7DFK B>3@F 3@6 7CG;B?7@F

@7F
'AF7E   3@6      "@H7EF?7@F BDAB7DF;7E

@7F
'AF7     AA6I;>>
'AF7  3@6     "@F3@9;4>7 3EE7FE
'AF7E  3@6     )7@E;A@ 3EE7F
'AF7    787DD76 F3J 3EE7FE
'AF7      (F:7D @A@5GDD7@F 3EE7FE

@7F 'AF7E    3@6      -AF3>
'A@5GDD7@F
EE7FE      $   ) 

 (' "
%)(-

A>>2:@ 6./686@62? %A3@E B3K34>7
'AF7E   3@6  $ )  -D367 B3K34>7E 3@6 AF:7D 5GDD7@F >;34;>;F;7E
'AF7E    3@6      "@5A?7 F3J B3K34>7
'AF7    GDD7@F BADF;A@ A8 (4>;93F;A@E
FA 3E
,7>>7DE
'AF7E   3@6     787DD76 B3K?7@F
835;>;FK I;F:
)AI7D
,75FAD
EE7FE 3@6 %;34;>;F;7E &3@397?7@F
ADBAD3F;A@
),%&
'AF7E  3@6    %A@9 F7D? 674F 'AF7E   3@6      +AK3>FK
877 B3K34>7
'AF7E  3@6    (4>;93F;A@ FABAI7D 5A@FD35FADE
'AF7E   3@6   7D;H3F;H7 >;34;>;F;7E
'AF7  H -AF3>
GDD7@F %;34;>;F;7E    

 ADI3D6

44 2029/2>   E
D7EF3F76
 'AF7 4 /22/549

";:0A>>2:@ 6./686@62? A@6E B3K34>7
'AF7E   3@6  $   )  %A@9 F7D? 674F @7F A8 5GDD7@F BADF;A@
'AF7E   3@6      7D;H3F;H7 >;34;>;F;7E @7F A8 5GDD7@F BADF;A@
'AF7    787DD76 B3K?7@F
835;>;FK I;F:
),%&

@7F A8 5GDD7@F BADF;A@
'AF7E  3@6     787DD76 F3J >;34;>;F;7E
'AF7     +7F;D7?7@F 47@78;F >;34;>;FK
'AF7     (F:7D @A@5GDD7@F >;34;>;F;7E
'AF7E   3@6      (4>;93F;A@E
FA 3E
,7>>7DE

@7F A8 5GDD7@F BADF;A@
'AF7E   3@6  H  +AK3>FK
877 B3K34>7 @7F A8 5GDD7@F BADF;A@
'AF7E  3@6  H    (4>;93F;A@ FABAI7D B>3@F 5A@FD35FADE

@7F A8 5GDD7@F BADF;A@ 'AF7E   3@6  H  -AF3>
'A@5GDD7@F %;34;>;F;7E    

=A6@E @@>6/A@./82
@;
=A6@E
;812>? ;3 @52
$.>2:@ A??A@ EFA5=
'AF7E  3@6      )D787DD76 EFA5=   66;F;A@3> B3;6 ;@ 53B;F3>
'AF7     ,G4E5D;BF;A@E
D757;H34>7
'AF7    )3D7@F 5A?B3@K BD787DD76 E:3D7E :7>6 4K 35A@EA>;63F76 EG4E;6;3DK      .@D73>;L76
83;DH3>G7 93;@E A@ 3H3;>34>7 8AD E3>7 ;@H7EF?7@FE 'AF7     ,:3D7;@G@D73>;L76
83;DH3>G7 93;@E A@ 3H3;>34>7 8AD E3>7 ;@H7EF?7@FE A8 3@ 3EEA5;3F7
'AF7    G?G>3F;H7
FD3@E>3F;A@ 363F;H7 FD3@E>3F;A@ 36G7 A8 ?;@AD;FK ;@F7D7EF   Q +7F3;@76 73D@;@9E
'AF7    -AF3>
CG;FK
FFD;4GF34>7
FACG;FK
!A>67DE A8
F:7
)3D7@F   

!6:;>6@E
:@2>2?@?      -AF3>
CG;FK    

$   ) 

#++ '))536'4?/4- 5:+9
:5 54952/*':+* /4'4)/'2 #:':+3+4:9

45 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Consolidated Statements of Income

-2.>?
:121
2029/2>     E
D7EF3F76
E
D7EF3F76
 'AF7 'AF7 4 /22/549
>)+6: !+8
#.'8+ ':' &*") ,3>7 A8 7>75FD;5;FK $ )  )  ,3>7 A8 EF73?    Q ,3>7 A8 ?7D5:3@6;E7      A@FD35FE 3@6 E7DH;57E       ,:3D7;@BDA<75F
D7H7@G7 A8 >;@9 E7DH;57E    H ,3>7 A8
D73> 7EF3F7         #'(
"
,$"''
'AF7E    3@6  (B7D3F;A@E 3@6 ?3;@F7@3@57      7@7D3> 3@6 36?;@;EFD3F;H77JB7@E7E      &7D5:3@6;E7 EA>6      ,:3D7;@BDA<75F 5AEFE A8 7EF3F7 EA>6               "" #'('
'AF7E    3@6          #&"
," " #''       ""
"#! 'AF7        "#"'  #
"*'(!"(
"
'&'#
'(# 'AF7  H   #(&
"#!

'7F
'AF7      "#!
#&
"#! (,       $&#*'#" #&
"( &#!
"#! (, 'AF7E  3@6  GDD7@F     787DD76           "(
"#! &#!
#"(")" #$&(#"' 'AF7      "@5A?7
8DA? 6;E5A@F;@G76 AB7D3F;A@E      3;@ A@ E3>7 A8 3 EG4E;6;3DK  QQ "(
"#! &#!
'#"(") #$&(#"'
'AF7       "(
"#!
'AF7 $ )  )  @@>6/A@./82 (; CG;FK :A>67DE A8 F:7 )3D7@F $   )  )   &;@AD;FK ;@F7D7EFE        $ )  )  .>:6:4?
$2> '5.>2
3;>
"2@ :0;92 @@>6/A@./82
@;
@52 =A6@E ;812>? ;3
@52
$.>2:@
'AF7  3E;5 $  )  )  ;>GF76       .>:6:4?
 ;?? $2>
'5.>2
3>;9
;:@6:A6:4 #<2>.@6;:? 'AF7  3E;5 $   )  )  ;>GF76       .>:6:4?
$2> '5.>2
3>;9
6?0;:@6:A21 #<2>.@6;:? 'AF7  3E;5 $  )  )  ;>GF76       

#++ '))536'4?/4- 5:+9
:5 54952/*':+* /4'4)/'2 #:':+3+4:9

46 -2 * /3'26            ',-0'26 ,2#0#121      -2 *               27(  #2 ',#"  0,',%1       *3# -$ ',-0'26  006',% -12 -4#0 5!#11 -$ !/3'1'2'-, 8 8           -$ , /3'26 & 0# ', 11-!' 2# #1#04# ,2#0#12 3+3* 2'4# 0 ,1* 2'-, "(312+#,2        3+3* 2'4# 0 ,1* 2'-, "(312+#,21     -$ , $-0 *# & 0# ',  ',1 -, 11-!' 2# 4 '* *#  '0  *3# ,0# *'7#" ,4#12+#,21 (In Millions)     $-0 *#  ',1 -, 4 '* *#  '0  *3# ,0# *'7#" ,4#12+#,21         27(  27(  27(   27(    .'2 *
',  0  *3# 5!#11 -$ 220' 32 *# 2- /3'26
-*"#01 -$ 2&#  0#,2  0#,2     & 0#1 0#$#00#" #*" 6
-+. ,6 -,1-*'" 2#" 8     0#$#00#" #!#'4 *#
 3 1!0'.2'-, 2-!) 2-!) 3 1'"' 06    8 8 8 8                  2-!) 0#$#00#" 27(  -++-, #!#'4 *#
 3 1!0'.2'-,1     88 888 888888 8 888 88 888 8888 8888   88 8888 88888888     8 8 8 8 8 8 8 8 8 8 8    8        88 888 8888888888   88 888 8888888888     8 8    8  8 8 8 8 8             8 8 8 8 8 8 8           8         8 888 8 888 88888888    8  8 8 8   8 8 8 8 8 8 8 8   8 8 8 8 8 8   8 8   8      8 8 8 8 8 8 8 8 8    8 8 8 8        88 888 888888 88    88 8 88 8 88888 888888888 888 888888888 8 8 8 8 8 8 8 8 8       8      8   8 8 8 8   8                        8    -++-, 2-!) 27(6  $1'          113#" 3 1!0' #"   $ 6+$5( 1,=(' ,1&20( $1' (;3(16( * )25 $&48,6,7,21 2) 0,125,7< ,17(5(6727(  7+528*+ %86,1(66 &20%,1$7,21 27(  68%6,',$5< ,17(5(67 ,1 68%6,',$5< )25 7+( <($5 $6 35(9,286/< 67$7(' $'-8670(176 25325$7,21 72  ,19(670(176 <($5 5(&2*1,=(' ',5(&7/< ,1 (48,7< ))(&7 2) &+$1*( ,1 $&&2817,1* 32/,&< ))(&7 2) 385&+$6( 35,&( $//2&$7,21 6 5(67$7(' +$5(%$6(' 3$<0(176 $6+ ',9,'(1'6   &48,6,7,21 2) 0,125,7< ,17(5(67 ,125,7< ,17(5(67 2) ',6326(' ,125,7< ,17(5(67 $5,6,1*
)520 6$/( 2) !27$/ 5(&2 $/$1&( $7 $18$5<   (7 /266(6 21 &$6+
)/2: +('*( 25(,*1 &855(1&< 75$16/$7,21 (7 ,1&20( )25 7+( <($5 668$1&(6 '85,1* 7+( <($5 ('(037,21 2) 6+$5(6 $/$1&( $7
(&(0%(5   03$&7 2) 6$/( 2) ,567 (1 <'52 8%6&5,37,216 $1' 5(/$7(' 35(0,80 $,5 9$/8( *$,16 21 $9$,/$%/()256$/( !27$/ ,1&20( $1' (;3(16( )25 7+( FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES AND FIRST PHILIPPINE HOLDINGS CORPORATION Equity in Statements of Changes Consolidated 2006) 31, 2008, 20007 and December the years(for ended 47    !27$/ 48,7<            ,125,7<                17(5(676       >                                    $51,1*6 (7$,1('        >  >                 2) $1 48,7< +$5( ,1 !5$16/$7,21 808/$7,9( '-8670(17             !5$16/$7,21 808/$7,9( '-8670(176         2) $1 7(   27(   662&,$7( (6(59( 27(  !27$/ )25 $/( )25 +$5( ,1 $,16 21 662&,$7( 9$,/$%/( $,5 #$/8( "15($/,=(' 19(670(176 (In Millions)            )25 $/( )25 $,16 21 9$,/$%/( $,5 #$/8( "15($/,=(' 19(670(176                $3,7$/ ,1 ;&(66 2) $5 #$/8( >  >  >  775,%87$%/( 72 48,7< 2/'(56 2) 7+( $5(17 $5(17    +$5(6 5()(55(' (/' %<
$ 203$1< 2162/,'$7(' >  >  >     5()(55(' 8%6&5,37,21 (&(,9$%/(
 >  >  >                 72&. 5()(55(' 20021 (&(,9$%/(
 8%6&5,37,216         >>>>>>>>>>>    >>> >>>>>>>>>>>  >  >  >>>>>>>>> >>>    >>>>>>>>>>>>>>     >    >>>>>         >>>>>>>>>  >  20021 72&. 668(' 8%6&5,%(' 27(  72&. 72&. 8%6,',$5< 27(  27(  2               27(6  $1'  6$(>>>>>>>>>>>>        $6+$5( 6$(>>>>>>>>>>>>  >   $6+$5( $&48,6,7,21 2) 0,125,7< ,17(5(67 27(  (21=',(7<14,<>>>>>>>   >>    >>>>>>> >>>>  ,19(670(176 5(&2*1,=('',5(&7/<,1(48,7< $&48,6,7,21 2) 0,125,7< ,17(5(67 27(  27((5>>>>>>>   >        $6 35(9,286/< 67$7(',1 (48,7<  >>>>>>>>         )257+(<($5 $&48,6,7,212)0,125,7<,17(5(6727( >>>>>>>>>>>>    > )257+(<($5 (21=',(7<14,<>>>>>>>>     >   >>>>>>>> >>>> > ,19(670(176 5(&2*1,=('',5(&7/<,1(48,7< $/$1&( $7 $18$5<   $6 5(67$7('    > > >        ))(&7 2) &+$1*( ,1 $&&2817,1* 32/,&<
)25 +5$(3<(7 >>>>>> >>>>>> > $,5 9$/8( *$,16 21 $9$,/$%/()256$/( !27$/ ,1&20( $1' (;3(16( )25 7+( <($5 +$5(%$6('3$<0(176 $6+ ',9,'(1'6   ))(&7 2) &+$1*( ,1 $&&2817,1* 32/,&<
)25 681('517((5>>>>>>>>>>>>   >>>>>>>>>>>> >>>>>>>>>>>>           >>>>>>>>>>>>>> >>>>>> >>>>>> >  $/$1&( $7 $18$5<   (7 /266(6 21 &$6+
)/2: +('*( '()(55(' 25(,*1&855(1&<75$16/$7,21$'-8670(176>>>>>>>>>  >>   (7,1&20()257+(<($5 8%6&5,37,216$1'5(/$7('35(0,80>>    >>>>>> 0,125,7< ,17(5(67 $6 5(67$7(' !27$/ 5(&2*1,=(' ,1&20( $1' (;3(16( 668$1&(6'85,1*7+(<($5 $/$1&( $7
(&(0%(5  $/$1&( $7 $18$5<   (7*$,1621&$6+)/2:+('*( 25(,*1&855(1&<75$16/$7,21$'-8670(176>>>>>>>>>  >>  (7,1&20($635(9,286/<5(3257('>>>>>>>>>>>>      ))(&7 2) &+$1*( ,1 $&&2817,1* 32/,&<
)25 8%6&5,37,216$1'5(/$7('35(0,80>>>>> >>>>>> >  +$5(%$6('3$<0(176 !27$/ 5(&2*1,=(' ,1&20( $1' (;3(16( 668$1&(6'85,1*7+(<($5 $6+ ',9,'(1'6   $/$1&( $7
(&(0%(5   #++ '))536'4?/4- 5:+9 :5
54952/*':+* /4'4)/'2 #:':+3+4:9  6(77'>>>>>>>>>>>>       65(67$7(' $,5 9$/8( *$,16 21 $9$,/$%/()256$/( !27$/ ,1&20( $1' (;3(16( )25 7+( <($5 48 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Consolidated Statements of Cash Flows

-2.>?
:121
2029/2>     E
D7EF3F76
E
D7EF3F76
 'AF7 'AF7 4 /22/549

' #+' &#! #$&("(*(' "@5A?7 478AD7
F3J
8DA? 5A@F;@G;@9 AB7D3F;A@E $  )  )  "@5A?7 478AD7
F3J
8DA? 6;E5A@F;@G76 AB7D3F;A@E       "@5A?7 478AD7
F3J     67 A8 3 EG4E;6;3DK    QQ CG;FK ;@ @7F 73D@;@9E A8 3EEA5;3F7E
'AF7          ;@3@57 ;@5A?7        &3D= FA ?3D=7F 93;@ A@ 67D;H3F;H7E    QQ '7FG@D73>;L76
8AD7;9@ 7J5:3@97 >AEE
93;@      3;@ A@ E3>7 A8 ;@H7EF?7@F ;@ E:3D7E A8 EFA5=
'AF7  H   )DAH;E;A@E 8AD
D7H7DE3> A8 +7F;D7?7@F 5AEF
'AF7     "?B3;D?7@F >AEE 3@6 6AG4F8G> 355AG@FE     Q 75>;@7 ;@ ;@H7@FADK H3>G7E  QQ .@D73>;L76
83;DH3>G7 93;@ A@ 83;DH3>G7 F:DAG9: BDA8;F AD >AEE ;@H7EF?7@FE     3;@ A@ E3>7 A8 BDAB7DFK 3@6 7CG;B?7@F 3@6 ;@H7EF?7@F BDAB7DF;7E H Q   ,:3D7 43E76 B3K?7@FE
'AF7   H   (B7D3F;@9 ;@5A?7 478AD7 IAD=;@9 53B;F3> 5:3@97E      75D73E7 ;@5D73E7 ;@ -D367 3@6 AF:7DD757;H34>7E     "@H7@FAD;7E      (F:7D 5GDD7@F 3EE7FE    %A@9 F7D? D757;H34>7E   QQ ,:3D7;@5GDD7@F 3EE7FE A8 7E 3@6 AF:7D 5GDD7@F >;34;>;F;7E       ,:3D7;@5GDD7@F >;34;>;F;7E A8 3@F 3@6 7CG;B?7@F
'AF7     "@H7EF?7@F BDAB7DF;7E
'AF7   Q  75D73E7 ;@5D73E7 ;@ ,:ADF F7D?;@H7EF?7@FE    QQ H3;>34>7 8AD E3>7 ;@H7EF?7@F     Q AA6I;>>   QQ "@F3@9;4>7 3EE7FE       (F:7D @A@5GDD7@F 3EE7FE       "@H7EF?7@FE 3@6 67BAE;FE     'A@5GDD7@F 3EE7F :7>6 8ADE3>7   QQ

 ADI3D6

49 -2.>?
:121
2029/2>     E
D7EF3F76
E
D7EF3F76
 'AF7 'AF7 4 /22/549

,:3D7;@@A@5GDD7@F 3EE7FE A8 7 A8 3 EG4E;6;3DK  QQ ,3>7 A8 ;@H7EF?7@F ;@ E:3D7E A8 EFA5= H   ,3>7 A8 BDAB7DFK 3@6 7CG;B?7@F 3@6 ;@H7EF?7@F BDAB7DF;7E    '7F 3EE7FE
8DA? 4GE;@7EE 35CG;E;F;A@E
'AF7 H     '7F 53E:BDAH;676 4K
GE76 ;@ ;@H7EF;@9 35F;H;F;7E       ' #+' &#!"""(*(' )3K?7@FE A8 4ADDAI;@9E
8DA? 43@=E 3@6 AF:7D 8;@3@5;3> ;@EF;FGF;A@E        )DA5776E
8DA? ADDAI;@9E
8DA? 43@=E 3@6 AF:7D
8;@3@5;3> ;@EF;FGF;A@E        66;F;A@3> EG4E5D;BF;A@EFA3@6;EEG3@57E A8 E:3D7E A8 53B;F3> EFA5=    )3K?7@FE A8 ;H;67@6E B3K34>7 FA ?;@AD;FK ;@F7D7EF   QQ 3E:6;H;67@6E      787DD76 B3K?7@F
835;>;FK I;F:
),%&
'AF75    Q (4>;93F;A@E
FA93EE7>>7DE
'AF7         (4>;93F;A@ FABAI7D 5A@FD35FADE    QQ "@5D73E7 675D73E7 ;@ AF:7D @A@5GDD7@F >;34;>;F;7E      '7F 53E:BDAH;676
GE76 ;@
8;@3@5;@9 35F;H;F;7E        (#
," &(
"' #" '"'
%)* "('     "(
"&'
&'
"
' "'
%)* "('       '"'
%)* "(' (
""" #
-&     

'"'
%)* "(' (
"
#
-& 'AF7 $  )  ) 

#++ '))536'4?/4- 5:+9
:5 54952/*':+* /4'4)/'2 #:':+3+4:9

50 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

 ;><;>.@2 :3;>9.@6;:

;DEF ):;>;BB;@7
!A>6;@9E ADBAD3F;A@ F:7 )3D7@F
A?B3@K
AD )! I3E ;@5ADBAD3F76 3@6 D79;EF7D76 I;F: F:7 ):;>;BB;@7 ,75GD;F;7E
3@6 J5:3@97
A??;EE;A@ , A@ #G@7



.@67D ;FE
3?7@676 3DF;5>7E
A8 ;@5ADBAD3F;A@ ;FE
BD;@5;B3>
35F;H;F;7E 5A@E;EF A8 ;@H7EF?7@FE ;@ D73> 3@6 B7DEA@3>
BDAB7DF;7E ;@5>G6;@9 4GF @AF >;?;F76 FA E:3D7E
A8 EFA5=E
@AF7E E75GD;F;7E 3@6 7@F;F;7E ;@
F:7 BAI7D
97@7D3F;A@ D73> 7EF3F767H7>AB?7@F DA36E
3@6
FA>>I3KE
AB7D3F;A@E ?3@G835FGD;@9 3@6 5A@EFDG5F;A@ 8;@3@5;@9
3@6
AF:7D E7DH;57 ;@6GEFD;7E )!
3@6 ;FE EG4E;6;3D;7E
3D75A>>75F;H7>KD787DD76
FA3E
F:7 O ;DEF
!A>6;@9E DAGBP
AD F:7 OA?B3@KP J57BF 8AD 3 !
"@F7D@3F;A@3> %;?;F76  ! "@F7D@3F;A@3> 4 )! G@6 ADBAD3F;A@  )! G@6 3@6 5 )! /7@FGD7E
ADBAD3F;A@  )! /7@FGD7E 3>>
AF:7DEG4E;6;3D;7E
3D7 ;@5ADBAD3F76 ;@ F:7 ):;>;BB;@7E

!
"@F7D@3F;A@3> )! G@6 3@6 )! /7@FGD7E
3D7 D79;EF7D76 ;@
F:7
3K?3@
"E>3@6E

)! ;E
  AI@76 4K 7@BD7E
!A>6;@9E ADBAD3F;A@ 7@BD7E 3>EA
3BG4>;5>K >;EF76 ):;>;BB;@7 43E76 7@F;FK ?3K -:7D7?3;@;@9 E:3D7E
3D7
:7>6 4KH3D;AGE G@D7>3F76 E:3D7:A>67D
9DAGBE
3@6 ;@6;H;6G3>E

-:7 5A??A@ E:3D7E
A8 )! I7D7>;EF76 479;@@;@9 &3K   3@6
:3H7 E;@57 477@
FD3676 ;@ F:7 ):;>;BB;@7 ,FA5= J5:3@97 ),

-:7 D79;EF7D76
A88;57
366D7EE
A8 )! ;E
F: >AAD 7@BD7E G;>6;@9 J5:3@97 +A36 5AD@7D &7D3>5A H7@G7 )3E;9
;FK

-:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3E
A8
757?47D
  
3@6   3@6 8AD
735:
A8
F:7
F:D77 K73DE ;@ F:7 B7D;A6 7@676
757?47D

  I7D73BBDAH76
3@6
3GF:AD;L76 8AD ;EEG3@57 4KF:7 A3D6
A8 ;D75FADE
A@ BD;>    3ED7H;7I76 3@6 D75A??7@676 8AD
3BBDAH3> 4K
F:7 G6;F
A??;FF77
A@ F:7 &3D5:

 

 'A99.>E ;3 '64:6360.:@ 00;A:@6:4 $;86062?

3E;E
A8 )D7B3D3F;A@ -:7
355A?B3@K;@9 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
:3H7 477@ BD7B3D76 A@ 3
:;EFAD;53> 5AEF 5A@H7@F;A@ 7J57BF 8ADD7H3>G3F;A@
A8
67D;H3F;H7 8;@3@5;3> ;@EFDG?7@FE 8;@3@5;3>
3EE7FE
3F 83;DH3>G7
F:DAG9:
BDA8;F
AD >AEE  /)% 3@6 3H3;>34>7 8AD E3>7  , 8;@3@5;3>
3EE7FE I:;5: :3H7 477@ ?73EGD76 3F 83;DH3>G7

-:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3D7
BD7E7@F76 ;@ ):;>;BB;@7 B7EA )!NE 8G@5F;A@3>
3@6 BD7E7@F3F;A@ 5GDD7@5K >>H3>G7E
3D7 DAG@676
FA
F:7
@73D7EF ?;>>;A@ B7EA
7J57BFI:7@ AF:7DI;E7 ;@6;53F76

3E;E
A8
A@EA>;63F;A@ -:7
355A?B3@K;@9 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE ;@5>G67
F:7 8;@3@5;3> EF3F7?7@FE
A8 )! ;FE EG4E;6;3D;7E 7@F;F;7EI:;5: ;F 5A@FDA>E
3@6 E:3D7;@F:7 D7EG>FE
A8
AB7D3F;A@E
3@6 @7F
3EE7FE
A8 ;E @AD?3>>K 7H;67@576 I:7@
F:7 )3D7@F A?B3@K AI@E 7;F:7D 6;D75F>K AD ;@6;D75F>K ?AD7
F:3@  
A8
F:7 HAF;@9 D;9:FE
A8 3@ 7@F;FKNE 53B;F3> EFA5=

51 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

A>>AI;@9 ;E
3>;EF
A8
F:7 EG4E;6;3D;7E
AD 5A?B3@;7E I:;5: )! 5A@FDA>E 3E
A8
757?47D

 
  3@6  

)7D57@F397 A8 (I@7DE:;B      ,G4E;6;3D;7E )D;@5;B3> 5F;H;FK 6>20@ :16>20@ ;D75F "@6;D75F ;D75F "@6;D75F $;C2> 2:2>.@6;: .:1 $;C2>>28.@21 ;9<.:62? ;DEF 7@ ADBAD3F;A@  ;DEF 7@ "@H7EF?7@F :A>6;@9E            ;DEF 7@ +7@7I34>7E "@5 3 ,A>3D 7@7D9K H  Q   Q   G=;6@A@ )AI7D ADB  G=;6@A@3 "@67B7@67@F BAI7D BDA6G57D H  Q   Q   .@;8;76 !A>6;@9E ADBAD3F;A@3 "@H7EF?7@F :A>6;@9E H  Q   Q   ) ADB  )3 "@67B7@67@F BAI7D BDA6G57D H   Q   Q   >>;76 7@ )AI7D ADBAD3F;A@3
7 "@H7EF?7@F :A>6;@9E H  Q   Q   ;DEF '3F 3E )AI7D ADBAD3F;A@3
7 )AI7D 97@7D3F;A@ H   Q   Q   ;DEF 7@ %GLA@ )AI7D ADB3 )AI7D 97@7D3F;A@ H  Q   Q   ;DEF 3E !A>6;@9E ADBAD3F;A@3 "@H7EF?7@F :A>6;@9E H   Q   Q   ;DEF 3E )AI7D ADBAD3F;A@  )3 "@67B7@67@F BAI7D BDA6G57D H   Q   Q   ;DEF '3F 3E ,GBB>K ADBAD3F;A@3
7 )AI7D
EGBB>K 3@6 FD36;@9 H   Q   Q   ;DEF 3E );B7>;@7 ADBAD3F;A@3 3EE7>>7D H   Q   Q   %3@6 ADBAD3F;A@3 %3@6 :A>6;@9 H   Q   Q   ;DEF 7@ !K6DA)AI7D ADBAD3F;A@  !K6DA3 "@67B7@67@F BAI7D BDA6G57D H   Q   Q   ;DEF 7@ /;E3K3E !K6DA)AI7D ADBAD3F;A@3
7 )AI7D 97@7D3F;A@ H  Q   Q   ;DEF 7@ &;@63@3A !K6DA)AI7D ADBAD3F;A@3
7 )AI7D 97@7D3F;A@ H  Q   Q   ;DEF 7@ 7AF:7D?3> )AI7D ADBAD3F;A@3
7 7AF:7D?3> BAI7D 97@7D3F;A@ H  Q   Q   ;DEF 7@ 'ADF:7D@@7D9K ADBAD3F;A@3
7 7AF:7D?3> BAI7D 97@7D3F;A@ H  Q   Q   ;DEF 7@ @7D9K ,A>GF;A@E "@5 3
7 )AI7D
EGBB>K 3@6 FD36;@9 H  Q   Q   ;DEF 7@ )D7?;7D @7D9K ADB 8AD?7D>K ;DEF 7@
&;@63@3A )AI7D ADB 3
7 )AI7D 97@7D3F;A@ H  Q   QQ ;DEF 7@ )D;?7 @7D9K ADBAD3F;A@3
7 )AI7D 97@7D3F;A@ H  Q   QQ ;DEF 7@ /;E3K3E @7D9K ADBAD3F;A@3
7 )AI7D 97@7D3F;A@ H  Q   QQ )D;?7 -7DD35AF3 !A>6;@9E ADBAD3F;A@ )D;?7 -7DD35AF33 "@H7EF?7@F :A>6;@9E H  Q   QQ +76 /G>53@ !A>6;@9E ADBAD3F;A@ +76 /G>53@3 "@H7EF?7@F :A>6;@9E H  Q   QQ @7D9K 7H7>AB?7@F  ADBAD3F;A@ 8AD?7D>KF:7 ):;>;BB;@7 '3F;A@3> (;> A?B3@K )'( @7D9K 7H7>AB?7@F ADBAD3F;A@ 3
8 7AF:7D?3> EF73? 3@6 BAI7D BDA6G57D H   Q   QQ 3F3@93E A97@7D3F;A@ ADBAD3F;A@ 3F3@93E A97@ )AI7D 6;EFD;4GF;A@  H  Q  Q ;DEF ):;>;BB;@7 "@6GEFD;3> ADBAD3F;A@  )" )7FDA>7G? B;B7>;@7 AB7D3F;A@E  H  Q  Q ;DEF ):;>;BB;@7 .F;>;F;7E ADBAD3F;A@  ). 8AD?7D>K ;DEF ):;>;BB;@7 .@;A@ 7@AE3 "@5  "@H7EF?7@F :A>6;@9E H  Q  Q

&;.1? .:1 (;88C.E? #<2>.@6;:? ;DEF ):;>;BB;@7 "@8D3EFDG5FGD7 "@5  )"" "@H7EF?7@F :A>6;@9E HH  QQQ ;DEF ):;>;BB;@7 "@8D3EFDG5FGD77H7>AB?7@F ADBAD3F;A@  )"4 "@H7EF?7@F :A>6;@9E HHQ    Q %GLA@ -A>>I3KE ADBAD3F;A@4 HHQ   Q  &3@;>3 'ADF: -A>>I3KE ADBAD3F;A@4 -A>>I3KE AB7D3F;A@ HHQ   Q  

!.:A3.0@A>6:4 ;DEF ):;>;BB;@7 >75FD;5 ADBAD3F;A@  ;DEF ):;>75 &3@G835FGD7D A8 7>75FD;53> 3@6 7>75FDA@;5 5A?BA@7@FE H  Q  Q ;DEF >75FDAK@3?;5E ADBAD3F;A@  (+6 &3@G835FGD7D A8 FD3@E8AD?7DE H Q   Q ;DEF ):;>;BB;@7 )AI7D ,KEF7?E "@5  )),"6 &3@G835FGD7D A8 6DK FKB7 FD3@E8AD?7DE H Q  QQ ;DEF ):;>75 &3@G835FGD;@9 ADBAD3F;A@  )&- 6 &3@G835FGD7D A8 7>75FD;53> 3@6 7>75FDA@;5 BDA6G5FE H Q  QQ ):;>;BB;@7 >75FD;5 ADBAD3F;A@ )!"%6 );A@77D ?3@G835FGD7D A8 6;EFD;4GF;A@ FD3@E8AD?7DE H   Q     Q

52 )7D57@F397 A8 (I@7DE:;B      ,G4E;6;3D;7E )D;@5;B3> 5F;H;FK 6>20@ :16>20@ ;D75F "@6;D75F ;D75F "@6;D75F ;DEF ):;>75 ,A>3D ADBAD3F;A@  ;DEF ):;>75 ,A>3D0387DE>;5;@9 H  Q  QQ

&2.8 ?@.@2 2B28;<92:@ ;DEF ):;>;BB;@7 +73>FK 7H7>AB?7@F ADBAD3F;A@  )+9 +73> BDAB7DFK AI@7D 3@6 67H7>AB7D H  Q  Q ;DEF ):;>;BB;@7 +73>FK ADBAD3F;A@  )+ +73> BDAB7DFK :A>6;@9E 3@6 >7EEAD H  Q  Q )! +73>FK 3@6 7H7>AB?7@F ADBAD3F;A@ +73>FK7 +73> BDAB7DFK >7EEAD  H  Q  Q ;DEF ):;>;BB;@7 "@6GEFD;3> )3D= "@5  )") +73> 7EF3F767H7>AB7D  H  Q  Q )") )DAB7DFK 7H7>AB7DE 3@6 &3@397?7@F ADBAD3F;A@5 G;>6;@9 AB7D3F;A@E ?3@397?7@F 3@6 >7EEAD H  Q  Q  )") .F;>;F;7E "@5ADBAD3F765 03F7D 6;EFD;4GF;A@ H  Q  Q  ;DEF ,G?;67@ +73>FK "@5  ,+"6 H  Q   Q

;:?@>A0@6;: ;DEF 3>8AGD "@5  ;DEF 3>8AGDA@EFDG5F;A@ 3@6 BDA<75F ?3@397?7@F H  Q  Q

#@52>? ;DEF ):;>;BB;@7 %7@6;@9 ADBAD3F;A@ %7@6;@9 ;@H7EFAD H  Q  Q ,75GD;F;7E -D3@E87D ,7DH;57E "@5 ,FA5= FD3@E87DE7DH;57E H  Q  Q )! G@6 ,B75;3> BGDBAE77@F;FK A8 )! H  Q  Q !
"@F7D@3F;A@3> ,B75;3> BGDBAE77@F;FK A8 )! H  Q  Q )! /7@FGD7E ,B75;3> BGDBAE77@F;FK A8 )! H Q  Q  ' "+68+9+4:9 +,,+):/<+ +)5453/) /4:+8+9: 5, /89: 52*/4-9 85;6 :.85;-.
/89: +4 5=+<+8
:.+ +,,+):/<+ <5:/4- /4:+8+9: 5, /89: 52*/4-9 85;6 /9   ( $.85;-. ! /4  ) $.85;-. !! * $.85;-. /89: !./2+) /4  '4*  + '9 45: ?+:
9:'8:+* 56+8':/549 , "+68+9+4:9 +,,+):/<+ +)5453/) /4:+8+9: 5, /89: 52*/4-9 85;6 5=+<+8 :.+ +,,+):/<+ <5:/4- /4:+8+9: 5, /89: 52*/4-9 85;6 /9   - 5456+8':/4-

,G4E;6;3D;7E
3D75A@EA>;63F76 8DA?
F:7
63F7
5A@FDA> ;EFD3@E87DD76
FA
F:7 ;DEF
!A>6;@9E DAGB 3@6 5A@F;@G7 FA
47 5A@EA>;63F76
G@F;>
F:7 63F7 EG5: 5A@FDA> 573E7E

-:7 8;@3@5;3> EF3F7?7@FE
A8 EG4E;6;3D;7E 3D7
BD7B3D76 GE;@9 F:7 E3?7 D7BADF;@9 B7D;A6 A8 )! -:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3D7
BD7B3D76 GE;@9 G@;8AD?
355AG@F;@9 BA>;5;7E 8AD >;=7
FD3@E35F;A@E 3@6 AF:7D 7H7@FE I;F: E;?;>3D 5;D5G?EF3@57E >> ;@FD3 9DAGB
43>3@57E ;@5A?7
3@6 7JB7@E7E 3@6 G@D73>;L76 93;@E
3@6 >AEE7ED7EG>F;@9 8DA? ;@FD3 9DAGB
FD3@E35F;A@E
3D7
7>;?;@3F76 ;@ 8G>>

&;@AD;FK ;@F7D7EFE D7BD7E7@F
F:7 BADF;A@
A8
BDA8;F AD >AEE 3@6 @7F 3EE7FE
@AF :7>6 4K ;DEF
!A>6;@9E DAGB 3@6 3D7
BD7E7@F76 E7B3D3F7>K ;@
F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7
3@6 I;F:;@
7CG;FK ;@ F:7 5A@EA>;63F76 43>3@57 E:77FE E7B3D3F7>K 8DA?
7CG;FK 3FFD;4GF34>7
FA
7CG;FK :A>67DE A8 )! -:;E ;@5>G67E F:7 7CG;FK ;@F7D7EFE ;@ ;DEF 7@
3@6 EG4E;6;3D;7E 5A>>75F;H7>KD787DD76
FA3EO ;DEF 7@ DAGBP )"" 3@6 EG4E;6;3D;7E 5A>>75F;H7>KD787DD76
FA3EO )"" DAGBP 3F3@93E
A97@ )" ). )!
+73>FK 3@6 )") 3@6 EG4E;6;3D;7E @AF :7>6
4KF:7 ;DEF
!A>6;@9E DAGB

5CG;E;F;A@ A8 ?;@AD;FK ;@F7D7EFE ;E
355AG@F76 8AD
GE;@9 F:7 7@F;FK 5A@57BF ?7F:A6 E77
'AF7
 I:7D74K F:7 6;887D7@57
47FI77@ F:7 5A@E;67D3F;A@ 3@6 F:7 @7F 4AA= H3>G7
A8
F:7 E:3D7;@F:7
@7F
3EE7FE
35CG;D76 ;E D75A9@;L76
3E 3@ 7CG;FK FD3@E35F;A@

-:7
BDABADF;A@3F7
3?AG@F A8
F:7
83;DH3>G7E
A8 ;67@F;8;34>7 3EE7FE
3@6 >;34;>;F;7E
GBA@
35CG;E;F;A@
A8
3
5A@EA>;63F76 EG4E;6;3DK 3@6
3@KEG4E7CG7@F 5:3@97E ;@ 7CG;FK A8
3
5A@EA>;63F76 EG4E;6;3DK 3FFD;4GF34>7
FA 3?;@AD;FK E:3D7:A>67DNE ;@F7D7EF
3D7 E:AI@ E7B3D3F7>K
3EO?;@AD;FK ;@F7D7EFEP ;@
F:7 5A@EA>;63F76
43>3@57 E:77F ?;@AD;FK E:3D7:A>67DNE ;@F7D7EF ;@ F:7 D7EG>FE A8
AB7D3F;A@E
A8
3
EG4E;6;3DK ;EE:AI@3EO?;@AD;FK ;@F7D7EFEP ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

%AEE7E
3BB>;534>7
FA
3
?;@AD;FK E:3D7:A>67D ;@ 3 5A@EA>;63F76 EG4E;6;3DK ;@ 7J57EE
A8
F:7
?;@AD;FK E:3D7:A>67DNE
7CG;FK ;@
F:7 EG4E;6;3DK 3D75:3D976

53 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

393;@EF
F:7 ?;@AD;FK ;@F7D7EF
FA
F:7
7JF7@FF:3FF:7 ?;@AD;FK E:3D7:A>67D
:3E 4;@6;@9 A4>;93F;A@
FA
3@6 ;E 34>7
FA ?3=7
9AA6
A8
F:7 >AEE7E

0:7@ EG4E;6;3D;7E
3D7 EA>6
F:7 6;887D7@57
47FI77@
F:7 E7>>;@9
BD;57
3@6
F:7 @7F 3EE7FE
B>GE 5G?G>3F;H7 FD3@E>3F;A@ 6;887D7@57E
3@6 9AA6I;>> ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

,F3F7?7@F
A8
A?B>;3@57 -:7
355A?B3@K;@9 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3D7
BD7B3D76 ;@ 5A?B>;3@57
I;F: ):;>;BB;@7 ;@3@5;3> +7BADF;@9 ,F3@63D6E ) +,
3E ;EEG76 4K
F:7 ;@3@5;3> +7BADF;@9 ,F3@63D6E
AG@5;>
3@6
36ABF76
4KF:7 ):;>;BB;@7 ,

+787D7@57E
FA ) +, EF3@63D6E ;@5>G67
F:7
3BB>;53F;A@
A8 ):;>;BB;@7 55AG@F;@9 ,F3@63D6E ), ):;>;BB;@7 ;@3@5;3> +7BADF;@9 ,F3@63D6E ) +, 3@6 ):;>;BB;@7
"@F7DBD7F3F;A@E
A8
F:7
"@F7D@3F;A@3> ;@3@5;3>
+7BADF;@9 "@F7DBD7F3F;A@E A??;FF77 " +"

:3@97E ;@ 55AG@F;@9 )A>;5;7E
3@6
;E5>AEGD7E -:7
355AG@F;@9 BA>;5;7E 36ABF76
3D75A@E;EF7@FI;F: F:AE7
A8
F:7 BD7H;AGE 8;@3@5;3> K73D
7J57BF 8AD
F:7
36ABF;A@
A8
F:7 8A>>AI;@9 ):;>;BB;@7
"@F7DBD7F3F;A@E I:;5:
4753?7
78875F;H7 479;@@;@9 #3@G3DK    3@6 3@
3?7@6?7@F
FA
3@ 7J;EF;@9 EF3@63D6
F:3F 4753?7
78875F;H7 479;@@;@9 #G>K 
  J57BF
3E AF:7DI;E7 ;@6;53F76
F:7
36ABF;A@ A8
F:7E7 5:3@97E ;@ ) +, 6;6
@AF
:3H7
3@KE;9@;8;53@F 78875F
FA
;DEF !A>6;@9E DAGB5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

" +"
 O" +,  DAGB 3@6 -D73EGDK ,:3D7-D3@E35F;A@EP

-:;E ;@F7DBD7F3F;A@ D7CG;D7E
3DD3@97?7@FE I:7D74K 3@ 7?B>AK77 ;E
9D3@F76 D;9:FE FA
3@
7@F;FKNE 7CG;FK ;@EFDG?7@FE
FA
47 355AG@F76 8AD
3E
3@
7CG;FK E7FF>76 E5:7?7 4K
F:7 7@F;FK 7H7@ ;8
F:7
7@F;FK 5:AAE7E
AD ;ED7CG;D76 FA4GK F:AE77CG;FK ;@EFDG?7@FE 7 9
FD73EGDK E:3D7E8DA?
3@AF:7D B3DFK AD
F:7 E:3D7:A>67DE
A8
F:7
7@F;FK BDAH;67 F:7 7CG;FK ;@EFDG?7@FE
@77676

" +"
 O",  -:7
%;?;F
A@
3
78;@76 7@78;F EE7F
&;@;?G? G@6;@9
+7CG;D7?7@FE
3@6
F:7;D "@F7D35F;A@P

-:;E ;@F7DBD7F3F;A@ :3E
475A?7
78875F;H78AD 8;@3@5;3> K73DE
479;@@;@9 A@
AD
38F7D #3@G3DK

  ):;>;BB;@7
"@F7DBD7F3F;A@
" +"

366D7EE7E
:AIFA3EE7EE
F:7
>;?;F
G@67D ",
 O?B>AK77 7@78;FE P
A@
F:7
3?AG@F A8
F:7 B7@E;A@ E5:7?7 EGDB>GE
F:3F
53@
47
D75A9@;L76 3E
3@
3EE7F ;@ F:7 5A@EA>;63F76 43>3@57 E:77F ;@B3DF;5G>3D I:7@
3
?;@;?G?8G@6;@9 D7CG;D7?7@F 7J;EFE -:7EB75;8;5 ;EEG7E
366D7EE76 4K
F:7 ;@F7DBD7F3F;A@
3D7  3 D78G@6 ;E 3H3;>34>7
FA
F:7 7@F;FK A@>K ;8
F:7D7;E
3@
G@5A@6;F;A@3> D;9:F
FA
F:7 D78G@6
3@6 EG5: D78G@6 ;E ?73EGD76
3EF:7 3?AG@F
A8
F:7
EGDB>GE 3F
F:7 43>3@57 E:77F 63F7>7EE 3@K 3EEA5;3F76 5AEFE  I:7@
F:7D7;E 3@ G@5A@6;F;A@3> D;9:FFA
3
D78G@6 3@6 F:7D7;E
@A
?;@;?G?8G@6;@9 D7CG;D7?7@F
3@ 7@F;FK
67F7D?;@7E
F:7
47@78;F 3H3;>34>7
3E
F:7 >AI7D
A8 F:7 EGDB>GE ;@
F:7 B>3@
3@6 F:7
BD7E7@FH3>G7
A8
F:7
8GFGD7 E7DH;57 5AEF
FA F:7 7@F;FK  I:7@ 3 ?;@;?G?8G@6;@9 D7CG;D7?7@F
7J;EFE
F:7 47@78;F 3H3;>34>7 ;EF:7
BD7E7@FH3>G7
A8
F:7
7EF;?3F76 8GFGD7 E7DH;57 5AEF >7EE
F:7 7EF;?3F76 ?;@;?G?8G@6;@9 5A@FD;4GF;A@ D7CG;D76 ;@ D7EB75F A8
F:7
8GFGD7
355DG3> A8
47@78;FE ;@
F:3FK73D 3@6  ;8
3@
7@F;FK :3E
3
?;@;?G?8G@6;@9 D7CG;D7?7@F
FAB3K 366;F;A@3> 5A@FD;4GF;A@E
F:7 7@F;FK ?GEF
67F7D?;@7 I:7F:7DF:7 5A@FD;4GF;A@EI;>> 47 3H3;>34>7
3E
3
D78G@6
AD D76G5F;A@ ;@ 8GFGD75A@FD;4GF;A@E
38F7D
F:7K 3D7 B3;6 ;@FA
F:7 B>3@

"8
@AF
3 >;34;>;FK ;ED75A9@;L76 I:7@ F:7 A4>;93F;A@
3D;E7E

?7@6?7@FE
FA
),
 O ;@3@5;3>
"@EFDG?7@FE
+75A9@;F;A@
3@6 &73EGD7?7@F P 3@6 ) +,

;@3@5;3>
"@EFDG?7@FE
;E5>AEGD7E
+75>3EE;8;53F;A@
A8 ;@3@5;3> EE7FEP

-:7
3?7@6?7@FE
FA
),

3D7
78875F;H7
479;@@;@9 #G>K    @F;F;7E 3D7@AF B7D?;FF76
FA
D75>3EE;8K 8;@3@5;3> 3EE7FE ;@
355AD63@57 I;F:
F:7
3?7@6?7@FE
478AD7#G>K    @K D75>3EE;8;53F;A@
A8
3
8;@3@5;3>
3EE7F ?367 ;@
B7D;A6E 479;@@;@9
A@ AD
38F7D
'AH7?47D

  I;>> F3=7 78875F
A@>K 8DA?
F:7
63F7
F:7 D75>3EE;8;53F;A@ ;E ?367 -:7
3?7@6?7@FE
FA
),

B7D?;F
3@
7@F;FK FA  D75>3EE;8K @A@ 67D;H3F;H78;@3@5;3>
3EE7FE AF:7D
F:3@
F:AE767E;9@3F76 3F 83;DH3>G7
F:DAG9:
BDA8;F
AD >AEE 4KF:7
7@F;FK GBA@ ;@;F;3> D75A9@;F;A@
AGF
A8
F:7
83;DH3>G7 F:DAG9:
BDA8;F
AD >AEE 53F79ADK ;8
F:7
8;@3@5;3>
3EE7F ;E
@A >A@97D :7>6 8AD
F:7
BGDBAE7A8E7>>;@9
ADD7BGD5:3E;@9 ;F ;@
F:7 @73D
F7D?;@ B3DF;5G>3D 5;D5G?EF3@57E
3@6

FD3@E87D 8DA?
F:7
 , 53F79ADK FA F:7 >A3@E
3@6 D757;H34>7E 53F79ADK
3
8;@3@5;3> 3EE7FF:3FIAG>6 :3H7?7F
F:7
678;@;F;A@A8>A3@E
3@6 D757;H34>7E ;8
F:7
8;@3@5;3>

54 3EE7F
:36
@AF
477@ 67E;9@3F76 3E  , ;8
F:7
7@F;FK :3E
F:7 ;@F7@F;A@ 3@6
34;>;FK FA
:A>6 F:3F 8;@3@5;3> 3EE7F 8AD
F:7
8AD7E7734>7 8GFGD7

'7I 55AG@F;@9 ,F3@63D6E
"@F7DBD7F3F;A@E 3@6 ?7@6?7@FE
FA J;EF;@9 ,F3@63D6E 8875F;H7,G4E7CG7@F
FA
757?47D
   -:7
A?B3@KI;>> 36ABFF:7 8A>>AI;@9 EF3@63D6E 3@6 ;@F7DBD7F3F;A@E
7@G?7D3F76 47>AII:7@ F:7E7 475A?7
78875F;H7 3@6 3E
F:7E7
3D7 3BB>;534>7 J57BF
3E
AF:7DI;E7 ;@6;53F76 F:7
A?B3@K 6A7E @AF 7JB75F
F:7
36ABF;A@
A8
F:7E7
@7I
3@6
3?7@676 ) +,
3@6 ):;>;BB;@7
"@F7DBD7F3F;A@E
FA
:3H7 E;9@;8;53@F ;?B35F
A@
;FE 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

,,+):/<+ /4


) +,  O ;DEF F;?7 6ABF;A@
A8 ):;>;BB;@7 ;@3@5;3> +7BADF;@9 ,F3@63D6E
AEF A8
3@
"@H7EF?7@F ;@
3
,G4E;6;3DK #A;@F>K
A@FDA>>76 @F;FK AD EEA5;3F7P

-:7
3?7@676 ) +,
3>>AIE 3@ 7@F;FK ;@;FE E7B3D3F7 8;@3@5;3> EF3F7?7@FE
FA
67F7D?;@7
F:7
5AEF
A8 ;@H7EF?7@FE ;@ EG4E;6;3D;7E K 5A@FDA>>76 7@F;F;7E
AD
3EEA5;3F7E ;@ ;FE AB7@;@9 ) +, 8;@3@5;3> EF3F7?7@FE
3E
A@7
A8
F:7 8A>>AI;@9 3?AG@FE
3 5AEF 67F7D?;@76 ;@
355AD63@57 I;F:),

OA@EA>;63F76 3@6 ,7B3D3F7 ;@3@5;3> ,F3F7?7@FEP
4
3F
F:7 83;DH3>G7
A8
F:7 ;@H7EF?7@F
3F
F:7 63F7
A8 FD3@E;F;A@ FA ) +,
67F7D?;@76 ;@ 355AD63@57 I;F: ),

AD 5
BD7H;AGE 53DDK;@9
3?AG@F 3E 67F7D?;@76 G@67D 97@7D3>>K
3557BF76
355AG@F;@9
BD;@5;B>7E
A8
F:7 ;@H7EF?7@F
3F
F:7 63F7A8
FD3@E;F;A@ FA ) +,

) +,  O,:3D7 43E76 )3K?7@F /7EF;@9 A@6;F;A@ 3@6
3@57>>3F;A@EP

-:7 EF3@63D6:3E
477@ D7H;E76
FA
5>3D;8K
F:7 678;@;F;A@ A8
3
H7EF;@9 5A@6;F;A@ 3@6
BD7E5D;47E
F:7
FD73F?7@F 8AD
3@
3I3D6
F:3F ;E
78875F;H7>K 53@57>>76
"F
678;@7E
3 H7EF;@9 5A@6;F;A@ 3E
3
5A@6;F;A@ F:3F ;@5>G67E 3@
7JB>;5;F
AD ;?B>;5;FD7CG;D7?7@F
FA
BDAH;67 E7DH;57E "F 8GDF:7DD7CG;D7E @A@ H7EF;@9 5A@6;F;A@E
FA
47
FD73F76 ;@ 3 E;?;>3D 83E:;A@ FA?3D=7F 5A@6;F;A@E 3;>GD7
FA
E3F;E8K 3 @A@ H7EF;@9 5A@6;F;A@
F:3F ;EI;F:;@ F:7 5A@FDA>
A8
7;F:7D
F:7 7@F;FK ADF:7 5AG@F7DB3DFK ;E
355AG@F76 8AD
3E 53@57>>3F;A@
!AI7H7D 83;>GD7
FA
E3F;E8K
3
@A@ H7EF;@9 5A@6;F;A@
F:3F ;E 47KA@6
F:7 5A@FDA> A8
7;F:7D B3DFK 6A7E @AF 9;H7 D;E7
FA 3 53@57>>3F;A@

) +,  O(B7D3F;@9 ,79?7@FEP

) +,  I;>> D7B>357 ),
 O,79?7@F
+7BADF;@9 P
3@6
36ABFE
3
8G>> ?3@397?7@F
3BBDA35:
FA ;67@F;8K;@9 ?73EGD;@9 3@6 6;E5>AE;@9 F:7 D7EG>FE
A8
3@ 7@F;FKNE
AB7D3F;@9 E79?7@FE -:7;@8AD?3F;A@ D7BADF76 IAG>6 47 F:3FI:;5: ?3@397?7@F
GE7E ;@F7D@3>>K 8AD 7H3>G3F;@9
F:7
B7D8AD?3@57
A8
AB7D3F;@9 E79?7@FE
3@6
3>>A53F;@9 D7EAGD57E
FA
F:AE7 E79?7@FE ,G5: ;@8AD?3F;A@ ?3K 47 6;887D7@F 8DA?
F:3F
D7BADF76 ;@
F:7 5A@EA>;63F76
43>3@57 E:77F
3@6 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
3@6 F:7 A?B3@K I;>>
BDAH;67 7JB>3@3F;A@E
3@6 D75A@5;>;3F;A@E
A8
F:7 6;887D7@57E

?7@6?7@FE
FA
),

O)D7E7@F3F;A@
A8 ;@3@5;3> ,F3F7?7@FEP

-:7E7
3?7@6?7@FE ;@FDA6G57
3
@7IEF3F7?7@F
A8 5A?BD7:7@E;H7 ;@5A?7
F:3F
5A?4;@7E
3>> ;F7?E
A8 ;@5A?7
3@6
7JB7@E7ED75A9@;L76 ;@
F:7
BDA8;F AD >AEE FA97F:7DI;F: OAF:7D 5A?BD7:7@E;H7 ;@5A?7 P @F;F;7E ?3K 5:AAE7
FA
BD7E7@F 3>> ;F7?E ;@
A@7 EF3F7?7@F AD
FA
BD7E7@FFIA >;@=76 EF3F7?7@FE
3
E7B3D3F7 EF3F7?7@F
A8 ;@5A?7
3@6
3
EF3F7?7@F
A8 5A?BD7:7@E;H7 ;@5A?7 -:7E7
3?7@6?7@FE
3>EA BD7E5D;47 366;F;A@3> D7CG;D7?7@FE ;@
F:7
BD7E7@F3F;A@ A8
F:7
5A@EA>;63F76 43>3@57 E:77F 3@6 7CG;FK
3E I7>>
3E 366;F;A@3> 6;E5>AEGD7E
FA
47 ;@5>G676 ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

),  OADDAI;@9 AEFEP

-:7 EF3@63D6:3E
477@ D7H;E76
FA
D7CG;D753B;F3>;L3F;A@
A8
4ADDAI;@9 5AEFE I:7@ EG5: 5AEFE D7>3F7
FA3 CG3>;8K;@9 3EE7F 
CG3>;8K;@9
3EE7F ;E
3@ 3EE7F
F:3F @757EE3D;>KF3=7E
3
EG4EF3@F;3>
B7D;A6 A8
F;?7
FA
97FD736K 8AD ;FE ;@F7@676
GE7
ADE3>7

"@ 355AD63@57 I;F: F:7 FD3@E;F;A@3> D7CG;D7?7@FE ;@
F:7
EF3@63D6
F:7
A?B3@KI;>>
36ABF
F:;E
3E
3BDAEB75F;H7 5:3@97 55AD6;@9>K 4ADDAI;@9 5AEFE I;>> 47 53B;F3>;L76 A@
CG3>;8K;@9
3EE7FE
I;F: 3 5A??7@57?7@F
63F7
38F7D #3@G3DK 
 

'A
5:3@97 I;>> 47 ?367 8AD
4ADDAI;@9 5AEFE ;@5GDD76
FA
EG5:
63F7
F:3F :3H7
477@
7JB7@E76

55 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

?7@6?7@FE
FA
),
 OA@EA>;63F76
3@6 ,7B3D3F7 ;@3@5;3> ,F3F7?7@FE
AEF
A8
3@
"@H7EF?7@F ;@ 3,G4E;6;3DK #A;@F>K A@FDA>>76 @F;FK AD EEA5;3F7P

-:7E7
3?7@6?7@FE
BD7E5D;47 5:3@97E ;@ D7EB75F
A8
F:7
:A>6;@9 5A?B3@;7EN E7B3D3F7 8;@3@5;3> EF3F7?7@FE ;@5>G6;@9 3
F:7
67>7F;A@
A8 O5AEF ?7F:A6 P ?3=;@9
F:7
6;EF;@5F;A@
47FI77@ BD7
3@6 BAEF 35CG;E;F;A@
BDA8;FE @A >A@97DD7CG;D76 3@6 4 ;@ 53E7E
A8 D7AD93@;L3F;A@EI:7D7
3@7I B3D7@F ;E ;@E7DF76
34AH73@
7J;EF;@9 B3D7@F A8
F:7
9DAGBEG4<75F
FA
?77F;@9 EB75;8;5 D7CG;D7?7@FE
F:7
5AEF
A8 F:7 EG4E;6;3DK ;E
F:7
BD7H;AGE 53DDK;@9
3?AG@F
A8 ;FE E:3D7
A8
7CG;FK ;F7?E ;@
F:7
EG4E;6;3DK D3F:7DF:3@ ;FE 83;DH3>G7 >> 6;H;67@6EI;>> 47 D75A9@;L76 ;@
BDA8;F AD >AEE

!AI7H7D F:7 B3K?7@F
A8 EG5: 6;H;67@6ED7CG;D7E
F:7
7@F;FK FA5A@E;67DI:7F:7DF:7D7;E
3@ ;@6;53FAD
A8 ;?B3;D?7@F

?7@6?7@F
FA), O ;@3@5;3> "@EFDG?7@FE)D7E7@F3F;A@P 3@6 ),  O)D7E7@F3F;A@A8 ;@3@5;3> ,F3F7?7@FE )GFF34>7 ;@3@5;3>
"@EFDG?7@FE
3@6
(4>;93F;A@E D;E;@9A@%;CG;63F;A@P

-:7E7
3?7@6?7@FE EB75;8K
3?A@9
AF:7DE F:3F BGFF34>7 8;@3@5;3> ;@EFDG?7@FE I;>> 47 5>3EE;8;76
3E 7CG;FK ;8
F:7K :3H73>>A8
F:7 8A>>AI;@9 EB75;8;76 873FGD7E3-:7;@EFDG?7@F
7@F;F>7E
F:7
:A>67D
FA
D7CG;D7
F:7
7@F;FK
FA D7BGD5:3E7
ADD7677?
F:7
;@EFDG?7@F 7;F:7D A@ 3@
A@9A;@9
43E;E
AD
A@
>;CG;63F;A@ 8AD
3
BDA D3F3 E:3D7
A8
F:7 7@F;FKNE @7F
3EE7FE4-:7;@EFDG?7@F ;E ;@ F:7 ?AEF EG4AD6;@3F7 5>3EE
A8 ;@EFDG?7@FE I;F:@A
BD;AD;FK AH7D
AF:7D 5>3;?EFA
F:7
3EE7FE
A8
F:7 7@F;FK A@ >;CG;63F;A@ 5 >> ;@EFDG?7@FE ;@
F:7 EG4AD6;@3F7 5>3EE
:3H7 ;67@F;53> 873FGD7E6-:7;@EFDG?7@F 6A7E
@AF ;@5>G67
3@K 5A@FD35FG3> A4>;93F;A@
FAB3K 53E:
AD 8;@3@5;3> 3EE7FE AF:7D
F:3@ F:7 :A>67DNE D;9:F
FA
3
BDA D3F3 E:3D7
A8 F:7 7@F;FKNE
@7F
3EE7FE
3@6 7 -:7
FAF3> 7JB75F76 53E:8>AIE 3FFD;4GF34>7
FA
F:7 ;@EFDG?7@F
AH7D ;FE >;87 3D7
43E76 EG4EF3@F;3>>K A@
F:7
BDA8;F AD >AEE 3 5:3@97 ;@ D75A9@;L76 @7F 3EE7FE
AD
3
5:3@97 ;@ F:7 83;D H3>G7A8
F:7
D75A9@;L76 3@6
G@D75A9@;L76 @7F
3EE7FE A8
F:7
7@F;FK AH7DF:7 >;87
A8 F:7 ;@EFDG?7@F

):;>;BB;@7
"@F7DBD7F3F;A@
" +"
 OGEFA?7D
%AK3>FK )DA9D3??7EP

-:;E
"@F7DBD7F3F;A@ D7CG;D7E 5GEFA?7D >AK3>FK
3I3D65D76;FE
FA
47 355AG@F76 8AD
3E 3 E7B3D3F7 5A?BA@7@F A8
F:7
E3>7E
FD3@E35F;A@ ;@ I:;5:
F:7K 3D79D3@F76 3@6 F:7D78AD7
B3DF A8
F:7
83;DH3>G7
A8
F:7 5A@E;67D3F;A@ D757;H76 ;E
3>>A53F76
FA
F:7 3I3D65D76;FE
3@6
D73>;L76 ;@ ;@5A?7
AH7D
F:7
B7D;A6
F:3F
F:7 3I3D65D76;FE
3D7 D7677?76
AD
7JB;D7

):;>;BB;@7
"@F7DBD7F3F;A@
" +"
 O!7697E
A8
3
'7F "@H7EF?7@F ;@
3
AD7;9@ (B7D3F;A@P

-:;E
"@F7DBD7F3F;A@
BDAH;67E
9G;63@57
A@ ;67@F;8K;@9 8AD7;9@ 5GDD7@5KD;E=E
F:3F
CG3>;8K 8AD
:7697 355AG@F;@9 ;@ F:7 :7697 A8
@7F ;@H7EF?7@F
I:7D7 I;F:;@
F:7
9DAGB
F:7 :769;@9 ;@EFDG?7@F 53@ 47 :7>6 ;@
F:7
:7697
A8
3
@7F ;@H7EF?7@F
3@6 :AI 3@ 7@F;FK E:AG>6
67F7D?;@7
F:7 3?AG@F A8 8AD7;9@ 5GDD7@5K
93;@E
AD >AEE7E D7>3F;@9 FA4AF: F:7 @7F ;@H7EF?7@F
3@6
F:7
:769;@9 ;@EFDG?7@F
FA
47
D75K5>76 A@ 6;EBAE3> A8
F:7 @7F ;@H7EF?7@F

3685<+3+4:9 :5 !"#9 "@
&3K  
F:7
"@F7D@3F;A@3> 55AG@F;@9 ,F3@63D6E A3D6;EEG76 ;FE 8;DEF A?@;4GE
A8
3?7@6?7@FE
FA
57DF3;@ EF3@63D6E
BD;?3D;>KI;F:3H;7I
FA
D7?AH;@9 ;@5A@E;EF7@5;7E
3@6 5>3D;8K;@9 IAD6;@9 -:7D7
3D7 E7B3D3F7
FD3@E;F;A@3> BDAH;E;A@E 8AD
735: EF3@63D6

) +,  O'A@ 5GDD7@F EE7FE
!7>6 8AD ,3>7 3@6 ;E5A@F;@G76 (B7D3F;A@EP

0:7@
3
EG4E;6;3DK ;E :7>6 8ADE3>7 3>>
A8 ;FE
3EE7FE 3@6 >;34;>;F;7EI;>> 47 5>3EE;8;76 3E
:7>6 8ADE3>7 G@67D ) +,
 7H7@ I:7@ F:7 7@F;FK D7F3;@E
3 @A@ 5A@FDA>>;@9 ;@F7D7EF ;@ F:7 EG4E;6;3DK
38F7D
F:7 E3>7

),
 O)D7E7@F3F;A@ A8 ;@3@5;3> ,F3F7?7@FEP

EE7FE
3@6 >;34;>;F;7E 5>3EE;8;76 3E
:7>6 8AD
FD36;@9
3D7
@AF
3GFA?3F;53>>K 5>3EE;8;76 3E 5GDD7@F ;@ F:7 43>3@57 E:77F

),  O)DAB7DFK )>3@F 3@6 CG;B?7@FP

-:7
3?7@6?7@FD7B>357EF:7
F7D? O@7FE7>>;@9
BD;57P
I;F: O83;DH3>G7>7EE 5AEFE
FA E7>> PFA47 5A@E;EF7@FI;F: ) +,  3@6 ),  O"?B3;D?7@F
A8 EE7F P

56 "F7?E A8
BDAB7DFK
B>3@F 3@6
7CG;B?7@F
:7>6 8ADD7@F3> F:3F
3D7 DAGF;@7>KEA>6 ;@
F:7
AD6;@3DK 5AGDE7
A8 4GE;@7EE
38F7DD7@F3>
3D7 FD3@E87DD76
FA
;@H7@FADK I:7@ D7@F3> 573E7E
3@6
F:7K 3D7
:7>6 8ADE3>7 )DA5776E A8 EG5: E3>7E
3D7 EG4E7CG7@F>KE:AI@3ED7H7@G7
3E:B3K?7@FE
A@ ;@;F;3> D75A9@;F;A@
A8 EG5: ;F7?E
F:7
53E: D757;BFE 8DA? D7@FE
3@6
EG4E7CG7@FE3>7E
3D73>>E:AI@
3E 53E:8>AIE 8DA? AB7D3F;@9
35F;H;F;7E

),  O?B>AK77 7@78;FEP

-:7
3?7@6?7@FD7H;E7EF:7
678;@;F;A@ A8 OB3EF E7DH;57 5AEFEP
FA
;@5>G67 D76G5F;A@E ;@ 47@78;FE D7>3F76 FA
B3EF E7DH;57E O@793F;H7B3EF E7DH;57 5AEFEP
3@6
FA7J5>G67 D76G5F;A@E ;@ 47@78;FE D7>3F76 FA8GFGD7 E7DH;57E
F:3F
3D;E78DA?
B>3@
3?7@6?7@FE ?7@6?7@FE
FA
B>3@E
F:3FD7EG>F ;@
3 D76G5F;A@ ;@ 47@78;FE D7>3F76
FA8GFGD7 E7DH;57E
3D7
355AG@F76 8AD
3E
3
5GDF3;>?7@F

"F
3>EA D7H;E7E
F:7
678;@;F;A@
A8 OD7FGD@
A@ B>3@
3EE7FEP FA
7J5>G67 B>3@
36?;@;EFD3F;A@ 5AEFE ;8
F:7K :3H7 3>D736K 477@ ;@5>G676 ;@
F:7
35FG3D;3>
3EEG?BF;A@E
GE76
FA?73EGD7
F:7
678;@76 47@78;F A4>;93F;A@

-:7
678;@;F;A@
A8 OE:ADF F7D?P
3@6
OAF:7D >A@9 F7D?P
7?B>AK77 47@78;FE
:3E
477@ D7H;E76
FA
8A5GE A@ F:7 BA;@F ;@ F;?7
3F
I:;5: F:7 >;34;>;FK ;E 6G7 FA47E7FF>76

-:7 D787D7@57
FA
F:7 D75A9@;F;A@A85A@F;@97@F >;34;>;F;7E
:3E
477@ 67>7F76 FA7@EGD75A@E;EF7@5KI;F: ),  O)DAH;E;A@E A@F;@97@F %;34;>;F;7E
3@6
A@F;@97@F EE7FE P

),  O55AG@F;@9 8AD AH7D@?7@F D3@FE 3@6 ;E5>AEGD7E
A8 AH7D@?7@F EE;EF3@57P

%A3@E 9D3@F76 I;F:@AAD >AI ;@F7D7EF D3F7EI;>> @AF 47 7J7?BF
8DA?
F:7
D7CG;D7?7@F
FA;?BGF7;@F7D7EF -:7
6;887D7@57
47FI77@ F:7
3?AG@FD757;H76 3@6
F:7 6;E5AG@F76
3?AG@F ;E
355AG@F76 8AD
3E
3
9AH7D@?7@F
9D3@F

),  OADDAI;@9 AEFEP

-:7
3?7@6?7@FD7H;E7EF:7
678;@;F;A@ A8
4ADDAI;@9 5AEFE
FA
5A@EA>;63F7 F:7 FKB7E
A8 ;F7?E
F:3F
3D7 5A@E;67D76 5A?BA@7@FE
A8 O4ADDAI;@9 5AEFE P ; 7 5A?BA@7@FE
A8
F:7 ;@F7D7EF
7JB7@E7 53>5G>3F76 GE;@9 F:7 78875F;H7;@F7D7EF ?7F:A6

),  O"@H7EF?7@F ;@ EEA5;3F7EP

"8
3@
3EEA5;3F7;E
355AG@F76 8AD
3F
83;DH3>G7;@
355AD63@57 I;F:), A@>KF:7 D7CG;D7?7@F
A8 ), 
FA
6;E5>AE7
F:7
@3FGD7
3@6
7JF7@F
A8
3@KE;9@;8;53@FD7EFD;5F;A@E A@
F:7 34;>;FK
A8 F:7
3EEA5;3F7 FA FD3@E87D 8G@6E
FA
F:7 7@F;FK ;@
F:7 8AD?
A8 53E:
ADD7B3K?7@F
A8 >A3@EI;>> 3BB>K

@ ;@H7EF?7@F ;@ 3@
3EEA5;3F7;E
3
E;@9>7
3EE7F 8AD
F:7 BGDBAE7A85A@6G5F;@9 F:7 ;?B3;D?7@F
F7EF -:7D78AD7
3@K ;?B3;D?7@F
F7EF ;E @AFE7B3D3F7>K 3>>A53F76 FA
F:7
9AA6I;>> ;@5>G676 ;@ F:7 ;@H7EF?7@F 43>3@57

),  O ;@3@5;3> +7BADF;@9;@!KB7D;@8>3F;A@3DK 5A@A?;7EP

-:;E 3?7@6?7@FD7H;E7E
F:7 D787D7@57
FA F:7 7J57BF;A@
F:3F
3EE7FE
3@6 >;34;>;F;7EE:AG>6
47 ?73EGD76 3F :;EFAD;53> 5AEF EG5: F:3F ;F @AF7E
BDAB7DFK B>3@F
3@6 7CG;B?7@F
3E
47;@9
3@ 7J3?B>7 D3F:7D
F:3@ ;?B>K;@9
F:3F ;F ;E 3
678;@;F;H7>;EF

),  O"@F7D7EF ;@ #A;@F /7@FGD7EP

"8
3
G7 ;@ 355AD63@57 I;F: ), 
A@>KF:7 D7CG;D7?7@FE
A8 ), 
FA6;E5>AE7
F:7 5A??;F?7@FE
A8
F:7
H7@FGD7D
3@6
F:7 > 3EEG??3DK 8;@3@5;3> ;@8AD?3F;A@ 34AGF F:7
3EE7FE >;34;>;F;7E ;@5A?7
3@6
7JB7@E7 I;>> 3BB>K

57 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

),  O"?B3;D?7@F
A8 EE7FEP

0:7@
6;E5AG@F76 53E:8>AIE
3D7
GE76 FA
7EF;?3F7 M83;DH3>G7>7EE 5AEF
FA
E7>>N 366;F;A@3> 6;E5>AEGD7;E D7CG;D76 34AGF
F:7 6;E5AG@FD3F7 5A@E;EF7@FI;F:6;E5>AEGD7ED7CG;D76 I:7@ F:7 6;E5AG@F76 53E:8>AIE 3D7
GE76 FA
7EF;?3F7 OH3>G7;@GE7 P

),  O"@F3@9;4>7 EE7FEP

JB7@6;FGD7A@
36H7DF;E;@9 3@6 BDA?AF;A@3>
35F;H;F;7E ;ED75A9@;L76
3E 3@
7JB7@E7 I:7@
F:7 ;DEF !A>6;@9E DAGB7;F:7D :3EF:7 D;9:FFA
3557EE
F:7 9AA6E
AD
:3ED757;H76
F:7 E7DH;57E 6H7DF;E;@9 3@6 BDA?AF;A@3>
35F;H;F;7E
@AIEB75;8;53>>K ;@5>G67 ?3;>
AD67D 53F3>A9G7E

+787D7@57E
FA
OF:7D747;@9D3D7>K ;87H7D B7DEG3E;H77H;67@57 FA EGBBADF 3@
3?ADF;L3F;A@ ?7F:A6 8AD 8;@;F7 >;87 ;@F3@9;4>7
3EE7FE F:3FD7EG>FE ;@
3>AI7D
3?AG@F
A8
355G?G>3F76
3?ADF;L3F;A@
F:3@ G@67DF:7 EFD3;9:F >;@7 ?7F:A6 F:7D74K 78875F;H7>K 3>>AI;@9
F:7
GE7
A8
F:7 G@;F A8 BDA6G5F;A@ ?7F:A6P
:3E
477@ 67>7F76

),  O ;@3@5;3> "@EFDG?7@FE
+75A9@;F;A@ 3@6 &73EGD7?7@FP

:3@97E ;@ 5;D5G?EF3@57ED7>3F;@9 FA67D;H3F;H7EEB75;8;53>>K 67D;H3F;H7E
67E;9@3F76
AD 67 67E;9@3F76 3E
:769;@9 ;@EFDG?7@FE
38F7D ;@;F;3> D75A9@;F;A@ 3D7@AFD75>3EE;8;53F;A@E

0:7@ 8;@3@5;3>
3EE7FE
3D7 D75>3EE;8;76 3E
3
D7EG>F
A8
3@ ;@EGD3@57 5A?B3@K 5:3@9;@9 ;FE
355AG@F;@9 BA>;5K ;@ 355AD63@57 I;F:B3D39D3B:

A8 ) +,

O"@EGD3@57
A@FD35FE P
F:;E ;E 3 5:3@97 ;@ 5;D5G?EF3@57
@AF 3 D75>3EE;8;53F;A@

+787D7@57
FA3OE79?7@FP
I:7@ 67F7D?;@;@9 I:7F:7D 3@ ;@EFDG?7@F
CG3>;8;7E
3E
3
:7697 :3E
477@ D7?AH76

"F 3>EA D7CG;D7EGE7
A8
F:7
D7H;E76
78875F;H7;@F7D7EF D3F7D3F:7DF:3@
F:7
AD;9;@3>
78875F;H7 ;@F7D7EF D3F7 I:7@ D7 ?73EGD;@9 3 674F ;@EFDG?7@F
A@
F:7 57EE3F;A@
A8 83;DH3>G7 :7697
355AG@F;@9

),  O"@H7EF?7@F )DAB7DF;7EP

-:7
3?7@6?7@FD7H;E7EF:7 E5AB7 3@6 F:7 E5AB7
A8 ), 
FA ;@5>G67 BDAB7DFK
F:3F ;E
47;@9 5A@EFDG5F76
AD 67H7>AB76 8AD 8GFGD7
GE7
3E 3@ ;@H7EF?7@F
BDAB7DFK 0:7D7
3@
7@F;FK ;EG@34>7
FA
67F7D?;@7
F:7 83;DH3>G7
A8 3@ ;@H7EF?7@F
BDAB7DFK G@67D 5A@EFDG5F;A@ 4GF
7JB75FE
FA
47
34>7 FA 67F7D?;@7 ;FE 83;DH3>G7
A@
5A?B>7F;A@
F:7 ;@H7EF?7@F
G@67D 5A@EFDG5F;A@ I;>> 47 ?73EGD76 3F 5AEF G@F;> EG5: F;?7
3E 83;DH3>G753@
47
67F7D?;@76
AD 5A@EFDG5F;A@ ;E 5A?B>7F7

),  O9D;5G>FGD7P

-:7
3?7@6?7@FD7?AH7E
F:7
D787D7@57 FA
F:7
GE7A8
3
BD7 F3J 6;E5AG@FD3F7 FA
67F7D?;@7 83;DH3>G7 F:7D74K 3>>AI;@9 GE7
A8
7;F:7D
3
BD7 F3J AD
BAEF F3J 6;E5AG@FD3F7 67B7@6;@9
A@ F:7 H3>G3F;A@ ?7F:A6A>A9KGE76

"F
3>EA D7?AH7E
F:7 BDA:;4;F;A@
FA
F3=7 ;@FA
355AG@F 53E:8>AIE D7EG>F;@9 8DA?
3@K 366;F;A@3> FD3@E8AD?3F;A@EI:7@
7EF;?3F;@9 83;DH3>G7 "@EF736 53E:8>AIE F:3F 3D7
7JB75F76
FA
47 97@7D3F76 ;@ F:7 O?AEF D7>7H3@F ?3D=7FP
3D7
F3=7@ ;@FA 355AG@F

,,+):/<+ /4

+7H;E76 ) +,

OGE;@7EE
A?4;@3F;A@EP
3@6 ),  OA@EA>;63F76 3@6 ,7B3D3F7 ;@3@5;3> ,F3F7?7@FE

-:7 D7H;E76 ) +,
;@FDA6G57E
3
@G?47D
A8 5:3@97E ;@ F:7
355AG@F;@9 8AD
4GE;@7EE 5A?4;@3F;A@E F:3FI;>> ;?B35F
F:7
3?AG@F A8
9AA6I;>> D75A9@;L76
F:7 D7BADF76 D7EG>FE ;@ F:7 B7D;A6
F:3F
3@ 35CG;E;F;A@
A55GDE
3@6 8GFGD7 D7BADF76 D7EG>FE -:7D7H;E76 ),

D7CG;D7E
3?A@9 AF:7DE F:3F 3 5:3@97 ;@ AI@7DE:;B ;@F7D7EFE
A8
3
EG4E;6;3DK F:3F 6A @AFD7EG>F ;@ >AEE
A8 5A@FDA> I;>>
47 355AG@F76 8AD
3E
3@ 7CG;FK FD3@E35F;A@ 3@6 I;>> :3H7@A;?B35F
A@
9AA6I;>> @ADI;>> ;F 9;H7 D;E7
FA
3
93;@ AD >AEE 4 >AEE7E ;@5GDD76
4KF:7 EG4E;6;3DK I;>> 47 3>>A53F76 47FI77@
F:7 5A@FDA>>;@9 3@6
@A@

58 5A@FDA>>;@9 ;@F7D7EFE BD7H;AGE>KD787DD76 FA
3EM?;@AD;FK ;@F7D7EFEN 7H7@ ;8
F:7 >AEE7E
7J5776 F:7 @A@ 5A@FDA>>;@9 7CG;FK ;@H7EF?7@F ;@
F:7 EG4E;6;3DK 3@6 5
A@ >AEE
A8 5A@FDA> A8
3
EG4E;6;3DK 3@KD7F3;@76 ;@F7D7EF I;>> 47 D7?73EGD76 FA83;DH3>G73@6F:;EI;>> ;?B35F
F:7
93;@ AD >AEE D75A9@;L76 A@ 6;EBAE3> -:7 5:3@97E ;@FDA6G576
4K
F:7
D7H;E76 ) +,  3@6 ),  ?GEF
47
3BB>;76
BDAEB75F;H7>K 3@6 I;>> 38875F 8GFGD7
35CG;E;F;A@E 3@6
FD3@E35F;A@EI;F: @A@ 5A@FDA>>;@9 ;@F7D7EFE

?7@6?7@F
FA), O ;@3@5;3> "@EFDG?7@FE
+75A9@;F;A@ 3@6
&73EGD7?7@F >;9;4>7
!76976 "F7?EP

?7@6?7@F
FA),I;>> 47
78875F;H7A@#G>K   
I:;5:
366D7EE7E
A@>KF:7 67E;9@3F;A@ A8
3
A@7 E;676 D;E=;@
3 :76976 ;F7?
3@6
F:7 67E;9@3F;A@
A8 ;@8>3F;A@
3E
3 :76976 D;E=
AD
BADF;A@ ;@ B3DF;5G>3DE;FG3F;A@E -:7 3?7@6?7@F 5>3D;8;7E
F:3F
3@ 7@F;FK ;E
B7D?;FF76 FA67E;9@3F73
BADF;A@ A8
F:7
83;DH3>G7 5:3@97E
AD 53E:8>AIH3D;34;>;FK
A8
3
8;@3@5;3> ;@EFDG?7@F
3E
3
:76976 ;F7?

,,+):/<+ /4

):;>;BB;@7
"@F7DBD7F3F;A@
" +"
 O9D77?7@F 8AD
A@EFDG5F;A@ A8
+73> EF3F7P

-:;E
"@F7DBD7F3F;A@ 5AH7DE 355AG@F;@9 8ADD7H7@G7
3@6 3EEA5;3F76
7JB7@E7E 4K
7@F;F;7E
F:3F
G@67DF3=7 F:7 5A@EFDG5F;A@ A8 D73> 7EF3F76;D75F>K
ADF:DAG9: EG45A@FD35FADE -:;E
"@F7DBD7F3F;A@ D7CG;D7EF:3F D7H7@G7A@5A@EFDG5F;A@
A8 D73>
7EF3F747D75A9@;L76 A@>K
GBA@ 5A?B>7F;A@
7J57BF
I:7@ EG5: 5A@FD35F
CG3>;8;7E
3E 5A@EFDG5F;A@ 5A@FD35FFA47
355AG@F76 8AD
G@67D ),  A@EFDG5F;A@ A@FD35FE AD ;@HA>H7ED7@67D;@9
A8 E7DH;57E ;@ I:;5: 53E7 D7H7@G7;ED75A9@;L76
43E76 A@ EF397 A8 5A?B>7F;A@ A@FD35FE ;@HA>H;@9 BDAH;E;A@
A8 E7DH;57EI;F: F:7 5A@EFDG5F;A@ ?3F7D;3>E
3@6 I:7D7
F:7 D;E=E
3@6
D7I3D6
A8 AI@7DE:;B
3D7
FD3@E87DD76
FA
F:7
4GK7D A@ 3 5A@F;@GAGE
43E;E I;>> 3>EA
47
355AG@F76 8AD 43E76 A@ EF397
A8 5A?B>7F;A@

/A>G@F3DK :3@97 0;F:
+7EB75F
FA 55AG@F;@9 8AD
&;@AD;FK "@F7D7EFE "@
  ;DEF
!A>6;@9E DAGB 5:3@976 ;FE ?7F:A6 A8
355AG@F;@9 8AD
35CG;E;F;A@A8?;@AD;FK ;@F7D7EFE 8DA? F:7 B3D7@F 7@F;FK 5A@57BF ?7F:A6
FA F:7 7@F;FK 5A@57BF ?7F:A6
FA
47 3>;9@76 I;F: F:7
BD787DD76 ?7F:A6 A8 355AG@F;@9 3E
BDAH;676 8ADG@67DF:7 +7H;E76 ) +,
 OGE;@7EE
A?4;@3F;A@ P .@67DF:;E ?7F:A6 F:7 6;887D7@57
47FI77@ F:7 83;DH3>G7A8
F:7
5A@E;67D3F;A@ 3@6
F:7 @7F 4AA= H3>G7
A8
F:7
@7F
3EE7FE
35CG;D76 ;E BD7E7@F76
3E 3@ 7CG;FK 36K 3@6
BD;ADK73DEN 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
:3H7 477@ D7EF3F76 -:7 5:3@97 D7EG>F76 ;@ F:7 D7H7DE3>
A8
F:7 93;@ A@ 6;>GF;A@A8)  ?;>>;A@ D75A9@;L76 ;@ F:7   5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 ,G5: 3?AG@FD7>3F7E FA
F:7 6;>GF;A@
A8 ;DEF
!A>6;@9E DAGBNE ;@F7D7EF ;@ ;DEF 7@ DAGB
3E
3
D7EG>F A8
F:7
>3FF7DNE
BG4>;5
A887D;@9 A8 ;FE 5A??A@ E:3D7E -:;E
I3ED75AD676
3E
3@
36;63F76 43>3@57 E:77F

-:7 8A>>AI;@9 ;@HA>H7?;@AD;FK ;@F7D7EFE
FD3@E35F;A@E
355AG@F76 43E76
A@ F:7 8AD79A;@9

(@ #3@G3DK    )! 5A?B>7F76 F:7
35CG;E;F;A@
A8
.@;A@ 7@AE3"@F7D@35;A@3> ,  NE   AI@7DE:;B;@ ).8AD?7D>K ;DEF ):;>;BB;@7 .@;A@ 7@AE3 "@5 8AD )  ?;>>;A@ ., ?;>>;A@ -:7
7J57EE
A8
F:7
83;DH3>G7
A8
F:7
5A@E;67D3F;A@
3@6
F:7
@7F
4AA= H3>G7
A8
F:7 @7F 3EE7FE
A8 ).
A8 )  ?;>>;A@ I3ED75AD676 3E
B3DF
A8
7CG;FK D7E7DH7 355AG@F I:;5: ;E
3
5A?BA@7@F
A8
7CG;FK

E
3
D7EG>F
A8
F:7 E3>7
A8
3   ;@F7D7EF A8 ;DEF 7@ ;@ !K6DA
FA  3@
78875F;H7;@F7D7EF
A8  
A8
F:7 )3D7@F A?B3@KI3EEA>6 3@ 7CG;FK D7E7DH73?AG@F;@9
FA) ?;>>;A@ I3ED75AD676 3E 5A?BA@7@F
A8
7CG;FK
355AG@F ;@ F:7 5A@EA>;63F76
43>3@57 E:77F

GE;@7EE
A?4;@3F;A@ 3@6 AA6I;>> GE;@7EE 5A?4;@3F;A@E
3D7 355AG@F76 8AD
GE;@9
F:7
BGD5:3E7
355AG@F;@9 ?7F:A6 -:;E ;@HA>H7E D75A9@;L;@9 ;67@F;8;34>7
3EE7FE ;@5>G6;@9 BD7H;AGE>KG@D75A9@;L76 ;@F3@9;4>7
3EE7FE
3@6
>;34;>;F;7E ;@5>G6;@9 5A@F;@97@F >;34;>;F;7E
4GF 7J5>G6;@9 8GFGD7 D7EFDG5FGD;@9 A8
F:7
35CG;D76 4GE;@7EE
3F
83;DH3>G7 I;F:3@K 6;887D7@57 D75A9@;L76
3E
9AA6I;>>

AA6I;>>
35CG;D76 ;@
3
4GE;@7EE 5A?4;@3F;A@ ;E ;@;F;3>>K ?73EGD76
3F
5AEF
47;@9
F:7
7J57EE
A8
F:7
5AEF
A8 F:7 4GE;@7EE 5A?4;@3F;A@ AH7D ;DEF !A>6;@9E DAGBNE ;@F7D7EF ;@
F:7 @7F 83;DH3>G7A8
F:7
35CG;D77NE ;67@F;8;34>7
3EE7FE >;34;>;F;7E
3@6
5A@F;@97@F >;34;>;F;7E "8
F:7
5AEF
A8
35CG;E;F;A@ ;E >7EE
F:3@
F:7 83;DH3>G7
A8 F:7 @7F
3EE7FE
A8
F:7 EG4E;6;3DK 35CG;D76 F:7 6;887D7@57 ;ED75A9@;L76 6;D75F>K ;@ F:7 5A@EA>;63F76

59 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

EF3F7?7@F
A8 ;@5A?7 A>>AI;@9 ;@;F;3> D75A9@;F;A@
9AA6I;>> ;E ?73EGD76
3F
5AEF >7EE
3@K
355G?G>3F76 ;?B3;D?7@F >AEE7E AD ;?B3;D?7@F
F7EF;@9 9AA6I;>> 35CG;D76 ;@
34GE;@7EE 5A?4;@3F;A@ ;E
3>>A53F76 8DA? F:7
35CG;E;F;A@ 63F7 FA 735:
A8 ;DEF
!A>6;@9E DAGBNE 53E: 97@7D3F;@9 G@;FE
AD 9DAGBA853E: 97@7D3F;@9 G@;FE F:3F 3D7
7JB75F76 FA 47@78;F 8DA?
F:7
EK@7D9;7E
A8
F:7
5A?4;@3F;A@ ;DD7EB75F;H7A8I:7F:7D
AF:7D 3EE7FE
AD >;34;>;F;7E
A8 ;DEF
!A>6;@9E DAGB3D7
3EE;9@76
FA
F:AE7
G@;FE
AD
9DAGBE A8
G@;FE 35: G@;F
AD 9DAGBA8
G@;FE FA I:;5: 9AA6I;>> ;E
3>>A53F76 3 D7BD7E7@FE
F:7 >AI7EF >7H7> I;F:;@ ;DEF
!A>6;@9E DAGB3F I:;5: 9AA6I;>> ;E ?A@;FAD76 8AD ;@F7D@3> ?3@397?7@F BGDBAE7E
3@6 4 ;E
@AF >3D97D
F:3@
3
E79?7@F 43E76 A@ F:7
BD;?3DK
ADE75A@63DK D7BADF;@9 8AD?3F
67F7D?;@76 ;@
355AD63@57 I;F:),
 O,79?7@F +7BADF;@9 P

0:7D7
9AA6I;>> 8AD?E
B3DF
A8
3
53E: 97@7D3F;@9 G@;F 3@6 B3DF
A8
F:7 AB7D3F;A@ I;F:;@ F:3F
G@;F ;E
6;EBAE76 A8
F:7
9AA6I;>>
3EEA5;3F76 I;F: F:7 AB7D3F;A@ 6;EBAE76
A8 ;E ;@5>G676 ;@
F:7 53DDK;@9
3?AG@F
A8
F:7
AB7D3F;A@ I:7@ 67F7D?;@;@9
F:7
93;@ AD >AEE A@ 6;EBAE3>
A8
F:7
AB7D3F;A@ AA6I;>> 6;EBAE76
A8 ;@
F:;E 5;D5G?EF3@57 ;E ?73EGD76
43E76 A@ F:7 D7>3F;H7 H3>G7E
A8
F:7
AB7D3F;A@ 6;EBAE76
3@6 F:7 BADF;A@ A8
F:7
53E: 97@7D3F;@9 G@;FD7F3;@76

"8
F:7
;@;F;3>
355AG@F;@9 8AD 3
4GE;@7EE 5A?4;@3F;A@ 53@ A@>K 47 67F7D?;@76 A@
3BDAH;E;A@3> 43E;E 4KF:7 7@6 A8
F:7
B7D;A6 ;@ I:;5: F:7 5A?4;@3F;A@ ;E
78875F76
4753GE77;F:7D
F:7 83;DH3>G7E
FA
47
3EE;9@76 FA F:7 35CG;D77NE ;67@F;8;34>7
3EE7FE >;34;>;F;7E AD 5A@F;@97@F >;34;>;F;7E
ADF:7 5AEF A8
F:7
5A?4;@3F;A@ 53@ 47 67F7D?;@76 A@>K
BDAH;E;A@3>>K ;DEF
!A>6;@9E DAGB
355AG@FE 8AD
F:7
5A?4;@3F;A@ GE;@9 F:AE7BDAH;E;A@3> H3>G7E ;DEF
!A>6;@9E DAGB D75A9@;L7E 3@K 36 H3>G7E
3E
3
D7EG>F
A8 5A?B>7F;@9 F:7 ;@;F;3> 355AG@F;@9 I;F:;@?A@F:E 8DA?
F:7 35CG;E;F;A@ 63F7 -:7 8A>>AI;@9 36

3 -:7 53DDK;@9 3?AG@F
A8
3@
;67@F;8;34>7
3EE7F >;34;>;FK
AD 5A@F;@97@F >;34;>;FK F:3F ;ED75A9@;L76
AD 36F
A8 5A?B>7F;@9
F:7 ;@;F;3>
355AG@F;@9 E:3>> 47 53>5G>3F76 3E ;8 ;FE 83;DH3>G73F
F:7 35CG;E;F;A@ 63F7 :36
477@ D75A9@;L76 8DA?
F:3F
63F7

4 AA6I;>>
AD 3@K 93;@ D75A9@;L76 E:3>> 47
36
FA F:7 36G7
3F
F:7
35CG;E;F;A@
63F7
A8
F:7 ;67@F;8;34>7
3EE7F >;34;>;FK AD 5A@F;@97@F >;34;>;FK 47;@9 D75A9@;L76 AD
36

5 A?B3D3F;H7 ;@8AD?3F;A@
BD7E7@F76 8AD
F:7
B7D;A6E
478AD7
F:7 ;@;F;3>
355AG@F;@9 8AD
F:7
5A?4;@3F;A@ ;E 5A?B>7F76 E:3>> 47
BD7E7@F76
3E ;8
F:7
;@;F;3>
355AG@F;@9
:36
477@ 5A?B>7F76 8DA?
F:7 35CG;E;F;A@ 63F7 -:;E ;@5>G67E 3@K
366;F;A@3> 67BD75;3F;A@
3?ADF;L3F;A@
AD
AF:7D
BDA8;F AD >AEE
78875FD75A9@;L76 3E
3
D7EG>F
A8 5A?B>7F;@9 F:7 ;@;F;3>
355AG@F;@9

6 0:7D7
9AA6I;>> 8AD?E
B3DF
A8
3
53E: 97@7D3F;@9 G@;F AD
9DAGBA853E: 97@7D3F;@9 G@;FE3@6B3DF
A8 F:7 AB7D3F;A@ I;F:;@
F:3FG@;F ;E 6;EBAE76 A8
F:7 9AA6I;>> 3EEA5;3F76 I;F: F:7 AB7D3F;A@
6;EBAE76 A8 ;E ;@5>G676 ;@
F:7 53DDK;@9 3?AG@F A8
F:7
AB7D3F;A@ ;@
67F7D?;@;@9
F:7
93;@ AD >AEE
A@
6;EBAE3> A8
F:7
AB7D3F;A@ AA6I;>> 6;EBAE76
A8 ;@
F:;E 5;D5G?EF3@57 ;E ?73EGD76
43E76
A@
F:7 D7>3F;H7 H3>G7E
A8
F:7 AB7D3F;A@ 6;EBAE76 A8
3@6
F:7 BADF;A@
A8
F:7
53E: 97@7D3F;@9
G@;FD7F3;@76

0:7@ EG4E;6;3D;7E
3D7 EA>6
F:7 6;887D7@57
47FI77@
F:7 E7>>;@9
BD;57
3@6
F:7 @7F 3EE7FE
B>GE 5G?G>3F;H7 FD3@E>3F;A@
36> ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

-:7
9AA6I;>> 8DA? ;@H7EF?7@FE ;@ EG4E;6;3D;7E ;E ;@5>G676
3E 3
@A@5GDD7@F
3EE7F ;F7? ;@
F:7
5A@EA>;63F76 43>3@57 E:77F -:7 9AA6I;>> A@ ;@H7EF?7@F ;@ 3@
3EEA5;3F7;E ;@5>G676 ;@ F:7 53DDK;@9
3?AG@F A8
F:7
D7>3F76 ;@H7EF?7@F

"@F7D7EF ;@ 3 #A;@F /7@FGD7 -:7 ;DEF
!A>6;@9E DAGB:3E
3@ ;@F7D7EF ;@ 3 K 5A@FDA>>76 7@F;FK I:7D74K
F:7 H7@FGD7DE
:3H735A@FD35FG3>
3DD3@97?7@F
F:3F
7EF34>;E:7E AH7D
F:7 75A@A?;5
35F;H;F;7E A8
F:7
7@F;FK -:7 ;DEF
!A>6;@9E DAGB D75A9@;L7E ;FE ;@F7D7EF ;@ F:7 ;63F;A@ ;DEF !A>6;@9E DAGB ;@5>G67EE7B3D3F7>;@7;F7?E 8AD ;FE E:3D7
A8
F:7
3EE7FE >;34;>;F;7E ;@5A?7
3@6
7JB7@E7E
A8
F:7 K 5A@FDA>>76 7@F;F;7E ;@ ;FE 8;@3@5;3> EF3F7?7@FE -:7 8;@3@5;3> EF3F7?7@FE A8
F:7
;5;7E ;@ >;@7 I;F: F:AE7
A8
F:7
9DAGB

60 66;@9E DAGBNE 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
FA7>;?;@3F7 F:7 ;DEF
!A>6;@9E DAGBNE E:3D7
A8 ;@FD39DAGB
43>3@57E ;@5A?7
3@6
7JB7@E7E 3@6
G@D73>;L76 93;@E
3@6 >AEE7E
A@
FD3@E35F;A@E
47FI77@ F:7 ;DEF
!A>6;@9E DAGB 3@6 ;FE K 5A@FDA>>76
7@F;FK %AEE7E
A@
FD3@E35F;A@E
3D7 D75A9@;L76 ;??76;3F7>K ;8
F:7 >AEE
BDAH;67E 7H;67@57
A8
3
D76G5F;A@ ;@ F:7 @7FD73>;L34>7 H3>G7A85GDD7@F
3EE7FE
AD 3@ ;?B3;D?7@F >AEE -:7K 5A@EA>;63F76 G@F;> F:7 63F7A@I:;5: F:7 ;DEF
!A>6;@9E DAGB573E7E
FA
:3H7 AH7DF:7

"@H7EF?7@FE ;@ EEA5;3F7E -:7 ;DEF
!A>6;@9E DAGBNE ;@H7EF?7@FE ;@
3EEA5;3F7E 3D7
355AG@F76 8AD
G@67D
F:7 7CG;FK ?7F:A6 @ 3EEA5;3F7;E
3@ 7@F;FK AH7DI:;5: F:7 ;DEF
!A>6;@9E DAGB:3EE;9@;8;53@F ;@8>G7@57
3@6 I:;5: ;E @7;F:7D 3 EG4E;6;3DK @AD
3
>K
355A?B3@K;@9 3 E:3D7:A>6;@9
A8
47FI77@   3@6  
A8
F:7 HAF;@9 D;9:FE -:7;@H7EF?7@FE ;@ 3EEA5;3F7E 3D753DD;76 ;@
F:7 5A@EA>;63F76
43>3@57 E:77F 3F 5AEF B>GE BAEF 35CG;E;F;A@ 5:3@97E ;@
F:7
;DEF
!A>6;@9E DAGBNE E:3D7
A8
@7F 3EE7FE
A8
F:7
3EEA5;3F7E ;@5>G6;@9 E:3D7;@5G?G>3F;H7
FD3@E>3F;A@ 367EE
3@K ;?B3;D?7@F ;@ H3>G7

-:7 ;DEF
!A>6;@9E DAGBNE E:3D7;@;FE
3EEA5;3F7NE
BAEF 35CG;E;F;A@
BDA8;FE
AD >AEE7E ;ED75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
3@6
;FE E:3D7
A8
BAEF 35CG;E;F;A@ ?AH7?7@FE ;@
F:7
3EEA5;3F7NE 7CG;FK D7E7DH7E ;ED75A9@;L76 6;D75F>K ;@ 7CG;FK -:7 5G?G>3F;H7BAEF 35CG;E;F;A@ ?AH7?7@FE
3D736

0:7@
F:7
;DEF !A>6;@9E DAGBNE E:3D7;@@7F >AEE7E
A8
3@
3EEA5;3F77CG3>E
AD 7J5776E ;FE ;@F7D7EF ;@
F:7 3EEA5;3F7 ;@5>G6;@9
3@K AF:7D
G@E75GD76 D757;H34>7E
F:7
;DEF
!A>6;@9E DAGB6A7E
@AFD75A9@;L78GDF:7D >AEE7E
G@>7EE ;F :3E ;@5GDD76 A4>;93F;A@E
AD ?367
B3K?7@FE
A@
47:3>8
A8
3@
3EEA5;3F7

.@D73>;L76
93;@E
3D;E;@9 8DA? FD3@E35F;A@EI;F:;FE
3EEA5;3F7E
3D77>;?;@3F76 FA F:7 7JF7@F A8
F:7
;DEF !A>6;@9E DAGBNE ;@F7D7EF ;@
F:7
3EEA5;3F7 .@D73>;L76 >AEE7E
3D77>;?;@3F76 E;?;>3D>K 4GF A@>KFA F:7 7JF7@FF:3FF:7D7;E
@A 7H;67@57
A8 ;?B3;D?7@F
A8
F:7
3EE7F
FD3@E87DD76 -:7 ;DEF
!A>6;@9E DAGBNE ;@H7EF?7@FE ;@
3EEA5;3F7E ;@5>G67
9AA6I;>> A@
35CG;E;F;A@ I:;5: ;E
FD73F76 ;@ 355AD63@57 I;F: F:7 355AG@F;@9 BA>;5K 8AD 9AA6I;>>

8F7D
3BB>;53F;A@
A8
7CG;FK ?7F:A6 ;DEF
!A>6;@9E DAGB67F7D?;@7E
I:7F:7D ;F ;E @757EE3DK
FA D75A9@;L7 3@K ;?B3;D?7@F >AEE7E
A@ ;FE ;@H7EF?7@F ;@ ;FE
3EEA5;3F7E ;DEF
!A>6;@9E DAGB67F7D?;@7E
3F
735: 43>3@57 E:77F 63F7 I:7F:7D
F:7D7;E
3@K A4<75F;H77H;67@57
F:3FF:7 ;@H7EF?7@F ;@ 3EEA5;3F7;E ;?B3;D76 "8
F:;E ;E
F:7 53E7 ;DEF !A>6;@9E DAGB53>5G>3F7E
F:7 3?AG@F
A8 ;?B3;D?7@F
3E 47;@9
F:7 6;887D7@57 47FI77@ F:7 83;DH3>G7
A8
F:7
3EEA5;3F7
3@6
F:7 53DDK;@9 H3>G7
A8 ;@H7EF?7@FE

-:7 D7BADF;@9 63F7E
A8
F:7 3EEA5;3F7E 3@6 ;DEF
!A>6;@9E DAGB
3D7;67@F;53> 3@6 F:7
3EEA5;3F7EN 355AG@F;@9 BA>;5;7E 5A@8AD?
FA
F:AE7
GE76 4K ;DEF
!A>6;@9E DAGB8AD >;=7
FD3@E35F;A@E 3@6 7H7@FE ;@ E;?;>3D 5;D5G?EF3@57E

"@
;@EF3@57EI:7D7 EG5:
BA>;5;7E
6;887D
F:7
8;@3@5;3> ;@8AD?3F;A@
A8 EG5:
3EEA5;3F7E 3D7
366;@9E DAGB D75A9@;L7E ;FE E:3D7;@F:7 5:3@97 ;@ EG5:
3EEA5;3F7EN @7F
3EE7FE

;@3@5;3>
"@EFDG?7@FE

':+ 5,
"+)5-4/:/54 ;@3@5;3> ;@EFDG?7@FE
I;F:;@ F:7 E5AB7
A8 ),  3D7 D75A9@;L76 ;@
F:7 5A@EA>;63F76 43>3@57 E:77FI:7@
F:7 ;DEF
!A>6;@9E DAGB 475A?7E
3
B3DFK
FA F:7 5A@FD35FG3> BDAH;E;A@E
A8
F:7
;@EFDG?7@F )GD5:3E7E
ADE3>7E
A8 8;@3@5;3>
3EE7FE
F:3FD7CG;D7
67>;H7DK
A8
3EE7FE I;F:;@ F:7 F;?7 8D3?7 7EF34>;E:76 4KD79G>3F;A@
AD 5A@H7@F;A@ ;@ F:7 ?3D=7FB>357
3D7 D75A9@;L76
GE;@9
F:7 E7FF>7?7@F 355AG@F;@9 63F7

7D;H3F;H7E
3D7 D75A9@;L76
A@ FD367 63F743E;E

4/:/'2
"+)5-4/:/54 5, /4'4)/'2 49:8;3+4:9 >> 8;@3@5;3> ;@EFDG?7@FE
3D7;@;F;3>>KD75A9@;L76 3F 83;DH3>G7 -:7 ;@;F;3> ?73EGD7?7@F
A8 8;@3@5;3> ;@EFDG?7@FE ;@5>G67E
FD3@E35F;A@ 5AEFE
7J57BF 8AD 8;@3@5;3>
3EE7FE
3F
/)% -:7 ;DEF
!A>6;@9E DAGB5>3EE;8;7E ;FE 8;@3@5;3>
3EE7FE ;@
F:7 8A>>AI;@9 53F79AD;7E 8;@3@5;3>
3EE7FE 3F /)% :7>6 FA ?3FGD;FK !-& ;@H7EF?7@FE >A3@E 3@6 D757;H34>7E
AD  , 8;@3@5;3>
3EE7FE ;@3@5;3> >;34;>;F;7E
3D75>3EE;8;76
3E 7;F:7D 8;@3@5;3> >;34;>;F;7E 3F /)%
AD
AF:7D 8;@3@5;3> >;34;>;F;7E
3F
3?ADF;L76 5AEF -:7 5>3EE;8;53F;A@ 67B7@6E A@
F:7 BGDBAE78ADI:;5:
F:7 ;@H7EF?7@FE
I7D7
35CG;D76
3@6 I:7F:7DF:7K
3D7 CGAF76 ;@ 3@
35F;H7?3D=7F -:7 ;DEF
!A>6;@9E DAGB67F7D?;@7E
F:7
5>3EE;8;53F;A@
A8 8;@3@5;3>
3EE7FE A@ ;@;F;3> D75A9@;F;A@ 3@6 I:7D7
3>>AI76 3@6 3BBDABD;3F7 D7 7H3>G3F7E
F:;E
67E;9@3F;A@
3F 7H7DK D7BADF;@9 63F7

61 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

+:+83/4':/54
5, '/8 &'2;+ -:7 83;DH3>G7
A8 8;@3@5;3> ;@EFDG?7@FE
FD3676 ;@ 35F;H7?3D=7FE
3F
F:7
43>3@57 E:77F 63F7;E 43E76
A@ F:7;D
CGAF76 ?3D=7F
BD;57
AD
673>7D BD;57 CGAF3F;A@E 4;6
BD;57 8AD >A@9 BAE;F;A@E 3@6 3E=
BD;57 8ADE:ADF
BAE;F;A@E I;F:AGF
3@K
676G5F;A@ 8AD
FD3@E35F;A@ 5AEFE 0:7@ 5GDD7@F
4;6 3@6 3E=
BD;57E
3D7
@AF
3H3;>34>7
F:7
BD;57
A8
F:7
?AEF D757@F
FD3@E35F;A@
BDAH;67E 7H;67@57
A8
F:7
5GDD7@F 83;DH3>G73E >A@9 3E
F:7D7:3E
@AF
477@ 3 E;9@;8;53@F 5:3@97 ;@
75A@A?;5 5;D5G?EF3@57EE;@57 F:7 F;?7
A8 F:7
FD3@E35F;A@

AD
3>>
AF:7D 8;@3@5;3> ;@EFDG?7@FE
@AF
>;EF76 ;@ 3@
35F;H7?3D=7F
F:7
83;DH3>G7;E
67F7D?;@76 4K
GE;@9 3BBDABD;3F7 H3>G3F;A@
F75:@;CG7E /3>G3F;A@ F75:@;CG7E ;@5>G67 @7F
BD7E7@FH3>G7 F75:@;CG7E 5A?B3D;EA@ FA E;?;>3D ;@EFDG?7@FE 8AD
I:;5: ?3D=7F
A4E7DH34>7
BD;57E
7J;EF ABF;A@
BD;5;@9 ?A67>E
3@6
AF:7DD7>7H3@F AD
3BB>;534>7 H3>G3F;A@ ?A67>E

A'? B !85,/: 0:7D7
F:7
FD3@E35F;A@ ;@
3 @A@ 35F;H7?3D=7F ;E
6;887D7@F 8DA?
F:7
83;DH3>G7
A8
AF:7D A4E7DH34>7 5GDD7@F ?3D=7FFD3@E35F;A@E ;@ F:7 E3?7 ;@EFDG?7@F
AD
43E76 A@ 3 H3>G3F;A@
F75:@;CG7 I:AE7 H3D;34>7E ;@5>G67 A@>K 63F3
8DA?
A4E7DH34>7 ?3D=7F
F:7
;DEF
!A>6;@9E DAGB D75A9@;L7EF:7 6;887D7@57 47FI77@ F:7
FD3@E35F;A@
BD;57
3@6
83;DH3>G7O3K P BDA8;F;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"@
53E7EI:7D7 F:7D7 I3E
GE7
A8
63F3 I:;5: ;E @AF A4E7DH34>7
F:7
6;887D7@57
47FI77@
F:7
FD3@E35F;A@
BD;57 3@6 ?A67> H3>G7;E A@>KD75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 I:7@ F:7 ;@BGFE
475A?7 A4E7DH34>7
ADI:7@
F:7 ;@EFDG?7@F ;E
67D75A9@;L76 AD
735:
FD3@E35F;A@ F:7 ;DEF
!A>6;@9E DAGB 67F7D?;@7E
F:7 3BBDABD;3F7?7F:A6
A8 D75A9@;L;@9 F:7 O3K 
BDA8;FP
3?AG@F

/4'4)/'2 99+:9
58 /'(/2/:/+9
':
&! ;@3@5;3> 3EE7FE
AD >;34;>;F;7E
3F
/)% ;@5>G67 8;@3@5;3>
3EE7FE
3@6 >;34;>;F;7E :7>6 8AD
FD36;@9 BGDBAE7E
3@6
8;@3@5;3> 3EE7FE
3@6 >;34;>;F;7E
67E;9@3F76
GBA@ ;@;F;3> D75A9@;F;A@
3E 3F /)%

;@3@5;3>
3EE7FE
3@6 >;34;>;F;7E
3D75>3EE;8;76
3E :7>6 8AD
FD36;@9 ;8
F:7K 3D735CG;D76 8AD
F:7
BGDBAE7
A8 E7>>;@9 3@6 D7BGD5:3E;@9 ;@ F:7 @73D
F7D?

7D;H3F;H7E
3D73>EA 5>3EE;8;76 G@67D 8;@3@5;3>
3EE7FE 3@6 >;34;>;F;7E
3F /)% G@>7EE
F:7K
3D767E;9@3F76 3E :769;@9 ;@EFDG?7@FE ;@
3@ 78875F;H7
:7697

;@3@5;3>
3EE7FE
AD >;34;>;F;7E ?3K 47 67E;9@3F76
4K ?3@397?7@F A@ ;@;F;3> D75A9@;F;A@ 3E
3F
/)% I:7@ F:7 8A>>AI;@9 5D;F7D;3
3D7?7F

-:7
67E;9@3F;A@ 7>;?;@3F7E ADE;9@;8;53@F>KD76G57E
F:7 ;@5A@E;EF7@F
FD73F?7@F
F:3FIAG>6
AF:7DI;E7 3D;E78DA? ?73EGD;@9
F:7 3EE7FE
AD >;34;>;F;7E
ADD75A9@;L;@9
93;@E
AD >AEE7E
A@ F:7?
A@
3
6;887D7@F 43E;E

-:7
3EE7FE
AD >;34;>;F;7E 3D7B3DF
A8
3
9DAGB A8 8;@3@5;3> 3EE7FE >;34;>;F;7E AD
4AF: I:;5:
3D7 ?3@3976 3@6 F:7;D
B7D8AD?3@57
7H3>G3F76
A@
3
83;DH3>G743E;E ;@
355AD63@57 I;F:36A5G?7@F76 D;E= ?3@397?7@F
AD ;@H7EF?7@FEFD3F79K
AD

-:7 8;@3@5;3> ;@EFDG?7@F 5A@F3;@E
3@ 7?476676 67D;H3F;H7 G@>7EE
F:7
7?476676 67D;H3F;H76A7E
@AF E;9@;8;53@F>K ?A6;8K
F:7 53E:8>AIE
AD ;F ;E 5>73D I;F:>;FF>7
AD @A 3@3>KE;E
F:3F ;FIAG>6 @AF 47 E7B3D3F7>K D75AD676

;@3@5;3>
3EE7FE
3@6 >;34;>;F;7E
3F
/)% 3D7 D75AD676 ;@ F:7 5A@EA>;63F76 43>3@57 E:77F 3F 83;DH3>G7 ,G4E7CG7@F 5:3@97E ;@ 83;DH3>G7
3D7 D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"@F7D7EF 73D@76
AD ;@5GDD76 ;ED75AD676 ;@ ;@F7D7EF ;@5A?7
AD
7JB7@E7 D7EB75F;H7>K I:;>7 6;H;67@6 ;@5A?7 ;E D75AD676 ;@ OAF:7D ;@5A?7P
I:7@ F:7 D;9:F
FA
D757;H7B3K?7@F :3E 477@
7EF34>;E:76

>3EE;8;76 G@67D 8;@3@5;3> 3EE7FE
3F
/)%
3D7
F:7 ; 8AD7;9@ 5GDD7@5K 8ADI3D65A@FD35F ;; D3@97 4A@GE 8ADI3D65A@FD35F
7@F7D76 ;@FA4K  ;@   ;;;
F:7 7?476676 8AD7;9@ 5GDD7@5K ABF;A@E A@
F:7 5A@FD35F I;F: / -! !2+( ?4! !K6DANE 5A@FD35FAD 8AD
F:7
)3@F343@93@ +78GD4;E:?7@F
3@6
.B9D367 )DA<75F )+.)
3@6 ;H
F:7
BD7B3K?7@F ABF;A@
A@ F:7 >A3@ A8  E77 'AF7E   3@6 >

-:7 )3D7@F A?B3@KNE ;@H7EF?7@F ;@ E:3D7E
A8 EFA5= A8 ,;+ -75:@A>A9K !A>6;@9E
"@5 ,;+  ;@5>G676 ;@ OAF:7D 5GDD7@F 3EE7FE P ;E 3>EA67E;9@3F76
3E 8;@3@5;3>
3EE7FE
3F
/)%

62 >3EE;8;76 G@67D 8;@3@5;3> >;34;>;F;7E 3F /)% 3D7
F:7 ?G>F;B>7
7?476676 67D;H3F;H7E
A@
F:7 ;DEF 7@ DAGBNE 5A@H7DF;4>7 4A@6E
3@6
8AD7;9@ 5GDD7@5K 8ADI3D65A@FD35FE E77 'AF7  3E
A8
757?47D

 

;DEF
!A>6;@9E DAGBNE
67D;H3F;H7 8;@3@5;3> ;@EFDG?7@FE
I:;5: I7D7@AF 67E;9@3F76
3E
:769;@9 ;@EFDG?7@F 3D75>3EE;8;76
3E 8;@3@5;3> 3EE7FE
3@6
>;34;>;F;7E
3F /)%
3E
A8
757?47D

  E77
'AF7E
  3@6 

$
4<+9:3+4:9 !-& ;@H7EF?7@FE
3D7
CGAF76
@A@ 67D;H3F;H7 8;@3@5;3>
3EE7FE I;F:8;J76
AD 67F7D?;@34>7 B3K?7@FE
3@6 8;J76 ?3FGD;F;7E 8ADI:;5:
F:7 ;DEF !A>6;@9E DAGBNE ?3@397?7@F
:3E
F:7
BAE;F;H7;@F7@F;A@ 3@6 34;>;FK FA :A>6
FA
?3FGD;FK 0:7D7
F:7
;DEF
!A>6;@9E DAGB E7>>E
AF:7D
F:3@ 3@ ;@E;9@;8;53@F
3?AG@F
A8 !-& ;@H7EF?7@FE
F:7
7@F;D753F79ADK ;E
677?76
F3;@F76 3@6 D75>3EE;8;76
3E  ,
8;@3@5;3>
3EE7FE 8F7D ;@;F;3> ?73EGD7?7@F
F:7E7;@H7EF?7@FE
3D7 EG4E7CG7@F>K ?73EGD76 3F
3?ADF;L76 5AEF
GE;@9 F:7 78875F;H7 ;@F7D7EF ?7F:A6 >7EE ;?B3;D?7@F ;@ H3>G7 ?ADF;L76 5AEF ;E 53>5G>3F76 4KF3=;@9 ;@FA
355AG@F 3@K 6;E5AG@F
AD
BD7?;G?
A@
35CG;E;F;A@ 3@6 877E
F:3F
3D73@;@F79D3> B3DF
A8
F:7
78875F;H7;@F7D7EF D3F7 3;@E 3@6 >AEE7E
3D7 D75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
I:7@
F:7
!-& ;@H7EF?7@FE
3D7 67D75A9@;L76
3@6 ;?B3;D76
3EI7>> 3E
F:DAG9: F:7 3?ADF;L3F;A@ BDA57EE -:7
78875FE
A8 D7EF3F7?7@F
A@
8AD7;9@ 5GDD7@5K 67@A?;@3F76
!-& ;@H7EF?7@FE
3D73>EA D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

-:7 ;DEF
!A>6;@9E DAGB:3E
@A
!-& ;@H7EF?7@FE
3E
A8
757?47D

  3@6  

5'49 '4* "+)+/<'(2+9 %A3@E 3@6 D757;H34>7E
3D7 8;@3@5;3> 3EE7FE
I;F:8;J76
AD 67F7D?;@34>7 B3K?7@FE 3@6 8;J76 ?3FGD;F;7E
3@6
F:3F
3D7@AFCGAF76 ;@ 3@ 35F;H7?3D=7F -:7K
3D7@AF 7@F7D76 ;@FA I;F:
F:7 ;@F7@F;A@A8;??76;3F7
ADE:ADF F7D? D7E3>7
3@6
3D7@AF 5>3EE;8;76 AD
67E;9@3F76
3E  , 8;@3@5;3>
3EE7FE
AD 8;@3@5;3>
3EE7FE
3F /)%
%A3@E 3@6 D757;H34>7E
3D7;@5>G676;@5GDD7@F 3EE7FE ;8 ?3FGD;FK ;EI;F:;@  ?A@F:E
8DA?
F:7
43>3@57 E:77F 63F7 (F:7DI;E7 F:7E7
3D7 5>3EE;8;76
3E @A@ 5GDD7@F
3EE7FE

8F7D ;@;F;3> ?73EGD7?7@F
F:7
>A3@E 3@6 D757;H34>7E
3D7 EG4E7CG7@F>K ?73EGD76 3F
3?ADF;L76 5AEF
GE;@9 F:7
78875F;H7;@F7D7EF ?7F:A6 >7EE
3>>AI3@57 8AD ;?B3;D?7@F ?ADF;L76 5AEF ;E 53>5G>3F76 4KF3=;@9 ;@FA 355AG@F 3@K 6;E5AG@F
AD BD7?;G?
A@
35CG;E;F;A@ 3@6 877E
F:3F
3D73@;@F79D3>
B3DF
A8
F:7
78875F;H7;@F7D7EF D3F7 -:7
3?ADF;L3F;A@ ;E ;@5>G676 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 -:7 >AEE7E
3D;E;@9 8DA? ;?B3;D?7@F
A8 EG5: >A3@E 3@6 D757;H34>7E
3D73>EA D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

>3EE;8;76 G@67D >A3@E 3@6 D757;H34>7E
3D753E:3@653E:
7CG;H3>7@FE E:ADF F7D?;@H7EF?7@FE
FD367 3@6 AF:7DD757;H34>7E 5A@57EE;A@ D757;H34>7E D757;H34>7 8DA?
&3@;>3 >75FD;5
A?B3@K &+%( 8AD 3@@G3> 678;5;7@5K AF:7D >A@9 F7D? D757;H34>7E D7EFD;5F76 53E: 67BAE;FE ;@5>G676 ;@ O(F:7D @A@5GDD7@F 3EE7FEP
355AG@F
3@6 36H3@57E
FA
3
?;@AD;FK E:3D7:A>67D
A8 ;DEF 7@ ;@5>G676 ;@ O(F:7D @A@5GDD7@F 3EE7FEP
355AG@F

# /4'4)/'2 99+:9  , 8;@3@5;3>
3EE7FE
3D7 F:AE7
@A@ 67D;H3F;H7 8;@3@5;3>
3EE7FE
I:;5: 3D7 67E;9@3F76
3E  , AD
3D7
@AF 5>3EE;8;76 ;@
3@K
A8
F:7
F:D77
BD7576;@9 53F79AD;7E -:7K 3D7BGD5:3E76 3@6 :7>6 ;@678;@;F7>K 3@6?3K 47 EA>6 ;@ D7EBA@E7
FA>;CG;6;FK D7CG;D7?7@FE
AD 5:3@97E ;@ ?3D=7F 5A@6;F;A@E  , 8;@3@5;3> 3EE7FE
3D7;@5>G676;@5GDD7@F 3EE7FE ;8 ?3@397?7@F ;@F7@6E
FA
E7>>
F:7E7 8;@3@5;3>
3EE7FE I;F:;@  ?A@F:E 8DA?
43>3@57 E:77F
63F7 (F:7DI;E7
F:7E73D75>3EE;8;76
3E @A@5GDD7@F
3EE7FE

8F7D ;@;F;3> ?73EGD7?7@F  , 8;@3@5;3> 3EE7FE
3D7 EG4E7CG7@F>K ?73EGD76 3F 83;DH3>G7  , 8;@3@5;3> 3EE7FE
3D7?73EGD76
3F
83;DH3>G7 I;F: 93;@E 3@6 >AEE7E
47;@9 D75A9@;L76
3E
3
E7B3D3F7 5A?BA@7@F
A8 7CG;FK G@F;>
F:7 ;@H7EF?7@FE
3D7
67D75A9@;L76 AD
G@F;> F:7 ;@H7EF?7@FE
3D7
67F7D?;@76 FA47;?B3;D76 3F I:;5: F;?7
F:7
5G?G>3F;H7 93;@
AD >AEE
BD7H;AGE>KD7BADF76 ;@
7CG;FK 3D7 ;@5>G676 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 55AG@F;@9 A8
F:7
?AH7?7@F ;@ 7CG;FK ;E
BD7E7@F76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 5:3@97E ;@ 7CG;FK

"@H7EF?7@FE ;@
7CG;FK ;@EFDG?7@FE
F:3F
6A
@AF :3H73CGAF76 ?3D=7F
BD;57;@3@35F;H7?3D=7F
3@6 I:AE7 83;DH3>G7 53@@AF
47 ?73EGD76 D7>;34>K
3@6 67D;H3F;H7E
F:3F 3D7>;@=76
FA 3@6 ?GEF 47 E7FF>76 4K
67>;H7DK
A8 EG5:
G@CGAF76 7CG;FK ;@EFDG?7@FE
3D7?73EGD76
3F
5AEF

>3EE;8;76 G@67D  , 8;@3@5;3> 3EE7FE
3D7 CGAF76 3@6 G@CGAF76
7CG;FK ;@H7EF?7@FE
9AH7D@?7@F
674F E75GD;F;7E 3@6 ;@H7EF?7@FE ;@
BDABD;7F3DK ?7?47DE:;B E:3D7E

63 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

:.+8 /4'4)/'2 /'(/2/:/+9 ;@3@5;3> >;34;>;F;7E
3D75>3EE;8;76 ;@
F:;E 53F79ADK ;8
F:7E7
3D7
@AF
:7>6 8AD FD36;@9
AD @AF 67E;9@3F76
3E
3F
/)% GBA@
F:7 ;@57BF;A@
A8
F:7 >;34;>;FK -:7E7;@5>G67 >;34;>;F;7E
3D;E;@9 8DA?
AB7D3F;A@E AD
4ADDAI;@9E

(F:7D 8;@3@5;3> >;34;>;F;7E 3D7;@;F;3>>KD75A9@;L76 3F 83;DH3>G7>7EE
6;D75F>K 3FFD;4GF34>7
FD3@E35F;A@ 5AEFE 3@6 :3H7@AF 477@ 67E;9@3F76 3E
3F
)/% 8F7D ;@;F;3> D75A9@;F;A@ AF:7D 8;@3@5;3> >;34;>;F;7E
3D7 EG4E7CG7@F>K ?73EGD76
3F
3?ADF;L76 5AEF
GE;@9
F:7
78875F;H7;@F7D7EF ?7F:A6 ?ADF;L76 5AEF ;E 53>5G>3F76 4K
F3=;@9 ;@FA
355AG@F
3@KD7>3F76 ;EEG75AEFE 6;E5AG@F AD
BD7?;G? 3;@E
3@6 >AEE7E
3D7 D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 I:7@
F:7 >;34;>;F;7E 3D7
67D75A9@;L76
3EI7>>
3E
F:DAG9:
3?ADF;L3F;A@ BDA57EE

>3EE;8;76 G@67D
AF:7D 8;@3@5;3> >;34;>;F;7E
3D7 >A3@E B3K34>7
FD367 B3K34>7E
3@6
AF:7D 5GDD7@F >;34;>;F;7E 6G7 FA EFA5=:A>67DE 3@6
388;>;3F7E 4A@6E B3K34>7 >A@9 F7D?
674F
A4>;93F;A@E
FA 3E ,7>>7DE DAK3>FK 877 B3K34>7 6787DD76 B3K?7@F
835;>;FK I;F:)AI7D ,75FAD EE7FE
3@6
%;34;>;F;7E &3@397?7@F
ADBAD3F;A@ ),%& 3@6 A4>;93F;A@EFA
BAI7D B>3@F 5A@FD35FADE

7D;H3F;H7 ;@3@5;3> "@EFDG?7@FE ;DEF
!A>6;@9E DAGB7@F7DE ;@FA
67D;H3F;H7
3@6
:769;@9
FD3@E35F;A@E
BD;?3D;>K ;@F7D7EF D3F7 EI3BE 5GDD7@5K 8ADI3D6E
3@6 D3@97
4A@GE 8ADI3D6E
3E
@77676 8AD
F:7
EA>7 BGDBAE7
A8 ?3@39;@9 F:7 D;E=E
F:3F
3D7
3EEA5;3F76 I;F: ;DEF !A>6;@9E DAGBNE 4ADDAI;@9 35F;H;F;7E
AD
3ED7CG;D76 4KF:7 >7@67DE ;@ 57DF3;@ 53E7E ,G5: 67D;H3F;H7 8;@3@5;3> ;@EFDG?7@FE ;@5>G6;@9
4;8GD53F76 7?476676 67D;H3F;H7E
3D7;@;F;3>>K D75A9@;L76
3F 83;DH3>G7A@F:7 63F7A@I:;5: 3 67D;H3F;H75A@FD35F ;E 7@F7D76 ;@FA 3@6 3D7 EG4E7CG7@F>K D7 ?73EGD76
3F
83;DH3>G7 7D;H3F;H7E
3D753DD;76
3E 8;@3@5;3> 3EE7FE
I:7@
F:7 83;DH3>G7;E
BAE;F;H7 3@6 3E 8;@3@5;3> >;34;>;F;7EI:7@ F:7 83;DH3>G7;E
@793F;H7

@K
93;@E
AD >AEE7E
3D;E;@9
8DA? 5:3@97E ;@ 83;DH3>G7A@67D;H3F;H7E
F:3F
6A @AF
CG3>;8K 8AD
:7697 355AG@F;@9 3D7
F3=7@ 6;D75F>KFA F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 8AD
F:7
5GDD7@FK73DG@67D ?3D= FA ?3D=7F
93;@
AD >AEE
A@
67D;H3F;H7E

E
A8
757?47D

 
3@6  
F:7D7
3D7@A67D;H3F;H7E
F:3F
3D7
67E;9@3F76 3E 83;DH3>G7 :7697E

F
F:7 ;@57BF;A@
A8
3
:7697 D7>3F;A@E:;B
F:7 ;DEF
!A>6;@9E DAGB8AD?3>>K 67E;9@3F7E
3@6
6A5G?7@FE
F:7
:7697 D7>3F;A@E:;B FA I:;5:
F:7
;DEF
!A>6;@9E DAGBABFE
FA
3BB>K :7697 355AG@F;@9 3@6 F:7 D;E= ?3@397?7@F
A4<75F;H7
3@6 EFD3F79K 8AD
G@67DF3=;@9
F:7
:7697 -:7
6A5G?7@F3F;A@ ;@5>G67E ;67@F;8;53F;A@ A8
F:7
:769;@9 ;@EFDG?7@F F:7 :76976 ;F7?
AD
FD3@E35F;A@ F:7 @3FGD7A8
F:7
D;E=
47;@9 :76976
3@6 :AI F:7 7@F;FK I;>> 3EE7EE
F:7
:769;@9 ;@EFDG?7@FNE
78875F;H7@7EE ;@ A88E7FF;@9
F:7
7JBAEGD7
FA
5:3@97E ;@
F:7 :76976 ;F7?NE 83;DH3>G7AD 53E:8>AIE 3FFD;4GF34>7
FA F:7
:76976 D;E= ,G5: :7697E
3D7
7JB75F76
FA47 :;9:>K
78875F;H7;@35:;7H;@9
A88E7FF;@9 5:3@97E ;@ 83;DH3>G7
AD 53E:8>AIE 3@6 3D73EE7EE76
A@
3@ A@9A;@9 43E;E
F:3F
F:7K 35FG3>>K :3H7
477@ :;9:>K
78875F;H7 F:DAG9:AGF F:7 8;@3@5;3> D7BADF;@9 B7D;A6E 8ADI:;5:
F:7K I7D7
67E;9@3F76

'9. 25=
+*-+9
3E:8>AI :7697E
3D7 :7697E
A8 F:7
7JBAEGD7
FA H3D;34;>;FK
A8 53E:8>AIE
F:3F
3D7 3FFD;4GF34>7 FA3
B3DF;5G>3DD;E=
3EEA5;3F76 I;F:3D75A9@;L76 3EE7F >;34;>;FK
AD 3:;9:>K
BDA434>7 8AD753EF FD3@E35F;A@ 3@6 5AG>6 38875F
BDA8;F
AD >AEE -:7
78875F;H7
BADF;A@ A8
F:7
93;@
AD >AEE
A@
F:7 :769;@9 ;@EFDG?7@F ;ED75A9@;L76 6;D75F>K ;@
7CG;FK G@67DF:7 5G?G>3F;H7 FD3@E>3F;A@ 367 F:7 ;@78875F;H7BADF;A@ ;ED75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

?AG@FE
F3=7@
FA
7CG;FK 3D7
FD3@E87DD76
FA
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
I:7@ F:7 :76976 FD3@E35F;A@
38875FE
BDA8;F
AD >AEE EG5:
3EI:7@ :76976 8;@3@5;3> ;@5A?7
AD
7JB7@E7;ED75A9@;L76
ADI:7@ 38AD753EF E3>7
AD BGD5:3E7
A55GDE 0:7D7
F:7
:76976 ;F7? ;E
F:7
5AEF
A8
3
@A@ 8;@3@5;3> 3EE7F
AD >;34;>;FK F:7
3?AG@FE
F3=7@
FA7CG;FK 3D7 FD3@E87DD76
FA
F:7 ;@;F;3> 53DDK;@9
3?AG@F
A8
F:7
@A@ 8;@3@5;3> 3EE7F
AD >;34;>;FK

"8
F:7
8AD753EF
FD3@E35F;A@ ;E
@A >A@97D
7JB75F76 FA
A55GD
3?AG@FE
BD7H;AGE>KD75A9@;L76 ;@ 7CG;FK 3D7 FD3@E87DD76
FA
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"8
F:7 :769;@9 ;@EFDG?7@F
7JB;D7E
AD ;EEA>6 F7D?;@3F76
AD 7J7D5;E76 I;F:AGF D7B>357?7@F
ADDA>>AH7D
AD ;8 ;FE
67E;9@3F;A@
3E 3 :7697 ;ED7HA=76 3?AG@FE
BD7H;AGE>KD75A9@;L76 ;@
7CG;FK D7?3;@;@7CG;FK G@F;> F:7 8AD753EF
FD3@E35F;A@ A55GDE

"8
F:7
D7>3F76
FD3@E35F;A@ ;E @AF
7JB75F76 FA
A55GD F:7
3?AG@F ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

64 -:7 ;DEF
!A>6;@9E DAGB 355AG@FE 8AD )NE ;@F7D7EF D3F7 EI3B
39D77?7@F
3E
3
53E:8>AI :7697
A8
F:7
8>A3F;@9 D3F7
7JBAEGD7
A@ A@7
A8 ;FE >A@9 F7D? >;34;>;F;7E E77
'AF7E  3@6 

3(+**+* +8/<':/<+9 ?476676
67D;H3F;H7E 3D74;8GD53F76 8DA?
F:7;D
:AEF 5A@FD35FE
I:7@ F:7 8A>>AI;@9 5A@6;F;A@E
3D7?7F 3
F:7 7@F;D7:K4D;6 5A@FD35FE 5A?BAE76
A8
4AF: F:7
:AEF 5A@FD35F 3@6
F:7 7?476676 67D;H3F;H7
3D7
@AF
355AG@F76 8AD
3E 8;@3@5;3>
3EE7FE
3F
/)% 4 I:7@ F:7;D 75A@A?;5 D;E=E 3@6 5:3D35F7D;EF;5E
3D7
@AF 5>AE7>KD7>3F76
FA
F:AE7
A8
F:7;DD7EB75F;H7:AEF 5A@FD35FE
3@6
5
3
E7B3D3F7 ;@EFDG?7@F
I;F:
F:7 E3?7
F7D?E
3E
F:7
7?476676 67D;H3F;H7 IAG>6 ?77F
F:7
678;@;F;A@ A8
3
67D;H3F;H7

;DEF !A>6;@9E DAGB3EE7EE7EI:7F:7D 7?476676 67D;H3F;H7E 3D7 D7CG;D76 FA47E7B3D3F76 8DA? :AEF 5A@FD35FE I:7@ ;DEF !A>6;@9E DAGB8;DEF 475A?7E 3B3DFK FA F:7 5A@FD35F +73EE7EE?7@F A@>K A55GDE ;8 F:7D7;E 3 5:3@97 ;@ F:7 F7D?E A8 F:7 5A@FD35FF:3FE;9@;8;53@F>K ?A6;8;7EF:7 53E:8>AIE F:3FIAG>6 AF:7DI;E747D7CG;D76

?476676 67D;H3F;H7E
F:3F 3D7
4;8GD53F76 8DA?
F:7
:AEF 5A@FD35FE
3D7
355AG@F76 8AD
7;F:7D
3E 8;@3@5;3> 3EE7FE
AD 8;@3@5;3> >;34;>;F;7E
3F
/)%

:3@97E ;@ 83;DH3>G7E
3D7 ;@5>G676 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

! ! '4* ! ;4* ) ) 3@6 )! G@6
735: :3H7
7J;EF;@9 ;@F7D7EF D3F7 EI3B
39D77?7@FE
FA ?3@397
F:7;DD7EB75F;H7 8>A3F;@9 ;@F7D7EF D3F7
7JBAEGD7E
A@
F:7;D 8AD7;9@ 5GDD7@5K 67@A?;@3F76 A4>;93F;A@E 55DG3>
A8 ;@F7D7EF
A@
F:7 OD757;H7P 3@6 OB3KP >79E
A8
F:7
;@F7D7EF D3F7 EI3B ;ED75AD676
3E 363F76 8AD7;9@ 5GDD7@5K 67@A?;@3F76
A4>;93F;A@E

;DEF
!A>6;@9E DAGB 355AG@FE 8AD )NE )NE
3@6 )! G@6 ;@F7D7EF D3F7 EI3B
39D77?7@FE
3E 53E: 8>AI :7697E
A8
F:7 8>A3F;@9 D3F7
7JBAEGD7A@
F:7;DD7EB75F;H7 >A@9 F7D?
674F
E77 'AF7E

3@6


E
A8
757?47D

 
3@6   ;DEF
!A>6;@9E DAGB:3E
@A 67D;H3F;H7E
F:3F 3D7
67E;9@3F76 3E 83;D H3>G7 :7697E

7D75A9@;F;A@A8 ;@3@5;3>EE7FE
3@6 %;34;>;F;7E

/4'4)/'2 99+:  8;@3@5;3>
3EE7F AD I:7D7 3BB>;534>7
3
B3DF
A8
3
8;@3@5;3>
3EE7F AD
B3DF
A8
39DAGBA8 8;@3@5;3>
3EE7FE;E 67D75A9@;L76 I:7@

F:7 D;9:FE
FA D757;H753E:8>AIE 8DA?
F:7
3EE7F
7JB;D7

F:7 ;DEF !A>6;@9E DAGB D7F3;@EF:7 D;9:FFA D757;H753E:8>AIE 8DA?
F:7
3EE7F
4GF
:3E
3EEG?76
3@
A4>;93F;A@
FA
B3KF:7? ;@ 8G>> I;F:AGF ?3F7D;3> 67>3K
FA
3
F:;D6B3DFK G@67D 3 OB3EE F:DAG9:P 3DD3@97?7@F
AD

F:7 ;DEF !A>6;@9E DAGB:3E
FD3@E87DD76 ;FE D;9:FE
FA
D757;H753E:8>AIE 8DA?
F:7
3EE7F
3@6 7;F:7D 3 :3E
FD3@E87DD76 EG4EF3@F;3>>K
3>> F:7 D;E=E
3@6
D7I3D6E A8
F:7
3EE7F AD 4
:3E @7;F:7D
FD3@E87DD76
@AD D7F3;@76 F:7 D;E=
3@6
D7I3D6E
A8
F:7
3EE7F 4GF :3E
FD3@E87DD76
F:7
5A@FDA>
A8
F:7
3EE7F

0:7D7
F:7
;DEF
!A>6;@9E DAGB:3E
FD3@E87DD76 ;FE D;9:FE
FA
D757;H753E:8>AIE 8DA?
3@
3EE7F
AD
:3E 7@F7D76 ;@FA3OB3EE F:DAG9:P
3DD3@97?7@F
3@6 :3E @7;F:7D
FD3@E87DD76
@ADD7F3;@76 EG4EF3@F;3>>K 3>> F:7 D;E=E
3@6
D7I3D6E A8
F:7
3EE7F
@AD
FD3@E87DD76 5A@FDA> A8
F:7
3EE7F F:7 3EE7F ;ED75A9@;L76
FA F:7 7JF7@F
A8 F:7 ;DEF !A>6;@9E DAGBNE 5A@F;@G;@9 ;@HA>H7?7@F ;@ F:7
3EE7F
A@F;@G;@9 ;@HA>H7?7@F
F:3F
F3=7E
F:7
8AD?A8
3
9G3D3@F77 AH7D
F:7
FD3@E87DD76
3EE7F ;E ?73EGD76
3F
F:7 >AI7D
A8
F:7
AD;9;@3> 53DDK;@9 3?AG@F
A8 F:7
3EE7F 3@6
F:7 ?3J;?G?3?AG@F
A8 5A@E;67D3F;A@ F:3FF:7 ;DEF
!A>6;@9E DAGB5AG>6 47 D7CG;D76
FA
D7B3K

/4'4)/'2 /'(/2/:?  8;@3@5;3> >;34;>;FK ;E 67D75A9@;L76 I:7@ F:7 A4>;93F;A@ G@67DF:7 >;34;>;FK ;E
6;E5:3D976 ;E 53@57>>76
AD
7JB;D7E 0:7D7
3@ 7J;EF;@9 8;@3@5;3> >;34;>;FK ;ED7B>3576 4K 3@AF:7D 8DA?
F:7
E3?7 >7@67D A@ EG4EF3@F;3>>K 6;887D7@F
F7D?E
AD
F:7
F7D?E
A8
3@
7J;EF;@9 >;34;>;FK 3D7 EG4EF3@F;3>>K ?A6;8;76 EG5: 7J5:3@97
AD ?A6;8;53F;A@ ;E
FD73F76
3E
367D75A9@;F;A@ A8
F:7
AD;9;@3> >;34;>;FK
3@6 F:7 D75A9@;F;A@
A8
3
@7I >;34;>;FK 3@6
F:7
6;887D7@57 ;@
F:7 D7EB75F;H753DDK;@9 3?AG@FE ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F A8 ;@5A?7

65 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

"?B3;D?7@F
A8 ;@3@5;3> EE7FE -:7 ;DEF
!A>6;@9E DAGB3EE7EE7E
3F
735:
43>3@57 E:77F 63F7 I:7F:7DF:7D7;E A4<75F;H77H;67@57
F:3F 3 8;@3@5;3>
3EE7F AD
9DAGB
A8 8;@3@5;3> 3EE7FE ;E ;?B3;D76  8;@3@5;3>
3EE7F AD
3
9DAGB
A8 8;@3@5;3>
3EE7FE ;E 677?76
FA
47 ;?B3;D76 ;8 3@6 A@>K ;8
F:7D7;E A4<75F;H7
7H;67@57
A8 ;?B3;D?7@F
3E
3
D7EG>F A8
A@7 AD ?AD7 7H7@FE
F:3F :3E
A55GDD76
38F7D
F:7 ;@;F;3> D75A9@;F;A@ A8
F:7
3EE7F 3@ ;@5GDD76 O>AEE
7H7@FP
3@6
F:3F >AEE 7H7@F AD 7H7@FE
:3E 3@ ;?B35F
A@
F:7
7EF;?3F76 8GFGD753E:8>AIE
A8
F:7
8;@3@5;3>
3EE7F
AD
F:7
9DAGB
A8 8;@3@5;3>
3EE7FE
F:3F 53@
47 D7>;34>K 7EF;?3F76 H;67@57
A8 ;?B3;D?7@F ?3K ;@5>G67 ;@6;53F;A@E
F:3F
F:7 4ADDAI7D
AD 3
9DAGB
A8
4ADDAI7DE ;E
7JB7D;7@5;@9 E;9@;8;53@F 8;@3@5;3> 6;88;5G>FK 6783G>F
AD
67>;@CG7@5K ;@ ;@F7D7EF AD
BD;@5;B3> B3K?7@FE
F:7 BDA434;>;FK F:3F
F:7K
I;>> 7@F7D 43@=DGBF5K
AD AF:7D 8;@3@5;3> D7AD93@;L3F;A@ 3@6 I:7D7A4E7DH34>7
63F3 ;@6;53F7 F:3F
F:7D7;E ?73EGD34>7 675D73E7;@
F:7
7EF;?3F76 8GFGD753E:8>AIE EG5:
3E 5:3@97E ;@ 3DD73DE
AD
75A@A?;5 5A@6;F;A@E
F:3F 5ADD7>3F7 I;F: 6783G>FE

/4'4)/'2 99+:9
'88/+* ': 358:/@+* 59: AD >A3@E 3@6 D757;H34>7E 53DD;76
3F 3?ADF;L76 5AEF F:7 ;DEF !A>6;@9E DAGB8;DEF
3EE7EE7E
I:7F:7D 3@
A4<75F;H77H;67@57 A8 ;?B3;D?7@F
7J;EFE ;@6;H;6G3>>K 8AD 8;@3@5;3> 3EE7FE
F:3F 3D7 ;@6;H;6G3>>KE;9@;8;53@F
AD 5A>>75F;H7>K 8AD 8;@3@5;3>
3EE7FE
F:3F
3D7@AF ;@6;H;6G3>>K E;9@;8;53@F

"8
F:7D7;E A4<75F;H77H;67@57
F:3F ;?B3;D?7@F
7J;EFE 8AD ;@6;H;6G3>>K
3EE7EE76 8;@3@5;3> 3EE7F I:7F:7DE;9@;8;53@F AD
@AF ;F ;@5>G67EF:7
3EE7F ;@ 3
9DAGB
A8 8;@3@5;3> 3EE7FE I;F: E;?;>3D 5D76;FD;E= 5:3D35F7D;EF;5E
3@6 5A>>75F;H7>K
3EE7EE7E 8AD ;?B3;D?7@F

-:AE75:3D35F7D;EF;5E
3D7 D7>7H3@F
FA
F:7
7EF;?3F;A@
A8 8GFGD753E:8>AIE 8AD
9DAGBE
A8 EG5:
3EE7FE 4K 47;@9 ;@6;53F;H7
A8
F:7 674FADEN
34;>;FK
FAB3K 3>> 3?AG@FE
6G7 355AD6;@9
FA F:7 5A@FD35FG3> F7D?E A8
F:7
3EE7FE
47;@9 7H3>G3F76 EE7FE
F:3F 3D7 ;@6;H;6G3>>K 3EE7EE76 8AD ;?B3;D?7@F
3@6
8ADI:;5:
3@ ;?B3;D?7@F >AEE ;E
AD 5A@F;@G7EFA
47 D75A9@;L76 3D7@AF ;@5>G676 ;@ 3 5A>>75F;H7
3EE7EE?7@F 8AD ;?B3;D?7@F

"8
F:7D7;E A4<75F;H77H;67@57
F:3F
3@ ;?B3;D?7@F >AEE A@
3EE7FE 53DD;76 3F
3?ADF;L76 5AEF :3E
477@ ;@5GDD76 F:7 3?AG@F
A8
F:7 >AEE ;E ?73EGD76
3E
F:7
6;887D7@57 47FI77@ F:7 3EE7FNE 53DDK;@9
3?AG@F 3@6 F:7
BD7E7@FH3>G7
A8
7EF;?3F78GFGD753E:8>AIE 7J5>G6;@9 8GFGD7
7JB75F76 5D76;F >AEE7E
F:3F
:3H7@AF 477@ ;@5GDD76
6;E5AG@F76 3F
F:7 8;@3@5;3>
3EE7FNE
AD;9;@3> 78875F;H7;@F7D7EF D3F7 -:7 53DDK;@9 3?AG@F
A8 F:7
3EE7FE ;ED76G576
F:DAG9:
GE7A8
3>>AI3@57
355AG@F
3@6
F:7
3?AG@F
A8 >AEE ;ED75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"8 ;@ 53E7
F:7
D757;H34>7 :3E
BDAH7@
FA
:3H7
@A D73>;EF;5 BDAEB75F
A8 8GFGD7 D75AH7DK 3@K 3>>AI3@57
BDAH;676 8ADEG5: D757;H34>7 ;EID;FF7@ A88
393;@EF F:7 53DDK;@9 H3>G7
A8
F:7
;?B3;D76 D757;H34>7
"@F7D7EF ;@5A?7 5A@F;@G7E
FA47D75A9@;L76 43E76 A@ F:7 AD;9;@3> 78875F;H7;@F7D7EF D3F7
A8
F:7 3EE7F

"8 ;@ EG4E7CG7@F
B7D;A6
F:7
3?AG@F
A8
F:7 7EF;?3F76 ;?B3;D?7@F >AEE
675D73E7E 3@6 F:7 675D73E753@
47 D7>3F76 A4<75F;H7>KFA3@7H7@F
A55GDD;@9
38F7D
F:7 ;?B3;D?7@FI3ED75A9@;L76 F:7 BD7H;AGE>KD75A9@;L76 ;?B3;D?7@F >AEE ;ED7H7DE76
FA
F:7
7JF7@FF:3FF:7 53DDK;@9 H3>G7
A8
F:7 3EE7FE
6A7E
@AF
7J5776 ;FE 3?ADF;L76 5AEF 3F
F:7 D7H7DE3>
63F7 @KEG4E7CG7@FD7H7DE3>
A8
3@ ;?B3;D?7@F >AEE ;ED76G576
4K 36>AI3@57
355AG@F

"8
3
8GFGD7 ID;F7 A88 ;E >3F7DD75AH7D76 3@K
3?AG@F 8AD?7D>K 5:3D976 ;E 5D76;F76
FA
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"@ D7>3F;A@ FA
FD367 D757;H34>7E
3BDAH;E;A@ 8AD ;?B3;D?7@F ;E ?367
I:7@ F:7D7;E A4<75F;H77H;67@57 EG5: 3E
F:7 BDA434;>;FK A8 ;@EA>H7@5K
ADE;9@;8;53@F 8;@3@5;3> 6;88;5G>F;7E
A8
F:7 674FAD
F:3F
F:7
;DEF
!A>6;@9E DAGB I;>>
@AF
47
34>7 FA 5A>>75F 3>>
F:7
3?AG@FE
6G7 G@67D
F:7
AD;9;@3> F7D?E A8
F:7
;@HA;57 -:7 53DDK;@9 3?AG@F
A8
FD367 D757;H34>7 ;ED76G576
F:DAG9: GE7
A8 3>>AI3@57 355AG@F

"?B3;D76
674FE
3D7 67D75A9@;L76 I:7@
3EE7EE76
3EG@5A>>75F;4>7 %;=7I;E7 8AD
AF:7DD757;H34>7E ;F ;E
3>EA
7EF34>;E:76
F:3F 355AG@FE
AGFEF3@6;@9 >7EE
F:3@ A@7 K73DE:AG>6 :3H7@A
BDAH;E;A@
4GF
355AG@FE
AGFEF3@6;@9 AH7D A@7 K73DE:AG>6 :3H7
3   BDAH;E;A@ I:;5: I3E
3DD;H76 3F
38F7D
3EE7EE;@9 ;@6;H;6G3>>KE;9@;8;53@F
43>3@57E )DAH;E;A@ 8AD ;@6;H;6G3>>K @A@ E;9@;8;53@F 43>3@57EI3E ?367
A@
3
BADF8A>;A
AD
9DAGB
43E;E 38F7D
B7D8AD?;@9 F:7 D79G>3DD7H;7I
A8
F:7 397
3@6 EF3FGE A8
F:7
;@6;H;6G3>
355AG@FE
3@6 BADF8A>;A 9DAGBA8
355AG@FE D7>3F;H7 FA:;EFAD;53> 5A>>75F;A@E 5:3@97E ;@ B3K?7@F
F7D?E
3@6
AF:7D 835FADE
F:3F ?3K 38875F
34;>;FK FA 5A>>75F B3K?7@FE

# /4'4)/'2 99+:9 AD  , 8;@3@5;3> 3EE7FE
F:7
;DEF
!A>6;@9E DAGB
3EE7EE7E
3F
735:
43>3@57 E:77F 63F7 I:7F:7DF:7D7;E
A4<75F;H77H;67@57
F:3F 3 8;@3@5;3> 3EE7F
AD
9DAGBA88;@3@5;3>3EE7FE ;E ;?B3;D76

"@
F:7 53E7
A8
7CG;FK ;@H7EF?7@FE 5>3EE;8;76
3E  ,
F:;EIAG>6 ;@5>G67 3 E;9@;8;53@F
AD
BDA>A@976
675>;@7 ;@ 83;DH3>G7A8
F:7
;@H7EF?7@FE
47>AI ;FE 5AEF 0:7D7
F:7D7;E 7H;67@57 A8 ;?B3;D?7@F
F:7
5G?G>3F;H7>AEE ?73EGD76
3E
F:7
6;887D7@57
47FI77@ F:7 35CG;E;F;A@ 5AEF
3@6
F:7 5GDD7@F 83;DH3>G7 >7EE
3@K ;?B3;D?7@F

66 >AEE
A@
F:3F 8;@3@5;3> 3EE7F BD7H;AGE>KD75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 ;ED7?AH76 8DA?
7CG;FK 3@6 D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 "?B3;D?7@F >AEE7E
A@ 7CG;FK ;@H7EF?7@FE
3D7
@AF
D7H7DE76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"@5D73E7E ;@ 83;DH3>G738F7D ;?B3;D?7@F
3D7 D75A9@;L76 6;D75F>K ;@ 7CG;FK

"@
F:7 53E7
A8
674F ;@EFDG?7@FE 5>3EE;8;76
3E  , ;?B3;D?7@F ;E
3EE7EE76
43E76 A@
F:7 E3?7 5D;F7D;3
3E 8;@3@5;3>
3EE7FE 53DD;76
3F
3?ADF;L76 5AEF GFGD7;@F7D7EF ;@5A?7 ;E
43E76
A@
F:7 D76G576 53DDK;@9 3?AG@F
3@6 ;E
355DG76 43E76 A@
F:7 D3F7A8;@F7D7EF
GE76
FA
6;E5AG@F 8GFGD753E:8>AIE 8AD
F:7
BGDBAE7
A8 ?73EGD;@9 ;?B3;D?7@F >AEE

"8 ;@ EG4E7CG7@F B7D;A6 F:7 83;DH3>G7A8
3
674F ;@EFDG?7@F ;@5D73E76 3@6 F:7 ;@5D73E753@
47
A4<75F;H7>KD7>3F76 FA
3@ 7H7@F
A55GDD;@9
38F7D
F:7 ;?B3;D?7@F >AEE I3ED75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
F:7
;?B3;D?7@F >AEE ;ED7H7DE76
F:DAG9:
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

(88E7FF;@9 ;@3@5;3>
"@EFDG?7@FE ;@3@5;3>
3EE7FE
3@6 >;34;>;F;7E
3D7
A88E7F
3@6
F:7 @7F 3?AG@FD7BADF76 ;@ F:7 5A@EA>;63F76 43>3@57 E:77F ;8 3@6 A@>K ;8
F:7D7;E
3
5GDD7@F>K 7@8AD5734>7 >793> D;9:FFA
A88E7F
F:7
D75A9@;L76 3?AG@FE 3@6 F:7D7;E
3@ ;@F7@F;A@ FA E7FF>7 A@ 3
@7F 43E;E
ADFA D73>;L7 F:7 3EE7F
3@6 E7FF>7
F:7 >;34;>;FK E;?G>F3@7AGE>K -:;E ;E
@AF 97@7D3>>KF:7 53E7 I;F:?3EF7D
@7FF;@9 3DD3@97?7@FE
3@6
F:7 D7>3F76 3EE7FE
3@6 >;34;>;F;7E
3D7
BD7E7@F76 3F
9DAEE
3?AG@FE ;@ F:7 5A@EA>;63F76 43>3@57 E:77F

3E:
3@6
3E:CG;H3>7@FE 3E: ;@5>G67E 53E:A@
:3@6
3@6 ;@
43@=E

3E:
7CG;H3>7@FE 3D7 E:ADF F7D?
:;9:>K >;CG;6 ;@H7EF?7@FE
F:3F
3D7 D736;>K 5A@H7DF;4>7 FA=@AI@
3?AG@FE
A8 53E: I;F:AD;9;@3> ?3FGD;F;7E A8
F:D77 ?A@F:E
AD >7EE
3@6
F:3F 3D7 EG4<75F
FA3@;@E;9@;8;53@FD;E=
A8 5:3@97 ;@ H3>G7

-D367
3@6
(F:7D
+757;H34>7E -D367
3@6
AF:7DD757;H34>7E 53F79AD;L76
3E >A3@E
3@6 D757;H34>7E
3D7 D75A9@;L76 ;@;F;3>>K
3F
83;DH3>G7 3@6 EG4E7CG7@F>K ?73EGD76
3F 3?ADF;L76 5AEF GE;@9
F:7
78875F;H7;@F7D7EF ?7F:A6 >7EE
BDAH;E;A@ 8AD ;?B3;D?7@F BDAH;E;A@ 8AD ;?B3;D?7@F
A8
FD367 3@6 AF:7DD757;H34>7E ;E
7EF34>;E:76 I:7@ F:7D7;E A4<75F;H77H;67@57
F:3FF:7 ;DEF
!A>6;@9E DAGB I;>> @AF
47 34>7
FA 5A>>75F 3>> 3?AG@FE
6G7
355AD6;@9 FA F:7
AD;9;@3>
F7D?E
A8
F:7
D757;H34>7E ,;9@;8;53@F 8;@3@5;3>
6;88;5G>F;7E
A8
F:7 674FAD BDA434;>;FK F:3FF:7 674FADI;>> 7@F7D
43@=DGBF5K
AD 8;@3@5;3> D7AD93@;L3F;A@
3@6 6783G>F
AD 67>;@CG7@5K ;@ B3K?7@FE
3D7 5A@E;67D76 ;@6;53FADE
F:3FF:7
FD367 D757;H34>7 ;E ;?B3;D76 -:7
3?AG@F
A8
F:7 BDAH;E;A@ ;E
F:7
6;887D7@57 47FI77@ F:7 3EE7FNE 53DDK;@9
3?AG@F
3@6
F:7
BD7E7@FH3>G7
A8
7EF;?3F76 8GFGD753E:8>AIE 6;E5AG@F76
3F
F:7
AD;9;@3>
78875F;H7;@F7D7EF D3F7 3E:8>AIE D7>3F;@9 FA E:ADF F7D? D757;H34>7E
3D7
@AF
6;E5AG@F76 ;8
F:7 78875F A8
6;E5AG@F;@9 ;E ;??3F7D;3> -:7 53DDK;@9
3?AG@F
A8
F:7 3EE7F ;ED76G576 F:DAG9:
F:7
GE7A8
3@
3>>AI3@57
355AG@F 3@6F:7
3?AG@F
A8
F:7
>AEE ;ED75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 0:7@
3
FD367 D757;H34>7 ;EG@5A>>75F;4>7 ;F ;EID;FF7@
A88
393;@EF F:7 3>>AI3@57
355AG@F 8AD
FD367 3@6 AF:7D D757;H34>7E ,G4E7CG7@FD75AH7D;7E
A8
3?AG@FE
BD7H;AGE>KID;FF7@ A88
3D7 D75A9@;L76
3E ;@5A?7 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"@H7@FAD;7E "@H7@FAD;7E
7J5>G6;@9 >3@6 :7>6 8ADE3>7 3@6 67H7>AB?7@F 5AEFE
3D7 H3>G76 3F
F:7 >AI7D
A8 5AEF
AD
@7F
D73>;L34>7 H3>G7

AEFE ;@5GDD76 ;@ 4D;@9;@9 735: ;F7?
A8 ;@H7@FAD;7E
FA;FE
BD7E7@F >A53F;A@ 3@6 5A@6;F;A@E
3D7 355AG@F76 8AD 3E 8A>>AIE

;@;E:76 9AA6E
3@6 IAD=;@ BDA57EE Q 7F7D?;@76 A@
F:7 I7;9:F76 3H7D397 43E;E5AEF ;@5>G67E ?3F7D;3>E 3@6 >34AD
3@6
3
BDABADF;A@
A8 ?3@G835FGD;@9
AH7D:736 5AEFE
43E76 A@
@AD?3> AB7D3F;@9 53B35;FK 4GF
7J5>G6;@9 4ADDAI;@9 5AEFE -D3@EBA@67DE
3@6 ?39@7F;5 53D6EQAEF
3E
67F7D?;@76
43E76 A@
F:7 8;DEF ;@ 8;DEF AGF ?7F:A6 +73>
7EF3F7 Q AEFE ;@5>G67 7JB7@6;FGD7E 8AD
67H7>AB?7@F 3@6 ;?BDAH7?7@FE
A8
F:7
>3@6 G7> ;@H7@FAD;7EQ07;9:F76
3H7D397 5AEF
A8 35FG3> 8G7> 5A@EG?76

67 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

+3I ?3F7D;3>EQ)GD5:3E75AEF 43E76 A@ I7;9:F76 3H7D397 5AEF ?7F:A6 ,B3D7
B3DFE 3@6 EGBB>;7EQ)GD5:3E75AEF A@ ?AH;@9 3H7D397 43E;E

%3@6
:7>6 8ADE3>7
3@6
F:7 D7>3F76 67H7>AB?7@F 5AEFE 3D7 H3>G76
3F
F:7 >AI7D
A8 5AEF
I:;5: ;@5>G67 7JB7@6;FGD7E 8AD
67H7>AB?7@F 3@6 ;?BDAH7?7@FE
AD
@7F
D73>;L34>7 H3>G7

-:7
@7F
D73>;L34>7 H3>G7;E
67F7D?;@76
3E 8A>>AIE

+73>
7EF3F78ADE3>7 3@6 IAD= ;@ BDA57EE Q ,7>>;@9 BD;57 ;@ F:7 AD6;@3DK 5AGDE7
A8
4GE;@7EE >7EE F:7
7EF;?3F76 5AEFE
A8 5A?B>7F;A@ ?3D=7F;@9 3@6 6;EFD;4GF;A@ ;@;E:76 9AA6E
FD3@EBA@67DE
3@6
Q EF;?3F76 E7>>;@9
BD;57 ;@
F:7
AD6;@3DK 5AGDE7
A8 ?39@7F;5 53D6E 4GE;@7EE >7EE
7EF;?3F76 5AEFE
@757EE3DK
FA
?3=7 F:7 E3>7 G7> ;@H7@FAD;7EQAEF 5:3D976
FA F:7 &+%(
G@67D
F:7 D7EB75F;H7 )AI7D )GD5:3E79D77?7@FE ))E
A8 ) 3@6 ) I;F: &+%( E77 'AF7 3 I:;5: ;E 43E76 A@ I7;9:F76 3H7D397 5AEF A8
35FG3> 8G7> +3I ?3F7D;3>E EB3D7B3DFE
3@6
EGBB>;7EQGDD7@FD7B>357?7@F 5AEF

-:7 8G7> ;@H7@FAD;7E
3D7 F:AE7
A8 )
3@6 )

)DAB7DFK )>3@F 3@6 CG;B?7@F )DAB7DFK B>3@F 3@6 7CG;B?7@F 7J57BF >3@6
3D753DD;76
3F
5AEF >7EE
355G?G>3F76 67BD75;3F;A@ 3?ADF;L3F;A@ 3@6 3@K ;?B3;D?7@F ;@ H3>G7 %3@6 ;E 53DD;76 3F 5AEF ;@;F;3>
BGD5:3E7
BD;57 3@6 AF:7D 5AEF 6;D75F>K 3FFD;4GF34>7
FA
EG5: BDAB7DFK>7EE
3@K ;?B3;D?7@F ;@ H3>G7

-:7 ;@;F;3> 5AEF
A8
BDAB7DFK B>3@F 3@6 7CG;B?7@F
7J57BF >3@6 5A?BD;E7E ;FE
BGD5:3E7
BD;57 ;@5>G6;@9 ;?BADF
6GF;7E 4ADDAI;@9 5AEFE 6GD;@9 F:7 5A@EFDG5F;A@
B7D;A6
3@6
AF:7D 5AEFE 6;D75F>K 3FFD;4GF34>7 ;@ 4D;@9;@9
F:7
3EE7FFA;FE IAD=;@9 5A@6;F;A@
3@6 >A53F;A@
8AD ;FE ;@F7@676
GE7

AEF
3>EA ;@5>G67E
F:7 5AEF
A8 D7B>35;@9 F:7 B3DF
A8 EG5: BDAB7DFK B>3@F
3@6
7CG;B?7@FI:7@ F:7 D75A9@;F;A@ 5D;F7D;3
3D7?7F
3@6
F:7 7EF;?3F76 5AEF
A8
6;E?3@F>;@9 3@6 D7?AH;@9
F:7
3EE7F 3@6 D7EFAD;@9
F:7 E;F7

JB7@6;FGD7E ;@5GDD76
38F7D
F:7 BDAB7DFK B>3@F 3@6 7CG;B?7@F
:3H7 477@
BGF ;@FA AB7D3F;A@ EG5:
3E D7B3;DE 3@6 ?3;@F7@3@57 3D7
@AD?3>>K 5:3D976
FA
5GDD7@F AB7D3F;A@E ;@ F:7 B7D;A6
F:7
5AEFE
3D7;@5GDD76 "@ E;FG3F;A@EI:7D7;F 53@
47 5>73D>K 67?A@EFD3F76 F:3F
F:7 7JB7@6;FGD7E
:3H7 D7EG>F76 ;@ 3@ ;@5D73E7;@ F:7 8GFGD7 75A@A?;5
47@78;FE
7JB75F76 FA47
A4F3;@76 8DA?
F:7
GE7
A8
3@
;F7?
A8
BDAB7DFK B>3@F 3@6 7CG;B?7@F
47KA@6 ;FE
AD;9;@3>>K 3EE7EE76 EF3@63D6
A8 B7D8AD?3@57
F:7
7JB7@6;FGD7E
3D7 53B;F3>;L76
3E 366;F;A@3> 5AEFE
A8
BDAB7DFK
B>3@F 3@6 7CG;B?7@F

-:7 ;DEF
!A>6;@9E DAGB;67@F;8;76
F:7 E;9@;8;53@F
B3DFE
A8 ;FE
BAI7D
B>3@F 3EE7FE
FA 5A?B>KI;F:
F:7 BDAH;E;A@E
A8 ),  O)DAB7DFK )>3@F
3@6 CG;B?7@F P 35: B3DF
A8
3@ ;F7?
A8 BDAB7DFK B>3@F
3@6 7CG;B?7@FI;F:
3
5AEF F:3F ;EE;9@;8;53@F ;@ D7>3F;A@ FA
F:7
FAF3> 5AEF A8
F:7
;F7? ;E
67BD75;3F76 E7B3D3F7>K

7BD75;3F;A@ 3@6 3?ADF;L3F;A@
3D7 5A?BGF76
GE;@9 F:7 EFD3;9:F >;@7 ?7F:A6 AH7DF:7 8A>>AI;@9
7EF;?3F76 GE78G>>;H7E
A8
F:7
3EE7FE

G;>6;@9E
AF:7D EFDG5FGD7E 3@6 ;?BDAH7?7@FE 
FAK73DE -D3@EBADF3F;A@
7CG;B?7@F 
FA K73DE &35:;@7DK 3@6
7CG;B?7@F 
FAK73DE %73E7:A>6 ;?BDAH7?7@FE  K73DE
AD >73E7 F7D? I:;5:7H7D ;EE:ADF7D

-:7
GE78G>>;H7E 3@6 67BD75;3F;A@ 3@6
3?ADF;L3F;A@ ?7F:A6 3D7 D7H;7I76 3F 735: 8;@3@5;3> K73D 7@6 FA 7@EGD7
F:3FF:7 B7D;A6E
3@6 ?7F:A6
A8
67BD75;3F;A@ 3@6
3?ADF;L3F;A@
3D75A@E;EF7@FI;F: F:7
7JB75F76 B3FF7D@
A8
75A@A?;5
47@78;FE 8DA? ;F7?E A8
BDAB7DFK
B>3@F 3@6 7CG;B?7@F

68 @ ;F7?
A8
BDAB7DFK B>3@F
3@6 7CG;B?7@F ;E
67D75A9@;L76 GBA@ 6;EBAE3> ADI:7@@A8GFGD7
75A@A?;5 47@78;FE
3D7
7JB75F76 8DA? ;FE
GE7
AD 6;EBAE3> @K 93;@
AD >AEE
3D;E;@9
A@
67D75A9@;F;A@
A8
F:7 3EE7FE 53>5G>3F76 3E
F:7 6;887D7@57
47FI77@
F:7
@7F 6;EBAE3> BDA5776E 3@6 53DDK;@9
3?AG@F
A8
F:7
3EE7F;E ;@5>G676 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 ;@ F:7 K73D
F:7
3EE7F ;E
67D75A9@;L76

A@EFDG5F;A@ ;@
BDA9D7EE D7BD7E7@FE
BDAB7DF;7E
G@67D 5A@EFDG5F;A@ 3@6 ;EEF3F76
3F 5AEF -:;E ;@5>G67E 5AEF
A8 5A@EFDG5F;A@ 7CG;B?7@F
3@6
AF:7D 6;D75F 5AEFE ADDAI;@9 5AEFE
F:3F
3D76;D75F>K 3FFD;4GF34>7
FA
F:7 5A@EFDG5F;A@ A8
F:7 BDAB7DFK
B>3@F 3@6 7CG;B?7@F
3D7 53B;F3>;L76 6GD;@9 F:7 5A@EFDG5F;A@
B7D;A6 A@EFDG5F;A@ ;@
BDA9D7EE ;E @AF 67BD75;3F76
G@F;> EG5: F;?7
F:3F
F:7
D7>7H3@F
3EE7FE
3D7 EG4EF3@F;3>>K 5A?B>7F76
3@6 3H3;>34>7 8AD
GE7

'A@5GDD7@F EE7FE
!7>6 8AD ,3>7 EE7FE
3D75>3EE;8;76
3E @A@5GDD7@F
3EE7FE :7>6 8ADE3>7 ;8
F:7;D 53DDK;@9 3?AG@FE
I;>> 47 D75AH7D76 BD;@5;B3>>K
F:DAG9:
3
E3>7
FD3@E35F;A@ D3F:7D
F:3@ F:DAG9: 5A@F;@G;@9
GE7 -:;E 5A@6;F;A@ ;E ?7F
A@>KI:7@ F:7 E3>7 ;E
:;9:>K BDA434>7 3@6 F:7 3EE7FE
3D73H3;>34>7 8AD ;??76;3F7 E3>7;@;FE BD7E7@F 5A@6;F;A@ &3@397?7@F ?GEF
47
5A??;FF76
FA
F:7 E3>7
F:3FE:AG>6
47 7JB75F76
FA CG3>;8K 8ADD75A9@;F;A@
3E 3 5A?B>7F76 E3>7 I;F:;@ A@7 K73D 8DA?
F:7
63F7A85>3EE;8;53F;A@ 7J57BFI:7@ F:7D7;E
67>3K A8
F:7
E3>7 53GE76 4K 7H7@FE
AD 5;D5G?EF3@57E
47KA@6 ;DEF !A>6;@9E DAGB5A@FDA>

'A@5GDD7@F
3EE7FE 5>3EE;8;76
3E :7>6 8ADE3>7 3D7?73EGD76 3F
F:7 >AI7D
A8 53DDK;@9 H3>G7
3@6 83;DH3>G7>7EE 5AEFE
FA
E7>> 3@K 6;887D7@57 ;E D75A9@;L7;@
F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7 )DAB7DFK B>3@F 3@6 7CG;B?7@F 3@6 ;@F3@9;4>7 3EE7FE A@57 5>3EE;8;76
3E :7>6 8ADE3>7
3D7
@AF
67BD75;3F76 AD 3?ADF;L76

"@H7EF?7@F )DAB7DF;7E "@H7EF?7@F
BDAB7DF;7E
3D7?73EGD76 ;@;F;3>>K 3F 5AEF ;@5>G6;@9
FD3@E35F;A@ 5AEFE -:753DDK;@9 3?AG@F ;@5>G67E
F:7 5AEF
A8 D7B>35;@9 B3DF
A8
3@
7J;EF;@9 ;@H7EF?7@F
BDAB7DFK 3F
F:7 F;?7
F:3F
5AEF ;E ;@5GDD76 ;8
F:7
D75A9@;F;A@ 5D;F7D;3
3D7?7F
3@6 7J5>G67EF:7 5AEFE
A8 63K FA 63KE7DH;5;@9
A8
3@ ;@H7EF?7@F
BDAB7DFK ,G4E7CG7@FFA;@;F;3> D75A9@;F;A@ ;@H7EF?7@F
BDAB7DF;7E 7J57BF >3@6
3D7 EF3F76 3F 5AEF >7EE
355G?G>3F76 67BD75;3F;A@ 3@6 3@K ;?B3;D?7@F >AEE7E

7BD75;3F;A@ ;E 5A?BGF76 GE;@9 F:7 EFD3;9:F >;@7 ?7F:A6 AH7D
F:7
7EF;?3F76 GE78G>>;H7E
A8 8;H7
FA K73DE -:7 ;@H7EF?7@F
BDAB7DF;7EN 7EF;?3F76
GE78G>>;H7E 3@6 67BD75;3F;A@ ?7F:A6 36ABF76 8AD ;@H7EF?7@F BDAB7DF;7E
3D7 D7H;7I76 3@6
36 K73D 7@6

@ ;@H7EF?7@F
BDAB7DFK ;E 67D75A9@;L76 I:7@
7;F:7DF:7K :3H7 477@
6;EBAE76 A8
ADI:7@ EG5: ;E B7D?3@7@F>KI;F:6D3I@8DA?
GE7
3@6
@A
8GFGD7 75A@A?;5
47@78;F ;E
7JB75F76 8DA? ;FE
6;EBAE3> @K 93;@ AD >AEE
A@ F:7 D7F;D7?7@F
AD 6;EBAE3>
A8
3@ ;@H7EF?7@F BDAB7DFK ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F A8 ;@5A?7 ;@
F:7 K73D
A8 D7F;D7?7@F
AD
6;EBAE3>

-D3@E87DE
3D7 ?367
FA;@H7EF?7@F
BDAB7DFK I:7@
3@6 A@>KI:7@
F:7D7;E 3 5:3@97 ;@
GE7 7H;67@576
4K 7@6;@9A8AI@7D A55GB3F;A@ 5A??7@57?7@F
A8
3@
AB7D3F;@9 >73E7 FA3@AF:7D B3DFK
AD 7@6;@9
A8 5A@EFDG5F;A@ AD
67H7>AB?7@F -D3@E87DE
3D7 ?367 8DA? ;@H7EF?7@F
BDAB7DFK I:7@
3@6 A@>KI:7@ F:7D7 ;E
3
5:3@97 ;@ GE7 7H;67@576 4K 5A??7@57?7@F
A8
F:7
A?B3@KNE
A55GB3F;A@
AD 5A??7@57?7@F
A8 67H7>AB?7@FI;F:
3 H;7IFA E3>7

"@F3@9;4>7 EE7FE "@F3@9;4>7
3EE7FE
35CG;D76 E7B3D3F7>K
3D7?73EGD76 A@ ;@;F;3> D75A9@;F;A@ 3F 5AEF -:75AEF
A8 ;@F3@9;4>7 3EE7FE
35CG;D76 ;@
34GE;@7EE 5A?4;@3F;A@ ;E
F:7
83;DH3>G7
3E
A8
F:7
63F7
A8
35CG;E;F;A@ -:7 ;@F3@9;4>7 3EE7F
B7DF3;@;@9
FA
F:7 D;9:F
A8 
FA5:3D97
GE7DE
A8
F:7
BG4>;5 E7DH;57 ;@ 5A@@75F;A@ I;F:
F:7 E7DH;57 5A@57EE;A@ 3@6 D7>3F76 3DD3@97?7@FE I3ED75A9@;L76 ;@;F;3>>K 3FF:7 83;DH3>G7A8
F:7
5A@EFDG5F;A@ E7DH;57E A>>AI;@9 ;@;F;3> D75A9@;F;A@ ;@F3@9;4>7 3EE7FE
3D753DD;76 3F 5AEF >7EE
355G?G>3F76
3?ADF;L3F;A@ 3@6 3@K ;?B3;D?7@F >AEE7E

"@F7D@3>>K 97@7D3F76 ;@F3@9;4>7 3EE7FE
7J5>G6;@9 53B;F3>;L76 67H7>AB?7@F 5AEFE
3D7
@AF
53B;F3>;L76 "@EF736 D7>3F76
7JB7@6;FGD7E
3D7 D78>75F76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 ;@
F:7 K73DF:7
7JB7@6;FGD7;E ;@5GDD76

-:7
GE78G>>;H7E A8 ;@F3@9;4>7
3EE7FE
3D7
3EE7EE76 FA47
7;F:7D 8;@;F7AD ;@678;@;F7 "@F3@9;4>7
3EE7FE I;F: 8;@;F7>;H7E
3D7
3?ADF;L76
GE;@9 F:7 EFD3;9:F >;@7 ?7F:A6
AH7D
F:7 7EF;?3F76
GE78G> 75A@A?;5 >;87
3@6 3EE7EE76 8AD ;?B3;D?7@F
I:7@7H7DF:7D7;E
3@ ;@6;53F;A@
F:3FF:7 ;@F3@9;4>7
3EE7F ?3K
47 ;?B3;D76 -:7 3?ADF;L3F;A@ B7D;A6 3@6 ?7F:A6 8AD
3@ ;@F3@9;4>7
3EE7F
I;F:
3
8;@;F7 GE78G>>;87;ED7H;7I76
3F >73EF 735: 8;@3@5;3> B7D;A6 :3@97E ;@
F:7
7JB75F76
GE78G> >;87
AD
F:7 7JB75F76
B3FF7D@A85A@EG?BF;A@
A8 8GFGD7 75A@A?;5
47@78;FE
7?4A6;76 ;@
F:7 E3;6 ;@F3@9;4>7
3EE7F ;E
355AG@F76 8AD 4K 5:3@9;@9
F:7
3?ADF;L3F;A@

69 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

B7D;A6
AD ?7F:A6 3E
3BBDABD;3F7
3@6
3D7
FD73F76 3E 5:3@97E ;@
355AG@F;@9
7EF;?3F7E -:7
3?ADF;L3F;A@ 7JB7@E7A@;@F3@9;4>7
3EE7FE
I;F:8;@;F7>;H7E ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 ;@
F:7
7JB7@E753F79ADK 5A@E;EF7@FI;F: F:7 8G@5F;A@
A8
F:7 ;@F3@9;4>7
3EE7F

"@F3@9;4>7
3EE7FE I;F: ;@678;@;F7
GE78G>>;H7E
3D7
F7EF76 8AD ;?B3;D?7@F
3@@G3>>K 7;F:7D ;@6;H;6G3>>K
AD 3F
F:7 53E:
97@7D3F;@9 G@;F >7H7> ,G5: ;@F3@9;4>7E
3D7@AF
3?ADF;L76 -:7
GE78G> >;87
A8
3@ ;@F3@9;4>7
3EE7FI;F: 3@ ;@678;@;F7>;87;ED7H;7I76
3@@G3>>K
FA67F7D?;@7
I:7F:7D
F:7 ;@678;@;F7 >;87
3EE7EE?7@F 5A@F;@G7EFA
47 EGBBADF34>7

"8
@AF
F:7 5:3@97 ;@ F:7 GE78G>>;87
3EE7EE?7@F 8DA? ;@678;@;F7
FA
8;@;F7;E ?367
A@ 3 BDAEB75F;H743E;E

3;@E
AD >AEE7E
3D;E;@9 8DA?
67D75A9@;F;A@
A8
3@ ;@F3@9;4>7 3EE7F
3D7?73EGD76 3E
F:7
6;887D7@57
47FI77@ F:7 @7F 6;EBAE3>
BDA5776E 3@6
F:7 53DDK;@9 3?AG@F
A8
F:7
3EE7F 3@6 3D7 D75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 ;@
F:7 B7D;A6
F:7
3EE7F ;E
67D75A9@;L76

,7DH;57 A@57EE;A@ DD3@97?7@FE )G4>;5 FA BD;H3F7 E7DH;57 5A@57EE;A@
3DD3@97?7@FE I:7D7 3
F:7
9D3@FAD 5A@FDA>E
ADD79G>3F7EE7DH;57E F:7 A?B3@K ?GEF
BDAH;67 I;F: F:7 ;@8D3EFDG5FGD7 FA I:A? ;F ?GEF
BDAH;67 F:7?
3@6 3FI:3F
BD;57 3@6 4
F:7
9D3@FAD 5A@FDA>EF:DAG9:
AI@7DE:;B 47@78;5;3> 7@F;F>7?7@F
AD
AF:7DI;E7
3@KE;9@;8;53@FD7E;6G3> ;@F7D7EF ;@ F:7 ;@8D3EFDG5FGD7
3F
F:7 7@6
A8
F:7
F7D?
A8
F:7
3DD3@97?7@F
3D7
355AG@F76 8AD
G@67D
F:7 BDAH;E;A@E
A8 ):;>;BB;@7
"@F7DBD7F3F;A@
" +"  O,7DH;57
A@57EE;A@ DD3@97?7@FE P

"@8D3EFDG5FGD7E GE76 ;@
3BG4>;5 FA BD;H3F7 E7DH;57 5A@57EE;A@
3DD3@97?7@F 8AD ;FE
7@F;D7
GE78G>>;87I:A>7 A8 >;87
3EE7FE 3D7 I;F:;@
F:7 E5AB7 A8
F:;E "@F7DBD7F3F;A@ ;8
F:7
5A@6;F;A@E ;@ 3 3D7?7F -:;E
"@F7DBD7F3F;A@ 3BB>;7E
FA
4AF: 3 ;@8D3EFDG5FGD7 F:3FF:7 A?B3@K 5A@EFDG5FE
AD 35CG;D7E 8DA?
3
F:;D6
B3DFK 8AD
F:7 BGDBAE7
A8
F:7
E7DH;57
3DD3@97?7@F 3@6 4
7J;EF;@9 ;@8D3EFDG5FGD7
FA I:;5: F:7 9D3@FAD
9;H7EF:7 A?B3@K
3557EE 8AD F:7 BGDBAE7A8
F:7
E7DH;57 3DD3@97?7@F

"@8D3EFDG5FGD7EI;F:;@ F:7 E5AB7 A8
F:;E
"@F7DBD7F3F;A@
3D7
@AFD75A9@;L76 3E
BDAB7DFK B>3@F 3@6 7CG;B?7@F A8
F:7
;DEF
!A>6;@9E DAGB

.@67D
F:7 F7D?E A8 5A@FD35FG3> 3DD3@97?7@FE I;F:;@ F:7 E5AB7 A8
F:;E ):;>;BB;@7
"@F7DBD7F3F;A@
F:7
A?B3@K 35FE
3E
3
E7DH;57
BDAH;67D -:7 ;DEF
!A>6;@9E DAGB5A@EFDG5FE
AD GB9D367E ;@8D3EFDG5FGD7 5A@EFDG5F;A@ AD
GB9D367 E7DH;57E
GE76
FA
BDAH;67
3
BG4>;5 E7DH;57 3@6 AB7D3F7E 3@6 ?3;@F3;@EF:3F ;@8D3EFDG5FGD7 AB7D3F;A@ E7DH;57E8AD
3
EB75;8;76 B7D;A6
A8
F;?7

-:7 ;DEF
!A>6;@9E DAGB D75A9@;L7E
3@6 ?73EGD7ED7H7@G7;@
355AD63@57 I;F:), OA@EFDG5F;A@ 5A@FD35FEP
3@6 ),  O+7H7@G7EP 8AD
F:7
E7DH;57E ;F B7D8AD?E

"8
F:7
A?B3@K
B7D8AD?E ?AD7
F:3@
A@7 E7DH;57 ; 7 5A@EFDG5F;A@
AD
GB9D367 E7DH;57E 3@6 AB7D3F;A@ E7DH;57E
G@67D
3
E;@9>7 5A@FD35F
AD 3DD3@97?7@F 5A@E;67D3F;A@ D757;H76 ADD757;H34>7 E:3>>
47
3>>A53F76
4KD787D7@57 FA
F:7 D7>3F;H783;D H3>G7E
A8
F:7 E7DH;57E
67>;H7D76 I:7@ F:7
3?AG@FE
3D7 E7B3D3F7>K ;67@F;8;34>7

0:7@
F:7
;DEF !A>6;@9E DAGBBDAH;67E 5A@EFDG5F;A@ AD
GB9D367EE7DH;57E
F:7 5A@E;67D3F;A@ D757;H76
AD D757;H34>7 4KF:7 A?B3@K ;ED75A9@;L76 3F ;FE 83;DH3>G7 -:7 ;DEF !A>6;@9E DAGB
355AG@FE 8ADD7H7@G7 3@6 5AEFE D7>3F;@9 FA5A@EFDG5F;A@
AD
GB9D367 E7DH;57E ;@
355AD63@57 I;F: ),


+7H7@G78DA? 5A@EFDG5F;A@E 5A@FD35FE ;ED75A9@;L76 43E76 A@ F:7 B7D57@F397 A8 5A?B>7F;A@ ?7F:A6 ?73EGD76 4K D787D7@57
FA
F:7 B7D57@F397
A8 5AEFE ;@5GDD76 FA
63F7 FA
7EF;?3F76
FAF3> 5AEFE 8AD
735: 5A@FD35F -:7 A?B3@K
355AG@FE 8ADD7H7@G7 3@6 5AEFE D7>3F;@9
FA
AB7D3F;A@ E7DH;57E ;@
355AD63@57 I;F:),

-:7 ;DEF
!A>6;@9E DAGB D75A9@;L7E
3
8;@3@5;3>
3EE7FFA
F:7
7JF7@F
F:3F ;F :3E
3@ G@5A@6;F;A@3> 5A@FD35FG3> D;9:FFA D757;H753E:
AD 3@AF:7D 8;@3@5;3>
3EE7F 8DA?
AD 3F
F:7 6;D75F;A@
A8
F:7 9D3@FAD 8AD
F:7
5A@EFDG5F;A@ E7DH;57E -:7
A?B3@KD75A9@;L7E 3@ ;@F3@9;4>7
3EE7F
FA
F:7 7JF7@F
F:3F ;FD757;H7E
3
D;9:F 3 >;57@E7 FA 5:3D97
GE7DE
A8
F:7
BG4>;5 E7DH;57

0:7@
F:7
;DEF !A>6;@9E DAGB:3E 5A@FD35FG3>
A4>;93F;A@E ;F ?GEF 8G>8;>>
3E 35A@6;F;A@A8;FE >;57@E73FA ?3;@F3;@ F:7 ;@8D3EFDG5FGD7 FA
3
EB75;8;76 >7H7>
A8 E7DH;5734;>;FK AD 4
FA
D7EFAD7 F:7 ;@8D3EFDG5FGD7
FA
3 EB75;8;76 5A@6;F;A@ 478AD7;F ;E
:3@676 AH7DFA
F:7
9D3@FAD
3F
F:7 7@6
A8
F:7 E7DH;57 3DD3@97?7@F ;F D75A9@;L7E 3@6 ?73EGD7EF:7E75A@FD35FG3>
A4>;93F;A@E ;@
355AD63@57 I;F:), O)DAH;E;A@E A@F;@97@F %;34;>;F;7E 3@6
A@F;@97@F EE7FE P ; 7
3FF:7
47EF 7EF;?3F7
A8
F:7
7JB7@6;FGD7
F:3FIAG>6 47 D7CG;D76
FA E7FF>7
F:7
BD7E7@F
A4>;93F;A@
3E
3FF:7 43>3@57 E:77F 63F7

"@
355AD63@57 I;F: ),  OADDAI;@9 AEFE P
4ADDAI;@9 5AEFE 3FFD;4GF34>7
FA
F:7 3DD3@97?7@F
3D7 D75A9@;L76
3E 3@
7JB7@E7;@
F:7
B7D;A6 ;@ I:;5:
F:7K
3D7;@5GDD76
G@>7EE
F:7 ;DEF !A>6;@9E DAGB:3E
3
5A@FD35FG3> D;9:FFA D757;H73@;@F3@9;4>7
3EE7F 3 D;9:FFA5:3D97
GE7DE
A8
F:7 BG4>;5 E7DH;57 "@
F:;E 53E7

70 4ADDAI;@9 5AEFE
3FFD;4GF34>7
FA
F:7
3DD3@97?7@F
3D753B;F3>;L76 6GD;@9
F:7 5A@EFDG5F;A@ B:3E7A8
F:7
3DD3@97?7@F ;@
355AD63@57
I;F:
F:7
3>>AI76 3>F7D@3F;H7
FD73F?7@F
BDAH;676
G@67D ), 

)D7B3;6 3E )D7B3;6 93E ;@5>G676 ;@ F:7 O(F:7D @A@5GDD7@F 3EE7FEP
355AG@F ;@ F:7 5A@EA>;63F76
43>3@57 E:77F 5A@E;EFE
A8
B3K?7@FE
FA
3E ,7>>7DE 8AD
G@5A@EG?76 93E
@7F A8
367 ;@
F:7 8AD?
A8 8GFGD793E
67>;H7D;7E ;@
F:7 AD67D
F:3F ;F 3DAE73@653@475A@EG?76
I;F:;@ 3 

K73D B7D;A6 )D7B3;6 93E 3D;E;@9 8DA?
F:7
D7EB75F;H7,7FF>7?7@F 9D77?7@FE ,E
3@6 )3K?7@F 787DD3> 9D77?7@FE )E
A8 ) 3@6 ) ?3K 47 D75AH7D76 G@F;> 757?47D
 
E77
'AF7
9

"8 ;F E:AG>6
47
67F7D?;@76
3F
EA?7 8GFGD7
63F7
F:3F
F:7 >;=7>;:AA6
A8
3@K 3?AG@F
A8
93E
GE397 AD
67>;H7DK ;E D7?AF7
F:7@
F:7 D7>7H3@F 3?AG@F
677?76
@A
>A@97DD73>;L34>7 I;>> 47 ID;FF7@ A88 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

H3>G3F;A@ 3@6 JB>AD3F;A@ EE7FE >> 5AEFE ;@5GDD76 ;@
F:7
97A>A9;53>
3@6 97AB:KE;53> 35F;H;F;7EEG5:
3E 5AEFE
A8
FABA9D3B:;53> 97A>A9;53> 3@6 97AB:KE;53> EFG6;7E D;9:FE
A8
3557EE
FA
BDAB7DF;7E
FA
5A@6G5F
F:AE7 EFG6;7E E3>3D;7E
3@6
AF:7D 7JB7@E7E
A8
97A>A9;EFE 97AB:KE;53> 5D7IE
AD
AF:7DE 5A@6G5F;@9 F:AE7 EFG6;7E
3D75:3D976
FA7JB7@E7;@ F:7 K73DEG5: 3D7;@5GDD76

"8
F:7
D7EG>FE
A8 ;@;F;3> 97A>A9;53>
3@6
97AB:KE;53>
35F;H;F;7ED7H73>
F:7
BD7E7@57
A8 97AF:7D?3> D7EAGD57 F:3FI;>> D7CG;D78GDF:7D
7JB>AD3F;A@ 3@6 6D;>>;@9 EG4E7CG7@F 7JB>AD3F;A@ 3@6 6D;>>;@9 5AEFE
3D7
355G?G>3F76 3@6 6787DD76
G@67DF:7 OH3>G3F;A@ 3@6 7JB>AD3F;A@ 3EE7FEP
355AG@F ;@5>G676 ;@ OAF:7D
@A@5GDD7@F 3EE7FEP 355AG@F ;@ F:7 5A@EA>;63F76
43>3@57 E:77F

-:7E75AEFE ;@5>G67
F:7 8A>>AI;@9

3 5AEFE
3EEA5;3F76 I;F:
F:7 5A@EFDG5F;A@
A8
F7?BAD3DK 835;>;F;7E 4 5AEFE
A8
6D;>>;@9 7JB>AD3FADK 3@6 7JB>AD3FADK FKB7 EFD3F;9D3B:;5 F7EF I7>>E B7@6;@9 67F7D?;@3F;A@
A8 I:7F:7D
F:7 I7>>E 53@
BDA6G57
BDAH7@ D7E7DH7E 3@6 5 5AEFE
A8 >A53> 36?;@;EFD3F;A@ 8;@3@57
97@7D3> 3@6 E75GD;FK E7DH;57E EGD8357 835;>;F;7E
3@6
AF:7D >A53> 5AEFE ;@
BD7B3D;@9 8AD
3@6 EGBBADF;@9
F:7
6D;>>;@9
35F;H;F;7E ;@5GDD76
6GD;@9 F:7 6D;>>;@9
A8
7JB>AD3FADK I7>>E

"8
F:7
D7EG>FE
A8
F:7
F7EFE A@
F:7 6D;>>76
7JB>AD3FADK I7>>ED7H73>
F:3FF:7E7 I7>>E 53@@AF BDA6G57
BDAH7@ D7E7DH7E
F:7 53B;F3>;L76 5AEFE
3D75:3D976
FA7JB7@E7
7J57BFI:7@ ?3@397?7@F
675;67E
FA GE7
F:7 G@BDA6G5F;H7 I7>>E 8ADD75K5>;@9
ADI3EF76;EBAE3>

(@57
F:7 F75:@;53> 873E;4;>;FK
3@6 5A??7D5;3> H;34;>;FK
A8
F:7
BDA<75F
FABDA6G57
BDAH7@ D7E7DH7E 3D7 7EF34>;E:76
F:7
7JB>AD3F;A@
3@6 7H3>G3F;A@ 3EE7FE E:3>>
47 D75>3EE;8;76
FA7;F:7D ;@F3@9;4>7
3EE7F AD 5A@57EE;A@ D757;H34>7 3F ;FE 83;DH3>G73FF:7 63F7A8D75>3EE;8;53F;A@

+7E73D5: 3@6 7H7>AB?7@F
AEFE +7E73D5: 5AEFE
3D7
7JB7@E76
3E ;@5GDD76
7H7>AB?7@F
7JB7@6;FGD7;@5GDD76
A@ 3@ ;@6;H;6G3> BDA<75F ;E 53DD;76 8ADI3D6 I:7@ ;FE 8GFGD7 D75AH7D34;>;FK 53@ D73EA@34>K
47 D793D676 3E
3EEGD76 @K
7JB7@6;FGD7 53DD;76 8ADI3D6;E 3?ADF;L76 ;@ >;@7 I;F:
F:7
7JB75F76 8GFGD7 E3>7E 8DA?
F:7
D7>3F76
BDA<75F (F:7DI;E7 67H7>AB?7@F 5AEFE
3D7
7JB7@E76 3E ;@5GDD76

-:7 53DDK;@9 H3>G7
A8
67H7>AB?7@F 5AEFE ;ED7H;7I76 8AD ;?B3;D?7@F
3@@G3>>KI:7@
F:7
3EE7F ;E @AFK7F ;@ GE7
AD ?AD78D7CG7@F>KI:7@3@;@6;53F;A@
A8 ;?B3;D?7@F
3D;E7E
6GD;@9 F:7 D7BADF;@9 K73D

74F
"EEG3@57
AEFE JB7@6;FGD7E ;@5GDD76 ;@ 5A@@75F;A@ I;F:3H3;>?7@FE
A8 >A@9 F7D?
674F
3@6 ;EEG3@57E
A8
4A@6E
3D7 6787DD76
3@6
3?ADF;L76
GE;@9
78875F;H7;@F7D7EF ?7F:A6 AH7D
F:7
F7D?
A8
F:7
>A3@E
3@6 4A@6E

74F ;EEG3@57 5AEFE
3D7@7FF76
393;@EF
F:7 D7>3F76 >A@9 F7D?
674F
3@6
4A@6E B3K34>7 3>>A53F76 5ADD7EBA@6;@9>K FA
F:7 5GDD7@F 3@6 @A@5GDD7@F
BADF;A@E

ADDAI;@9 AEFE ADDAI;@9 5AEFE ;@5>G67 ;@F7D7EF 5:3D97E 3@6 AF:7D 5AEFE ;@5GDD76 ;@ 5A@@75F;A@ I;F: F:7 4ADDAI;@9 A8 8G@6E ;@5>G6;@9 7J5:3@97 6;887D7@57E
3D;E;@9 8DA? 8AD7;9@ 5GDD7@5K 4ADDAI;@9E
GE76
FA
8;@3@57 F:7
BDA<75F FA
F:7
7JF7@F
F:3FF:7K
3D7 D793D676
3E 3@ 36

71 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

ADDAI;@9 5AEFE
3D7
97@7D3>>K
7JB7@E76 3E ;@5GDD76 ADDAI;@9 5AEFE
3D753B;F3>;L76 ;8
F:7K
3D7
6;D75F>K 3FFD;4GF34>7 FA F:7 35CG;E;F;A@ 5A@EFDG5F;A@
AD BDA6G5F;A@
A8
3
CG3>;8K;@9
3EE7FG@F;> EG5:
F;?7
F:3F
F:7
3EE7F ;EEG4EF3@F;3>>KD736K 8AD ;FE ;@F7@676
GE7
ADE3>7 I:;5:
@757EE3D;>KF3=7E
3
EG4EF3@F;3> B7D;A6 A8
F;?7 3B;F3>;L3F;A@ A8
4ADDAI;@9 5AEFE 5A??7@57EI:7@ F:7
35F;H;F;7EFA
BD7B3D7 F:7
3EE7F
3D7;@
BDA9D7EE
3@6
7JB7@6;FGD7E
3@6
4ADDAI;@9 5AEFE
3D7
47;@9 ;@5GDD76
"8
F:7
D7EG>F;@9 53DDK;@9 3?AG@F A8
F:7
3EE7F 7J5776E ;FE D75AH7D34>7
3?AG@F
3@ ;?B3;D?7@F >AEE ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

)DAH;E;A@E
3@6
A@F;@97@5;7E )DAH;E;A@E
3D7 D75A9@;L76 I:7@ F:7 ;DEF
!A>6;@9E DAGB:3E
3BD7E7@F A4>;93F;A@ >793> AD 5A@EFDG5F;H7 3
3E
3
D7EG>F
A8
3
B3EF 7H7@F 4;F ;E
BDA434>7
F:3F
3@ AGF8>AI A8 D7EAGD57E
7?4A6K;@9 75A@A?;5
47@78;FE I;>> 47 D7CG;D76
FA
E7FF>7
F:7
A4>;93F;A@ 3@6 5
3
D7>;34>7
7EF;?3F7 53@ 47 ?367
A8
F:7
3?AG@F
A8
F:7 A4>;93F;A@ 0:7D7
F:7
;DEF !A>6;@9E DAGB7JB75FE EA?7
AD
3>>
A8
F:7 BDAH;E;A@ FA
47
D7;?4GDE76 8AD 7J3?B>7
G@67D
3@ ;@EGD3@57 5A@FD35F
F:7 D7;?4GDE7?7@F ;ED75A9@;L76
3E
3
E7B3D3F73EE7F 4GF A@>K I:7@ F:7 D7;?4GDE7?7@F ;EH;DFG3>>K 57DF3;@ -:7 7JB7@E7 D7>3F;@9 FA
3@K BDAH;E;A@ ;ED75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
@7F
A8
3@KD7;?4GDE7?7@F

"8
F:7
78875F
A8
F:7
F;?7 H3>G7 A8 ?A@7K ;E ?3F7D;3>
BDAH;E;A@E
3D7
67F7D?;@76 4K 6;E5AG@F;@9 F:7 7JB75F76 8GFGD753E:8>AIE 3F
3BD7 F3JD3F7 F:3F D78>75FE 5GDD7@F ?3D=7F
3EE7EE?7@F
A8
F:7
F;?7 H3>G7 A8 ?A@7K
3@6 I:7D73BBDABD;3F7 F:7 D;E=EEB75;8;5 FA
F:7 >;34;>;FK 0:7D7
6;E5AG@F;@9 ;E
GE76
F:7 ;@5D73E7;@F:7 BDAH;E;A@ 6G7 FA
F:7 B3EE397 A8
F;?7 ;E D75A9@;L76
3E 3@
355D7F;A@ ;@5>G676
G@67DO ;@3@57 5AEFP
355AG@F ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

-:7 ;DEF
!A>6;@9E DAGB D75A9@;L76
BDAH;E;A@E
3D;E;@9 8DA? >793>
3@6 AD 5A@EFDG5F;H7
A4>;93F;A@ 3EEA5;3F76 I;F:
F:7 5AEF
A8 6;E?3@F>;@9
3@6 D7?AH;@93@;F7?
A8
BDAB7DFK B>3@F
3@6
7CG;B?7@F 3@6 D7EFAD;@9 F:7 E;F7 I:7D7;F ;E >A53F76 -:7 A4>;93F;A@
A55GDE
7;F:7DI:7@
F:7
3EE7F ;E
35CG;D76
AD
3E 3 5A@E7CG7@57
A8
GE;@9 F:7 3EE7F 8AD
F:7
BGDBAE7
A8
97@7D3F;@9 7>75FD;5;FK 6GD;@9 3 B3DF;5G>3D
B7D;A6  5ADD7EBA@6;@9 3EE7F ;ED75A9@;L76 ;@
BDAB7DFK B>3@F
3@6
7CG;B?7@F ;E?3@F>;@9 5AEFE
3D7
BDAH;676 3F F:7
BD7E7@FH3>G7
A8
7JB75F76 5AEFE
FA
E7FF>7
F:7
A4>;93F;A@
GE;@9
7EF;?3F76 53E:8>AIE -:753E:8>AIE 3D7
6;E5AG@F76
3F
3
5GDD7@F BD7 F3JD3F7 F:3FD78>75FE
F:7 D;E=EEB75;8;5
FA
F:7 6;E?3@F>;@9 >;34;>;FK -:7 G@I;@6;@9 A8
F:7
6;E5AG@F ;E
7JB7@E76 3E ;@5GDD76 3@6 D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
3E
355D7F;A@ 7JB7@E7 -:7
7EF;?3F76 8GFGD75AEFE
A8
6;E?3@F>;@9 3D7 D7H;7I76 3@@G3>>K 3@6 36;@9
BDAH;E;A@
F:3FD7EG>F 8DA? 3 5:3@97 ;@
F:7 5GDD7@F 47EF
7EF;?3F7
A8 53E:8>AIE D7CG;D76 FA E7FF>7 F:7 A4>;93F;A@
AD 3 5:3@97 ;@ F:7 6;E5AG@FD3F7
3D7 36676 FA AD
676G5F76 8DA?
F:7
3?AG@FD75A9@;L76
3EF:7 D7>3F76
3EE7F

A@F;@97@F >;34;>;F;7E
3D7@AFD75A9@;L76 ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
4GF
3D76;E5>AE76 ;@
F:7 @AF7EFA5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
G@>7EE
F:7 BAEE;4;>;FK A8
3@
AGF8>AI A8 D7EAGD57E
7?4A6K;@9 75A@A?;5
47@78;FE ;ED7?AF7
A@F;@97@F
3EE7FE
3D7
@AFD75A9@;L76 4GF 3D76;E5>AE76 ;@
F:7 @AF7E
FA 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE I:7@ 3@ ;@8>AI
A8
75A@A?;5
47@78;FE ;E BDA434>7

+7H7@G7
+75A9@;F;A@ +7H7@G7;ED75A9@;L76
FA F:7
7JF7@FF:3F ;F ;E
BDA434>7
F:3F
F:7 75A@A?;5
47@78;FE
3EEA5;3F76 I;F:
F:7 FD3@E35F;A@ I;>> 8>AIFA
F:7 ;DEF
!A>6;@9E DAGB 3@6
F:7
3?AG@F
A8 D7H7@G7 53@ 47 ?73EGD76 D7>;34>K

-:7 8A>>AI;@9 EB75;8;5 D75A9@;F;A@ 5D;F7D;3 ?GEF
3>EA
47 ?7F
478AD7 D7H7@G7;ED75A9@;L76

#'2+
5, 2+):8/)/:? +7H7@G78DA? E3>7
A8
7>75FD;5;FK ;@ F:7 53E7A8 )
3@6 ) ;E
43E76 A@ F:7 D7EB75F;H7))
A8 ) 3@6 ) I:;5: CG3>;8K 3E >73E7E
A@
F:7 43E;E
F:3F )
3@6
) E7>> 3>>
A8 F:7;D AGFBGF FA &+%( -:7E7
39D77?7@FE 53>> 8AD 3
F3=7 AD B3K 3DD3@97?7@FI:7D7B3K?7@F ;E ?367 BD;@5;B3>>K
A@
F:7
43E;E A8
F:7
3H3;>34;>;FK A8
F:7
BAI7D B>3@FE
3@6
@AF
A@
35FG3> 67>;H7D;7E
A8 7>75FD;5;FK 97@7D3F76 -:7E7
3DD3@97?7@FE
3D7
67F7D?;@76
FA47
AB7D3F;@9 >73E7EE;@57
3
E;9@;8;53@F
BADF;A@
A8
F:7
D;E=E
3@6
47@78;FE
A8 AI@7DE:;B
A8
F:7
3EE7FE
3D7 D7F3;@76
4K ) 3@6 )

+7H7@G78DA? E3>7
A8
7>75FD;5;FK ;E 5A?BAE76
A8 8;J76 53B35;FK 877E 8;J76 3@6 H3D;34>7
AB7D3F;@9 3@6 ?3;@F7@3@57 877E 8G7> I:77>;@9
3@6B;B7>;@75:3D97E E3>7EF3J
3@6 EGBB>7?7@F3> 877E -:7
BADF;A@ D7>3F76
FA
F:7 8;J76 53B35;FK 877E
3@6
8;J76 AB7D3F;@9 3@6 ?3;@F7@3@57 877E ;E 5A@E;67D76 3E
AB7D3F;@9 >73E7 5A?BA@7@F 3@6 EG5:
877E
3D7 D75A9@;L76 A@ 3 EFD3;9:F >;@7 43E;E 43E76 A@ F:7
35FG3> @7F 67B7@634>7 53B35;FK
F7EF76 BDAH7@ AH7D
F:7
F7D?E
A8 F:7 D7EB75F;H7 ))E /3D;34>7 AB7D3F;@9 3@6 ?3;@F7@3@57 877E 8G7> I:77>;@9
3@6B;B7>;@75:3D97E
3@6
EGBB>7?7@F3> 877E
3D7 D75A9@;L76 ?A@F:>K 43E76 A@ F:7
35FG3>
7@7D9K
67>;H7D76

72 +7H7@G78DA? E3>7
A8
7>75FD;5;FK 5AH7D76 I;F: E7DH;57 5A@57EE;A@ 3DD3@97?7@FE E77
'AF7   ;E 5A@EG??3F76 I:7@7H7DF:7
7>75FD;5;FK 97@7D3F76 ;E
FD3@E?;FF76 FA
F:7
FD3@E?;EE;A@ >;@7 A8
F:7
4GK7D 8AD
3
5A@E;67D3F;A@ ,3>7
A8 7>75FD;5;FK ;E 43E76 A@ 43E7
BD;57
B7D =;>A 03FF
:AGD =0: A8
7>75FD;5;FK 67>;H7D76 EG4<75F
FA
;@8>3F;A@ 36>75F;A@A85A@57EE;A@ D757;H34>7E 3@6 D7>3F76 8;@3@57 ;@5A?7

"+<+4;+
,853 #'2+
5, #:+'3 ,3>7
A8 EF73? ;ED75A9@;L76 I:7@ EF73?
97@7D3F76
AD ;FE
4K BDA6G5F B3EE7E
FA
F:7 8>AI ?7F7DE ;@EF3>>76 3FF:7 ;@F7D8357 BA;@F 8AD 5A@H7DE;A@
4KF:7 4GK7D ;@FA7>75FD;5;FK ,3>7 A8 EF73? ;ED75A9@;L76 43E76 A@
F:7 E3>7E
BD;57 B7D =0:
A8
9DAEE
AD
@7F
97@7D3F;A@ 3@6 9G3D3@F776
F3=7 AD B3K 3F 57DF3;@ B7D57@F397
B>3@F 835FAD EG4<75FFA;@8>3F;A@ 36>75F;A@
A8 5A@57EE;A@ D757;H34>7E 3@6 D7>3F76 8;@3@57 ;@5A?7

"+<+4;+
,853
8/22/4- #+8>;@9 E7DH;57E
3D7 D7@67D76

"+<+4;+
,853
549:8;):/54
54:8'):9 +7H7@G7;ED75A9@;L76 43E76 A@ F:7 B7D57@F397
A8 5A?B>7F;A@ ?7F:A6
A8
355AG@F;@9
GE;@9 EGDH7KE A8
IAD=
B7D8AD?76 4K 3@ ;@F7D@3>
CG3@F;FK EGDH7KADFA?73EGD7
F:7
EF397
A8 5A?B>7F;A@

A@FD35F 5AEFE ;@5>G67 3>>
6;D75F ?3F7D;3>E >34AD 5AEFE 3@6 ;@6;D75F 5AEFE D7>3F76 FA5A@FD35F
B7D8AD?3@57 :3@97E ;@ ;FK ;@5>G6;@9 F:AE7
3D;E;@9 8DA? 5A@FD35F
B7@3>FK BDAH;E;A@E 3@6 8;@3> 5A@FD35FE7FF>7?7@FE
I:;5: ?3KD7EG>F ;@ D7H;E;A@EFA
7EF;?3F76 5AEFE 3@6 9DAEE ?3D9;@E
3D7 D75A9@;L76 ;@ F:7 B7D;A6 ;@ I:;5:
F:7
D7H;E;A@E 3D7
67F7D?;@76 >3;?E 8AD 366;F;A@3> 5A@FD35FD7H7@G7E
3D7 D75A9@;L76 I:7@
@79AF;3F;A@E
:3H7 D735:76
3@ 36H3@576 EF397 EG5: F:3F ;F ;E
BDA434>7
F:3FF:7 5GEFA?7DI;>>
3557BF
F:7 5>3;?
3@6
F:7
3?AG@FF:3FI;>> 47
3557BF76
4KF:7 5GEFA?7D 53@
47
?73EGD76 D7>;34>K /3D;3F;A@
AD67DE
3D7;@5>G676;@5A@FD35FD7H7@G7 I:7@ ;F ;E
BDA434>7 F:3FF:7 5GEFA?7D
I;>> 3BBDAH7 F:7 H3D;3F;A@ 3@6
F:7
3?AG@F A8 D7H7@G73D;E;@9 8DA?
F:7
H3D;3F;A@ 3@6 F:7 3?AG@F
A8 D7H7@G753@
47
D73EA@34>K ?73EGD76 D7>;34>K

AEFE
3@6 7EF;?3F76 73D@;@9E ;@ 7J57EE
A8 3?AG@FE
4;>>76 A@
G@5A?B>7F76 5A@FD35FE
355AG@F76 8AD
G@67D F:7 B7D57@F397A85A?B>7F;A@ ?7F:A6
3D75>3EE;8;76
3E 5GDD7@F
3EE7FE
G@67DF:7 OAEFE
3@6 7EF;?3F76 73D@;@9E ;@
7J57EE
A8
4;>>;@9E
A@
G@5A?B>7F76 5A@FD35FEP
355AG@F ;@
F:7 5A@EA>;63F76
43>3@57 E:77F +7F7@F;A@ED757;H34>7E 3D7 ;@5>G676
G@67D
F:7 O-D367 3@6 AF:7DD757;H34>7EP
355AG@F ;@ F:7 5A@EA>;63F76 43>3@57 E:77FE

#'2+
5, #+8;@7 E7DH;57E 3@6 B3D=5:3D97E
3D7 D75A9@;L76 I:7@ E7DH;57E 3D7 D7@67D76 I:;>7 D7H7@G78ADI3F7D
6;EFD;4GF;A@ 3@6 I3EF7 I3F7D
FD73F?7@F
3D7 D75A9@;L76 A@
3@
355DG3>
43E;E
GE;@9
F:7 ?A@F:>K ?7F7DD736;@9 A8
F:7
5GEFA?7DEN I3F7D 5A@EG?BF;A@ 3@6 I3EF7 I3F7D 6;E5:3D97 D7EB75F;H7>K 6>;@9E 8AD
B;B7>;@7 E7DH;57E
AH7D 3@6 34AH7 F:7 43E7 5:3D97E
3D7 D75AD676 3F
F:7
F;?7
A8 E7FF>7?7@FI;F: E:;BB7DE -:7E7
3D7;@5>G676
G@67D
F:7
OA@FD35FE 3@6 E7DH;57EP
355AG@F ;@
F:7 D7H7@G7 E75F;A@
A8
F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7

#'2+
5, $8'49654*+89 '4* '-4+:/) '8*9 +7H7@G7
8DA? E3>7
A8
FD3@EBA@67DE
3@6
?39@7F;5 53D6E E77 'AF74K &'- ;ED75A9@;L76 I:7@ F:7 E;9@;8;53@FD;E=E
3@6
D7I3D6E A8
AI@7DE:;B
A8
F:7 9AA6E
:3H7 B3EE76
FA
F:7
4GK7D @AD?3>>KGBA@ 67>;H7DK

#'2+
5,
"+'2 9:':+ +7H7@G78DA?
3@6
5AEF
A8 E3>7 A8 5A?B>7F76 D73>
7EF3F7BDA<75FE ;E
355AG@F76 8AD GE;@9 F:7 8G>>
355DG3> ?7F:A6 -:7
B7D57@F397
A8 5A?B>7F;A@ ?7F:A6 ;E
GE76
FA
D75A9@;L7 ;@5A?7
8DA? E3>7E
A8
BDA<75FE I:7D7 F:7 A?B3@K :3E ?3F7D;3> A4>;93F;A@EG@67DF:7 E3>7E 5A@FD35F
FA
5A?B>7F7 F:7 BDA<75F
38F7D
F:7 BDAB7DFK ;EEA>6 .@67D
F:7 B7D57@F397
A8 5A?B>7F;A@ ?7F:A6 D7H7@G7 3@6 5AEFE
3D7 ?73EGD76
BD;@5;B3>>K A@ F:7
43E;E
A8
F:7 D3F;A
A8
35FG3> 5AEFE ;@5GDD76
FA
63F7AH7DF:7
7EF;?3F76
FAF3> 5AEFE
A8
F:7
BDA<75F

7;/:? /4
+: '84/4-9 -:7 ;DEF
!A>6;@9E DAGB D75A9@;L7E ;FE E:3D7;@F:7 @7F ;@5A?7

A8
3EEA5;3F7E BDABADF;A@3F7 FA
F:7 7CG;FK ;@
F:7 HAF;@9 E:3D7E
A8 EG5:
3EEA5;3F7E ;@
355AD63@57 I;F: F:7 7CG;FK ?7F:A6 A8
355AG@F;@9 8AD ;@H7EF?7@FE

4:+8+9: 4)53+ "@F7D7EF ;@5A?7 ;ED75A9@;L76
3EF:7 ;@F7D7EF
355DG7E GE;@9 F:7 78875F;H7;@F7D7EF D3F7 I:;5: ;E
F:7 D3F7 F:3F 7J35F>K
6;E5AG@FE
7EF;?3F76 8GFGD753E: D757;BFE
F:DAG9: F:7
7JB75F76 >;87
A8
F:7
8;@3@5;3> ;@EFDG?7@F
FA
F:7 @7F 53DDK;@9 3?AG@F
A8
F:7
8;@3@5;3> 3EE7F
F3=;@9 ;@FA 355AG@F
F:7
78875F;H7 K;7>6
A@ F:7 3EE7F

73 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

/67DEN D;9:FFA D757;H7
F:7
B3K?7@F ;E 7EF34>;E:76

"+4: 5,
4<+9:3+4: !856+8:/+9 +7@F3> ;@5A?7 8DA?
AB7D3F;@9 >73E73DD3@97?7@FE ;ED75A9@;L76 A@ 3 EFD3;9:F >;@7 43E;E AH7D
F:7 F7D?A8
F:7
>73E7

;'8'4:++ ++9 G3D3@F77 877E
3D7 D75A9@;L76 ;@
355AD63@57 I;F: F:7 F7D?E A8
F:7
39D77?7@F

.@73D@76 +7H7@G7 .@73D@76 D7H7@G7;@5>G676 ;@ O(F:7D @A@5GDD7@F >;34;>;F;7EP
355AG@F ;@ F:7 5A@EA>;63F76
43>3@57 E:77F D7BD7E7@FE B3K?7@FE 4K
&+%( 8AD
G@5A@EG?76 93E ;@ 5A@@75F;A@ I;F: F:7 D7EB75F;H7,E 3@6 )E A8 )
3@6
) I:;5: ?3K
47 3H3;>76
A8
G@F;> 757?47D
  ;@ 53E7 F:7 35FG3>
93E 5A@EG?76 4K F:7 BAI7D B>3@FE ;@
97@7D3F;@9 7>75FD;5;FK
FA
&+%(
7J5776E
F:7;DD7EB75F;H7
F3=7 AD B3KCG3@F;F;7E 3F 3@K 9;H7@ K73D

AD7;9@
GDD7@5K -D3@E35F;A@E
3@6 -D3@E>3F;A@E -:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3D7
BD7E7@F76 ;@ ):;>;BB;@7 B7EA I:;5: ;EF:7 ;DEF !A>6;@9E DAGBNE 8G@5F;A@3> 3@6
BD7E7@F3F;A@ 5GDD7@5K >>EG4E;6;3D;7E
3@6
3EEA5;3F7E 7H3>G3F7 F:7;D
BD;?3DK 75A@A?;5
3@6
AB7D3F;@9
7@H;DA@?7@F
3@6 67F7D?;@7
F:7;D 8G@5F;A@3> 5GDD7@5K
3@6 ;F7?E ;@5>G676 ;@ F:7 8;@3@5;3> EF3F7?7@FE
A8
735:
7@F;FK
3D7;@;F;3>>K ?73EGD76
GE;@9 F:3F 8G@5F;A@3> 5GDD7@5K -D3@E35F;A@E ;@ 8AD7;9@ 5GDD7@5;7E
3D7;@;F;3>>KD75AD676 ;@ F:7 8G@5F;A@3> 5GDD7@5KD3F7
BD7H3;>;@9
A@
F:7 B7D;A6
A8
F:7 FD3@E35F;A@ &A@7F3DK
3EE7FE
3@6 >;34;>;F;7E
67@A?;@3F76 ;@ 8AD7;9@ 5GDD7@5K
3D7 D7EF3F76
3F
F:7 8G@5F;A@3> 5GDD7@5K 5>AE;@9 D3F7
A8
7J5:3@97
BD7H3;>;@9
3FF:7 43>3@57 E:77F 63F7 >> 6;887D7@57E
3D7 D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

'A@?A@7F3DK ;F7?E
F:3F
3D7?73EGD76 ;@ F7D?E
A8
:;EFAD;53> 5AEF ;@ 38AD7;9@ 5GDD7@5K 3D7
FD3@E>3F76
GE;@9 F:7 7J5:3@97 D3F7E
3E
3F
F:7
63F7E
A8
F:7 ;@;F;3>
FD3@E35F;A@E 'A@?A@7F3DK ;F7?E ?73EGD76
3F
83;DH3>G7;@
3
8AD7;9@ 5GDD7@5K
3D7 FD3@E>3F76
GE;@9
F:7
7J5:3@97 D3F7E 3F
F:7
63F7 I:7@ F:7 83;DH3>G7 I3E
67F7D?;@76

J57BF 8AD ;DEF 7@ DAGB ,+" ;DEF ,G?;67@
;D5G;FE
"@5  ," )) ;DEF ):;>75 ,A>3D ! "@F7D@3F;A@3> )! G@6 3@6 )! /7@FGD7 I:;5:
:3H7 ;67@F;8;76
F:7 ., 6A>>3D
3EF:7;D 8G@5F;A@3> 5GDD7@5K 3>>AF:7DEG4E;6;3D;7E 5A@E;67D
F:7 ):;>;BB;@7 B7EA
3EF:7;D 8G@5F;A@3> 5GDD7@5K E
A8
F:7
D7BADF;@9 63F7
F:7
3EE7FE 3@6 >;34;>;F;7E
A8
F:7 ;DEF 7@ DAGB ,+" ," )) ;DEF ):;>75 ,A>3D !
"@F7D@3F;A@3> )! G@6 3@6 )! /7@FGD7
3D7
FD3@E>3F76 ;@FA
F:7
BD7E7@F3F;A@ 5GDD7@5K A8 )3D7@F A?B3@K
3FF:7 5>AE;@9 D3F7
3F
F:7 43>3@57 E:77F 63F7
3@6
F:7;DEF3F7?7@FE
A8 ;@5A?7
3D7
FD3@E>3F76 GE;@9 F:7 I7;9:F76 3H7D397
7J5:3@97 D3F78AD
F:7 K73D -:7
7J5:3@97 6;887D7@57E
3D;E;@9 A@
F:7 FD3@E>3F;A@
3D7 F3=7@
6;D75F>KFA F:7 OG?G>3F;H7-D3@E>3F;A@ 6;63F76 43>3@57 E:77F

.BA@ 6;EBAE3>
A8
3@K
A8
F:7E7 EG4E;6;3D;7E F:7
6787DD76 5G?G>3F;H7 3?AG@FD75A9@;L76 ;@ 7CG;FK D7>3F;@9 FA
F:3F B3DF;5G>3DEG4E;6;3DK I;>> 47 D75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

%73E7E -:7
67F7D?;@3F;A@
A8 I:7F:7D
3@
3DD3@97?7@F ;E AD 5A@F3;@E
3>73E7;E
43E76 A@ F:7 EG4EF3@57
A8
F:7 3DD3@97?7@F
3@6 D7CG;D7E 3@
3EE7EE?7@F
A8 I:7F:7DF:7 8G>8;>>?7@F
A8
F:7
3DD3@97?7@F ;E
67B7@67@F A@ F:7
GE7
A8
3
EB75;8;5
3EE7F AD
3EE7FE
3@6 F:7 3DD3@97?7@F 5A@H7KE
3
D;9:F
FA GE7 F:7
3EE7F  D73EE7EE?7@F ;E ?367
38F7D ;@57BF;A@
A8
F:7 >73E7
A@>K ;8
A@7 A8
F:7
8A>>AI;@9 3BB>;7E

3 F:7D7;E
3
5:3@97 ;@ 5A@FD35FG3> F7D?E
AF:7D
F:3@ 3 D7@7I3>
AD 7JF7@E;A@
A8
F:7 3DD3@97?7@F 4 3 D7@7I3>
ABF;A@ ;E
7J7D5;E76
AD
7JF7@E;A@
9D3@F76 G@>7EE
F:3F
F7D?
A8
F:7
D7@7I3>
AD 7JF7@E;A@ I3E ;@;F;3>>K ;@5>G676 ;@
F:7 >73E7
F7D? 5 F:7D7;E
3
5:3@97 ;@
F:7
67F7D?;@3F;A@ A8 I:7F:7D 8G>8;>>?7@F ;E
67B7@67@F A@
3
EB75;8;76
3EE7F
AD 6 F:7D7;E
3
EG4EF3@F;3> 5:3@97
FA
F:7 3EE7F

0:7D7
3
D73EE7EE?7@F ;E ?367 >73E7 355AG@F;@9 I;>> 5A??7@57
AD 573E78DA?
F:7
63F7 I:7@
F:7 5:3@97 ;@ 5;D5G?EF3@57E
93H7 D;E7
FA
F:7 D73EE7EE?7@F 8ADE57@3D;AE 3 5
AD 6
34AH7
3@6
3FF:7
63F7 A8 D7@7I3>
AD
7JF7@E;A@ B7D;A6 8ADE57@3D;A 4

%73E7EI:7D7 F:7 >7EEADD7F3;@EEG4EF3@F;3>>K 3>> F:7 D;E=E
3@6
47@78;FE
A8 AI@7DE:;B
A8
F:7 3EE7F
3D7 5>3EE;8;76
3E AB7D3F;@9 >73E7E

"@
53E7EI:7D7 F:7 A?B3@K 35FE
3E
3
>7EE77 AB7D3F;@9 >73E7B3K?7@FE 3D7 D75A9@;L76 3E
7JB7@E7;@F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
A@
3
EFD3;9:F >;@7 43E;E AH7D
F:7 >73E7 F7D?

!AI7H7D ;@53E7EI:7D7
F:7
A?B3@K ;E 3>7EEAD
F:7 ;@;F;3> 6;D75F 5AEFE ;@5GDD76 ;@ @79AF;3F;@9 3@

74 AB7D3F;@9 >73E7
3D7
36676 FA
F:7 53DDK;@9
3?AG@F A8
F:7
>73E76 3EE7F
3@6 D75A9@;L76 AH7D
F:7 >73E7 F7D? A@
F:7 E3?7
43E7E
3ED7@F3> ;@5A?7

A@F;@97@FD7@FE
3D7 D75A9@;L76 3ED7H7@G7;@
F:7 K73D ;@ I:;5: F:7K
3D773D@76

+7F;D7?7@F
AEFE 3@6 (F:7D )AEF +7F;D7?7@F 7@78;FE -:7 )3D7@F A?B3@K 3@6 57DF3;@
A8 ;FE EG4E;6;3D;7E :3H76;EF;@5F 8G@676 @A@5A@FD;4GFADK 678;@76 47@78;F D7F;D7?7@F
B>3@E 3>EA
BDAH;67E 8AD
BAEF D7F;D7?7@F ?76;53>
3@6>;87;@EGD3@57
47@78;FE
FA
;FE B7D?3@7@F
7?B>AK77E I:;5:
3D7
G@8G@676 -:7
B>3@E 5AH7D 3>> B7D?3@7@F
7?B>AK77E
735: 36?;@;EF7D76
4KF:7;DD7EB75F;H7 D7F;D7?7@F 5A??;FF77

-:7 5AEF
A8
BDAH;6;@9
47@78;FE
G@67D
F:7 678;@76 47@78;F
B>3@E ;E 67F7D?;@76
GE;@9 F:7
BDA<75F76 G@;F 5D76;F ?7F:A6

.@67D
F:;E ?7F:A6
F:7 5GDD7@FE7DH;57 5AEF ;E
F:7
BD7E7@FH3>G7A8D7F;D7?7@F
47@78;FE
A4>;93F;A@ ;@ F:7 8GFGD7 I;F: D7EB75FFA E7DH;57ED7@67D76 ;@
F:7 5GDD7@F B7D;A6 5FG3D;3> 93;@E
3@6 >AEE7E
3D;E;@9 8DA?
7JB7D;7@57
36 3EEG?BF;A@E
3D75D76;F76 FA
AD 5:3D976 393;@EF ;@5A?7 I:7@ F:7 @7F 5G?G>3F;H7 G@D75A9@;L76
35FG3D;3>
93;@E 3@6 >AEE7E 8AD
735: ;@6;H;6G3>
B>3@ 3FF:7 7@6 A8
F:7
BD7H;AGE D7BADF;@9 K73D
7J577676   A8
F:7
:;9:7D A8
F:7
678;@76
47@78;F
A4>;93F;A@ 3@6 F:7 83;DH3>G7A8
B>3@
3EE7FE
3F
F:3F 63F7 -:7E7
93;@E
AD >AEE7E
3D7 D75A9@;L76 AH7DF:7
7JB75F76 3H7D397 D7?3;@;@9 IAD=;@9 >;H7E A8
F:7
7?B>AK77E B3DF;5;B3F;@9 ;@ F:7 B>3@E

)3EF E7DH;57 5AEF ;ED75A9@;L76
3E
3@
7JB7@E7 G@>7EE
F:7
5:3@97EFA
F:7 D7F;D7?7@F B>3@E
3D7 5A@6;F;A@3> A@
F:7
7?B>AK77ED7?3;@;@9 ;@ E7DH;57 8AD
3
EB75;8;76 B7D;A6
A8
F;?7 F:7 H7EF;@9 B7D;A6

"@ EG5: ;@EF3@57
F:7
B3EF E7DH;57 5AEFE
3D7
3?ADF;L76
A@
3
EFD3;9:F >;@7 43E;E AH7DF:7 3H7D397 B7D;A6 G@F;> F:7 47@78;FE 475A?7 H7EF76

-:7
678;@76 47@78;F
3EE7F AD >;34;>;FK ;E 5A?BD;E76
A8
F:7
BD7E7@FH3>G7
A8
F:7
678;@76 47@78;F A4>;93F;A@ 3@6 35FG3D;3> 93;@E
3@6 >AEE7E
@AF
D75A9@;L76 D76G576
4K
B3EF E7DH;57 5AEF @AFK7FD75A9@;L76 3@6 F:7 83;D H3>G7A8
B>3@
3EE7FE
AGF
A8
I:;5: F:7 A4>;93F;A@E
3D7 FA
47
E7FF>76 6;D75F>K )>3@
3EE7FE
3D7
3EE7FE
F:3F
3D7 :7>6 4K
3 >A@9 F7D?7?B>AK77 47@78;F 8G@6 )>3@
3EE7FE
3D7
@AF 3H3;>34>7
FA
F:7 5D76;FADE
A8
F:7
A?B3@K @AD 53@47B3;66;D75F>K
FA
F:7
A?B3@K -:7
BD7E7@FH3>G7A8
F:7
678;@76
47@78;F
A4>;93F;A@ ;E 67F7D?;@76 4K 6;E5AG@F;@9 F:7
7EF;?3F76 8GFGD753E:AGF8>AIE
GE;@9
F:7 ;@F7D7EF D3F7
A@
9AH7D@?7@F 4A@6EF:3F :3H7 F7D?E
FA?3FGD;FK 3BBDAJ;?3F;@9
F:7
F7D?E
A8
F:7
D7>3F76 D7F;D7?7@F
A4>;93F;A@ -:7 H3>G7 A8
3@K B>3@
3EE7FE D75A9@;L76 ;ED7EFD;5F76 FA
F:7 EG?A8
3@K B3EF E7DH;57 5AEFE @AFK7FD75A9@;L76 3@6 F:7 BD7E7@FH3>G7
A8
3@K
75A@A?;5
47@78;FE
3H3;>34>7 ;@
F:7 8AD?
A8 D78G@6E 8DA?
F:7
B>3@
ADD76G5F;A@E ;@
F:7 8GFGD75A@FD;4GF;A@E
FA
F:7 B>3@

"8
F:7
3EE7F ;E ?73EGD76
3FF:7 399D793F7
A8 5G?G>3F;H7
G@D75A9@;L76 @7F
35FG3D;3> >AEE7E
3@6
B3EF E7DH;57 5AEF 3@6 F:7 BD7E7@FH3>G7
A8
3@K
75A@A?;5
47@78;FE
3H3;>34>7 ;@ F:7 8AD?A8D78G@6E 8DA?
F:7
B>3@ ADD76G5F;A@E ;@
F:7 8GFGD75A@FD;4GF;A@EFA
F:7 B>3@
@7F
35FG3D;3> >AEE7E
A8
F:7
5GDD7@F B7D;A6 3@6 B3EF E7DH;57 5AEFE 8AD
F:7
5GDD7@F
B7D;A6
3D7 D75A9@;L76 ;??76;3F7>K
FA F:7 7JF7@F
F:3F
F:7K
7J5776
3@K D76G5F;A@ ;@ F:7
BD7E7@FH3>G7
A8
F:AE7
75A@A?;5
47@78;FE

"8
F:7D7;E @A 5:3@97
AD
3@
;@5D73E7;@
F:7 BD7E7@FH3>G7
A8
F:7 75A@A?;5
47@78;FE
F:7
7@F;D7
@7F 35FG3D;3> >AEE7E
A8
F:7
5GDD7@F
B7D;A6 3@6
B3EF E7DH;57 5AEFE 8AD
F:7
5GDD7@F
B7D;A6
3D7 D75A9@;L76 ;??76;3F7>K ,;?;>3D>K @7F 35FG3D;3> 93;@E
A8
F:7
5GDD7@F
B7D;A6 38F7D
F:7 676G5F;A@
A8
B3EF E7DH;57 5AEF A8
F:7
5GDD7@F B7D;A6
7J5776;@9
3@K ;@5D73E7;@F:7 BD7E7@FH3>G7
A8
F:7 75A@A?;5
47@78;FE EF3F76 ;@ F:7 8AD79A;@9 3D7 D75A9@;L76 ;??76;3F7>K ;8
F:7
3EE7F ;E ?73EGD76
3F
F:7 399D793F7
A8 5G?G>3F;H7 G@D75A9@;L76
@7F
35FG3D;3> >AEE7E
3@6
B3EF E7DH;57 5AEF 3@6
F:7 BD7E7@FH3>G7
A8
3@K
75A@A?;5
47@78;FE
3H3;>34>7 ;@
F:7 8AD?
A8 D78G@6E 8DA?
F:7
B>3@
ADD76G5F;A@E ;@
F:7 8GFGD75A@FD;4GF;A@E
FA
F:7 B>3@

"8
F:7D7;E
@A
5:3@97 AD
3
675D73E7;@F:7 BD7E7@FH3>G7A8
F:7
75A@A?;5 47@78;FE F:7 7@F;D7@7F
35FG3D;3>
93;@E
A8
F:7 5GDD7@F B7D;A6
38F7DF:7 676G5F;A@
A8 B3EF E7DH;57 5AEF A8
F:7
5GDD7@F
B7D;A6 3D7 D75A9@;L76 ;??76;3F7>K

"?B3;D?7@F
A8
'A@8;@3@5;3> EE7FE

!856+8:? !2'4: '4* 7;/63+4: 4:'4-/(2+ 99+:9 !8+6'/* '9
'4* !8+6'/* '058 #6'8+ !'8:9 F 735: D7BADF;@9 63F7
F:7 ;DEF
!A>6;@9E DAGB3EE7EE7EI:7F:7D
F:7D7;E 3@K ;@6;53F;A@ F:3F ;FE
@A@ 8;@3@5;3> 3EE7FE EB75;8;53>>K
BDAB7DFK B>3@F 3@6 7CG;B?7@F ;@H7EF?7@F
BDAB7DF;7E
9AA6I;>> ;@F3@9;4>7
3EE7FE
3@6 ;@H7EF?7@F
355AG@F76 8ADGE;@9 F:7 7CG;FK ?7F:A6 ?3K
47 ;?B3;D76 0:7@
3@
;@6;53FAD A8 ;?B3;D?7@F 7J;EFE
ADI:7@ 3@
3@@G3> ;?B3;D?7@F
F7EF;@9 8AD
3@
3EE7F ;ED7CG;D76
F:7 ;DEF
!A>6;@9E DAGB ?3=7E
3
8AD?3>
7EF;?3F7
A8
3@
3EE7FNE D75AH7D34>7 3?AG@F

+75AH7D34>7
3?AG@F ;EF:7 :;9:7D
A8
3@
3EE7FNE 83;D H3>G7>7EE 5AEFE
FA
E7>> 3@6 ;FE H3>G7;@
GE7 -:7 D75AH7D34>7
3?AG@F ;E 67F7D?;@76 8AD
3@
;@6;H;6G3> 3EE7F
G@>7EE
F:7
3EE7F 6A7E
@AF
97@7D3F753E:;@8>AIE
F:3F 3D7>3D97>K ;@67B7@67@F 8DA?
AF:7D
3EE7FE
AD

75 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

9DAGBE
A8
3EE7FE ;@I:;5: 53E7
F:7
D75AH7D34>7
3?AG@F ;E
3EE7EE76 3E
B3DF A8
F:7
53E: 97@7D3F;@9 G@;F
FA I:;5: ;F 47>A@9E 0:7D7
F:7 53DDK;@9
3?AG@F A8
3@
3EE7F AD 53E: 97@7D3F;@9 G@;F
7J5776E ;FE D75AH7D34>7
3?AG@F
F:7
3EE7F AD 53E: 97@7D3F;@9 G@;F;E 5A@E;67D76 ;?B3;D76 3@6 ;EID;FF7@ 6AI@
FA;FE D75AH7D34>7
3?AG@F "@
3EE7EE;@9 H3>G7;@
GE7
F:7 7EF;?3F76 8GFGD753E:8>AIE 3D7
6;E5AG@F76
FA
F:7;D BD7E7@FH3>G7
GE;@9
3BD7 F3J
6;E5AG@FD3F7 F:3FD78>75FE 5GDD7@F ?3D=7F
3EE7EE?7@F
A8
F:7
F;?7 H3>G7A8 ?A@7K 3@6 F:7 D;E=EEB75;8;5
FA
F:7 3EE7F AD 53E: 97@7D3F;@9 G@;F @ ;?B3;D?7@F >AEE ;E 5:3D976
FA
AB7D3F;A@E ;@ F:7 K73D ;@ I:;5: ;F
3D;E7E

AD
@A@8;@3@5;3>
3EE7FE 7J5>G6;@9 9AA6I;>>
3@
3EE7EE?7@F ;E ?367
3F
735: D7BADF;@9
63F7
3EFA I:7F:7D F:7D7;E
3@K ;@6;53F;A@ F:3F BD7H;AGE>KD75A9@;L76 ;?B3;D?7@F >AEE7E ?3K
@A >A@97D
7J;EF
AD ?3K :3H7 675D73E76
"8 EG5: ;@6;53F;A@
7J;EFE F:7 D75AH7D34>7 3?AG@F ;E
7EF;?3F76 
BD7H;AGE>KD75A9@;L76 ;?B3;D?7@F >AEE ;ED7H7DE76
A@>K ;8
F:7D7:3E
477@ 3 5:3@97 ;@
F:7
7EF;?3F7E
GE76 FA
67F7D?;@7
F:7
3EE7FNE D75AH7D34>7
3?AG@FE;@57
F:7 >3EF ;?B3;D?7@F >AEE I3ED75A9@;L76 "8
F:3F ;E
F:7 53E7
F:7 53DDK;@9
3?AG@F
A8
F:7 3EE7F ;E ;@5D73E76
FA;FE D75AH7D34>7 3?AG@F -:3F ;@5D73E76
3?AG@F 53@@AF 7J5776
F:7 53DDK;@9 3?AG@F
F:3FIAG>6 :3H7 477@ 67F7D?;@76
@7F A8
67BD75;3F;A@
:36 @A ;?B3;D?7@F >AEE
477@ D75A9@;L76 8AD
F:7
3EE7F ;@
BD;ADK73DE ,G5: D7H7DE3> ;ED75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 8F7DEG5: D7H7DE3>
F:7 67BD75;3F;A@ ;E 36>A53F7
F:7 3EE7FNE D7H;E76 53DDK;@9
3?AG@F >7EE 3@KD7E;6G3> H3>G7
A@
3
EKEF7?3F;5
43E;E AH7D ;FE D7?3;@;@9
GE78G> >;87

55*=/22 AA6I;>> ;ED7H;7I76 8AD ;?B3;D?7@F
3@@G3>>K AD ?AD78D7CG7@F>K ;8 7H7@FE
AD 5:3@97E ;@ 5;D5G?EF3@57E ;@6;53F7 F:3F
F:7
53DDK;@9 H3>G7?3K
47 ;?B3;D76

"?B3;D?7@F ;E
67F7D?;@76 8AD
9AA6I;>> 4K
3EE7EE;@9 F:7 D75AH7D34>7
3?AG@F A8
F:7
53E: 97@7D3F;@9 G@;F AD
9DAGBA853E: 97@7D3F;@9
G@;FE
FA I:;5: F:7 9AA6I;>> D7>3F7E 0:7D7
F:7
D75AH7D34>7
3?AG@F
A8
F:7 53E: 97@7D3F;@9 G@;F AD 9DAGBA853E: 97@7D3F;@9
G@;FE;E >7EE
F:3@
F:7 53DDK;@9 3?AG@F
A8
F:7
53E: 97@7D3F;@9 G@;F AD
9DAGB
A8 53E: 97@7D3F;@9 G@;FE
FA I:;5: 9AA6I;>>
:3E 477@
3>>A53F76
3@ ;?B3;D?7@F >AEE ;ED75A9@;L76 ;??76;3F7>K ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 "?B3;D?7@F >AEE D7>3F;@9
FA 9AA6I;>> 53@@AF
47 D7H7DE76 8ADEG4E7CG7@F ;@5D73E7E ;@ ;FE D75AH7D34>7 3?AG@F ;@ 8GFGD7
B7D;A6E ;DEF !A>6;@9E DAGBB7D8AD?E ;FE
3@@G3> ;?B3;D?7@F
F7EF
A8
9AA6I;>> 3E
A8
757?47D

A8
735: K73D

4<+9:3+4: /4 995)/':+9 ;DEF
!A>6;@9E DAGB67F7D?;@7EI:7F:7D ;F ;E @757EE3DK
FA D75A9@;L73@ ;?B3;D?7@F >AEE
A@ ;FE ;@H7EF?7@F ;@ 3EEA5;3F7E ;DEF !A>6;@9E DAGB67F7D?;@7E
3F
735:
43>3@57 E:77F 63F7 I:7F:7DF:7D7;E
3@K A4<75F;H77H;67@57 F:3F
F:7 ;@H7EF?7@F ;@
3@ 3EEA5;3F7;E ;?B3;D76

"8
F:;E ;E
F:7 53E7 ;DEF
!A>6;@9E DAGB 53>5G>3F7E
F:7
3?AG@F
A8 ;?B3;D?7@F
3E
47;@9
F:7 6;887D7@57 47FI77@ F:7 D75AH7D34>7
3?AG@F
A8
F:7 3EEA5;3F7E 3@6 ;FE 53DDK;@9 H3>G7 3@6 D75A9@;L7E
F:7 3?AG@F ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

-D73EGDK ,:3D7E (I@
7CG;FK ;@EFDG?7@FE
I:;5:
3D7 D735CG;D76 FD73EGDK E:3D7E
3D7 D75A9@;L76 3F 5AEF
3@6
676G5F76 8DA? 7CG;FK

'A
93;@ AD >AEE ;ED75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
A@
F:7
BGD5:3E7 E3>7 D7 ;EEG7
AD 53@57>>3F;A@ A8
F:7 ;DEF
!A>6;@9NE DAGBAI@7CG;FK ;@EFDG?7@FE

,:3D7 43E76 )3K?7@F -D3@E35F;A@E 7DF3;@
7?B>AK77E ;@5>G6;@9 E7@;AD
7J75GF;H7E
A8 )! ;DEF 7@ DAGB 3@6
3@
3EEA5;3F7 )) D757;H7 D7?G@7D3F;A@ ;@ F:7 8AD?A8E:3D7 43E76 B3K?7@F
FD3@E35F;A@E

.@67DEG5: 5;D5G?EF3@57
F:7
7?B>AK77ED7@67DE7DH;57E ;@
7J5:3@97 8ADE:3D7E
ADD;9:FE AH7DE:3D7E O7CG;FK E7FF>76
FD3@E35F;A@EP

7;/:?9+::2+* $8'49'):/549 -:7 5AEF
A8
7CG;FK E7FF>76
FD3@E35F;A@EI;F:
7?B>AK77E ;E ?73EGD76 4K D787D7@57
FA
F:7 83;DH3>G7
A8
F:7
EFA5=
ABF;A@E
3F
F:7
63F7
F:7
ABF;A@ ;E 9D3@F76 -:7 83;DH3>G7;E 67F7D?;@76
GE;@9 F:7 >35= ,5:A>7E &7DFA@ (BF;A@ )D;5;@9 &A67> 8GDF:7D 67F3;>E
A8 I:;5:
3D7BDAH;676 ;@ 'AF7  "@ H3>G;@9 7CG;FK E7FF>76
FD3@E35F;A@E @A355AG@F ;E
F3=7@
A8
3@K B7D8AD?3@57 5A@6;F;A@E
AF:7D F:3@ 5A@6;F;A@E >;@=76
FA F:7
BD;57 A8
F:7
E:3D7E O?3D=7F 5A@6;F;A@EP ;8
3BB>;534>7

-:7 5AEF
A8
7CG;FK E7FF>76
FD3@E35F;A@E ;ED75A9@;L76 FA97F:7DI;F:35ADD7EBA@6;@9 ;@5D73E7;@7CG;FK AH7DF:7 B7D;A6 ;@ I:;5: F:7
B7D8AD?3@57
3@6 ADE7DH;57 5A@6;F;A@E
3D78G>8;>>76 7@6;@9
A@
F:7
63F7A@ I:;5: F:7 D7>7H3@F
7?B>AK77E
475A?7 8G>>K 7@F;F>76 FA F:7 3I3D6OF:7 H7EF;@9
63F7P -:7 5G?G>3F;H7 7JB7@E7 D75A9@;L76 8AD
7CG;FK E7FF>76
FD3@E35F;A@E
3F 735: D7BADF;@9 63F7 G@F;> F:7 H7EF;@9
63F7 D78>75FE
F:7 7JF7@FFA I:;5: F:7 H7EF;@9 B7D;A6 :3E
7JB;D76 3@6 F:7 A?B3@KNE 47EF
7EF;?3F7A8
F:7
@G?47D
A8
7CG;FK ;@EFDG?7@FE
F:3FI;>> G>F;?3F7>KH7EF -:7 5:3D97
AD 5D76;FFA
F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7 8AD
3

76 B7D;A6 D7BD7E7@FE
F:7 ?AH7?7@F ;@ 5G?G>3F;H7
7JB7@E7 D75A9@;L76 3E
A8
F:7 479;@@;@9 3@6 7@6 A8
F:3F
B7D;A6

'A
7JB7@E7;ED75A9@;L76 8AD 3I3D6EF:3F 6A @AFG>F;?3F7>KH7EF 7J57BF 8AD 3I3D6EI:7D7 H7EF;@9 ;E 5A@6;F;A@3>
GBA@ 3 ?3D=7F 5A@6;F;A@ I:;5: 3D7
FD73F76 3EH7EF;@9 ;DD7EB75F;H7
A8
I:7F:7D
AD
@AF
F:7 ?3D=7F 5A@6;F;A@ ;EE3F;E8;76
BDAH;676
F:3F 3>>
AF:7D
B7D8AD?3@57 5A@6;F;A@E
3D7 E3F;E8;76

0:7D7
F:7
F7D?E
A8
3@
7CG;FK E7FF>76
3I3D63D7 ?A6;8;76 3@
7JB7@E7 3E
3
?;@;?G?;ED75A9@;L76
3E ;8 F:7 F7D?E
:36
@AF
477@ ?A6;8;76 @
7JB7@E7;ED75A9@;L76 8AD
3@K ;@5D73E7;@F:7 H3>G7A8
F:7
FD3@E35F;A@E
3E
3
D7EG>F
A8 F:7 ?A6;8;53F;A@
3E ?73EGD76
3F
F:7
63F7
A8 ?A6;8;53F;A@

0:7D7
3@
7CG;FK E7FF>76
3I3D6;E 53@57>>76 ;F ;E
FD73F76
3E ;8 ;F :36 H7EF76 A@ F:7 63F7 A8 53@57>>3F;A@ 3@6 3@K 7JB7@E7
@AFK7FD75A9@;L76 8AD
F:7 3I3D6;ED75A9@;L76 ;??76;3F7>K

!AI7H7D ;8
3
@7I
3I3D6;E EG4EF;FGF76 8AD
F:7 53@57>>76 3I3D6
3@6 67E;9@3F76 3E
3
D7B>357?7@F 3I3D6A@F:7 63F7 F:3F ;F ;E
9D3@F76 F:7 53@57>>76 3@6 @7I 3I3D6E
3D7
FD73F76
3E ;8
F:7KI7D7 ?A6;8;53F;A@E
A8
F:7
AD;9;@3>
3I3D6
3E
67E5D;476 ;@ F:7 8AD79A;@9

-:7
6;>GF;H7 78875F
A8
AGFEF3@6;@9 ABF;A@E ;ED78>75F76 3E
366;F;A@3> E:3D76;>GF;A@ ;@
F:7 5A?BGF3F;A@
A8 73D@;@9E B7DE:3D7E77 'AF7


"@5A?7 -3J

;88+4: 4)53+ $'> -3J
3EE7FE
3@6
>;34;>;F;7E 8AD
F:7
5GDD7@F 3@6
BD;ADK73DE
3D7?73EGD76
3F
F:7 3?AG@F 7JB75F76 FA47D75AH7D76 8DA?
AD
B3;6
FA
F:7
F3J 3GF:AD;FK -:7
F3JD3F7E 3@6
F3J >3IE
GE76 FA 5A?BGF7 F:7
3?AG@F
3D7
F:AE7
F:3F 3D7
7@35F76
ADEG4EF3@F;3>>K 7@35F76
3E
3F
F:7
43>3@57 E:77F 63F7

+,+88+* $'> 787DD76 F3J ;E
BDAH;676 ;@ 8G>> GE;@9
F:7
43>3@57 E:77F >;34;>;FK ?7F:A6
A@ F7?BAD3DK 6;887D7@57E
3D;E;@9 47FI77@
F:7
F3J
43E7E
A8
3EE7FE
3@6 >;34;>;F;7E
3@6
F:7;D 53DDK;@9
3?AG@FE ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3E
3F
F:7
43>3@57 E:77F 63F7

!AI7H7D 6787DD76 ;@5A?7
F3J ;E @AF 355AG@F76 8AD ;8 ;F
3D;E7E 8DA? ;@;F;3> D75A9@;F;A@
A8
3@
3EE7F
AD >;34;>;FK ;@
3
FD3@E35F;A@
AF:7D
F:3@ 3 4GE;@7EE 5A?4;@3F;A@ I:;5:
3F
F:7 F;?7
A8
F:7
FD3@E35F;A@ 38875FE
@7;F:7D
355AG@F;@9 @AD
F3J34>7 BDA8;F 787DD76 ;@5A?7
F3J ;E 67F7D?;@76
GE;@9 F:7 F3JD3F7E 3@6 F3J >3IE F:3F :3H7 477@
7@35F76 AD EG4EF3@F;3>>K
7@35F76 3E
3FF:7 43>3@57 E:77F 63F73@6
3D7
7JB75F76 FA47
3BB>;76
I:7@
F:7 D7>3F76 6787DD76 ;@5A?7
F3J
3EE7F ;ED73>;L76
ADF:7 6787DD76 ;@5A?7
F3J >;34;>;FK ;EE7FF>76

787DD76 ;@5A?7
F3J
3EE7FE
3D7 D75A9@;L76 8AD
3>>
676G5F;4>7
F7?BAD3DK 6;887D7@57E 53DDK 8ADI3D6
A8 G@GE76
F3J 5D76;FE 8DA?
7J57EE ?;@;?G?5ADBAD3F7 ;@5A?7
F3J &"-
AH7D
F:7
D79G>3D ;@5A?7
F3J
3@6 G@GE76
@7F
AB7D3F;@9 >AEE 53DDKAH7D '(%(
FA
F:7 7JF7@F
F:3F ;F ;E BDA434>7
F:3F
F3J34>7
BDA8;FI;>> 47 3H3;>34>7 393;@EF I:;5: F:7 676G5F;4>7 F7?BAD3DK 6;887D7@57E
3@6
F:7 53DDK 8ADI3D6
A8
G@GE76
F3J 5D76;FE 8DA?
&"-
3@6
G@GE76 '(%( 53@ 47
GF;>;L76

787DD76 ;@5A?7
F3J :AI7H7D ;E
@AF
D75A9@;L76

I:7D7 F:7 6787DD76 ;@5A?7
F3J
3EE7FD7>3F;@9 FA
F:7 676G5F;4>7 F7?BAD3DK 6;887D7@57
3D;E7E 8DA?
F:7
;@;F;3> D75A9@;F;A@
A8
3@ 3EE7F
AD >;34;>;FK ;@ 3
FD3@E35F;A@
F:3F ;E @AF 3
4GE;@7EE 5A?4;@3F;A@
3@6
3F
F:7 F;?7
A8
F:7
FD3@E35F;A@ 38875FE
@7;F:7D
F:7
355AG@F;@9 BDA8;F
@AD
F3J34>7
BDA8;F
AD >AEE
3@6

;@ D7EB75F A8
676G5F;4>7 F7?BAD3DK 6;887D7@57E
3EEA5;3F76 I;F:;@H7EF?7@FE ;@ EG4E;6;3D;7E 3@6 3EEA5;3F7E 6787DD76
F3J
3EE7FE
3D7 D75A9@;L76 A@>KFA F:7
7JF7@FF:3F ;F ;E
BDA434>7
F:3F
F:7
F7?BAD3DK 6;887D7@57E
I;>> D7H7DE7;@F:7 8AD7E7734>7 8GFGD73@6F3J34>7
BDA8;FI;>> 47 3H3;>34>7
393;@EF I:;5:
F:7 F7?BAD3DK 6;887D7@57E 53@ 47
GF;>;L76

787DD76
F3J >;34;>;F;7E
3D7
@AF
BDAH;676 A@ @A@ F3J34>7 F7?BAD3DK 6;887D7@57E
3EEA5;3F76 I;F:;@H7EF?7@FE ;@ 6A?7EF;5 EG4E;6;3D;7E 3@6
3@ 3EEA5;3F7

-:7 53DDK;@9 3?AG@F
A8
6787DD76
F3J
3EE7FE ;ED7H;7I76
3F 735: 43>3@57 E:77F 63F7
3@6 D76G576 FA
F:7 7JF7@FF:3F ;F ;E
@A >A@97D BDA434>7 F:3FEG88;5;7@F
F3J34>7
BDA8;FI;>> 47 3H3;>34>7
FA3>>AI 3>>
AD B3DF
A8
F:7
6787DD76
F3J
3EE7FFA47
GF;>;L76 .@D75A9@;L76
6787DD76
F3J 3EE7FE
3D7 D73EE7EE76
3F
735: 43>3@57 E:77F 63F7 3@6
3D7 D75A9@;L76 FA F:7
7JF7@FF:3F ;F :3E
475A?7
BDA434>7 F:3F 8GFGD7
F3J34>7
BDA8;FI;>> 3>>AIF:7 6787DD76
F3J
3EE7FFA47D75AH7D76

77 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

787DD76
F3J
3EE7FE
3@6 >;34;>;F;7E
3D7?73EGD76 3F
F:7
F3JD3F7E
F:3F
3D7
3BB>;534>7
FA
F:7 K73DI:7@
F:7 3EE7F ;ED73>;L76
AD
F:7 >;34;>;FK ;EE7FF>76 43E76 A@ F3JD3F7E 3@6 F3J >3IE
F:3F
:3H7 477@
7@35F76 AD EG4EF3@F;3>>K
7@35F76 3E
3FF:7 43>3@57 E:77F 63F7

GDD7@F 3@6 6787DD76
F3J
3EE7FE
3@6 >;34;>;F;7ED7>3F;@9 FA;F7?ED75A9@;L76
6;D75F>K ;@ 7CG;FK 3D7 D75A9@;L76 ;@ 7CG;FK 3@6
@AF ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

787DD76
F3J
3EE7FE
3@6 >;34;>;F;7E
3D7A88E7F ;8
3
>793>>K
7@8AD5734>7 D;9:F
7J;EFE
FA E7F
A88 5GDD7@F
F3J 3EE7FE
393;@EF 5GDD7@FF3J >;34;>;F;7E 3@6 F:7 6787DD76
F3J7ED7>3F7 FA F:7 E3?7
F3J34>7 7@F;FK
3@6
F:7 E3?7 F3J
3GF:AD;FK

3E:
;H;67@6E A@ )D787DD76 3@6 A??A@ ,:3D7E 3E:6;H;67@6E A@
BD787DD76
3@6 5A??A@ E:3D7E
3D7 D75A9@;L76
3E >;34;>;FK 3@6 676G5F76 8DA?
7CG;FK I:7@ 3BBDAH76 4KF:7 D7EB75F;H7 E:3D7:A>67DE
A8
F:7 )3D7@F
A?B3@K 3@6 EG4E;6;3D;7E ;H;67@6E 8AD F:7 K73DF:3F 3D73BBDAH76 38F7D
F:7
43>3@57 E:77F 63F7
3D7 673>FI;F:3E
3@ 7H7@F
38F7D
F:7
43>3@57 E:77F 63F7

3D@;@9E B7D ,:3D7 ), FFD;4GF34>7
FA F:7 CG;FK !A>67DE
A8
F:7
)3D7@F
A?B3@K 3E;5 ), ;E 53>5G>3F76 4K 6;H;6;@9
F:7
@7F ;@5A?7 >7EE
BD787DD76
6;H;67@6E ;8
3@K8AD
F:7 K73D 3FFD;4GF34>7 FA 5A??A@ E:3D7:A>67DE 4K
F:7 I7;9:F76 3H7D397 @G?47D
A8 5A??A@ E:3D7E
AGFEF3@6;@9 6GD;@9
F:7 K73D 38F7D
9;H;@9 D7FDA35F;H7 78875F
FA
3@KEFA5=
6;H;67@6E
ADEFA5= EB>;FE
675>3D76
6GD;@9 F:7 K73D

;>GF76 ), ;E 53>5G>3F76 ;@
F:7
E3?7 ?3@@7D
36;534>7 4 3FF:7 479;@@;@9 A8
F:7 K73D
AD
3F
F:7
F;?7
A8 ;EEG3@57
6GD;@9 F:7 K73D 3>>
AGFEF3@6;@9 EFA5=
ABF;A@E
3D7
7J7D5;E76 3@6 674F ;@EFDG?7@FE
I;F:BAF7@F;3> 5A??A@ EFA5=
7CG;H3>7@F 3D75A@H7DF76
FA
5A??A@ E:3D7E
3@6 3BBDABD;3F7
363F76 7JB7@E7E 3@6 ;@5A?7 (GFEF3@6;@9 EFA5=
ABF;A@EI;>> :3H76;>GF;H7 78875F
G@67D
F:7
FD73EGDK EFA5= ?7F:A6 A@>KI:7@ F:7 3H7D397 ?3D=7F
BD;57
A8
F:7
G@67D>K;@9 5A??A@ E:3D7
6GD;@9 F:7
B7D;A6
7J5776E
F:7 7J7D5;E7
BD;57 A8
F:7
ABF;A@

0:7D7
F:7
),
78875F
A8
F:7
3EEG?76
7J7D5;E7
A8
AGFEF3@6;@9
ABF;A@E
:3E 3@F; 6;>GF;H7 78875F
6;>GF76 ), ;E
BD7E7@F76 F:7 E3?7
3E 43E;5 ), I;F:
3
6;E5>AEGD7 F:3FF:7 78875F
A8
F:7
7J7D5;E7
A8
F:7
;@EFDG?7@FE ;E 3@F; 6;>GF;H7

,79?7@F
+7BADF;@9 AD
BGDBAE7E A8 8;@3@5;3> D7BADF;@9 F:7 ;DEF
!A>6;@9E DAGB;E
AD93@;L76 3@6 ?3@3976 E7B3D3F7>K 355AD6;@9
FA
F:7 @3FGD7
A8
F:7
BDA6G5FE
3@6 E7DH;57E BDAH;676 I;F:735:E79?7@FD7BD7E7@F;@9
3
EFD3F79;5 4GE;@7EE
G@;F
F:3F
A887DE
6;887D7@F
BDA6G5FE
ADE7DH;57E ,G5: 4GE;@7EE E79?7@FE
3D7
F:7 43E7EGBA@ I:;5: F:7 A?B3@KD7BADFE ;FE
BD;?3DK E79?7@F ;@8AD?3F;A@ ;@3@5;3> ;@8AD?3F;A@
A@
4GE;@7EE E79?7@FE ;E
BD7E7@F76 ;@ 'AF7
FA
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE -:7 ;DEF
!A>6;@9E DAGB
:3E A@7 97A9D3B:;53> E79?7@F
3@6 67D;H7E
BD;@5;B3>>K 3>> ;FE D7H7@G7E 8DA?
6A?7EF;5
AB7D3F;A@E

H7@FE 8F7D
F:7 3>3@57 ,:77F 3F7 )AEF K73D 7@6 7H7@FE
F:3F BDAH;67 366;F;A@3> ;@8AD?3F;A@
34AGF F:7 ;DEF
!A>6;@9E DAGBNE 8;@3@5;3> BAE;F;A@ 3FF:7 43>3@57 E:77F
63F7 3675F76 ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE )AEF K73D 7@6 7H7@FE
F:3F
3D7@AF 36AE76 ;@ F:7
@AF7E
FA
5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE I:7@ ?3F7D;3>

 '64:6360.:@ 00;A:@6:4 A1492:@?
.:1 ?@69.@2?

-:7
BD7B3D3F;A@
A8 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE ;@ 5A@8AD?;FK I;F: ) +, D7CG;D7E
F:7
;DEF
!A>6;@9E DAGB
FA
?3=7 ;34;>;F;7E 3@6F:7 6;E5>AEGD7
A8 5A@F;@97@F >;34;>;F;7E 3FF:7 D7BADF;@9 63F7 !AI7H7D 8GFGD77H7@FE ?3K A55GD I:;5: I;>> 53GE7 F:7
3EEG?BF;A@E
GE76 ;@ 3DD;H;@9 3FF:7
7EF;?3F7E
FA
5:3@97 -:7
78875FE
A8
3@K 5:3@97 ;@
7EF;?3F7E
3D7 D78>75F76 ;@
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3E F:7K
475A?7
67F7D?;@34>7

78 #G69?7@FE
3@6
7EF;?3F7E
3D75A@F;@G3>>K 7H3>G3F76
3@6
3D743E76 A@ :;EFAD;53> 7JB7D;7@57 3@6 AF:7D 835FADE ;@5>G6;@9
7JB75F3F;A@E
A8 8GFGD7
7H7@FE F:3F 3D7
47>;7H76 FA
47 D73EA@34>7
G@67D
F:7 5;D5G?EF3@57E

-:7 ;DEF
!A>6;@9E DAGB47>;7H7E
F:3F
F:7 8A>>AI;@9 D7BD7E7@FE
3
EG??3DK
A8
F:7E7 E;9@;8;53@F 3F76 ;?B35F
A@
3@6 3EEA5;3F76 D;E=E
FA
F:7
5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

#G69?7@FE

+:+83/4':/54
5, ;4):/54'2
;88+4)? J57BF 8AD
F:7
;DEF 7@ DAGB ,+" )) ;DEF ):;>75 ,A>3D ," ! "@F7D@3F;A@3> )! G@6 3@6 )! /7@FGD7E
F:7 )3D7@F A?B3@K 3@6
3>> AF:7DEG4E;6;3D;7E 3@6 3EEA5;3F7E :3H767F7D?;@76
F:3F
F:7;D 8G@5F;A@3> 5GDD7@5K ;E
F:7 ):;>;BB;@7 B7EA -:7 ):;>;BB;@7
B7EA ;E
F:7
5GDD7@5K
A8
F:7
BD;?3DK
75A@A?;5
7@H;DA@?7@F ;@
I:;5: F:7 )3D7@F A?B3@K
3@6 3>>
AF:7D EG4E;6;3D;7E 3@6 3EEA5;3F7E
7J57BF 8AD
F:AE77@F;F;7E 73D>;7D ?7@F;A@76 AB7D3F7 -:7 ):;>;BB;@7 )7EA;E 3>EA F:7 5GDD7@5K
F:3F ?3;@>K ;@8>G7@57EF:7 E3>7 A8
9AA6E
3@6
E7DH;57E 3EI7>>
3EF:7 5AEFE
A8 E7>>;@9 EG5: 9AA6E 3@6 BDAH;6;@9 EG5: E7DH;57E -:7 ;DEF 7@ DAGB ,+" ," !
"@F7D@3F;A@3> ;DEF ):;>75 ,A>3D )! G@6 3@6 )! /7@FGD7E
:3H7
67F7D?;@76 F:7 ., 6A>>3D
FA
47 F:7;D 8G@5F;A@3> 5GDD7@5K -:GE F:7
355AG@FE
A8 ;DEF 7@ ,+" ! "@F7D@3F;A@3> ;DEF ):;>75 ,A>3D )! G@6
3@6 )! /7@FGD7E I7D7
FD3@E>3F76
FA ):;>;BB;@7
B7EA8AD
F:7
BGDBAE7E
A8 5A@EA>;63F;A@
FA
F:7 ;DEF !A>6;@9E DAGBNE 355AG@FE

6+8':/4- +'9+ 533/:3+4:9  /89:
52*/4-9 85;6 '9
+9958 -:7 D7EB75F;H7))E
A8 )
3@6 )
CG3>;8K
3E >73E7E A@ F:7 43E;E
F:3F ) 3@6 ) E7>> 3>>
A8
F:7;D
AGFBGF FA &+%( -:7E7 39D77?7@FE 53>> 8AD
3 F3=7 AD B3K 3DD3@97?7@F
I:7D7B3K?7@F ;E ?367
BD;@5;B3>>K
A@
F:7
43E;E
A8
F:7
3H3;>34;>;FK A8
F:7 BAI7D
B>3@FE
3@6
@AF
A@ 35FG3> 67>;H7D;7E
A8
7>75FD;5;FK 97@7D3F76 -:7E7>73E7 3DD3@97?7@FE
3D767F7D?;@76
FA
47 AB7D3F;@9 >73E7EI:7D7
3
E;9@;8;53@F BADF;A@ A8
F:7
D;E=E
3@6
47@78;FE A8
AI@7DE:;B
A8
F:7 3EE7FE
3D7 D7F3;@76 4K )
3@6 ) 55AD6;@9>K F:7 BAI7D
B>3@F
3EE7FE
3D7 D75AD676
3E B3DF
A8
F:7 5AEF
A8
BDAB7DFK B>3@F
3@6 7CG;B?7@F
3@6
F:7 8;J76 53B35;FK 877E
4;>>76 3@6 8;J76 AB7D3F;@9
3@6 ?3;@F7@3@57 877E
4;>>76
FA &+%( 3@6 ')
3D7 D75AD676
3E AB7D3F;@9 D7H7@G7E A@ EFD3;9:F >;@7 43E;E AH7D
F:7 3BB>;534>7 F7D?E A8
F:7
))E

6+8':/4- +'9+ 533/:3+4:9  /89:
52*/4-9 85;6 '9
+99++ -:7 ;DEF
!A>6;@9E DAGB:3E 7@F7D76 ;@FA5A??7D5;3>
BDAB7DFK >73E7E 8AD 57DF3;@
A8 ;FE ;@H7EF?7@F
BDAB7DF;7E -:7 ;DEF
!A>6;@9E DAGB:3E 67F7D?;@76 F:3F ;FD7F3;@E
3>>
F:7 E;9@;8;53@FD;E=E
3@6
D7I3D6E
A8 AI@7DE:;B
A8
F:7 BDAB7DFK 3@6
F:GE 355AG@FE 8ADEG5:
39D77?7@FE
3E
AB7D3F;@9 >73E7E

#+8K;@9 ):;>;BB;@7 "@F7DBD7F3F;A@
" +" 
F:7
;DEF
!A>6;@9E DAGB
:3E ?367
3
,7DH;57 A@FD35FE  ,E
A8  I;F:
F:7 ):;>;BB;@7 AH7D@?7@F
F:DAG9:
7B3DF?7@F
A8 @7D9K ( ;@ F:7 8A>>AI;@9 5A@FD35F
3D73E -A@9A@3@ %7KF7 ,AGF:7D@ '79DAE 35A@ &3@;FA 35&3@ ;@ >43K 3@6 ,ADEA9A@
3@6
&F BA 'ADF:
AF343FA CG3>;8K G@67DF:7 8;@3@5;3> 3EE7F ?A67> I:;>7 NE E7DH;57 5A@FD35F 8AD
F:7 'ADF:7D@
'79DAE )DA<75F 3@6F:7 7JB3@E;A@ 67H7>AB?7@F
A8 -3@3IA@
BDA<75F ;@ F:7 35A@ &3@;FA E7DH;57 5A@FD35F
3D73 CG3>;8;7EG@67DF:7 ;@F3@9;4>7
3EE7F ?A67> -:7 )DA<75F 9D77?7@F
A8 )) I;F: F:7 '3F;A@3> )AI7D
ADBAD3F;A@ ') CG3>;8;7EG@67DF:7 8;@3@5;3>
3EE7F ?A67> E77
'AF76

+,+88+* "+<+4;+ 54 #:58+* 4+8-? .@67D NE
3667@6G?
39D77?7@FE I;F: F:7 ')  :3E 5A??;F?7@F
FA
') 8AD 57DF3;@ HA>G?7
A8 EFAD76
7@7D9KF:3F ') ?3K >;8F 8AD
3
EB75;8;76 B7D;A6
BDAH;676 F:3FF:7  ;E
34>7 FA 97@7D3F7 EG5: 7@7D9K AH7D
3@6
34AH7 F:7 @A?;@3F76
7@7D9K 8AD
735: 9;H7@ K73D ;@ 355AD63@57 I;F: F:7 D7>3F76 ))E  :3E ?367
3
;@8AD?3F;A@
F:3F
F:7 BDA434;>;FK
A8 8GFGD7>;8F;@9E 4K ') 8DA?
F:7
EFAD76 7@7D9K ;ED7?AF7
3@6 355AD6;@9>K :3E
@AF
6787DD76 3@K BADF;A@
A8
F:7 5A>>75F76 D7H7@G7E -:7EFAD76 7@7D9K 5A??;F?7@FE
3D7
:AI7H7D
6;E5>AE76 ;@
F:7
@AF7E
FA
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
G@67D
F:7 6;E5GEE;A@A@5A??;F?7@FE
3@6
5A@F;@97@5;7E E77
'AF7 4

'/8 &'2;+
5, /4'4)/'2 49:8;3+4:9 0:7D7
F:7
83;DH3>G7E
A8 8;@3@5;3>
3EE7FE 3@6
8;@3@5;3> >;34;>;F;7E D75AD676 ;@ F:7 5A@EA>;63F76
43>3@57 E:77F 53@@AF 47 67D;H76 8DA?
35F;H7?3D=7FE
F:7K
3D767F7D?;@76 GE;@9 3 H3D;7FK A8 H3>G3F;A@ F75:@;CG7EF:3F ;@5>G67
F:7 GE7
A8 ?3F:7?3F;53> ?A67>E -:7 ;@BGF
FA F:7E7 ?A67>E ;E
F3=7@ 8DA?
A4E7DH34>7 ?3D=7FE I:7D7BAEE;4>7
4GF I:7D7
F:;E ;E @AF 873E;4>7 3
679D77 A8 ;E:;@9 83;DH3>G7E -:7 G67 5A@E;67D3F;A@E
A8 >;CG;6;FK 3@6 ?A67> ;@BGFE EG5:
3E 5ADD7>3F;A@ 3@6 HA>3F;>;FK 8AD >A@97D
63F76 8;@3@5;3> ;@EFDG?7@FE

79 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

EF;?3F7E -:7 =7K
3EEG?BF;A@E 5A@57D@;@9
F:7 8GFGD7 3@6 AF:7D =7KEAGD57E
A8
7EF;?3F;A@
G@57DF3;@FK 3FF:7 5A@EA>;63F76 43>3@57 E:77F
63F7
F:3F
:3H7
3
E;9@;8;53@FD;E=A853GE;@9
3
?3F7D;3> 36;34;>;F;7EI;F:;@
F:7
@7JF 8;@3@5;3> K73D
3D76;E5GEE76 47>AI

'/8 &'2;+
5, /4'4)/'2 99+:9
'4*
/'(/2/:/+9 7DF3;@
8;@3@5;3>
3EE7FE 3@6 8;@3@5;3> >;34;>;F;7E
3D7 D7CG;D76 FA
47 53DD;76 3F 83;DH3>G7 I:;5: D7CG;D7E
F:7 GE7
A8 355AG@F;@9
7EF;?3F7E
3@6
7 E;9@;8;53@F 5A?BA@7@FE A8 83;DH3>G7?73EGD7?7@F
3D767F7D?;@76
GE;@9 H7D;8;34>7
A4<75F;H77H;67@57 ; 7 8AD7;9@ 7J5:3@97 D3F7E ;@F7D7EF D3F7E
3@6 HA>3F;>;FK D3F7E
F:7
F;?;@9
3@6
3?AG@F
A8 5:3@97E ;@ 83;DH3>G7 IAG>6 6;887DI;F:
F:7 H3>G3F;A@ ?7F:A6A>A9KGE76 @K 5:3@97 ;@
F:7 83;DH3>G7
A8
F:7E7 8;@3@5;3> 3EE7FE
3@6
8;@3@5;3> >;34;>;F;7EIAG>6 6;D75F>K 38875F 5A@EA>;63F76
BDA8;F
3@6 >AEE 3@6 5A@EA>;63F76 7CG;FK

3;DH3>G7E
A8
F:7
;DEF
!A>6;@9E DAGBNE 8;@3@5;3>
3EE7FE
3@6 >;34;>;F;7E
3D7 E7F AGF ;@
'AF7


36'/83+4:
5, 55*=/22 -:7 ;DEF
!A>6;@9E DAGBB7D8AD?E ;?B3;D?7@FD7H;7I
A@
9AA6I;>> A@ 3@ 3@@G3> 43E;E
AD ?AD78D7CG7@F>K ;8
7H7@FE
AD 5:3@97E ;@ 5;D5G?EF3@57E ;@6;53F7 F:3FF:7 53DDK;@9 H3>G7?3K
47
;?B3;D76 -:;ED7CG;D7E 3@ 7EF;?3F;A@
A8
F:7 H3>G7;@GE7
A8
F:7
53E: 97@7D3F;@9 G@;FE
FA I:;5:
9AA6I;>> ;E 3>>A53F76 EF;?3F;@9 F:7 H3>G7;@
GE7 D7CG;D7E
GE
FA?3=7
3@
7EF;?3F7
A8
F:7
7JB75F76 8GFGD753E:8>AIE 8DA?
F:7
53E: 97@7D3F;@9 G@;F 3@6 3>EA FA 5:AAE7
3
EG;F34>7 6;E5AG@FD3F7;@AD67DFA 53>5G>3F7
F:7
BD7E7@F H3>G7A8
F:AE753E:8>AIE

'A ;?B3;D?7@F >AEE
A@ 9AA6I;>> I3ED75A9@;L76 ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE 8AD
735:
A8
F:7
F:D77 K73DE ;@ F:7 B7D;A6 7@676 757?47D

  -:7 53DDK;@9 H3>G7
A8
9AA6I;>> 3E
A8
757?47D

 
3@6
  3?AG@F76 FA)  4;>>;A@ E77 'AF7


9:/3':/4- 225='4)+ ,58 36'/83+4: 599+9
54
"+)+/<'(2+9 -:7 ;DEF
!A>6;@9E DAGB D7H;7IE ;FE >A3@E 3@6 D757;H34>7E
3F
735: D7BADF;@9 63F7 FA
3EE7EE I:7F:7D
3@ 3>>AI3@57 8AD ;?B3;D?7@FE:AG>6 47 D75AD676 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"@ B3DF;5G>3D AIE I:7@
67F7D?;@;@9 F:7 >7H7>
A8 3>>AI3@57 D7CG;D76 ,G5: 7EF;?3F7E
3D7
43E76 A@ 3EEG?BF;A@E 34AGF 3@G?47D
A8 835FADE
3@6
35FG3> D7EG>FE ?3K 6;887D D7EG>F;@9;@8GFGD7 5:3@97E ;@ F:7 3>>AI3@57

-:7 ;DEF
!A>6;@9E DAGB ?3;@F3;@E 3@ 3>>AI3@57 8AD 6AG4F8G>
355AG@FE
3F
3>7H7>
F:3F
?3@397?7@F 5A@E;67DE 367CG3F7
FABDAH;67 8AD
BAF7@F;3> G@5A>>75F;4;>;FK
A8 ;FE
FD367 3@6 AF:7DD757;H34>7E
3@6 ;FE D757;H34>7E
3D;E;@9 8DA? E7DH;57 5A@57EE;A@ 3DD3@97?7@FE -:7 ;DEF
!A>6;@9E DAGB7H3>G3F7EEB75;8;5 43>3@57EI:7D7 ?3@397?7@F :3E ;@8AD?3F;A@
F:3F 57DF3;@
3?AG@FE ?3K @AF 47 5A>>75F;4>7

"@ F:7E7 53E7E
F:7
;DEF !A>6;@9E DAGB
GE7E 34>7 835FE
3@6
5;D5G?EF3@57E
3@6 3 D7H;7I A8
F:7
835FADE
F:3F
38875F
F:7 5A>>75F;4;>;FK
A8
F:7 355AG@FE ;@5>G6;@9 4GF @AF >;?;F76 FA
F:7
397 3@6 EF3FGE
A8 F:7 D757;H34>7E 5A>>75F;A@ 7JB7D;7@57 B3EF >AEE
7JB7D;7@57 3@6 ;@
F:7 53E7
A8
F:7 D757;H34>7E 3D;E;@9 8DA? E7DH;57 5A@57EE;A@
3DD3@97?7@FE
F:7
7JB75F76 @7F 53E:;@8>AIE 8DA?
F:7
5A@57EE;A@ -:7 D7H;7I ;E ?367 4K ?3@397?7@F
A@
35A@F;@G;@9 43E;E
FA;67@F;8K
355AG@FE
FA
47 BDAH;676 I;F: 3>>AI3@57 -:7E7 EB75;8;5 D7E7DH7E
3D7 D7 7H3>G3F76
3@6
36 ;@8AD?3F;A@ D757;H76
38875FE
F:7
3?AG@F 7EF;?3F76

"@ 366;F;A@
FA
EB75;8;5
3>>AI3@57 393;@EF ;@6;H;6G3>>KE;9@;8;53@FD757;H34>7E F:7 ;DEF
!A>6;@9E DAGB3>EA?3=7E
3
5A>>75F;H7 ;?B3;D?7@F
3>>AI3@57 393;@EF
7JBAEGD7EI:;5:
3>F:AG9: @AFEB75;8;53>>K ;67@F;8;76
3ED7CG;D;@9 3 EB75;8;5
3>>AI3@57
:3H73
9D73F7DD;E=
A8
6783G>F
F:3@ I:7@
AD;9;@3>>K
9D3@F76 -:;E 5A>>75F;H7
3>>AI3@57 ;E
43E76 A@ :;EFAD;53> 6783G>F 7JB7D;7@57

"@
366;F;A@
FA
EB75;8;5
3>>AI3@57 393;@EF ;@6;H;6G3>>KE;9@;8;53@FD757;H34>7E ;DEF !A>6;@9E DAGB3>EA ?3=7E
3
5A>>75F;H7 ;?B3;D?7@F 3>>AI3@57
393;@EF
7JBAEGD7EI:;5: 3>F:AG9: @AFEB75;8;53>>K ;67@F;8;76 3E D7CG;D;@9 3 EB75;8;5 3>>AI3@57
:3H73
9D73F7DD;E=
A8
6783G>FF:3@ I:7@
AD;9;@3>>K 9D3@F76 A>>75F;H7 3EE7EE?7@F
A8 ;?B3;D?7@F ;E ?367
A@ 3 BADF8A>;A AD
9DAGB43E;E
38F7D
B7D8AD?;@9
3
D79G>3DD7H;7I
A8
397
3@6 EF3FGE
A8
F:7 BADF8A>;A 9DAGB
A8
355AG@FE D7>3F;H7 FA
:;EFAD;53> 5A>>75F;A@E 5:3@97E ;@
B3K?7@FF7D?E 3@6 AF:7D 835FADE
F:3F ?3K 38875F
34;>;FK FA 5A>>75F B3K?7@FE

-:7
3>>AI3@57 8AD ;?B3;D?7@F >AEE7E
A@
D757;H34>7E 3?AG@F76
FA)  ?;>>;A@ 3@6 )  ?;>>;A@
3E A8
757?47D

  3@6   D7EB75F;H7>K E77 'AF7E

3@6 

+757;H34>7E
3?AG@F76
FA)  4;>>;A@ 3@6 )  ?;>>;A@
3E
A8
757?47D
   3@6   D7EB75F;H7>K E77 'AF7E  3@6 

80 9:/3':/4- +: "+'2/@'(2+ &'2;+ 5,
4<+4:58/+9 "@H7@FAD;7E
3D7
BD7E7@F76 3FF:7 >AI7D
A8 5AEF
AD
@7F D73>;L34>7 H3>G7 EF;?3F7E
A8
@7F
D73>;L34>7 H3>G7
3D743E76 A@ F:7 ?AEF D7>;34>7 7H;67@57 3H3;>34>7
3F F:7 F;?7
F:7
7EF;?3F7E
3D7 ?367
A8
F:7
3?AG@F
F:7 ;@H7@FAD;7E 3D7
7JB75F76 FA D73>;L7  D7H;7I
A8
F:7 ;F7?E
A8 ;@H7@FAD;7E ;E
B7D8AD?76
3F
735:
43>3@57 E:77F
63F7
FA
D78>75FF:7 355GD3F7 H3>G3F;A@ A8 ;@H7@FAD;7E ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

"@H7@FAD;7E
3?AG@F76
FA) 
4;>>;A@
3@6 )  4;>>;A@ 3E A8
757?47D

  3@6   D7EB75F;H7>K E77
'AF7 

36'/83+4:
5,
4<+9:3+4:9 ': 7;/:?
'4*
+659/:9 @ ;?B3;D?7@FD7H;7I ;E B7D8AD?76
A@
;@H7EF?7@FE
3F
7CG;FK 3@6
67BAE;FE I:7@7H7D ;?B3;D?7@F ;@6;53F;A@ 7J;EFE -:;ED7CG;D7E 3@
7EF;?3F;A@
A8
F:7 H3>G7;@ GE7
A8
F:7 3EEA5;3F7E EF;?3F;@9
F:7 H3>G7;@
GE7 D7CG;D7E
7EF;?3F7E
A8
F:7 7JB75F76 8GFGD753E:8>AIE 8DA?
F:7
3EEA5;3F7E
3@6
FA?3=7
GE7
A8
3
EG;F34>7 6;E5AG@FD3F7 FA 53>5G>3F7
F:7
BD7E7@FH3>G7A8
F:AE7 8GFGD753E:8>AIE

'A ;?B3;D?7@F >AEE
A@ ;@H7EF?7@FE
3F
7CG;FK 3@6 67BAE;FE
I3ED75A9@;L76 ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE 8AD
F:7 K73DE
7@676 757?47D

    3@6   -:7 53DDK;@9
3?AG@F
A8 ;@H7EF?7@FE 3F
7CG;FK 3@6 67BAE;FE
3E
A8
757?47D

  3@6   3?AG@F76 FA)  4;>>;A@
3@6 )  4;>>;A@ D7EB75F;H7>K E77 'AF7


36'/83+4:
5, # /4'4)/'2 99+:9 -:7 ;DEF
!A>6;@9E DAGB5A@E;67DE  , 8;@3@5;3>
3EE7FE
3E ;?B3;D76 I:7@ F:7D7:3E 477@ 3 E;9@;8;53@F AD
BDA>A@976 675>;@7 ;@ F:7 83;DH3>G7A8EG5: ;@H7EF?7@FE 47>AI
F:7;D 5AEF ADI:7D7
AF:7D
A4<75F;H77H;67@57 A8 ;?B3;D?7@F
7J;EFE -:7
67F7D?;@3F;A@ A8 I:3F ;E OE;9@;8;53@FP ADOBDA>A@976PD7CG;D7E 6;@9E DAGB
FD73FE OE;9@;8;53@FP 97@7D3>>K
3E  
AD ?AD7
3@6
OBDA>A@976P
3E
9D73F7D
F:3@ E;J ?A@F:E

"@
366;F;A@ ;DEF
!A>6;@9E DAGB7H3>G3F7E AF:7D 835FADE ;@5>G6;@9
@AD?3> HA>3F;>;FK ;@ E:3D7
BD;57
8AD
CGAF76 7CG;F;7E 3@6 F:7
8GFGD753E:8>AIE
3@6 F:7 6;E5AG@F 835FADE 8AD
G@CGAF76
7CG;F;7E

'A ;?B3;D?7@F >AEE I3ED75A9@;L76 ;@
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE 8AD
F:7 K73DE
7@676 757?47D

    3@6    , 8;@3@5;3> 3EE7FE
3D753DD;76 3F ) ?;>>;A@ 3@6 )  ?;>>;A@
3E
A8
757?47D

 
3@6
  D7EB75F;H7>K E77
'AF7E
 3@6  

!8+9+4: &'2;+
5, "+:/8+3+4: (2/-':/54 -:7 67F7D?;@3F;A@ A8
F:7
;DEF !A>6;@9E DAGBNE D7F;D7?7@F 5AEF ;E
67B7@67@F A@ 57DF3;@
3EEG?BF;A@EI:;5:
F:7 ?3@397?7@F
BDAH;676
FA
F:7 35FG3DK
FA
GE7
3E 43E;E
FA 53>5G>3F7 EG5: 3?AG@F -:7
35FG3D;3> H3>G3F;A@ ;@HA>H7E ?3=;@9
3EEG?BF;A@E A@ 6;E5AG@FD3F7E
7JB75F76 D7FGD@E
A@ B>3@
3EE7FE 8GFGD7 E3>3DK ;@5D73E7E ?ADF3>;FK D3F7E 3@6 8GFGD7 D7F;D7?7@F ;@5D73E7E D3F7E
A8 5A?B7@E3F;A@ ;@5D73E7
"@ 355AD63@57 I;F: ), 
B3EF E7DH;57 5AEFE 7JB7D;7@57
36
3EEG?BF;A@E
3D7
677?76
FA
47
3?ADF;L76 AH7D
F:7
3H7D397 D7?3;@;@9 IAD=;@9 >;H7E A8
7?B>AK77E 0:;>7
F:7
3EEG?BF;A@E
3D7 D73EA@34>7 3@6 3BBDABD;3F7 E;9@;8;53@F 6;887D7@57E ;@
F:7 ;DEF !A>6;@9E DAGBNE
35FG3>
7JB7D;7@57
ADE;9@;8;53@F 5:3@97E ;@
F:7
3EEG?BF;A@E ?3K ?3F7D;3>>K
38875F
F:7
D7F;D7?7@F 47@78;F A4>;93F;A@ GDF:7D
6G7
FA
F:7 >A@9 F7D?
@3FGD7
A8
F:7 B>3@ EG5: 7EF;?3F7E
3D7 EG4<75F
FA
E;9@;8;53@FG@57DF3;@FK

-:7
7JB75F76 D3F7
A8 D7FGD@
A@
B>3@
3EE7FE I3E 43E76 A@
F:7 3H7D397 :;EFAD;53> BD7?;G?
A8
F:7
8G@6 3EE7FE -:7
3EEG?76
6;E5AG@FD3F7EI7D7
67F7D?;@76
GE;@9
F:7 ?3D=7FK;7>6E
A@ ):;>;BB;@7
9AH7D@?7@F 4A@6EI;F:
F7D?E 5A@E;EF7@F
I;F:
F:7
7JB75F76
7?B>AK77 47@78;F B3KAGF
3E
3FF:7 43>3@57 E:77F 63F7 'AF7FA
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
67F3;>E
F:7
3EEG?BF;A@E
GE76 ;@ F:7 53>5G>3F;A@

E
A8
757?47D

 
3@6  
F:7
BD7E7@FH3>G7A8
47@78;F A4>;93F;A@
A8
F:7 ;DEF
!A>6;@9E DAGB 3?AG@F76
FA) 4;>>;A@
3@6 )  4;>>;A@ D7EB75F;H7>K .@D75A9@;L76 5G?G>3F;H7
35FG3D;3> >AEE7E
3E
A8 757?47D

  3@6  
3?AG@F76
FA) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K E77 'AF7 

"+)5-4/:/54 5,
+,+88+* $'> 99+:9 -:7 53DDK;@9
3?AG@FE
A8
6787DD76 F3J
3EE7FE
3F
735: 43>3@57 E:77F 63F73D7 D7H;7I76
3@6 D76G576
FA
F:7 7JF7@FF:3F
F:7D73D7
@A >A@97DEG88;5;7@FF3J34>7
BDA8;FE 3H3;>34>7
FA 3>>AI 3>>
AD B3DF
A8
F:7 6787DD76
F3J
3EE7FE
FA
47 GF;>;L76 -:7 ;DEF
!A>6;@9E DAGBNE
3EE7EE?7@F
A8
F:7
D75A9@;F;A@
A8
6787DD76 F3J
3EE7FE
A@
676G5F;4>7
F7?BAD3DK 6;887D7@57E 53DDK8ADI3D6
47@78;FE
A8
&"-
3@6
'(%( ;E 43E76 A@
F:7 8AD753EF76 F3J34>7 ;@5A?7
A8
F:7
8A>>AI;@9 D7BADF;@9 B7D;A6 -:;E 8AD753EF ;E 43E76 A@ F:7 ;DEF
!A>6;@9E DAGBNE B3EF D7EG>FE
3@6 8GFGD7
7JB75F3F;A@E A@ D7H7@G7E
3@6
7JB7@E7E

81 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

E
A8
757?47D

 
3@6  
F:7
3?AG@F
A8
9DAEE
6787DD76
F3J
3EE7FE D75A9@;L76 ;@
F:7 5A@EA>;63F76 43>3@57 E:77FE
3?AG@F76
FA)  4;>>;A@
3@6 ) 
4;>>;A@ D7EB75F;H7>K .@D75A9@;L76 9DAEE 6787DD76
F3J
3EE7FE
3E
A8 757?47D

  3@6  
3?AG@F76 FA)  4;>>;A@
3@6 )  4;>>;A@ D7EB75F;H7>K E77 'AF7


9:/3':/4- "+<+4;+ '4* 59:
5,
"+'2 9:':+ #'2+9 -:7
A?B3@KNE D7H7@G7 3@6 5AEF D75A9@;F;A@ BA>;5;7ED7CG;D7 ?3@397?7@F
FA
?3=7
GE7
A8
7EF;?3F7E
3@6 3EEG?BF;A@E
F:3F ?3K 38875F
F:7
D7BADF76 3?AG@FE
A8 D7H7@G7E
3@6 5AEFE -:7
A?B3@KNE D7H7@G78DA? D73>
7EF3F75A@FD35FE D75A9@;L76
43E76
A@ F:7 B7D57@F397A85A?B>7F;A@ ?7F:A6
3D7?73EGD76 BD;@5;B3>>K A@ F:7 43E;E
A8
F:7 D3F;A
A8
35FG3> 5AEFE ;@5GDD76 FA63F7AH7D
F:7
7EF;?3F76
FAF3> 5AEFE
A8
F:7 BDA<75F -:7
FAF3>
7EF;?3F76 5AEF
A8
F:7
BDA<75F ;E 67F7D?;@76 4KF:7 A?B3@KNE 7@9;@77DE
3@6 F75:@;53> EF388 F
735: 43>3@57 E:77F
63F7 F:7E77EF;?3F7E 3D7 D7H;7I76 3@6 D7H;E76 FA D78>75F
F:7 5GDD7@F 5A@6;F;A@E I:7@ @757EE3DK

+7H7@G7E
3@6 5AEFE 8DA? D73> 7EF3F7 EA>6
3?AG@F76
FA) ?;>>;A@ 3@6 )  ?;>>;A@ D7EB75F;H7>K ;@   ) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K ;@
 
3@6 ) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K ;@  

9:/3':/4-
%9+,;2
/<+9 5, !856+8:? !2'4: '4* 7;/63+4: '4* 4:'4-/(2+ 99+:9 -:7 ;DEF
!A>6;@9E DAGB
7EF;?3F76 F:7 GE78G>>;H7E
A8
F:7
BDAB7DFK B>3@F 3@6 7CG;B?7@F
3@6 ;@F3@9;4>7 3EE7FE
43E76
A@ F:7 B7D;A6E AH7DI:;5:
F:7
3EE7FE
3D7
7JB75F76 FA473H3;>34>7 8AD
GE7
3@6 A@
F:7 5A>>75F;H7
3EE7EE?7@F
A8 ;@6GEFDK
BD35F;57E ;@F7D@3> F75:@;53> 7H3>G3F;A@ 3@6 7JB7D;7@57 I;F: E;?;>3D
3EE7FE
3@6 3DD3@97?7@FE -:7
7EF;?3F76
GE78G>>;H7E A8
BDAB7DFK B>3@F
3@6
7CG;B?7@F
3@6
;@F3@9;4>7
3EE7FE 3D7 D7H;7I76 B7D;A6;53>>K 3@6 GB63F76 ;8 7JB75F3F;A@E 6;887D
8DA?
BD7H;AGE
7EF;?3F7E
6G7
FAB:KE;53> I73D
3@6
F73D F75:@;53>
AD 5A??7D5;3>
A4EA>7E57@57 3@6 >793>
AD
AF:7D >;?;FE ;@ F:7 GE7
A8
F:7E7BDAB7DFK B>3@F 3@6 7CG;B?7@F
3@6 ;@F3@9;4>7 3EE7FE

!AI7H7D ;F ;E BAEE;4>7 F:3F 8GFGD7 D7EG>FE
A8
AB7D3F;A@E 5AG>6 47 ?3F7D;3>>K
38875F76 4K 5:3@97E ;@
F:7
7EF;?3F7E
4DAG9:F
34AGF
4K 5:3@97E ;@
F:7 38AD7?7@F;A@76 835FADE -:7
3?AG@FE
3@6
F;?;@9 A8 D75AD6;@9
F:7
67BD75;3F;A@ 3@6 3?ADF;L3F;A@ 8AD
3@KK73D I;F: D793D6
FA F:7 BDAB7DFK B>3@F 3@6 7CG;B?7@F 3@6 ;@F3@9;4>7 3EE7FE
IAG>6 47
38875F76 4K 5:3@97E ;@ F:7E7835FADE
3@6 5;D5G?EF3@57E D76G5F;A@ ;@
F:7
7EF;?3F76
GE78G>>;H7E
A8
F:7
BDAB7DFK B>3@F
3@6
7CG;B?7@F 3@6 ;@F3@9;4>7
3EE7FE IAG>6 ;@5D73E7
F:7 D75AD676 67BD75;3F;A@
3@6
3?ADF;L3F;A@ 3@6 675D73E7
F:7
@A@5GDD7@F 3EE7FE AD
BGDBAE7E
A8
67F7D?;@;@9
F:7
7EF;?3F76
GE78G>>;87
A8
F:7
;@F3@9;4>7
3EE7F
3D;E;@9 8DA? E7DH;57 5A@57EE;A@
3DD3@97?7@FE  ;@ B3DF;5G>3D ;@5>G676
F:7
D7@7I3> B7D;A6 A@
F:7 43E;E
A8
F:7
5A@EF;FGF;A@3>
3@6 5A@FD35FG3>
BDAH;E;A@E
3@6 ;FE :;EFAD;53>
7JB7D;7@57
A8
A4F3;@;@9 3BBDAH3>E A8 EG5: D7@7I3>E
3F @A E;9@;8;53@F 5AEF AD ;@F3@9;4>7
3EE7FE B7DF3;@;@9
FA F:7 ;67@F;8;76 5A@FD35FE
3D;E;@9 8DA?
F:7
35CG;E;F;A@
A8 
F:7 53DDK;@9 H3>G7;E
3?ADF;L76 AH7D
F:7
D7?3;@;@9 F7D?A8
F:7 5A@FD35FE

-:7D7;E
@A
5:3@97 ;@
F:7 7EF;?3F76
GE78G>>;H7E
A8
BDAB7DFK
B>3@F 3@6
7CG;B?7@F
3@6 ;@F3@9;4>7 3EE7FE 6GD;@9
F:7 K73D -:753DDK;@9 H3>G7E
A8
BDAB7DFK
B>3@F
3@6 7CG;B?7@F
3?AG@F76 FA)  4;>>;A@ 3@6 )  4;>>;A@
3E
A8
757?47D
  
3@6   E77 'AF7I:;>7
F:7 53DDK;@9 H3>G7
A8 ;@F3@9;4>7 3EE7FE
3E
A8
757?47D

 
3@6
757?47D
  
3?AG@F76
FA)  4;>>;A@
3@6 )  4;>>;A@ D7EB75F;H7>K E77 'AF7


36'/83+4:
5, :.+8 54,/4'4)/'2 99+:9 / + 
4<+9:3+4: !856+8:/+9 !8+6'/* '9
'4* !8+6'/* '058 #6'8+ !'8:9 -:7 ;DEF !A>6;@9E DAGB3EE7EE7E ;?B3;D?7@F
A@
F:7E7 @A@ 8;@3@5;3> 3EE7FE
I:7@7H7D 7H7@FE
AD 5:3@97E ;@ 5;D5G?EF3@57E ;@6;53F7 F:3FF:7 53DDK;@9
3?AG@F
A8
3@ 3EE7F ?3K @AF 47 D75AH7D34>7 -:7 835FADE
F:3F
F:7
;DEF !A>6;@9E DAGB5A@E;67D ;?BADF3@F I:;5: 5AG>6
FD;997D
3@
;?B3;D?7@FD7H;7I ;@5>G67 F:7 8A>>AI;@9

,;9@;8;53@F
G@67D B7D8AD?3@57 D7>3F;H7 FA
7JB75F76 :;EFAD;53> AD
BDA<75F76 8GFGD7AB7D3F;@9 D7EG>FE

,;9@;8;53@F 5:3@97E ;@
F:7 ?3@@7D
A8
GE7
A8
F:7
35CG;D76
3EE7FE
ADF:7 EFD3F79K 8AD
AH7D3>>
4GE;@7EE 3@6

,;9@;8;53@F
@793F;H7;@6GEFDK
3@6
75A@A?;5
FD7@6E

-:7 ;DEF
!A>6;@9E DAGB D75A9@;L7E
3@ ;?B3;D?7@F >AEE I:7@7H7DF:7 53DDK;@9 3?AG@F
A8
3@
3EE7F 7J5776E ;FE D75AH7D34>7
3?AG@F -:7D75AH7D34>7
3?AG@F ;E 5A?BGF76
GE;@9
F:7 H3>G7 ;@ GE73BBDA35: +75AH7D34>7
3?AG@FE
3D77EF;?3F76 8AD ;@6;H;6G3>
3EE7FE
AD ;8;F ;E
@AF
BAEE;4>7 8AD
F:7
53E: 97@7D3F;@9 G@;F
FA I:;5: F:7 3EE7FE
47>A@9

82 -:7D7;E
@A ;?B3;D?7@F >AEE D75A9@;L76 ;@
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE 8AD
F:7 K73DE
7@676 757?47D

    3@6   -:7 399D793F753DDK;@9
3?AG@F
A8
3EE7FE EG4<75F76 FA ;?B3;D?7@F F7EF;@9
3?AG@F76
FA)  4;>>;A@ 3@6 )  4;>>;A@ 3E
A8
757?47D

  3@6   D7EB75F;H7>K E77 'AF7E 
3@6  

>6258':/54 '4* <'2;':/54 59:9 JB>AD3F;A@
3@6 7H3>G3F;A@ 5AEFE
3D7 53B;F3>;L76 ;@
355AD63@57 I;F: ) +,  OJB>AD3F;A@ 8AD
3@6 H3>G3F;A@
A8
&;@7D3>
+7EAGD57E P

3B;F3>;L3F;A@
A8 F:7E75AEFE ;E 43E76 FA 357DF3;@
7JF7@F A@ ?3@397?7@FNE D7E7DH7 ;DEF
!A>6;@9 DAGB
67F7D?;@7E ;?B3;D?7@F
A8
BDA<75FE
43E76 A@ F:7 F75:@;53>
3EE7EE?7@F
A8 ;FE D7E;67@FE5;7@F;EFE ;@ H3D;AGE 6;E5;B>;@7E
AD
43E76 A@ ?3@397?7@FNE 675;E;A@ @AF
FA
BGDEG7
3@K 8GDF:7D 5A??7D5;3>
67H7>AB?7@F
A8 ;FE
7JB>AD3F;A@ BDA<75FE F 757?47D

 
3@6
  F:7 53DDK;@9
3?AG@F
A8 53B;F3>;L76 7JB>AD3F;A@ 3@6 7H3>G3F;A@ 5AEFE
3?AG@F76
FA) ?;>>;A@ 3@6 )  ?;>>;A@ D7EB75F;H7>K E77 'AF7
 

99+:
"+:/8+3+4: (2/-':/549 .@67D 57DF3;@ @H;DA@?7@F3>
A?B>;3@57
7DF;8;53F7  ;EEG76 4K
F:7 7B3DF?7@F
A8 @H;DA@?7@F3> 3@6 '3FGD3> +7EAGD57E F:7 ;DEF !A>6;@9E DAGB EB75;8;53>>K )
3@6 ) :3E >793>
A4>;93F;A@E
FA
6;E?3@F>7 F:7 BAI7D
B>3@F
3EE7FE 3F
F:7
7@6
A8
F:7;D
GE78G>>;H7E G=;6@A@ A@
F:7
AF:7D :3@6
:3E 5A@FD35FG3> A4>;93F;A@
G@67D
F:7 >73E739D77?7@FE I;F: ),%& FA 6;E?3@F>7 ;FE
BAI7D
B>3@F
3EE7FE
3F
F:7 7@6
A8
F:7 GE78G>>;H7E -:7
3EE7FD7F;D7?7@F
A4>;93F;A@E D75A9@;L76 D7BD7E7@FF:7 47EF
7EF;?3F7
A8
F:7
7JB7@6;FGD7ED7CG;D76 FA6;E?3@F>7 F:7 BAI7D B>3@FE
3F
F:7 7@6 A8
F:7;D
GE78G>>;H7E ,G5: 5AEF
7EF;?3F7E
3D76;E5AG@F76
GE;@9 3
BD7 F3JD3F7 F:3FD78>75FE
F:7 5GDD7@F ?3D=7F
3EE7EE?7@F
A8
F:7
F;?7 H3>G7 A8 ?A@7K 3@6 F:7 D;E=EEB75;8;5
FA
F:7 >;34;>;FK 35: K73D F:7
3EE7F D7F;D7?7@F
A4>;93F;A@ ;E ;@5D73E76 FA D78>75F
F:7
355D7F;A@
A8
6;E5AG@F 3@6 FA
355DG7
3@ 7EF;?3F78AD
F:7
78875FE A8 ;@8>3F;A@ I;F: F:7 5:3D97E
47;@9 D75A9@;L76 ;@
F:7 O ;@3@57
AEFEP
355AG@F BD7E7@F76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 0:;>7 ;F ;E 47>;7H76
F:3F
F:7 3EEG?BF;A@E
GE76 ;@ F:7
7EF;?3F;A@
A8 EG5: 5AEFE
3D7 D73EA@34>7 E;9@;8;53@F 5:3@97E ;@ F:7E7
3EEG?BF;A@E ?3K ?3F7D;3>>K
38875F
F:7
D75AD676 7JB7@E7AD
A4>;93F;A@E ;@ 8GFGD7
B7D;A6E

EE7FD7F;D7?7@F A4>;93F;A@E
3?AG@F76
FA) ?;>>;A@
3@6 ) ?;>>;A@
3E
A8
757?47D

  3@6
  D7EB75F;H7>K E77 'AF7


+-'2 54:/4-+4)/+9
'4* "+-;2':58? 99+993+4:9 -:7 ;DEF !A>6;@9E DAGB;E ;@HA>H76 ;@ H3D;AGE >793> BDA5776;@9E 3@6 D79G>3FADK
3EE7EE?7@FE
3E
6;E5GEE76 ;@ 'AF7  -:7 ;DEF
!A>6;@9E DAGB:3E 67H7>AB76
7EF;?3F7E
A8
BDA434>7 5AEFE 8AD
F:7
D7EA>GF;A@
A8
BAEE;4>7 5>3;?E ;@ 5A@EG>F3F;A@ I;F: F:7 7JF7D@3> 5AG@E7>E
:3@6>;@9 F:7 A?B3@KNE 6787@E78ADH3D;AGE >793>
BDA5776;@9E
3@6 D79G>3FADK 3EE7EE?7@FE
3@6
;E 43E76 GBA@
3@ 3@3>KE;E
A8
BAF7@F;3> D7EG>FE

-:7 ;DEF
!A>6;@9E DAGB ;@ 5A@EG>F3F;A@ I;F:;FE 7JF7D@3> >793> 5AG@E7> 6A7E @AF 47>;7H7 F:3FF:7E7 BDA5776;@9EI;>> :3H7
3
?3F7D;3>
36H7DE7
78875F
A@
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

!AI7H7D ;F ;E BAEE;4>7
F:3F 8GFGD7 D7EG>FE A8
AB7D3F;A@E 5AG>6 47 ?3F7D;3>>K
38875F76 4K 5:3@97E ;@ F:7
7EF;?3F7E
AD
F:7
78875F;H7@7EE
A8 ?3@397?7@FNE EFD3F79;7ED7>3F;@9
FA F:7E7
BDA5776;@9E

E
A8
757?47D

 
3@6  
FAF3> BDAH;E;A@E 8AD
BDA434>7 >AEE7E
3D;E;@9 8DA? 5A@F;@97@5;7E I:;5: 3D7
67F7D?;@34>7
3?AG@F76
FA) ?;>>;A@
3@6 )  ?;>>;A@ D7EB75F;H7>K

 '2492:@
:3;>9.@6;:

(B7D3F;@9 E79?7@FE
3D7 5A?BA@7@FE
A8
F:7
;DEF !A>6;@9E DAGB F:3F 7@9397 ;@ 4GE;@7EE
35F;H;F;7E 8DA? I:;5: F:7K ?3K 73D@ D7H7@G7E
3@6 ;@5GD
7JB7@E7E I:AE7AB7D3F;@9 D7EG>FE 3D7 D79G>3D>KD7H;7I76 4K
F:7 7@F7DBD;E7NE 5:;78
AB7D3F;@9
675;E;A@ ?3=7D
FA?3=7
675;E;A@E 34AGF
:AID7EAGD57E
3D7
FA
47 3>>A53F76
FA
F:7 E79?7@F 3@6
3EE7EE
F:7;D
B7D8AD?3@57E
3@6
8AD
I:;5: 6;E5D7F7 8;@3@5;3> ;@8AD?3F;A@ ;E 3H3;>34>7 ;DEF !A>6;@9E DAGB AB7D3F;@9 4GE;@7EE7E
3D7AD93@;L76
3@6 ?3@3976 E7B3D3F7>K
355AD6;@9
FA F:7 @3FGD7
A8 F:7
BDA6G5FE 3@6 E7DH;57E I;F: 735: E79?7@FD7BD7E7@F;@9
3
EFD3F79;5
4GE;@7EE G@;FF:3F A887DE
6;887D7@F BDA6G5FE
3@6 E7DH7E
6;887D7@F ?3D=7FE

83 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7 ;DEF
!A>6;@9E DAGB 5A@6G5FE F:7 ?3>AI;@9
3D73E

)AI7D 97@7D3F;A@ 3@6
BAI7D D7>3F76
35F;H;F;7E
+A36E 3@6 FA>>I3KE AB7D3F;A@E 6;E5A@F;@G76 AB7D3F;A@E
&3@G835FGD;@9 3@6
"@H7EF?7@F
:A>6;@9E 5A@EFDG5F;A@ D73>
7EF3F767H7>AB?7@F E75GD;F;7E
FD3@E87DE7DH;57E
3@6 8;@3@5;@9 I:;5: 3D7399D793F76
3EO(F:7DE P

-:7
AB7D3F;A@E
A8
F:7E7
4GE;@7EE E79?7@FE
3D7;@F:7 ):;>;BB;@7E

,79?7@FD7H7@G7 E79?7@F
7JB7@E7E 3@6 E79?7@F B7D8AD?3@57 ;@5>G67
FD3@E87DE
47FI77@ 4GE;@7EE E79?7@FE -:7
FD3@E87DE
3D7
355AG@F76 8AD
3F
5A?B7F;F;H7?3D=7F
BD;57E 5:3D976 FA
G@D7>3F76 5GEFA?7DE 8ADE;?;>3D
BDA6G5FE ,G5: FD3@E87DE
3D7
7>;?;@3F76 ;@ 5A@EA>;63F;A@

;@3@5;3> ;@8AD?3F;A@ 34AGF
F:7 4GE;@7EE E79?7@FE 8A>>AIE

 :B2?@92:@ $;C2> &;.1? .:1 ;816:4? 2:2>.@6;: (;88C.E? ;:?@>A0@6;: .:1 $;C2> #<2>.@6;:? &2.8 ?@.@2 &28.@21 6?0;:@6:A21 !.:A3.0 2B28;<92:@ 0@6B6@62? #<2>.@6;:? @A>6:4 .:1 #@52>? 8696:.@6;:? ;:?;861.@21 4 /22/549 +7H7@G7 JF7D@3> E3>7E $  $  $   $  $H$  "@F7D E79?7@FE3>7E HH  -AF3> D7H7@G7           ,79?7@FD7EG>FE        CG;FK ;@ 73D@;@9E A8 3EEA5;3F7E     H  ;@3@57 5AEFE        H   ;@3@57 ;@5A?7    H  )DAH;E;A@
8AD ;@5A?7 F3J   H  H   '7F ;@5A?7        (F:7D ;@8AD?3F;A@ ,79?7@F 3EE7FE   H         "@H7EF?7@F ;@ 3EEA5;3F7E  H         )DAB7DFK B>3@F 3@6 7CG;B?7@F @7F  H   H   "@F3@9;4>7 3EE7FE @7F  HHHH  -AF3> 5A@EA>;63F76 3EE7FE   H        ,79?7@F >;34;>;F;7E  H         -AF3> 5A@EA>;63F76 >;34;>;F;7E   H        7BD75;3F;A@ 3@6 3?ADF;L3F;A@      H   3B;F3> 7JB7@6;FGD7E     H  

  "@H7EF?7@F )AI7D +A36E 3@6 !A>6;@9E 7@7D3F;A@ -A>>I3KE A@EFDG5F;A@ 3@6 )AI7D (B7D3F;A@E +73> EF3F7 +7>3F76 ;E5A@F;@G76 &3@G835 7H7>AB?7@F 5F;H;F;7E (B7D3F;A@E FGD;@9 3@6 (F:7DE >;?;@3F;A@E A@EA>;63F76 4 /22/549 +7H7@G7 JF7D@3> E3>7E )  )  )  )  )Q )  "@F7D E79?7@FE3>7E QQQ   Q -AF3> D7H7@G7             ,79?7@FD7EG>FE           CG;FK ;@ 73D@;@9E A8 3EEA5;3F7E       Q   ;@3@57 5AEFE        Q   ;@3@57 ;@5A?7      Q   )DAH;E;A@
8AD ;@5A?7 F3J      Q   '7F ;@5A?7          (F:7D ;@8AD?3F;A@ ,79?7@F 3EE7FE             "@H7EF?7@F ;@ 3EEA5;3F7E           )DAB7DFK B>3@F 3@6 7CG;B?7@F @7F       Q   "@F3@9;4>7 3EE7FE @7F     QQQ  -AF3> 5A@EA>;63F76 3EE7FE             ,79?7@F >;34;>;F;7E             -AF3> 5A@EA>;63F76 >;34;>;F;7E             7BD75;3F;A@ 3@6 3?ADF;L3F;A@      Q   3B;F3> 7JB7@6;FGD7E       

84   "@H7EF?7@F !A>6;@9E )AI7D +A36E 3@6 A@EFDG5 7@7D3F;A@ -A>>I3KE F;A@ +73> 8875F A8 3@6 )AI7D (B7D3F;A@E EF3F7 A@EA>;63F76 3D>K +7>3F76 ;E5A@F;@G76 &3@G835 7H7>AB?7@F 3E )D7H;AGE>K 6ABF;A@ 5F;H;F;7E (B7D3F;A@E FGD;@9 3@6
(F:7DE >;?;@3F;A@E +7BADF76 A8 " +"  E
+7EF3F76 4 /22/549 +7H7@G7 JF7D@3> E3>7E )  )   )  ) )Q )  )Q )  "@F7D E79?7@FE3>7E QQQ  QQQ -AF3> D7H7@G7            Q   ,79?7@FD7EG>FE              CG;FK ;@ 73D@;@9E A8 3EEA5;3F7E             ;@3@57
5AEFE       Q   Q   ;@3@57
;@5A?7      Q   Q   )DAH;E;A@ 8AD ;@5A?7
F3J      Q       '7F
;@5A?7             (F:7D ;@8AD?3F;A@ ,79?7@F 3EE7FE             Q   "@H7EF?7@F
;@ 3EEA5;3F7E           Q   )DAB7DFK B>3@F 3@6 7CG;B?7@F @7F       Q   Q   +A36E 3@6 FA>>I3KE @7F    QQQ      Q "@F3@9;4>7 3EE7FE @7F   QQQQ      -AF3> 5A@EA>;63F76 3EE7FE                 ,79?7@F
>;34;>;F;7E           Q   -AF3> 5A@EA>;63F76 >;34;>;F;7E               7BD75;3F;A@ 3@6 3?ADF;L3F;A@      Q   Q   3B;F3> 7JB7@6;FGD7E     Q  Q 

;E5A@F;@G76 AB7D3F;A@E 3D7 E:AI@ E7B3D3F7>K ;@ F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7
3E
3
A@7 >;@7 ;F7? O'7F ;@5A?7 8DA?
6;E5A@F;@G76 AB7D3F;A@EP E77 'AF7 

 A?6:2??
;9/6:.@6;:

3 5CG;E;F;A@A8

(@
'AH7?47D

 
+76 /G>53@
3 I:A>>K AI@76 EG4E;6;3DK
A8 ;DEF 7@ I3E 675>3D76
F:7 I;@@;@9 4;667D 8AD )'( 3@6  +7F;D7?7@F G@6NE 5A?4;@76 ;@F7D7EFE ;@ 
I:;5: 5A@E;EF76
A8  4;>>;A@ 5A??A@ E:3D7E
3@6   4;>>;A@ BD787DD76 E:3D7E ,G5: 5A??A@ E:3D7ED7BD7E7@F   75A@A?;5 ;@F7D7EF ;@  I:;>7 F:7 5A?4;@76 5A??A@ E:3D7E
3@6
BD787DD76 E:3D7ED7BD7E7@F  
A8 F:7 HAF;@9 D;9:FE ;@  -AF3> 5A@E;67D3F;A@ I3E
B3;6
A@
'AH7?47D

  I3E )  4;>>;A@

?AG@F 4 /22/549  E:3D7E
35CG;D76
4K 53E:
BGD5:3E7 ,:3D7E ;EEG76 3F 83;DH3>G7 5A??A@ )  ,:3D7E ;EEG76 3F 83;DH3>G7
BD787DD76  AEF
6;D75F>K 3FFD;4GF34>7 FA F:7 5A?4;@3F;A@  -AF3> 5A@E;67D3F;A@ ) 

-:7 53E:8>AI A@ 35CG;E;F;A@ ;E
3E 8A>>AIE

?AG@F 4 /22/549 3E:
AGF8>AI A@
35CG;E;F;A@ 3E:
B3;6 ;@5>G6;@9
FD3@E35F;A@E 5AEFE)  %7EE 53E:
35CG;D76 8DA? EG4E;6;3DK    '7F 53E:AGF8>AI )  "+:8'492':+*
': ?+'8 +4* 8':+
'9 */9);99+*
(+25=

85 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-A 8G@6
F:7
35CG;E;F;A@ ;DEF 7@ D3;E76 ) 4;>>;A@   ?;>>;A@
4D;697 >A3@E
3@6  ?;>>;A@ . , A>>3D 67@A?;@3F76 E:ADF F7D? >A3@E
3@6 ) 
4;>>;A@   ?;>>;A@ ):;>;BB;@7
B7EA 67@A?;@3F76 E:ADF F7D? >A3@E
A@
'AH7?47D

FA
   8DA?
3
5A@EADF;G?
A8 >A53>
3@6 8AD7;9@ 43@=E

"@
366;F;A@
+76 /G>53@ 3H3;>76
A8 EF3B>7 8;@3@5;@9 3?AG@F;@9 )  4;>>;A@
3DD3@976
4KF:7 E7>>7DNE
36H;EADE
FA8AD
F:7
FD3@E35F;A@

,7B3D3F7>K
F:7 ;DEF 7@ DAGBBGD5:3E76 5A??A@ E:3D7E
A8  FAF3>;@9 )  ?;>>;A@   ?;>>;A@ D7BD7E7@F;@9
3BBDAJ;?3F7>K  7CG;FK ;@F7D7EF ;@  8DA?
F:7
EFA5= ?3D=7F

 ;E
F:7 ):;>;BB;@7EN >3D97EF
BDA6G57D A8
97AF:7D?3>
7@7D9K -:7 399D793F7;@EF3>>76 53B35;FK
A8 NE 97AF:7D?3>
7@7D9K BDA<75FE ;E
3BBDAJ;?3F7>K    ?793I3FF &0 A8 EF73?
A8 I:;5:   &0 ;E 876
FA 
AD 4G;>6 AB7D3F7 FD3@E87D (- 5A@FD35FAD AB7D3F76 BAI7D
B>3@FE
3@6
F:7 D7?3;@;@9  &0
FA
'3F;A@3> )AI7D
ADBAD3F;A@ ') AI@76 BAI7D
B>3@FE

-:7
FD3@E35F;A@
:3E 477@ 355AG@F76 8AD
3E
34GE;@7EE 5A?4;@3F;A@ E;@57 GE;@9
F:7
BGD5:3E7?7F:A6

"@
  +76 /G>53@
3E
F:7
B3D7@F 5A?B3@K A8  5A?B>7F76
F:7 H3>G3F;A@ IAD=
A8
F:7
;67@F;8;34>7 F3@9;4>7 3@6 ;@F3@9;4>7 3EE7FE
35CG;D76 3@6 >;34;>;F;7EH3>G76 3F
F:7
F;?7
A8
35CG;E;F;A@ 55AD6;@9>K F:7 BGD5:3E7
BD;57 I3ED7 3>>A53F76
3E ;8
F:7E7 I7D7 ;67@F;8;76 3F
F:7 63F7A8
35CG;E;F;A@

-:7
67F3;>E
A8
F:7
83;DH3>G7E
A8
F:7
;67@F;8;76 3EE7FE
3@6 >;34;>;F;7E
A8  3E 5A@EA>;63F76 ;@FA
F:7 355AG@FE
A8 ;DEF 7@ I7D7
FD3@E>3F76 3FK73D 7@6 D3F7A8) ., 5A@E;EF7@F
I;F:), O-:7 8875F ;@
:3@97E ;@ AD7;9@ J5:3@97 +3F7E PFA 5A@8AD? I;F: F:7 8G@5F;A@3> 3@6 BD7E7@F3F;A@ 5GDD7@5K
A8
F:7 )3D7@F A?B3@K
3E 8A>>AIE

)DAH;E;A@3> 3;D /3>G7E /3>G7E 67@FE )   )  )Q (F:7D 5GDD7@F
3EE7FE       )DAB7DFK B>3@F 3@6 7CG;B?7@F       "@F3@9;4>7
3EE7FE       787DD76
F3J
3EE7FE     Q (F:7D
@A@5GDD7@F 3EE7FE      %A@9 F7D?
674F
      787DD76
F3J >;34;>;FK  Q  (F:7D >;34;>;F;7E      '7F
3EE7FE      )7D57@F397 E:3D7
A8
@7F
3EE7FE
35CG;D76       '7F
3EE7FE
35CG;D76      5CG;D76 HAF;@9
BD787DD76 E:3D7E   Q AA6I;>>
3D;E;@9A@35CG;E;F;A@ E77
'AF7       -AF3> 5A@E;67D3F;A@ )  )  )Q  $8'492':+* ;9/4-
?+'8 +4* 8':+ 5, !  %# '9 */9);99+* /4
:.+
,58+-5/4- $.+ 58/-/4'2 '35;4: 5,
)'9. ')7;/8+* ='9 !   3/22/54 '9 68+9+4:+* /4
:.+
:'(2+ 5, )'9. ,25= 54 ')7;/9/:/54

E
A8
757?47D

 
3@6    5A@FD;4GF76 )  ?;>>;A@   ?;>>;A@
3@6 ) ?;>>;A@   ?;>>;A@
FA
F:7 @7F ;@5A?7
A8 ;DEF
!A>6;@9E DAGB

4 )"" 5CG;E;F;A@

"@ ,7BF7?47D
  )! FD3@E87DD76
3>>
A8 ;FE    E:3D7E ;@ )" D7BD7E7@F;@9  7CG;FK ;@F7D7EF ;@ )"
FA
)"" ;@
7J5:3@97 8AD
    G@;EEG76 E:3D7E ;@ )"" -:7 ;EEG3@57
A8 E:3D7E
FA
)! I3E
43E76
A@
F:7 G@3G6;F76 @7F 4AA= H3>G7 A8 )" 3?AG@F;@9 FA)  4;>>;A@ 3E A8
757?47D

 

-:7
9AA6I;>> 8DA?
F:7
7J5:3@97
FD3@E35F;A@ I3E
67F7D?;@76
3E
F:7 6;887D7@57
47FI77@ 83;DH3>G7
A8 F:7    )" E:3D7E
3@6
83;DH3>G7
A8
F:7     )"" E:3D7E -:7 83;DH3>G7A8
F:7

86 )"" E:3D7E ;@5>G676
F:7 4AA= H3>G7
A8 E:3D7E
A8 )" I:;5:
4753?7
3
EG4E;6;3DK
A8 )""
38F7D
F:7
7J5:3@97
A8 E:3D7E -:7 9AA6I;>> I3E 5A?BGF76 3E 8A>>AIE

?AG@F 4 /22/549 AEF
A8
4GE;@7EE 5A?4;@3F;A@  )  3;DH3>G7
A8
@7F
3EE7FE
A8 )""    AA6I;>> ) 

(@
'AH7?47D

  &7FDA )35;8;5
"@H7EF?7@F
ADBAD3F;A@ &)"
G@D7>3F76 B3DFK 5A?B>7F76
F:7 BGD5:3E7
A8
F:7
  3@6
  ;@F7D7EFE
A8 7@BD7E
3@6
F:7 ;DEF
!A>6;@9E DAGB D7EB75F;H7>K ;@ )"" -:7
FD3@E35F;A@ D7EG>F76 ;@
F:7
35CG;E;F;A@ 4K &)"
A8
F:7  
78875F;H7;@F7D7EF ;@ &'- F:7 5A@57EE;A@ :A>67D
A8 'ADF:
%GLA@ JBD7EEI3K '%1
3@6
 
78875F;H7;@F7D7EF ;@ -A>>I3KE &3@397?7@F
ADBAD3F;A@ -&
F:7
67E;9@3F76
AB7D3FAD
A8
'%1 55AD6;@9>K
3EE7FE ;@5>G6;@9 9AA6I;>> 3@6 >;34;>;F;7E
A8 )"" DAGB I7D7
675A@EA>;63F76 3E
A8
F:7 78875F;H7
63F7
A8
F:7
E3>7 -:7 D7EG>FE
A8
AB7D3F;A@E
A8
F:7 DA36E
3@6
FA>>I3KE AB7D3F;A@EE79?7@F
3D7
BD7E7@F76 3EO6;E5A@F;@G76 AB7D3F;A@EP ;@ F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7

5 5CG;E;F;A@A8)3@F343@93@ &3E;I3K !K6DA>75FD;5 )AI7D )>3@F )!) &!)

(@ ,7BF7?47D

  !K6DA
B3DF;5;B3F76
3@6 IA@
F:7
4;6 8AD
F:7  &0 )!) &!) 5A@6G5F76 4K ),%& ;@ 5A@@75F;A@ I;F:
F:7
BD;H3F;L3F;A@
A8
')
3EE7FE

(@ (5FA47D

  8A>>AI;@9
F:7 EG557EE8G>
4;66;@9 !K6DA7@F7D76 ;@FA
3@ EE7F )GD5:3E7 9D77?7@F ) I;F:),%&8AD
F:7 BGD5:3E7A8
F:7 )!) &!) 835;>;F;7E 8AD
3
FAF3> 5A@E;67D3F;A@
A8 )  ?;>>;A@ ., ?;>>;A@ (@ 'AH7?47D
   F:7 O>AE;@9 3F7P 3>> F:7 5>AE;@9 5A@6;F;A@E 8AD
F:7
7J75GF;A@
A8
F:7 ) I7D7 E3F;E8;76 3@6 F:7 BGD5:3E7
I3E 5A?B>7F76 A>>AI;@9 F:7 5A?B>7F;A@ A8
F:7
5A@6;F;A@E
BD75767@F
3@6
F:7
7J75GF;A@
A8
F:7
D7EB75F;H77DF;8;53F7E A8
>AE;@9
A8 !K6DA
3@6 ),%& F:7 AB7D3F;A@E
3@6 ?3;@F7@3@57
A8 )!) &!) I3E EG557EE8G>>KFD3@E87DD76
FA !K6DAA@'AH7?47D

 

)GDEG3@F
FA F:7 BDAH;E;A@E A8
F:7
) !K6DA E:3>>
6;D75F>K 3EEG?7
3@6
39D77
FA
6;E5:3D97 F:7 8A>>AI;@9 3E ;F B7DF3;@EFA
F:7 )GD5:3E76 EE7FE ;@5>G6;@9 4GF @AF >;?;F76 FA F:7 8A>>AI;@9
3?A@9 AF:7DE 8DA?
>AE;@9
3F7

3>> D;9:FE
A4>;93F;A@E 3@6 >;34;>;F;7E
A8 ),%& 3D;E;@9 8DA? (B7D3F;@9 A@FD35FE I:;5: D7?3;@ 78875F;H7
A@ AD
38F7D
F:7
>AE;@9 3F7

3>> D;9:FE
A4>;93F;A@E 3@6 >;34;>;F;7E
A8 ),%& 3D;E;@9 8DA? 5A@FD35FE I:;5: D7?3;@
78875F;H7
A@ AD 38F7D
F:7
>AE;@9 3F7 F:AG9: I;F: >;?;F3F;A@E3@6

3>>
F:7 D;9:FE
3@6
A4>;93F;A@E
A8 ),%& 3@6 AD
')
G@67D
F:7
7J;EF;@9 )AI7D ,GBB>K
A@FD35FE EG4<75F
FA
F:7;DD7EB75F;H7 F7D?E
3@6
5A@6;F;A@E ;@6;53F76 ;@
F:7E75A@FD35FE

-:7
FAF3> 5AEF A8
F:7
4GE;@7EE 5A?4;@3F;A@ I3E )  ?;>>;A@  ?;>>;A@ .@67D
F:7 )   )  ?;>>;A@
A8
F:7
FAF3> 5A@E;67D3F;A@ I3E
B3;6 3E 3@
.B DA@F )3K?7@FFA ),%&
A@
'AH7?47D

  3@6 F:7 D7?3;@;@9
  F:7 787DD76 )3K?7@F 35;>;FK I;>> 47
B3;6 ;@  E7?; 3@@G3> ;@EF3>>?7@FE ;@5>G6;@9
 ;@F7D7EF B7D
3@@G? 5A?BAG@676 E7?; 3@@G3>>K !K6DA
:3EF:7 ABF;A@ FA
BD7B3K
F:7
787DD76 )3K?7@F 35;>;FK

?AG@F 4 /22/549 3E:
AGF8>AI A@
35CG;E;F;A@ -AF3> 5A@E;67D3F;A@ )  787DD76
B3K?7@F 835;>;FK I;F: ),%&   '7F 53E:AGF8>AI ) 

87 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

7F3;>E
A8
F:7
6787DD76 B3K?7@F 835;>;FK I;F: ),%& 3D7
3E 8A>>AIE

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $  )  %7EE
B3K?7@FE
6GD;@9 F:7 K73D    AD7;9@
7J5:3@97 363@57 3F 7@6 A8 K73D    %7EE 5GDD7@F
BADF;A@   $  ) 

-A
9G3D3@F77 8G>>
BDA?BF 83;F:8G>
3@6 5A?B>7F7B7D8AD?3@57
A8 !K6DANE
A4>;93F;A@E ;@
F:7 ) !K6DA7J75GF76
3)7D8AD?3@57 A@6
3?AG@F;@9 FA
  ?;>>;A@
AD )  ?;>>;A@ 3@
7CG;H3>7@F
FA

A8
F:7
FAF3> AGFEF3@6;@9 6787DD76
B3K?7@F 835;>;FK 43>3@57 ;@
F:7 8AD?
A8
3@
;DD7HA534>7 EF3@64K >7FF7D
A8 5D76;FE -:7)7D8AD?3@57 A@6 I;>> 47 D76G576 7H7DK K73D
7CG;H3>7@F
FA
A8
F:7 399D793F7 3?AG@F
A8
F:7
G@B3;6 787DD76 )3K?7@F 35;>;FK I;F: ),%&

F
F:7 63F7A8
35CG;E;F;A@ F:7
A?B3@KD75A9@;L76
3BDAH;E;A@3>
9AA6I;>>
A8 )  ?;>>;A@ 43E76 A@ F:7
BD7>;?;@3DK D7EG>FE A8
F:7
H3>G3F;A@ 3E
F:7
83;DH3>G7E
FA
47 3EE;9@76 FA
F:7 ;67@F;8;34>7
3EE7FE 3@6 >;34;>;F;7E :3H7@AFK7F 477@
A4F3;@76

"@
  F:7 A?B3@K 5A?B>7F76 F:7 H3>G3F;A@ IAD=8AD
F:7 I3F7DD;9:FE I:;5: ;F :36 ;67@F;8;76
3E
F:7 35CG;D76 ;@F3@9;4>7
3EE7F
A8 )!) &!) 3@6
67F7D?;@76
9AA6I;>> 3?AG@F;@9 FA) ?;>>;A@ 3F F:7 63F7A8
35CG;E;F;A@ 55AD6;@9>K F:7 BGD5:3E7BD;57 I3ED7 3>>A53F76 3E ;8
F:7
8AD79A;@9 I3E ;67@F;8;76
3FF:7 63F7
A8
35CG;E;F;A@

-:7 83;DH3>G7E
A8
F:7 ;67@F;8;34>7 3EE7FE
A8 )!) &!) I7D7 D7H;E76
3E 8A>>AIE

)DAH;E;A@3> 3;D /3>G7E /3>G7E 63@F 3@6 7CG;B?7@F E77 'AF7  )  )  ) 03F7DD;9:FE E77
'AF7    \   AA6I;>>
3D;E;@9 8DA?
F:7
35CG;E;F;A@ E77
'AF7       -AF3> 5A@E;67D3F;A@ )  )  )\

-:7
78875F
A8
F:7
8AD79A;@9 36K ;@ F:7   5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

!AI7H7D F:7
78875F
A@
F:7 67BD75;3F;A@
A8
BDAB7DFK B>3@F
3@6
7CG;B?7@F 3@6 3?ADF;L3F;A@
A8 ;@F3@9;4>7 3EE7F I3F7DD;9:FE I3E 5:3D976 FA
F:7   5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
6G7
FA
F:7 ;??3F7D;3>;FK A8
F:7
3?AG@F

03F7DD;9:FE
B7DF3;@ FA
!K6DANE D;9:F
FA
GE7 I3F7D 8DA?
F:7
)3@F343@93@ D7E7DHA;D 8AD
F:7
97@7D3F;A@
A8 7>75FD;5;FK
') F:DAG9:
37DF;8;53F;A@ ;EEG76
FA
!K6DA
63F76 #G>K

  :3E 9;H7@ ;FE 5A@E7@F
FA
F:7
FD3@E87D
FA
!K6DA 3E
F:7 I;@@;@9 4;667D
A8
F:7 )!) &!)
F:7 I3F7D B7D?;F 8AD )3@F343@93@ D;H7D ;EEG76
4KF:7 '3F;A@3> 03F7D
+7EAGD57E
AG@5;> A@ &3D5:


"@
366;F;A@ !K6DA
3@6
F:7
'3F;A@3>
"DD;93F;A@ 6?;@;EFD3F;A@ '" 7@F7D76 ;@FA
3@ (B7D3F;A@ 3@6 &3;@F7@3@57 9D77?7@F F:7
'" 9D77?7@F
3E
3@ 3@5;>>3DK FA F:7 ) I:7D7;@ !K6DA I;>> 67D;H7 47@78;F 8DA?
F:7
AB7D3F;A@ 3@6 ?3;@F7@3@57 A8
F:7
)3@F343@93@ 3@6 &3E;I3K 63?E
3@6
AF:7D @A@ BAI7D 835;>;F;7E ;@5>G6;@9
F:7 I3F7DEAGD576 8DA? F:7 )3@F343@93@ D7E7DHA;D -:7
F7D?A8
F:7
'" 9D77?7@F ;E 8AD
3B7D;A6
A8
 K73DE 5A??7@5;@9
A@ F:7 >AE;@9 3F7

88 6 ;H7EF?7@F
A8 ;DEF 7@NE   CG;FK ,F3=7;@ !K6DA

(@ (5FA47D    F:7 O ;DEF
>AE;@9 3F7P ;DEF 7@ 3EO,7>>7DP  3EOGK7DP
3@6 !K6DA 5A>>75F;H7>K
F:7 O)3DF;7E P
7J75GF76
3,:3D7)GD5:3E7
3@6
"@H7EF?7@F 9D77?7@F O,)"P8AD F:7 6;H7EF?7@F
A8 ;DEF 7@NE
 
7CG;FK EF3=7;@ !K6DA )GDEG3@FFA
F:7
F7D?E
3@6
5A@6;F;A@E
A8 F:7 ,)" F:7 )3DF;7E
39D776
FAB7D8AD?
F:7
8A>>AI;@9 ?3FF7DE

  E:3>> EG4E5D;47 FA 3@6 !K6DA E:3>> ;EEG7 FA 
    5A??A@ E:3D7E F:7 O)D;?3DK ,:3D7EP
A@ ;DEF >AE;@9 3F7  ;DEF 7@ E:3>> E7>>
FA  ;FE
   5A??A@ E:3D7E F:7 OA??A@ ,:3D7EP;@ !K6DA A@ ,75A@6
>AE;@9
3F7 3@6  ;DEF 7@ E:3>> EG4E5D;47 FA
3@6 !K6DA E:3>> ;EEG7 FA ;DEF 7@

BD787DD76 E:3D7E F:7 O)D787DD76 ,:3D7EP

"@
366;F;A@
F:7 ,)"
BDAH;67E
F:3F
!K6DA E:3>> D7FGD@
FA
;DEF 7@
F:7
67BAE;FE 8AD 8GFGD7 EFA5= EG4E5D;BF;A@E
3?AG@F;@9
FA) ?;>>;A@

(@ (5FA47D   
F:7 )3DF;7E
7J75GF76 3 ;DEF ,GBB>7?7@F
FA
F:7 ,)" ;@ I:;5: ;FI3E
39D776 F:3F F:7 ;EEG3@57
A8
F:7 )D787DD76 ,:3D7EFA ;DEF 7@ E:3>>
47
6787DD76 B7@6;@9 8;@3>;L3F;A@
A8
F:7
873FGD7E A8
F:7
)D787DD76 ,:3D7E E
A8 BD;>   
F:7 )3DF;7E
:3H7@AFK7F 39D776 A@ F:7 873FGD7E
A8
F:7 )D787DD76 ,:3D7E

(@
'AH7?47D

  F:7 O,75A@6 >AE;@9 3F7 ;DEF 7@ 5A?B>7F76
F:7
6;H7EF?7@F
A8 ;FE
  7CG;FK EF3=7;@ !K6DA;@83HAD
A8  I;F:8AD
3
F:7
FAF3> 5A@E;67D3F;A@
A8 )  4;>>;A@

!K6DA 3@6 
3D77@F;F;7E
G@67D
F:7 5A??A@ 5A@FDA> A8 ;DEF 7@ E
3
D7EG>F A8
F:7
6;H7EF?7@F ;DEF 7@NE
78875F;H7 HAF;@9 3@6 75A@A?;5 ;@F7D7EF ;@ !K6DA38F7D
F:7 FD3@E35F;A@ ;E  3@6  D7EB75F;H7>K

E
3
D7EG>F
A8
F:7 E3>7
3@ 7CG;FK D7E7DH73?AG@F;@9
FA) ?;>>;A@ I3ED75AD676 ;@
F:7 7CG;FK E75F;A@ A8
F:7
  5A@EA>;63F76
43>3@57 E:77FE E77
'AF7


 6?0;:@6:A21 #<2>.@6;:?

7@BD7E
3@6 )!
3EE7>>7DE
7J75GF76 3 ,:3D7)GD5:3E79D77?7@F ,) I;F: &)" FA E7>>
F:7;D 5A?4;@76 ;@F7D7EFE ;@
F:7;DDA36 3@6 FA>>I3KE
4GE;@7EE
FA
F:7 >3FF7D -:7 ,) ;@HA>H7E
F:7
E3>7
4K 7@BD7E
3@6 )!
A8
F:7;DE:3D7E ;@ ;DEF ):;>;BB;@7 "@8D3EFDG5FGD7
"@5  )"" 3 BG4>;5>K >;EF76 5A?B3@K -:7
FD3@E35F;A@ I3E 5A?B>7F76 A@ 'AH7?47D

  E77
'AF7 4

-:7 D7EG>FE
A8
AB7D3F;A@E
A8 )"" DAGBNE DA36E
3@6
FA>>I3KE 4GE;@7EE
3D7 EG??3D;L76 47>AI -:7D7EG>FE 8AD
 
5AH7D76
F:7
B7D;A6
479;@@;@9 #3@G3DK   
GB
FA
'AH7?47D
  

     4 /22/549 +7H7@G7E $  )  )   AEFE
3@6 7JB7@E7E AEFE
A8 E7DH;57E       7@7D3>
3@6 36?;@;EFD3F;H77JB7@E7E              "@F7D7EF 3@6 AF:7D 8;@3@57 5AEFE      AD7;9@
7J5:3@97 93;@ >AEE       "@F7D7EF ;@5A?7    CG;FK ;@
@7F 73D@;@9E
A8
3@
3EEA5;3F7    (F:7D ;@5A?7 7JB7@E7      "@5A?7
478AD7
F3J      )DAH;E;A@ 8AD ;@5A?7
F3J H   '7F ;@5A?7 8DA?
6;E5A@F;@G76 AB7D3F;A@E $ )  ) 

89 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7
@7F
53E:8>AIE
BDAH;676 4K
F:7 DA36E 3@6
FA>>I3KE
4GE;@7EE
3D7
3E 8A>>AIE

     4 /22/549 ,! %(0, +(& ()+-"'
-"/"-", "@5A?7 478AD7 ;@5A?7
F3J $ )  )  67 ;@5A?7 478AD7 F3J
FA@7F 53E:
8>AIE "@F7D7EF 7JB7@E7     7BD75;3F;A@ 3@6 3?ADF;L3F;A@    .@D73>;L76
8AD7;9@ 7J5:3@97 >AEE 93;@     "@F7D7EF ;@5A?7     CG;FK ;@ @7F 73D@;@9E A8 3@ 3EEA5;3F7     787DD76 FA>>
D7H7@G7
D73>;L76 H   %AEE
93;@ A@ 6;EBAE3>E A8 BDAB7DFK 3@6 7CG;B?7@F H  Q )DAH;E;A@
8AD 6AG4F8G>355AG@FE H  Q 0AD=;@9 53B;F3> 5:3@97E 75D73E7 ;@5D73E7 ;@ +757;H34>7E    "@H7@FAD;7E    6H3@57E
FA 5A@FD35FADE 3@6 5A@EG>F3@FE    D76;F34>7 I;F::A>6;@9 F3J 3@6 AF:7D 5GDD7@F 3EE7FE     "@BGF H3>G7 36676
F3J    "@5D73E7 675D73E7 ;@ 55AG@FE B3K34>7 3@6 AF:7D 5GDD7@F >;34;>;F;7E     G7
FA
D7>3F76 B3DF;7E        .@73D@76
FA>>
D7H7@G7     "@5A?7 F3J B3;6 H    "@F7D7EF B3;6   QQ '7F 53E:BDAH;676 4K AB7D3F;@9 35F;H;F;7E       ,! %(0, +(&
"'/,-"'
-"/"-", 75D73E7 ;@5D73E7 ;@ G7
8DA?
D7>3F76 B3DF;7E    6H3@57E
FA3@3EEA5;3F7    (F:7D @A@5GDD7@F 3EE7FE     "@F7D7EF
D757;H76    ;H;67@6E
D757;H76 Q   66;F;A@E
FABDAB7DFK B>3@F 3@6 7CG;B?7@F    66;F;A@E
FA E7DH;57 5A@57EE;A@ 3EE7FE    )DA5776E
8DA? E3>7 A8 BDAB7DFK 3@6 7CG;B?7@FQ )DA5776E
8DA? E;@=;@9 8G@6 QQ  '7F 53E:BDAH;676 4K
GE76 ;@ ;@H7EF;@9 35F;H;F;7E     ,! %(0, +(& "''"'
-"/"-", )3K?7@FE A8 "@F7D7EF Q      ;H;67@6E
FA EFA5=:A>67DE Q   ;H;67@6E
FA?;@AD;FK EFA5=:A>67DE Q    %A3@EQ    -D3@E35F;A@ 5AEFE A8 674F ;EEG3@57 QQ )DA5776E
8DA? %A3@E Q    ,G4E5D;BF;A@E
D757;H34>7 Q  Q 6H3@57E
8DA?
B3K?7@FFA D7>3F76 B3DF;7EQQ 8875F A8
D7H7DE735CG;E;F;A@ Q  Q '7F 53E:BDAH;676 4K
8;@3@5;@9 35F;H;F;7E      - ( 1!' 
+-
!' , ('
,!
' ,!
*."/%'-,      '-
+,
"'
,!
'
,!
*."/%'-,     ,!
'
,!
*."/%'-, -
 "''"' ( 2+       ,!
'
,!
*."/%'-, -
'
( 2+ $  )  ) 

90  .?5
.:1 .?5 =A6B.82:@?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 3E:
A@
:3@6 $ ) 3E:;@
43@=E     3E:
7CG;H3>7@FE     $  ) 

3E:;@
43@=E
73D@E ;@F7D7EF
3F
F:7
BD7H3;>;@9
43@=
67BAE;FD3F7E

3E:
7CG;H3>7@FE 5A@E;EF
A8 E:ADF F7D? B>357?7@FE 8ADH3DK;@9
B7D;A6E
A8
GB
FA
F:D77 ?A@F:E 67B7@6;@9 A@
F:7 ;??76;3F753E: D7CG;D7?7@FE
A8 F:7 ;DEF !A>6;@9E DAGB 3E:
7CG;H3>7@FE
73D@;@F7D7EF
3F
F:7
BD7H3;>;@9 E:ADF F7D?
B>357?7@FD3F7E

 (>.12
.:1 #@52>
&2026B./82?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 -D367 E77
'AF7E  3@6  $ )   AEF
3@6
7EF;?3F76 73D@;@9E ;@
7J57EE
A8
4;>>;@9E A@ G@5A?B>7F76 5A@FD35F    (F:7DE        %7EE
3>>AI3@57 8AD
6AG4F8G>
355AG@FE   $  ) 

>>AI3@57 8AD
AG4F8G> 55AG@FE -:7 DA>>8ADI3D6 3@3>KE;E 8AD
3>>AI3@57 8AD
6AG4F8G>
355AG@FE A@ D757;H34>7E
3E
A8
757?47D

  3@6   ;E
3E 8A>>AIE

   4 /22/549 3>3@57 3F
F:7 479;@@;@9
A8
F:7 K73D $ ) )DAH;E;A@E   +7H7DE3>    3>3@57 3F
F:7 7@6 A8
F:7 K73D $ )

"@
  3>>AI3@57 8AD
6AG4F8G>
355AG@FE
A8 ) ?;>>;A@ I3ED7H7DE76
3E
3
D7EG>F
A8
F:7
3D4;FD3>
675;E;A@ A@ 57DF3;@ D757;H34>7E 8DA?
')
.@67D
F:7 E7FF>7?7@F 
3@6 ') 39D776
F:3F
F:7
3?AG@F
A8 )   ?;>>;A@ E:3>> 47 B3;6 4K ') FA  I;F:AGF
8GDF:7D ;@F7D7EF E77
'AF7 3

AEF
3@6 EF;?3F76 3D@;@9E ;@ J57EE
A8 ;>>;@9E
A@ .@5A?B>7F76 A@FD35FE

-:;E 5A@E;EFE
A8

   4 /22/549 AEF
3@6
7EF;?3F76 73D@;@9E
A@
G@5A?B>7F76 5A@FD35FE $  ) %7EE
4;>>;@9 FA63F7  3>3@57 3F 7@6 A8 K73D $  ) 

91 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

,;9@;8;53@F ;@8AD?3F;A@ 34AGF ;DEF
!A>6;@9E DAGB5A@FD35FE ;@ BDA9D7EE

   4 /22/549 -AF3> 5AEF ;@5GDD76
FA63F7A@G@5A?B>7F76 5A@FD35FE $  ) +75A9@;L76 BDA8;F 8AD
F:7 K73D   6H3@57ED757;H76   +7F7@F;A@ D757;H34>7  

 :B2:@;>62?

-:;E
355AG@F 5A@E;EFE
A8   ED7EF3F76
 E77
'AF7
 4 /22/549 F 5AEF G7> ;@H7@FAD;7E $   )  +73>
7EF3F7   0AD= ;@ BDA57EE    ;@;E:76 9AA6E   F @7FD73>;L34>7 H3>G7 +3I ?3F7D;3>E   ,B3D7
B3DFE 3@6 EGBB>;7E     "@ FD3@E;F   $ ) 

-:7 5AEF
A8 D3I ?3F7D;3>E 3?AG@F76
FA) ?;>>;A@ ;@   3@6 ) ?;>>;A@ ;@   -:7 5AEF
A8 EB3D7 B3DFE
3@6 EGBB>;7E
3?AG@F76
FA)  ?;>>;A@ ;@
  3@6 )  ?;>>;A@ ;@  

,B3D7
B3DFE 3@6 EGBB>;7E 5A@E;EF
A8 5A@EG?34>7E I:;5:
3D7;EEG76
FAAB7D3F;A@E
AD
BDA6G5F;A@
3@6
3D7 5:3D976 FAAB7D3F;A@E

 ' 6:.:06.8 ??2@?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 GDD7@F  , 8;@3@5;3> 3EE7FE *GAF76
9AH7D@?7@F
674FE75GD;F;7E $ ) 

'A@5GDD7@F  , 8;@3@5;3> 3EE7FE ;@5>G676 G@67D O(F:7D
'A@5GDD7@F EE7FEP 355AG@F ;@ F:7 5A@EA>;63F76 43>3@57 E:77F ,77 'AF7   "@H7EF?7@FE ;@
BDABD;7F3DK ?7?47DE:;B E:3D7E $ ) CG;F;7E   .@CGAF76
7CG;FK ;@H7EF?7@FE   $  )

-:7 5GDD7@F  , 8;@3@5;3>
3EE7FE 5A@E;EF
A8
9AH7D@?7@F
674FE75GD;F;7E EB75;8;53>>K +7BG4>;5 A8
F:7
):;>;BB;@7E +()
4A@6EI;F:?3FGD;F;7E 47FI77@  
FA
  3@6
  FA
  ;@
  3@6   D7EB75F;H7>K ,G5:
4A@6EI7D7
35CG;D76
3F 36;E5AG@F
3@6 473D ;@F7D7EF
47FI77@   FA   ;@
  3@6  

92 .@D73>;L76
93;@ A@  , 8;@3@5;3>
3EE7FE ;ED75A9@;L76 3E
3
E7B3D3F7 5A?BA@7@F A8
7CG;FK E
A8 757?47D

  3@6   G@D73>;L76
93;@ A@  , 8;@3@5;3>
3EE7FE
3?AG@F76 FA) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>KI;F:67F3;>E
3E 8A>>AIE

   4 /22/549 '7F 93;@ D75A9@;L76 ;@ 7CG;FK $  )P :3@97E ;@ 83;DH3>G7 D75A9@;L76 ;@ 7CG;FK  '7F 93;@ D7?AH76 8DA?
7CG;FK 3@6 D75A9@;L76 ;@ BDA8;F
AD >AEE   P '7F
355G?G>3F76
G@D73>;L76
93;@ AD >AEE A@  , ;@H7EF?7@FE $  )

:3@97E ;@
7CG;FK D787D
FA G@D73>;L76
93;@E 3@6 >AEE7ED75A9@;L76
6GD;@9
F:7
B7D;A6 4DAG9:F 34AGF 4KF:7 F7?BAD3DK ;@5D73E7AD
675D73E7;@
F:7 83;DH3>G7A8
F:7
7CG;FK ;@EFDG?7@FE -:7
@7F
>AEE
67D75A9@;L76 ;@ 7CG;FK 3@6 D75A9@;L76 ;@
BDA8;F
AD >AEE B7DF3;@E
FA
F:7 6;EBAE3>
A8
7CG;FK E75GD;F;7E
6GD;@9
F:7 K73D

;DEF
!A>6;@9E DAGB D75AD6E
G@D73>;L76 93;@E 3@6 >AEE
A@
 , ;@H7EF?7@FE
6;D75F>K ;@
7CG;FK !AI7H7D ;8 F:7D7;E
3
E3>7
AD 3@ ;?B3;D?7@F >AEE
F:7
5G?G>3F;H7>AEE7E
AD
93;@E
F:3F
:3H7
477@ D75A9@;L76 ;@
7CG;FK E:3>>
47
D7?AH76 8DA?
7CG;FK 3@6 D75A9@;L76 ;@
BDA8;F
AD >AEE

;DEF
!A>6;@9E DAGB GE7EF:7 EB75;8;5 ;67@F;8;53F;A@ ?7F:A6;@67F7D?;@;@9
F:7 5AEF
A8 E75GD;F;7EEA>6

 #@52>
A>>2:@ ??2@?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 ,:3D7;@5GDD7@F
3EE7FE
A8 G7 36676 F3J /-  6H3@57EFA5A@FD35FADE   GDD7@F BADF;A@
A8
36H3@57E
FA
?;@AD;FK E:3D7:A>67D A8 ;DEF 7@ E77
'AF7E
 3@6   Q +AK3>FK 877E 5:3D9734>7 FA ') Q /)% ;@H7EF?7@FE   +7EFD;5F76 53E:67BAE;FE  Q (F:7DE   $   ) 

6H3@57EFA5A@FD35FADE ;@5>G67 F:7   36H3@57
B3K?7@F
A8 
FA
3
8AD7;9@ EGBB>;7D
3?AG@F;@9 FA   ?;>>;A@ ) ?;>>;A@ 8AD
F:7 BGD5:3E7A8
3
@7I 6D;>>;@9 D;9

+AK3>FK 877E 5:3D9734>7 FA ')
3D7 DAK3>FK 877E
A8 
6G7
FA
F:7
( 3@6 F:7 %A53> AH7D@?7@F
.@;FE % .E D7>3F76
FA
F:7 )3>;@B;@A@
"BDA<75F
A8  -:7 DAK3>FK B3;6 E:3>> 47 D7;?4GDE76 4K ') GBA@ BD7E7@F3F;A@ 4K 
A8
F:7
A88;5;3> D757;BFE 7H;67@5;@9 35FG3>
B3K?7@FE -:;E
3DD3@97?7@F ;E
78875F;H7 G@F;> F:7
BD;H3F;L3F;A@
A8
')NE )3>;@B;@A@ BAI7D B>3@FE ;@  

+7EFD;5F76 53E:67BAE;FE D7BD7E7@F 53E:3?AG@F;@9
FA   ?;>>;A@ A@ )D;@5;B3> A>>3F7D3>;L76
"@F7D7EF +76G5F;A@ )"+ 4A@6E I:;5: I7D7 B>76976
3@6 67BAE;F76 I;F:
F:7 3@9=A ,7@FD3> @9 );>;B;@3E 3E 5A>>3F7D3>
FA
E75GD7NE AGFEF3@6;@9 "@F7D@3F;A@3> 3@=
A8 #3B3@ "#
%A3@E -:7E7 >A3@EI7D7 5A@H7DF76 ;@FA
+() 4A@6E 43E76 A@ F:7 F7D?E
A8
3
&7?AD3@6G?
A8 9D77?7@F
63F76 'AH7?47D

 E A8
757?47D
  
F:;E
355AG@FI3ED75>3EE;8;76 8DA?
@A@5GDD7@F
3EE7FE
FA
5GDD7@F 3EE7FE

93 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

GBA@ 8G>> E7FF>7?7@F
A8
F:7 D7>3F76
+() 4A@6E -:7
B7EA
7CG;H3>7@F A8
F:7
5A>>3F7D3>
3E A8
757?47D

 
3@6
  I7D7)  ?;>>;A@ 3@6 )  ?;>>;A@ D7EB75F;H7>K

/)% ;@H7EF?7@FE 5A@E;EF A8 ;@H7EF?7@FE ;@ E:3D7E
A8 EFA5= A8 ,;+ I:;5:
3D7
:7>6 8AD
FD36;@9 -:7 83;D H3>G7 A8 ,;+ E:3D7E
A8 EFA5= ;E
43E76 A@
F:7 CGAF76 BD;57
3E
FD3676 ;@ F:7 ., EFA5= ?3D=7F

.@D73>;L76 83;DH3>G7>AEE
A@
F:;E ;@H7EF?7@F 3?AG@F76 FA) ?;>>;A@ 3@6 )  ?;>>;A@ ;@   3@6   D7EB75F;H7>K

 ";:0A>>2:@ ??2@?
281 3;> '.82

   4 /22/549 %3@6 $  )  G;>6;@9 ;?BDAH7?7@FE
3@6
7CG;B?7@F  Q $   ) 

%3@6 5A@E;EFE
A8
3
  ECG3D7?7F7D
BDAB7DFK I:7D7
F:7 5GDD7@F
A88;57
4G;>6;@9
A8  ;E >A53F76 -:7 355AG@F 3>EA ;@5>G67 F:7 4G;>6;@9 ;?BDAH7?7@FE
3@6 ;??AH34>7
7CG;B?7@F A@ ;F
I:;5:  :3E 5A??;FF76
FA
E7>> FA )'(
BGDEG3@F
FA3D7EA>GF;A@ A8
F:7 (
A8  ;@ 5A@@75F;A@ I;F:;FE
BD;H3F;L3F;A@ A@
'AH7?47D
   E77
'AF7


(@
F:7 43E;E
A8 EG5: D7EA>GF;A@
F:7
BDAB7DF;7EI7D7 5>3EE;8;76
3E @A@5GDD7@F 3EE7FE
:7>6 8ADE3>7 -:7 &3@397?7@F
A8  7JB75FE
F:7
E3>7
FD3@E35F;A@
FA
47 5A@5>G676 ;@
  GBA@ ;EEG3@57 4K
F:7 (88;57
A8 F:7 AH7D@?7@F
ADBAD3F7AG@E7>
A8
3@ AB;@;A@ 5AH7D;@9 F:7 >3@6 EI3B
3?A@9 
( 3@6 F:7 3E7E
A@H7DE;A@ 7H7>AB?7@F GF:AD;FK

-:7D7
3D7
@A >;34;>;F;7E
6;D75F>K 3EEA5;3F76 I;F: F:7 @A@5GDD7@F
3EE7FE :7>6 8ADE3>7

 ;:4@2>9
&2026B./82?

-:;E
355AG@F 5A@E;EFE
A8   ED7EF3F76
 'AF7 4 /22/549 A@57EE;A@ D757;H34>7 E77
'AF7E

 3@6  $   )  +757;H34>7E 8DA?
&+%(
A@
@@G3> 78;5;7@5K E77
'AF7E  3@6 9     (F:7D >A@9 F7D? D757;H34>7E
@7F
      %7EE 5GDD7@F
BADF;A@     'A@5GDD7@F BADF;A@ $  ) 

7F3;>E
A8
AF:7D >A@9 F7D? D757;H34>7ED75A9@;L76 4K 
3D7
3E 8A>>AIE

   4 /22/549 >3;?E 8DA? GD73G
A8
"@F7D@3> +7H7@G7 "+ $  )  ')
355AG@FE 3@6 AF:7DD757;H34>7E       %7EE
3>>AI3@57 8AD ;?B3;D?7@F >AEE7E     $ )

>3;?E 8DA?
F:7
"+
B7DF3;@
FA NE 5>3;?E 8AD
F:7
D78G@6
A@ ;@BGF /-
A@
877E B3;6
FA(-5A@FD35FADE (- 877E I:;5: I7D7;@;F;3>>K 67@;76 4K
F:7"+A@#G>K
   ,G4E7CG7@F>K
A@ ,7BF7?47D

 

94  EG4?;FF76
3>7FF7D 8ADD75A@E;67D3F;A@ 3@6 F:7 +79;A@3> ;EFD;5F (88;57

7@6ADE76
F:7
D7CG7EF 8AD D75A@E;67D3F;A@
FA
F:7
%793>
7B3DF?7@F
A8
F:7
!736 (88;57
A8
F:7
"+ E
A8 BD;> 
  F:7 D7H;7I A8 F:7 5>3;?E ;EEF;>> A@9A;@9

-:7 DA>>8ADI3D6 3@3>KE;E A8
3>>AI3@57 8AD ;?B3;D?7@F >AEE7E
B7DF3;@;@9
FA NE >A@9 F7D? D757;H34>7E ;E BD7E7@F76 47>AI

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $   )Q +75AH7D;7E E77 'AF73   H 0D;F7 A88
A8
G@5A>>75F;4>7 355AG@FE   H )DAH;E;A@ 8AD
F:7 K73D   3>3@57 35CG;D76 F:DAG9: 4GE;@7EE 5A?4;@3F;A@ E77
'AF7 H   AD7;9@
7J5:3@97 363@57 3F 7@6 A8 K73D $  )  

-:7 D75AH7D;7E
3@6 ID;F7 A88 ;@
  D7EG>F76 8DA?
F:7
3D4;FD3F;A@
7@F7D76 ;@FA4K  3@6 ') 3E 6;E5GEE76 ;@
67F3;> ;@ 'AF7 3

-:7
67F3;>E
A8
F:7
8AD79A;@9 DA>>8ADI3D6A8
F:7
3>>AI3@57 8AD ;?B3;D?7@F >AEE7E
A@ NE >A@9 F7D? D757;H34>7E
3D73E 8A>>AIE

 "$ *(
&23A:1 #@52>? (;@.8 4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $ $  $ $   +75AH7D;7E   HH  0D;F7 A88   H H   )DAH;E;A@  HH AD7;9@
7J5:3@97 36

3>3@57 3F 7@6 A8 K73D $ $  $ $ 

,B75;8;5 ;?B3;D?7@F $ $  $H$  A>>75F;H7 ;?B3;D?7@F HH  -AF3> $ $  $ $ 

  ') /-
+78G@6 (F:7DE -AF3> 4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D )Q )Q )Q )Q 3>3@57 35CG;D76 F:DAG9: 4GE;@7EE 5A?4;@3F;A@ E77
'AF7        )DAH;E;A@ QQ AD7;9@
7J5:3@97 363@57 3F 7@6 A8 K73D ) )  ) )  

,B75;8;5 ;?B3;D?7@F ) )  )Q )  A>>75F;H7 ;?B3;D?7@FQQ  -AF3> ) )  ) )  

95 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

 :B2?@92:@?
.@ =A6@E
.:1
2<;?6@?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 "@H7EF?7@FE ;@ E:3D7E
A8 EFA5= $   )  7BAE;FE 8AD 8GFGD7;@H7EF?7@FE
@7F E77
'AF7    $   ) 

-:7 ;DEF
!A>6;@9E DAGBNE 3EEA5;3F7E 3>> ;@5ADBAD3F76 ;@ F:7 ):;>;BB;@7E 5A@E;EF A8
F:7
8A>>AI;@9

)7D57@F397 A8 (I@7DE:;B EEA5;3F7)D;@5;B3> 5F;H;FK    )) )AI7D 97@7D3F;A@   ," ,7?;5A@6G5FADE
3EE7?4>K   )3@3K >75FD;5
A?B3@K )3@3K >75FD;5 )AI7D 6;EFD;4GF;A@  &+%( )AI7D 6;EFD;4GF;A@    +A5=I7>>
%3@6 ADBAD3F;A@ +($0%% +73>
7EF3F7
67H7>AB?7@F    

-:7
67F3;>E
A8
F:7 ;@H7EF?7@FE ;@ E:3D7E
A8 EFA5= 8A>>AI

   4 /22/549 "@H7EF?7@FE ;@
3EEA5;3F7E
3F
7CG;FK 5CG;E;F;A@ 5AEF A8 ;@H7EF?7@FE 3>3@57 3F 479;@@;@9
A8 K73D
3E
BD7H;AGE>K D7BADF76 $  )   8875F
A8
36ABF;A@
A8 ):;>;BB;@7 "@F7DBD7F3F;A@ " +"
E77
'AF7
  3>3@57 3F 479;@@;@9
A8 K73D
3ED7EF3F76    ,:3D7 43E76 B3K?7@FE E77
'AF7
    66;F;A@E   CG;FK
A8 ;@H7EF?7@FE EA>6    AD7;9@ 5GDD7@5KFD3@E>3F;A@
363@57 3F 7@6 A8 K73D     55G?G>3F76 7CG;FK ;@ @7F >AEE7E 3>3@57 3F 479;@@;@9
A8 K73D      CG;FK ;@
@7F 73D@;@9E
A8
3EEA5;3F7E      CG;FK
A8 ;@H7EF?7@FE EA>6  Q ;H;67@6ED757;H76     AD7;9@ 5GDD7@5KFD3@E>3F;A@
363F;H7
FD3@E>3F;A@
363@57 3F 479;@@;@9
A8 K73D  AD7;9@ 5GDD7@5KFD3@E>3F;A@
363@57 3F 7@6 A8 K73D   ,:3D7;@
G@D73>;L76 83;DH3>G7 93;@E A@  , ;@H7EF?7@FE
A8
3@
3EEA5;3F7 3>3@57 3F 479;@@;@9
A8 K73D   :3@97 ;@ E:3D7;@
G@D73>;L76 83;DH3>G7 93;@E A@  , ;@H7EF?7@FE   3>3@57 3F 7@6 A8 K73D  $   ) 

96 -:7 53DDK;@9 H3>G7E
A8
F:7 ;DEF
!A>6;@9E DAGBNE ;@H7EF?7@FE ;@
3EEA5;3F7E 8A>>AI

   4 /22/549 &+%( $  )  +($0%%    ))    ,"   )3@3K >75FD;5  (F:7DE    $   ) 

E
A8
757?47D

 
3@6  
F:7 83;DH3>G7
A8
F:7 &+%( E:3D7EI3E )  4;>>;A@ 3@6 )  4;>>;A@ D7EB75F;H7>K -:7 83;DH3>G7
A8
F:7
E:3D7E ;@
+($0%% )) ,"
3@6 )3@3K >75FD;5
3D7
@AF 67F7D?;@34>7 E;@57
F:7D7;E @A BG4>;5>KCGAF76
BD;57 3H3;>34>7 8ADEG5: E:3D7E

A>>AI;@9 3D7
F:7 5A@67@E76 8;@3@5;3> ;@8AD?3F;A@
A8 ;DEF
!A>6;@9E DAGBNE E;9@;8;53@F
3EEA5;3F7E
@3?7>K &+%( +($0%% 3@6 )) 3@6 EG4E;6;3DK

   A>>2:@ A>>2:@ GDD7@F GDD7@F ??2@? 6./686@62? EE7FE %;34;>;F;7E 4 /22/549 &+%( $ $  )  )  +($0%%         )) 3@6
3
EG4E;6;3DK      

   (;@.8 (;@.8 -AF3> -AF3> ??2@? 6./686@62? EE7FE %;34;>;F;7E 4 /22/549 &+%( $   $   )  )  +($0%%        )) 3@6
3
EG4E;6;3DK       

+7H7@G7      4 /22/549 &+%( $   )  )  +($0%%       )) 3@6
3
EG4E;6;3DK      

AEF
3@6 JB7@E7E      4 /22/549 &+%( $  )  )  +($0%%      )) 3@6
3
EG4E;6;3DK     

'7F
"@5A?7      4 /22/549 &+%( $  )  )  +($0%%    )) 3@6
3
EG4E;6;3DK     

97 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

A>>AI;@9 3D7 ;@8AD?3F;A@
34AGF 3@6 ?3

" &+%(

7@7D3> &+%( 6;EFD;4GF7E BAI7D
G@67DE7B3D3F78D3@5:;E7E
9D3@F76 4K
F:7 ):;>;BB;@7 AH7D@?7@F (@ &3D5:

  F:7 + 9D3@F76 &+%(
3)DAH;E;A@3> GF:AD;FK
FA
5A@F;@G7 FA
AB7D3F77>75FD;5 6;EFD;4GF;A@ EKEF7? ;@
F:7
5;F;7E
A8
&3@;>3 ,3@ #G3@ %3E );W3E *G7LA@ &3>34A@
&3=3F; 3>AA53@ )3E3K &3@63>GKA@9 3@6 )3D3W3CG7 3@6
F:7 ?G@;5;B3>;FK
A8
'3HAF3E (@#G@7 
 
+7BG4>;5 5F +  
'A
  O&+%( D3@5:;E75FP I3EE;9@76 ;@FA>3I 9D3@F;@9 &+%(
3
 K73D 8D3@5:;E7
FA
5A@EFDG5F AB7D3F73@6?3;@F3;@3@7>75FD;5
6;EFD;4GF;A@ EKEF7?

+
  5A@EA>;63F76  BD7H;AGE>K :7>6 8D3@5:;E7E A8
&+%( 5AH7D;@9  5;F;7E 3@6  ?G@;5;B3>;F;7E ;@ &7FDA &3@;>3 3@6 E;J EGDDAG@6;@9 BDAH;@57E

(@
757?47D

  )!
35CG;D76 3
  ;@F7D7EF ;@ F:7 AGFEF3@6;@9 5A??A@ EFA5=
A8 &+%( 8DA?
F:7
&+%( )7@E;A@ G@6 -:7   ;@F7D7EF 5A@E;EFE
A8
   >3EE OP 5A??A@ EFA5=
3@6
   >3EE OP 5A??A@ EFA5= 8AD
3
FAF3> 5A@E;67D3F;A@A8)  4;>>;A@ -:7 E7FF>7?7@F
A8
F:7
5A@E;67D3F;A@ I3E ?367 ;@
F:D77 ;@EF3>>?7@FE
F:DAG9: 757?47D

  EG4<75F FA;@F7D7EF 3F
 -AF3> ;@F7D7EF
B3;6
3?AG@F76
FA)   ?;>>;A@ 3@6 ;ED75AD676 3EO8;@3@57 5AEFEP ;@ F:7   5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 E
A8
757?47D

  3@6   9AA6I;>> ;@5>G676 3E
B3DF
A8
F:7 5AEF
A8 ;@H7EF?7@F 3?AG@F76 FA) 4;>>;A@

'A ;?B3;D?7@FI3ED75A9@;L76
A@ EG5: ;@H7EF?7@F

(@ #G>K
   )! BGD5:3E76
F:7  
75A@A?;5
3@6 HAF;@9 ;@F7D7EFE
A8
.@;A@ 7@AE3 "@F7D@35;A@3> ,  ;@ ). 8AD?7D>K =@AI@
3E ). " 8AD
3
FAF3> 5A@E;67D3F;A@
A8 )  ?;>>;A@  ?;>>;A@ ,G5: ;@F7D7EF 5A@E;EFE
A8
   E:3D7E
A8 D7677?34>7 EFA5= 3@6   E:3D7E A8 5A??A@ EFA5= ;@ ). (@
F:7 63F7
A8
35CG;E;F;A@ F:7 53DDK;@9
3?AG@F
A8
.@;A@ 7@AE3 "@F7D@35;A@3> ,  NE ?;@AD;FK ;@F7D7EF ;@ ). A8 )  ?;>>;A@ I3ED7?AH76 8DA? 7CG;FK 3@6
A88E7F 393;@EF
F:7 BGD5:3E7
BD;57 -:7
6;887D7@57
A8 )  ?;>>;A@ 47FI77@
F:7 53DDK;@9
3?AG@F
A8
F:7
?;@AD;FK ;@F7D7EF 3@6
F:7
BGD5:3E7
BD;57 ;EE:AI@3E B3DF
A8
7CG;FK E
3
D7EG>F
A8
F:7
35CG;E;F;A@ ). 4753?7
3
I:A>>K AI@76 EG4E;6;3DK A8 )! -:7 D;9:FE
FA F:7 ). E:3D7E
I7D7
FD3@E87DD76 FA )!
GBA@ 5>AE;@9
A8
F:7
FD3@E35F;A@ ;@ #3@G3DK  

-:7
FAF3> 6;D75F 3@6 ;@6;D75F ;@F7D7EF
A8 )! ;@ &+%(
3E
A8
757?47D

  ;E
 

(@
&3D5:    )! E;9@76
3@
"@H7EF?7@F
3@6 AAB7D3F;A@ 9D77?7@FE7>>;@9  
A8 ;FE ;@F7D7EF ;@ &+%(
FA ):;>;BB;@7
%A@9 ;EF3@57 -7>7B:A@7
A?B3@K )%- E77
'AF7


"" ))

)) I3E ;@5ADBAD3F76 A@ 74DG3DK   4K ;DEF 7@ 3@6 &+%( 735: AI@;@9   7CG;FK ;@F7D7EF FA97F:7DI;F:# ,G??;F
ADBAD3F;A@
3@
G@D7>3F76 B3DFK I:;5: AI@E
F:7 D7?3;@;@9  

'AF7E 7 3@6 @ ;@5>G67 3
6;E5GEE;A@
A@
F:7 (- 9D77?7@FE
3@6
F:7 F3J
3EE7EE?7@F D7EB75F;H7>K A8))

(@ ,7BF7?47D
   GBA@ 3BBDAH3> 4KF:7 ,
A8
F:7
D76G5F;A@;@3GF:AD;L76 53B;F3> EFA5=
A8 )) 3@6
G>F;?3F7 D76G5F;A@ ;@
AGFEF3@6;@9 53B;F3> EFA5=
A8 )) 8DA?

?;>>;A@ E:3D7E
I;F:
3@ 399D793F7
B3DH3>G7
A8 )  4;>>;A@   ?;>>;A@
FA  ?;>>;A@ E:3D7EI;F:3@399D793F7
B3DH3>G7
A8 )   ?;>>;A@   ?;>>;A@ 8AD
F:7
BGDBAE7
A8 D7FGD@;@9 53B;F3>
FA
F:7 EFA5=:A>67DE )! D757;H76 3@ 7CG;H3>7@F ) ?;>>;A@  ?;>>;A@ 8DA?
F:7
BDA D3F3 D7FGD@;@53B;F3> -:7
AI@7DE:;B
A8 )! ;@ )) D7?3;@76 3F
  3E
A8
757?47D
  

"@H7EF?7@F ;@ )) ;@5>G67E
9AA6I;>> 3?AG@F;@9
FA) ?;>>;A@  ?;>>;A@
3E A8
757?47D

 
3@6
 

""" +($0%%

+($0%% ;E
7@93976 ;@ D73>
7EF3F767H7>AB?7@F E3>7 AD >73E7
A8 D7E;67@F;3> 3@6 5A??7D5;3> G@;FE 3@6 >AFE 3@6 >73E7
A8 ?3>> 835;>;F;7E
3@6 EB357E

98 "@
  >3@6 :7>6 8AD 8GFGD7
67H7>AB?7@FD7BD7E7@FE
  ECG3D7?7F7DE
A8 >3@6 I;F:;@ F:7 +A5=I7>> 7@F7D
"@   >3@6
:7>6
8AD 8GFGD7
67H7>AB?7@F 5A@E;EFE
A8
 
ECG3D7?7F7DE
A8 >3@6 I;F:;@ F:7 +A5=I7>>
7@F7D 3@6   ECG3D7?7F7DE
A8 >3@6 ;@ )3E;9
;FK
+A5=I7>> I;>> 67H7>AB
F:7 >3@6 ;@ )3E;9
;FK ;@FA
3
?;6 D;E7 D7E;67@F;3> 5A@6A?;@;G?5A??G@;FK E;?;>3D
FA
F:7 +A5=I7>>
7@F7D +($0%%
:3EEF3DF76 F:7
67H7>AB?7@F
A8
F:7 >3@6 ;@ )3E;9 ;FK ;@FA3?;6 D;E7 D7E;67@F;3> 5A@6A?;@;G?5A??G@;FK O-:7 DAH7P E;?;>3D
FA
F:7 +A5=I7>>
7@F7D

"@
&3D5:   &+%( 3@6 +A5=I7>> E;9@76
3
6;@9
BDA<75F
676;53F76
FA4GE;@7EE
BDA57EE
AGFEAGD5;@9 )(
3F
F:7 &+%( A?BAG@6 (DF;93E
7@F7D )3E;9
;FK E 39D776 &+%( 5A@FD;4GF76
F:7
GE7
A8
F:7
>3@6 I:;>7 +A5=I7>> I;>> 5A@FD;4GF7
FA
F:7 67H7>AB?7@F 5AEF
A8
F:7
BDAB7DFK -:7 >
47   8AD
+A5=I7>> 3@6  
8AD
&+%(

 $>;<2>@E $8.:@
.:1 =A6<92:@

-:;E
355AG@F 5A@E;EFE
A8

 A6816:4? #@52> '@>A0@A>2? !.056:2>E .:1 (>.:?<;>@.@6;: =A6<92:@ ;:?@>A0@6;: .:1 9<>;B292:@? =A6<92:@ .:1 #@52>? 6: $>;4>2?? (;@.8 4 /22/549 ;?@ 3>3@57 3F 479;@@;@9 A8 K73D $   $  $  $  $  $  66;F;A@E      ;EBAE3> ;@ 5A@@75F;A@ I;F: E3>7 A8 )"" H    H  +75>3EE;8;53F;A@ H       AD7;9@ 5GDD7@5K
FD3@E>3F;A@ 363@57 3F 7@6 A8 K73D       00A9A8.@21 2<>206.@6;: 9;>@6F.@6;: .:1 9<.6>92:@ ;??2? 3>3@57 3F 479;@@;@9 A8 K73D H      H   7BD75;3F;A@ 3@6 3?ADF;L3F;A@ 8ADF:7 K73D H     H  ;EBAE3> ;@ 5A@@75F;A@ I;F: E3>7 A8 )"" H     H AD7;9@ 5GDD7@5K
FD3@E>3F;A@ 363@57 3F 7@6 A8 K73D H     H   $  $  $ $   $ $  

  G;>6;@9E (F:7D &35:;@7DK ,FDG5FGD7E 3@6 -D3@EBADF3F;A@ CG;B?7@F A@EFDG5F;A@ %3@6 "?BDAH7?7@FE CG;B?7@F 3@6 (F:7DE ;@ )DA9D7EE -AF3> 4 /22/549 ;?@ 3>3@57 3F 479;@@;@9 A8 K73D ) )  ) )  ) )  5CG;E;F;A@EF:DAG9: 4GE;@7EE 5A?4;@3F;A@ E77 'AF7      Q   66;F;A@E          ;EBAE3>EQ   Q  +75>3EE;8;53F;A@ Q        AD7;9@ 5GDD7@5K
FD3@E>3F;A@ 363@57 3F 7@6 A8 K73D 3ED7EF3F76            00A9A8.@21 2<>206.@6;: 9;>@6F.@6;: .:1 9<.6>92:@ ;??2? 3>3@57 3F 479;@@;@9 A8 K73DQ     Q   7BD75;3F;A@ 3@6 3?ADF;L3F;A@ 8ADF:7 K73DQ    Q   ;EBAE3>EQ    Q  +75>3EE;8;53F;A@ Q    Q  AD7;9@ 5GDD7@5K
FD3@E>3F;A@ 363@57 3F 7@6 A8 K73DQ     Q   )  )  ) )  ) ) 

99 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

'A
4ADDAI;@9 5AEFE I7D7 53B;F3>;L76 ;@   3@6  

;DEF 7@ DAGBNE
BDAB7DFK
B>3@F 3@6 7CG;B?7@FI;F:@7F
4AA= H3>G7E
A8 ) 
4;>>;A@
3@6 ) 4;>>;A@ 3E A8
757?47D

  3@6   D7EB75F;H7>K :3H7 477@ B>76976
3EE75GD;FK 8AD >A@9 F7D?
674F
E77
'AF7 

 :@2>2?@?
6:
;6:@ *2:@A>2

)! F:DAG9: "
7@F7D76 ;@FA E7H7D3> G@;@5ADBAD3F76 5A@EFDG5F;A@ 3@6 7@9;@77D;@9 G67

)DA<75F '3?7 #A;@F
/7@FGD7
)3DF@7D "@F7D7EF A8 )! '3FGD7A8)DA<75F )DA<75F B7D;A6 ,F %G=7NE &76;53> &3=3F;7H7>AB?7@F  A@EFDG5F;A@ A8 ,%& 74DG3DK  
FA 7@F7D ,%& AD ADBAD3F;A@ & !AEB;F3> 757?47D   &  %+- 'ADF:  & A@EG@<;
"@5  A@EFDG5F;A@ A8 %+- 'ADF: #G@7   FA#G@7 JF7@E;A@
)DA<75F &" JF7@E;A@
)DA<75F   &"  ,$" 
#A;@F ,G??3
$G?393;
"@5  A@EFDG5F;A@ A8 O-:7 BD;>   FA /7@FGD7 ,$"  ,$" &3@3@E3>3PD7E;67@F;3> 757?47D   5A@6A?;@;G?E >A53F76 ;@ +A5=I7>> &3=3F;;FK ( E;3 '353B '353B '767D>3@6  /   A@EFDG5F;A@ A8 93E B;B7>;@7 #3@G3DK 
FA #A;@F
/7@FGD7 835;>;FK (5FA47D   ( E;3  :7?;FD73F
#A;@F :7?;FD73F )F7%;?;F76 "@ 355AD63@57 I;F:
F:7 7E;9@ 3@6 5A@EFDG5F;A@ A8 BD;>   FA /7@FGD7  :7?;FD73F B7D8AD?3@57 A8 735: 5A??G@;FK E3@;F3F;A@ 757?47D   :7?;FD73F H7@FGD7DNE E5AB7 A8 IAD=;@ BDA<75FE ;@ -39G;9 ;FK 3@6 >;@7 I;F:
F:7 5A@FD35F *G7LA@ ;FK 39D77?7@F &0," ,FG4(GF :7?;FD73F "@ 355AD63@57 I;F:
F:7 7E;9@ 3@6 5A@EFDG5F;A@ A8 #3@G3DK  
FA )DA<75F B7D8AD?3@57 A8 735: ,7I7D397 -D73F?7@F )>3@F ;@ 757?47D   H7@FGD7DNE E5AB7 A8 IAD=;@ *G7LA@ ;FK >;@7 I;F:
F:7 5A@FD35F 39D77?7@F 7 @9;@77D;@9 , "@5   (887DE IAD>6 5>3EE #3@G3DK  
FA ,GBBADF
,7DH;57E 7@9;@77D;@9
EGBBADF E7DH;57E (5FA47D   #A;@F
/7@FGD7 FA
8AD7;9@ 3@6 >A53> 7 ,, 5GEFA?7DE

-:7 E:3D7
A8
F:7
3EE7FE >;34;>;F;7E ;@5A?7
3@6
7JB7@E7E
A8
F:7
G676 ;@
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3D7
3E 8A>>AIE

 ! '  5296@>2.@ ! (;@.8 4 /22/549 '5.>2
6: GDD7@F 3EE7FE $ $H$  $ $   'A@5GDD7@F 3EE7FE  HHH GDD7@F
>;34;>;F;7E     +7H7@G7
8DA? 5A@FD35FE 3@6 E7DH;57E   HH   AEF A8 5A@FD35FE 3@6 E7DH;57E   HH   (F:7D
;@5A?7 HH

  &  ,$"   :7?;FD73F 7 ,, -AF3> 4 /22/549 '5.>2
6: GDD7@F 3EE7FE )  ) ) )Q )  'A@5GDD7@F 3EE7FE  QQQ GDD7@F
>;34;>;F;7E       +7H7@G7
8DA? 5A@FD35FE 3@6 E7DH;57E  QQQ AEF A8 5A@FD35FE 3@6 E7DH;57E  QQ  (F:7D
;@5A?7  QQQ

E
A8
757?47D

  & " 3@6
&" "
3D7
  3@6   5A?B>7F76 D7EB75F;H7>K

100  :B2?@92:@ $>;<2>@62?

&AH7?7@FE
A8
F:;E
355AG@F 3D7
3E 8A>>AIE

   A6816:4? G;>6;@9E .:1 3@6 .:1 #@52>? (;@.8 %3@6 (F:7DE -AF3> 4 /22/549 ;?@ 3>3@57 3F 479;@@;@9 A8 K73D $  $  $  )  )  )  66;F;A@EQ  Q   ;EBAE3>EQ    QQQ AD7;9@ 5GDD7@5K
FD3@E>3F;A@ 363EE;8;53F;A@ QQQQ  6206.@6;: 3>3@57 3F 479;@@;@9 A8 K73DQ   Q   7BD75;3F;A@
8AD
F:7 K73DQ  Q   ;EBAE3>E QQQQQQ AD7;9@ 5GDD7@5K
FD3@E>3F;A@ 363EE;8;53F;A@ Q     QQQ H   Q   '7F 4AA= H3>G7 $  $  $  )  ) ) 

-:7 83;DH3>G7E
A8 ;@H7EF?7@F
BDAB7DF;7E
3?AG@F76 FA)  ?;>>;A@
3@6 )  ?;>>;A@
3E
A8 757?47D

  3@6   D7EB75F;H7>K 3;DH3>G7E
:3H7
477@ 67F7D?;@76 43E76
A@ H3>G3F;A@E B7D8AD?76 4K
DAI@)DAB7DFK BBD3;E3> ADBAD3F;A@ 3@6 )DG67@F;3> G3D3@F77
3@6 EEGD3@57
"@5 355D76;F76 ;@67B7@67@FH3>G7DE -:7E3;6 3BBD3;E7DE 3D7;@6GEFDK EB75;3>;EFE ;@ H3>G;@9
F:7E7 FKB7E
A8 ;@H7EF?7@F
BDAB7DF;7E -:7 83;DH3>G7 D7BD7E7@FE
F:7
3?AG@F
3FI:;5:
F:7
3EE7FE 5AG>6 47 7J5:3@976 47FI77@ 3 =@AI>769734>7 I;>>;@9 4GK7D
3@6
3
=@AI>769734>7 I;>>;@9 E7>>7D ;@ 3@ 3D?NE >7@9F:
FD3@E35F;A@ 3F
F:7
63F7
A8 H3>G3F;A@ ;@ 355AD63@57 I;F: F:7 .@;8AD?,F3@63D6E
A8 )DA87EE;A@3> BBD3;E3> )D35F;57 ;@ F:7 ):;>;BB;@7E

"@ 5A@6G5F;@9
F:7 3BBD3;E3>
F:7 355D76;F76 ;@67B7@67@FH3>G7DE
GE76 A@7 A8
F:7
8A>>AI;@9 3BBDA35:7E

3 &3D=7F
3F3
AD A?B3D3F;H7BBDA35:

.@67DF:;E 3BBDA35:
F:7 H3>G7
A8
F:7 BDAB7DFK ;E
43E76
A@
E3>7E 3@6 >;EF;@9E A8 5A?B3D34>7
BDAB7DFK D79;EF7D76 I;F:;@
F:7 H;5;@;FK -:;E
3BBDA35: D7CG;D7E
F:7
7EF34>;E:?7@F
A8
3
5A?B3D34>7 BDAB7DFK
4K D76G5;@9 5A?B3D3F;H7 E3>7E
3@6 >;EF;@9EFA
3
5A??A@
67@A?;@3FADI;F: F:7 EG4<75F -:;E ;E
6A@7 4K 36 E3>7E
3@6 >;EF;@9ED793D676
3E 5A?B3D34>7E -:7
BDAB7DF;7E
GE76
3D77;F:7DE;FG3F76 I;F:;@ F:7 ;??76;3F7 H;5;@;FK AD 3F 6;887D7@F 8>AAD >7H7>E A8
F:7
E3?7
4G;>6;@9
I:;5:7H7D ;E ?AEF
3BBDABD;3F7 FA
F:7
BDAB7DFK 47;@9 H3>G76 A?B3D;EA@ I3E
BD7?;E76
A@
F:7 E3?7 835FADE I:;5: ;@5>G67E
3?A@9 AF:7DE
A8 >A53F;A@ E;L7
3@6 B:KE;53> 3FFD;4GF7E E7>>;@9
F7D?E 835;>;F;7E
A887D76
3@6
F;?7
7>7?7@F

4 "@5A?7
3B;F3>;L3F;A@ BBDA35:

-:7
BD7?;E7
A8 EG5:
3BBDA35: ;E
F:3FF:7 H3>G7A8
3
BDAB7DFK ;E 6;D75F>KD7>3F76 FA F:7 ;@5A?7 ;F 97@7D3F7E -:;E
3BBDA35: 5A@H7DFE 3@F;5;B3F76 8GFGD7 93;@E
FA
BD7E7@FIADF:4K
BDA<75F;@9 D73EA@34>7 ;@5A?7
3@6
7JB7@E78AD
F:7 EG4<75F
BDAB7DFK

+7@F3> ;@5A?7 8DA? ;@H7EF?7@F
BDAB7DFK 8AD
F:7 K73DE
7@676 757?47D

 
  3@6   3?AG@F76
FA) ?;>>;A@ ) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K

;D75F
AB7D3F;@9 7JB7@E7E EG5:
3ED7B3;DE
3@6
?3;@F7@3@57 3D;E;@9 8DA? ;@H7EF?7@F
BDAB7DF;7E
F:3F 97@7D3F76 D7@F3> ;@5A?7 ;@  
  3@6  
3?AG@F76 FA) ?;>>;A@ ) ?;>>;A@
3@6 ) ?;>>;A@ D7EB75F;H7>K (@
F:7
AF:7D :3@6 6;D75F
AB7D3F;@9 7JB7@E7E
3D;E;@9 8DA? ;@H7EF?7@F
BDAB7DFK F:3F 6;6 @AF 97@7D3F7 D7@F3> ;@5A?7
6GD;@9
F:7 K73DE 7@676
757?47D

    3@6  
3?AG@F76
FA) ?;>>;A@ ) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K

101 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

 ;;1C688

AA6I;>> 5A@E;EFE
A8
F:7 8A>>AI;@9
  ED7EF3F76
 E77
'AF7
 4 /22/549 AEF 3>3@57 3F 479;@@;@9
A8 K73D $ ) 5CG;E;F;A@ F:DAG9: 4GE;@7EE 5A?4;@3F;A@ E77
'AF7 H   AD7;9@
7J5:3@97 36

"?B3;D?7@F -7EF;@9
A8 AA6I;>> -:7 D75AH7D34>7 3?AG@F
:3E
477@ 67F7D?;@76
43E76 A@
3 H3>G7;@GE7 53>5G>3F;A@
GE;@9 53E:8>AI BDA<75F;A@E 43E76 A@ 8;@3@5;3>
4G697FE 3BBDAH76 4KE7@;AD ?3@397?7@F 5AH7D;@9 3 8;H7 K73D B7D;A6 -:7 BD7 F3J
6;E5AG@FD3F7E
3BB>;76
FA53E:8>AI
BDA<75F;A@ED3@97 8DA?
 
FA  
3@6 F:7 53E:8>AIE 47KA@6
F:7 D7?3;@;@9
F7D?
A8
F:7
7J;EF;@9 39D77?7@FE
3D7
7JFD3BA>3F76 GE;@9
9DAIF: D3F7E A8
  8AD )
3@6
  8AD
4AF:
3@6 !K6DA

$7K
3EEG?BF;A@E
GE76 ;@ H3>G7;@
GE753>5G>3F;A@ A8
F:7
53E: 97@7D3F;@9 G@;FE 8AD
757?47D

  3@6  
A@ I:;5: ?3@397?7@F
:3E 43E76 ;FE 53E:8>AI BDA<75F;A@EFA G@67DF3=7 ;?B3;D?7@F
F7EF;@9
A8 9AA6I;>> 3D7
3E 8A>>AIE

G697F76 DAEE
&3D9;@E

-:7
43E;E
GE76 FA67F7D?;@7
F:7 H3>G7
3EE;9@76
FA
F:7 4G697F76
9DAEE ?3D9;@E ;EF:7 3H7D397 9DAEE ?3D9;@E
35:;7H76 ;@ F:7 K73D ;??76;3F7>K 478AD7
F:7
4G697F76 K73D ;@5D73E76 8AD
7JB75F76
788;5;7@5K ;?BDAH7?7@FE

A@6
+3F7E

-:7
3H7D397 K;7>6
A@ 3 8;H7 K73D 9AH7D@?7@F
4A@6 D3F7
3F
F:7 479;@@;@9
A8
F:7 4G697F76 K73D ;E GF;>;L76

3E76 A@ F:7 F7EF B7D8AD?76
F:7D7;E @A ;?B3;D?7@F
A8
9AA6I;>>

 :@.:46/82 ??2@?

-:7 ?AH7?7@FE
A8
F:7E7 355AG@FE
3D7
3E 8A>>AIE

 ;:02??6;: &645@?
3;> +.@2> $6<286:2 ;:@>.0@? ;:02??6;: &645@? &645@? 0=A6>21 &645@? (;@.8 4 /22/549 ;?@ 3>3@57 3F #3@G3DK    3E BD7H;AGE>K D7BADF76 $   $ $H$  $  5CG;E;F;A@
F:DAG9: 4GE;@7EE 5A?4;@3F;A@ E77 'AF7 H   H   3>3@57 3F #3@G3DK    3E
D7EF3F76        66;F;A@E HHH  ;EBAE3>
F:DAG9: E3>7 A8 )"" E77 'AF7 HHH      AD7;9@ 7J5:3@97 363@57 3F 757?47D           

102  ;:02??6;: &645@?
3;> +.@2> $6<286:2 ;:@>.0@? ;:02??6;: &645@? &645@? 0=A6>21 &645@? (;@.8 4 /22/549 00A9A8.@21 9;>@6F.@6;: 3>3@57 3F #3@G3DK    $  $ $H$   $   ;EBAE3>
F:DAG9: E3>7 A8 )"" E77 'AF7 HHH      ?ADF;L3F;A@ 6GD;@9
F:7 K73D        AD7;9@ 7J5:3@97 363@57 3F 757?47D           '7F 4AA= H3>G7 $  $ $  $  $ 

 
E
D7EF3F76

E77 'AF7 A@57EE;A@ +;9:FE
8AD 03F7D );B7>;@7 A@FD35FE A@57EE;A@ +;9:FE +;9:FE 5CG;D76 +;9:FE -AF3> 4 /22/549 ;?@ 3>3@57 3F #3@G3DK    3E BD7H;AGE>K D7BADF76 )Q ) )Q )  )  5CG;E;F;A@
F:DAG9: 4GE;@7EE 5A?4;@3F;A@   QQ    3>3@57 3F #3@G3DK    3E
D7EF3F76    Q      66;F;A@E QQQ  5CG;E;F;A@
F:DAG9: 4GE;@7EE 5A?4;@3F;A@ QQ      AD7;9@ 7J5:3@97 363@57 3F 757?47D              00A9A8.@21 9;>@6F.@6;: 3>3@57 3F #3@G3DK    Q  Q     5CG;E;F;A@
F:DAG9: 4GE;@7EE 5A?4;@3F;A@ QQQ  ?ADF;L3F;A@ 6GD;@9
F:7 K73D    Q   AD7;9@ 7J5:3@97 363@57 3F 757?47D       Q      )  ) )  )   ) 

03F7D
+;9:FE
3@6 A@57EE;A@ +;9:FE A@FD35FE 03F7DD;9:FE
3D7
3?ADF;L76 GE;@9 F:7 EFD3;9:F >;@7 ?7F:A6 AH7D  K73DE I:;5: ;EF:7
F7D?
A8
F:7
9D77?7@FI;F: F:7 '" -:7 D7?3;@;@9
3?ADF;L3F;A@ B7D;A6
A8 I3F7DD;9:FE ;E
  K73DE
3E
A8 757?47D

 

E
3
D7EG>F
A8
F:7
BGD5:3E7BD;57 3>>A53F;A@ 3@ ;@F3@9;4>7
3EE7FI3ED75A9@;L76
B7DF3;@;@9 FA A@57EE;A@ +;9:FE
AD;9;@3F;@9 8DA?
F:7
A@FD35FE E77 'AF7   ,G5: ;@F3@9;4>7 3EE7F B7DF3;@E
FA
F:7 ,,E 3@6 ))E
F:3FI7D7
35CG;D76
3E
3
D7EG>F A8
F:7 
35CG;E;F;A@ ;@
'AH7?47D
  -:7 ;67@F;8;76 ;@F3@9;4>7 3EE7F ;E
3?ADF;L76
GE;@9 F:7 EFD3;9:F >;@7 ?7F:A6 AH7DF:7 F7D?A8
F:7
7J;EF;@9 5A@FD35FE D3@9;@9 8DA?

K73DFAK73DE -:7
A@57EE;A@
+;9:FE 8AD
F:7
A@FD35FE
:3H7
477@ H3>G76 43E76 A@
F:7
7JB75F76 8GFGD753E:8>AIE
GE;@9
F:7 &G>F;B>7 J57EE 3D@;@9E &7F:A6 &&
3E
A8
F:7 63F7
A8
35CG;E;F;A@ && ;E
F:7 ?AEF 5A??A@>KGE76 3BBDA35: ;@ H3>G;@9 5GEFA?7D D7>3F76
3EE7FE 3>F:AG9: ;F ?3K 47
GE76 FA H3>G7AF:7D ;@F3@9;4>7
3EE7FE
3E
I7>> -:7
3EE7FH3>G7;E 7EF;?3F76
3E
F:7 EG?A8
F:7
6;E5AG@F76 8GFGD7 7J57EE
73D@;@9E
3FFD;4GF34>7
FA
F:7 3EE7F AH7D
F:7
BDA<75F
B7D;A6 -:7 3H7D397 D7?3;@;@9
3?ADF;L3F;A@ B7D;A6
A8
F:7 ;@F3@9;4>7 3EE7F
B7DF3;@;@9
FA
F:7
A@FD35FE ;E
 K73DE
3E
A8
757?47D

 

A@57EE;A@
+;9:FE A@57EE;A@ D;9:FE D7BD7E7@F
F:7 ;?B35F
A8
F:7
73D>K 36ABF;A@ A8 ):;>;BB;@7 "@F7DBD7F3F;A@
" +"
 4K  78875F;H7#3@G3DK    E77
'AF7
  :3ED75A9@;L76 ;FE E7DH;57 5A@57EE;A@ 8AD
'ADF:7D@
'79DAE 7AF:7D?3> )DA<75F '' )
G@67DF:7 ;@F3@9;4>7 3EE7F ?A67>
43E76
A@ ;FE D;9:FFA5:3D97
GE7DE
A8
F:7 BG4>;5 E7DH;57 9;H7@ F:3F ;F :3E
@A 7J;EF;@9 39D77?7@FI;F: ') 8AD
F:7 97AF:7D?3> D7EAGD57E 3@6 7>75FD;53> 7@7D9K
BDA6G576
8DA?
F:7
E7DH;57 5A@FD35F
3D73 -:7 ;@F3@9;4>7
3EE7F
B7DF3;@;@9
FA A@57EE;A@ D;9:FE 8AD
'' ) ;E
47;@9 3?ADF;L76
GE;@9 F:7 EFD3;9:F >;@7 ?7F:A6 AH7DF:7 D7?3;@;@9
3?ADF;L3F;A@ B7D;A6 A8
 K73DE I:;5: ;EF:7 F7D?A8
F:7
D7>3F76 , 8AD '' )
3@6 ;@5>G67E
F:7 D7@7I3> B7D;A6 A@
F:7 43E;E A8
F:7
5A@EF;FGF;A@3> 3@6 5A@FD35FG3>
BDAH;E;A@E 3@6 ;FE :;EFAD;53>
7JB7D;7@57
A8
A4F3;@;@9 EG5: D7@7I3>E E
3
D7EG>F
A8
F:7
BGD5:3E7BD;57 3>>A53F;A@ F:7 5A@57EE;A@ D;9:FE 8AD
'' ) :3H7 477@ D7H3>G76 43E76
A@
F:7
7JB75F76 8GFGD753E:8>AIE
GE;@9
F:7 && 3BBDA35:
3E
A8
F:7 63F7
A8
35CG;E;F;A@ -:7
3EE7FH3>G7;E

103 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

7EF;?3F76
3E
F:7 EG?
A8
F:7
6;E5AG@F76 8GFGD7
7J57EE 73D@;@9E
3FFD;4GF34>7 FA F:7 3EE7F
AH7D
F:7
BDA<75F B7D;A6

66;F;A@E
FA;@F3@9;4>7
3EE7FE
6GD;@9
  B7DF3;@ FA
F:7 5A@EFDG5F;A@
A8
F:7 -3@3IA@ 7AF:7D?3> )DA<75F 3@6 F:7 EF3DF A8
F:7
EF73? 8;7>6 67H7>AB?7@F
A8
'' )NE
4G887DLA@7

-:7 D75AH7D34>7 3?AG@F
A8
F:7
'' ) I:;5: ;E 5A@E;67D76
3E 353E: 97@7D3F;@9 G@;F
:3E 477@ 67F7D?;@76 43E76 A@ 3 H3>G7 ;@ GE7 53>5G>3F;A@
GE;@9 F:7
7JB75F76 53E:8>AI
BDA<75F;A@E 
GE7E
F:7 )7DB7FG;FK DAIF: &A67> FA
67F7D?;@7
F:7
F7D?;@3> H3>G7 I:;5: 355AG@FE 8AD
F:7 H3>G7A88D77 53E:8>AIE F:3F 5A@F;@G7;@B7DB7FG;FK 47KA@6
F:7 8;H7 K73D B7D;A6
BDA<75F;A@
9DAI;@9
3F 3@
3EEG?76 5A@EF3@FD3F7

-:7
BDA<75F76 53E:8>AIE 47KA@6 8;H7 K73DE :3H7 477@
67F7D?;@76 GE;@9
F:7
B7DB7FG;FK 9DAIF: ?A67>
3F 3 ?A67EF
9DAIF: D3F7
A8
 @AF
7J5776;@9
F:7 3H7D397 D73> 9DAEE
6A?7EF;5
9DAIF: D3F7
A8
  3@6 F:7 3H7D397 3@@G3>
67?3@6
9DAIF:A8
 8AD
F:7
/;E3K3E BAI7D ;@6GEFDK ?3D=7FI:7D7
F:7 G@;F
AB7D3F7E  BD7 F3JD3F7A8
   ;E
GE76 ;@
6;E5AG@F;@9 F:7 @7F 53E:8>AI
A8
F:7
BDA<75F

-:7
'' ) I:;5: :3E
477@
A@ F7?BAD3DK E:GF6AI@ E;@57 #G@7   ;E
7JB75F76
FA
D7EG?7 ;FE AB7D3F;A@E 4KE75A@6 CG3DF7D
A8
 

);B7>;@7
+;9:FE );B7>;@7 D;9:FE D7BD7E7@F
F:7 5A@EFDG5F;A@ 5AEF
A8
F:7 @3FGD3>
93E B;B7>;@7 835;>;FK 5A@@75F;@9
F:7
@3FGD3> 93EEGBB>;7DNE D78;@7DK
FA
)NE
BAI7D B>3@F ;@5>G6;@9 ;@5;67@F3>
FD3@E87D 5AEFE ;@5GDD76 ;@ 5A@@75F;A@ I;F: F:7
FD3@E87D
A8
AI@7DE:;B A8
F:7 B;B7>;@7 835;>;FK FA
F:7 @3FGD3>
93EEGBB>;7D -:75AEF
A8
B;B7>;@7 D;9:FE ;E 3?ADF;L76
GE;@9 F:7 EFD3;9:F >;@7 ?7F:A6 AH7D  K73DE
I:;5: ;E
F:7
F7D?
A8
F:7
3E ,3>7 3@6 )GD5:3E7 9D77?7@F  ,) -:7 D7?3;@;@9 3?ADF;L3F;A@ B7D;A6
A8
B;B7>;@7 D;9:FE ;E   K73DE
3E
A8 757?47D

 

 #@52>
";:0A>>2:@ ??2@?

-:;E
355AG@F 5A@E;EFE
A8    4 /22/549 )D7B3;6 93E E77 'AF7E  3@6 9 $  )  6H3@57EFA
3
?;@AD;FK E:3D7:A>67D
A8 ;DEF 7@ @7F
A8 5GDD7@F BADF;A@ E77 'AF7    H )D7B3;6 ?3G3F;A@ 3@6
7JB>AD3F;A@ 3EE7FE    "@BGF /-      , 8;@3@5;3> 3EE7FE E77
'AF7     ,:3D7;@
@A@5GDD7@F
3EE7FE A8 FK 877E 5:3D9734>7 FA ') E77 'AF7E   3@6 5 H  (F:7DE   $   ) 

H3>G3F;A@ 3@6 JB>AD3F;A@ EE7FE -:7 DA>>8ADI3D6 3@3>KE;E A8
7JB>AD3F;A@ 3@6 7H3>G3F;A@ 3EE7FE 8A>>AIE    4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $   )  66;F;A@E   -D3@E87DE
FA
8;@3@5;3>
3EE7FE ;@F3@9;4>7
3EE7FE    3>3@57 3F 7@6 A8 K73D $  ) 

104 JB>AD3F;A@ 3@6 7H3>G3F;A@ 3EE7FE D7BD7E7@F 7JB7@6;FGD7E
F:3FI7D7 53B;F3>;L76 43E76
A@  ?3@397?7@FNE D7E7DH7E ;@
F:7 BDA<75F
3D73E E
A8
757?47D

 
F:7
7JB>AD3F;A@ 3@6 7H3>G3F;A@ 3EE7FE
B7DF3;@
FA
F:7 8A>>AI;@9
BDA<75F
3D73E

)DA<75F D73    4 /22/549 343>;3@ ,AGF:7D@
%7KF7 $ ) &;@63@3A   ">A5AE
'ADF7   3G;@ ,AGF:7D@ '79DAE  Q ">A5AE
'ADF7  Q 35&3@ -3@3IA@ H  'ADF:7D@ '79DAE H  (F:7D
3D73E   $  ) 

"@
  F:7 7JB>AD3F;A@ BDA<75FE ;@
'ADF:7D@
'79DAE
3@6 35?3@ -3@3IA@
BDA<75FE
3D753DD;76 3F @;> E;@57
F:7
355G?G>3F76 5AEFE
:3H7
477@
FD3@E87DD76
3@6 D75>3EE;8;76
FA
O"@F3@9;4>7 3EE7FEP
355AG@F E77 'AF7  5A@E;EF7@FI;F:NE
355AG@F;@9 BA>;5K 8AD 67H7>AB?7@F
BDA<75FE

)D7B3;6 JB7@E7E "@
  BD7B3;6
7JB7@E7E
B7DF3;@ ?3;@>K
FA
F:7
 36H3@57 B3K?7@FE ?367 4K  FA $3@7?3FEG ADBAD3F;A@ 8AD
F:7
5A@EFDG5F;A@ A8
BAI7D B>3@F 8AD
'ADF:7D@'79DAE )DA<75F

+AK3>FK 77E -:7 DAK3>FK 877E 5:3D9734>7
FA
') B7DF3;@ FA
F:7 G@B3;6 DAK3>FK 877E E77
'AF7 5 8AD
F:7
)3>;@B;@A@ )DA<75F

.@67D
F:7 ,, I;F:
') ') E:AG>67DE
F:7 DAK3>FK 877 8AD
F:;E
BDA<75F .BA@ B3K?7@F A8
F:7
DAK3>FK 877 4K 
FA
( 3@6 %A53> AH7D@?7@F
.@;FE % .
F:7
6787DD76 DAK3>FK 877 I;>>
47
367 8DA?
')

)D7B3;6 &3;L34>7 BADF;A@
A8
F:7 (& 877EEB75;8;53>>K 8AD
F:7 ,F3 +;F3 3@6 ,3@
%AD7@LA)AI7D )>3@FE E5:76G>76 ?3;@F7@3@57
AGF397E -:75AEF
A8
F:7 ?3> 47 ;@5>G676 3E 5AEF
A8
F:7
O)DAB7DFK B>3@F 3@6 7CG;B?7@FP
355AG@FI:7@ EG5: ;F7?E
3D7;EEG76

 ;.:? $.E./82

7F3;>E
A8
F:;E
355AG@F 3E
A8
757?47D

  3@6   3D7
3E 8A>>AIE

   4 /22/549 D;697 >A3@E E77
'AF7
 $H )  ,:ADF F7D? >A3@E E77 'AF7
    $ ) 

(@
'AH7?47D

  ;DEF 7@ E;9@76 F:7 35;>;FK 9D77?7@F F:7 OD;697 %A3@E 9D77?7@FP
47FI77@ 3>KA@ ,  ADBAD3F7 3@6 "@H7EF?7@F 3@= 3>KA@ F:7 O 35;>;FK 97@FP ,F3@63D6
:3DF7D76 3@= , 3@6 -:7 3@=
A8 -A=KA &;FEG4;E:;
. # %F6 (-& 5A>>75F;H7>KD787DD76 FA
3E
F:7 OD;697
%A3@E %7@67DEP 8AD
3@
399D793F7
3?AG@F
A8 )  ?;>>;A@   ?;>>;A@ -:7 3H3;>76 835;>;FK A@ F:7 D;697 %A3@E F:7 OD;697
%A3@E 35;>;FKP I3E
GE76 FA8G@6 F:7 )3D7@F A?B3@KNE 877E 5AEFE
3@6
7JB7@E7E ;@5GDD76 ;@ 5A@@75F;A@ I;F: F:7
35CG;E;F;A@
A8  -:7 H3;>34;>;FK )7D;A6 A8
F:7 D;697 %A3@E 35;>;FK 5A??7@576 8DA?
F:7
63F7A8
F:7
D;697
%A3@E 9D77?7@F
G@F;> &3K    F:7 OH3;>34;>;FK )7D;A6P -:7 D;697 %A3@E 35;>;FK I;>> ?3FGD7

63KE 8DA?
F:7
63F7A89D77?7@F -:7D3F7
A8 ;@F7D7EF A@
F:7 >A3@ ;E 43E76 A@ %A@6A@ "@F7D43@= (887D76
+3F7
%"(+
B>GE 3@ 39D776 ?3D9;@ ;DEF 7@ ?3KE7>75F 3@ ;@F7D7EF B7D;A6 A8
A@7
FIA F:D77
ADE;J ?A@F:E ;DEF 7@ ;ED7CG;D76
FA
B3KFA
F:7 35;>;FK 97@F 8AD
F:7
355AG@F
A8
735: >7@67D35A??;F?7@F 877 5A?BGF76 3F
F:7
D3F7
A8
  B7D 3@@G?
43E76
A@
735:

105 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

D;697 %A3@E %7@67DNE 3H3;>34>7 5A??;F?7@F 8AD
F:7
H3;>34;>;FK )7D;A6 -:7 5A??;F?7@F 877
355DG7E EF3DF;@9 F:7 EF 63K 8DA?
F:7
7J75GF;A@ A8
F:7 9D77?7@F -:7 >A3@ I3E 8G>>K 6D3I@
A@ 'AH7?47D

 

'A 5A??;F?7@F 877E
I7D7 B3;6

"@
  F:7 67F3;>E
A8
F:7 D;697 %A3@ 9D77?7@F
3D73E 8A>>AIE

'3?7
A8
%7@67D "@ -:AGE3@6E 3>KA@  ,  (-&    

EE7F 8ADF:;@
F:7 D;697 %A3@E 9D77?7@F ;DEF 7@ ;E
A4>;93F76
FA
B7D8AD?57DF3;@ 8;@3@5;3> 5AH7@3@FE I;F: D7EB75F
FA
3?A@9
AF:7DE ?3;@F7@3@57 A8 EB75;8;76 674F FA 7CG;FK 3@6 ;@F7D7EF 5AH7D397 D3F;AE ?3;@F7@3@57 A8
BDAB7DFK 5A?B>;3@57 I;F:>3IE DG>7E 3@6 D79G>3F;A@E AD67DE
ADID;FE
FA I:;5: ;F ?3K
47 EG4<75F
@793F;H7
B>7697E 3@6 B3K?7@F
A8
F3J7E "@ 366;F;A@ ;DEF 7@ ;ED7EFD;5F76
FA
675>3D7
AD B3K 6;H;67@6E 6GD;@9 3
783G>F AD
3@ H7@F A8
783G>F 3E
678;@76 ;@ F:7 9D77?7@F
AD ;8 EG5:
B3K?7@FIAG>6 D7EG>F ;@ 783G>F AD
3@ H7@F
A8
783G>F -:7 D;697 %A3@ I3E 8G>>KE7FF>76 A@ 'AH7?47D

 

;DEF 7@NE E:ADF F7D? >A3@E 5A@E;EF
A8
G@E75GD76 E:ADF F7D?
. ,
A>>3D 67@A?;@3F76 >A3@E
3?AG@F;@9 FA)  4;>>;A@   ?;>>;A@
3@6 ):;>;BB;@7 )7EA 67@A?;@3F76 >A3@E
3?AG@F;@9
FA)  4;>>;A@   ?;>>;A@ ;@  
3@6
. , A>>3D 67@A?;@3F76 >A3@E 3?AG@F;@9 )  4;>>;A@  ?;>>;A@
3@6 ):;>;BB;@7 )7EA 67@A?;@3F76 >A3@E 3?AG@F;@9
FA)  4;>>;A@   ?;>>;A@ ;@
  I:;5: I7D7
A4F3;@76 8DA? >A53> 43@=E -:7E7 >A3@E 473D 3@@G3> ;@F7D7EF D3@9;@9 8DA?
  FA   ;@
  3@6
  
FA
  ;@  

(@ ,7BF7?47D
   )D;?7 -7DD35AF3
3>EA3H3;>76 G@E75GD76 E:ADF
F7D? ):;>;BB;@7 )7EA 67@A?;@3F76 >A3@E
3?AG@F;@9 FA)  4;>>;A@   ?;>>;A@ 8DA? ):;>;BB;@7 A??7D5;3>
3B;F3>
"@5 )" -:7 3H3;>76 >A3@E
A8 )D;?7 -7DD35AF3
I7D7
GE76
FA8G@6
F:7 877E 5AEFE 3@6
7JB7@E7E ;@5GDD76 ;@ 5A@@75F;A@ I;F:
F:7  35CG;E;F;A@ -:7 >A3@ 39D77?7@FE I;>> ?3FGD7

63KE 8DA?
F:7
63F7A8
F:7
39D77?7@F -:7;@F7D7EF D3F7;E 43E76 A@ ):;>;BB;@7 73>;@9
3@6 J5:3@97
ADB )1 B>GE
3@
39D776 ?3D9;@ -:7
355DG76 ;@F7D7EF ;E
B3K34>7 A@ F:7 ?3FGD;FK
63F7A8>A3@E

 3H3;>76 F:7 ) 4;>>;A@   ?;>>;A@ E:ADF F7D? >A3@ A4F3;@76 8DA?
3
>A53>
43@=
FA
3G9?7@F IAD=;@9 53B;F3> D7CG;D7?7@FE -:;E >A3@ 473DE 38>A3F;@9 ;@F7D7EF D3F7
43E76 A@
 ?A@F: ):;>;BB;@7 73>;@9 ,KEF7? -D73EGDK
+787D7@57
+3F7
B>GE EBD736 A8
 

 (>.12 $.E./82?
.:1 #@52>
A>>2:@ 6./686@62?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 -D367
B3K34>7E $ )  55DG3>E 8AD "@F7D7EF 3@68;@3@5;@95AEFE     )D7?;G?
A@
D3@97
4A@GE 8ADI3D6E  Q ,3>3D;7E 3@6 4A@GE7E   A@EFDG5F;A@ 5AEFE  Q (F:7DE       ,:3D7;@5GDD7@F >;34;>;FK A8 #A;@F /7@FGD7 E77
'AF7      -DGEF D757;BFE
B3K34>7   G7 FA5A@FD35FADE 3@6 5A@EG>F3@FE   (F:7DE      $   ) 

106 -D367
B3K34>7E
3D7 97@7D3>>K A@  FA

63KE 5D76;F B3K?7@F B7D;A6

-D367
B3K34>7E ;@5>G67 NE D75A9@;F;A@ A8
(NE ;@;F;3> D7H3>;63F;A@
A8 ;FE 3EE7EE?7@F
3?AG@F;@9 FA )  ?;>>;A@   ?;>>;A@
I:;5: D7BD7E7@FE DAK3>FK 877E 8AD
F:7
B7D;A6
 FA  D7>3F;H7 FANE , 8AD
F:7 ,AGF:7D@
'79DAE 7AF:7D?3> )DA6G5F;A@ ;7>6

55DG76 ;@F7D7EF 3@6 8;@3@5;@9 5AEFE 5A?BD;E7 ?3;@>K A8
G@E7FF>76 9G3D3@F77 877E
A@ >A@9 F7D? >A3@E
A8  43E76 A@ F:7 D7CG;D7?7@FE E7F 4K
(
BD;AD
FA NE 8G>>
BD;H3F;L3F;A@

-:7 )  ?;>>;A@   ?;>>;A@
355DG76 BD7?;G?
A@
D3@97 4A@GE 8ADI3D6ED7BD7E7@FE
F:7
FAF3> BD7?;G? 6G7 FA5AG@F7DB3DFK 7H7DK F;?7
F:7
EBAFD3F7A8
F:7
#3B3@7E727@I3E
FD3676 AGFE;67 F:7 355G?G>3F;A@ D3@97E 678;@76 ;@
F:7 FIA
:769;@9 5A@FD35FE
F:3F 5AH7D
F:7 K7@ 6A>>3DHA>3F;>;FK D;E=
A8
F:7
#)2 4;>>;A@ AGF A8
F:7
#)2 4;>>;A@ &;K3L3I3
>A3@E77 'AF7E  3@6 

-DGEF D757;BFE
B3K34>7 B7DF3;@EFA;@H7@FAD;7ED7>73E76
FA
)!"% ;@
FDGEF 8AD
F:7 43@= )!"% ;E 355AG@F34>7
FA
F:7 43@= 8AD
F:7 ;F7?E
7@FDGEF76
ADF:7 BDA5776E 97@7D3F76 8DA? F:7 E3>7
A8
F:7E7 ;@H7@FAD;7EG@F;> EG5: F;?7
F:3F
F:7
3?AG@F 8;@3@576
4K
F:7 43@= ;E
B3;6 4K )!"% -DGEF D757;BF B3K34>7 473DE
3@ 3@@G3> ;@F7D7EF D3@9;@9 8DA?
 
FA
 
3@6   
FA
  ;@  
3@6
  D7EB75F;H7>K )!"%
:3E A?@;4GE >;@7 3@6 6A?7EF;5
4;>>E
BGD5:3E7>;@7I;F:>A53>
43@=E ;@
  3?AG@F;@9 FA) ?;>>;A@
3@6 ) ?;>>;A@ D7EB75F;H7>K   ) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K

 ;:1? $.E./82

7F3;>E
A8
4A@6E
B3K34>7
3D7
3E 8A>>AIE

   4 /22/549 A@H7DF;4>7 A@6E $   )Q ):;>;BB;@7 )7EA 67@A?;@3F76 A@6E    $   ) 

A@H7DF;4>7 A@6E  (@ 74DG3DK    OF:7
"@57BF;A@
3F7P ;DEF 7@ ;EEG76 3
 ?;>>;A@ . ,
A>>3D 67@A?;@3F76  6G7A@ 74DG3DK 
  I;F:35AGBA@ D3F7
A8
   -:7 E
3D7>;EF76 A@
F:7 ,;@93BAD7 J5:3@97 ,75GD;F;7E -D36;@9
%;?;F76 , 1 ,- -:7
E
3D7
FD3676 ;@ 3 ?;@;?G?
4A3D6>AFE;L7
A8
  ?;>>;A@ -:7
 5A@EF;FGF7 F:7 6;D75F G@EG4AD6;@3F76 3@6 G@E75GD76
A4>;93F;A@E A8 ;DEF 7@

D3@=;@9 6'8/ 6'99; ;@ D;9:F
A8
B3K?7@FI;F:3>>
AF:7DG@E75GD76
3@6 G@EG4AD6;@3F76 674F
A8 ;DEF 7@

35: 4A@6 I;>>
47
5A@H7DF;4>7 3F
F:7 ABF;A@
A8
F:7
:A>67D ;@FA8G>>K B3;6 E:3D7E A8 5A??A@ EFA5=
A8 ;DEF 7@
3F 3@ ;@;F;3> 5A@H7DE;A@
BD;57
A8 )  B7DE:3D7 I;F:
3
8;J76 7J5:3@97 D3F7
A8
., FA)  EG4<75F
FA
3667D
3F
3@KF;?7
A@
3@6
38F7D &3D5:

  GB FA
 B?
A@
#3@G3DK    -:7 
3@6
F:7 E:3D7EFA47;EEG76 GBA@ 5A@H7DE;A@ A8
F:7

:3H7@AF 477@
3@6 I;>>
@AF
47 D79;EF7D76
G@67D
F:7
. , ,75GD;F;7E 5F
A8

3E 3?7@676 3@6 EG4<75FFA57DF3;@
7J57BF;A@E ?3K @AF 47
A887D76
ADEA>6 I;F:;@
. , ;DEF 7@ ?3K 3>EA D7677?
F:7

A@
AD
38F7D 74DG3DK 
  ;@ I:A>7
4GF
@AF ;@
B3DF 3FF:7 73D>KD767?BF;A@
3?AG@F ;8 F:7 5>AE;@9
BD;57 A8
F:7
E:3D7E 8AD
3@K 
FD36;@9 63KE AGF
A8
F:7
 5A@E75GF;H7
FD36;@9 63KE BD;ADFA
F:7 63F7 GBA@ I:;5: F:7 @AF;57 A8 EG5: D767?BF;A@ ;E 9;H7@
I3E
3F >73EF
 
A8
F:7
5A@H7DE;A@
BD;57 ;@ 78875F A8 EG5:
FD36;@9 63K AD
3F
3@KF;?7
BD;AD
FA?3FGD;FK ;@I:A>7 4GF @AF ;@ B3DF
3F
F:7 73D>KD767?BF;A@ 3?AG@F ;8>7EE
F:3@  
A8
F:7 399D793F7
BD;@5;B3> 3?AG@F A8
F:7

AD;9;@3>>K ;EEG76 3F7 F:7@ AGFEF3@6;@9 -:7 A@6:A>67DE
3D7
3>EA
9;H7@
3
D;9:F
FA D7CG;D7 ;DEF 7@
FA
D7677?
F:7

3
3F
F:7
73D>K D767?BF;A@
3?AG@F A@ 74DG3DK    -:7
7CG;FK 5A@H7DE;A@ 53>>
3@6
BGF
ABF;A@ 873FGD7E
A8
F:7  3D7;67@F;8;76 3E
7?476676
67D;H3F;H7E
3@6
3D7 E7B3D3F76 8DA?
F:7
:AEF 5A@FD35F E77
'AF7
 -:7 399D793F783;DH3>G7
A8
F:7 AGFEF3@6;@9
7?476676 67D;H3F;H7E ;E   ?;>>;A@
3E A8
757?47D

 

107 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

F ;@57BF;A@
F:7 :AEF 5A@FD35F ;ED75AD676
@7F
A8
674F ;EEG3@57 5AEF
3?AG@F;@9
FA) ?;>>;A@   ?;>>;A@ 3@6 4;8GD53F76 7?476676 67D;H3F;H7E
A8 )  ?;>>;A@  ?;>>;A@ E A8
757?47D

  F:7 53DDK;@9
3?AG@F
A8
F:7 :AEF 5A@FD35F 3?AG@FE
FA)  ?;>>;A@   ?;>>;A@ -:7 ?AH7?7@F
A8
F:7
355AG@F ;E
3E 8A>>AIE

?AG@F 4 /22/549 3DDK;@9
3?AG@F 3F ;@57BF;A@
63F7)  55D7F;A@
6GD;@9 F:7 K73D 5:3D976
FA
8;@3@57 5AEFE E77
'AF7
  AD7;9@
7J5:3@97 36

"@
  ?AH7?7@FE
A8
674F ;EEG3@57 5AEFE B7DF3;@;@9 FA
F:7

3D73E 8A>>AIE

?AG@F 4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D ) 55D7F;A@
6GD;@9 F:7 K73D 5:3D976
FA
8;@3@57 5AEFE E77
'AF7
  AD7;9@
7J5:3@97 363@57 3F 7@6 A8 K73D )

):;>;BB;@7 )7EA 67@A?;@3F76 A@6E (@ #G@7    ;DEF 7@ ;EEG76 )
4;>>;A@ 7CG;H3>7@F
3?AG@F ;@
. , A>>3D
A8
 
?;>>;A@ ):;>;BB;@7 )7EA 67@A?;@3F76 ;J76 D3F7 A@6E )7EA A@6E
6G7A@#G>K 
  I;F:
3
5AGBA@ D3F7
A8   -:7
78875F;H7;@F7D7EF D3F7
A8
F:7 )7EA A@6E ;E
  "@F7D7EF ;E B3K34>7 E7?; 3@@G3>>K -:7 )7EA A@6E 5A@EF;FGF7 F:7 6;D75F G@5A@6;F;A@3>
G@E75GD76 3@6 97@7D3> A4>;93F;A@E
A8 ;DEF 7@ -:7 BDA5776E 8DA?
F:7
)7EAA@6E
3D7;@F7@676 FA
47
GE76 8AD
97@7D3> 5ADBAD3F7BGDBAE7E ;@5>G6;@9 IAD=;@9 53B;F3> 3@6 ;@H7EF?7@FE -:7 )7EAA@6E ?3K 47 D7677?76
3F
F:7
ABF;A@
A8 ;DEF 7@
38F7D
F:D77 K73DE 8DA? ;EEG7
63F7
AD ;8
B3K?7@FE
G@67D
F:7 )7EA A@6E 475A?7 EG4<75F
FA
366;F;A@3>
AD ;@5D73E76
F3J7E
3E 3 D7EG>F A8 57DF3;@ 5:3@97E ;@ >3I

EE7F 8ADF:;@
F:7 -DGEF 9D77?7@F ;@ 5A@@75F;A@ I;F: F:7 ;EEG3@57
A8
F:7 )7EAA@6E ;DEF 7@ ;E A4>;93F76 FAB7D8AD?57DF3;@ 5AH7@3@FE I;F: D7EB75FFA 3?A@9
AF:7DE ?3;@F7@3@57
A8 EB75;8;76 674F FA 7CG;FK 3@6 ?;@;?G?
674F E7DH;57 5AH7D397 D3F;AE6;EBAE;F;A@
A8 3>> ADEG4EF3@F;3>>K
3>>
A8 ;FE
3EE7FE ?3;@F7@3@57 A8 AI@7DE:;B ?3@397?7@F 5A@FDA> 7@5G?4D3@57E
3@6
B3K?7@F A8
F3J7E

"@ 366;F;A@ ;DEF 7@ ;ED7EFD;5F76
FA
675>3D7AD
B3K 6;H;67@6E AF:7D
F:3@ EFA5=
6;H;67@6
6GD;@93@H7@F A8
783G>F 3E 678;@76 ;@
F:7 -DGEF 9D77?7@F
AD ;8 EG5:
B3K?7@FIAG>6 D7EG>F ;@
3@ H7@F
A8 783G>FI;F:AGF F:7 BD;AD ID;FF7@ 5A@E7@F
A8 A@6:A>67DE D7BD7E7@F;@9
3F >73EF 
A8
F:7 399D793F7
AGFEF3@6;@9
BD;@5;B3>
3?AG@F A8
F:7
)7EA A@6E E
A8 757?47D

  ;DEF 7@ ;E ;@ 5A?B>;3@57 I;F: F:7 8AD79A;@9 5AH7@3@FE

E
A8
757?47D

 
3@6  
F:7
G@3?ADF;L76
674F ;EEG3@57 5AEFE ;@5GDD76 ;@ 5A@@75F;A@ I;F:
F:7 ;EEG3@57
A8
F:7 )7EA A@6E
3?AG@F76
FA) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K 3@6
3D7676G5F76 393;@EF
F:7 )7EA A@6E
B3K34>7

&AH7?7@FE
A8
674F
;EEG3@57 5AEFE
B7DF3;@;@9 FA F:7 )7EA A@6E
3D73E 8A>>AIE

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $ ) 55D7F;A@
6GD;@9 F:7 K73D 5:3D976
FA;@F7D7EF 7JB7@E7E77
'AF7
    AD7;9@
7J5:3@97 363@57 3F 7@6 A8 K73D $ )

108  ;:4@2>9
2/@

-:7
67F3;>E
A8
F:7 >A@9 F7D?
674F
@7F
A8
674F ;EEG3@57 5AEFE
3D7
3E 8A>>AIE

  
E
D7EF3F76

E77 'AF7 A>>2:@ ;:4@2>9 GDD7@F %A@9 F7D? $;>@6;: $;>@6;: (;@.8 )ADF;A@ )ADF;A@ -AF3> 4 /22/549  $  $  $   )   )   )   )           )!            +76 /G>53@  H  \     )! G@6      \     )           !
"@F7D@3F;A@3>           &'- HHH     (F:7DE  \\\ $  $  $ )   )  ) 



NE 8AD7;9@ 5GDD7@5K 67@A?;@3F76 >A@9 F7D?
674FI3E
FD3@E>3F76 ;@FA ):;>;BB;@7 B7EAE
43E76
A@ F:7 BD7H3;>;@9 8AD7;9@
7J5:3@97 D3F7
3F
757?47D
  
A8
.,#)2  3@6 .,  3@6 3F 757?47D

 
A8 .,#)R 
3@6
.,) 

-:7
67F3;>E
A8 NE >A@9 F7D?
674F
3D7
3E 8A>>AIE

      $5686<<6:2 =A6B.82:@ ):;>;BB;@7 CG;H3>7@F $2?; ) ' ;88.> )7EA . , A>>3D D76;FAD )DA<75F &3FGD;F;7E "@F7D7EF +3F7E .8.:02? .8.:02? 3>3@57E 3>3@57E 35;4:9 /4 /22/549 :@2>:.@6;:.8 .:7 3;> &20;:?@>A0@6;: .:1 2B28;<92:@ &  )! 35&3@ 7AF:7D?3> )AI7D )>3@F  ?;>>;A@ 
FA   T A8  AH7D 5AEF A8 CG3>;8;76 4ADDAI;@9E $HH)   )! @7D9K ,75FAD %A3@  ?;>>;A@ 
FA   T A8  AH7D 5AEF A8 CG3>;8;76 4ADDAI;@9E       )! 7AF:7D?3> JB>AD3F;A@ )DA<75F  ?;>>;A@ 
FA   T A8  AH7D 5AEF A8 CG3>;8;76 4ADDAI;@9E        )! 7AF:7D?3> JB>AD3F;A@ )DA<75F  ?;>>;A@ 
FA   T A8  AH7D 5AEF R  4;>>;A@ 
FA   A8 CG3>;8;76     4ADDAI;@9E        #B2>?2.? 0;:;960 ;;<2>.@6;: A:1 # F: 27@ -A@9A@3@ " 7AF:7D?3> )AI7D )>3@F E:3D7 ;@ ( ') >A3@ R  4;>>;A@ 
FA         R  4;>>;A@ +7EFDG5FGD76      F: 27@ )3>;@B;@A@
" 7AF:7D?3> )AI7D )>3@F R  4;>>;A@ 
FA        F: 27@ )3>;@B;@A@
" 7AF:7D?3> )AI7D )>3@F R 4;>>;A@ 
FA        F: 27@ )3>;@B;@A@
"" 7AF:7D?3> )AI7D )>3@F R  ?;>>;A@  
FA     H  Q F: 27@ &F %34A 7AF:7D?3> )DA<75F R  4;>>;A@  
FA        EF 27@ 'ADF:7D@'79DAE 7AF:7D?3> )DA<75F R  4;>>;A@ A8 I:;5: R  4;>>;A@ I3E 6D3I@ ;@    
FA          

109 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

      $5686<<6:2 =A6B.82:@ ):;>;BB;@7 CG;H3>7@F $2?; ) ' ;88.> )7EA . , A>>3D D76;FAD )DA<75F &3FGD;F;7E "@F7D7EF +3F7E .8.:02? .8.:02? 3>3@57E 3>3@57E 35;4:9 /4 /22/549 ".@6;:.8 ;B2>:92:@ )"+ F:AGE3@6 
FA   273D  S  S  U Q S Q T $HH) Q !6E.F.C.  R  4;>>;A@ -D3@5:7       I  4;>>;A@ #G@7    -D3@5:7    %"(+      !6E.F.C.
 R 4;>>;A@ #G@7             .:1 .:7 )  ;>>;A@ #G@7    H7D397  63K - ;>>   HH          %7EE 5GDD7@F BADF;A@        $   $   

-:7 )"+ A@6ED7BD7E7@F 5A@H7DF76 AGFEF3@6;@9 "# %A3@E 7CG;H3>7@FFA   ?;>>;A@ FA
+() 4A@6E ;@ 3 &( 63F76
'AH7?47D
  -:7
+() 4A@6E 53DDK ;@F7D7EF D3F7
A8
  B7D
3@@G?
B3K34>7 E7?; 3@@G3>>KI;F:4G>>7F BD;@5;B3>
B3K?7@F ;@    53E: 5A>>3F7D3>
3?AG@F;@9 FA
  ?;>>;A@
3E 67BAE;F76 I;F: F:7 ,) 3E
B3DF A8
F:7 39D77?7@F
3@6 I;>>
47 D7FGD@76 FAI;F:AGF ;@F7D7EF
GBA@ 8G>> E7FF>7?7@F
A8 F:7 )"+ A@6E

)
3@6 ) %A@9 F7D?
674F
5A@E;EFE
A8
. , 6A>>3D 67@A?;@3F76 4ADDAI;@9E
A8 ) 3@6 )
3H3;>76 8DA? H3D;AGE >7@67DE
FA
B3DF>K 8;@3@57
F:7 5A@EFDG5F;A@
A8
F:7;D BAI7D
B>3@F 5A?B>7J7E

!

35;>;FK (GFEF3@6;@9
3>3@57 '3FGD7 +7B3K?7@F ,5:76G>7 ?AG@F    4 /22/549 AH7D76
8AD7;9@
5GDD7@5K +7B3K?7@F
FA 47 ?367 ;@ ., $    )Q Q 67@A?;@3F76 >A3@E B3K34>7
FA H3D;AGE
E7?; 3@@G3> 8AD7;9@
8;@3@5;@9 ;@EF;FGF;A@E ;@EF3>>?7@FE 8DA?   I;F: 3@@G3> ;@F7D7EF 3FE;J GB
FA   ?A@F:E %"(+ B>GE   ?3D9;@ 3@6 BA>;F;53> D;E= .@5AH7D76
8AD7;9@
5GDD7@5K +7B3K?7@F
FA 47 ?367 ;@ ., $   )Q Q 67@A?;@3F76 >A3@E B3K34>7
FA H3D;AGE
E7?; 3@@G3> 8AD7;9@
8;@3@5;@9 ;@EF;FGF;A@E ;@EF3>>?7@FE 8DA?   I;F: 3@@G3> ;@F7D7EF 3FE;J GB
FA   ?A@F:E %"(+ B>GE ?3D9;@ A8    A@
F:7
EF
FA
F: K73D   A@
F:7
F: FA
F: K73D 3@6    A@
F:7
EG55776;@9 K73DE AD7;9@
5GDD7@5K 67@A?;@3F76 35= 7@676 3@6 3@@G;FK
EFK>7 .,       >A3@E B3K34>7
FA
8AD7;9@ D7B3K?7@FFA 47 ?367 ;@ 8;@3@5;@9 ;@EF;FGF;A@E 3FH3D;AGE H3D;AGE
E7?; 3@@G3> ;@F7D7EF D3F7ED3@9;@9 8DA? ;@EF3>>?7@FE 8DA?     FA   GB
FA   .,
)D;H3F7 )>357?7@FE I;F: +7B3K?7@F
FA 47 ?367 ;@ ., HH   3@@G3> ;@F7D7EF 43E76 A@ F:7 H3D;AGE
E7?; 3@@G3> 3BB>;534>7 FD73EGDK K;7>6 B>GE ;@EF3>>?7@FE 8DA?     GB
FA  

AD7;9@ GDD7@5K 7BAE;F .@;F 35= 7@676 D7B3K?7@FFA47 ., HHQQ  . >A3@E B3K34>7
FA>A53> ?367 ;@  G@7CG3>
E7?; 43@=EI;F: 3@@G3> ;@F7D7EF 3F 3@@G3> ;@EF3>>?7@FE
8DA? %"(+ B>GE     GB
FA        %7EE
5GDD7@F BADF;A@      %A@9 F7D?BADF;A@ $   )   

110 (@
'AH7?47D

  O+78;@3@5;@9 3F7P ) :3E
7@F7D76 ;@FA
3 3@= 35;>;FK 9D77?7@F 5AH7D;@9 3
., ?;>>;A@
F7D? >A3@ 835;>;FK I;F:@;@78AD7;9@ 43@=E
@3?7>K -:7 3@=
A8
-A=KA &;FEG4;E:;
. # %F6 3>KA@ $80
")1 3@= &!
"' 3@=
' / ,;@93BAD7D3@5: 3K7D;E5:7 !KBA .@6 /7D7;@E43@=  !A@9 $A@9 D3@5: &3>3K3@ 3@=;@9 7D:36 ,F3@63D6:3DF7D76 3@= ,A5;VFV V@VD3>7 ,;@93BAD7D3@5:
3@6 $D76;F3@EF3>F XD 0;767D3G843G $80
FA
D78;@3@57
F:7 ,3@F3+;F3 BDA<75F -:7
F7D? >A3@ ;E 4DA=7@
6AI@;@FA
F:D77 E7B3D3F7 835;>;F;7E
@3?7>K;
3
 ?;>>;A@
AH7D76 35;>;FK I;F: BA>;F;53> D;E=;@EGD3@57 3@6 I;F:
3
F7@AD A8

T K73DE ;; 3  ?;>>;A@ .@5AH7D76 35;>;FK I;F:3 K73D
F7@AD 3@6 ;;;
F:7 7J;EF;@9  ?;>>;A@ F7D? >A3@
BDAH;676
4K $80 I;F:3
F7D?
G@F;> 'AH7?47D
 
BADF;A@ A8
F:7
BDA5776E
A8
F:7
F7D? >A3@ I3E
GE76
FA D7B3K AGFEF3@6;@9 >A3@E
A8 )
3?AG@F;@9 FA
 ?;>>;A@ 3@6
F:7 D7?3;@;@9 43>3@57 I3EF3=7@
GB
3E 6H3@57EFA E:3D7:A>67DE E77
'AF7   I:;5: 3D7;@F7D7EF 473D;@9

0;F: D7EB75F
FA
F:7
AH7D76 35;>;FK F:7 ;@F7D7EF D3F7;E 5A?BGF76 E7?; 3@@G3>>K 7H7DK &3K 3@6 'AH7?47D
GE;@9 %"(+ B>GE
 43E;E BA;@FE -:;E 835;>;FK ;E 5AH7D76 4K
3)A>;F;53>
+;E=
"@EGD3@57 )+" 3@6 BD7?;G?E
B3K34>7 A@ F:7 )+"
3D7;@
366;F;A@
FA
F:7 ?3D9;@E
B3K34>7
4K ) -:7
AH7D76 35;>;FK I;>> ?3FGD7
A@ &3K   

E
FA
F:7 .@5AH7D76 35;>;FK
F:7 ;@F7D7EF D3F7;E
3>EA 5A?BGF76 E7?; 3@@G3>>K 7H7DK &3K 3@6
'AH7?47D GE;@9 %"(+ B>GE ;   
B7D 3@@G?8DA?
F:7
8;@3@5;3> 5>AE7 G@F;> F:7
F: 3@@;H7DE3DK A8
F:7
+78;@3@5;@9 3F7 ;;   B7D 3@@G?8DA?
F:7
F:
G@F;>
F:7
F: 3@@;H7DE3DK
A8
F:7
+78;@3@5;@9 3F7 3@6 ;;;
   B7D
3@@G?
8DA?
F:7
F: 3@@;H7DE3DK A8
F:7
+78;@3@5;@9 3F7 G@F;> F:7 8;@3> ?3FGD;FK 63F7 I:;5: ;E A@ 'AH7?47D

 

!

35;>;FK (GFEF3@6;@9 3>3@57 '3FGD7 +7B3K?7@F ,5:76G>7 ?AG@F    4 /22/549 !+&, AH7D76 35;>;FK +7B3K?7@F
FA47?367
;@ ., $   )   9D77?7@FI;F: 3@@G3>  7CG3> E7?; 3@@G3> ;@F7D7EF 3F 5A??7D5;3> ;@EF3>>?7@FE 8DA?   ;@F7D7EF
D787D7@57
D3F7A8 GB
FA     A??7D5;3> %A3@ D76;F +7B3K?7@F
FA47?367
;@ .,        35;>;FK 9D77?7@F  7CG3> E7?; 3@@G3> I;F:
;@F7D7EF 3F  ?A@F:
FA ;@EF3>>?7@FE 8DA?   ?A@F: %"(+ B>GE   GB
FA   $ AH7D76 35;>;FK +7B3K?7@F
FA47?367
;@ .,       9D77?7@FI;F: 3@@G3>  7CG3> E7?; 3@@G3> ;@F7D7EF 3F  ?A@F: %"(+ ;@EF3>>?7@FE 8DA?   B>GE   I;F:ABF;A@
FA GB
FA   5A@H7DF
;@FA
8;J76
;@F7D7EF D3F7
>A3@      %7EE 5GDD7@F BADF;A@       %A@9 F7D?BADF;A@ $     

)
:3E 3H3;>34>7 G@6D3I@5A??;FF76 5D76;F 835;>;FK 3?AG@F;@9
FA
 ?;>>;A@ 8DA? ;FE
+7HA>H;@9 D76;F 0AD=;@9
3B;F3> + 0 35;>;FK I:;5: I3E 3H3;>34>7 G@F;> &3D5:   .BA@ F:7 7JB;D3F;A@
A8 3H3;>34;>;FK B7D;A6 A8
F:7
G@6D3I@ 835;>;FK
F:7 6787DD76 674F ;EEG3@57 5AEFE
3?AG@F;@9
FA)  ?;>>;A@   ?;>>;A@ 8AD ) :3E 477@ ID;FF7@ A88
393;@EF F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 ;@
  >> 5A@6;F;A@E
BD75767@FFA
F:7E7
4ADDAI;@9E :36 477@ ?7F


9G3D3@F77 877 FA
3
57DF3;@ 835;>;FK ;E
3>EA D7CG;D76
FA 47 B3;6
FA
F:7 9G3D3@FADE
3F
F:7
D3F7
A8
 
3 K73D A@
F:7 AGFEF3@6;@9
BD;@5;B3>
3?AG@F
B3K34>7 E7?; 3@@G3>>K A@ 735: ;@F7D7EF
B3K?7@F 63F7E

E
A8
757?47D

 
3@6  
F:7
G@3?ADF;L76
674F ;EEG3@57 5AEFE ;@5GDD76 ;@ 5A@@75F;A@ I;F: )
3@6 )NE >A@9 F7D?
674F
3?AG@F;@9 FA)  ?;>>;A@   ?;>>;A@ 3@6 ) ?;>>;A@   ?;>>;A@ D7EB75F;H7>K I7D7 676G5F76 393;@EF
F:7 >A@9 F7D?
674F

111 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7 ?AH7?7@FE
A8
F:7
674F ;EEG3@57 5AEFE
3D7
3E 8A>>AIE

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $ ) 74F ;EEG3@57 5AEFE D7>3F76
FA
F:7 @7I >A3@E 3H3;>76
4K ) 6GD;@9
F:7 K73D   55D7F;A@ 5:3D976
FA;@F7D7EF
7JB7@E7      AD7;9@
7J5:3@97 363@57 3F 7@6 A8 K73D $   )

-:7
A??A@ -7D?E 9D77?7@FD7>3F76
FA
F:7 7J;EF;@9 ) 3@6 ) 8;@3@5;@9 835;>;FK 39D77?7@FE 5A@F3;@ 5AH7@3@FE 5A@57D@;@9 D7EFD;5F;A@EI;F: D7EB75FFA
3?A@9
AF:7DE ?3;@F7@3@57
A8 EB75;8;76 674F E7DH;57 5AH7D397 D3F;A
35CG;E;F;A@
AD 6;EBAE;F;A@
A8 ?3769;@9 BD7E7@F
3@6
8GFGD7
3EE7FE 5:3@97 ;@ AI@7DE:;B
3@K
35FE
F:3FIAG>6 D7EG>F ;@
3
?3F7D;3> 36H7DE7
78875F
A@
F:7
AB7D3F;A@E
A8
F:7 BAI7D B>3@FE3@6?3;@F7@3@57
A8
9AA6 >793> 3@6 H3>;6
F;F>7 FA F:7 E;F78D77 8DA?
3>> >;7@E
3@6 7@5G?4D3@57E
AF:7D
F:3@
B7D?;FF76 >;7@E

)
3@6 ) 3>EA:3H77@F7D76 ;@FA E7B3D3F739D77?7@FE ;@ 5A@@75F;A@ I;F: F:7;D
7J;EF;@9 8;@3@5;@9 835;>;F;7E
3E 8A>>AIE

&ADF9397 EE;9@?7@F
3@6 )>7697 9D77?7@FE
I:7D74K 38;DEF
BD;AD;FK >;7@ A@ ?AEF
A8 )NE
3@6 )NE D73>
3@6
AF:7D
BDAB7DF;7E ;@5>G6;@9 D7H7@G7E 8DA?
F:7
AB7D3F;A@E
A8
F:7
BAI7D
B>3@FE :3H7 477@
7J75GF76 ;@ 83HAD A8
F:7
>7@67DE

"@ 366;F;A@
F:7 E:3D7E
A8 EFA5= A8 )
3@6
) I7D7 B>76976
3E B3DF
A8 E75GD;FK FA
F:7 >7@67DE

"@F7D D76;FAD 9D77?7@FE I:;5: 67E5D;47 F:7 36?;@;EFD3F;A@
A8
F:7 >A3@E

-DGEF
3@6
+7F7@F;A@ 9D77?7@F -+ I;F: F:7 >7@67DEN
67E;9@3F76
FDGEF77E )GDEG3@FFA
F:7
F7D?E 3@6 5A@6;F;A@E
A8
F:7
-+ )
3@6 ) :3H7 735: 7EF34>;E:76 H3D;AGE E75GD;FK 355AG@FE I;F: 67E;9@3F76
355AG@F 43@=E
I:7D7;@8>AIE 3@6 AGF8>AIE A8
BDA5776E 8DA? >A3@E 7CG;FK 5A@FD;4GF;A@E 3@6 BDA<75FD7H7@G7E
3D7 ?A@;FAD76 ) 3@6 ) ?3KI;F:6D3I
AD
FD3@E87D ?A@7KE 8DA?
F:7E7 E75GD;FK 355AG@FE EG4<75FFA
3@6 ;@
355AD63@57 I;F: F:7
F7D?E
3@6
5A@6;F;A@E
A8
F:7;DD7EB75F;H7 -+E

-:7
43>3@57
A8 )NE
3@6 )NE E75GD;FK 355AG@FE ;@5>G676
3E B3DF
A8 O3E:3@653E:7CG;H3>7@FEP 355AG@F ;@ F:7 5A@EA>;63F76
43>3@57 E:77FE
3E
A8
757?47D

 
3@6
 
3?AG@F76
FA)  ?;>>;A@   ?;>>;A@ 3@6 )  ?;>>;A@   ?;>>;A@ D7EB75F;H7>K

(@ 74DG3DK    9;H7@
F:7 D7EA>GF;A@
A8
F:7 6;EBGF747FI77@ ) 3@6 ,;7?7@E  ,;7?7@E )AI7D 7@7D3F;A@ 3@6 ,;7?7@E
"@5 5A>>75F;H7>K O,;7?7@EP
3@6
3ED7CG;D76 G@67D
F:7 -+ ,GBB>7?7@F 3@6 F:7
-
A8 )
3@ 399D793F7
3?AG@F
A8 )  ?;>>;A@   ?;>>;A@
A8 E75GD;FK 355AG@FE I3E GE76
FA
BD7B3KF:7 ,75GD76
"@674F76@7EE
3@6 3>> ;@674F76@7EE ;@5>GE;H7
A8
BD;@5;B3> ;@F7D7EF
3@6
AF:7D 877E
G@67D
F:7 " ;@3@57
A@FD35FE
A8 )
A@3BDA D3F343E;E

)!
AD )3D7@F A?B3@K -:7 >A@9 F7D?
674F
A8 )!
3E
A8
757?47D

 
3@6   5A@E;EFE
A8
F:7 8A>>AI;@9

35;>;FK ?AG@F ?AG@F D3I@    4 /22/549 >A3F;@9 +3F7ADBAD3F7'AF7E
 +'E )7EA-D3@5:7 'AF7)  )  $ )  A>>3D -D3@5:7 'AF7      ;J76 +3F7ADBAD3F7'AF7E
 1'E   -D3@5:7     -D3@5:7    -D3@5:7         %7EE 674F
;EEG3@57 5AEFE   $   ) 

112    4 /22/549 +'E $  )  1'E        %7EE 5GDD7@F
BADF;A@   $   )  

 DA>>8ADI3D6 3@3>KE;E A8
G@3?ADF;L76 674F ;EEG3@57 5AEFE ;EE:AI@ 47>AI

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $  )Q 74F ;EEG3@57 5AEFE D7>3F76
FA >A3@E 3H3;>76 H  ?ADF;L3F;A@   AD7;9@
7J5:3@97 36

>> 5D76;F 835;>;F;7E A8
F:7 )3D7@F
A?B3@K 3D7 G@E75GD76 -:7 )3D7@F
A?B3@K BAE;F;A@E ;FE
673>E
35DAEE H3D;AGE 5GDD7@5;7E ?3FGD;F;7E
3@6 BDA6G5FFKB7E
FA
BDAH;67 GF?AEF 8>7J;4;>;FK ;@ ;FE 8;@3@5;@9
FD3@E35F;A@E

E
A8
757?47D

 
3@6  
F:7 )3D7@F A?B3@K :3EG@6D3I@4ADDAI;@9 835;>;F;7E 8DA? 8;@3@5;3> ;@EF;FGF;A@E
3?AG@F;@9 FA) 
4;>>;A@
3@6 )  4;>>;A@ D7EB75F;H7>K

" 9 (@ (5FA47D    )!
7@F7D76 ;@FA
3@ +' 35;>;FK 9D77?7@F
I;F:35A@EADF;G?
A8 8;@3@5;3> ;@EF;FGF;A@E
3E ;@;F;3> @AF7:A>67DE -:7 +'E 5A@E;EF A8
. , 6A>>3D 67@A?;@3F76 3@6 B7EA 67@A?;@3F76 @AF7E
3E 67E5D;476 ;@
F:7 8AD79A;@9 -:7 +' 35;>;FK 9D77?7@F 5AH7DE
F:7 ;EEG3@57 A8
3
 K73D )7EA -D3@5:7
'AF7E
3?AG@F;@9 FA) 
4;>>;A@
3@6
3 K73D A>>3D -D3@5:7
'AF7E
A8
GB
FA
., ?;>>;A@

(@ (5FA47D   
F:7 )  4;>>;A@ )7EA-D3@5:7
'AF7E
3@6 ., ?;>>;A@
A8
F:7
 K73D A>>3D -D3@5:7
'AF7EI7D7
6D3I@ (@
'AH7?47D
   )!
6D7I 3@AF:7D
 ?;>>;A@ 8DA?
F:7
., ?;>>;A@  K73D
A>>3D -D3@5:7 'AF7E 3@6 F:7
835;>;FK
43>3@57
A8
 ?;>>;A@ I3E 53@57>>76

.@67DF:7 F7D?E
A8
F:7
+' 35;>;FK 9D77?7@F
F:7 )3D7@F
A?B3@KE:3>> ;EEG7
F:7 )7EA-D3@5:7
'AF7 3@6 )3DF 
A>>3D -D3@5:7 'AF7E ;@ 8G>> GDF:7D
F:7 )3D7@F A?B3@KE:3>> :3H7
F:7 ABF;A@
A8 ;EEG;@9 8DA?
F;?7
FA
F;?7
B3DF
AD 3>>
A8
F:7
)3DF 
6A>>3D -D3@5:7
'AF7E
BDAH;676 F:3F I:7@ ;EEG76
F:7 )3DF  A>>3D -D3@5:7
'AF7EE:3>>
8AD?
B3DF
A8
F:7
A>>3D -D3@5:7
'AF7E I;F:AGF 6;EF;@5F;A@ 47FI77@ )3DF  A>>3D -D3@5:7
'AF7E
3@6 )3DF 
A>>3D -D3@5:7
'AF7E E
A8
757?47D

  )!
:3E ;EEG76  ?;>>;A@
A8 )3DF  A>>3D -D3@5:7
'AF7

-:7 )7EA-D3@5:7
'AF7 3@6 )3DF A>>3D -D3@5:7
'AF7 I7D7 GE76 FA8;@3@577;F:7D ;@ I:A>7
AD ;@ B3DF F:7

3 35CG;E;F;A@
A8
 
A8
F:7 ;EEG76 E:3D7E A8 ). " E:3D7E 8DA?
.@;A@ 7@AE3,  E77
'AF7
 4 35CG;E;F;A@
A8
 
A8
F:7 ;EEG76 E:3D7E A8
&+%(
8DA?
F:7
&) E77 'AF7 5 F:7  ?;>>;A@
4D;697 >A3@
7JF7@676
4K ( )"
"@5 (
A@
#G>K    3@6 6 97@7D3> 5ADBAD3F78G@6 D7CG;D7?7@F

-:7 )3DF 
A>>3D -D3@5:7 'AF7 I3E
GE76 FA4GK 435=
 ?;>>;A@ A8
F:7
)! G@6NE
 ?;>>;A@ 9G3D3@F776 8>A3F;@9 D3F7
@AF7E

113 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7 E3>;7@F
BDAH;E;A@E A8
F:7
+'E
3D73E 8A>>AIE

"@F7D7EF +3F7
A>>3D -D3@5:7
'AF7E -:7 EG?
A8 ; FIA 3@6 A@7 F7@F:E B7D57@F   EBD736

B>GE ;; F:7
 ?A@F:
%"(+ 43E76 A@
F:7 AGFEF3@6;@9
3?AG@F A8
F:7
A>>3D -D3@5:7
'AF7E
)7EA-D3@5:7 'AF7E -:7 EG?
A8 3 FIA 3@6   B7D57@F   B>GE 4 -:7
 ?A@F: )-, D3F743E76 A@ F:7 AGFEF3@6;@9 3?AG@F
A8
F:7
)7EA-D3@5:7
'AF7E "@F7D7EF )3K?7@F 3F7,G557EE;H7
B7D;A6E
A8 E;J ?A@F:E ;@FA I:;5: F:7 B7D;A6 47FI77@ F:7 8;DEF ;EEG763F7
3@6 F:7 ?3FGD;FK 63F7;E
FA47 6;H;676
"@F7D7EF
B3K?7@F 63F7;E
3GFA?3F;53>>K 36> A@
F:7 ;??76;3F7>KEG55776;@9
43@=;@9
63K ;8 EG5: 63F7;E 675>3D76
AD ;E
3>>AI76 FA47
3
@A@ IAD=;@9
:A>;63K
AD @A@ 43@=;@9 63K ;@ F:7 >A53F;A@
A8
F:7 BD;@5;B3>
A88;57
A8 F:7 B3K;@9
397@F AD
"EEG7D +7B3K?7@F 3F7
A>>3D -D3@5:7
'AF7E (@
735: BD;> 
AD (5FA47D

479;@@;@9  
F:DAG9: BD;>   
)7EA-D3@5:7 'AF7E H7DK E;J ?A@F:E
479;@@;@9 (5FA47D

  GB FA (5FA47D

  +767?BF;A@ )! E:3>> D7677?
F:7
'AF7E 4K B3K;@9 F:7
BD;@5;B3> 3?AG@FE
F:7D7A8
A@
F:7;DD7EB75F;H7
BD;@5;B3> D767?BF;A@ 63F7E 3@6 ?3FGD;FK
63F7E
A>>3D -D3@5:7
'AF7E ,;J ;@EF3>>?7@FE EF3DF;@9 BD;>  
)7EA-D3@5:7 'AF7E ';@7
7CG3> E7?; 3@@G3> ;@EF3>>?7@FE
A8 )  ?;>>;A@ EF3DF;@9 BD;>  

-:7 +'EE:3>> 5A@EF;FGF7
6;D75F G@5A@6;F;A@3>
G@EG4AD6;@3F76 3@6 G@E75GD76 A4>;93F;A@ED3@=;@9 B3D; B3EEG I;F:3>>AF:7D
BD7E7@F
3@6
8GFGD7
6;D75F
G@5A@6;F;A@3> G@EG4AD6;@3F76
3@6 G@E75GD76 A4>;93F;A@E
A8 F:7 )3D7@F
A?B3@K

(@ BD;>   
F:7 )3D7@F
A?B3@K ;EEG76 )
4;>>;A@ 1'E ;@
F:D77
FD3@5:7E 5A@E;EF;@9
A8

 3@6  K73D @AF7E
FA H3D;AGE 8;@3@5;3> ;@EF;FGF;A@E ?3FGD;@9 ;@     3@6
  D7EB75F;H7>K -:7 1'E
473D 8;J76 ;@F7D7EF D3F7ED3@9;@9 8DA?
 
FA
 
B7D 3@@G?
67B7@6;@9 A@
F:7
F7D?E
A8
F:7
@AF7E

)D;@5;B3>
+7B3K?7@F 3@6 +767?BF;A@ 3F7
-D3@5:7


S
A8
F:7
8357 H3>G7A8
F:7 1'
3F
735: 3@@;H7DE3DK 63F7 3@6 A@7 63K ;@ F:7 3?AG@F
A8 )  ?;>>;A@ G@F;> F:7 F: 3@@;H7DE3DK 63F7B>GE A@7 63K
)   ?;>>;A@
A@ F:7 ?3FGD;FK 63F7

114 )D;@5;B3>
+7B3K?7@F 3@6 +767?BF;A@ 3F7
-D3@5:7



A8
F:7
8357 H3>G7A8
F:7 1'
3F
735: 3@@;H7DE3DK 63F7;@F:7 3?AG@F A8 ) ?;>>;A@ G@F;> F:7 F:3@@;H7DE3DK 63F7
)  ?;>>;A@ A@
F:7 ?3FGD;FK
63F7
-D3@5:7



A8
F:7
8357 H3>G7A8
F:7 1'
3F
735: 3@@;H7DE3DK 63F7;@F:7 3?AG@F A8 )  ?;>>;A@ G@F;> F:7
F:
3@@;H7DE3DK
63F7
)  ?;>>;A@ A@
F:7 ?3FGD;FK
63F7

-:7
F7D?E
A8
F:7
+'
3@6 1' 35;>;FK 9D77?7@FE D7CG;D7 )! FA 5A?B>KI;F:57DF3;@ D7EFD;5F;A@E 3@6 5AH7@3@FE I:;5: ;@5>G67
3?A@9
AF:7DE ; ?3;@F7@3@57 A8 57DF3;@ 674FE7DH;57 5AH7D397 D3F;A
3F
9;H7@ B7D;A6E
BDAH;676
43E76 A@ 5AD7
9DAGB 8;@3@5;3> EF3F7?7@FE ;; ?3;@F7@3@57
A8 57DF3;@ D3F;AE
3F
57DF3;@ >7H7>E ;;; ?3;@F7@3@57
A8 ;FE >;EF;@9 A@
F:7 ), ;H@A?3F7D;3> 5:3@97E ;@
F:7
@3FGD7
A8 4GE;@7EEH;@5GDD7@57
A8 ;@674F76@7EE E75GD76 4K >;7@E
G@>7EE 7H3>G3F76 FA47
@757EE3DKH; 9D3@F;@9A8>A3@E
FA
F:;D6B3DF;7E
7J57BFFA EG4E;6;3D;7E AD
AF:7DE ;@ F:7
AD6;@3DK 5AGDE7
A8
4GE;@7EEH;; E3>7
AD >73E7
A8
3>>
3EE7FEH;;; ?7D97DE
AD 5A@EA>;63F;A@E
3@6 ;J
675>3D3F;A@ AD B3K?7@F
A8
6;H;67@6E AF:7DF:3@ EFA5=
6;H;67@6E
6GD;@93@H7@F
A8
783G>F 3E
678;@76 ;@
F:7 9D77?7@F
AD ;8 EG5:
B3K?7@F IAG>6 D7EG>F ;@ 3@ H7@F
A8 783G>F

+76 /G>53@ (@
'AH7?47D

  F:7 OD3I6AI@3F7P +76 /G>53@ 3H3;>76 A8
3
):;>;BB;@7 B7EA 67@A?;@3F76 EF3B>7 8;@3@5;@9 OF:7 ,75GD76
"@674F76@7EEP
3?AG@F;@9
FA)  4;>>;A@    ?;>>;A@
F:3FI3E 3DD3@976 4K NE 8;@3@5;3>
36H;EADE
G@67D
3@
(?@;4GE
%A3@ 3@6 ,75GD;FK 9D77?7@F F:7 O,F3B>7 ;@3@5;@9 9D77?7@FP -:7 EF3B>7 8;@3@5;@9 I3E ?367 3H3;>34>7 4K
39DAGB
A8 >A53> >7@67DE
@3?7>K F:7 7H7>AB?7@F 3@=
A8
F:7 ):;>;BB;@7E ) (
3@6
F:7 %3@6 3@=
A8
F:7
):;>;BB;@7E %3@6 3@= 5A>>75F;H7>KD787DD76
FA3EF:7 O+76 /G>53@
%7@67DEP;@D7>3F;A@
FA
F:7 E3>7
A8
 
A8 NE ;EEG76 3@6 AGFEF3@6;@9 53B;F3> EFA5= -:7 ;@F7D7EF D3F7
A8
F:7 ,75GD76
"@674F76@7EE ;E 5A?BGF76 E7?; 3@@G3>>K
GE;@9 F:7 ):;>;BB;@7
73>;@9 ,KEF7? -D73EGDK ;J;@9 O),- P
47@5:?3D= D3F7
B>GE
F:7
3BB>;534>7 ;@F7D7EF ?3D9;@
AD
F:7 3@9=A ,7@FD3> @9 );>;B;@3E ,) AH7D@;9:FD3F7 I:;5:7H7D ;E
:;9:7D -:7EF3B>7 8;@3@5;@9 E:3>>
47
8AD
3
?3J;?G?
F7D?A8

?A@F:E
8DA?
F:7
D3I6AI@63F7

EE7F 8ADF:;@
F:7 ,F3B>7 ;@3@5;@9 9D77?7@F +76 /G>53@ ;E
A4>;93F76 FAB7D8AD?57DF3;@ 5AH7@3@FE I;F: D7EB75F
FA 3?A@9
AF:7DE ?3;@F7@3@57 A8
3
EB75;8;76 674F FA 7CG;FK D3F;A BDA:;4;F;A@ FA +76 /G>53@ 8DA? ?3=;@9
AD
B7D?;FF;@9 3@K ?3F7D;3> 5:3@97 ;@
F:7 5:3D35F7D
A8 ;FE
AD NE
4GE;@7EE

@AD
7@9397
AD 3>>AI  FA
7@9397 ;@ 3@K 4GE;@7EE
AB7D3F;A@
AD
35F;H;FK
AF:7D
F:3@
F:AE78ADI:;5: ;F ;E
BD7E7@F>K 3GF:AD;L76 4K >3I
6;EBAE;F;A@ A8
3>>
ADEG4EF3@F;3>>K 3>> A8 ;FE
3@6 NE
3EE7FE
3@6 ?3F7D;3> 5:3@97E ;@
F:7 5ADBAD3F7 EFDG5FGD7
AD ;@
F:7 5A?BAE;F;A@A8;FE
FAB >7H7> ?3@397?7@F

"@
366;F;A@
+76 /G>53@ ;ED7EFD;5F76 8DA? 675>3D;@9 AD
B3K;@9 6;H;67@6E AF:7DF:3@ EFA5=
6;H;67@6
FA
;FE EFA5=:A>67DE
AD
B3DF@7DE I;F:AGF
F:7 5A@E7@F
A8 3>> +76 /G>53@
%7@67DE +76 /G>53@ ;E 3>EA D7EFD;5F76 7J57BF 8AD
B7D?;FF76 4ADDAI;@9E FA ;@5GD
3@K >A@9 F7D?
674F
;@5D73E7;FE
4ADDAI;@9E
ADD7 3H3;> 7J;EF;@9 835;>;F;7EI;F:AF:7D 43@=E
AD 8;@3@5;3> ;@EF;FGF;A@E

"@
366;F;A@
F:7 E:3D7E A8 EFA5=
:7>6 4K
+76 /G>53@ ;@  D7BD7E7@F;@9 E;JFK B7D57@F  
A8 NE ;EEG76 3@6 AGFEF3@6;@9 53B;F3> EFA5= 5A@E;EF;@9 A8
 4;>>;A@ 5A??A@ E:3D7E
BD7E7@F>K ;@ E5D;B>7EE 8AD? 3@6 >A6976 I;F:
F:7 ):;>;BB;@7
7BAE;FADK 3@6 -DGEF
ADBAD3F;A@ 3@6   4;>>;A@
BD787DD76 E:3D7E 5A>>75F;H7>KD787DD76
FA3EO)>76976 ,:3D7EP I7D7 B>76976
3E
BD;?3DK E75GD;FK 8AD
F:7
6G73@6BDA?BF B3K?7@F
A8
F:7 ,75GD76 "@674F76@7EE

E;67 8DA?
F:7
BDAB7DF;7E B>76976 3@6
3E ;@6;53F76 ;@ F:7 ,F3B>7 ;@3@5;@9 9D77?7@F
F:7
,75GD;FK -DGEF77 E:3>> ?3=7
3
H3>G3F;A@ A8
F:7
B>76976  5A??A@ E:3D7E
A@
&3D5:

  #G@7

  G9GEF

  757?47D

  3@6 F:7 8;8F77@F:?A@F:8DA?
D3I6AI@3F7735:3O/3>G3F;A@ 3F7P
43E76 A@
F:7 I7;9:F76 3H7D397 5>AE;@9
BD;57E
3F
F:7 ), 8AD
F:7
F:;DFK FD36;@9 63KE ;??76;3F7>K BD;AD
FA
F:7 /3>G3F;A@ 3F7F:7 O-AB .B
BDAH;E;A@P -:7 )>76976 ,:3D7EE:3>>
47
7CG;H3>7@FFA
3F >73EF   A8
F:7
FAF3>
3?AG@FE
AGFEF3@6;@9 G@67DF:7 ,F3B>7 ;@3@5;@9 9D77?7@F

115 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

(@
'AH7?47D

  (
.@;43@=
"@5 ) 3@6
%3@6 3@=
3EE;9@76 H;3 3 776 A8 EE;9@?7@F
FA
(
.@;43@=
"@5 -DGEF 3@6 "@H7EF?7@FE DAGB(-DGEF
F:7;D 5ADD7EBA@6;@9 BADF;A@E
A8
F:7
EF3B>7 8;@3@5;@9 >A3@ 3?AG@F;@9
FA)  4;>>;A@   ?;>>;A@

-:7
67F3;>E
A8
+76 /G>53@NE >A@9 F7D?
674F
3D73E 8A>>AIE

      : $5686<<6:2 : =A6B.82:@ "@ ):;>;BB;@7 "@ CG;H3>7@F '3?7
A8
%7@67D $2?; ) '
;88.> )7EA . , A>>3D 35;4:9 /4 /22/549 ( $    )   ( -DGEF    HH ) HH   %3@6 3@= HH   $    )   

!
"@F7D@3F;A@3> (@ BD;>    ! "@F7D@3F;A@3>
7@F7D76 ;@FA3'AF7)GD5:3E79D77?7@F
I;F: "& 3K?3@ "E>3@6E%;?;F76 "&  .@67DF:7 'AF7)GD5:3E79D77?7@F !
"@F7D@3F;A@3> ;EEG76 3 ., ?;>>;A@  K73D @AF7 K73D 'AF7 3@6
6D7I A@
F:7 835;>;FK
BDAH;676 4K "& 479;@@;@9 #G>K    -:7
BD;@5;B3> B3K?7@FE:3>>
47 ;@ ., 6A>>3DE ;@
3@ 3?AG@F 7CG3> FA
A@7 E7H7@F:  
A8
F:7
399D793F7 BD;@5;B3>
3?AG@F
A8 )  4;>>;A@ ., ?;>>;A@
479;@@;@9 A@ #G>K    8;8F: 3@@;H7DE3DK 8DA?
63F7
A8 ;EEG7 3@6 E7?; 3@@G3>>KF:7D738F7D
G@F;> 8G>> B3K?7@F >>B3K?7@FE
A8
BD;@5;B3> E:3>> 47 ?367
FA97F:7D I;F:3>>
355DG76
4GF
G@B3;6 ;@F7D7EF A@ F:7 BD;@5;B3> 47;@9 D7B3;6 -:7
AGFEF3@6;@9
BD;@5;B3>
3?AG@F
A8
F:7
 K73D 'AF7 E:3>> 473D ;@F7D7EF
3F
3
D3F7A83

B7D 3@@G?8DA?
F:7
8G@6;@9 63F7
FA
F:7 8AGDF: 3@@;H7DE3DK 3@6 4  
B7D
3@@G?8DA?
F:7
8AGDF:
3@@;H7DE3DK
FA
F:7 ?3FGD;FK 63F7 E
A8 757?47D

  F:7 AGFEF3@6;@9 43>3@57 ;@
F:7
AD;9;@3> ., ?;>>;A@
@AF7 I3ED76G576 FA)  ?;>>;A@  ?;>>;A@ 3E
3
D7EG>F
A8
B3K?7@F A8 ?3FGD;@9
3?ADF;L3F;A@ ;@ #G>K  
3?AG@F;@9
FA ., ?;>>;A@

F 3@KF;?7
38F7D
F:7
F:;D6 3@6 8;8F:
3@@;H7DE3D;7E !
"@F7D@3F;A@3> E:3>>
:3H7 F:7 ABF;A@ FA D7B3K ;@ I:A>7 4GF @AF ;@ B3DF
3F
3
D767?BF;A@ BD;57 7CG3> FA  
A8
F:7
AGFEF3@6;@9
399D793F7BD;@5;B3>
3?AG@F A8
F:7
'AF7E
FA97F:7DI;F: 3>> ;@F7D7EF
355DG76
3@6 G@B3;6
GB
FA
F:7 63F7
A8
BD7B3K?7@FEG4<75FFA57DF3;@ BDAH;E;A@E
3@6
F:7
3BB>;534>7
BD7B3K?7@F 877

-:7
 K73D 'AF7;E
9G3D3@F776 G@5A@6;F;A@3>>K
3@6 ;DD7HA534>K 4K )! G@67D 3)3D7@F ,GBBADF 9D77?7@F 63F76 BD;>   

.@67DF:7 3>> (BF;A@ 9D77?7@F
63F76 BD;>    "&
:3EF:7 ABF;A@ FA35CG;D757DF3;@ E:3D7E
A8 5A??A@ EFA5=
3@6
BD787DD76 EFA5=
A8 ;DEF 7@
3E
I7>>
3E
F:7 D;9:FFA
BGF
F:7 53>> ABF;A@E 3@6 57DF3;@ AF:7DD;9:FE FA
F:7 )3D7@F
A?B3@K -:7
3>> (BF;A@ 9D77?7@FI3E 3?7@676 >3EF #3@G3DK    ?A@9
AF:7DF:;@9E F:7 3?7@6?7@FE I7D7 ?367 ;@ AD67D FA D75A9@;L757DF3;@ 5:3@97E ;@
F:7 53B;F3> EFDG5FGD7
A8 ;DEF 7@ B3DF;5G>3D>K
F:7 5D73F;A@
A8
3
@7I 5>3EE
A8
BD787DD76 E:3D7E
3@6
 ;@ 5A@@75F;A@ I;F: ;DEF 7@NE ;@;F;3> BG4>;5
A887D;@9 FA 3>>AI
3
53E: E7FF>7?7@F ;@ >;7G
A8
3@ 35FG3>
7J7D5;E7A8
F:7
53>> ABF;A@ "& 6;6 @AF 3H3;>
A8
F:;E 53E: E7FF>7?7@F
6GD;@9 F:7 ;@;F;3> BG4>;5
A887D;@9
I:;5:
:3E 477@ 5A@5>G676

,A >A@9
3E
F:7
 K73D 'AF7;E
AGFEF3@6;@9 !
"@F7D@3F;A@3> 3@6 )! I;>> 47 EG4<75F
FA
57DF3;@ G@67DF3=;@9EI;F: D7EB75FFA
@793F;H7 B>7697 674F ;@5GDD7@57
3EE7F 6;EBAE3> 6;H;67@6 B3K?7@FE ?3;@F7@3@57 A8 8;@3@5;3> 5AH7@3@FE 3@6 8;@3@5;3> D7BADF;@9
3?A@9
AF:7DE -:7H;A>3F;A@
A8
F:7
38AD7?7@F;A@76 ?3K 5A@EF;FGF73@7H7@F
A8
6783G>FG@67D
F:7
'AF7)GD5:3E79D77?7@F
F:7 )3D7@F ,GBBADF 9D77?7@F 3@6 F:7
3>> (BF;A@ 9D77?7@F

)! G@6 (@ G9GEF

  )! G@6 ;EEG76 8>A3F;@9 D3F7@AF7E  G3D3@F776 'AF7E
FAF3>;@9 ., ?;>>;A@
6G7 A@ (5FA47D

  -:7 B3K?7@F A8 EG5:
@AF7E ;E
9G3D3@F776 G@5A@6;F;A@3>>K
3@6 ;DD7HA534>K 4K
F:7 )3D7@F
A?B3@K

"@F7D7EF A@
F:7 G3D3@F776 'AF7E ;E
43E76 A@ E;J ?A@F:E
%"(+ 8DA? G9GEF

  B3K34>7 E7?; 3@@G3>>K 5A??7@5;@9
A@ BD;>

  -:7
F7D?E
A8
F:7
G3D3@F77
'AF7E
:3H7 E;@57 477@ 3?7@676
FA
D7?AH7 F:7 :A>67DNE
BGF
ABF;A@ A@
F:7 ;@F7D7EF
B3K?7@F 63F7@73D7EF FA(5FA47D 
  3E

116 I7>>
3E
F:7 ;EEG7NE
73D>KD767?BF;A@
ABF;A@ A@
F:7 ;@F7D7EF
B3K?7@F 63F7@73D7EF FA(5FA47D 
  E A8
757?47D

  3@6  
F:7
AGFEF3@6;@9 43>3@57
A@ F:7 AD;9;@3> ., ?;>>;A@ +' I3E D76G576 FA)  ?;>>;A@   ?;>>;A@
3@6 )  ?;>>;A@  ?;>>;A@ D7EB75F;H7>K
3E 3 D7EG>F A8 674F 4GK435=
788ADFE 5A@EG??3F76 ;@  
3@6  

(@ BD;>    )! G@6
6D7I
3
., ?;>>;A@ >A3@ 8DA? ,F3@63D6 3@= E;3
%;?;F76 I:;5: ;E 8G>>K 9G3D3@F776 4K ;DEF !A>6;@9E
G@67D
3)3D7@F ,GBBADF 9D77?7@F -:7 >A3@
4AD7;@F7D7EF 3FF:7 E;J ?A@F: %"(+ B>GE  4GF I3E >3F7DEI3BB76 8AD
3
8;J76 D3F7A8
  B3K34>7 E7?; 3@@G3>>K 5A??7@5;@9 (5FA47D

  ,7?; 3@@G3>
3?ADF;L3F;A@ A8
.,  ?;>>;A@ I;>>5A??7@57;@BD;>  
F:DAG9: BD;>   E A8
757?47D
  
3@6
  F:7 AD;9;@3>
3?AG@F
A8
., ?;>>;A@
I3ED76G576
FA)  ?;>>;A@   ?;>>;A@ 3@6 )  ?;>>;A@   ?;>>;A@ D7EB75F;H7>K 3E
3
D7EG>F
A8 F:7 B3K?7@F
A8 ?3FGD;@9
3?ADF;L3F;A@E ;@ BD;> 3@6 (5FA47D
3?AG@F;@9
FA
.,  ?;>>;A@ ;@   3@6  

)! G@6 3@6 F:7 )3D7@F A?B3@KI;>>
47 EG4<75F
FA57DF3;@ G@67DF3=;@9EI;F: D7EB75F
FA
@793F;H7 B>7697
674F ;@5GDD7@57 3EE7F
6;EBAE3> 6;H;67@6 B3K?7@FE ?3;@F7@3@57
A8 8;@3@5;3> 5AH7@3@FE
3@6 8;@3@5;3> D7BADF;@9 3?A@9
AF:7DE @KH;A>3F;A@
A8
F:7 8AD79A;@9 5AH7@3@FE ?3K 5A@EF;FGF73@7H7@F
A8 6783G>FG@67D
F:7
F7D?E
A8 F:7 G3D3@F776 'AF7E

)! /7@FGD7E (@ G9GEF

  )! /7@FGD7E 7@F7D76 ;@FA3 ADI3D6)GD5:3E7
FD3@E35F;A@
FA
35CG;D7 4K G9GEF

  3>> F:7 G3D3@F776 'AF7E ;EEG76 4K )! G@6 )! /7@FGD7E ?367
GB8DA@F
3@6
B7D;A6;5 53E: B3K?7@FE
BGDEG3@F
FA
F:7 F7D?E
A8
F:7
ADI3D6)GD5:3E79D77?7@F

.BA@ EB75;8;76 7H7@FE )! /7@FGD7E ?3K 47 D7CG;D76 FA
3557>7D3F7;FE 5A??;F?7@F
FA
35CG;D7 F:7 G3D3@F776
'AF7E 3@6 FA
7J7D5;E7 ;FE
BGD5:3E7 D;9:FE
BGDEG3@F
FA
F:7 &+%( ,)(+E

3E:
67BAE;F
BGDEG3@FFA
F:7
F7D?E
A8
F:7
ADI3D6)GD5:3E79D77?7@F
3?AG@F;@9
FA
 ?;>>;A@
3E A8 757?47D

  3@6  
3D7;@5>G676 ;@ O(F:7D @A@5GDD7@F 3EE7FEP
355AG@F ;@
F:7 5A@EA>;63F76 43>3@57 E:77FE

;DEF
!A>6;@9E DAGB;E ;@ 5A?B>;3@57 I;F: F:7 D7EFD;5F;A@E
3@6 5AH7@3@FE
A8
F:7 >A@9 F7D?
674F
3E
A8 757?47D

  3@6  

 #/864.@6;:? @; .? '2882>?

7F3;>E
A8
A4>;93F;A@EFA 3E ,7>>7DE
A@ @@G3> 78;5;7@5KD75A9@;L76
BGDEG3@FFA
F:7 ,E 3@6 F:7 )E ;@5>G6;@9
355DG76 ;@F7D7EF 3D7
3E 8A>>AIE

   4 /22/549 ) 3>3@57 3F 479;@@;@9
A8 K73D $   )  )D;@5;B3>
B3K?7@FE      "@F7D7EF ;@5GDD76  "@F7D7EF B3K?7@FE   AD7;9@ 5GDD7@5KFD3@E>3F;A@
363@57 3F 479;@@;@9
A8 K73D    )D;@5;B3>
B3K?7@FE     "@F7D7EF ;@5GDD76   "@F7D7EF B3K?7@FE    AD7;9@ 5GDD7@5KFD3@E>3F;A@
36    %7EE 5GDD7@F
BADF;A@    )H )

117 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

)
3@6 ) 735: 7J75GF76 A@ &3D5:    F:7;DD7EB75F;H7,
3@6 ) I;F: 3E ,7>>7DE
FA
3?;534>KE7FF>7 F:7;D >A@9 EF3@6;@9 6;EBGF7EG@67DF:7 ,) 8AD
A@FD35F 273DE
 
FA   -:7 6;EBGF7ED7>3F76
FA
F:7 3E ,7>>7DEN 5>3;? 8AD @@G3> 78;5;7@5K B3K?7@FE
FAF3>;@9 )  ?;>>;A@  ?;>>;A@ 3@6 )  ?;>>;A@   ?;>>;A@ 8DA? ) 3@6 ) D7EB75F;H7>K 5AH7D;@9 F:7 G@5A@EG?76 93EHA>G?7E
6GD;@9
F:7E7 A@FD35F 273DE

.@67DF:7 F7D?E
A8
F:7;DD7EB75F;H7,E 3@6 F:7 )E
F:7
3E ,7>>7DEN 5>3;?E 8DA? )
3@6
) :3H7 477@ D76G576
FA)  ?;>>;A@   ?;>>;A@
3@6 )  ?;>>;A@   ?;>>;A@ D7EB75F;H7>K &3@63FADK
BD7B3K?7@FE
A8 ) ?;>>;A@  ?;>>;A@
3@6 ) ?;>>;A@   ?;>>;A@ 3@6
BD7 E7FF>7?7@F ;@F7D7EF A8 ) ?;>>;A@  ?;>>;A@
3@6 ) ?;>>;A@   ?;>>;A@ 8AD ) 3@6 ) D7EB75F;H7>K I7D7
B3;6
A@
#G@7    66;F;A@3> D76G5F;A@E A8 @@G3> 78;5;7@5K 3?AG@F;@9
FA) ?;>>;A@   ?;>>;A@ 8AD ) 3@6 ) ?;>>;A@   ?;>>;A@ 8AD ) I7D7 D75A9@;L76 ;@   FA5D76;F ) 3@6 ) 8AD
93E 5A@EG?BF;A@ ;@
7J57EE
A8
F:7;DD7EB75F;H7 -3=7 AD )3K *G3@F;FK -()* 8AD
 

-:7 D7?3;@;@9 >;34;>;F;7EI;>>
47
B3;6
F:DAG9:
CG3DF7D>K BD;@5;B3> B3K?7@FE
G@F;>
757?47D

  I;F: ;@F7D7EF 3F %"(+ B>GE
39D776 ?3D9;@ -:7 D7EB75F;H7,E 3@6 )E
3>>AI )
3@6
)
FABD7B3K 3>> AD
B3DF
A8
F:7
AGFEF3@6;@9 43>3@57E
3@6
FA
O?3=7
GBPF:7 HA>G?7
A8
93E
GB
FA F:7 7JF7@F A8
F:7
BD;@5;B3> D7B3K?7@FE ?367
G@67D
F:7 ) 8AD
3
>A@97D
B7D;A6 A8
F;?7 ;@EF736
A8
F:7 F7@ A@FD35F 273DD75AH7DK B7D;A6 3>>AI76
G@67D
F:7;DD7EB75F;H7 ,)E (@&3K
   3>> F:7 5A@6;F;A@E
BD75767@FE7F AGF ;@ F:7 D7EB75F;H7,E 3@6 )E
A8 )
3@6 ) I7D7 5A?B>7F7>KE3F;E8;76 ,G5: 5A@6;F;A@E
BD75767@F ;@5>G676
3@ 35=@AI>769?7@F
3@6 5A@E7@F 4K &+%(

.@67DF:7 F7D?E
A8
F:7
))
I;F: &+%( 3>> 8G7> 3@6 8G7> D7>3F76
B3K?7@FE
3D7
B3EE F:DAG9: -:7 A4>;93F;A@E
A8 ) 3@6 )
G@67D
F:7;DD7EB75F;H7,E F:7 )E
3@6
F:7 ,)E
3D7
B3EE76 A@ FA &+%( A@ 3 O435= FA 435=P
3@6
8G>> B3EE F:DAG9: 43E;E -:75ADD7EBA@6;@9 D757;H34>7E 8DA? &+%( ;@5>G6;@9
355DG76 ;@F7D7EF 3@6
AGFBGF H3>G7
36676 F3J
3D7BD7E7@F76 3E
B3DF
A8 OGDD7@F BADF;A@
A8 >A@9 F7D? D757;H34>7EP
355AG@F ;@
F:7 5A@EA>;63F76
43>3@57 E:77F

.BA@ B3K?7@F A8
F:7
BD;@5;B3> 3?AG@F
3
5ADD7EBA@6;@9
BD7B3;6
93E ;ED75A9@;L76
FA
5AH7D
F:7
BD;@5;B3> BADF;A@ B3;6
FA F:7 3E ,7>>7DE
3@6
35ADD7EBA@6;@9 5D76;F
FA
.@73D@76 D7H7@G7 355AG@F ;ED75A9@;L76 8AD F:7
BD;@5;B3>
BADF;A@
F:3FI3E
3>D736K B3;6 4K &+%( E
A8
757?47D

  3@6  
F:7 D7?3;@;@9
BD7B3;6 93E E:AI@
3E B3DF
A8 O(F:7D
@A@5GDD7@F
3EE7FEP
355AG@F ;@
F:7 5A@EA>;63F76 43>3@57 E:77F
3D;E;@9 8DA?
F:7
,E
3@6 )E
3@6
F:7 5ADD7EBA@6;@9 G@73D@76 D7H7@G7E:AI@
3E B3DF
A8 O(F:7D @A@5GDD7@F >;34;>;F;7EP
355AG@F ;@
F:7 5A@EA>;63F76 43>3@57 E:77F
3?AG@F76
FA)  ?;>>;A@   ?;>>;A@
3@6 )  ?;>>;A@   ?;>>;A@ D7EB75F;H7>K E77 'AF7  -:7
BD7B3;6 93E
3@6
F:7 5ADD7EBA@6;@9 G@73D@76 D7H7@G7 43>3@57E
3E A8
757?47D

 
3D7@7F A8 D75AH7D;7E
A8 @@G3> 78;5;7@5KD75A9@;L76
4K 3E ,7>>7DE 8AD
93E 5A@EG?76
34AH7
F:7 -()*
3E 53>5G>3F76
4K 3E ,7>>7DE 8AD
F:7
A@FD35F 273DE
 
3@6
  I:;5:
FAF3>76 )  ?;>>;A@   ?;>>;A@

 #/864.@6;: @; $;C2> $8.:@
;:@>.0@;>?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 ?AG@FE
B3K34>7 G@67D (-
A@FD35FE $ ) ?AG@F
6G78ADE7FF>7?7@FI;F:;@  ?A@F:E E:AI@ G@67D GDD7@F >;34;>;F;7E    ?AG@F
6G78ADE7FF>7?7@F 38F7D

?A@F:E $H )

-:;E
355AG@F
B7DF3;@EFA
F:7 D7?3;@;@9
43>3@57
A8 NE
A4>;93F;A@EFA;FE (-
A@FD35FAD &3DG47@; (J4AI ;@ 5A@@75F;A@ I;F: F:7 5A@EFDG5F;A@ A8
F:7
97AF:7D?3>
BAI7D B>3@FE ;@ &;@63@3A I:;5: ;E
6G78AD FD3@E87D
FA
 ;@ #G@7  

118  &;E.8@E 22? $.E./82

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 G7 FA
( 'AF7 5 $  )  G7 FA
% .E 'AF7 5     %7EE 5GDD7@F
BADF;A@   $H )  

E
6;E5GEE76 ;@ 'AF7 5 4KH;DFG7
A8 ) 
'A
 
7@F7D76 ;@FA E7H7@ ,E
I;F: F:7 ):;>;BB;@7 AH7D@?7@F
F:DAG9:
F:7 (
9D3@F;@9  F:7 D;9:FFA
7JB>AD7 67H7>AB 3@6
GF;>;L7 F:7 ):;>;BB;@7EN 97AF:7D?3> D7EAGD57EEG4<75F
FA
E:3D;@9 A8
@7F
BDA5776E
I;F:
F:7 ):;>;BB;@7 AH7D@?7@F

"@
FGD@  I;>> B3KDAK3>FK 877E
FA F:7 (
3@6
% .EG@67D
F:7
F7D?E
A8
F:7
,

-:7
78875F;H7;@F7D7EF D3F7
A@ DAK3>FK 877 B3K34>7 D3@97E 8DA?
 
FA
  8AD
  55D7F;A@ 7JB7@E75:3D976
6GD;@9 F:7 K73D
7@676
757?47D

 
3?AG@F76
FA)  ?;>>;A@   ?;>>;A@ -:7D7 I3E @A
355D7F;A@ 7JB7@E7 D75A9@;L76
3E A8
757?47D

 

 #@52>
";:0A>>2:@ 6./686@62?

-:;E
355AG@F 5A@E;EFE
A8

   4 /22/549 .@73D@76 D7H7@G7E77
'AF7E
3
3@6
6 $  )  GEFA?7DEN
67BAE;FE   EE7FD7F;D7?7@F A4>;93F;A@E   787DD76
AGFBGF H3>G7
36676 F3J7E
A@ 3@@G3> 678;5;7@5K H  (F:7DE   $   ) 

E
6;E5GEE76 ;@ 'AF7 G@67D
F:7;DD7EB75F;H7E )
3@6 ) :3H7 3 >793> A4>;93F;A@
FA
6;E?3@F>7 F:7;DD7EB75F;H7BAI7D B>3@F
3EE7FE
3F
F:7 7@6
A8
F:7;DGE78G>>;H7E G=;6@A@ A@
F:7
AF:7D
:3@6 :3E 5A@FD35FG3> A4>;93F;A@
G@67D
F:7
>73E739D77?7@FI;F:),%&
FA6;E?3@F>7 ;FE
BAI7D
B>3@F 3EE7FE
3F
F:7 7@6 A8
F:7;D
GE78G>>;H7E ) ) 3@6 G=;6@A@
7EF34>;E:76
F:7;DD7EB75F;H7
BDAH;E;A@EFA D75A9@;L7
F:7;D
7EF;?3F76 >;34;>;FK 8AD
F:7 6;E?3@F>7?7@F
A8
F:7
BAI7D B>3@F
3EE7FE

&AH7?7@FE
A8
3EE7FD7F;D7?7@F
A4>;93F;A@E 8A>>AI

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $  ) 55D7F;A@
6GD;@9 F:7 K73D 5:3D976
FA;@F7D7EF 7JB7@E7E77
'AF7
  AD7;9@ 5GDD7@5KFD3@E>3F;A@
363@57 3F 7@6 A8 K73D $ )

-:7 O(F:7DEP
355AG@F ;@5>G67E
355DG76 H353F;A@
3@6 E;5= >73H77@F;F>7?7@FE
A8
F:7
7?B>AK77E
A8 

119 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

 .<[email protected] '@;07
.:1 [email protected]:21 .>:6:4?

3 &AH7?7@FE
A8
F:7
)3D7@F A?B3@KNE 5A??A@ EFA5= 8A>>AI

'G?47D
A8 ,:3D7E      GF:AD;L76 ) B3DH3>G7 B7DE:3D78AD 5A??A@ EFA5= 3@6 ) B3DH3>G7B7DE:3D7 8AD
BD787DD76 EFA5=       

"EEG76 3>3@57 3F 479;@@;@9
A8 K73D         "EEG3@57E         3>3@57 3F 7@6 A8 K73D         

,G4E5D;476 3>3@57 3F 479;@@;@9
A8 K73D        ,G4E5D;BF;A@E          "EEG3@57E          3>3@57 3F 7@6 A8 K73D      

4 &AH7?7@FE
A8
F:7
)3D7@F A?B3@KNE
BD787DD76 EFA5=
8A>>AI

'G?47D
A8 ,:3D7E    GF:AD;L76 ) B3DH3>G7B7DE:3D7   

"EEG76 3>3@57 3F 479;@@;@9
A8 K73DQQ "EEG3@57E ,7D;7E     Q ,7D;7E     Q +767?BF;A@ ,7D;7E      Q ,7D;7E  H Q 3>3@57 3F 7@6 A8 K73D   

,7D;7E    Q

,7D;7E
    Q

,G4E5D;476 3>3@57 3F 479;@@;@9
A8 K73D,7D;7E     Q ,G4E5D;BF;A@E,7D;7E      "EEG3@57E     Q 3>3@57 3F 7@6 A8 K73DQ

"EEG76
3@6 ,G4E5D;476    

,7D;7EOP )D787DD76 ,:3D7E (@
'AH7?47D

 
F:7 , 3BBDAH76
3
D7EA>GF;A@
A8
F:7 (
A8 )! 63F76 G9GEF    3@6 E:3D7:A>67DE 63F76 (5FA47D

 
3?7@6;@9 F:7 3GF:AD;L76 53B;F3> EFA5=
A8 )! 8DA? )  4;>>;A@ 6;H;676 ;@FA
  E:3D7EI;F:B3DH3>G7
A8 ) 3 E:3D7;@FA)  4;>>;A@ 5A@E;EF;@9
A8
  5A??A@ E:3D7E
I;F:
B3DH3>G7
A8 ) 3 E:3D7 3@6
 BD787DD76 E:3D7E
I;F:
B3DH3>G7
A8 )
3
E:3D7

120 (8
F:7
) 4;>>;A@ ;@5D73E7;@3GF:AD;L76 53B;F3> EFA5= ) 4;>>;A@ I3EEG4E5D;476 3@6 ) 4;>>;A@ I3E
B3;6 GB F:DAG9:
F:7 ;EEG3@57
A8
F:7 ,7D;7E )D787DD76 ,:3D7E
FA
F:7 )3D7@F A?B3@KNE I:A>>K AI@76 EG4E;6;3D;7E
3E 8A>>AIE

,G4E5D;47D 'A
A8 ,:3D7E -AF3> )3D /3>G7 4 /22/549 !
"@F7D@3F;A@3>  ) ;DEF ):;>75    )+     )

!
"@F7D@3F;A@3> 3 I:A>>K AI@76
3K?3@
"E>3@6E 43E76 EG4E;6;3DK EG4E5D;476
FA
 E:3D7E
A8 ,7D;7EOP
BD787DD76 EFA5= ,G5: EG4E5D;BF;A@ ;E
BD7E7@F76
3E
3 674;FFA
F:7 7CG;FK E75F;A@
A8 F:7 5A@EA>;63F76 43>3@57 E:77FG@67D
F:7 O)3D7@F A?B3@K )D787DD76 ,FA5=
!7>6 4K
3,G4E;6;3DKP 355AG@F

(@ 74DG3DK  3@6    )! D7677?76
3>>
F:7 E:3D7EEG4E5D;476 4K ;DEF ):;>75 3@6 )+ 3F 3
BD;57 7CG3> FA F:7 ;EEG7 H3>G7
A8
F:7
E:3D7E

,7D;7EOP )7DB7FG3> )D787DD76 ,:3D7E (@
&3D5:   
F:7 ),
3BBDAH76 )!NE
3BB>;53F;A@
FA>;EF
 ,7D;7EOP )7DB7FG3> )D787DD76 ,:3D7E
3F 3@ (887D )D;57A8) B7DE:3D7 -:7 (887D 5A?BD;E7E )7DB7FG3> )D787DD76 ,:3D7EFA47;EEG76 8DA? )!NE  3GF:AD;L76
BD787DD76 E:3D7E BGDEG3@FFA
3BD;?3DK A887D (@BD;>    )!
F:DAG9: F:7 .@67DID;F7DE
3@6
,7>>;@9 97@FE ;EEG76  5G?G>3F;H7
@A@ HAF;@9 @A@ B3DF;5;B3F;@9 @A@ 5A@H7DF;4>7 3@6
B7EA 67@A?;@3F76 ,7D;7EOP )7DB7FG3> )D787DD76 ,:3D7EI;F:3
B3D
A8 ) B7DE:3D7

E
3@6 I:7@ 675>3D76 4KF:7 ( 53E:6;H;67@6E A@
F:7 )7DB7FG3> )D787DD76 ,:3D7EE:3>> 47
3F 3 8;J76 D3F7
A8
 
B7D
3@@G?
.@>7EE
F:7E7
3D7 D7677?76 4K )!
A@ F:7
F: 3@@;H7DE3DK 8DA? F:7
"EEG73F7F:7 O;H;67@6 D3F7,F7B .B 63F7P
F:7 ;H;67@6 +3F7 E:3>> 47 36;@9 ),-
 K73D
FD73EGDK E75GD;F;7E
47@5:?3D= D3F7
B>GE
3
?3D9;@
A8
 43E;E BA;@FE

-:7
@7F
BDA5776E
A8
F:7
(887D
3?AG@F;@9
FA)  4;>>;A@ ;E ;@F7@676 FA47
GE76
FA
B3DF;3>>KD7B3K AD D78;@3@57 )!NE 674F
A4>;93F;A@E
3EI7>>
3E 8G@6 EFD3F79;5
35CG;E;F;A@E 3@6 AF:7D 53B;F3> 3@6 AB7D3F;@9 D7CG;D7?7@FE
A8 )! 3@6 AD 8G@6
AF:7D 97@7D3> 5ADBAD3F7
BGDBAE7E

(@ #G>K
   F:7 ( A8 )!
675>3D76 3 53E:6;H;67@6
A8 ) 
B7D AGFEF3@6;@9
BD787DD76 E:3D7
FA3>>E:3D7:A>67DE
A8 D75AD6
3E
A8 #G>K

 

5 73FGD7E
A8
F:7 )D787DD76 ,:3D7E

-:7
BD787DD76 E:3D7E
3D7 ;
@A@ HAF;@9 7J57BF ;@
F:AE753E7E
7JBD7EE>K BDAH;676 8AD 4K >3I;;
@A@ 5A@H7DF;4>7 ;@FA5A??A@EFA5= ;;;
@A@ B3DF;5;B3F;@9 ;@
3@K
AF:7D
AD 8GDF:7D 6;H;67@6
B3K?7@F 47KA@6 F:7 EB75;8;76 5AGBA@ D3F7
3@6 ;H D7677?34>7
3F
F:7 ABF;A@
A8 )!
3F 3 D767?BF;A@ BD;57 7CG3> FA F:7 399D793F7
A8
F:7 ;EEG7 H3>G7A8
F:7
E:3D7
BD;57 7CG3> FA F:7 ;EEG7 H3>G7
A8
F:7 E:3D7B>GE
355DG76 4GF G@B3;6 6;H;67@6E

,G5: 5G?G>3F;H7
BD787DD76 E:3D7E 53DDK
3
5AGBA@ D3F77CG3> FA
 A8
F:7
B3DH3>G7
A8
F:7
E:3D7

6 )3D7@F
A?B3@KNE
+7F3;@76 3D@;@9E 55AG@F H3;>34>7 8AD
;H;67@6
75>3D3F;A@

)!NE D7F3;@76
73D@;@9E
3H3;>34>7 8AD
6;H;67@6 675>3D3F;A@ 5A?BGF76 43E76 A@ F:7 9G;67>;@7E BDAH;676 ;@ , &7?AD3@6G?
;D5G>3D
'A  3?AG@F76 FA)  ?;>>;A@
3E A8
757?47D

 

121 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

 D20A@6B2 '@;07 #<@6;: $8.:
.:1 9<8;E22 '@;07 $A>05.?2 $8.:

-:7 )3D7@F A?B3@K :3E 3@ J75GF;H7,FA5= (BF;A@ )>3@ ,()
3@6 ?B>AK77 ,FA5= )GD5:3E7)>3@ ,)) 5A>>75F;H7>KD787DD76
FA3E
F:7
O)>3@EP
F:3F 7@F;F>7
F:7 6;D75FADE E7@;AD
A88;57DE 8AD
F:7
,() 3@6 7?B>AK77E 8AD
F:7 ,)) FA
BGD5:3E7 GB FA 
A8
F:7 )3D7@F A?B3@KNE 3GF:AD;L76 53B;F3> EFA5=
A@
F:7 A887D;@9 K73DE 3F
3BD7E7F BGD5:3E7
BD;57 I;F:
B3K?7@F
3@6 AF:7D
F7D?E
FA
47
678;@76
3F
F:7
F;?7
A8
F:7
A887D;@9 -:7
BGD5:3E7BD;57
B7DE:3D7 E:3>> @AF 47 >7EE
F:3@
F:7 3H7D397
A8
F:7 >3EF
673>F
BD;57
B7DE:3D7 A8
F:7
)3D7@F A?B3@KNE E:3D7
A8 EFA5= -:7
F7D?E A8
F:7 )>3@E ;@5>G67 3?A@9
AF:7DE
3
FIAAD 8AGD K73D :A>6;@9 B7D;A6 8DA?
F:7
63F7
A8
BGD5:3E78AD ,)) 3 >;?;F
3E
FA
F:7
@G?47D
A8 E:3D7E
3@
7J75GF;H7 3@6 7?B>AK77 ?3K BGD5:3E73@6
F:7 ?3@@7D
A8
B3K?7@F 43E76 A@ 7CG3> E7?; ?A@F:>K ;@EF3>>?7@FE
AH7D 3 B7D;A6
A8 8;H7AD
 K73DE
F:DAG9: E3>3DK
676G5F;A@E

&AH7?7@FE ;@
F:7 @G?47D
A8 EFA5=
ABF;A@E AGFEF3@6;@9
3D7
3E 8A>>AIE

,()

   -AF3> E:3D7E 3>>A53F76       

(BF;A@E
7J7D5;E34>7 3>3@57 3F 479;@@;@9
A8 K73D      D3@F76 QQ J7D5;E76      3>3@57 3F 7@6 A8 K73D     

,))

   -AF3> E:3D7EEG4E5D;476      "EEG3@57E 3>3@57 3F 479;@@;@9
A8 K73D      "EEG3@57E
6GD;@9 F:7 K73D    3>3@57 3F 7@6 A8 K73D      3>3@57 A8 EG4E5D;476 E:3D7E
3F
7@6
A8 K73D    

J7D5;E7
BD;57
A8
F:7
EFA5=
ABF;A@ G@67D
F:7 ,() ;EE7F
3F )  B7DE:3D7 -:7
I7;9:F76 3H7D397 E:3D7
BD;57 3FF:7 63F7E
A8 ABF;A@E
7J7D5;E76
6GD;@9
F:7 K73DI3E )  B7DE:3D7 -:7
I7;9:F76 3H7D397 83;DH3>G7
A8
ABF;A@E
9D3@F76 I3E )  B7DE:3D7

-:7 I7;9:F76 3H7D397 D7?3;@;@9 5A@FD35FG3> >;87 8AD
F:7 E:3D7ABF;A@ AGFEF3@6;@9 3E
A8
757?47D

  ;E
  K73DE

-:7 83;DH3>G7
A8 E:3D7ABF;A@E
9D3@F76 G@67D
F:7 ,() ;E
7EF;?3F76
3F
F:7 63F7E A8
9D3@F
GE;@9 F:7 >35= ,5:A>7E (BF;A@ )D;5;@9 &A67>
F3=;@9 ;@FA
355AG@F
F:7 F7D?E
3@6
5A@6;F;A@EGBA@ I:;5: F:7 ABF;A@EI7D7 9D3@F76 -:7 8A>>AI;@9 F34>7 >;EFE
F:7 ;@BGFE
FA F:7 ?A67>

;H;67@6 K;7>6   JB75F76 HA>3F;>;FK    +;E= 8D77 ;@F7D7EF D3F7    JB75F76 >;87
A8
ABF;A@ K73DE   07;9:F76
3H7D397 E:3D7BD;57 ) 

-:7 E:3D7 43E76 B3K?7@FFD3@E35F;A@E
3?AG@F76 FA) ?;>>;A@ ) ?;>>;A@ 3@6 ) ?;>>;A@ ;@    
3@6
  D7EB75F;H7>K

-:7
7JB75F76 >;87
A8
F:7
ABF;A@E ;E
43E76
A@ :;EFAD;53> 63F3 3@6 ;E @AF @757EE3D;>K ;@6;53F;H7
A8
7J7D5;E7 B3FF7D@EF:3F ?3K
A55GD -:7
7JB75F76 HA>3F;>;FK D78>75FE
F:7
3EEG?BF;A@ F:3FF:7 :;EFAD;53> HA>3F;>;FK ;E ;@6;53F;H7
A8 8GFGD7
FD7@6E I:;5: >;=7I;E7 ?3K @AF @757EE3D;>K 47 F:7 35FG3>
AGF5A?7

122 'A
AF:7D 873FGD7E
A8
ABF;A@E
9D3@FI7D7 ;@5ADBAD3F76 ;@FA F:7 ?73EGD7?7@F
A8
F:7
83;DH3>G7A8
F:7
ABF;A@E

-:7
ABF;A@E
9D3@F76 G@67DF:7 ,))
3D7@AFH3>G76 E;@57
F:7E7 53@@AFCG3>;8K
3EE:3D7 43E76
B3K?7@FE G@67D ) +,


 ;?@
.:1 D<2:?2?

-:;E
355AG@F 5A@E;EFE
A8

     4 /22/549 )AI7D B>3@F AB7D3F;A@E
3@6 ?3;@F7@3@57 E77
'AF7E 7 3@6
; $   )   )  7BD75;3F;A@ 3@6 3?ADF;L3F;A@ E77
'AF7        )7DEA@@7> 7JB7@E7E E77 'AF7E  3@6       +3I ?3F7D;3>E 3@6 EGBB>;7E     "@EGD3@57    )DA87EE;A@3> 877E    -3J7E
3@6
>;57@E7E     +7@F 3@6 EG45A@FD35F 5AEFE    %3@6
67H7>AB?7@F 5AEFE   (F:7DE    $  )  )  

 6:.:02
;?@? 6:.:02 :0;92
.:1 2<>206.@6;: .:1 9;>@6F.@6;:

;@3@57
AEFE

     4 /22/549 "@F7D7EF A@ >A3@E
3@6
4A@6E E77
'AF7E   3@6  $   )   )  @@G3>
678;5;7@5K E77
'AF7
9      55D7F;A@
A@ 674F ;EEG3@57 5AEFE    0D;F7 A88
A8
6787DD76
674F ;EEG3@57 5AEFE A@ G@6D3I@ 835;>;FK E77
'AF7
 H   55D7F;A@
A@
DAK3>FK 877 B3K34>7 E77
'AF7  H  Q 55D7F;A@
A@ 3EE7FD7F;D7?7@F
A4>;93F;A@E E77
'AF7   (F:7DE  QQ $  )  ) 

;@3@57
"@5A?7

     4 /22/549 ,:ADF F7D?53E:;@H7EF?7@FE $   )  )  @@G3>
678;5;7@5K E77
'AF7
9      (F:7DE    $   )  ) 

123 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

7BD75;3F;A@ 3@6 ?ADF;L3F;A@

     4 /22/549 )DAB7DFK B>3@F 3@6 7CG;B?7@F E77
'AF7  $  )  )  A@57EE;A@ D;9:FE E77
'AF7
   Q 03F7DD;9:FE E77
'AF7    Q "@H7EF?7@F
BDAB7DF;7E E77 'AF7     );B7>;@7 D;9:FE E77
'AF7    A@57EE;A@ D;9:FE 8AD 5A@FD35FE
35CG;D76 E77
'AF7    QQ (F:7DE H  $  )  ) 

(F:7D
"@5A?7 :3D97E

     4 /22/549 "@F7D7EF ;@5A?7
A@
E7DH;57 5A@57EE;A@ $   ) )Q &3D= FA ?3D=7F
93;@
67D;H3F;H7E   QQ +7H7@G78DA?
3D4;FD3F;A@
3I3D6 QQ E77
'AF73   .@D73>;L76 83;DH3>G7 93;@ >AEE
A@
;@H7EF?7@F
:7>6 8AD
FD36;@9     3;@ A@ E3>7
A8
BDAB7DFK Q  (F:7DE      $ )  )

 &2@6>292:@
2:236@?

-:7 )3D7@F A?B3@K 3@6 57DF3;@ EG4E;6;3D;7E ?3;@F3;@
CG3>;8;76 @A@5A@FD;4GFADK 678;@76
47@78;F D7F;D7?7@F
B>3@E 5AH7D;@9 EG4EF3@F;3>>K 3>>
F:7;DD79G>3D
7?B>AK77E

-:7 8A>>AI;@9 F34>7EEG??3D;L7
F:7 5A?BA@7@FE
A8
@7F
47@78;F
7JB7@E7 D75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7
3@6
F:7 8G@676 EF3FGE
3@6
3?AG@FE D75A9@;L76 ;@ F:7 5A@EA>;63F76
43>3@57 E:77FE 8AD
F:7
B>3@

+7F;D7?7@F 7@78;F JB7@E7

     4 /22/549 GDD7@FE7DH;57 5AEF $  ) ) "@F7D7EF 5AEF     JB75F76 D7FGD@A@B>3@
3EE7FE     '7F
35FG3D;3> >AEE7ED75A9@;L76    ?ADF;L3F;A@ A8
35FG3D;3> >AEE7E  QQ ?ADF;L3F;A@ A8
B3EF E7DH;57 5AEF  ,7FF>7?7@F >AEE H  Q $ ) )

5FG3> D7FGD@
A@ B>3@ 3EE7FE $  ) )

124 +7F;D7?7@F 7@78;F %;34;>;FK

   4 /22/549 )D7E7@FH3>G7
A8
47@78;F
A4>;93F;A@ $  )  3;DH3>G7
A8 B>3@ 3EE7FE     )D7E7@FH3>G7
A8
G@8G@676 A4>;93F;A@     .@D75A9@;L76 35FG3D;3> >AEE7E    .@D75A9@;L76 B3EF E7DH;57 5AEF    AD7;9@
7J5:3@97 6;887D7@57E    J57EE
A8 5A@FD;4GF;A@ AH7D >;34;>;FK H  (F:7DE H    +7F;D7?7@F
3EE7FD75A9@;L76 4K
F:7 )3D7@F A?B3@K 3@6 3 EG4E;6;3DK   $  ) 

&AH7?7@FE ;@
F:7
BD7E7@FH3>G7A8
F:7
678;@76
47@78;F
A4>;93F;A@
3D7
3E 8A>>AIE

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $  )  GDD7@FE7DH;57 5AEF   "@F7D7EF 5AEF   7@78;FE
B3;6     5FG3D;3> 93;@    8875F
A8 5GDF3;>?7@F H  66;F;A@E 6G7 FA
35CG;E;F;A@ H   AD7;9@ 5GDD7@5KFD3@E>3F;A@
363@57 3F 7@6 A8 K73D $  ) 

&AH7?7@FE ;@
F:7 83;DH3>G7
A8
B>3@
3EE7FE
3D73E 8A>>AIE

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D $  )  JB75F76 D7FGD@A@B>3@
3EE7FE  A@FD;4GF;A@E   7@78;FE
B3;6    5FG3D;3> >AEE7E     66;F;A@E 6G7 FA
35CG;E;F;A@ H   AD7;9@ 5GDD7@5KFD3@E>3F;A@
363@57 3F 7@6 A8 K73D $  ) 

-:7 ;DEF
!A>6;@9E DAGB7JB75FE
FA
5A@FD;4GF7) ?;>>;A@
FA;FE 678;@76
47@78;FD7F;D7?7@F
B>3@ ;@
 

-:7 ?33@
3EE7FE
3E
3B7D57@F397
A8
F:7
83;DH3>G7
A8
FAF3> B>3@ 3EE7FE
3D7
3E 8A>>AIE

   3E:
3@6 53E:7CG;H3>7@FE     "@H7EF?7@F ;@ E:3D7E
A8 EFA5=    "@H7EF?7@FE ;@
9AH7D@?7@FE75GD;F;7E   (F:7DE    

-:7
AH7D3>> 7JB75F76 D3F7A8D7FGD@
A@
3EE7FE ;E
67F7D?;@76
43E76 A@
F:7 ?3D=7F
BD;57E
BD7H3;>;@9 A@
F:3F 63F7
3BB>;534>7
FA
F:7
B7D;A6 AH7DI:;5: F:7 A4>;93F;A@ ;E
FA
47
E7FF>76

125 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7
BD;@5;B3> 35FG3D;3> 3EEG?BF;A@E
3F
F:7
43>3@57 E:77F
63F7E
GE76 8AD
F:7 )3D7@F
A?B3@K 3@6 EG4E;6;3D;7EN
35FG3D;3> H3>G3F;A@E 3D7
3E 8A>>AIE

   ;E5AG@FD3F7  H   Q  JB75F76 D3F7A8D7FGD@A@B>3@
3EE7FE  H   Q  GFGD7 E3>3DK ;@5D73E7E  H   Q 

?AG@FE 8AD
F:7
5GDD7@F 3@6
BD7H;AGE
B7D;A6E 3D7
3E 8A>>AIE

2029/2>  757?47D
 757?47D
      4 /22/549 78;@76 47@78;F
A4>;93F;A@ $  )  )  )>3@
3EE7FE       78;5;F $   )  )  

"@
  F:7 7JB7D;7@57 36G7A8
A4>;93F;A@
3@6 B>3@
3EE7FE
3?AG@F76
FA) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K -:7
7JB7D;7@57 363@
3EE7FE 3?AG@F76
FA) ?;>>;A@ ;@  


A@7 B7D57@F397 BA;@F 5:3@97 ;@ F:7 3EEG?76 D3F7
A8 ;@5D73E7 ;@ ?76;53> 5AEFE
IAG>6
:3H7
F:7 8A>>AI;@9 78875FE

"@5D73E7 75D73E7   8875F
A@
F:7
399D793F75GDD7@FE7DH;57 5AEF 3@6 ;@F7D7EF 5AEF     8875F
A@
F:7
678;@76
47@78;F
A4>;93F;A@       8875F
A@
F:7
399D793F75GDD7@FE7DH;57 5AEF 3@6 ;@F7D7EF 5AEF      8875F
A@
F:7
678;@76
47@78;F
A4>;93F;A@     

 :0;92 (.D

-:7 5A@EA>;63F76 6787DD76 F3J
3EE7FE
3@6 >;34;>;F;7E
3E A8
757?47D

  3@6   5A@E;EF
A8
F:7 8A>>AI;@9

   4 /22/549 787DD76
F3J
3EE7FE 3B;F3>;L76 8AD7;9@ 7J5:3@97 A@ >AEE7E A@ (-
BAI7D
B>3@F $  )  >>AI3@57 8AD
6AG4F8G> 355AG@FE     +7F;D7?7@F
47@78;F >;34;>;FK   ;@3@5;3>
3EE7FE ;@F3@9;4>7 3EE7FE    74F ;EEG3@57 5AEFE  55DG76
7JB7@E7E   .@GE76 '(%( 3@6 &"-   EE7FD7F;D7?7@F A4>;93F;A@  (F:7DE   -AF3>    

126    4 /22/549 787DD76
F3J >;34;>;F;7E 76G5F;4>7
7JB7@E7E B7D )
'A  $  )  )D7B3;6 ?3;L76 8AD7;9@
7J5:3@97
93;@E   ;887D7@57 ;@ 67BD75;3F;A@ ?7F:A6   3B;F3>;L76 8AD7;9@ 7J5:3@97 93;@
F3J7E 6GF;7E 3@6 ;@F7D7EF   ;887D7@57
47FI77@ F:7 83;DH3>G7E 3@6 4AA= H3>G7ED7EG>F;@9 8DA?
4GE;@7EE 5A?4;@3F;A@   )D7B3;6 B7@E;A@ 3EE7FE   -AF3>     $   )  

 D75A@5;>;3F;A@ 47FI77@
F:7 EF3FGFADK ;@5A?7
F3JD3F7E
3@6
78875F;H7 ;@5A?7
F3JD3F7E
3EE:AI@;@
F:7 5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7 8A>>AIE

     ,F3FGFADK ;@5A?7
F3JD3F7E       "@5A?7
F3J
78875FE
A8 "@5A?7
F3J
:A>;63K "-!        CG;FK ;@
@7F 73D@;@9E
A8 3EEA5;3F7E       "@5A?7 EG4<75F76
FA
8;@3> F3J       (F:7DE       8875F;H7 ;@5A?7
F3JD3F7E      

7DF3;@ 6787DD76 ;@5A?7
F3J
3EE7FE
A8
F:7
)3D7@F A?B3@K 3@6 57DF3;@ AF:7DEG4E;6;3D;7E :3H7
@AF
477@ D75A9@;L76 E;@57 ?3@397?7@F 47>;7H7E
F:3F ;F ;E @AF BDA434>7 F:3FEG88;5;7@F
F3J34>7
BDA8;FE I;>> 47 3H3;>34>7 393;@EF I:;5: F:7K 53@ 47 GF;>;L76 -:7 676G5F;4>7
F7?BAD3DK 6;887D7@57E
A8 57DF3;@
43>3@57 E:77F ;F7?E
3@6
F:7 53DDK8ADI3D6
47@78;FE
A8
'(%( 3@6
&"- 8ADI:;5: @A 6787DD76
F3J
3EE7F :3E 477@ D75A9@;L76 ;@
F:7 5A@EA>;63F76 43>3@57 E:77FE
3D73E 8A>>AIE

   4 /22/549 '(%( $  )  .@D73>;L76 8AD7;9@
7J5:3@97 93;@ >AEE    >>AI3@57 8AD
6AG4F8G> 355AG@FE  &"-   (F:7DE   $  ) 

-:7
6787DD76
F3J
3EE7FE
:3H7@AF 477@ D75A9@;L76
3EF:7 ;DEF !A>6;@9E DAGB;E 34>7
FA
5A@FDA>
F:7
F;?;@9 A8
F:7
D7H7DE3> A8
F:7
F7?BAD3DK 6;887D7@57E
3@6
;F ;E
BDA434>7 F:3F
F:7
F7?BAD3DK 6;887D7@57E ?3K @AF D7H7DE7;@F:7 8AD7E7734>7 8GFGD7

-:7 5A@EA>;63F76 G@GF;>;L76
'(%(
3@6
&"-
3E
A8
757?47D

 
3D7
67F3;>76 3E 8A>>AIE

3DDK8ADI3D6 7@78;F ?AG@F 273D "@5GDD76 )3;6 .B -A '(%( &"- 4 /22/549   757?47D

  )  )   757?47D

       757?47D

    Q )   )

'(%(
3@6
&"-
3?AG@F;@9
FA)  ?;>>;A@
3@6 )  ?;>>;A@ D7EB75F;H7>K
7JB;D76 ;@
 

127 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7D7
3D7
@A ;@5A?7
F3J 5A@E7CG7@57E
3FF35:;@9 FA
F:7
B3K?7@F A8
6;H;67@6E ;@
7;F:7D  
AD   4K )! FA;FE E:3D7:A>67DE

 $' ;9

-:7 8A>>AI;@9 F34>7
BD7E7@FE ;@8AD?3F;A@ @757EE3DK FA5A?BGF7 ),

     4 /22/549
>)+6: ;3(+8 5, #.'8+9 '4* !+8
#.'8+ ':' '7F ;@5A?7 3FFD;4GF34>7
FA7CG;FK :A>67DE A8
F:7 )3D7@F $   )  )   %7EE 6;H;67@6E A@ BD787DD76 E:3D7E  QQ 3 '7F ;@5A?7 3H3;>34>7
FA5A??A@E:3D7E $   )  )   853
54:/4;/4- 6+8':/549 (2,191)  C 853
/9)54:/4;/4- 6+8':/549 3,287   

'G?47D A8 E:3D7E A??A@ E:3D7E AGFEF3@6;@9 3F 479;@@;@9 A8 K73D         8875F A8 5A??A@ E:3D7;EEG3@57E 6GD;@9
F:7 K73D          4 6GF;H7BAF7@F;3> 5A??A@ E:3D7E          5 6GF76        

), 3E;5
3 4 $  )  )  853
54:/4;/4- 6+8':/549 (3.717)     853
/9)54:/4;/4- 6+8':/549 5.576  C ;>GF76
3 5      

 &28.@21 $.>@E (>.:?.0@6;:?

+7>3F76 )3DF;7E @F7DBD;E7E
3@6 ;@6;H;6G3>EF:3F 6;D75F>K AD ;@6;D75F>K
F:DAG9:
A@7
AD ?AD7;@F7D?76;3D;7E 5A@FDA>
AD 3D7 5A@FDA>>76 4K
ADG@67D 5A??A@ 5A@FDA> I;F: ;DEF !A>6;@9E DAGB ;@5>G6;@9
:A>6;@9 5A?B3@;7E 3@6 87>>AIEG4E;6;3D;7E
3D7 D7>3F76 7@F;F;7E
A8 ;DEF
!A>6;@9E DAGB EEA5;3F7E
3@6 ;@6;H;6G3>E AI@;@9 6;D75F>K AD ;@6;D75F>K 3@;@F7D7EF ;@ F:7 HAF;@9 BAI7D
A8 ;DEF
!A>6;@9E DAGB F:3F 9;H7EF:7? E;9@;8;53@F ;@8>G7@57 AH7DF:7 7@F7DBD;E7 =7K ?3@397?7@F B7DEA@@7> ;@5>G6;@9 6;D75FADE
3@6
A88;57DE A8 ;DEF
!A>6;@9E DAGB 3@6 5>AE7?7?47DE
A8
F:7
83?;>K
A8
F:7E7;@6;H;6G3>E 3@6 5A?B3@;7E
3EEA5;3F76 I;F: F:7E7;@6;H;6G3>E 3>EA5A@EF;FGF7 D7>3F76 7@F;F;7E -D3@E35F;A@E
47FI77@ D7>3F76 B3DF;7E 3D7
355AG@F76 8AD
3F
3D?NE >7@9F: BD;57E
AD
A@
F7D?EE;?;>3D
FA
F:AE7 A887D76
FA
@A@ D7>3F76
7@F;F;7E ;@
3@
75A@A?;53>>K 5A?B3D34>7 ?3D=7F

"@ 5A@E;67D;@9735:BAEE;4>7 D7>3F76 7@F;FK D7>3F;A@E:;B
3FF7@F;A@ ;E
6;D75F76 FA
F:7 EG4EF3@57
A8
F:7 D7>3F;A@E:;B
3@6
@AF ?7D7>KF:7 >793> 8AD?

-:7 E;9@;8;53@F
FD3@E35F;A@E
I;F:
3EEA5;3F7E
3@6
AF:7DD7>3F76 B3DF;7E
3F
?3D=7F
BD;57E ;@
F:7 @AD?3> 5AGDE7
A8
4GE;@7EE
3@6 F:7 D7>3F76 AGFEF3@6;@9 43>3@57E
3D76;E5>AE76 47>AI

3 )
3@6 ) 73D@3>>
A8
F:7;D ;@5A?7 8DA? E3>7
A8
7>75FD;5;FK FA &+%(
G@67DE7B3D3F7)) E77
'AF7 3 ;>>;@9E
FA &+%( FAF3>76 )  4;>>;A@ )  4;>>;A@
3@6 )  4;>>;A@ ;@    
3@6
  D7EB75F;H7>K (GFEF3@6;@9 D757;H34>7E 8DA?
&+%( 8DA?
F:7
E3>7 A8
7>75FD;5;FK 3D7 ;@5>G676 ;@
F:7 O-D367
3@6 AF:7DD757;H34>7EP
355AG@F 3@6 3?AG@F76 FA @;> 3@6 ) 
4;>>;A@
3E
A8 757?47D

  3@6   D7EB75F;H7>K E77 'AF7 

128 4 &3@397?7@FE7DH;57E
3D7 D7@67D76 4K ;DEF 7@ FA )) G@67D 57DF3;@
F7D?E
3@6
5A@6;F;A@E
A8 &3@397?7@F
A@FD35F A@FD35F ;@ 5A@E;67D3F;A@ A8
F:7
B3K?7@F
A8 ?3@397?7@F 877E ;E 8;J76
3F ) ?;>>;A@   ?;>>;A@
B7DK73D
78875F;H7#3@G3DK    (@ &3D5:    ;DEF 7@ 3@6 )) D7@7I76
F:7
A@FD35F
78875F;H78DA? #3@G3DK    G@F;>
F:7
7@6
A8
F:7
 K73D 5AAB7D3F;A@ B7D;A6
A8 F:7 )DA<75F 9D77?7@F
A8 )) I:;5: I;>>
7JB;D7;@#G>K   &3@397?7@F 877E
3?AG@F76
FA
  ?;>>;A@ ;@    
3@6  

5 &3;@F7@3@57 E7DH;57ED7@67D76 4K &+%( "@6GEFD;3> @9;@77D;@9 ,7DH;57E
ADBAD3F;A@ &",(+
3
EG4E;6;3DK
A8
&+%(
A@
F:7
 =;>A HA>F
FD3@E?;EE;A@ >;@7 8DA?
F:7
,3@F3
+;F3 B>3@F
FA
F:7
3>353 ,G4EF3F;A@;@3F3@93EG@67D
F:7 -D3@E?;EE;A@ %;@7 &3;@F7@3@57 9D77?7@F -:;E ;@HA>H7E
F:7 ?A@F:>K B3K?7@F A8 )  ?;>>;A@   ?;>>;A@
3ED7F3;@7D 877 3@6 )  ?;>>;A@   ?;>>;A@ 8AD
7H7DK E;J ?A@F:
B7D;A6 3EE7DH;57 877 I;F:4AF:877EEG4<75FFAB7D;A6;5 36 E7DH;57ED7CG7EF76 4K
F:7 )
AGFE;67
F:7 E5AB7
A8
F:7 39D77?7@F ;EEG4<75FFA?GFG3>
39D77?7@F
47FI77@ )
3@6 &",(+ -AF3>
7JB7@E73?AG@F76
FA   ?;>>;A@ ;@
  3@6   3@6   ?;>>;A@ ;@
 

6 )!"% 3@6 (+ 73D@
BADF;A@ A8
F:7;D ;@5A?7 8DA? E7>>;@9 43>>3EFE
3@6 BAI7D
FD3@E8AD?7DE
FA
&+%( ;>>;@9E
FA &+%( FAF3>76 )  ?;>>;A@ )   ?;>>;A@
3@6 ) ?;>>;A@ ;@    
3@6
  D7EB75F;H7>K (GFEF3@6;@9 D757;H34>7E 8DA?
&+%( 8AD
F:7 E3>7
A8
43>>3EFE 3@6 BAI7D
FD3@E8AD?7DE
3D7;@5>G676 ;@
F:7 O-D367
3@6 AF:7DD757;H34>7EP
355AG@F
3@6
3?AG@F76 FA)   ?;>>;A@ 3@6 )  ?;>>;A@ 3E
A8
757?47D

  3@6   D7EB75F;H7>K

7 -:7 ;DEF
!A>6;@9E DAGBBDAH;67E 36H3@57E
FA3EEA5;3F7E
3@6
AF:7DD7>3F76 B3DF;7E 8ADIAD=;@9 53B;F3> 3@6 ;@H7EF?7@FD7CG;D7?7@FE (GFEF3@6;@9
43>3@57
A8
F:7 36H3@57E
3?AG@F76 FA) ?;>>;A@ 3@6 ) ?;>>;A@
3E
A8
757?47D

 
3@6
  D7EB75F;H7>K >EA F:7 ;DEF
!A>6;@9E DAGB A4F3;@E 53E:36H3@57E 8DA? D7>3F76
B3DF;7E ;@
F:7 @AD?3> 5AGDE7
A8
4GE;@7EE

8 A?B7@E3F;A@
A8 =7K ?3@397?7@F
B7DEA@@7> 3D7
3E 8A>>AIE

   4 /22/549 ,:ADF F7D?
7?B>AK77 47@78;FE $  ) +7F;D7?7@F
47@78;FE E77 'AF7   ,:3D7 43E76 B3K?7@FE E77
'AF7
    $ )

 &246?@>.@6;:? C6@5 @52
;.>1 ;3
:B2?@92:@? # .:1 ):;>;BB;@7 5A@A?;5 [A@7 GF:AD;FK $N

+" )!"% )&- ) ) !K6DA 3@6 &'-
3D7 D79;EF7D76 I;F: F:7 ("
G@67D
F:7 (?@;4GE
"@H7EF?7@FE
A67
A8
 I:7D73E )") ))," ;DEF ):;>75 ,A>3D 3@6 ,+" 3D7 D79;EF7D76 I;F:)[BGDEG3@F
FA)D7E;67@F;3> )DA5>3?3F;A@ 'AE
 
3@6   3@6
+
'A
 ED79;EF7D76 7@F7DBD;E7E
F:7E7 EG4E;6;3D;7E
3D77@F;F>76 FA57DF3;@ F3J
3@6
@A@F3J ;@57@F;H7EI:;5: ;@5>G67
3?A@9 AF:7DE
"-!

-AF3> ;@57@F;H7E 3H3;>76A84KF:7E7 EG4E;6;3D;7E
3?AG@F76 FA) 4;>>;A@ 3@6 ) 
4;>>;A@ 8AD
F:7 K73DE 7@676
757?47D
   3@6   D7EB75F;H7>K

 6:.:06.8 &6?7 !.:.4292:@ #/O20@6B2?
.:1 $;86062?

;DEF
!A>6;@9E DAGBNE
BD;@5;B3> 8;@3@5;3> >;34;>;F;7E
3D75A?BD;E76
A8
FD367 B3K34>7E
4A@6E B3K34>7 >A3@E B3K34>7 3@6 >A@9 F7D?
674F
3?A@9
AF:7DE -:7 ?3;@ BGDBAE7A8
F:7E7 8;@3@5;3> >;34;>;F;7E ;E
FA
D3;E7 8;@3@5;@9 8AD ;DEF
!A>6;@9E DAGBNE
9DAIF: 3@6 AB7D3F;A@E ;DEF !A>6;@9E DAGB:3EH3D;AGE 8;@3@5;3> 3EE7FE
3@6 >;34;>;F;7EEG5: 3E 53E:
3@6
53E:7CG;H3>7@FE E:ADF F7D?;@H7EF?7@FE
FD367 D757;H34>7E  , 8;@3@5;3>
3EE7FE
FD367 B3K34>7E 3@6 AF:7D >;34;>;F;7EI:;5:
3D;E76;D75F>K 8DA? ;FE
AB7D3F;A@E

E
3
?3FF7D
A8
BA>;5K ;DEF
!A>6;@9E DAGB 6A7E @AF
FD367 ;FE 8;@3@5;3> ;@EFDG?7@FE

!AI7H7D ;DEF !A>6;@9E DAGB7@F7DE ;@FA67D;H3F;H7 3@6 :769;@9
FD3@E35F;A@E
BD;?3D;>K ;@F7D7EF D3F7 EI3BE 5GDD7@5K

129 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

8ADI3D63@6D3@97
4A@GE 8ADI3D6E 3E
@77676 8AD
F:7
EA>7 BGDBAE7
A8 ?3@39;@9
F:7 D;E=E
F:3F
3D7 3EEA5;3F76 I;F: ;DEF !A>6;@9E DAGBNE 4ADDAI;@9 35F;H;F;7E 3@6
3ED7CG;D76 4KF:7 >7@67DE ;@ 57DF3;@ 53E7E ;DEF
!A>6;@9E DAGB
:3E 3@ @F7DBD;E70;67
+;E=
&3@397?7@F )DA9D3? I:;5: ;E
3;?76
FA
;67@F;8KD;E=E
43E76 A@
F:7 >;=7>;:AA6
A8
A55GDD7@57 3@6 ;?B35F
FA
F:7 4GE;@7EE 8AD?G>3F7 D;E= ?3@397?7@FEFD3F79;7E 3EE7EE D;E= ?3@397?7@F 53B34;>;F;7E 3@6 5A@F;@GAGE>K ?A@;FAD
F:7 D;E= ?3@397?7@F
788ADFE

-:7 ?3;@ D;E=E
3D;E;@9 8DA? ;DEF
!A>6;@9E DAGBNE 8;@3@5;3> ;@EFDG?7@FE
3D7;@F7D7EF D3F7 D;E= 8AD7;9@ 5GDD7@5KD;E= 5D76;FD;E= 5D76;F 5A@57@FD3F;A@ D;E=
3@6 >;CG;6;FK D;E= -:7 ( D7H;7IE
3@6
3BBDAH7E BA>;5;7E 8AD ?3@39;@9
735: A8
F:7E7 D;E=E
3EEG??3D;L76 47>AI ;DEF !A>6;@9E DAGBNE
355AG@F;@9 BA>;5;7E ;@ D7>3F;A@
FA67D;H3F;H7E
3D7 E7F AGF ;@ 'AF7


"@F7D7EF +3F7+;E= -:7 ;DEF
!A>6;@9E DAGBNE 7JBAEGD7
FA
F:7 D;E=8AD 5:3@97E ;@ ?3D=7F ;@F7D7EF D3F7ED7>3F7E
BD;?3D;>KFA F:7 ;DEF !A>6;@9E DAGBNE >A@9
F7D?
674F
A4>;93F;A@EI;F:8>A3F;@9 ;@F7D7EF D3F7E ;DEF
!A>6;@9E DAGB 47>;7H7E
F:3F
BDG67@F ?3@397?7@F
A8 ;FE ;@F7D7EF 5AEF I;>> 7@F3;> 3
43>3@576 ?;J
A8
8;J76
3@6 H3D;34>7 D3F7 674F (@
3
D79G>3D 43E;E F:7 ;@3@57 F73?
A8 ;DEF
!A>6;@9E DAGB ?A@;FADE
F:7 ;@F7D7EF D3F77JBAEGD7 3@6 BD7E7@FE ;F
FA
?3@397?7@F 4KI3K
A8
3
5A?B>;3@57 D7BADF -A ?3@397 F:7 7JBAEGD7
FA8>A3F;@9 ;@F7D7EF D3F7E ;@
3
5AEF 788;5;7@F ?3@@7D
BD7B3K?7@F D78;@3@5;@9
AD 7@F7D;@9 ;@FA67D;H3F;H7;@EFDG?7@FE EG5:
3E ;@F7D7EF D3F7 EI3BE
3D7
G@67DF3=7@
3E 677?76
@757EE3DK 3@6 873E;4>7

"@
&3K   ) ;@ B3DF;5G>3D 7@F7D76 ;@FA
3@ ;@F7D7EF D3F7 EI3B
39D77?7@F ;@HA>H;@9
:3>8
A8 ;FE 4ADDAI;@9E
G@67DF:7   35;>;FK )
39D776 FA7J5:3@97
3F
EB75;8;76 ;@F7DH3>E
F:7
6;887D7@57 47FI77@ 8;J76 3@6 H3D;34>7 D3F7;@F7D7EF 3?AG@FE 53>5G>3F76
4KD787D7@57
FA F:7 39D776 GBA@ @AF;A@3> BD;@5;B3>
3?AG@F >EA ;@ 'AH7?47D
 
) 7@F7D76 ;@FA;@F7D7EF D3F7 EI3B
39D77?7@FE
FA
5AH7D F:7 ;@F7D7EF B3K?7@FE 8ADGB
FA  
A8 ;FE 5A?4;@76 674FG@67DF:7 AH7D76 3@6 .@5AH7D76 35;>;F;7E E77
'AF7  .@67D
F:7 EI3B 39D77?7@FE ) 39D776
FA
7J5:3@97 3FEB75;8;5 ;@F7DH3>E F:7 6;887D7@57
47FI77@ 8;J76
3@6 H3D;34>7 D3F7;@F7D7EF
3?AG@FE 53>5G>3F76 4KD787D7@57
FA
F:7 39D776 GBA@ @AF;A@3>
BD;@5;B3>
3?AG@FE

-:7 ;@F7D7EF D3F7E
A8 EA?7 A8 NE >A@9 F7D?
674F
3D78;J76
3FF:7 ;@57BF;A@
A8
F:7 >A3@ 39D77?7@F

E
A8
757?47D

 
3@6  
3BBDAJ;?3F7>K 
3@6  D7EB75F;H7>K A8 ;DEF
!A>6;@9E DAGBNE 4ADDAI;@9E
3D7 EG4<75F
FA
8;J76 ;@F7D7EF D3F7
38F7D 5A@E;67D;@9
F:7
78875F
A8 ;FE ;@F7D7EF D3F7 EI3B 39D77?7@F

-:7 8A>>AI;@9 F34>7 67?A@EFD3F7E
F:7 E7@E;F;H;FK
FA
3
D73EA@34>K
BAEE;4>7 5:3@97 ;@ ;@F7D7EF D3F7E 8AD
F:7
K73D 7@676 757?47D
   I;F:3>>H3D;34>7E :7>6 5A@EF3@F
A8
F:7
;DEF
!A>6;@9E DAGB ;@5A?7 478AD7
F3J
3@6 7CG;FK F:DAG9:
F:7 ;?B35F
A8 8>A3F;@9 D3F7
4ADDAI;@9E ?3D= FA ?3D=7FH3>G3F;A@A8 , 8;@3@5;3>
3EE7FE 3@6 67D;H3F;H7
3EE7FE
3@6 >;34;>;F;7E

8875F "@5D73E7 A@
"@5A?7 75D73E7 78AD7 8875F ;@
3E;E
)A;@FE "@5A?7 -3J A@
CG;FK 4 /22/549  )3D7@F
A?B3@K

8>A3F;@9
D3F74ADDAI;@9E J $  $     ,G4E;6;3D;7E

8>A3F;@9
D3F74ADDAI;@9E . ,
A>>3D J         ):;>;BB;@7
)7EA J   H   H #3B3@7E727@ J   H  H GDAB73@
GDA J   H   H

130 8875F "@5D73E7 A@
"@5A?7 75D73E7 78AD7 8875F ;@
3E;E
)A;@FE "@5A?7 -3J A@
CG;FK 4 /22/549  )3D7@F
A?B3@K

8>A3F;@9
D3F74ADDAI;@9E  ) )    ,G4E;6;3D;7E

8>A3F;@9
D3F74ADDAI;@9E       

-:7
78875F
A8 5:3@97E ;@ ;@F7D7EF D3F7E ;@ 7CG;FK B7DF3;@E
FA
67D;H3F;H7E
355AG@F76 8AD
G@67D 53E:8>AI :7697E
3@6  , 8;@3@5;3> 3EE7FE
3@6
;E 7J5>GE;H7
A8
F:7 ;?B35F
A8 5:3@97E
38875F;@9 ;DEF !A>6;@9E DAGBNE 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

"@F7D7EF +3F7+;E= -34>7 -:7
F7D?E
3@6
?3FGD;FK
BDA8;>7
A8
F:7 ;@F7D7EF 473D;@9 8;@3@5;3> ;@EFDG?7@FE
FA97F:7D
I;F:;FE 53DDK;@9 H3>G7E 3D7 E:AI@;@
F:7 8A>>AI;@9 F34>7E

:@2>2?@ +6@56: !;>2 @5.: &.@2? -2.> H -2.>? H -2.>?  -2.>? (;@.8 4 /22/549  8;.@6:4 &.@2 )3D7@F )7EA
FD3@5:7 
9;:@5? $'( J $H$  $  $  $ A>>3D
FD3@5:7 
9;:@5? #& J H    H  ,G4E;6;3D;7E %A3@E B3K34>7 %A53> 4D;697 ., A>>3D  H    HHH   %A53> D;697 ):;>;BB;@7 )7EA    HHH  ,:ADF F7D? >A3@    HHH )" >A3@E  H   HHH  ( >A3@E    HHH ,F3B>7 ;@3@5;@9    HHH  %A@9 F7D? 674F ,    HHH  .@5AH7D76 35;>;FK         35;>;FK        $ AH7D76 35;>;FK         "+ >A3@E     HH &;K3L3I3
"
 H   HHH  (4>;93F;A@E
FA 3E ,7>>7DE A@ @@G3> 78;5;7@5K    HHH  +757;H34>7E 8DA? &+%( A@
@@G3> 78;5;7@5K     HHH   6H3@57E
FA3?;@AD;FK EFA5=:A>67D       

 8;.@6:4 &.@2 )3D7@F )7EA
FD3@5:7 ?AE
),-   Q        A>>3D
FD3@5:7 ?AE %"(+   Q     Q   ,G4E;6;3D;7E %A3@E B3K34>7 AD7;9@ 4D;697      QQQ   %A53> 4D;697 ., A>>3D     QQQ  %A53> 4D;697 ):;>
)7EA     QQQ  ,:ADF F7D? >A3@    QQQ ,F3B>7 ;@3@5;@9   Q   QQ  %A@9 F7D? 674F ,    Q   QQ  &7J;? &75;4 35;>;FK      QQ &7J;? 35;>;FK      QQ   35;>;FK         $ AH7D76 35;>;FK         

 ADI3D6

131 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

"@F7D7EF 0;F:;@ &AD7
F:3@ +3F7E 
273D Q
273DE Q
273DE 
273DE -AF3> 4 /22/549 "+ >A3@E   )  )  )Q )  )  )"+ A@6E  Q   QQQ  &;K3L3I3
"
  Q    QQ   %3@6
3@=    QQQ (4>;93F;A@E
FA 3E ,7>>7DE A@ @@G3> 78;5;7@5K  Q      QQ  +757;H34>7E 8DA? &+%( A@ @@G3> 78;5;7@5K  Q      QQ 

 >)2;*/4- 5;:6;:
<'2;+ '**+*
:'>

>A3F;@9 ;@F7D7EF D3F7E
A@
8;@3@5;3> ;@EFDG?7@FE
3D7 D7BD;576 E7?; 3@@G3>>K A@ 735: ;@F7D7EF B3K?7@F
63F7 ;@3@5;3> ;@EFDG?7@FE
A8
F:7
;DEF
!A>6;@9E DAGB
F:3F 3D7
@AF ;@5>G676 ;@
F:7 34AH7
F34>7 3D78;J76 AD
@A@ ;@F7D7EF 473D;@9 8;@3@5;3> ;@EFDG?7@FE
F:GE
@AFEG4<75FFA;@F7D7EF D3F7 D;E=

AD7;9@
GDD7@5K +;E= ;DEF
!A>6;@9E DAGBNE
7J57BF ;DEF 7@ DAGB ,+" ," )) ;DEF ):;>75 ,A>3D ! "@F7D@3F;A@3> )! G@6 3@6 )! /7@FGD7
7JBAEGD7
FA
8AD7;9@ 5GDD7@5KD;E=
3D;E7E ?3;@>K 8DA? 53E: E:ADF F7D? ;@H7EF?7@FE
3@6 >A@9 F7D? >;34;>;F;7E 67@A?;@3F76 ;@ . , 6A>>3D @K 67BD75;3F;A@ A8
F:7
. , 6A>>3D 393;@EF
F:7 ):;>;BB;@7 B7EABAEFE ?3F7D;3> 8AD7;9@
7J5:3@97 >AEE7ED7>3F;@9 FA53E:
3@6 E:ADF F7D? ;@H7EF?7@FE
FD367 3@6 AF:7DD757;H34>7E 67BAE;F 3@6 6G7 FA D7>3F76 B3DF;7EI:;>7 3@K 3BBD75;3F;A@
A8
F:7
. , 6A>>3D 3@6 AF:7D 5GDD7@5;7E
BAEFE ?3F7D;3> 8AD7;9@
7J5:3@97 >AEE7ED7>3F;@9 FA >A@9 F7D?
67BAE;FE -A 47FF7D ?3@397
F:7 8AD7;9@ 7J5:3@97 D;E= EF34;>;L753E:8>AIE
3@6 8GDF:7D ;?BDAH7
F:7 ;@H7EF?7@F
3@6 53E:8>AI
B>3@@;@9 ;DEF !A>6;@9E DAGB?3K 5A@E;67D
7@F7D;@9 ;@FA
67D;H3F;H75A@FD35FE
3@6 AF:7D :769;@9
BDA6G5FE
3E
@757EE3DK

!AI7H7D F:7E7 :7697E
6A
@AF 5AH7D 3>>
F:7
7JBAEGD7
FA
8AD7;9@ 7J5:3@97 D;E=

-:7 8AD7;9@ 5GDD7@5K 67@A?;@3F76
3EE7FE
3@6 >;34;>;F;7E
I:;5: B7DF3;@ FA
F:7
. , 6A>>3D
3D7
F:7@ FD3@E>3F76 FA ):;>;BB;@7 B7EA
47;@9
F:7 8G@5F;A@3> 3@6 BD7E7@F3F;A@ 5GDD7@5K 8ADEF3FGFADK D7BADF;@9 BGDBAE7E "@
FD3@E>3F;@9
F:7E78AD7;9@ 5GDD7@5K 67@A?;@3F76 ?A@7F3DK 3EE7FE 3@6 >;34;>;F;7E ;@FA ):;>;BB;@7
B7EA
F:7
7J5:3@97 D3F7EGE76 I7D7)  FA
., 3@6 ) 
FA
.,
F:7 ):;>;BB;@7 B7EA
. , 6A>>3D
7J5:3@97 D3F7E
3E
A8
757?47D

  3@6   D7EB75F;H7>K

-:7
F34>7
47>AIEG??3D;L7E
F:7
;DEF !A>6;@9E DAGBNE
7JBAEGD7
FA
8AD7;9@ 7J5:3@97 D;E=
3E
A8 757?47D

  3@6  

 =A6B.82:@ ) '
;88.> $5686<<6:2 $2?; 2:;96:.@21 2:;96:.@21 EE7FE .8.:02? .8.:02? 4 /22/549 ;@3@5;3>
3EE7FE 3E:
3@6 53E:7CG;H3>7@FE  $  -D367
3@6
AF:7DD757;H34>7E 


  ;@3@5;3> >;34;>;F;7E -D367
B3K34>7 3@6 AF:7D
B3K34>7E  %A@9 F7D?
674F
;@5>G6;@9 5GDD7@F BADF;A@    (F:7DE  -AF3> 8;@3@5;3> >;34;>;F;7E    '7F 8AD7;9@ 5GDD7@5K 67@A?;@3F76 >;34;>;F;7E    $ 

132   CG;H3>7@F . , A>>3D ):;>;BB;@7 )7EA 7@A?;@3F76 7@A?;@3F76 EE7FE 3>3@57E 3>3@57E 4 /22/549 ;@3@5;3>
3EE7FE 3E:
3@6 53E:7CG;H3>7@FE  )  -D367
3@6
AF:7DD757;H34>7E   7BAE;F    G78DA? D7>3F76 B3DF;7E    -AF3> 8;@3@5;3> 3EE7FE

  ;@3@5;3> >;34;>;F;7E -D367
B3K34>7 3@6 AF:7D
B3K34>7E   %A@9 F7D?
674F
;@5>G6;@9 5GDD7@F BADF;A@     -AF3> 8;@3@5;3> >;34;>;F;7E    '7F 8AD7;9@ 5GDD7@5K 67@A?;@3F76
3EE7FE  )

-:7 8A>>AI;@9 F34>7 E7FE AGF
F:7 ;?B35F
A8
F:7
D3@97
A8 D73EA@34>K BAEE;4>7 ?AH7?7@F ;@ F:7
. , A>>3D 3@6 ):;>;BB;@7
B7EA
7J5:3@97 D3F7EI;F:3>>AF:7DH3D;34>7E :7>6 5A@EF3@F ;DEF
!A>6;@9E DAGBNE ;@5A?7 478AD7 ;@5A?7
F3J 6G7
FA
5:3@97E ;@
F:7 83;DH3>G7
A8 ?A@7F3DK
3EE7FE
3@6 >;34;>;F;7E8AD
F:7 K73D 7@676 757?47D

  3@6   -:7D7;E
@A AF:7D ;?B35F
A@
F:7 )! 7CG;FK AF:7D
F:3@
F:AE73>D736K 38875F;@9
F:7
5A@EA>;63F76 EF3F7?7@FE
A8 ;@5A?7

:3@97 ;@ J5:3@97
+3F7 8875F
A@
"@5A?7
478AD7
"@5A?7 -3J ;@
. , A>>3D 393;@EF ):;>;BB;@7 )7EA    4 /22/549  $  )  $ )

;DEF 7@NE
7JBAEGD7 FA8AD7;9@ 5GDD7@5KD;E=
3D;E7E
3E
F:7
8G@5F;A@3> 5GDD7@5K
A8 ;DEF 7@ 3@6 57DF3;@ EG4E;6;3D;7E F:7 . ,
A>>3D ;E
@AFF:7 >A53> 5GDD7@5K ;@ ;FE 5AG@FDK A8
AB7D3F;A@E
7DF3;@ 8;@3@5;3>
3EE7FE 3@6 >;34;>;F;7E 3EI7>> 3EEA?7 5AEFE
3@6
7JB7@E7E
3D7
67@A?;@3F76 ;@ ):;>;BB;@7 )7EA
AD ;@ #3B3@7E7 27@ ;@ F:7 53E7
A8  -A ?3@397
F:7 8AD7;9@ 5GDD7@5KD;E= ;DEF 7@ ?3K 5A@E;67D
7@F7D;@9 ;@FA 67D;H3F;H7
FD3@E35F;A@E 3E @757EE3DK "F
:3E @AF 7@F7D76 ;@FA3@K 67D;H3F;H7
FD3@E35F;A@EFA5AH7D
F:7 8AD7;9@
7J5:3@97 8>G5FG3F;A@E

&AD7AH7D ;DEF 7@
:3E
3
@3FGD3> :7697 I;F: D793D6
FA
;FE ):;>;BB;@7 )7EA 4A@6EE;@57 ;FD757;H7E 53E:
6;H;67@6E 8DA? 
3@6 !K6DA;@):;>;BB;@7)7EA

"@
F:7 53E7
A8  ;FE 8AD7;9@ 5GDD7@5KD;E=
BD;?3D;>K 3D;E7E 8DA? 8GFGD7
B3K?7@FE A8 8AD7;9@ >A3@E (- A4>;93F;A@E
AF:7D 5A??7D5;3>
FD3@E35F;A@E
3@6 ;FE ;@H7EF?7@F ;@
+() 4A@6E
"FE 7JBAEGD7
FA
8AD7;9@ 5GDD7@5KD;E=
FA
EA?7
679D77 ;E ?;F;93F76 4KEA?7
BDAH;E;A@E ;@6;53F76 ;@ NE ,E ,,E
3@6 ))E -:7 ,E 3>>AI 8G>> 5AEF D75AH7DK I:;>7
F:7 ,, ;@5>G67 4;>>;@9 36;BB;@7 )7EA
3@6
F:7
. , A>>3DD3F7E
. , )D;57
3@6
A@EG?7D ;@6;57E 3@6 AF:7D ;@8>3F;A@ 835FADE

"@
   7@F7D76 ;@FA67D;H3F;H75A@FD35FE I;F: H3D;AGE 5AG@F7DB3DF;7EFA?;@;?;L7;FE 8AD7;9@ 5GDD7@5K D;E=E
3D;E;@9 8DA? ;FE
&;K3L3I3
 >A3@E E77
'AF7 

133 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7 8A>>AI;@9 F34>7 E7FE AGF
F:7
#3B3@7E7 27@ 67@A?;@3F76
3@6 ):;>;BB;@7 )7EA 67@A?;@3F76 8;@3@5;3> 3EE7FE
3@6 >;34;>;F;7E
3E
A8
757?47D

  3@6  
F:3F ?3K
38875F
F:7
5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
A8 ;DEF
!A>6;@9E DAGB

   #>646:.8 A>>2:0E (D;9;@3> GDD7@5K $5686<<6:2 ):;>;BB;@7 .<.:2?2 $2?; =A6B.82:@ )7EA CG;H3>7@F -2: 12:;96:.@21 ) ' ;88.> #3B3@7E727@ 67@A?;@3F76 . , A>>3D .8.:02? .8.:02? .8.:02 3>3@57E 3>3@57E 3>3@57E 4 /22/549 6:.:06.8 ??2@? 3E: 3@6 53E:7CG;H3>7@FE I  $    R  )     -D367 3@6 AF:7DD757;H34>7EQ  Q      %A@9 F7D? D757;H34>7E ;@5>G6;@9 5GDD7@F BADF;A@ Q     Q      ,
8;@3@5;3> 3EE7FE Q   Q    +7EFD;5F76 53E: 67BAE;FE Q    Q                6:.:06.8 6./686@62? %A3@E B3K34>7 H    Q     -D367 B3K34>7E 3@6 AF:7D
5GDD7@F >;34;>;F;7E     Q       %A@9 F7D? 674F ;@5>G6;@9
5GDD7@F BADF;A@             +AK3>FK
877 B3K34>7 ;@5>G6;@9 5GDD7@F BADF;A@ Q    Q      A@6E B3K34>7 Q   Q                     '7F
8;@3@5;3> >;34;>;F;7E 3EE7FE I $     R   )   

"@
FD3@E>3F;@9 F:7E78AD7;9@ 5GDD7@5K 67@A?;@3F76 ?A@7F3DK 3EE7FE
3@6 >;34;>;F;7E ;@FA
. , A>>3D F:7 7J5:3@97 D3F7E
GE76 I7D7 R  FA 
3@6 R  FA  F:7 #3B3@7E7 27@
. ,
A>>3D 7J5:3@97 D3F73E
A8
757?47D

  3@6   D7EB75F;H7>K I:;>7 )  FA  3@6 )  FA  I7D7 F:7 ):;>;BB;@7 )7EA . , A>>3D 7J5:3@97 D3F7E
3E
A8
757?47D

  3@6   D7EB75F;H7>K

-:7 8A>>AI;@9 F34>7 E7FE AGF 8AD
F:7 K73DE
7@676
757?47D

 
3@6
  F:7 ;?B35F
A8
F:7
D3@97 A8 D73EA@34>K BAEE;4>7 ?AH7?7@F ;@
F:7 . ,
A>>3D #3B3@7E727@
3@6 ):;>;BB;@7 )7EA
7J5:3@97 D3F7EI;F: 3>>
AF:7DH3D;34>7E :7>6 5A@EF3@F ;DEF 7@NE ;@5A?7
478AD7 ;@5A?7
F3J
3@6 7CG;FK 6G7
FA
5:3@97E ;@
F:7 83;DH3>G7 A8 ?A@7F3DK 3EE7FE
3@6 >;34;>;F;7E

   5.:42 6: 5.:42 6: 5.:42 6: :3@97 ;@ :3@97 ;@ D05.:42 &.@2 D05.:42 &.@2 D05.:42 &.@2 J5:3@97 +3F7 J5:3@97 +3F7 6: A>;<2.: A>; 6: .<.:2?2 -2: 6: $5686<<6:2
$2?; ;@
#3B3@7E7
27@ ;@
):;>;BB;@7
)7EA .4.6:?@ ) ' ;88.> .4.6:?@ ) ' ;88.> .4.6:?@ ) ' ;88.> 393;@EF . , A>>3D 393;@EF . , A>>3D 4 /22/549 8875F A@ ;@5A?7 478AD7 ;@5A?7
F3J                       8875F A@ 7CG;FK HHHH     QQ   

-:7
78875F
A8 5:3@97E ;@ 8AD7;9@ 5GDD7@5KD3F7E ;@ 7CG;FK ;E 7J5>GE;H7
A8
F:7 ;?B35F
A8 5:3@97E
38875F;@9 ;DEF
!A>6;@9E DAGBNE 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

CG;FK )D;57 +;E= CG;FK
BD;57 D;E=;E
F:7
D;E=
F:3F
F:7 83;DH3>G7A8
FD3676 7CG;FK ;@EFDG?7@FE
675D73E7
3E
F:7 D7EG>F
A8
F:7
5:3@97E ;@ F:7 >7H7>E
A8
7CG;FK ;@6;57E
3@6
F:7 H3>G7A8
F:7
;@6;H;6G3> EFA5=E

E
A8
757?47D

 
3@6   ;DEF
!A>6;@9E DAGBNE
7JBAEGD7 FA
7CG;FK BD;57 D;E=;E ?;@;?3>

134 D76;F +;E= -:7 ;DEF
!A>6;@9E DAGB
FD367E A@>KI;F: D75A9@;L76 5D76;FIADF:KF:;D6
B3DF;7E 3@6 AD
FD3@E35FE
A@>KI;F: ;@EF;FGF;A@E 3@6 AD 43@=E
I:;5: :3H7 67?A@EFD3F76 8;@3@5;3> EAG@6@7EE

"F
;EF:7 ;DEF
!A>6;@9E DAGBNE BA>;5KF:3F 3>> 5GEFA?7DE I:A I;E: FA
FD367A@5D76;F
F7D?E
3D7 EG4<75F
FA
5D76;FH7D;8;53F;A@ BDA576GD7E
"@
366;F;A@ D757;H34>7 43>3@57E
3@6 F:7 >7H7>
A8
3>>AI3@57
3D7 ?A@;FAD76
3@6 D7H;7I76 A@
3
5A@F;@GAGE 43E;E -:7D7EG>F
A8 EG5: D7H;7ID7H73>76 F:3FF:7 ;DEF
!A>6;@9E DAGBNE
7JBAEGD7
FA 436 674FE ;E
@AF E;9@;8;53@F

0;F: D7EB75F
FA
5D76;FD;E=
3D;E;@9 8DA?
F:7
AF:7D 8;@3@5;3>
3EE7FE
A8
F:7 ;DEF
!A>6;@9E DAGB I:;5: 5A?BD;E7?AEF>K A8 53E:
3@6 53E:
7CG;H3>7@FE E:ADF F7D?;@H7EF?7@FE
FD367 3@6 AF:7DD757;H34>7E 5A@57EE;A@ D757;H34>7E D757;H34>7 8DA?
&+%( 3@6  , 8;@3@5;3>
3EE7FE F:7 ;DEF
!A>6;@9E DAGBNE 7JBAEGD7
FA5D76;FD;E=
3D;E7E 8DA?
6783G>F
A8
F:7
5AG@F7DB3DFK I;F:
3
?3J;?G?
7JBAEGD7
7CG3>
FA F:7 53DDK;@9
3?AG@F
A8
F:7E7;@EFDG?7@FE

8+*/: "/91 >659;8+ -:7 F34>7 47>AIE:AIE F:7 9DAEE ?3J;?G?
7JBAEGD7
FA
5D76;FD;E=
A8 ;DEF !A>6;@9E DAGB3E
A8
757?47D

 
3@6
757?47D

  I;F:AGF 5A@E;67D;@9
F:7
78875FE
A8 5A>>3F7D3>E
3@6
AF:7D 5D76;FD;E=?;F;93F;A@
F75:@;CG7E

   4 /22/549 3E:
3@6 53E:7CG;H3>7@FE $  )  ,:ADF F7D?;@H7EF?7@FE  Q -D367
3@6
AF:7DD757;H34>7E -D367     (F:7DE     %A@9 F7D? D757;H34>7E A@57EE;A@ D757;H34>7E     +757;H34>7 8DA?
&+%(
A@
3@@G3> 678;5;7@5K     (F:7D >A@9 F7D? D757;H34>7E
@7F
  6H3@57EFA
3
?;@AD;FK E:3D7:A>67D  Q  , ;@H7EF?7@FE     +AK3>FK 877E 5:3D9734>7 FA ')  +7EFD;5F76 53E:67BAE;FE   7D;H3F;H7
3EE7F  Q (F:7D 5GDD7@F
3EE7FE   -AF3> 5D76;F 7JBAEGD7 $   ) 

-/4- 4'2?9/9
5,
/4'4)/'2 99+:9 -:7
F34>7 47>AIE:AIE
F:7
;DEF
!A>6;@9E DAGBE 5D76;FCG3>;FK 3@6 39;@9
A8
FD367 3@6 AF:7DD757;H34>7E
3E
A8
757?47D

 
3@6
757?47D

 

 "26@52> $.?@ A2 /A@ :;@ 9<.6>21 9<.6>21 (;@.8 $.?@ A2 :;> L

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

135 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

  '7;F:7D )3EF G74GF @AF
"?B3;D76 "?B3;D76 -AF3> )3EF G7 @AD Y        Z  "?B3;D76 3KE 3KE 3KE 3KE 3KE -AF3> 4 /22/549 3E: 3@6 53E:7CG;H3>7@FE )  )Q )Q )Q )Q )Q )Q )Q )  -D367 3@6 AF:7DD757;H34>7E             %A@9 F7D? D757;H34>7E A@57EE;A@ D757;H34>7E   QQQQQQQ  +757;H34>7 8DA? &+%(   QQQQQQQ  (F:7D >A@9 F7D? D757;H34>7EQ            , ;@H7EF?7@FE   QQQQQQQ  +AK3>FK 877E 5:3D9734>7 FA ')  QQQQQQQ +7EFD;5F76 53E:67BAE;FE  QQQQQQQ (F:7D 5GDD7@F 3EE7FE  QQQQQQQ )  )  ) ) ) ) ) )  )  

E
A8
757?47D

 
3@6   ;DEF
!A>6;@9E DAGB D75A9@;L76
3BDAH;E;A@ 8AD ;?B3;D?7@F >AEE7E A@ D757;H34>7E
3?AG@F;@9 FA) ?;>>;A@ 3@6 ) ?;>>;A@ D7EB75F;H7>K ,77 'AF7


8+*/: E;'2/:?
5,
+/:.+8 !'9:
;+
58
36'/8+* /4'4)/'2 99+:9 -:7 7H3>G3F;A@ A8
F:7
5D76;F
CG3>;FK
A8 ;DEF
!A>6;@9E DAGBNE 8;@3@5;3>
3EE7FE 5A@E;67DE
F:7 34;>;FK A8
F:7
5AG@F7DB3DFK FA E7FF>7
F:7;D A4>;93F;A@ 3@6 B3K?7@F :;EFADK A8
F:7 5AG@F7DB3DF;7E

;@3@5;3>
3EE7FE
3D7 5>3EE;8;76
3E :;9:
9D367 ;8
F:7
5AG@F7DB3DF;7E
3D7
@AF
7JB75F76
FA 6783G>F ;@ E7FF>;@9 F:7;D A4>;93F;A@E F:GE 5D76;FD;E=
7JBAEGD7;E ?;@;?3> -:7E75AG@F7DB3DF;7E @AD?3>>K ;@5>G67 43@=E D7>3F76 B3DF;7E 3@6 5GEFA?7DE I:A B3K A@ AD
478AD76G763F7 ;@3@5;3> 3EE7FE 3D75>3EE;8;76 3EEF3@63D6 9D367 ;8
F:7
5AG@F7DB3DF;7EE7FF>7 F:7;D
A4>;93F;A@EFA ;DEF
!A>6;@9E DAGB I;F:
FA>7D34>7 67>3KE

E
A8
757?47D

 
F:7 8;@3@5;3>
3EE7FE 53F79AD;L76
3E
@7;F:7D
B3EF 6G7
@AD ;?B3;D76
3D7 H;7I76 4K ?3@397?7@F
3E
:;9: 9D367 5A@E;67D;@9
F:7 5A>>75F;4;>;FK A8
F:7
D757;H34>7E 3@6 F:7 5D76;F :;EFADK
A8
F:7
5AG@F7DB3DF;7E

D76;F A@57@FD3F;A@ +;E= -:7 ;DEF
!A>6;@9E DAGB F:DAG9: ;DEF 7@NE
AB7D3F;@9 EG4E;6;3D;7E ) 3@6 ) 73D@E
3
EG4EF3@F;3> BADF;A@
A8 ;FE D7H7@G7E 8DA?
&+%( &+%( ;E 5A??;FF76
FAB3K 8AD
F:7
53B35;FK 3@6 7@7D9K 97@7D3F76 4K
F:7 ,3@ %AD7@LA
3@6
F:7 ,3@F3
+;F3BAI7D
B>3@FE G@67DF:7 7J;EF;@9 >A@9 F7D? ))EI:;5: 3D7
6G7
FA7JB;D7;@,7BF7?47D
 
3@6 G9GEF   D7EB75F;H7>K 0:;>7
F:7 ))E
BDAH;67 8AD
F:7
?75:3@;E?E 4KI:;5: 57DF3;@ 5AEFE 3@6 A4>;93F;A@E ;@5>G6;@9 8G7> 5AEFE
3?A@9 AF:7DE
3D7
FD73F76
3E OB3EE F:DAG9:PFA &+%(
AD
3D7
AF:7DI;E7 D75AH7D34>7 8DA?
&+%( ;F ;EF:7 ;@F7@F;A@
A8 ;DEF 7@ )
3@6 ) FA7@EGD7 F:3FF:7 B3EE F:DAG9: ?75:3@;E?E
3E
BDAH;676 8AD ;@ F:7;DD7EB75F;H7)) 3D7 8A>>AI76

.@67DF:7 5GDD7@FD79G>3FADK D79;?7
97@7D3F;A@ D3F75:3D976 4K ) 3@6 ) FA &+%(
3D7
@AF EG4<75F
FA
D79G>3F;A@E
3@6 3D7 5A?B>7F7
B3EE F:DAG9: 5:3D97E
FA &+%(N,5GEFA?7DE

NE 97AF:7D?3>
3@6
BAI7D
97@7D3F;A@ 4GE;@7EE
FD367E
I;F:
A@>K A@7 ?3>76 5ADBAD3F;A@ @K 83;>GD7
A@ F:7 B3DF A8
') FAB3K ;FE A4>;93F;A@E
FA
 IAG>6 E;9@;8;53@F>K
38875F NE
4GE;@7EE
AB7D3F;A@E E 3 ?3@@7D
A8
BD35F;57  ?A@;FADE 5>AE7>K ;FE 5A>>75F;A@EI;F: ') 3@6 5:3D97E ;@F7D7EF A@ 67>3K76 B3K?7@FE 8A>>AI;@9
F:7
BDAH;E;A@ ;@ F:7 D7EB75F;H7,,E
3@6 ))E

;DEF
!A>6;@9E DAGBNE
7JBAEGD7
FA
5D76;FD;E=
3D;E7E 8DA?
6783G>F
A8
F:7
5AG@F7DB3DFK I;F:3?3J;?G? 7JBAEGD77CG3> FA
F:7 53DDK;@9 3?AG@FE
A8
F:7
D757;H34>7E 8DA?
&+%( ;@ F:7 53E7
A8 ) 3@6 ) 3@6 D757;H34>7E 8DA?
') ;@
F:7 53E7
A8 

136 -:7
F34>7
47>AIE:AIE
F:7 D;E=
7JBAEGD7;@D7EB75FFA5D76;F 5A@57@FD3F;A@A8 ;DEF
!A>6;@9E DAGB3E
A8 757?47D

  3@6  

   4 /22/549 -D367 D757;H34>7E 8DA? &+%( $  )  ')    +757;H34>7E 8DA?
&+%(
A@
@@G3> 78;5;7@5K     A@57EE;A@ D757;H34>7E     +AK3>FK 877E 5:3D9734>7 FA ')  -AF3> 5D76;F 5A@57@FD3F;A@ D;E= $  ) 

-D367
3@6
AF:7DD757;H34>7E $  )  %A@9 F7D? D757;H34>7E     -AF3> D757;H34>7E $  ) 

D76;F 5A@57@FD3F;A@ B7D57@F397    

%;CG;6;FK +;E= ;DEF
!A>6;@9E DAGBNE
7JBAEGD7
FA>;CG;6;FK D;E= D787DE FA
F:7 >35=
A8 8G@6;@9 @77676
FA 8;@3@57 ;FE
9DAIF: 3@6 53B;F3> 7JB7@6;FGD7E E7DH;57 ;FE ?3FGD;@9 >A3@ A4>;93F;A@E ;@
3 F;?7>K 83E:;A@ 3@6 ?77F ;FE IAD=;@9 53B;F3> D7CG;D7?7@FE -A ?3@397
F:;E
7JBAEGD7 ;DEF !A>6;@9E DAGB ?3;@F3;@E ;@F7D@3>>K 97@7D3F76 8G@6E
3@6 BDG67@F>K ?3@397E
F:7 BDA5776E A4F3;@76 8DA? 8G@6 D3;E;@9 ;@
F:7 674F 3@6 7CG;FK ?3D=7FE (@ 3 D79G>3D 43E;E ;DEF !A>6;@9E DAGBNE
FD73EGDK 67B3DF?7@F ?A@;FADE
F:7 3H3;>34>7 53E:
43>3@57E ;DEF !A>6;@9E DAGB ?3;@F3;@E 3>7H7>
A8 53E:3@653E:7CG;H3>7@FE 677?76 EG88;5;7@F
FA
8;@3@57
F:7 AB7D3F;A@E

"@
366;F;A@ ;DEF !A>6;@9E DAGB
:3EE:ADF F7D?53E:;@H7EF?7@FE
3@6
:36 3H3;>34>7 5D76;F >;@7EI;F: 57DF3;@ 43@=;@9 ;@EF;FGF;A@E )
3@6 ) ;@ B3DF;5G>3D ?3;@F3;@ 3
74F ,7DH;57
+7H7@G7 55AG@F
FA
EGEF3;@ F:7 674FE7DH;57 D7CG;D7?7@FE 8AD
F:7
@7JF B3K?7@F
B7D;A6 E B3DF
A8 ;FE >;CG;6;FK D;E= ?3@397?7@F ;DEF
!A>6;@9E DAGB D79G>3D>K 7H3>G3F7E ;FE
BDA<75F76
3@6
35FG3> 53E:8>AIE
"F
3>EA 5A@F;@GAGE>K 3EE7EE7E
F:7
8;@3@5;3> ?3D=7F 5A@6;F;A@E 8AD
ABBADFG@;F;7E
FABGDEG78G@6 D3;E;@9
35F;H;F;7E E
A8
757?47D

    A8 ;DEF
!A>6;@9E DAGBNE
674FI;>> ?3FGD7;@>7EE
F:3@
A@7 K73D 43E76 A@
F:7 53DDK;@9 H3>G7
A8
4ADDAI;@9ED78>75F76 ;@ F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

-:7
F34>7 EG??3D;L7E
F:7 ?3FGD;FK
BDA8;>7
A8
F:7
;DEF
!A>6;@9E DAGBNE 8;@3@5;3> >;34;>;F;7E
3E
A8 757?47D

  3@6
757?47D

  43E76
A@ 5A@FD35FG3> G@6;E5AG@F76 B3K?7@FE

 #: 2?? @5.: @; M @; !;>2 @5.: 29.:1 !;:@5? !;:@5?  -2.>?  -2.>? (;@.8 4 /22/549 6:.:06.8 6./686@E :?@>A92:@? .>>621 .@ 9;>@6F21 ;?@ %A3@E B3K34>7 $Q $  $  $Q $Q $ -D367 B3K34>7E 3@6 AF:7D 5GDD7@F >;34;>;F;7E      Q  +AK3>FK 877 B3K34>7 Q  QQQ  A@6E B3K34>7 Q    Q   %A@9 F7D? 674F ;@5>G6;@9 5GDD7@F BADF;A@ H           (4>;93F;A@ FA 3E ,7>>7DE ;@5>G6;@9
5GDD7@F BADF;A@ Q   HH  787DD76 B3K?7@F 835;>;FK I;F: ),%& ;@5>G6;@9 5GDD7@F BADF;A@ 'AF7 QQ   Q  (4>;93F;A@ FABAI7D
5A@FD35FADE ;@5>G6;@9 5GDD7@F BADF;A@ Q   Q H              6:.:06.8 6./686@E :?@>A92:@? .@
*$ AD7;9@ 5GDD7@5K 8ADI3D6 QQ HH 6:.:06.8 6./686@E 2?64:.@21 .?
.?5 8;C 2142 7D;H3F;H75A@FD35FD757;BFE Q Q            7D;H3F;H75A@FD35F B3K?7@FE Q Q       QQ       $  $  $  $ $  $  

137 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

  (@ %7EE
F:3@  FA Z  FA &AD7 F:3@ 7?3@6 &A@F:E  &A@F:E 273DE 273DE -AF3> 4 /22/549 6:.:06.8 6./686@E :?@>A92:@? .>>621 .@ 9;>@6F21 ;?@ %A3@E B3K34>7 )Q )  )  )Q )Q )  -D367 B3K34>7E 3@6 AF:7D 5GDD7@F >;34;>;F;7E           +AK3>FK 877 B3K34>7 Q      Q   A@6E B3K34>7 QQQ  Q   %A@9 F7D? 674F ;@5>G6;@9 5GDD7@F BADF;A@ Q            (4>;93F;A@ FA 3E ,7>>7DE ;@5>G6;@9
5GDD7@F BADF;A@ Q     Q   787DD76 B3K?7@F 835;>;FK I;F: ),%& ;@5>G6;@9 5GDD7@F BADF;A@ 'AF7 QQ      (4>;93F;A@ FABAI7D
5A@FD35FADE ;@5>G6;@9 5GDD7@F BADF;A@ Q    Q              6:.:06.8 6./686@E :?@>A92:@? .@
*$ 7D;H3F;H75A@FD35FD757;BFE Q Q   Q  7D;H3F;H75A@FD35F B3K?7@FE Q Q    Q  QQ  Q  )  )  )  )  )  ) 

3B;F3>
&3@397?7@F -:7
BD;?3DK
A4<75F;H7
A8 ;DEF
!A>6;@9E DAGBNE 53B;F3> ?3@397?7@F ;E
FA
7@EGD7 F:3F ;F ?3;@F3;@E
3
EFDA@9 5D76;FD3F;@9
3@6
:73>F:K 53B;F3> D3F;AE ;@
AD67D
FA
EGBBADF ;FE 4GE;@7EE 5A?B>KI;F:;FE 8;@3@5;3> >A3@ 5AH7@3@FE 3@6 ?3J;?;L7 E:3D7:A>67DH3>G7

;DEF
!A>6;@9E DAGB ?3@397E ;FE 53B;F3> EFDG5FGD7 3@6 ?3=7E
36;9:F A8 5:3@97E ;@ 4GE;@7EE
3@6 75A@A?;5 5A@6;F;A@E -A ?3;@F3;@ AD
36 EFDG5FGD7 ;DEF
!A>6;@9E DAGB?3K 3667DE D7FGD@53B;F3> FA E:3D7:A>67DE
AD ;EEG7
@7IE:3D7E E77 'AF7 

'A 5:3@97EI7D7?367;@
F:7 A4<75F;H7E
BA>;5;7E
AD
BDA57EE7E
6GD;@9
F:7 K73DE
7@676 757?47D

    3@6  

;DEF
!A>6;@9E DAGB ?A@;FADE 53B;F3>
GE;@9 3 674F FA 7CG;FK D3F;A I:;5: ;E
FAF3> >A@9 F7D?
674F
6;H;676 4K FAF3>
7CG;FK -AF3> 7CG;FK ;@5>G67EF:7 7CG;FK 3FFD;4GF34>7
FA
F:7 7CG;FK
:A>67DE
A8
F:7
B3D7@F 3@6 ?;@AD;FK ;@F7D7EFE ;DEF
!A>6;@9 DAGBNE
BD35F;57 ;E
FA
=77B
F:7 674F FA 7CG;FK D3F;A @AF ?AD7
F:3@
  

   4 /22/549 %A3@E B3K34>7 $ )  -D367
B3K34>7 3@6 AF:7D >;34;>;F;7E     A@6E
B3K34>7     %A@9 F7D?
674F
   (4>;93F;A@EFA 3E ,7>>7DE    +AK3>FK 877 B3K34>7    (F:7D
@A@5GDD7@F >;34;>;F;7E     787DD76
B3K?7@F 835;>;FK I;F:),%&    (4>;93F;A@EFA
BAI7D B>3@F 5A@FD35FADE  -AF3>
674F $   ) 

CG;FK
3FFD;4GF34>7 FA
F:7 7CG;FK :A>67DE
A8
F:7 )3D7@F $  )  &;@AD;FK ;@F7D7EFE      -AF3>
7CG;FK $  ) 

74F FA 7CG;FK D3F;A K  

-:7 )3D7@F A?B3@K 3@6 57DF3;@
A8 ;FE EG4E;6;3D;7E
3D7
A4>;93F76
FAB7D8AD?57DF3;@ 5AH7@3@FE I;F: D7EB75F
FA
?3;@F3;@;@9 EB75;8;76 674F FA 7CG;FK
3@6 ?;@;?G?
674F E7DH;57 5AH7D397 D3F;AE
3EE7F 8ADF:;@ F:7;DD7EB75F;H739D77?7@FE
I;F: F:7 5D76;FADE E
A8
757?47D

  3@6   ;DEF !A>6;@9 DAGB ;E ;@ 5A?B>;3@57 I;F: F:AE75AH7@3@FE

138  6:.:06.8 :?@>A92:@?

3;D /3>G7E ,7F AGF 47>AI ;E
3
5A?B3D;EA@ 4K 53F79ADK
A8 53DDK;@9 3?AG@FE
3@6
83;DH3>G7E
A8 3>>
A8 ;DEF
!A>6;@9E DAGBNE 8;@3@5;3> ;@EFDG?7@FE
F:3F
3D753DD;76 ;@
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE
3E
A8
757?47D

 
3@6
 

   .>>E6:4 .6> 3DDK;@9 3;D 9;A:@ *.8A2 ?AG@F /3>G7 4 /22/549 6:.:06.8 ??2@? ;@3@5;3> 3EE7FE 3F /)% 7D;H3F;H73EE7FE $ $ )Q )Q /)% ;@H7EF?7@FE       %A3@E 3@6 D757;H34>7E 3E: 3@6 53E:7CG;H3>7@FE       ,:ADF F7D?;@H7EF?7@FE   QQ       -D367 3@6 AF:7DD757;H34>7E -D367 D757;H34>7E         (F:7DD757;H34>7E              %A@9 F7D? D757;H34>7E A@57EE;A@ D757;H34>7E        +757;H34>7
8DA? &+%(         (F:7D >A@9 F7D? D757;H34>7E             6H3@57E
FA3?;@AD;FK E:3D7:A>67D   QQ +AK3>FK
877E
5:3D9734>7 FA')   +7EFD;5F76 53E: 67BAE;FE     (F:7D
5GDD7@F 3EE7FE   ,
8;@3@5;3> 3EE7FE         -AF3> 8;@3@5;3> 3EE7FE $   $ )  )  

6:.:06.8 6./686@62? ;@3@5;3> >;34;>;FK 3F /)% 7D;H3F;H7 >;34;>;FK $ $ ) ) ;@3@5;3> >;34;>;F;7E 53DD;76 3F 3?ADF;L76
5AEF %A3@E B3K34>7       -D367 B3K34>7E 3@6 AF:7D
5GDD7@F >;34;>;F;7E -D367 B3K34>7E       55DG76 7JB7@E7E       G7
FA5A@FD35FADE 3@6 5A@EG>F3@FE     -DGEF D757;BFE B3K34>7     A@6E B3K34>7          %A@9 F7D? 674F ;@5>G6;@9 5GDD7@F BADF;A@        (4>;93F;A@ FA 3E ,7>>7DE ;@5>G6;@9
5GDD7@F BADF;A@       787DD76 B3K?7@F
835;>;FK I;F:),%& ;@5>G6;@9 5GDD7@F BADF;A@        +AK3>FK
877 B3K34>7       (4>;93F;A@ FABAI7D
5A@FD35FADE ;@5>G6;@9 @A@5GDD7@F BADF;A@          ;@3@5;3> >;34;>;FK 67E;9@3F76 3E 53E:8>AI :7697E 7D;H3F;H7 >;34;>;F;7E     QQ $  $   )  ) 

-:7 83;DH3>G7
A8 53E:3@653E:
7CG;H3>7@FE E:ADF F7D?;@H7EF?7@FE
FD367 D757;H34>7E D7EFD;5F76 53E: 67BAE;FE >A3@E B3K34>7 FD367 B3K34>7E
3@6
AF:7D 5GDD7@F >;34;>;F;7E 3BBDAJ;?3F7EF:7 53DDK;@9
3?AG@FE
3F
43>3@57 E:77F 63F76G7
FA
F:7 E:ADF F7D?
@3FGD7A8
F:7 355AG@FE

-:7 83;DH3>G7
A8 5A@57EE;A@ D757;H34>7E 3@6 36H3@57E
FA
3
?;@AD;FK E:3D7:A>67DI7D7
67F7D?;@76 4K 6;E5AG@F;@9 8GFGD753E:8>AIE
GE;@9 F:7 BD7H3;>;@9 D3F7E
3F
43>3@57 E:77F
63F7

-:7 83;DH3>G7E
A8  ,
3@6 /)% 8;@3@5;3>
3EE7FE
3D743E76 A@
CGAF76 ?3D=7F
BD;57E
3E
3F
43>3@57 E:77F 63F7 AD 7CG;FK ;@EFDG?7@FE
F:3F
3D7
@AF
CGAF76
F:7 ;@H7EF?7@FE
3D753DD;76 3F 5AEF >7EE
3>>AI3@57 8AD

139 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

;?B3;D?7@F >AEE7E
6G7
FA
F:7
G@BD76;5F34>7 @3FGD7
A8 8GFGD753E:8>AIE 3@6 F:7 >35= A8 EG;F34>7 ?7F:A6E
A8 3DD;H;@9 3F 3 D7>;34>7 83;DH3>G7

-:7 83;DH3>G7E
A8 >A3@E
B3K34>7 >A@9 F7D?
674F
A4>;93F;A@EFA 3E ,7>>7DE
3@6 DAK3>FK 877
B3K34>7 I7D7 5A?BGF76 4K 6;E5AG@F;@9 F:7 ;@EFDG?7@FEN
7JB75F76 8GFGD753E:8>AIE
GE;@9 F:7 BD7H3;>;@9 5D76;F
36K

-:7 83;DH3>G7
A8
6787DD76
B3K?7@F 835;>;FK I;F: ),%&
I3E 5A?BGF76 4K 6;E5AG@F;@9 F:7 835;>;FKNE 7JB75F76 8GFGD753E:8>AIE GE;@9 F:7 BD7H3;>;@9 5D76;F
36;BB;@7 AH7D@?7@F[7DA
AGBA@ 2;7>6 ;@F7D7EF D3F7ED3@9;@9 8DA?   FA  
3@6
 
FA
   A@ 757?47D

 
3@6   D7EB75F;H7>K

-:7 83;DH3>G7
A8
F:7 )7EA 4A@6E B3K34>7 I3E 5A?BGF76 4K 6;E5AG@F;@9 F:7 A@6EN
7JB75F76 8GFGD753E: 8>AIE
GE;@9 F:7 BD7H3;>;@9 5D76;F 36;BB;@7 73>;@9 3@6 J5:3@97 ADB )J;@F7D7EF D3F7E 8AD F:7 ):;>;BB;@7 )7EA
4A@6E A@
757?47D
   3@6
  D3@9;@9 8DA?
 
FA
   3@6   FA
   D7EB75F;H7>K -:7 83;DH3>G7E
A8
F:7
E
3D7 5A?BGF76
GE;@9
F:7
. , [7DA D3F79AH7D@?7@F 4A@6 8AD
F:7
5A@H7DF;4>7 4A@6 D3@9;@9 8DA?

FA
  ;@  

-:7 83;DH3>G7E
A8 8D77EF3@6;@9 67D;H3F;H73EE7FE
3@6 >;34;>;F;7E
3D7
43E76 A@ 5AG@F7DB3DFK H3>G3F;A@ -:7 83;DH3>G7E
A8
7?476676
67D;H3F;H7E
3D743E76
A@ H3>G3F;A@
F75:@;CG7 I:;5: ?3=7E
GE7
A8 ?3D=7F A4E7DH34>7 ;@BGFE

7D;H3F;H7 ;@3@5;3> "@EFDG?7@FE -:7
F34>7
47>AIE:AIE
F:7
83;DH3>G7A8 ;DEF 7@ DAGBNE
AGFEF3@6;@9
67D;H3F;H7 8;@3@5;3> ;@EFDG?7@FE D7BADF76
3E
3EE7FE
AD >;34;>;F;7E
FA97F:7DI;F: F:7;D
@AF;A@3> 3?AG@FE
3E
A8
757?47D
   3@6   -:7
@AF;A@3>
3?AG@F ;EF:7 43E;E
GBA@ I:;5: 5:3@97E ;@
F:7 H3>G7
A8
67D;H3F;H7E
3D7?73EGD76

   2>6B.@6B2 2>6B.@6B2 ";@6;:.8 7D;H3F;H7 7D;H3F;H7 'AF;A@3> ??2@? 6./686@62? 9;A:@ EE7FE %;34;>;F;7E ?AG@F 4 /22/549 2>6B.@6B2? 2?64:.@21 .? 00;A:@6:4 2142? D77EF3@6;@9 67D;H3F;H7E "@F7D7EF D3F7
EI3BE $H$     )Q )   2>6B.@6B2? :;@ 2?64:.@21 .? 00;A:@6:4 2142? D77EF3@6;@9 67D;H3F;H7E +3@97 4A@GE
8ADI3D6E   H  QQQ GDD7@5K
8ADI3D6E H  QQQ ?476676 67D;H3F;H7E &G>F;B>7 67D;H3F;H7E A@ E H   QQQ GDD7@5K ABF;A@E  Q Q QQQ -AF3> 67D;H3F;H7E $ $  H )Q ) 

)D7E7@F76 3E GDD7@F $  $ $H )Q )Q )Q 'A@5GDD7@F   H Q  Q 
4)2;*+* ;4*+8 A :.+8 454);88+4: '99+:9B

3(+**+* +8/<':/<+9 -:7 ;DEF
!A>6;@9E DAGB F:DAG9: ;DEF 7@ :3E 8;@3@5;3>
3@6 @A@8;@3@5;3> 5A@FD35FE 5A@F3;@;@9 7?476676 67D;H3F;H7E -:7E7
7?476676 67D;H3F;H7E
:3H7
F:7
78875F
F:3F
EA?7
A8
F:7
53E:8>AIE A8
F:7
8;@3@5;3> 3@6 @A@8;@3@5;3> 5A@FD35FE H3DK ;@
3
E;?;>3DI3K
FA38D77EF3@6;@9
67D;H3F;H7

3(+**+* ;88+4)? 6:/549 E
A8
757?47D

  !K6DA:3E
7?476676 5GDD7@5K ABF;A@E ;@ ;FE )+.)
A@FD35FI;F: / -! !2+( ?4:
A@FD35FAD E77
'AF7
> .@67DF:7 )+.)
A@FD35F !K6DA:3E
F:7 ABF;A@ FAB3K
F:7
A@FD35FAD ;@ GDAB73@ GDAGDA AD ;@
. ,
A>>3D
3F 3 EFD;=7 D3F7
A8 ^  FA 8AD
F:7 AD;9;@3> 5A@FD35F 3@6 ^  FA
 8AD
F:7 5A@FD35F ABF;A@E 3H3;>76 6GD;@9 F:7 K73D -:7 83;DH3>G7
A8
F:7 AGFEF3@6;@9
7?476676 5GDD7@5K ABF;A@E A@
F:7 D7?3;@;@9 G@B3;6 5A@FD35F BD;57
A8
^ ?;>>;A@ 3E
A8
757?47D

 
3?AG@F76 FA
3 93;@
A8 ) ?;>>;A@   ?;>>;A@ -:7 7?476676 5GDD7@5K
ABF;A@E
I;>> ?3FGD7
A@ H3D;AGE 63F7E
G@F;> 757?47D
  ADGBA@ 8G>> B3K?7@F 3@6 5A?B>7F;A@ A8
F:7
D7>3F76 :AEF 5A@FD35F

140 -:7 83;DH3>G7
A8
67D;H3F;H73EE7F
B7DF3;@;@9
FA
F:7 7?476676 5GDD7@5K ABF;A@E ;@ F:7 )+.)
A@FD35F
A8 !K6DA I;F: / -! !2+( I3E 5A?BGF76 GE;@9 3D?3@ $A:>:397@ ?A67> -:;EH3>G3F;A@ ?A67> F3=7E ;@FA
355AG@F
F:7 EBAF BD;57
3@6 D;E=8D77 ;@F7D7EF D3F7E
A8
4AF:5GDD7@5;7E BD7H3;>;@9 3FH3>G3F;A@ B7D;A6 3@6 :;EFAD;53> HA>3F;>;FK D3F7E E
A8
757?47D 
  F:7 EBAF
BD;57
GE76 ;E   FA ^ -:7
BD7H3;>;@9
., D;E=
8D77 D3F7E
GE76 D3@97 8DA?

FA  3@6
F:7 GDA D;E=8D77 ;@F7D7EF D3F7ED3@97 8DA?
   FA
  

-:7
F34>7
47>AIEG??3D;L7E
F:7
@7F ?AH7?7@FE ;@
F:7 83;DH3>G7E
A8
F:7
7?476676 5GDD7@5K ABF;A@E
3E A8 757?47D

 

?AG@F 4 /22/549 '7F 5:3@97E ;@ 83;DH3>G7
6GD;@9 F:7 K73D ) ,7FF>76
6GD;@9 F:7 K73D  3>3@57 3F 7@6 A8 K73D )

-:7
@7F
5:3@97E ;@ 83;DH3>G76GD;@9
F:7 K73DI7D7
F3=7@ ;@FA O(F:7D ;@5A?7P
355AG@F ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

3(+**+* +8/<':/<+ 54 D9 E 6;E5GEE76 ;@
'AF7
3F ;@57BF;A@ ?G>F;B>7
7?476676 67D;H3F;H7E ;@ F:7 EI7D74;8GD53F76 -:7 83;DH3>G7A8
F:7
7?476676 7CG;FK 5A@H7DE;A@ 53>> 3@6 BGF ABF;A@E
A8
F:7
EI3E 5A?BGF76
GE;@9
F:7 ;@6;D75F ?7F:A6
A8 H3>G;@9 ?G>F;B>7
7?476676 67D;H3F;H7E -:;EH3>G3F;A@ ?7F:A6 5A?B3D7E
F:7
83;DH3>G7
A8
F:7 ABF;A@ 8D77 4A@6
393;@EF F:7 83;DH3>G7A8
F:7
4A@6
3ECGAF76 ;@ F:7 ?3D=7F -:7
6;887D7@57
A8
F:7
83;DH3>G7E ;E 3EE;9@76 3E
F:7 H3>G7A8
F:7
7?476676
67D;H3F;H7E E
A8 757?47D

  F:7 O?3D= FA ?3D=7FP H3>G7
A8
F:7 7?476676 67D;H3F;H7E
3?AG@F76
FA) ?;>>;A@   ?;>>;A@ I:;5: I3E
3DD;H76 3F
38F7D 5A?BGF;@9 8ADF:7 83;DH3>G7A8
F:7
ABF;A@ 8D77 4A@6 GE;@9 5D76;F 36G7A8
F:7
4A@6E

-:7
F34>7
47>AIEG??3D;L7E
F:7
@7F ?AH7?7@FE ;@
F:7 83;DH3>G7E
A8
F:7
7?476676
67D;H3F;H7E >;34;>;FK 3E A8
757?47D

 

?AG@F 4 /22/549 3;DH3>G73F ;@57BF;A@ ) '7F 5:3@97E ;@ 83;DH3>G7
6GD;@9 F:7 K73D  ,7FF>76
6GD;@9 F:7 K73DQ 3>3@57 3F 7@6 A8 K73D )

-:7
@7F
5:3@97E ;@ 83;DH3>G76GD;@9
F:7 K73DI7D7
F3=7@ ;@ O(F:7D ;@5A?7P
355AG@F ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

!8+6'?3+4: 6:/549 ?476676
BD7B3K?7@F 53>> ABF;A@
A8  I3E 4;8GD53F76
8DA? ;FE

?;>>;A@ ,
F7D? >A3@ I:;5: I3EE5:76G>76 FA?3FGD7;@G9GEF
 

"@   F:7 7?476676
BD7B3K?7@F ABF;A@ I3E
7J7D5;E76
4K  -:7
3?AG@F
A8 ?3D= FA ?3D=7F ?AH7?7@F 5:3D976
FA
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 3?AG@F76 FA)  ?;>>;A@   ?;>>;A@ 8AD
F:7 K73D 7@676
757?47D

 

8++9:'4*/4-
+8/<':/<+9  7@F7DE ;@FA67D;H3F;H7 FD3@E35F;A@E
FA
?3F5:
F:7
8AD7;9@ 5GDD7@5K 7JBAEGD7 3D;E;@9 8DA? ;FE 8AD7;9@ 5GDD7@5K 67@A?;@3F76 >A3@ 5A@FD35FE
B3DF;5G>3D>KF:7 ?3FGD;@9 &;K3L3I3
 >A3@ E
A8
757?47D

   :3E
BAE;F;A@E ;@
F:7 8A>>AI;@9 FKB7E A8 8D77EF3@6;@9
67D;H3F;H7E @3?7>K ;
+3@97 A@GE ADI3D6A@FD35FE
3@6 ;; AD7;9@ GDD7@5K ADI3D6
A@FD35FE FA
BDAF75F ;FE7>8
393;@EF 8AD7;9@ 5GDD7@5KD;E= I:;5: 3D;E7E 4KD73EA@
A8
F:7 HA>3F;>;FK
A8
F:7 7J5:3@97 D3F7
A8
F:7 ):;>;BB;@7
B7EA;@ D7>3F;A@ FA F:7 8AD7;9@ 5GDD7@5K

"'4-+ D54;9 58='8* 54:8'): (@ BD;>

  3@6
&3K 
  
7@F7D76 ;@FA +3@97 A@GE ADI3D6
A@FD35FE 5AH7D;@9
R 4;>>;A@ 3@6 R 4;>>;A@
A8 ;FE &;K3L3I3  >A3@E D7EB75F;H7>K -:7
F7D?E A8
F:7
5A@FD35FE 3>>AI  FA
BGD5:3E78DA?
F:7
5AG@F7DB3DFK 3F ?3FGD;FK
63F7 R
4;>>;A@ ;@
7J5:3@97 A8   ?;>>;A@ 43E76 A@ F:7 39D776 8ADI3D6 D3F7A8
R F
F:7 E3?7
F;?7 ;F
BDAH;67EF:3F  E:3>> B3K 3
BD7?;G?
7CG3>
FA
  J
  ?;>>;A@ J
@ ' 8AD
F:7
R 4;>>;A@ 3@6   J
  ?;>>;A@ J
@ ' 8AD

141 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

F:7 R 4;>>;A@ I:7D7
@;E 7CG3> FA
F:7
@G?47D
A8
4GE;@7EE
63KE F:3F
F:7 EBAFD3F7;E AGFE;67
F:7 D3@97 3@6 ' ;E 7CG3>
FA
F:7
FAF3>
@G?47D
A8 -A=KA4GE;@7EE 63KE 8AD
735: 63K
F:3F
F:7 EBAFD3F7;E AGFE;67 F:7 R R  3@6
R R 
BD767F7D?;@76 D3@97E D7EB75F;H7>K -:7
+3@97 A@GE ADI3D6
A@FD35FE I;>> ?3FGD7
A@
&3K   

E
A8
757?47D

 
F:7 399D793F7 O?3D= FA ?3D=7FH3>G7
A8
F:7
D3@97
4A@GE 8ADI3D65A@FD35FEP 3?AG@FE
FA
3
93;@
A8 ) ?;>>;A@ -:7
FAF3>
355DG76 BD7?;G?
B3K34>7 8AD
F:7
E3;6 R 4;>>;A@
3@6 R 4;>>;A@ &;K3L3I3>A3@E
G@67D
F:7
D3@97
4A@GE 8ADI3D65A@FD35FE
FAF3>76
FA) ?;>>;A@   ?;>>;A@ 3@6 ) ?;>>;A@   ?;>>;A@ D7EB75F;H7>K -:7E7
BD7?;G?EI7D743E76
A@ 3
FAF3>
@G?47D A8
63KE
A8
 63KE 8AD
F:7 R 4;>>;A@ 3@6
 63KE R 4;>>;A@ F:3FF:7 EBAFD3F7;E AGFE;67
F:7 BD767F7D?;@76 D3@97E -:7E3;6
3?AG@FE
3D7;@5>G676
G@67DO-D367
B3K34>7
3@6
AF:7D 5GDD7@F >;34;>;F;7EP 355AG@F ;@ F:7   5A@EA>;63F76
43>3@57 E:77F

58+/-4
;88+4)? 58='8* 54:8'):9 AD7;9@ 5GDD7@5K 8ADI3D65A@FD35FE
3D75A@FD35FG3> 39D77?7@FE
FA
4GK ADE7>>
3
8AD7;9@ 5GDD7@5K 3F 3@ 39D776 D3F7A@38GFGD7
63F7 -:7E73D75A@FD35FE
F:3F 3D75GEFA?;L76 3@6
FD3@E35F76 I;F:
3 43@=
AD 8;@3@5;3> ;@EF;FGF;A@

GD;@9
F:7 K73D  3>EA7@F7D76 ;@FA@;@7 AD7;9@ GDD7@5K ADI3D6
A@FD35FE I;F: H3D;AGE 5AG@F7DB3DFK 43@=E  :3E
AGFEF3@6;@9
67>;H7D34>7
FA
4GK . ,
A>>3DE 3@6 E7>> ):;>;BB;@7 B7EA8ADI3D6 5A@FD35FE E
A8
757?47D
  
F:7 8AD7;9@ 5GDD7@5K 8ADI3D65A@FD35FE
A8 
:3H73@399D793F7 @AF;A@3>
3?AG@F A8
 ?;>>;A@ -:7 I7;9:F76 3H7D397 8ADI3D6 D3F7
A8
F:7
AGFEF3@6;@9 8ADI3D6 7J5:3@97 5A@FD35FE ;E ) 
FA  -:7E78ADI3D65A@FD35FE
I;>> ?3FGD7
A@
&3K
   E
A8 757?47D

  F:7 ?3D= FA ?3D=7F >AEE D75A9@;L76 8DA?
F:7E75A@FD35FE
3?AG@F76 FA) ?;>>;A@   ?;>>;A@

-:7
@7F
?AH7?7@F ;@ 83;DH3>G7 5:3@97E
A8 NE 8D77EF3@6;@9 67D;H3F;H7
FD3@E35F;A@E
3E A8 757?47D

  8A>>AIE

?AG@F 4 /22/549 '7F 67D;H3F;H7
3EE7F 3>3@57 3F 479;@@;@9
A8 K73D )Q '7F 5:3@97E ;@ 83;DH3>G7
6GD;@9 F:7 K73D  AD7;9@
7J5:3@97 6;887D7@57   3>3@57 3F 7@6 A8 K73D )

)D7E7@F76
3E 7D;H3F;H7
3EE7F ) 7D;H3F;H7>;34;>;FK 

-:7
@7F
5:3@97E ;@ F:7 83;DH3>G7A8NE
67D;H3F;H7;@EFDG?7@FE
6GD;@9
F:7 K73DI7D7
F3=7@ ;@FA O(F:7D ;@5A?7P
355AG@F ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
@7F
A8
355DG3>
A8
BD7?;G?
A@
F:7
D3@97 4A@GE 8ADI3D6E
3?AG@F;@9 FA) ?;>>;A@   ?;>>;A@

7D;H3F;H7E 55AG@F76 G@67D
3E: >AI !7697E ;DEF
!A>6;@9E DAGB:3E ;@F7D7EF D3F7 EI3BE
355AG@F76 8AD
3E 53E:8>AI
:7697E .@67D 353E:8>AI :7697 F:7
78875F;H7
BADF;A@
A8 5:3@97E ;@ 83;DH3>G7A8
F:7
:769;@9 ;@EFDG?7@F ;ED75A9@;L76
3E 5G?G>3F;H7 FD3@E>3F;A@
36 F:7 :76976 ;F7? 38875FE
73D@;@9E

'9. 25=
+*-+  ! (@
'AH7?47D

  )
:3E ;@F7D7EF D3F7 EI3B
39D77?7@FE I;F:
F:7 :7697
BDAH;67DE @3?7>K ,A5;VFV V@VD3>7 ,;@93BAD7D3@5: 3K7D;E5:7 !KBA G@6 /7D7;@E43@=  !A@9 $A@9 D3@5: 3>KA@
3@6 ,F3@63D6:3DF7D76 3@=
FA
:7697
F:7 H3D;34;>;FK
A8 ;@F7D7EF B3K?7@FE 8AD
GB
FA
 
A8
F:7 5A?4;@76
AH7D76 3@6 .@5AH7D76 35;>;F;7E
A8 ) .@67DF:7 T K73D ;@F7D7EF D3F7 EI3B 39D77?7@F 8AD
F:7
AH7D76 35;>;FK )B3KE
3
8;J76 D3F7A8
  
3@6
D757;H7E
3
8>A3F;@9 D3F7
A8
. ,
%"(+ 8>3F A@ @AF;A@3>
3?AG@F
A8
., ?;>>;A@ E;?G>F3@7AGE I;F:;@F7D7EF B3K?7@FE A@ F:7 >A3@ I:;5: ;E
7H7DK &3K
3@6 'AH7?47D -:7
AD;9;@3> F7D? >A3@ I3E BD;576 393;@EF F:7 47@5:?3D= E;J ?A@F:
%"(+ B>GE
 43E;E
BA;@FE -:7
@AF;A@3> 3?AG@F
A8
F:7
;@F7D7EF D3F7 EI3B ;E
3?ADF;L;@9 43E76 A@ F:7 >A3@ D7B3K?7@FE5:76G>7 -:7 ;@F7D7EF D3F7 EI3B
39D77?7@F
I;>> ?3FGD7A@&3K 
 

142 E
FA
F:7 .@5AH7D76 35;>;FK )
:3E 3@ T K73D ;@F7D7EF D3F7 EI3B 39D77?7@F
3@6 B3KE
3
8;J76 D3F7
A8   3@6 D757;H7E
3
8>A3F;@9 D3F7
A8
. ,
%"(+ 8>3F
A@
F:7 
A8
F:7
@AF;A@3>
3?AG@F
A8
., ?;>>;A@ E;?G>F3@7AGE I;F:;@F7D7EF
B3K?7@FE A@
F:7 >A3@ I:;5: ;E 7H7DK &3K
3@6 'AH7?47D -:7
AD;9;@3> F7D? >A3@ I3E
BD;576 393;@EF
F:7
47@5:?3D= E;J ?A@F:
%"(+ B>GE EBD736 D3@9;@9 8DA?

43E;E
BA;@FE 8AD
EF
FA
F: K73D

43E;E
BA;@FE 8AD
F: FA
 F: K73D 3@6  43E;E BA;@FE 8AD
F: FA F: K73D -:7 @AF;A@3>
3?AG@F A8
F:7
;@F7D7EF D3F7 EI3B ;E
3?ADF;L;@9 43E76 A@ F:7 >A3@ D7B3K?7@FE5:76G>7 -:7 ;@F7D7EF D3F7 EI3B 39D77?7@FI;>> ?3FGD7
A@
&3K   

(@
'AH7?47D

  )
67E;9@3F76
F:7 ;@F7D7EF D3F7 EI3BE
3E :769;@9 ;@EFDG?7@FE
FA
:7697
F:7 H3D;34;>;FK ;@
F:7 53E:8>AIE ;@HA>H;@9 F:7 AH7D76
3@6 .@5AH7D76 35;>;F;7E I:;5: ;E
3FFD;4GF34>7
FA
F:7 ?AH7?7@FE
A8 ;@F7D7EF D3F7E E
A8
757?47D

 
F:7 83;DH3>G7
A8
F:7 ;@F7D7EF D3F7 EI3B
F:3FI3E 6787DD76
FA
5G?G>3F;H7
FD3@E>3F;A@ 36>;A@

'9. 25=
+*-+  ! E
A8
757?47D

 
3@6   ) :3E
3@ ;@F7D7EF D3F7 EI3B
39D77?7@F I;F: ' &+( 3@=
'/ FA
:7697 :3>8
A8 ;FE 8>A3F;@9 D3F7
7JBAEGD7A@;FE   35;>;FK 9D77?7@F .@67DF:7 ;@F7D7EF D3F7 EI3B
39D77?7@F )
B3KE
3
8;J76 D3F7A8
 
3@6 D757;H7E
3
8>A3F;@9 D3F7
A8 . , %"(+ B>GE EBD736
A@
3
E7?; 3@@G3>
43E;EE;?G>F3@7AGE I;F:;@F7D7EF B3K?7@FE
A@
F:7 >A3@ I:;5: ;E
7H7DK #G@7 3@6 757?47D -:7
AD;9;@3> F7D? >A3@ I3E
BD;576
393;@EF F:7 47@5:?3D=
F:D77
FA
E;J ?A@F: %"(+ B>GE  43E;E BA;@FE -:7
@AF;A@3>
3?AG@F
A8 F:7 ;@F7D7EF D3F7 EI3B ;E
3?ADF;L;@9 43E76 A@
F:7 >A3@ D7B3K?7@FE5:76G>7 -:7 ;@F7D7EF D3F7 EI3B
39D77?7@FI;>> ?3FGD7;@757?47D
 

)
67E;9@3F76 F:7 ;@F7D7EF D3F7 EI3B
3E
3 :769;@9 ;@EFDG?7@F
FA
:7697
F:7 H3D;34;>;FK ;@
F:7 53E:8>AIE ;@HA>H;@9 :3>8
A8
F:7
8>A3F;@9 D3F7 >A3@ 8DA?
F:7
  35;>;FK 9D77?7@F I:;5: ;E 3FFD;4GF34>7 FA F:7 ?AH7?7@FE
A8 ;@F7D7EF D3F7E E
A8
757?47D

 
3@6
  F:7 83;DH3>G7A8
F:7
;@F7D7EF D3F7 EI3B F:3FI3E
6787DD76 FA5G?G>3F;H7
FD3@E>3F;A@ 36>;A@

-:7D7 I3E @A ;@78875F;H7BADF;A@ D75A9@;L76 ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
6GD;@9 F:7 K73D

-:7
AGFEF3@6;@9 399D793F7@AF;A@3>
3?AG@F A8
F:7
;@F7D7EF D3F7 EI3B
39D77?7@FE
3@6
F:7 D7>3F76 ?3D= FA ?3D=7F >AEE7E
3E
A8
757?47D
 3D7
3E 8A>>AIE

   4 /22/549 'AF;A@3>
3?AG@F $  )  &3D= FA ?3D=7F >AEE7E   

-:7
@7F
?AH7?7@FE ;@ 83;DH3>G7 5:3@97E
A8
67D;H3F;H7
FD3@E35F;A@E
3D73E 8A>>AIE

   4 /22/549 3;DH3>G73F
479;@@;@9 A8 K73D $ ) 3;DH3>G7 5:3@97
F3=7@ ;@FA
7CG;FK 6GD;@9
F:7 K73D     3;DH3>G7 5:3@97 D73>;L76 6GD;@9
F:7 K73D   AD7;9@
7J5:3@97
FD3@E>3F;A@ 36G73F
7@6
A8 K73D     787DD76
F3J
78875F
A@
53E:8>AI
:7697E  Q 3;DH3>G76787DD76
FA7CG;FK $  )

3;DH3>G7 5:3@97E 6GD;@9 F:7 K73D ;@ 7CG;FK
G@67D 5G?G>3F;H7 FD3@E>3F;A@ 36G7 5:3@97 D73>;L76 6GD;@9
F:7 K73DI3EF3=7@ ;@FA O(F:7D ;@5A?7 5:3D97EP
355AG@F ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7 -:;E B7DF3;@E
FA
F:7 @7F 6;887D7@57
47FI77@
F:7 8;J76 ;@F7D7EF
B3;6 355DG76
3@6
F:7 8>A3F;@9 ;@F7D7EF D757;H76 355DG76 4K ;DEF
!A>6;@9E DAGBA@
F:7 ;@F7D7EF D3F7 EI3BE
3E
3F
43>3@57 E:77F 63F7

143 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

+75A@5;>;3F;A@
A8
'7F
3;D /3>G7
:3@97E
A@ 7D;H3F;H7E -:7
F34>7
47>AIEG??3D;L7E
F:7
?3D=
FA?3D=7F
93;@ >AEE
A@
;DEF 7@ DAGBNE 67D;H3F;H7;@EFDG?7@FE D75A9@;L76 ;@
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
A8 ;DEF
!A>6;@9E DAGB

   4 /22/549 D77EF3@6;@9
67D;H3F;H7E +3@97
4A@GE 8ADI3D6E $   )Q AD7;9@ 5GDD7@5K 8ADI3D6E  Q  Q ?476676 67D;H3F;H7E GDD7@5K ABF;A@E  Q &G>F;B>7 67D;H3F;H7E A@
E   Q )D7B3K?7@F ABF;A@ H Q  Q -AF3> $  )Q  '81
:5 3'81+: -'/4 54 *+8/<':/<+9 /9 68+9+4:+* /4 :.+ /4)53+ 9:':+3+4: '9 6'8: 5,
A :.+8 4)53+B 4+: 5,
:.+
8+'2/@+* 2599 54
:.+
8'4-+ (54;9
,58='8*9 '35;4:/4-
:5 !  3/22/54   3/22/54

 '2>B602
;:02??6;: >>.:4292:@?
.:1 &28.@21 >>.:4292:@?

 >>
97AF:7D?3> D7EAGD57E ;@
BG4>;5 3@6 AD
BD;H3F7 >3@6E ;@ F:7 ):;>;BB;@7E I:7F:7D 8AG@6 ;@
A@
ADG@67D F:7 EGD8357
A8
6DK >3@6E 5D77=E D;H7DE >3=7E
AD
AF:7DEG4?7D976 >3@6EI;F:;@
F:7 I3F7DE
A8
F:7
):;>;BB;@7E 47>A@9
FA F:7 ,F3F7 ;@3>;7@34>7 3@6 ;?BD7E5D;BF;4>7 3@6
F:7;D
7JB>AD3F;A@ 67H7>AB?7@F
3@6 7JB>A;F3F;A@
3D79AH7D@76 G@67D )
'A
 )  @ 5FFA
BDA?AF7
F:7
7JB>AD3F;A@ 3@6 67H7>AB?7@F
A8
97AF:7D?3> D7EAGD57E

.@67D ) 
F:7 AH7D@?7@F ?3K 7@F7D ;@FA E7DH;57 5A@FD35FE 8AD
F:7
7JB>AD3F;A@
67H7>AB?7@F
3@6 7JB>A;F3F;A@
A8
97AF:7D?3> D7EAGD57E

)GDEG3@F
FA )   :3E
7@F7D76 ;@FA
F:7 8A>>AI;@9 E7DH;57 5A@FD35FE
I;F:
F:7 AH7D@?7@F
A8
F:7
+()  AH7D@?7@F D7BD7E7@F76
4KF:7
( 8AD
F:7
7JB>AD3F;A@ 67H7>AB?7@F
3@6
BDA6G5F;A@ A8 97AF:7D?3> 8>G;6 8AD 5A??7D5;3>
GF;>;L3F;A@

 -A@9A@3@
%7KF7 63F76
&3K
   ,AGF:7D@ '79DAE 63F76 (5FA47D    35?3@ ,ADEA9A@ 63F76 (5FA47D

  &F BA $;63B3I3@ AF343FA 63F76 &3D5:

  &F %34A
3?3D;@7E
'ADF7
3@6 ,GD 63F76 &3D5:
   'ADF:7D@ '79DAE 63F76 &3D5:

  &F
343>;3@ ,AGF:7D@
%7KF7 63F76 #3@G3DK  

-:7
7JB>AD3F;A@
B7D;A6 G@67D
F:7
E7DH;57 5A@FD35FE E:3>> 47 8;H7K73DE 8DA?
F:7
78875F;H7
63F7 D7@7I34>7 8AD
3@AF:7DFIAK73DE ;8  :3E
@AF
477@ ;@ 6783G>F ;@ ;FE
7JB>AD3F;A@ 8;@3@5;3> 3@6 AF:7D IAD= 5A??;F?7@FE
3@6
A4>;93F;A@E 3@6 :3E
BDAH;676
3
IAD=
BDA9D3? 8AD
F:7
7JF7@E;A@ B7D;A6
3557BF34>7 FA
F:7 AH7D@?7@F 0:7D7
97AF:7D?3> D7EAGD57 ;@ 5A??7D5;3>
CG3@F;FK ;E
6;E5AH7D76 6GD;@9
F:7 7JB>AD3F;A@ B7D;A6
F:7 E7DH;57 5A@FD35FE E:3>> D7?3;@ ;@ 8AD57 8AD
F:7
D7?3;@67D
A8
F:7 7JB>AD3F;A@ B7D;A6 AD
3@K
7JF7@E;A@
F:7D7A8
3@6 8AD
3@
366;F;A@3>
B7D;A6
A8
FI7@FK 8;H7  K73DE
F:7D738F7D
BDAH;676 F:3F ;8  :3E
@AF
477@ ;@ 6783G>F ;@ ;FE A4>;93F;A@E
G@67D
F:7 5A@FD35FE
F:7 AH7D@?7@F ?3K
9D3@F 3@ 366;F;A@3>
7JF7@E;A@
A8 8;8F77@  FA FI7@FK   K73DE

 E:3>>
35CG;D78AD
F:7 97AF:7D?3>
AB7D3F;A@E ?3F7D;3>E 7CG;B?7@F B>3@FE
3@6 AF:7D ;@EF3>>3F;A@E
3E 3D7 D7CG;D76
3@6
@757EE3DK
FA
53DDK AGF F:7 97AF:7D?3>
AB7D3F;A@E >>?3F7D;3>E 7CG;B?7@F
B>3@FE 3@6 AF:7D ;@EF3>>3F;A@E
7D75F76 AD
B>3576
A@ F:7 5A@FD35F
3D73E
A8
3
?AH34>7 @3FGD74K  E:3>> D7?3;@
F:7 BDAB7DFK
A8 
G@>7EE
@AFD7?AH76
F:7D78DA? I;F:;@ A@7 K73D
38F7D
F:7 7JB;D3F;A@
3@6 AD
F7D?;@3F;A@ A8 F:7 D7>3F76 E7DH;57 5A@FD35F ;@ I:;5: 53E7 AI@7DE:;B E:3>> 47 H7EF76 ;@ F:7 AH7D@?7@F

144 -:7 E7DH;57 5A@FD35FE
BDAH;67
F:3F 3?A@9
AF:7D BD;H;>797E E:3>> :3H7 F:7 D;9:F
FA7@F7D ;@FA 39D77?7@FE 8AD
F:7
6;EBAE;F;A@ A8
F:7
97AF:7D?3> D7EAGD57E
BDA6G576 8DA?
F:7
5A@FD35F
3D73E EG4<75FFA F:7 3BBDAH3>
A8
F:7 AH7D@?7@F

)GDEG3@F
FA
EG5: D;9:F 
:3E 7@F7D76 ;@FA39D77?7@FE 8AD
F:7
E3>7
A8
F:7 97AF:7D?3> D7EAGD57E BDA6G576 8DA?
F:7
E7DH;57 5A@FD35F
3D73E BD;@5;B3>>KI;F: F:7 ') 3 9AH7D@?7@F AI@76
3@6 5A@FDA>>76 5ADBAD3F;A@ -:7E739D77?7@FE
3D78AD
 K73DE 3@6 ?3K
47 AB7@76 8ADD7@79AF;3F;A@ 4K 7;F:7D
B3DFK 38F7D
 K73DE 8DA?
F:7
63F7A85A??7D5;3> AB7D3F;A@E

)GDEG3@F
FA
EG5: D;9:F 3>EA  :3E 3>EA7@F7D76 ;@FA39D77?7@FE
I;F:
') 8AD
F:7
67H7>AB?7@F 5A@EFDG5F;A@ 3@6
AB7D3F;A@ A8
3
97AF:7D?3>
BAI7D B>3@F 4K  ;@ ;FE 97AF:7D?3> E7DH;57 5A@FD35F
3D73E 3@6 F:7 E3>7 FA')
A8
F:7 7>75FD;53> 7@7D9K 97@7D3F76 8DA? EG5:
97AF:7D?3>
BAI7D
B>3@FE -:7E7 39D77?7@FE
3D78AD
 K73DE
A8 5A??7D5;3>
AB7D3F;A@E 3@6 ?3K
47
7JF7@676
GBA@
F:7
D7CG7EF A8  4K @AF;57
A8
@AF >7EE
F:3@?A@F:E
BD;AD
FA
F:7
7@6
A8
F:7 5A@FD35F
B7D;A6
F:7
F7D?E 3@6 5A@6;F;A@E
A8
3@K EG5:
7JF7@E;A@ FA
47
39D776
GBA@ 4KF:7 B3DF;7E

NE 39D77?7@FE I;F:')8AD
F:7
E3>7
A8
F:7 97AF:7D?3> D7EAGD57E
BDA6G576 8DA?
F:7
E7DH;57 5A@FD35F 3D73E
3@6
F:7 E3>7
A8
F:7
7>75FD;53> 7@7D9K 97@7D3F76 8DA?
F:7
97AF:7D?3>
BAI7D
B>3@FE 5A@F3;@ 57DF3;@ BDAH;E;A@ED7>3F;@9
FABD;5;@9 5A@FDA> ;@
F:7 8AD?A8
3
53B ;@ NE ;@F7D@3> D3F7
A8 D7FGD@8ADEB75;8;5 5A@FD35FE
3EI7>> 3E 8AD
B3K?7@F 4K ') A8 ?;@;?G?9G3D3@F776 ?A@F:>KD7?G@7D3F;A@ 3@6 @A?;@3F76 53B35;FK

AD
F:7
'ADF:7D@
'79DAEE7DH;57 5A@FD35F 6A7E @AF
:3H7
39D77?7@FE I;F:')8AD
F:7
E3>7 A8
F:7
97AF:7D?3> D7EAGD57E
3@6 7>75FD;53> 7@7D9K
BDA6G576
8DA?
F:7
E7DH;57 5A@FD35F
3D73  ;@EF736 7@F7DE ;@FA5A@FD35FE I;F:6;EFD;4GF;A@
GF;>;F;7E 7>75FD;5 5AAB7D3F;H7E
3@6
AF:7D
F:;D6B3DFK
4GK7DE
A8
7>75FD;5;FK 8AD F:7 E3>7
A8
F:7 7>75FD;53>
7@7D9K 97@7D3F76 8DA?
F:7
E7DH;57 5A@FD35F

 :3E ?367
3
3F76 3DD3@97?7@FE
CG3>;8K 8AD 355AG@F;@9 G@67D ):;>;BB;@7
"@F7DBD7F3F;A@
" +"  55AD6;@9>K  :3ED75A9@;L76
F:7 5A@E;67D3F;A@ D757;H76 ADD757;H34>7 ;@ 7J5:3@97 8AD ;FE ;@8D3EFDG5FGD75A@EFDG5F;A@ E7DH;57E
AD ;FE
35CG;E;F;A@
A8 ;@8D3EFDG5FGD7
FA
47
GE76 ;@ F:7
3DD3@97?7@FE
3E
7;F:7D 3 8;@3@5;3> 3EE7F
FA F:7 7JF7@F
F:3F  :3E
3@
G@5A@6;F;A@3> 5A@FD35FG3> D;9:FFA D757;H753E:
AD
AF:7D 8;@3@5;3>
3EE7F 8AD ;FE 5A@EFDG5F;A@ E7DH;57E 8DA?
AD 3F
F:7 6;D75F;A@
A8
F:7 9D3@FAD
AD
3@ ;@F3@9;4>7 3EE7F 8AD
F:7
D;9:FFA5:3D97
GE7DE A8
F:7
BG4>;5 E7DH;57

+7H7@G7
3@6
BDA8;FE D75A9@;L76 ;@   3@6   A@
7J5:3@9;@9 5A@EFDG5F;A@ E7DH;57E 8AD
3
8;@3@5;3>
AD 3@ ;@F3@9;4>7
3EE7F 3?AG@F76
FA)  ?;>>;A@ 3@6 )   ?;>>;A@ D7EB75F;H7>K
3@6 )  ?;>>;A@ 3@6 )  ?;>>;A@ D7EB75F;H7>K )   ?;>>;A@ 3@6 )  ?;>>;A@ D7EB75F;H7>K ;@   

-:7
6;E5>AEGD7E
:3H7
477@ BDAH;676 ;@ 399D793F7 E;@57 ?3@397?7@F
47>;7H7EF:3F
F:7 E7DH;57 5A@57EE;A@ 3DD3@97?7@FE
3D7 E;?;>3D ;@
@3FGD7

D!!

)) 7@F7D76 ;@FA3 3EF -D35= G;>6 (B7D3F7 3@6 -D3@E87D )DA<75F )DA<75F 9D77?7@F I;F:') 8AD
F:7 67E;9@ 8;@3@5;@9 5A@EFDG5F;A@
AB7D3F;A@ 3@6 ?3;@F7@3@57
A8
 &793I3FF &0 G@=7D ;D76
;7E7> 7@7D3FAD )AI7D )>3@F E77
'AF7
7 )) ;E
7@F;F>76
FA
B3K?7@F A8 8;J76 53B35;FK 3@6
AB7D3F;A@E 3@6 ?3;@F7@3@57 877E 43E76
A@
F:7
@A?;@3F76 53B35;FK
A8
 &0
3EI7>>
3E 7@7D9K 877E 8DA?
F:7
67>;H7DK A8
7>75FD;5
BAI7D
FA
') -:7 8;J76 53B35;FK 3@6 AB7D3F;A@E 3@6 ?3;@F7@3@57 877E
I;>> 47 B3;6 4K ') I:7F:7D
AD @AF
F:7 7@7D9K ;E
67>;H7D76
4K ))

3E76 A@ F:7 3EE7EE?7@F
3>>
F:7 ,E
A8 
3@6
F:7 )DA<75F 9D77?7@F
A8 ))
3D7 I;F:;@
F:7 E5AB7 A8 ):;>;BB;@7 "@F7DBD7F3F;A@
" +"
 3@6
CG3>;8K
G@67DF:7 8;@3@5;3>
3EE7F ?A67> 7J57BF 8AD
F:7
, 8AD 'ADF:7D@ '79DAE )DA<75F -:7 , 8AD
'ADF:7D@ '79DAE )DA<75F
CG3>;8;7EG@67D
F:7 ;@F3@9;4>7 3EE7F ?A67> 55AD6;@9>K ;DEF 7@ DAGB:3ED75A9@;L76
F:7
5A@E;67D3F;A@ D757;H76 ADD757;H34>7 ;@ 7J5:3@97 8AD ;FE ;@8D3EFDG5FGD75A@EFDG5F;A@ E7DH;57E
AD ;FE
35CG;E;F;A@
A8 ;@8D3EFDG5FGD7
FA47
GE76 ;@ F:7 3DD3@97?7@FE
3E
7;F:7D 3 8;@3@5;3> 3EE7F 5A@57EE;A@ D757;H34>7E
FA F:7 7JF7@F
F:3F ;DEF 7@ DAGB:3E 3@ G@5A@6;F;A@3> 5A@FD35FG3> D;9:F
FA D757;H753E:
AD
AF:7D 8;@3@5;3>
3EE7F 8AD ;FE 5A@EFDG5F;A@ E7DH;57E 8DA? AD
3F
F:7 6;D75F;A@
A8
F:7
9D3@FAD
AD 3@ ;@F3@9;4>7
3EE7F 5A@57EE;A@ D;9:FE8AD
F:7
D;9:F
FA
5:3D97 GE7DE
A8 F:7 BG4>;5 E7DH;57

145 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7 ;67@F;8;34>7 3EE7FE
3@6 >;34;>;F;7E
A8 
35CG;D76 4K ;DEF 7@
F:DAG9: 4GE;@7EE 5A?4;@3F;A@ 3>D736K ;@5>G67 F:7 ;?B35F
A8 ):;>;BB;@7
"@F7DBD7F3F;A@
" +"  E77
'AF7


 ;996@92:@?
.:1
;:@6:42:062?

3 ))

)
3@6 ) )
3@6 ) 735: :3H73@
7J;EF;@9 )) I;F: &+%( F:7 >3D97EF
BAI7D 6;EFD;4GF;A@ 5A?B3@K AB7D3F;@9 ;@
F:7 ;E>3@6
A8 %GLA@ 3@6 ;@ F:7 ):;>;BB;@7E
3@6
F:7 EA>7 5GEFA?7D
A8
4AF:
BDA<75FE .@67D F:7 )) &+%( I;>> BGD5:3E7;@735:5A@FD35FK73D 8DA?
F:7
EF3DF
A8 5A??7D5;3> AB7D3F;A@E
3
?;@;?G?
@G?47D
A8 =;>AI3FF :AGDE
A8
F:7 @7F 7>75FD;53> AGFBGF
A8 ) 3@6 ) 8AD
3
B7D;A6
A8  K73DE ;>>;@9EFA &+%(
G@67D
F:7 ))
3D7 EG4EF3@F;3>>K ;@
. , A>>3DE 3@6
3
E?3>> BADF;A@ ;E 4;>>76 ;@ ):;>;BB;@7 )7EA

(@ #3@G3DK

  &+%( ) 3@6 ) E;9@76
F:7 ?7@6?7@F
FA
F:7;DD7EB75F;H7))E -:7
@79AF;3F;A@ED7EG>F76 ;@
3
B35=397
A8 5A@57EE;A@E ;@5>G6;@9
F:7
3EEG?BF;A@A8 )
3@6
)
A8 5A??G@;FK F3J7E
3F
5GDD7@F
F3JD3F7 I:;>7 5A@6;F;A@3> 5A@57EE;A@E ;@5>G67 ;@5D73E;@9 F:7 6;E5AG@FE A@ 7J57EE
97@7D3F;A@
B3K?7@F
A8
:;9:7D
B7@3>F;7E 8AD
@A@ B7D8AD?3@57
GB
FA 3 53BB76
3?AG@F D75AH7DK
A8
355G?G>3F76 677?76
67>;H7D76 7@7D9KG@F;>   D7EG>F;@9 ;@ F:7 @A@ 5:3D9;@9
A8 &+%( A8
7J57EE
97@7D3F;A@ 5:3D97 8ADEG5:
7@7D9K 67>;H7D76
47KA@6 F:7 5A@FD35F76 3?AG@F
4GF
I;F:;@ 3
  53B35;FK CGAF3 -:7
3?7@676 F7D?E
G@67D
F:7 D7EB75F;H7))E A8 )
3@6 ) I3E 3BBDAH76 4K
F:7 @7D9K +79G>3FADK A??;EE;A@ +
A@
&3K   

.@67DF:7 D7EB75F;H7))E
A8 )
3@6
) F:7 8;J76 53B35;FK 877E 3@6 8;J76
AB7D3F;@9 3@6 ?3;@F7@3@57 877E
3D7 D75A9@;L76 ?A@F:>K
43E76 A@
F:7
35FG3> '7F
7B7@634>7 3B35;FK ' F7EF76 3@6 BDAH7@ I:;5: ;E
GEG3>>K 5A@6G5F76 A@ 3 E7?; 3@@G3> 43E;E -AF3> 8;J76 53B35;FK 877E 3@6 8;J76
AB7D3F;@9 3@6 ?3;@F7@3@57 877E
3?AG@F76
FA)  ?;>>;A@   ?;>>;A@ ;@   )    ?;>>;A@ ;@   3@6 )  ?;>>;A@   ?;>>;A@ ;@
  -AF3> H3>G7
A8
BAI7DEA>6 FA &+%(
4K ) 3@6 ) I:;5: 3>D736K ;@5>G67E
F:7
8;J76 53B35;FK 877E 3@6 8;J76
AB7D3F;@9 3@6 ?3;@F7@3@57 877E ?7@F;A@76 34AH7 3?AG@F76 FA)     ?;>>;A@ ;@
  )    ?;>>;A@ ;@   3@6 )    ?;>>;A@ ;@
 

G=;6@A@ (@ #3@G3DK

  G=;6@A@
3@6
393K3@ >75FD;5 )AI7D 3@6 %;9:F A "@5 )%( 3@ 7>75FD;5 6;EFD;4GF;A@ GF;>;FK AB7D3F;@9 ;@
F:7 ;FK
A8
393K3@ 67 (DA E;9@76
3)AI7D ,GBB>K 9D77?7@F ), 8AD
F:7
G=;6@A@ B>3@F .@67DF:7 ), G=;6@A@ E:3>> 97@7D3F73@6
67>;H7DFA )%( 3@6
)%( E:3>>
F3=7
AD
B3K 8AD ;8
@AF
F3=7@
F:7 H3;>34>7 @7D9K 8AD
3
B7D;A6 5A??7@5;@9
A@ F:7 5A??7D5;3> AB7D3F;A@E
63F7 G@F;> &3D5:

  -:7
F7D?E
3@6
5A@6;F;A@E
A8 F:7 ),
3D7 EF;>> EG4<75FFA F:7 D7H;7I 4KF:7 + 3@6 F:7
78875F;H;FK 3@6 5A??7D5;3> AB7D3F;A@E
63F7 A8
F:7
), I;>> 5A;@5;67 I;F:
F:7
63F7
A8 +
3BBDAH3>
A8
F:7
39D77?7@F -:7E3>7
FA
)%(
A8 F:7 B>3@FNE AGFBGF E;@57
&3D5:
  
:3E 477@ 9AH7D@76 4K 3
&( E;9@76
4K
4AF:B3DF;7E ;@  

!K6DA !K6DA:3E
7J;EF;@9 5A@FD35FE I:;5: I7D7
FD3@E87DD76 4K ') FA !K6DA
3E B3DF
A8
F:7
35CG;E;F;A@
A8 )!) &!) 8AD
F:7 EGBB>K
A8
7>75FD;5
7@7D9KI;F: E7H7D3> 5GEFA?7DE I;F:;@
F:7 H;5;@;FK A8
'G7H35;<3
!K6DA E:3>> 97@7D3F7 3@6
67>;H7DFA
F:7E75GEFA?7DE
F:7
5A@FD35F76 7@7D9K A@
3
?A@F:>K 43E;E !K6DA;E 4AG@6
FA
E7DH;57
F:7E75GEFA?7DE
A8
F:7
D7?3;@67D
A8
F:7
EF;BG>3F76
F7D?E
F:7
D3@97 A8 I:;5: 83>>E 47FI77@ #G@7
 
3@6   -:7E75A@FD35FE ?3K 47 D7@7I34>7
GBA@ D7@79AF;3F;A@ I;F: F:7 5GEFA?7DE
3@6 6G7BDA57EE
3EEF;BG>3F76
4KF:7 +

146 &28.@21
;:@>.0@? D<6>E
.@2 #@52>
2B28;<92:@? 'G7H35;<3
"" >75FD;5 #G@7    !K6DA3@6
'(
"" D73 
:3H7 AAB7D3F;H7
"@5 D73

7J75GF76 3 @7I BAI7DEGBB>K
39D77?7@F
F:3F ;E '( "" D73
 @AI B7@6;@9 5A@E;67D3F;A@
4KF:7 +
.@F;> F:7 ;EEG3@57
A8
3BDAH;E;A@3> 3GF:AD;FK 8ADE3;6 39D77?7@F
AD 8;@3> D7EA>GF;A@
A8
F:7 3BB>;53F;A@ 8AD
F:7
3BBDAH3> F:7D7A8
F:7 +
3BBDAH76 F:7 7JF7@E;A@
A8
F:7 -), A@ 3 ?A@F: FA ?A@F:
AD A@
3B7D 4;>>;@9 B7D;A6 43E;E ,3@ #AE7>75FD;5 AAB7D3F;H7 757?47D

JF7@676 8ADFIA
4;>>;@9 B7D;A6E ADG@F;>   74DG3DK 
  4GF I3E
@A >A@97DD7@7I76 )3@F343@93@ &G@;5;B3> 757?47D

!K6DA;E
BD7E7@F>K 7H3>G3F;@9 I:7F:7D ;F 53@ >75FD;5 ,KEF7? )&,   5A@F;@G7 FA EGBB>K 7>75FD;5;FK FA )&,

"@ F:7 ?73@F;?7 I:;>7 F:7D7;E
@A
@7I 39D77?7@F 7J75GF76 47FI77@
F:7
B3DF;7EK7F !K6DA :3E 5A@F;@G76 FA EGBB>K 7>75FD;5;FK FA )&, A@ 3
4;>>;@9
B7D;A6 FA 4;>>;@9
B7D;A6 43E;E 'G7H35;<3
">75FD;5 757?47D


@7I
39D77?7@FI3EE;9@76 4K !K6DA 3@6 AAB7D3F;H7
"@5 '( "   '(
 ;@ 757?47D
 
8AD
F:7
EGBB>K A8 BAI7D ;@ F:7 EG55776;@9 8;H7 K73DE -:7 + :3E
BDAH;E;A@3>>K 3BBDAH76 F:;E 39D77?7@F B7@6;@9 8;@3> D7EA>GF;A@ A8
F:7
3BB>;53F;A@ 8AD
F:7 3BBDAH3>
F:7D7A8 343@3FG3@ >75FD;5 #G@7    'AFD7@7I76 ADBAD3F;A@ GDAD3>75FD;5
AAB7D3F;H7 757?47D

'AFD7@7I76  

  :3E
7J;EF;@9 ))EI;F:
') 8AD
F:7
67H7>AB?7@F 5A@EFDG5F;A@
3@6 AB7D3F;A@
A8
3
97AF:7D?3> BAI7D B>3@F 4K  ;@ F:7 E7DH;57 5A@FD35F
3D73E
3@6 F:7 E3>7 FA
')
A8
F:7 7>75FD;53> 7@7D9K 97@7D3F76 8DA? EG5:
97AF:7D?3>
BAI7D B>3@FE -:7))BDAH;67E
3?A@9
AF:7DE
F:3F ')
B3KE  3
43E7BD;57 B7D =0: A8
7>75FD;5;FK 67>;H7D76 EG4<75F
FA;@8>3F;A@ 36 AB7D3F;A@E
3@6 ?3K 47
7JF7@676 GBA@ F:7 D7CG7EF
A8  4K @AF;57 A8
@AF
>7EE
F:3@  ?A@F:E BD;AD
FA
F:7
7@6
A8 5A@FD35F B7D;A6
F:7
F7D?E
3@6
5A@6;F;A@E A8
3@KEG5: 7JF7@E;A@
FA
47 39D776 GBA@ 4K
F:7
B3DF;7E

7F3;>E
A8
F:7
7J;EF;@9 ))E
3D7
3E 8A>>AIE

;:@>.0@ >2. ;:@>.0@21 ::A.8 :2>4E :1 ;3
;:@>.0@ %7KF7 74G   9;93I3FF :AGD  0: #G>K   %7KF7 %GLA@  0: #G>K    &0
&;@63@3A
"
 0: 8AD
F:7
EF K73D 3@6  &3D5:
  0: 8AD
F:7
EG55776;@9 K73DE   &0
&;@63@3A
""
 0: #G@7  

-:7 )) 8AD
%7KF7 74G %GLA@ E7DH;57 5A@FD35FEF;BG>3F7E
3 @A?;@3F76
7@7D9K A8
@AF >AI7D
F:3@   A8
F:7
5A@FD35F76 3@@G3> 7@7D9K

(@
'AH7?47D

 ') 39D776
FA 3557BF 8DA?  3 5A?4;@76 3H7D397 3@@G3> @A?;@3F76 7@7D9K
A8
  0: 8AD
F:7
B7D;A6 #G>K

 FA#G>K

 8AD
%7KF7 74G
3@6
%7KF7 %GLA@ )) !AI7H7D F:7 5A?4;@76 3@@G3> @A?;@3F76
7@7D9KEF3DF;@9 #G>K 
 ;E 5GDD7@F>KG@67D

147 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

@79AF;3F;A@ I;F: ') -:7 5A@FD35FE
3D78AD
3
B7D;A6
A8
 K73DE 5A??7@5;@9 ;@ #G>K
 8AD
%7KF7 74G 3@6 #G>K  8AD
%7KF7 %GLA@

4 ,FAD76 @7D9K
A??;F?7@F
A8 

(@ H3D;AGE 63F7E  7@F7D76 ;@FA 667@6G?9D77?7@FE
FA
F:7
)) 8AD
.@;8;76
%7KF7)DA<75F 3@6 , 8AD 35&3@
BDA<75FE I;F: ') I:7D7
39D776
FA5D76;F B3K?7@FE ?367 4K
')
43E76 A@ F:7 ?;@;?G?
F3=7 AD B3K
3DD3@97?7@FE 8AD 5A@FD35F76 7@7D9K 393;@EF F:7 EFAD76 7@7D9K I:;5: D7BD7E7@FE 5A@FD35F76 7@7D9KF:3F ') 3>D736K B3;6 4GF I3E @AF 34>7
FA F3=7

7>;H7D;7E
A8
F:7
EFAD76 7@7D9K
3D7
FA47F3=7@ 8DA?
67>;H7DK 34AH7 F:7 @A?;@3F76 7@7D9K 8AD
F:7
39D776 O>;8F;@9 B7D;A6 P E
A8 757?47D

  F:7 5A??;F?7@F 8ADEFAD76
7@7D9K 8A>>AIE ;@ 0:

A@FD35F D73 ,FAD76 @7D9K .@;8;76
%7KF7    35&3@

3I3K3@   

5 ,
A8 

KH;DFG7 A8 )   7@F7D76 ;@FA E7H7@ ,EI;F: F:7
(
9D3@F;@9 
F:7 D;9:FFA
7JB>AD7 67H7>AB 3@6 GF;>;L7
F:7 5AG@FDKNE 97AF:7D?3> D7EAGD57 EG4<75F
FA
E:3D;@9 A8
@7F
BDA5776EI;F: F:7 9AH7D@?7@F -:7
@7F BDA5776E ;EI:3FD7?3;@E
38F7D
676G5F;@9 8DA?
F:7
9DAEE
BDA5776E
F:7 3>>AI34>7 D75AH7D34>7 5AEFE
I:;5: ;@5>G67 67H7>AB?7@F
BDA6G5F;A@ 3@6 AB7D3F;@9 5AEFE -:7 3>>AI34>7 D75AH7D34>7 5AEFE E:3>> @AF 7J5776   A8
F:7
9DAEE
BDA5776E B3KE  
A8
F:7 @7F BDA5776E
3E 9AH7D@?7@FE:3D73@6D7F3;@E
F:7
D7?3;@;@9  

-:7
 
9AH7D@?7@FE:3D7;E 5A?BD;E76
A8 DAK3>FK 877E
3@6 ;@5A?7
F3J7E -:7DAK3>FK 877E
3D7 E:3D76 4KF:7 9AH7D@?7@FF:DAG9:
(   3@6 F:7
% .  

 E75GD76
3@
3BBDAH3> 8DA?
F:7
(
FA
6787DD7?;FF3@57
A8
F:7 DAK3>FK BADF;A@ A8
F:7
E:3D7A8
F:7
):;>;BB;@7 AH7D@?7@F
3F ) ?;>>;A@
B7DK73D 
BADF;A@
A8 E3;6 B3K?7@FI3E 3BB>;76
FA
F:7 3?ADF;L3F;A@
A8
6787DD76 DAK3>FK 877E
3E
A8
757?47D

 3@6  3@6 F:7 43>3@57 ;E
ADI;>>
47
3BB>;76
FA8GFGD7 A4>;93F;A@E (@&3D5:
   
3@6 ( 39D776
FA;@5D73E7
F:7
DAK3>FK B3K?7@F B>3@ 8DA?
FA
) ?;>>;A@ B7DK73DFA) ?;>>;A@ B7DK73DEF3DF;@9    BADF;A@ A8 F:7 D7H;E76 B3K?7@FI3E 3BB>;76
FA
F:7 3?ADF;L3F;A@
A8
F:7
6787DD76 DAK3>FK 877E
3E
A8
757?47D

 
3@6
  3@6
F:7
43>3@57 I;>>
47
3BB>;76
FA
8GFGD7
A4>;93F;A@E 8AD
7J;EF;@9 
AB7D3F;@9 BDA<75FE

!AI7H7D D7?;FF3@57E
FA
F:7
% .A8;FE E:3D7;@DAK3>FK 877E
3D7 ?367 3E
F:7K 83>>
6G7 BGDEG3@FFA F:7 %A53> AH7D@?7@F
A67
% 

-AF3> DAK3>FK 877E
6G7
FA(
3@6
FA% .E
3D7 E:AI@;@'AF7 

6 ,,
A8 

 :3E
7J;EF;@9 ,,E 8AD
F:7
EGBB>K
A8
F:7
97AF:7D?3> 7@7D9K 5GDD7@F>K
BDA6G576 4K ;FE 97AF:7D?3> BDA<75FE
FA
(- 5A@FD35FADE
3@6 F:7 BAI7D
B>3@FE AI@76
3@6
AB7D3F76 4K ')
.@67D
F:7 ,, ') 39D77E
FA
B3K  3
43E7BD;57
B7D =0:
A8
9DAEE
97@7D3F;A@ 8AD
3>>
F:7 E7DH;57 5A@FD35F
3D73E 7J57BF 8AD -A@9A@3@
")DA<75F EG4<75F
FA
;@8>3F;A@ 363@F 835FAD

')
B3KE 
343E7
BD;57 B7D =0: A8
@7F
97@7D3F;A@ 8AD -A@9A@3@ ")DA<75F -:7 ,, ;E 8AD
3B7D;A6
A8

FAK73DE

7F3;>E
A8
F:7
7J;EF;@9 ,,E
3D7
3E 8A>>AIE

;:@>.0@ >2. A.>.:@221 (#$ :1 ;3
;:@>.0@ -A@9A@3@
"
 B>3@F 835FAD #G@7   )3>;@B;@A@ "  B>3@F 835FAD 757?47D
 
)3>;@B;@A@ "" 5AH7DE 8AGD   8AD
F:7
EF K73D  8AD
F:7
757?47D
 
&3D5: ?A6G>3D
B>3@FE @6 K73D  8AD
F:7
D6 3@6   EG4E7CG7@FK73DE

148 ;:@>.0@ >2. A.>.:@221 (#$ :1 ;3
;:@>.0@ 35&3@
"
 B>3@F 835FAD 'AH7?47D
 
35&3@
""
5AH7DE FIA

  8AD
F:7
EF K73D  8AD
F:7
&3D5:
  3@6 &0 ?A6G>3D
B>3@FE @6 K73D  8AD
F:7
D6 3@6 757?47D
 
EG4E7CG7@FK73DE

7 (- 9D77?7@FE

)) )) :3E
3@ 7J;EF;@9 )DA<75F 9D77?7@F
I;F:
') .@67DF:7 )DA<75F 9D77?7@F ')EGBB>;7E 3>> F:7 8G7> D7CG;D76 FA 97@7D3F7
7>75FD;5;FK I;F:3>>7>75FD;5;FK 97@7D3F76 BGD5:3E76
4K
') )) ;E 7@F;F>76
FA
B3K?7@F A8 8;J76 53B35;FK 3@6 AB7D3F;A@E
3@6 ?3;@F7@3@57 877E
43E76 A@
F:7 @A?;@3F76 53B35;FK
3EI7>>
3E 7@7D9K 877E 8DA?
F:7
67>;H7DK
A8
7>75FD;5
BAI7DFA
') -:7 )DA<75F 9D77?7@F ;E 8AD
3
B7D;A6
A8
 K73DE
I:;5: DG@E
GB
FA#G>K   AAB7D3F;A@
B7D;A6
.BA@
7JB;D3F;A@ A8
F:7
 K73D
B7D;A6 )) E:3>>
FD3@E87D
FA
')
3>>
A8 ;FE D;9:FE
F;F>7E 3@6 ;@F7D7EFE ;@ F:7
BAI7D B>3@F 5A?B>7J 8D77 8DA? >;7@E 5D73F76 4K )) 3@6 I;F:AGF
3@K 5A?B7@E3F;A@

"@ >;@7 I;F:
F:7 )"+ ?3@63F76
"@67B7@67@F )AI7D )DA6G57DE ")) 5A@FD35FE D7H;7I ),%& ') 3@6 )) 7J75GF76
3@6 E;9@76 ;@
  3 7@7D3> D3?7IAD=9D77?7@F  
F:3F
7?4A6;76 F:7 D7@79AF;3F76
F7D?E
3@6
5A@6;F;A@E
A8
F:7 (- 9D77?7@F -:7  53BE
3F  &0
F:7
3G3@9 B>3@FNE @A?;@3F76 53B35;FK 3@6 A4>;93F7E )) FA?3=7
F:7 )  =0: 5A@FD;4GF;A@
FA
3@ 7@H;DA@?7@F 8G@6 8DA?
F:7
78875F;H7
63F7
A8
F:7  GB
FA
F:7 7@6 A8
AAB7D3F;A@ )7D;A6 A@H7DE7>K F:;E B3H7EI3K 8AD
3>>AI;@9
F:7 :73FDG@
A8
F:7 3G3@9 B>3@F
3F  
&0 8AD
A@7
:AGD 63;>K 7J57BF
A@ I77=7@6E 3@6
:A>;63KE
6GD;@9
7JF7@676
75A@A?;5 E:GF6AI@
3@6
F:7 53DDKAH7D
A8
  A8 F:7 B>3@FNE G@GF;>;L76 6AI@F;?7
3>>AI3@57
GB
FA
F:D77 K73DE -:7  >;=7I;E7
B7D?;FE
F:7
BGDEG;F
A8 4;>3F7D3> 5A@FD35FE 8AD
3@5;>>3DK E7DH;57E
3@6
F:7
7J57EE
 &0 53B35;FK I;F:'3F;A@3> -D3@E?;EE;A@ ADBAD3F;A@ -D3@EA
3@6 BAI7D BGD5:3E7DE D7EB75F;H7>K
G@67D 3@ ;@5A?7 E:3D;@9
3DD3@97?7@F EG4<75F
FA
57DF3;@ >;?;F3F;A@E
3@6
D7EFD;5F;A@E -:7'3F;A@3> 5A@A?;5
7H7>AB?7@F GF:AD;FK ' 3BBDAH76
F:7  A@ #G>K   

@7D9K A@H7DE;A@ 9D77?7@FE E
A8   7@F7D76 ;@FAI;F: H3D;AGE ;@F7D@3F;A@3> 97AF:7D?3>
BAI7D
BDA6G57DE (-
A@FD35FADE8AD F:7 5A@EFDG5F;A@ 3@6
AB7D3F;A@ A8
BAI7D B>3@FE ;@
%7KF7
3@6 &;@63@3A
FA
5A@H7DF F:7 97AF:7D?3> EF73?
FA
47
EGBB>;76
4K 
FA
7>75FD;5;FK

.@67D
F:7 
F:7 (-
A@FD35FAD
67>;H7DE 7>75FD;5;FK FA ') A@ 47:3>8
A8 

%7KF7 .@67DF:7  I;F: F:7 (-
A@FD35FADE
@3?7>K 3>;8AD@;3 @7D9K
"@F7D@3F;A@3> %F6 8AD 3
 &0 )AI7D )>3@F .BB7D &3:;3A 9D77?7@F 4
 &0 )AI7D )>3@F &3>;F4A9 9D77?7@F 3@6 5
 &0 )AI7D )>3@F
&3:3@396A@9 9D77?7@F 3@6 I;F:(D?3F
"@5 8AD
F:7 %7KF7 (BF;?;L3F;A@ )DA<75F (- 9D77?7@F  B3KE
F:7 (-
A@FD35FADE ?A@F:>K
7@7D9K 877E 5A?BGF76 43E76 A@
35FG3>
7@7D9K 67>;H7D76
3@6 53B35;FK 877E 3B35;FK 877E I:;5: ;@5>G67 53B;F3> 3@6 8;J76 AB7D3F;@9 5AEF D75AH7DK 877E
3@6
E7DH;57 877E
3D7 5A?BGF76
A@
B7D =;>AI3FF @A?;@3F76 53B35;FK 43E;E -:7 877E
7J57BF 8AD
F:7
53B;F3> 5AEF D75AH7DK 877E
3D7 EG4<75FFA;@8>3F;A@
36

-:7 E
3D78AD
3
B7D;A6 A8
F7@ K73DE -:7 AI@7DE:;B
A8
F:7
.BB7D &3:;3A )AI7D )>3@FI3E FD3@E87DD76
FA
A@#G@7
   &3>;F4A9 3@6 &3:3@396A@9 )AI7D )>3@FE I7D7
FD3@E87DD76
A@ #G>K    3@6 F:7 (BF;?;L3F;A@ )AI7D )>3@F A@ ,7BF7?47D
  

&;@63@3A .@67DF:7  I;F:(J4AI )AI7D
ADBAD3F;A@ 3@6 &3DG47@;
ADBAD3F;A@  B3KE
F:7 (- A@FD35FADE ?A@F:>K 7@7D9K 788;5;7@5K 877E 3@6 53B35;FK 877E
3@6
7J57EE
7@7D9K 877E

3B35;FK 877E I:;5: ;@5>G67 53B;F3>
3@6 8;J76
AB7D3F;@9 5AEF D75AH7DK 877E
3@6 E7DH;57 877E
3D7 5A?BGF76
A@ B7D =0
@A?;@3F76 53B35;FK
43E;E J57EE
7@7D9K 877E
3D7
B3K?7@F
FA(-
A@FD35FADE 8AD
7@7D9K 97@7D3F76
A@ FAB A8
F:7
@A?;@3F76 53B35;FK -:7 877E
7J57BF 8AD
7@7D9K 788;5;7@5K 877E
3@6 53B;F3> 5AEF D75AH7DK 877E
3D7 EG4<75F
FA;@8>3F;A@ 36

149 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7 5A@FD35F ;E 8AD
3
B7D;A6 A8
F7@ K73DE
G@F;>
&3D5:   8AD
&;@63@3A "  &0 3@6 #G@7   8AD &;@63@3A
""   &0 @
3?7@6?7@F
FA
F:7 &;@63@3A "  I3EE;9@76A@'AH7?47D
   7JF7@6;@9
F:7 5A@FD35F B7D;A6
FA#G@7   I;F: F:7 5ADD7EBA@6;@9 D7EFDG5FGD;@9
A8
F:7 (- 877E

-:7 83;DH3>G7
A8
F:7E7E
3D7 ;@5>G676 ;@ 67F7D?;@;@9
F:7 83;DH3>G7
A8
F:7
5A@EFDG5F;A@ E7DH;57E 355AG@F76 8AD
G@67D ):;>;BB;@7 "@F7DBD7F3F;A@
" +" 
3E
6;E5GEE76 ;@ 'AF7 

8 @9;@77D;@9 )DA5GD7?7@F
3@6
A@EFDG5F;A@ ) A@FD35F

)
7@F7D76 ;@FA
3
-GD@=7K )
A@FD35F ) A@FD35F
I;F:,;7?7@E  ,;7?7@E )AI7D 7@7D3F;A@ 3@6 ,;7?7@E
"@5 5A>>75F;H7>K O,;7?7@EP8AD
F:7
5A@EFDG5F;A@
A8
F:7  &0 A?4;@76 K5>7 )AI7D )>3@F F:7 O,3@F3+;F3)AI7D )>3@FP ADO)DA<75FP

6;EBGF7
:3E 3D;E7@ 47FI77@ )
3@6 ,;7?7@E ;@ 5A@@75F;A@ I;F:;FE 5A@EFDG5F;A@
A8 )NE BAI7D B>3@F ;@
355AD63@57 I;F: F:7 )
A@FD35FI;F: ,;7?7@E 8AD
F:7
5A@EFDG5F;A@
A8
F:7 ,3@F3+;F3 BAI7D B>3@F -:76;EBGF7 EF7??76 8DA?
F:7
67>3KE ;@5GDD76 4K ,;7?7@E
3@6 ;FE EG45A@FD35FADE ;@
F:7 F;?7>K 5A?B>7F;A@
A8
F:7 )DA<75F

(@
757?47D

 
F:7 D4;FD3> -D;4G@3> ;EEG76 ;FE ;@3> I3D6 I:;5: ;E 8;@3>
3@6 4;@6;@9 ;@5ADBAD3F;@9 3>> BD7H;AGE 3I3D6E
3@6
F:7
39D77?7@F A8
F:7
B3DF;7E
FA
E7FF>7
3>> AGFEF3@6;@9 ?3FF7DE 47FI77@ F:7? -:7 ;EEG3@57
A8
F:7
;@3> I3D68;@3>>KD7EA>H76 3>> AGFEF3@6;@9 ?3FF7DE ;@
F:7 3D4;FD3F;A@ 3@6 8AD?3>>K 5A@5>G676 F:7 6;EBGF747FI77@ ) 3@6 ,;7?7@E

9 3E ,3>7 3@6 )GD5:3E79D77?7@FE  ,)

)
3@6 ) 735: :3H73@
7J;EF;@9 ,) I;F:
F:7 5A@EADF;G?
A8 ,:7>> ):;>;BB;@7 JB>AD3F;A@  / ,:7>> ):;>;BB;@7E
%%
:7HDA@ &3>3?B3K3 %% 3@6 )'( JB>AD3F;A@ ADBAD3F;A@ 5A>>75F;H7>K D787DD76
FA
3E 3E ,7>>7DE 8AD
F:7
EGBB>K A8
@3FGD3> 93E ;@ 5A@@75F;A@ I;F: F:7 AB7D3F;A@E
A8
F:7
BAI7D B>3@FE -:7 ,) @AI A@ ;FE E7H7@F: A@FD35F 273D ;E 8AD
3
FAF3>
B7D;A6 A8
3BBDAJ;?3F7>K  K73DE

-AF3> 5AEF
A8
@3FGD3> 93E
BGD5:3E76
3?AG@F76 FA)  ?;>>;A@   ?;>>;A@ ;@   )  ?;>>;A@  ?;>>;A@ ;@
  3@6 )  ?;>>;A@   ?;>>;A@ ;@   8AD )
3@6 )  ?;>>;A@   ?;>>;A@ ;@
  )  ?;>>;A@   ?;>>;A@ ;@   3@6 )  ?;>>;A@   ?;>>;A@ ;@   8AD )

.@67DF:7 ,) )
3@6 )
3D7 A4>;93F76
FA5A@EG?7 AD
B3K 8AD ;8
@AF
5A@EG?76
3
?;@;?G? CG3@F;FK
A8
93E 8AD
735:
A@FD35F 273D I:;5: DG@E 8DA?
757?47D

A8
3
B3DF;5G>3DK73DGB FA 757?47D

A8
F:7 ;??76;3F7>KEG55776;@9 K73D 53>>76 F:7 -3=7 (D )3K *G3@F;FK -()* -:GE ;8 F:7 -()* ;E
@AF 5A@EG?76
I;F:;@ 3 B3DF;5G>3D
A@FD35F 273D ) 3@6 ) ;@5GD
3@
O@@G3> 78;5;7@5KP 8AD
F:3F
A@FD35F 273D
7CG;H3>7@F
FA
F:7 FAF3> HA>G?7
A8
G@GE76
93E ; 7
F:7
-()* >7EE F:7
35FG3>
CG3@F;FK A8
93E 5A@EG?76 )
3@6 )
3D7 D7CG;D76
FA?3=7
B3K?7@FE
FA
F:7
3E ,7>>7DE 8ADEG5: @@G3> 78;5;7@5K
38F7D
F:7 7@6
A8
F:7 A@FD35F 273D 8F7D
B3K;@9 8AD @@G3> 78;5;7@5K 93E )
3@6 ) 53@ EG4<75F
FA
F:7 F7D?E
A8
F:7
,) O?3=7 GBPEG5: @@G3> 78;5;7@5K 4K 5A@EG?;@9
F:7
G@GE76 4GF B3;6 8AD
93E I;F:AGF 8GDF:7D 5:3D97 I;F:;@ F7@ A@FD35F 273D 38F7D
F:7
A@FD35F 273D 8ADI:;5:
F:7 @@G3> 78;5;7@5KI3E ;@5GDD76 ;@ F:7
AD67D
F:3F ;F 3DAE7

)
B3;6 57DF3;@ 877EFA
F:7 3E ,7>>7DE ;@>;7G A8 ;@5GDD;@9 57DF3;@ @@G3> 78;5;7@5K B3K?7@F A4>;93F;A@E 8AD
F:7
8;DEF
A@FD35F 273D   3E
3
D7EG>F
A8
F:7
83;>GD7
FA 5A??7@57 5A??7D5;3> AB7D3F;A@E
A8
F:7
BAI7D B>3@F
3F
F:7 ,F3DF 3F7#G>K
   ;@ 355AD63@57 I;F:
F:7 ,) -:7E7 877E 3?AG@F76
FA   ?;>>;A@ 3@6 :3H7 477@ 4AA=76
3E
BD7B3;6 93E @7F
A8
36
78;5;7@5K ;@5GDD76 ;@
A@FD35F 273D   E77 'AF7
 "@
  ) I3E 34>7
FA D73>;L7
F:7 8G>>
3?AG@F
A8
BD7B3;6 93E

AD
A@FD35F 273D
  F:7 3E ,7>>7DE ;EEG76 F:7 @@G3> +75A@5;>;3F;A@ ,F3F7?7@FE +,
A8 ) 3@6 ) A@
757?47D 
  -:7 3E ,7>>7DE 3D7 5>3;?;@9 @@G3>
78;5;7@5K B3K?7@FE 8AD A@FD35F 273D  
3?AG@F;@9
FA   ?;>>;A@ 8AD ) 3@6   ?;>>;A@ 8AD ) AF: ) 3@6 ) 6;E39D77 F:3FEG5: @@G3> 78;5;7@5K B3K?7@FE 3D7
6G7 3@6 735: 5>3;?76
8AD
3?A@9
AF:7DE D7>;78
6G7
FA8AD57 ?3<7GD7
7H7@FE
F:3F
38875F76
F:7 ,3@
%AD7@LA 3@6 ,3@F3+;F3
B>3@FE D7EB75F;H7>K )NE
3@6 )NE
BAE;F;A@ ;E
F:3F
F:7
BAI7D B>3@FE
35FG3>>K 5A@EG?76 ?AD7
F:3@ F:7;DD7EB75F;H7

150 -()*E
3@6
3D7
7@F;F>76
FA?3=7 GB;FE (GFEF3@6;@9 3>3@57
A8 @@G3> 78;5;7@5K -:7?3FF7D ;E
@AI ;@
3D4;FD3F;A@
G@67DF:7
"
+G>7E
A8 D4;FD3F;A@ BGDEG3@F
FA
F:7 F7D?E A8
F:7
,) -:7
3D4;FD3> FD;4G@3> ;E
7JB75F76 FA D7@67D ;FE
675;E;A@
A@
F:7
6;EBGF7E
I;F:;@  

-:7
3>>7976 @@G3> 78;5;7@5K 8AD 5A@FD35FK73D   ;E
BD7E7@F76
3E B3DF
A8 O(4>;93F;A@E
FA 3E ,7>>7DEP
355AG@F ;@
F:7 5A@EA>;63F76
43>3@57 E:77F 3@6
F:7 5ADD7EBA@6;@9 D757;H34>7 8DA?
&+%( ;E
BD7E7@F76 3E
B3DF
A8 O(F:7D 5GDD7@F
3EE7FEP
355AG@F ;@
F:7
  5A@EA>;63F76 43>3@57 E:77F 3@6 ;@ O(F:7D
@A@5GDD7@F
3EE7FEP 355AG@F ;@
F:7
  5A@EA>;63F76 43>3@57 E:77F

: %G4D;53F;@9 (;> ,GBB>K 9D77?7@F

)) 7@F7D76 ;@FA3EGBB>K 5A@FD35FI;F: );>;B;@3E ,:7>> )7FDA>7G?
ADBAD3F;A@ I:7D74KF:7 >3FF7D I;>> EGBB>K >G4D;53F;@9 A;> 8AD
3
B7D;A6 A8
 K73DE G@F;>   3F
F:7 39D776
BD;57 ;@6;53F76 ;@ F:7 5A@FD35F -:7
BD;57 ;EEG4<75F
FA
36

; (B7D3F;@9 3@6 &3;@F7@3@57 (& 9D77?7@FE

)
3@6 ) )
3@6 ) :3H7 E7B3D3F7 (& 9D77?7@FE
I;F:,;7?7@E )AI7D (B7D3F;A@E
"@5 ,)( ?3;@>K 8AD
F:7
AB7D3F;A@ ?3;@F7@3@57 ?3@397?7@F
3@6
D7B3;DE7DH;57E A8
F:7;DD7EB75F;H7
BAI7D B>3@FE E EF3F76 ;@ F:7 D7EB75F;H7 (& 9D77?7@FE
A8 )
3@6 ) ,)( ;ED7EBA@E;4>7
8AD ?3;@F3;@;@9 367CG3F7;@H7@FADK
A8 EB3D7
B3DFE
3557EEAD;7E 3@6 5A@EG?34>7E ,)( ;E 3>EA D7EBA@E;4>7 8AD D7B>35;@9 3@6 D7B3;D;@9 F:7 @757EE3DK B3DFE
3@6
7CG;B?7@F
A8
F:7
BAI7D B>3@FE
FA
7@EGD7 F:7
BDAB7D AB7D3F;A@
3@6 ?3;@F7@3@57
A8
F:7
BAI7D B>3@FE
FA
?77F
F:7
5A@FD35FG3> 5A??;F?7@FE
A8 )
3@6 )
G@67D
F:7;DD7EB75F;H7))E 3@6;@355AD63@57 I;F: F:7 AA6 .F;>;FK )D35F;57 -AF3> AB7D3F;A@E 3@6 ?3;@F7@3@57 5AEFE 5:3D976
FA
F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7
3?AG@F76
FA)  ?;>>;A@   ?;>>;A@ ;@
  )  ?;>>;A@   ?;>>;A@ ;@  
3@6 )  ?;>>;A@   ?;>>;A@ ;@  

"@
  BD7B3;6 ?3>;A@   ?;>>;A@ I7D7 D75>3EE;8;76 FA O)AI7D B>3@F
3@6
7CG;B?7@FP
355AG@F 3E
3
D7EG>F A8
F:7
E5:76G>76 ?3;@F7@3@57 AGF397 A8 ,3@F3
+;F3 3@6 ,3@
%AD7@LA
BAI7D B>3@FE E
A8
757?47D

 
3@6   57DF3;@ (& 877E 3?AG@F;@9 FA)  ?;>>;A@   ?;>>;A@
3@6 ) ?;>>;A@   ?;>>;A@ D7EB75F;H7>K I:;5: D7>3F7EFA ?3> 47 D7B>3576 6GD;@9
F:7
E5:76G>76 ?3;@F7@3@57
AGF397 I7D7 BD7E7@F76
3E B3DF
A8 O(F:7D
@A@5GDD7@F
3EE7FEP
355AG@F ;@ F:7 5A@EA>;63F76 43>3@57 E:77F E77 'AF7  

3E76 A@ F:7 5GDD7@F AB7D3F;@9 D79;?7
A8
4AF:B>3@FE ;F ;E
7EF;?3F76 F:3FF:7 ,3@F3
+;F3 3@6 ,3@ %AD7@LA (& 9D77?7@FE
I;>>
7JB;D7 ;@   ) 3@6 ) 3D75GDD7@F>K 5A@E;67D;@9
F:7 ABF;A@E 8AD
F:7
)>3@FEN
AB7D3F;A@ 3@6 ?3;@F7@3@57
38F7D
 

!K6DA !K6DA7@F7D76 ;@FA
3@ (& 9D77?7@FI;F: F:7 '" I;F: F:7 5A@8AD?;FK
A8 ') .@67DF:7 (& 9D77?7@F
'" I;>> ?3@397
AB7D3F7 ?3;@F3;@
3@6 D7:34;>;F3F7
F:7
'A@ )AI7D A?BA@7@FE
A8
F:7
)!) &!) ;@ 5A@E;67D3F;A@ 8AD
3
E7DH;57 877
43E76 A@
35FG3> 5G4;5 ?7F7D
A8
I3F7D
GE76 4K !K6DA8AD BAI7D 97@7D3F;A@

"@
366;F;A@ !K6DA I;>> BDAH;67 8AD
3
-DGEF G@6 3?AG@F;@9
FA) ?;>>;A@   ?;>>;A@ I;F:;@ F:7 8;DEF
FIA K73DE
A8
F:7
(& 9D77?7@F -:7
3?ADF;L3F;A@ 8AD
F:7
-DGEF G@6 ;E
B3K34>7 ;@
 ?A@F:>K B3K?7@FE EF3DF;@9
'AH7?47D
  3@6 ;E
4;>>76 4K '" ;@ 366;F;A@ FA
F:7 ?A@F:>KE7DH;57 877 -:7 -DGEF G@6
:3E
477@ 8G>>K 8G@676
3E
A8 (5FA47D  

-:7 (& 9D77?7@F ;E
78875F;H78AD
3
B7D;A6
A8
 K73DE 5A??7@5;@9
A@ 'AH7?47D

  3@6 D7@7I34>7 8AD
3@AF:7D  K73DE
G@67D
F:7
F7D?E
3@6
5A@6;F;A@E
3E ?3K
47
?GFG3>>K 39D776 GBA@ 4K 4AF:B3DF;7E

-AF3> E7DH;57 877E ;@5GDD76 ;@5>G6;@9 F:7 -DGEF G@6
3?ADF;L3F;A@
3?AG@F76
FA)  ?;>>;A@
3@6 )  ?;>>;A@ ;@  
3@6   D7EB75F;H7>K
3@6
3D7;@5>G676 G@67DO(B7D3F;A@E 3@6 ?3;@F7@3@57P 355AG@F ;@ F:7 5A@EA>;63F76 EF3F7?7@F
A8 ;@5A?7

151 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

< ,G4EF3F;A@
"@F7D5A@@75F;A@ 9D77?7@F

)
:3E 3@ 39D77?7@FI;F: &+%( 3@6
') 8AD3
F:7
5A@EFDG5F;A@
A8 EG4EF3F;A@
GB9D367E
3F
F:7 ') EG4EF3F;A@ ;@ 3>353
3@6 F:7 6A@3F;A@ A8 EG5: EG4EF3F;A@
GB9D367EFA')4F:7 5A@EFDG5F;A@ A8
3
 =;>A?7F7D
FD3@E?;EE;A@>;@78DA?
F:7
BAI7D B>3@F
FA
F:7 ') EG4EF3F;A@ ;@ 3>353 3@6 EG4E7CG7@F 6A@3F;A@
A8 EG5:
FD3@E?;EE;A@ >;@7 FA ') 5
F:7 ;@F7D5A@@75F;A@
A8
F:7 BAI7D B>3@F FA
F:7
') D;6 ,KEF7?
3@6
6
F:7 D757;BF 3@6 67>;H7DK
A8
7@7D9K 3@6 53B35;FK 8DA?
F:7
BAI7D B>3@F FA &+%(NE BA;@F
A8 D757;BF

E
A8
757?47D

  ) ;EEF;>> ;@
F:7
BDA57EE
A8
FD3@E87DD;@9
F:7
EG4EF3F;A@ GB9D367E ;@ 3>353
3EI7>>
3E
F:7  =;>AHA>FE =/ ,3@F3+;F3
FA 3>353
FD3@E?;EE;A@ >;@7
FA
')

= "@F7D;?
"@F7D5A@@75F;A@ 9D77?7@F

)
:3E 3@ 39D77?7@FI;F:
')
3@6 &+%( I:7D74K ') I;>> 47 D7EBA@E;4>7 8AD
F:7
67>;H7DK 3@6
FD3@E?;EE;A@
A8
3>> 7@7D9K 3@6 53B35;FK 8DA? )NE
BAI7D B>3@F
FA
&+%(NE
BA;@F
A8 D757;BF

> )+.)
A@FD35F

(@ #3@G3DK   
!K6DA E;9@76 F:7 %7FF7D
A8 557BF3@57 % 8AD
F:7 )+.) I;F: / -! !2+( ?4! A@FD35FAD
3@ GEFD;3@ 5A?B3@K

-:7 5A@FD35F
BDAH;67E
F:3FF:7
A@FD35FADI;>> G@67DF3=7
F:7
7@9;@77D;@9 BDA5GD7?7@F ;@EF3>>3F;A@ F7EF;@9
3@6 5A??;EE;A@;@9 A8
F:7
)+.) -:7
F75:@;53> E5AB7 A8
F:7
)+.)
39D776
GBA@ 4K !K6DA 3@6 F:7 A@FD35FAD ;@5>G67E
F:7
8A>>AI;@9

; +78GD4;E:?7@F
3@6 GB9D367
A8 )3@F343@93@ ?3;@ 3@6
3GJ;>;3DK B>3@FI:;5: ;@5>G67E

-GD4;@7
3@6 I;5=7F
93F7
D7B>357?7@F :7365AH7D ?A6;8;53F;A@
D38F
FG47
D7B3;D 3@6 ?A6;8;53F;A@
7@7D3FADD7I;@6 3@6 D78GD4;E:?7@F
+7B>357?7@F
A8 =7K
3GJ;>;3DK EKEF7?E

;; )AI7D ;@5D73E78DA?

&0 FA
 
&0
B7D
G@;F

-:7
FAF3> GB63F76 5A@FD35F BD;57
A8
F:7 )+.) 3?AG@FE
FA
^  ?;>>;A@   ?;>>;A@ ;@5>G6;@9
F:7 A@FD35F (BF;A@E (
F:3FI;>> 47
7J7D5;E76 4K !K6DA -:7 5A@FD35F BDAH;67E
F:3F B3K?7@FE
FA
F:7 A@FD35FAD 3D7 ?367 ;@ 355AD63@57 I;F: F:7 &;>7EFA@7 ,5:76G>7
3E
BDAH;676 ;@
F:7
A@FD35F

!K6DA:3E
F:7 ABF;A@ FA?3=7
3@K
B3K?7@FE FA
F:7
A@FD35FAD ;@ . ,
A>>3D 3F
3@ 7J5:3@97 D3F7 8;J76 4KD787D7@57
FA
F:7 GDAB73@
7@FD3> 3@= 8;J;@9 D3F78AD 5A@H7DF;@9 GDA FA . , A>>3D
3E 3F
F:7 63F7A8
F:7
% B>GE 3
BD7?;G?A8
  B7D GDA ,;?;>3D>K I;F: D7EB75F
FA
F:7 (NE !K6DA 3>EA:3E
F:7
ABF;A@
FA
?3=7
3@K
B3K?7@FE FA
F:7
A@FD35FAD ;@ . ,
A>>3D
3F 3@
7J5:3@97 D3F78;J76 4KD787D7@57 FA F:7 GDAB73@
7@FD3> 3@= 8;J;@9 D3F7
8AD 5A@H7DF;@9 GDA FA
. , A>>3D
3E 3F
F:7
63F7 A8
F:7
D7>7H3@F ABF;A@
@AF;57 B>GE
3BD7?;G?
A8
  B7D GDA

-3=7AH7D
A8
F:7
D78GD4;E:76
3@6 GB9D3676 B>3@F ?35:;@7DK 3@6 7CG;B?7@F ;EE5:76G>76 FA
F3=7
B>357 ;@ 757?47D
 
8AD
F:7 8;DEF
G@;F 3@6 ;@ 757?47D
 
8AD
F:7 E75A@6 G@;F

? D3@5:;E7

-:7 ;DEF
!A>6;@9E DAGB F:DAG9: ! :3E
3
8D3@5:;E7
9D3@F76 4KF:7 F:
A@9D7EE
A8
F:7
):;>;BB;@7EF:DAG9: +7BG4>;5 5F +
'A
 FA5A@EFDG5F ;@EF3>>
AI@
AB7D3F7 3@6 ?3;@F3;@ 3 @3FGD3> 93E
B;B7>;@7 EKEF7? 8AD
F:7
FD3@EBADF3F;A@ 3@6 6;EFD;4GF;A@ A8
F:7
@3FGD3> 93E
F:DAG9:AGF
F:7 ;E>3@6
A8
%GLA@ F:7 O D3@5:;E7P -:7 D3@5:;E7;E 8AD
3
F7D?
A8
 K73DE G@F;> 74DG3DK    ! ?GEF 5A??7@57
F:7
7J7D5;E7
A8
3@K
BD;H;>797E 9D3@F76 G@67DF:7 D3@5:;E7 I;F:;@ 8;H7 K73DE G@F;> 74DG3DK    8DA? ;FE
78875F;H;FK AF:7DI;E7
F:7
D3@5:;E7 E:3>>
47
677?76 D7HA=76 E
A8 &3D5:

  ! 3?A@9
AF:7DE
:3EE75GD76 E
A@ FIA B;B7>;@7
BDA<75FE
@3?7>K
F:7 3>343DLA@ );B7>;@7 3@6 F:7 3F3@93E
'3FGD3> 3E
;EFD;4GF;A@ );B7>;@7 A@ &3K   
3@6 G9GEF 
  D7EB75F;H7>K
3@6 :3E
G@67DF3=7@ EG4EF3@F;3> BD7 7@9;@77D;@9 IAD=E
3@6
67E;9@ 3@6

152 5A??7@576
BD7B3D3FADK
IAD=E 8AD
F:7
D;9:F A8 I3K 35CG;E;F;A@
35F;H;F;7E -:7 E
3D7 H3>;6 8AD
3
B7D;A6
A8
 K73DE

@ A@F;@97@5;7E

) ) I3E
3EE7EE76
4KF:7 GD73G A8
"@F7D@3> +7H7@G7 "+
A@
#G>K 
  8AD
678;5;7@5K ;@5A?7 F3J 8AD
F3J34>7 K73DE
  3@6  ) 8;>76 ;FE )DAF7EF
%7FF7D
FA
F:7 "+
A@ (5FA47D
   (@ 355AG@F
A8
F:7 "+NE 83;>GD7 FA
35F A@ )NE )DAF7EF I;F:;@ F:7
BD7E5D;47 B7D;A6 ) 8;>76 I;F: F:7 AGDF
A8 -3J BB73>E -
A@
#G@7

  3 )7F;F;A@
393;@EF F:7 ;@3> EE7EE?7@F
'AF;57E
3@6 AD?3> >7FF7DE
A8
7?3@6 ;EEG76 4K
F:7 "+ (@ 74DG3DK   
F:7
-
9D3@F76 )NE &AF;A@ 8AD ,GEB7@E;A@
A8
A>>75F;A@
A8 -3J
G@F;> F:7 53E7;ED7EA>H76 I;F: 8;@3>;FK &3@397?7@F
47>;7H7E
F:3F F:7 D7EA>GF;A@
A8
F:;E
3EE7EE?7@F
I;>> @AF ?3F7D;3>>K
38875F ;DEF
!A>6;@9E DAGBNE 3G6;F76 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

(@ #G@7    ) D757;H76 H3D;AGE 'AF;57E A8 EE7EE?7@F
3@6
-3J ;>>E 63F76 BD;>

3@6    8DA?
F:7
)DAH;@5;3> AH7D@?7@F
A8 3F3@93E
F:DAG9: F:7 (88;57
A8
F:7
)DAH;@5;3> EE7EEAD ;?BAE;@9
3@
3@@G3> D73> BDAB7DFK F3J +)-
A@
EF77> FAI7DE 534>7 FD3@E?;EE;A@ >;@7E 3@6 3557EEAD;7E F:7 - %;@7 3?AG@F;@9
FA) ?;>>;A@   ?;>>;A@ B7DK73D ) 5>3;?;@9 7J7?BF;A@ 8DA? E3;6
+)- 3BB73>76 F:7
3EE7EE?7@F
FA
F:7 )DAH;@5;3> %A53> A3D6
A8 EE7EE?7@F BB73>E % 3@6 8;>76
3)7F;F;A@A@G9GEF

 
BD3K;@9 8AD
F:7 8A>>AI;@9 
F:3F
F:7 'AF;57E A8 EE7EE?7@F
3@6
-3J ;>>E ;EEG76 4KF:7 )DAH;@5;3> EE7EEAD
47
D753>>76 3@6 D7HA=76
3@6
 F:3F F:7 )DAH;@5;3> EE7EEAD
6DAB 8DA?
F:7
EE7EE?7@F
+A>>
F:7  $/
FD3@E?;EE;A@ >;@7E 8DA? ,F3
+;F3 FA
3>353 ;@ 355AD63@57 I;F: ,75F;A@
 
A8
F:7
%  )
3D9G76 F:3FF:7 - %;@7 6A7E
@AF 5A@EF;FGF7 D73>
BDAB7DFK 8AD
+)-
BGDBAE7E 3@67H7@ 3EEG?;@9
F:3F
F:7 - %;@7 ;ED793D676
3ED73> BDAB7DFK );EEF;>>
@AF >;34>7 8AD
+)-
3E ;F ;E ') -+',(
39AH7D@?7@F AI@76 3@6
5A@FDA>>76 5ADBAD3F;A@  (
7@93976 ;@
F:7 97@7D3F;A@
3@6 AD
FD3@E?;EE;A@
A8
7>75FD;5 BAI7D I:;5: :3E
35FG3> 6;D75F 3@6 7J5>GE;H7 GE7
A8
F:7 - %;@7 )GDEG3@FFA,75F;A@ 5
A8
F:7
%  3 ( 7@93976 ;@
F:7
97@7D3F;A@ 3@6 AD
FD3@E?;EE;A@
A8
7>75FD;5
BAI7D 3@6 I:;5:
:3E 35FG3> 6;D75F
3@6 7J5>GE;H7
GE7 F:7D7A8 ;E
7J7?BF
8DA?
+)-

) EAG9:F 8AD
3@6 I3E 9D3@F76
3BD7>;?;@3DK ;@ -D;3> AGDF D3@5:
 A8 3F3@93E ;FK
FA
7@ -D73EGD7D
A8 3F3@93E ;FK 8DA? 5A>>75F;@9 F:7 +)-
B7@6;@9 F:7 675;E;A@
A8
F:7 % 7EB;F7
F:7 ;@76
3@
3BB73> 478AD7
F:7
7@FD3> A3D6
A8 EE7EE?7@F BB73>E  3EE3;>;@9 F:7 H3>;6;FK A8
F:7
%
AD67D

"@
3
+7EA>GF;A@ D7@67D76 A@ 757?47D

 
F:7  E7F
3E;67 F:7 % (D67D
3@6
D7?3@676
F:7 53E7
FA
F:7 % -:7
% I3E 6;D75F76
FABDA5776 I;F: F:7 53E7
A@ F:7 ?7D;FE I;F:AGF D7CG;D;@9 )
FA8;DEF
B3KF:7
+)-
A@
F:7 CG7EF;A@76
3EE7EE?7@F

(@
&3K   
F:7 )DAH;@57 8;>76 I;F:
F:7
AGDF
A8 BB73>E OP
3)7F;F;A@ 8AD +7H;7I A8
F:7
 +7EA>GF;A@ -:7  6;E?;EE76
F:7
B7F;F;A@
A@
#G@7    :AI7H7D ;F ;EEG76 3@AF:7D +7EA>GF;A@ 63F76 G9GEF

  D7;@EF3F;@9
F:7 B7F;F;A@ 8;>76
4KF:7 )DAH;@57 (@
'AH7?47D

 
F:7

AD67D76 F:7 B3DF;7E
FA 8;>7 E;?G>F3@7AGE
&7?AD3@63 ) 8;>76 ;FE
&7?AD3@6G?
A@
#3@G3DK 
 

"@ 5A@@75F;A@ I;F: F:7 BDA:;4;F;A@ 53E7
B7@6;@9 478AD7 F:7 +79;A@3> -D;3> AGDF D3@5:

A8 3F3@93E ;FK I:;5: BD7H;AGE>K ;EEG76 F:7 BD7>;?;@3DK ;@76
A@ &3D5:   
3@ .D97@F
&3@;87EF3F;A@ 3@6 &AF;A@ D7CG7EF;@9 F:7 5AGDF FA
AD67D
F:7
B3DF;7E
FA
EG4?;F ?7?AD3@63 A@ I:7F:7D AD @AFF:7 )7F;F;A@ 8AD )DA:;4;F;A@ B7@6;@9
478AD7 F:7 5AGDF ;E
BDAB7D 5A@E;67D;@9 F:7 3H3;>34;>;FK A8
F:7
D7?76K
A8
3BB73>
FA
F:7  -:7 AGDF 67@;76
F:7
.D97@F &3@;87EF3F;A@ 3@6 &AF;A@ 3@6 ;E
BD7E7@F>K 3I3;F;@9
F:7 8;@3>;FK
A8
F:7 ;EEG7E A@
F:7 H3>;6;FK A8
F:7
+)- 3EE7EE?7@F
A@
F:7 - %;@7

)) -:7D7
3D7
A@9A;@9 53E7E ;@HA>H;@9
F:7
3EE7EE?7@F
A8
+)-
3@6
8D3@5:;E7 F3J 4KF:7 >A53> 9AH7D@?7@F )) 47>;7H7EF:3FG@67DF:7 )DA<75F 9D77?7@F
3@K +)-
3@6
8D3@5:;E7 F3J
F:3F ?3K
47
8AG@6 6G7 ;E 8AD
F:7
EA>7
355AG@F
A8 ')

153 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

; -:7 3G3@9 )>3@F 7CG;B?7@FI7D7AD;9;@3>>K 5>3EE;8;76 3E
F3J 7J7?BF
G@67D
F:7 ;@6;H;6G3>
F3J 675>3D3F;A@E
G@F;>
F:7 )DAH;@57
A8
%3
.@;A@ F:7 O% .P D7HA=76
7J7?BF;A@ 3@6 ;EEG76 D73> BDAB7DFK
F3J 3EE7EE?7@FE ;@
 -:;E ?3D=76
F:7 ;@57BF;A@
A8
F:7 8;DEF 53E7 0;F:') D7EBA@E;4>7 8AD
F:7
B3K?7@F
A8
BDAB7DFK
F3J7EG@67D
F:7 (- 9D77?7@F
F:7K 8;>76 I;F:
F:7 % 3
B7F;F;A@ FA675>3D7
7J7?BF
F:7 7CG;B?7@F
3@6 ?35:;@7DK 3F
F:7 3G3@9 )>3@F 4GF I3EDG>76 G@83HAD34>K -:7?3FF7DI3E
4DAG9:FGB
FA F:7
 I:7D7));@F7DH7@76 -:7  388;D?76
F:7
%NE
675;E;A@

A@E7CG7@F>K ')3@6))7>7H3F76 F:7;DD7EB75F;H753E7E
FA
F:7 AGDF
A8 -3J BB73>E - 0:7@
4AF:
3BB73>EI7D7
67@;76
4KF:7 - ;@ 74DG3DK   ') 3BB73>76 F:7 675;E;A@
6;D75F>KFA
F:7 ,GBD7?7
AGDF , I:;>7 )) 8;>76 3
&AF;A@ 8AD +75A@E;67D3F;A@ I;F:
F:7 - -:7
-
G>F;?3F7>K
67@;76
F:7 ?AF;A@ D7EG>F;@9;@))NE 8;>;@9 I;F: F:7 , A@ ,7BF7?47D

 
3)7F;F;A@ 8AD
+7H;7I
A@
7DF;AD3D; D7;F7D3F;@9 ')NE 7J7?BF;A@ 8DA?
+)-

-:7 )7F;F;A@ I;F: F:7 , 8;>76 4K )) I3E
67@;76 ;@ 'AH7?47D
 
))
F:7D738F7D 8;>76 EG55776;@9 ?AF;A@E
F:3FI7D7 E;?;>3D>K
67@;76 ;@ BD;>  
3@6 #G>K   I:;>7 F:7 ') 53E7 D7?3;@E
B7@6;@9 I;F:
F:7 , -:;E
B3H76 I3K 8AD
F:7
8;>;@9
4KF:7
% .;@G9GEF  
A8
3
?AF;A@ 8AD
3@
, 6;E?;EE3>
A8
F:7
') 8;>76 53E7

-A
BDAF75F
F:7 B>3@F 3EE7FE 8DA?
3@KG@FAI3D635F;A@ 4K >A53> 9AH7D@?7@F )) 3@6 ') A4F3;@76;@&3K   3 0D;F
A8 )D7>;?;@3DK
"@>75F;A@
A8 D73> BDAB7DFK
F3J7E 4KF:7 % .
G@F;>
F:7 , DG>7E
A@
F:7 ') )7F;F;A@

"@
FAF3> 6;ED793D6
A8
3 H3>;6 ;@ , 675;E;A@;@#G>K  
F:7 % . ;EEG76 ;@ 757?47D
 
3 ;@3>
'AF;57 A8
7>;@CG7@5K
3@6 3 EG4E7CG7@F 03DD3@F
A8
%7HK 8AD
F:7 G@B3;6 +)-
A@
F:7 3G3@9 )>3@F 7CG;B?7@F ,;?;>3D>K
F:7 % .
3FF7?BF76
FA
5A>>75F
F:7 3DD73DE A@
F:7 +)-
A@
4G;>6;@9E
3@6 ;?BDAH7?7@FE
I:;5: ') EFABB76 B3K;@9 E;@57
  3@6 ;@5>G676 F:7E7
3EE7FE ;@ F:7 >7HK -:7 ;@34;>;FK
A8
')
FA
E7FF>7
F:7 3?AG@FE
6G7 I;F:;@ F:7
9D357
B7D;A6 D7EG>F76
FA
F:7 BG4>;5 3G5F;A@
A8
F:7 3EE7FE
A@
74DG3DK

 

"@
F:7
34E7@57
A8
3
4;667D 3F
3G5F;A@
BDAB7D
F:7 3>>7976
F3J 67>;@CG7@F
3EE7FE I7D78AD87;F76 3@6 677?76 EA>6 FA F:7
% . '7H7DF:7>7EE ,75F;A@  A8
+
 3>EA=@AI@3EF:7 %A53> AH7D@?7@F
A67
A8

355AD6E
F:7
F3JB3K7D
F:7 D;9:FFA D7677?
F:7
BDAB7DFK I;F:;@ A@7  K73D 8DA?
63F7
A8 E3>7 8AD87;FGD7F:7 O+767?BF;A@ )7D;A6P

,;@57
3G5F;A@
63F7 ') 3@6 )) BGDEG76 ;@ B3D3>>7> >793> 3@6 7JFD3
35F;A@E )) 8;>76A@#3@G3DK 
  EGBB>7?7@F76
A@ 74DG3DK   
3B7F;F;A@ 5;F;@9
F:7 )DAH;@57 ;@ 5A@F7?BF 8AD
6;ED793D6;@9
3 H3>;6 ;@>75F;A@
B7@6;@9 8;@3> D7EA>GF;A@
A8
4AF:
')
3@6 )) 53E7E ;@ F:7 ,GBD7?7
AGDF -:7 5A@F7?BF 53E7 D7?3;@E B7@6;@9
3FF:7 3G3@9
+79;A@3> -D;3> AGDF

"@ 757?47D
  F:7 5AGDF D7CG;D76
4AF:B3DF;7EFA 8;>7
F:7;DD7EB75F;H7?7?AD3@63 )) 5A?B>;76 I;F:
F:7 AD67D A@ #3@G3DK    -:7
AGDF :3E
@AF ;EEG76
3
675;E;A@ 3E
A8
&3D5:
  

"@
B3D3>>7>
F:7 ,A>;5;FAD 7@7D3> ,A> 7@ 8;>76 I;F:
F:7 , ;@ #G>K   3 ,GBB>7?7@F3> )7F;F;A@ FA 7>7H3F7 3>> ') D73>
BDAB7DFK
F3J 53E7E 8AD
7@ 43@5 675;E;A@ 3@6 E77=
@G>>;8;53F;A@
A8
F:7
3G3@9 )>3@F 3G5F;A@ "@
F:7 34E7@57
A8
3@K 35F;A@ 8DA?
F:7
,
F:7 ,A> 7@
3@6 ') 8;>76 ;@
'AH7?47D  
3@ GD97@F ?AF;A@ 8ADF:7 ;EEG3@57
A8
3
-7?BAD3DK +7EFD3;@;@9 (D67D -+( 393;@EF 3@K 35F;A@ 4K
F:7
% . FA
F3=7 AI@7DE:;B
3@6 BAEE7EE;A@ A8
F:7
B>3@F (@#3@G3DK   
F:7 , BDA?G>93F76 ;FE 675;E;A@
FA F:7 ') 8;>76 53E7 GB:A>6;@9
F:7
F3J34;>;FK A8
F:7
?35:;@7DK 3@6 7CG;B?7@F
A8
F:7 3G3@9 )>3@F

AD 83;>GD7 FA D7677?
F:7
B>3@F 3F
7JB;DK
A8 D767?BF;A@ B7D;A6
F:7
% . A@ 74DG3DK
   5A@EA>;63F76 F;F>7
FA
3@6 AI@7DE:;B A8
F:7 B>3@F
3EE7FE
4K ;EEG;@9
@7I
F3J 675>3D3F;A@E ;@ ;FE @3?7 ,G4E7CG7@F>K ') A887D76
3
E7FF>7?7@F
B35=397 8AD
F:7 )  4;>>;A@ D73>
BDAB7DFK
F3J
3DD73DE I:;5: F:7 % .
3557BF76  &7?AD3@6G?
A8 9D77?7@F ;E 5GDD7@F>K
BD7B3D76 ;@ F:;ED793D6

;; -:7 E75A@6 53E7 I3E 8;>76
4K ') 8AD ;FE7>8
3@6
A@ 47:3>8
A8 )) 8A>>AI;@9 ;EEG3@57
A8
3
D7H;E76
3EE7EE?7@F
A8
+)-
A@ ))NE ?35:;@7DK 3@6 7CG;B?7@F
A@
#G>K 
  4K
F:7 &G@;5;B3> EE7EEAD
A8
F:7 &G@;5;B3>;FK A8 3G3@9 %3 .@;A@ .@67DF:7 E3;6 D7H;E76 EE7EE?7@F F:7 ?3J;?G?
F3J >;34;>;FK 8AD
F:7
B7D;A6
 FA ;E
34AGF   ?;>>;A@ )  ?;>>;A@ 43E76 A@ F:7 ?3J;?G?
 
3EE7EE?7@F >7H7> ;?BAE34>7
A@
BD;H3F7>K AI@76 7@F;F;7E
3@6
3
F3J

154 D3F7
A8
 "@ 366;F;A@ ;@F7D7EF
A@
F:7 G@B3;6 3?AG@FE 
B7D ?A@F:@AF
7J5776;@9?A@F:E :3ED735:76
3 FAF3>
3?AG@F
A8
  ?;>>;A@ ) ?;>>;A@ -:7 53E7 D7?3;@E
B7@6;@9 I;F: F:7 % A8
F:7 )DAH;@57 A8
%3
.@;A@

"@
3@K 7H7@F )) 47>;7H7E
F:3F
') E:3>>
47
6;D75F>KD7EBA@E;4>7 8AD
F:7
B3K?7@F
A8
3>> +)- F:3F ?3K
47
3EE7EE76 A@ ?35:;@7DK 3@6 7CG;B?7@F
3F 3G3@9 )>3@F
BGDEG3@FFA F:7
F7D?E
A8
F:7
)DA<75F 9D77?7@FI:;5: EB75;8;53>>K BDAH;67E
F:3F ') E:3>> B3K 3>>
F3J7E 3@6
3EE7EE?7@FE ;@ D7EB75F
A8
F:7
E;F7 ?35:;@7DK
3@6
7CG;B?7@F
3@6 ;?BDAH7?7@FE
F:7D7A@

-A
63F7
F:7 BAF7@F;3> ?3J;?G?
F3J >;34;>;FK A@ ))NE ?35:;@7DK
3@6 7CG;B?7@F 8AD
F:7
B7D;A6 8DA?

FA
  ;E 34AGF   ?;>>;A@ )  4;>>;A@ 43E76 A@
F:7 ?3J;?G?
 
3EE7EE?7@F >7H7> ;?BAE34>7
A@ BD;H3F7>K AI@76 7@F;F;7E
3@6
3F 3
F3JD3F7
A8
 "@ 366;F;A@ ?3J;?G?;@F7D7EF A@
F:7
F3J >;34;>;FK  B7D ?A@F:
@AF
7J5776;@9?A@F:E
3?AG@FE
FA   ?;>>;A@ )  ?;>>;A@

0:;>7 )) ?3;@F3;@E ;FE BAE;F;A@ F:3F BGDEG3@F
FA
F:7
F7D?E A8
F:7
(- 9D77?7@F ;F ;E ') F:3F ;E
G>F;?3F7>KD7EBA@E;4>7 8AD
F:7
B3K?7@F
A8
3>> D73>
BDAB7DFK F3J7ED7>3F76 FA F:7
BAI7D B>3@F 3@6 F:3F )) :3E
F:7 D;9:F
A8 D75AGDE7
393;@EF ') 8AD
I:3F7H7D
3?AG@F
A8
+)- ;F ?3K
47
D7CG;D76
FA
B3K ))D75A9@;L76
3E
A8
757?47D
  
3
O)DAH;E;A@ 8ADD73>
BDAB7DFK F3J7EP 3?AG@F;@9 FA ;@5>G6;@9 ;@F7D7EF;@
355AD63@57 I;F: ),  O)DAH;E;A@E A@F;@97@F %;34;>;F;7E 3@6 A@F;@97@F EE7FE P

ADD7EBA@6;@9>K ))
3>EA D75A9@;L76 3 O+757;H34>7 8DA? ')P 8AD
F:7
E3?7
3?AG@FD7BD7E7@F;@9 ;FE 5>3;? 8ADD7;?4GDE7?7@F 8ADD73>
BDAB7DFK
F3J7E -:7 5A?4;@76
78875F
A8
F:7
BDAH;E;A@
3@6
F:7 5>3;? 8ADD7;?4GDE7?7@F ;E
BD7E7@F76 A@ 3
@7F
43E;E ;@ ))NE EF3F7?7@F
A8 ;@5A?7

&AH7?7@FE
A8
BDAH;E;A@ 8ADD73> BDAB7DFK F3J7E

   4 /22/549 3>3@57 3F 479;@@;@9
A8 K73D   )DAH;E;A@ 6GD;@9
F:7 K73D FD3@E>3F;A@ 363@57 3F 7@6 A8 K73D  

;;; -:7
F:;D653E7 I3E 8;>76
A@ (5FA47D

 
4K ')
8AD ;FE7>8
3@6
A@ 47:3>8
A8 )) 8A>>AI;@9 D757;BF A8 ,F3F7?7@F
A8 55AG@F 8DA?
F:7
&G@;5;B3> -D73EGD7D
63F76 G9GEF
   8AD
+)-
A@
))NE 4G;>6;@9E
3@6 ;?BDAH7?7@FE 8DA?
 
FAG9GEF
  3?AG@F;@9
FA   ?;>>;A@ )  ?;>>;A@ -:7 53E7;E
B7@6;@9 I;F: F:7 % A8
F:7 )DAH;@57
A8
%3
.@;A@ ') B3;6 3>> +)-
A@
4G;>6;@9E 3@6 ;?BDAH7?7@FE
6;D75F>K
FA
F:7 >A53> 9AH7D@?7@F 8DA?

G@F;>  
I:7@ ;F EFABB76
B3K?7@F
A8
F:7
F3J
3@6
5>3;?76
3@
7J7?BF;A@ G@67DF:7 %A53> AH7D@?7@F
A67

7EB;F7
F:7
B7@67@5K A8
F:7
53E7
3FF:7 %
F:7E7BDAB7DF;7EI7D7 ;@5>G676 ;@ F:7 74DG3DK   
3G5F;A@
4KF:7
% .

-A
63F7
F:7 BAF7@F;3> ?3J;?G?
F3J >;34;>;FK A@ ))NE
4G;>6;@9E 3@6 ;?BDAH7?7@FE 8AD
F:7
B7D;A6 7@6;@9   ;E 34AGF )  ?;>>;A@   ?;>>;A@ ;@5>G6;@9 ;@F7D7EF 3@6
3>>7976 435= F3J7E
63F;@9 435= 8DA?


;H )) 3>EA8;>763)7F;F;A@ 8AD
7DF;AD3D; 3@6 )DA:;4;F;A@ ;@ ,7BF7?47D
 
FA
5A@F7EF
3@
3EE7EE?7@F 8AD 8D3@5:;E7
F3J 8AD
F:7
B7D;A6 
FA  
3?AG@F;@9
FA) ?;>>;A@   ?;>>;A@ ;@5>G6;@9 EGD5:3D97E
3@6 B7@3>F;7E
A@ F:7 9DAG@6 F:3F )) ;E
@AF
3
BG4>;5 GF;>;FK I:;5: ;E D7CG;D76 4K >3IFAA4F3;@ 3 >79;E>3F;H78D3@5:;E7 478AD7
AB7D3F;@9
F:GE ;E @AFEG4<75F
FA
8D3@5:;E7 F3J7E -:753E7 D7?3;@E B7@6;@9 478AD7
F:7
+-
A8 3G3@9 %3
.@;A@

AF:
')
3@6 )) 47>;7H7 F:3FF:7K
3D7
@AFEG4<75F
FA
B3K 8D3@5:;E7
F3J
FA
F:7 >A53> 9AH7D@?7@F

"@ 3@K 53E7 )) 47>;7H7EF:3FF:7 )DA<75F 9D77?7@FI;F:')3>>AIE ))
FA 5>3;? ;@67?@;FK 8DA?
') 8AD
3@K
@7I ;?BAE;F;A@ ;@5>G6;@9 8D3@5:;E7 F3J ;@5GDD76 4K ))
F:3F I3E
@AF AD;9;@3>>K 5A@F7?B>3F76 I:7@ ;F
7@F7D76 ;@FA E3;6 )DA<75F 9D77?7@F

155 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

E
A8
757?47D

 
3@6  
F:7D7
3D7@A
BDAH;E;A@E 8AD
BDA434>7 >AEE7E
3D;E;@9 8DA? >793> 5A@F;@97@5;7ED75A9@;L76 ;@
F:7 5A@EA>;63F76 8;@3@5;3> EF3F7?7@FE

A %73E7A??;F?7@FE

;DEF 7@ DAGB
:3E 3
@A@53@57>34>7 >73E739D77?7@F
I;F: )+
A@ ;FE
A55GB;76
A88;57 EB357 -:7 F7D?A8
F:7
>73E7;E 8AD
3
B7D;A6
A8 8;H7 K73DE D7FDA35F;H7
FAG9GEF
  
ADGBA@
A55GB3@5K
A8
F:7 >73E76
BD7?;E7E
I:;5:7H7D ;E
73D>;7D 3@6 3GFA?3F;53>>K 7JB;D7E
A@
#G>K    -:7 >73E7 39D77?7@F ;@5>G67E
3
5>3GE7
FA 7@34>7
GBI3D6 D7H;E;A@
A8
F:7
D7@F3> 5:3D976
3F 3 D3F739D776 GBA@ 4K ;DEF 7@ DAGB
3@6 )+
3F
F:7 7@6
A8
735: K73D -:7 >73E739D77?7@FI;F: )+I3ED7@7I76 8AD
A@7 K73D 8DA? G9GEF

 
FA
#G>K

 

)
:3E 3
@A@ 53@57>34>7
3@@G3>
A88E:AD7>73E7
39D77?7@F
I;F: F:7 '+ 8AD
F:7
>73E7A8
3
B3D57> A8 >3@6 ;@ ,F3
+;F3 3F3@93E
I:7D7 F:7 BAI7D
B>3@F 5A?B>7J ;E >A53F76 -:7 F7D?A8
F:7
>73E7;E 8AD
3
B7D;A6
A8
 K73DE EF3DF;@9 &3K 
 8AD
3 K73D>KD7@F3>
A8 ) ?;>>;A@   ?;>>;A@ 3@6 D7@7I34>7 8AD
3@AF:7D  K73DE 3F
F:7 7@6 A8
F:7
F7D? -:7 >3@6 I;>> 47
3BBD3;E76 7H7DK
F7@ K73DE 3@6 F:7 3@@G3> D7@F3>
38F7D 7H7DK 3BBD3;E3> E:3>> @AF 47 >7EE
F:3@

A8
F:7
3BBD3;E76 H3>G7
A8
F:7 >3@6 B>GE 
A8
F:7 H3>G7
A8
F:7 ;?BDAH7?7@FE
BDAH;676 F:3FEG5:
3@@G3> D7@F3> 53@@AF
47 >7EE
F:3@ ) ?;>>;A@   ?;>>;A@

G=;6@A@
:3E 3
@A@ 53@57>34>7 >73E739D77?7@FI;F: ),%& A@
F:7 >3@6
A55GB;76 4K ;FE
BAI7D B>3@F -:7
F7D?
A8
F:7
>73E7;E 8AD
3
B7D;A6
A8
 K73DE 5A??7@5;@9
A@
&3D5: 
  D7@7I34>7 8AD
3@AF:7D B7D;A6
A8
 K73DE
AD
F:7
D7?3;@;@9 5ADBAD3F7 >;87
A8 ),%& I:;5:7H7D ;EE:ADF7D -:7 D7@F3>
B3;6 ;@ 36H3@57 4K G=;6@A@ 8AD
F:7
7@F;D7
F7D?;E )  ?;>>;A@   ?;>>;A@

GFGD7 ?;@;?G? D7@F3>
B3K?7@FE
G@67D
F:7 @A@ 53@57>34>7 AB7D3F;@9 >73E7EI;F: )+ 3@6 F:7 '+ 3E
3F
757?47D
  
3D73E 8A>>AIE

?AG@F 4 /22/549 0;F:;@
A@7 K73D  8F7D
A@7 K73D
4GF
@AF ?AD7
F:3@ 8;H7 K73DE  8F7D 8;H7 K73DE   


'9 '
+99++ GFGD7?;@;?G?>73E7
B3K?7@FE G@67D
F:7 AB7D3F;@9 >73E7E 3E
3F
757?47D

 
3D73E 8A>>AIE

?AG@F 4 /22/549 0;F:;@
A@7 K73D  8F7D
A@7 K73D
4GF
@AF ?AD7
F:3@ 8;H7 K73DE  -AF3> 

NE >73E75A??;F?7@FE B7DF3;@76
FA6D;>>;@9 D;9 3@6 H3D;AGE
A88;57
3@6 I3D7:AGE7 D7@F3>E

.@67DF:7 F7D?E
3@6
5A@6;F;A@E 9AH7D@;@9 F:7 D;9 >73E7
39D77?7@FI;F: )'( JB>AD3F;A@ ADBAD3F;A@  E:3>> GE7
F:7 $D7?5A
 -
6D;>>;@9 D;9 8AD
F:7
%;:;D
"E>3@6
D;>>;@9 )DA<75FI;F:3@ AB7D3F;@9 D7@F3> D3F7
A8
  63K -:7
39D77?7@FFAA=
78875F >3EF
&3D5: 
  3@6 E:3>>
F7D?;@3F7 A@
F:7 D;9 D7>73E7 F;?7
A8
F:7
>3EF I7>>


'9 '
+9958  >73E7E
FA
)'( JB>AD3F;A@ ADBAD3F;A@ F:7 >AF
A55GB;76
4K G;>6;@9E


3E
I7>>
3EF:7
A88;57 EB357E
A8 G;>6;@9  >A53F76
3F @7D9K 7@F7D
&7DD;FF +A36 ADF A@;835;A -39G;9 ;FK
3F 3
FAF3> 3@@G3> D7@F3> A8 )  ?;>>;A@   ?;>>;A@ -:7 5A@FD35F ;ED7@7I34>7 3@@G3>>K

156 B G3D3@F77 A@ )7D8AD?3@57
3@6 ,GD7FK A@6E

;DEF 3>8AGD ;E 5A@F;@97@F>K >;34>7 8AD
9G3D3@F77E
3D;E;@9 ;@
F:7
AD6;@3DK 5AGDE7
A8 4GE;@7EE ;@5>G6;@9 >7FF7DE
A8
9G3D3@F77 8AD
B7D8AD?3@57
3@6
EGD7FK
4A@6E
8ADH3D;AGE 5A@EFDG5F;A@
BDA<75FE 3?AG@F;@9
FA 34AGF ) 4;>>;A@ 3@6 )  4;>>;A@ 3E
A8
757?47D

  3@6   D7EB75F;H7>K

7DF3;@
3EEA5;3F7E
:3H75A@F;@97@F >;34;>;F;7EI;F: D7EB75F
FA
5>3;?E >3IEG;FE 3@6 F3J
3EE7EE?7@FE -:7 D7EB75F;H7 ?3@397?7@F
A8
F:7 3EEA5;3F7E 38F7D 5A@EG>F3F;A@EI;F:AGFE;67 5AG@E7>E 47>;7H7EF:3F F:7 8;@3> D7EA>GF;A@
A8
F:7E7;EEG7EI;>> @AF ?3F7D;3>>K
38875F
F:7;DD7EB75F;H7 8;@3@5;3>
BAE;F;A@ 3@6 D7EG>FE
A8
AB7D3F;A@E

 #@52> !.@@2>?

3 D4;FD3F;A@ I3D6A8

(@ BD;>   
F:7 
3@6 ') E;9@76 3 #A;@F &3@;87EF3F;A@ 3@6
.@67DF3=;@9 #&.
FA
34;67
4K F:7
3D4;FD3> 675;E;A@ A@
&3D5:
   -:7
3D4;FD3> 675;E;A@ 5AH7D76 F:7 >A@9 EF3@6;@9 ;EEG7 D7>3F76 FA
F:7 ,,E 3@6 ))E
A8 
3@6 ')

"@
F:7
7J75GF;A@
A8
F:7 3D4;FD3>
675;E;A@ 4AF: F:7 )3D7@F
A?B3@K 3@6 ') 39D776
F:3F
F:7
3?AG@F
A8 )   ?;>>;A@ E:3>> 47 B3;6 4K ') FA
F:7 A?B3@K
I;F:AGF 8GDF:7D ;@F7D7EF ;@355AD63@57 I;F: F:7 8A>>AI;@9 E5:76G>7

'2@@8292:@ [email protected]
.@2 (>.:052 9;A:@ $.E92:@ (2>9 ;3 '2@@8292:@ ;DEF ) ?;>>;A@  63KE 8DA? EG4?;EE;A@
A8
#&.
FA
#G>K    F:7 (88;57
A8
F:7
/A>G@F3DK D4;FD3FAD ,75A@6  ?;>>;A@  63KE 8DA? EG4?;EE;A@
A8
#&.
FA
#G>K    F:7 (88;57
A8
F:7
/A>G@F3DK D4;FD3FAD -:;D6  ?;>>;A@ #3@G3DK   74DG3DK    AGDF:   ?;>>;A@ #3@G3DK   'AF 3BB>;534>7

G>> B3K?7@F A8
F:7
8AD79A;@9
3?AG@FE E:3>> 5A@EF;FGF78G>> 3@6 5A?B>7F7 E7FF>7?7@F
A8
3>>
F:7 5>3;?E 735: B3DFK :3E 393;@EF
F:7 AF:7D
3E 67F3;>76 ;@ F:7 'AH7?47D

 
3D4;FD3F;A@
39D77?7@F

E
3
D7EG>F
A8
F:7 8AD79A;@9 FD3@E35F;A@ ;@    D75A9@;L76 3@ ;@5A?7
A8 )   ?;>>;A@ D75AD676
3E 3@ ;@5D73E7;@O(F:7D ;@5A?7 5:3D97EP
355AG@F
A8 )   ?;>>;A@
3@6
3
D7H7DE3>
A8 3>>AI3@57 8AD
6AG4F8G>
355AG@FE
A8 )  ?;>>;A@
BD7H;AGE>KD75AD676 D7>3F76
FA F:7
BADF;A@ 5A>>75F76 3E
B3DF
A8
F:7 E7FF>7?7@F "@
366;F;A@ 3>>AI3@57 8AD
6AG4F8G>
355AG@FE
A8 )  ?;>>;A@ I3E D7H7DE76 8A>>AI;@9
F:7 D7EA>GF;A@
A8 EA?7
A8 57DF3;@ ;EEG7E 5AH7D76
4KF:7 3D4;FD3F;A@ -:7 D76G5F;A@ A8
F:7
3>>AI3@57 8AD 6AG4F8G>
355AG@FE D7EG>F76 ;@ F:7 D75A9@;F;A@
A8
F:7 5D76;F
36>AI3@57 8AD
6AG4F8G>
355AG@FE 5>3EE;8;76
G@67DO 7@7D3>
3@6 36?;@;EFD3F;H77JB7@E7EP
355AG@F

4 )"+

+78AD?E +7BG4>;5 5F 'A 
AF:7DI;E7=@AI@
3EF:7 )"+ 3@6 F:7 5AH7D;@9
"?B>7?7@F;@9 +G>7E
3@6 +79G>3F;A@E "++
BDAH;67 8ADE;9@;8;53@F 5:3@97E ;@ F:7
BAI7DE75FAD I:;5: ;@5>G67
3?A@9
AF:7DE F:7 8G@5F;A@3> G@4G@6>;@9
A8
F:7 97@7D3F;A@
FD3@E?;EE;A@ 6;EFD;4GF;A@ 3@6 EGBB>KE75FADE
F:7
BD;H3F;L3F;A@
A8
F:7
97@7D3F;@9 B>3@FE
3@6
AF:7D 6;EBAE34>7
3EE7FE
A8
F:7 ') ;@5>G6;@9 ;FE 5A@FD35FE I;F:"))F:7 G@4G@6>;@9
A8 7>75FD;5;FK D3F7E F:7 5D73F;A@
A8
3 0:A>7E3>7 >75FD;5;FK ,BAF &3D=7F 0,&
3@6
F:7 ;?B>7?7@F3F;A@ A8
AB7@
3@6
@A@6;E5D;?;@3FADK
3557EE
FA
FD3@E?;EE;A@
3@6 6;EFD;4GF;A@ EKEF7?E

157 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

-:7 )"+ 675>3D7EF:3FF:7
97@7D3F;A@ E75FADE:3>>
47 5A?B7F;F;H7 3@6 AB7@ @K
7@F;FK 7@93976 ;@ F:7 97@7D3F;A@ 3@6 EGBB>K A8
7>75FD;5;FK ;E
@AF
D7CG;D76 FA E75GD7
3@3F;A@3> 8D3@5:;E7

!AI7H7D
F:7 BG4>;5 >;EF;@9
A8
@AF >7EE
F:3@
 A8 5A??A@ E:3D7E
A8
3
97@7D3F;A@ 5A?B3@K ;ED7CG;D76 I;F:;@ 8;H7 K73DE 8DA?
F:7
78875F;H;FK 63F7
A8
F:7 >3I ;DEF 7@
:3E 5A?B>;76 I;F: F:;ED7CG;D7?7@F

DAEE
AI@7DE:;B 47FI77@ FD3@E?;EE;A@
3@6 97@7D3F;A@ 5A?B3@;7E
3@6 47FI77@ FD3@E?;EE;A@
3@6 6;EFD;4GF;A@ 5A?B3@;7E ;E
BDA:;4;F76 E
47FI77@ 6;EFD;4GF;A@ 3@6 97@7D3F;A@ 3 6;EFD;4GF;A@ GF;>;FK ;E @AF 3>>AI76
FA
EAGD57 8DA?
3@
3EEA5;3F76
97@7D3F;A@ 5A?B3@K ?AD7
F:3@   A8 ;FE
67?3@6
3
>;?;F3F;A@ F:3F @A@7F:7>7EE
6A7E
@AF 3BB>KI;F: D7EB75FFA5A@FD35FE
7@F7D76 ;@FA
BD;AD
FA
F:7 78875F;H;FK A8
F:7 >3I ;DEF
!A>6;@9E DAGB
F:DAG9: ;FE EG4E;6;3D;7E )
3@6 ) :3E 7@F7D76 ;@FA))EI;F: 3@ 388;>;3F7 6;EFD;4GF;A@ GF;>;FK &+%(
BD;ADFA
F:7
78875F;H;FK A8
F:7
)"+ -:7E739D77?7@FE D7BD7E7@F
A@>K  
A8
F:7 5GDD7@F 67?3@6 >7H7>
A8
&+%(

'A 5A?B3@K
ADD7>3F76 9DAGB53@
AI@
AB7D3F7AD 5A@FDA> ?AD7
F:3@   A8
F:7
;@EF3>>76 53B35;FK A8
3
9D;6 3@6 AD

A8
F:7 @3F;A@3> ;@EF3>>76
97@7D3F;@9 53B35;FK .@67D +7EA>GF;A@ 'A
 ,7D;7E   A8
F:7
+ ;@EF3>>76 97@7D3F;@9 53B35;FK ;E 3FFD;4GF76 FA
F:7
7@F;FK 5A@FDA>>;@9
F:7 F7D?E
3@6
5A@6;F;A@E A8
F:7
BD;57E
ADCG3@F;F;7E
A8
F:7
AGFBGF EA>6 ;@ F:7 ?3D=7F 55AD6;@9>K
3E
A8
F:;E
63F7
F:7
FAF3> ;@EF3>>76 53B35;FK
3FFD;4GF34>7 FA ;DEF 7@ ;E
   &0 I:;5: 5A?BD;E7E
 
A8
F:7
@3F;A@3> ;@EF3>>76 97@7D3F;@9 53B35;FK 3?AG@F;@9 FA   &0
"@
F:7 %GLA@ /;E3K3E 3@6 &;@63@3A 9D;6E     &0
AD

A8
  &0
 &0
AD

A8
 &0
3@6
 &0
AD

A8
  &0 53@
47 3FFD;4GF76 FA ;DEF 7@ D7EB75F;H7>K

-:7 )"+ 8GDF:7D
BDAH;67E
F:3F
F:7 )D7E;67@F
A8
F:7
+7BG4>;5 A8
F:7 ):;>;BB;@7EE:3>> D76G57
F:7 DAK3>F;7E D7FGD@E 3@6 F3J7E 5A>>75F76 8AD
F:7
7JB>A;F3F;A@
A8
3>> ;@6;97@AGE EAGD57E A8
7@7D9K ;@5>G6;@9 @3FGD3> 93E EA
3EFA
78875F
B3D;FK
A8
F3J
FD73F?7@F
I;F:7J;EF;@9 D3F7E 8AD ;?BADF76 8G7>E 0:7@ ;?B>7?7@F76
F:;E BDAH;E;A@
I;>> >AI7DF:7 5AEF A8
7@7D9K BDA6G576 4K
F:7 ,3@F3
+;F3
3@6 ,3@ %AD7@LA @3FGD3> 93E
B>3@FE
A8 )
3@6
) D7EB75F;H7>K

"?B>7?7@F3F;A@ (H7D
F:7 >3EF FIA K73DE
F:7 ;?B>7?7@F3F;A@ A8 D78AD?E ;@ F:7 BAI7D ;@6GEFDK ?3@63F76
4KF:7 )"+ 3FF3;@76 E;9@;8;53@F ?A?7@FG?

-:7
BD;H3F;L3F;A@
A8
F:7
')
97@7D3F;@9 3EE7FE
:3E
3557>7D3F76 I;F: F:7 E3>7A8;FE :K6DABAI7D
3@6 5A3> 8;D76 835;>;F;7E

!AI7H7D
@A
")) 5A@FD35F A8
') :3E
477@
BD;H3F;L76
F:DAG9:
")) 6?;@;EFD3FADE K7F -:7)AI7D ,75FAD EE7FE
3@6
%;34;>;F;7E
&3@397?7@F
ADBAD3F;A@ O),%&P

:3E
479G@ F:7 8;DEF I3H7
A8
F7@67D;@9 35F;H;F;7E 5AH7D;@9
F:7 5A@FD35F76 53B35;F;7E A8
 &0 ,G3> 3@6
 &0 )394;>3A 5A3> 8;D76 F:7D?3>
BAI7D B>3@FE I:;5: ;EF3D97F76 FA 5A@5>G67 ;@ &3K  

"@
F:7
BD;H3F;L3F;A@
A8
')NE
97AF:7D?3>
BAI7D B>3@FE
F:7 )"+ D7CG;D7E
F:3F
F:7 E3?7 E:AG>6 47 5A?4;@76 I;F:
F:7 3BBGDF7@3@FEF73?8;7>6 3EE7FE ;@
A@7 E3>7 B35=397
A@E;67D;@9
F:7 AI@7DE:;B 4K AF:7D 7@F;F;7E A8
F:7
EF73?8;7>6 3EE7FE
3@6
F:7 ;@FD;@E;5 5:3D35F7D;EF;5
A8 EF73?8;7>6 AB7D3F;A@E
F:7 #A;@F A@9D7EE;A@3> )AI7D
A??;EE;A@ ;EEG76
+7EA>GF;A@
'A    D7CG;D;@9 ),%&
FABD;H3F;L7 ')NE 97AF:7D?3>
BAI7D
B>3@FE
F:3F
3D7 EGBB>;76 I;F: EF73? 4K  B35=3976 I;F: >A@9 F7D? ,,E I;F:  55AD6;@9>K ),%&
3@6 
7J75GF76 7AF:7D?3>
+7EAGD57E ,3>7E
A@FD35FE 8AD
')NE )3>;@B;@A@ " )3>;@B;@A@ "" 3@6 -A@9A@3@ 97AF:7D?3> BAI7D B>3@FE I;F:
3
F7D?
A8  K73DE ;E 3@ AB7D3F;@9 EG4E;6;3DK
A8 ;DEF 7@
F:DAG9:
+76 /G>53@

-:7
 K73D 5A@57EE;A@
39D77?7@F 8AD -D3@EA
I:;5: I3E
BD7H;AGE>KEBG@ A88
8DA?
')
:3E
477@ 3I3D676
FA F:7
'3F;A@3> D;6
ADBAD3F;A@
A8
F:7 ):;>;BB;@7E 3
BD;H3F7 5A?B3@K

(@ #G@7   
F:7 5A??7D5;3>
AB7D3F;A@ A8
F:7 0,& ;@
F:7
%GLA@ D;6 5A??7@576
GD;@9 F:7 8;DEF K73D
A8
AB7D3F;A@ FAF3> D79;EF7D76
B73=
67?3@6 D735:76   &0 I;F:
FAF3> D79;EF7D76 53B35;FK 3F
  &0 -A
63F7
F:7 ?A@F:>KFD3@E35F;A@ HA>G?7E 8AD
4AF:
F:7
EBAF 3@6
4;>3F7D3>
CG3@F;F;7E D75AD676 3
:;9: A8
   0: -:7 0,&
:3E @AI

6;D75F B3DF;5;B3@FE ;@6;D75F B3DF;5;B3@FE 
3BB>;53@FE 3@6  ;@F7@6;@9
B3DF;5;B3@FE -:7 0,& -D;3> (B7D3F;A@E )DA9D3? ;@
F:7 /;E3K3E D;6 ;E A@ 9A;@9 I;F: F:7 5A??7D5;3> >3G@5: 3I3;F;@9
F:7 3BBDAH3>
A8
F:7
(

+7F3;> 5A?B7F;F;A@
3@6
AB7@
3557EE
:3H7 K7FFA47;?B>7?7@F76 E;@57 F:7
BD75A@6;F;A@E
A8
BD;H3F;L;@9 3F >73EF  
A8
')NE
97@7D3F;@9
3EE7FE
3@6
3F >73EF  
A8
') ")) 5A@FD35FE :3H7
@AF
477@ ?7F EA83D

158 "@
F:7 ?73@F;?7 E7H7D3> ;@6GEFDK B3DF;5;B3@FE
B7F;F;A@76
F:7 +
FA3>>AI 3
FD3@E;F;A@3> ;@F7D;?
3@6
HA>G@F3DK 8AD?
A8
AB7@
3557EE ?A@9
F:7 B7F;F;A@7DE
3D7 &+%( /;E3K3E >75FD;5
A
3@6 F:7 ):;>;BB;@7
"@67B7@67@F )AI7D )DA6G57DE EEA5;3F;A@ )"))
"8
3BBDAH76
4KF:7 + G@67D
F:7 5A@6;F;A@E
3BB>;76 8AD 4KE3;6 ;@6GEFDK B3DF;5;B3@FE F:7 ;@F7D;?
AB7@
3557EE D79;?7
I;>> 3>>AICG3>;8;76 97@7D3F;A@ 5A?B3@;7E 3@6 D79;EF7D76 7>75FD;5;FK EGBB>;7DE
FA
5A@FD35F 6;D75F>KI;F: 7>;9;4>7
7@6 GE7DE 8AD
F:7
EGBB>K A8
7>75FD;5;FK "FI;>> BDAH;67 3@AF:7D ?3D=7F ;@
F:7 /;E3K3E D;6 8AD 3@KG@5A@FD35F76 53B35;FK
F:3F ?3K
475A?7
3H3;>34>7 8DA?
F:7
97@7D3F;@9
3EE7FE
A8 ;DEF 7@NE
AB7D3F;@9 EG4E;6;3D;7E ;@5>G6;@9 NE
'ADF:7D@'79DAE 7AF:7D?3> )AI7D )>3@F

-:7 + :3E 5A@F;@G76
FA;EEG7 D79G>3F;A@E ;?B>7?7@F;@9 F:7 )"+
3?A@9 I:;5:
3D7 F:7 +G>7E 8AD ,7FF;@9
;EFD;4GF;A@ 0:77>;@9
+3F7E 8AD )D;H3F7>K (I@76 ;EFD;4GF;A@
.F;>;F;7E @F7D;@9 )7D8AD?3@57 3E76 +79G>3F;A@ A?B7F;F;A@
+G>7E
+G>7E 8AD
+79;EFD3F;A@
A8 0:A>7E3>7 99D793FADE G;67>;@7E 8AD
F:7
"EEG3@57
A8 %;57@E7E
FA
+7F3;> >75FD;5;FK ,GBB>;7DE
3@6
;EFD;4GF;A@ ,7DH;57
3@6
(B7@ 557EE +G>7E

)DABAE76 ?7@6?7@FE
FA
F:7 )"+ A>>AI;@9 3D7
F:7
BDABAE76
3?7@6?7@FE
FA
F:7 )"+
F:3F ;8
7@35F76 ?3K
:3H7?3F7D;3>
36H7DE7 78875F
A@
;DEF 7@ DAGBNE
7>75FD;5;FK 97@7D3F;A@
4GE;@7EE 8;@3@5;3> 5A@6;F;A@
3@6 D7EG>FE
A8 AB7D3F;A@E

"@
F:7 ):;>;BB;@7 ,7@3F7
F:7
A??;FF77
A@ @7D9KEBA@EAD76 F:7 3BBDAH3> A@ E75A@6 D736;@9
A8 ,7@3F7;>>
'A  I:;5: ;@5>G67
3?A@9
AF:7DE

%AI7D;@9 F:7 BD;H3F;L3F;A@ >7H7>
BD75A@6;F;A@ FA D7F3;> AB7@ 3557EE 8DA?
 
FA
  8AD
4AF:
F:7 ') 97@7D3F;@9
3EE7FE 3@6
') ")) 5A@FD35FE I:;>7 3>>AI;@9 + FA675>3D7 D7F3;>
AB7@
3557EE 7H7@ 478AD7
F:7   >7H7> ;E ?7F
I;F:B3DF;5;B3F;A@
47;@9 >;?;F76
FA97@7D3F;A@ 5A?B3@;7E
F:3F
5A?B>KI;F: F:7    ;@EF3>>76 97@7D3F;@9 53B35;FK >;?;FE -:;E
BDABAE76 3?7@6?7@F
IAG>6 3>>AI ') 3@6 ),%& FA D7F3;@ 5A@FDA> A8
3
E;L734>7
97@7D3F;@9 53B35;FK EG88;5;7@F
FA
6A?;@3F7 F:7 ?3D=7F
3F
F:7
F;?7
A8 ;?B>7?7@F3F;A@ 0:;>7
F:;E ?3D=7F
6A?;@3@57
A8
') 3@6 ),%& I;>> @AF 4K >3D97
36H7DE7>K 38875F ;DEF 7@ DAGB5A@E;67D;@9
F:3F ?AEF
A8
F:7
97@7D3F;A@ AGFBGF
A8 ;DEF 7@NE AB7D3F;@9 EG4E;6;3D;7E ;E 3>D736K 5A@FD35F76 I;F:')3@6AF:7D 7@F;F;7E
A@
3 >A@9 F7D?
43E;E
3@KG@5A@FD35F76 53B35;FK
F:3F ;DEF 7@ ?3K
:3H7;@F:7 8GFGD7
3E 8AD ;@EF3@57 ;@
F:7 7H7@F
A8
7JB3@E;A@ ?3K
47 EG4<75F
FA
G@7H7@ 5A?B7F;F;H7
BD7EEGD7E 8DA?
')
3@6 ),%& 'A@7F:7>7EE
F:7 ?3D=7F 5A@FDA> A8
') 3@6 ),%& ;E
7JB75F76
FA I3@7 AH7DF;?7
3E
F:7 BD;H3F;L3F;A@
BDA9D3?
BDA9D7EE7E

+75A9@;L;@9
F:7 D79G>3FADK 3GF:AD;FK
A8
F:7 )[AH7D 6;EFD;4GF;A@ GF;>;F;7E ;@ )[ 36?;@;EF7D76 75A@A?;5 LA@7E

"@
EA83D
3E ;F ?3K
47 ;@F7DBD7F76 FA3>>AI )[
FA
675>3D7 D7F3;>
AB7@ 3557EE D793D6>7EE
A8
')
BD;H3F;L3F;A@ >7H7> F:;E
3?7@6?7@F ?3KE;?;>3D>K
38875F ;DEF 7@ DAGBNE 5A?B7F;F;H7@7EE H;E ] H;E ') 3@6 ),%&
3E AGF>;@76
34AH7

)D7E5D;4;@9 366;F;A@3> >;?;F3F;A@
A@ 4;>3F7D3> 5A@FD35FE 47FI77@ D7>3F76 B3DF;7E ;@ F:3FEG5: 5A@FD35FE E:3>> @AF
7J5776  
A8
F:7 ;@EF3>>76
97@7D3F;@9 53B35;FK A8
3
9D;6 ,:AG>6 ;DEF 7@ DAGB
7JB3@6 ;@ F:7 %GLA@ D;6
F:;E
BDABAE76 D7EFD;5F;A@ ?3K >;?;F
BAF7@F;3>
A88 F3=7 4K &+%( 8DA? ;DEF 7@ DAGB9;H7@ &+%(NE 7J;EF;@9 A88 F3=7
39D77?7@FE
I;F: ) 3@6 )

,G4<75F;@9 F:7 D76G5F;A@ A8 DAK3>F;7E 8AD
F:7
7JB>A;F3F;A@
A8 ;@6;97@AGE 7@7D9KEAGD57E
F:3F
F:7 )D7E;67@FE:3>>
AD67D
FA
F:7 CG3>;8;53F;A@ OI:7@7H7D
F:7 ;@F7D7EF
A8
F:7 97@7D3> BG4>;5 EA D7CG;D7EP "@EA83D
3E
F:7
D76G5F;A@ 475A?7E
6;E5D7F;A@3DK D3F:7DF:3@ ?3@63FADK F:7 ;?B>7?7@F3F;A@
A8
F:7 D76G5F;A@
A8 DAK3>F;7E A@ @3FGD3> 93E I:;5: IAG>6 7@:3@57
F:7
BD;57 5A?B7F;F;H7@7EE
A8 97@7D3F;A@ 4K ) 3@6 )
A@ 3 BAEF F3J BAEF DAK3>FK 43E;EH;E ] H;E
97@7D3F;A@
GE;@9 ;?BADF76 8G7>E ?3K 47
3557>7D3F76 AD
67>3K76 67B7@6;@9 A@ F:7
F;?;@9
A8
F:7 BD7E;67@F;3> 35F;A@

"@
F:7
!AGE7
A8
+7BD7E7@F3F;H7E
F:7
A??;FF77
A@ @7D9K :3EEG4?;FF76 8AD B>7@3DK 3BBDAH3>
!AGE7 ;>> 'A 
BDABAE;@9
F:7 8A>>AI;@9
3?7@6?7@FE
FA
F:7
)"+ 3?A@9
AF:7DE

557>7D3F;@9
F:7 ;?B>7?7@F3F;A@
A8 D7F3;> 5A?B7F;F;A@ 3@6 AB7@ 3557EE 4K >AI7D;@9
F:7
BD7 D7CG;E;F7>7H7>
A8
BD;H3F;L3F;A@
A8
')NE 97@7D3F;@9
3EE7FE
3@6
")) 5A@FD35FE 8DA?  
FA
  3@6 D75A9@;L;@9
F:7
3GF:AD;FK
A8 )[ FA ;??76;3F7>K 675>3D7 D7F3;> AB7@
3557EE ;@
75A@A?;5

159 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

LA@7E E ;@ F:7 ,7@3F7
BDABAE3>
F:;E 5AG>6 36H7DE7>K 38875F ;DEF 7@ DAGBNE 5A?B7F;F;H7@7EE H;E ] H;E
') 3@6 ),%& 3E
67E5D;476
73D>;7D

D3@F;@9 )[
F:7
3GF:AD;FK FA ;??76;3F7>K 675>3D7 D7F3;> 5A?B7F;F;A@ 3@6 AB7@
3557EE ;@
F:7 )[ 36?;@;EF7D76
75A@A?;5 LA@7E I;F: E;?;>3D
BAEE;4>7
78875F
3E
F:7
5AG@F7DB3DF
BDABAE3> ;@ F:7 ,7@3F7

+7?AH;@9 F:7 BAI7D 8DA? F:7 +
FA;EEG77J B3DF7
BDAH;E;A@3> 3GF:AD;FK ;@ D3F7;@5D73E7 3BB>;53F;A@E A8
6;EFD;4GF;A@ GF;>;F;7E -:;E ?3K 38875F
&+%(NE 53E:8>AI
AD 34;>;FK FA
F;?7>K 5:3D97 ;FE
6;EFD;4GF;A@ D3F74GF @AFF:7 B3EE F:DAG9:
A8
97@7D3F;A@ 5AEF -:AG9: @AF 6;D75F>K 38875F;@9 ;DEF 7@ DAGB F:7 D7EG>F;@9 6;88;5G>FK A@ &+%( ?3K :3?B7D
&+%(NE 34;>;FK FA?3=7
B3K?7@FE FA )
3@6 )

;DEF
!A>6;@9E DAGB 53@@AF
BDAH;67
3@K 3EEGD3@57 I:7F:7D 3@K AD 3>> A8
F:7E7
BDABAE76 3?7@6?7@FE
I;>> 47
7@35F76 ;@
F:7;D 5GDD7@F 8AD?
AD
3F
3>>
ADI:7@ 3@K
3?7@6?7@F
FA
F:7 )"+ I;>> 47 7@35F76 )DABAE76
3?7@6?7@FE
FA
F:7 )"+ ;@5>G6;@9 F:AE76;E5GEE76 34AH7 3EI7>> 3E
AF:7D >79;E>3F;A@
ADD79G>3F;A@ 5AG>6 :3H7?3F7D;3> 36H7DE7 ;?B35F
A@
F:7 ;DEF
!A>6;@9E DAGBNE 4GE;@7EE 8;@3@5;3> 5A@6;F;A@
3@6 D7EG>FE
A8
AB7D3F;A@E

7DF;8;53F7E
A8
A?B>;3@57 ) )
!K6DA
3@6 G=;6@A@
:3H7
477@
9D3@F76
7DF;8;53F7E
A8
A?B>;3@57 (E4K F:7 + 8AD
F:7
AB7D3F;A@
A8
F:7;DD7EB75F;H7
BAI7D B>3@FE
A@ ,7BF7?47D

 
'AH7?47D

  #G@7
  
3@6 74DG3DK    D7EB75F;H7>K -:7
(E I:;5:
3D7 H3>;6 8AD
3
B7D;A6
A8

K73DE E;9@;8KF:3F
F:7 5A?B3@;7E ;@ D7>3F;A@
FA
F:7;DD7EB75F;H7 97@7D3F;A@ 835;>;F;7E
:3H7 5A?B>;76 I;F: 3>>
F:7 D7CG;D7?7@FE
G@67DD7>7H3@F + 9G;67>;@7E
F:7 ):;>;BB;@7 D;6
A67 F:7 ):;>;BB;@7 ;EFD;4GF;A@ A67
F:7 0,& DG>7E
3@6 D7>3F76 >3IE DG>7E 3@6 D79G>3F;A@E

@7D9K :3E
477@ 9D3@F76
F:7 0:A>7E3>7 99D793FADNE
7DF;8;53F7
A8
+79;EFD3F;A@ A@
&3K    78875F;H78AD
3
B7D;A6 A8
 K73DE
3@6
F:7
+7F3;> >75FD;5;FK ,GBB>;7DNE
%;57@E7A@ 74DG3DK    78875F;H78AD
3
B7D;A6 A8
 K73DE

)GDEG3@F
FA F:7 BDAH;E;A@E A8 ,75F;A@

A8
F:7 )"+ >75FD;5 )AI7D
"@6GEFDK )3DF;5;B3@FE
BD7B3D7 3@6 EG4?;F 8AD
3BBDAH3>
A8 F:7 +
F:7;DD7EB75F;H7GE;@7EE ,7B3D3F;A@
3@6
.@4G@6>;@9 )>3@ ,.) I:;5: D7CG;D7EF:7?
FA ?3;@F3;@ E7B3D3F7
355AG@FE 8AD
AD
AF:7DI;E7 EFDG5FGD3>>K 3@6 8G@5F;A@3>>KG@4G@6>7 F:7;D 4GE;@7EE
35F;H;F;7E

,;@57
735: A8 ) ) G=;6@A@
3@6 !K6DA;E 7@93976 EA>7>K ;@
F:7 4GE;@7EE
A8
BAI7D 97@7D3F;A@ FA
F:7
7J5>GE;A@
A8
F:7
AF:7D 4GE;@7EE E79?7@FE
A8
FD3@E?;EE;A@ 6;EFD;4GF;A@ EGBB>K 3@6 AF:7DD7>3F76 4GE;@7EE
35F;H;F;7E 5A?B>;3@57 I;F:
F:7 ,.) D7CG;D7?7@F
A@
?3;@F3;@;@9 E7B3D3F7 355AG@FE ;E @AFD73EA@34>K BD35F;534>7 3E76
A@
3EE7EE?7@FE
A8 ) ) G=;6@A@ !K6DA 3@6 @7D9K
F:7K
3D7;@
F:7
BDA57EE
A8 5A?B>K;@9 I;F:
F:7
BDAH;E;A@E A8
F:7
)"+ 3@6 ;FE "++

5 >73@ ;D 5F

(@
'AH7?47D


F:7
"++ A8
F:7
):;>;BB;@7 >73@ ;D 5F ) FAA=
78875F -:7
"++
5A@F3;@ BDAH;E;A@E
F:3F
:3H73@;?B35F
A@
F:7 ;@6GEFDK 3E
3 I:A>7
3@6
A@ ) ) 3@6 )) ;@ B3DF;5G>3D F:3F @776
FA 47 5A?B>;76 I;F: I;F:;@

?A@F:E AD #G>K
  8DA?
F:7
78875F;H;FK 63F7 EG4<75F
FA
3BBDAH3> 4K
F:7 '+ -:7
BAI7D
B>3@FE A8 )
3@6
)
GE7@3FGD3> 93E
3E 8G7> 3@6 :3H7
7?;EE;A@E
F:3F
3D7 I3K
47>AI
F:7 >;?;FE E7F ;@ F:7 '3F;A@3> ?;EE;A@ ,F3@63D6E 8AD ,AGD57E ,B75;8;5 ;D )A>>GF;A@ 3@6 ?4;7@F ;D *G3>;FK ,F3@63D6E 3E76
A@
)NE 3@6 )NE ;@;F;3> 3EE7EE?7@FE
A8
F:7
BAI7D B>3@FEN
7J;EF;@9 835;>;F;7E
F:7 5A?B3@;7E
47>;7H7
F:3F 4AF:
3D7;@8G>> 5A?B>;3@57 I;F: F:7 3BB>;534>7 BDAH;E;A@E
A8
F:7 "++
A8
F:7 )

(@
F:7 AF:7D
:3@6 ))
47>;7H7E
F:3F
F:7 )DA<75F 9D77?7@FEB75;8;53>>K BDAH;67E
F:3F ;F ;E @AF 5A@FD35FG3>>K A4>;93F76 FA473D
F:7 8;@3@5;3> 5AEF
A8 5A?B>K;@9 I;F:
F:7
@7I >3I )GDEG3@F
F:7D7FA 5A?B>;3@57
A8
F:7 3G3@9 )>3@FI;F: +  E:3>>
47 EG4<75F
FA
F:7 8;@3> 39D77?7@F 47FI77@ F:7 7B3DF?7@F
A8 @7D9K
')
3@6
'+ EB75;8;53>>K A@
F:7 ?3@@7D
A8 5A?B>;3@57 4K 3>> ') "))E ;@5>G6;@9 ))
"@
F:;E 5A@@75F;A@ F:7 '+
:3E ;EEG76 3
&7?AD3@6G?
A@
,7BF7?47D

  6;D75F;@9 3>> D79;A@3> 6;D75FADE
FA
:A>6 ;@ 347K3@57
F:7 ;?B>7?7@F3F;A@
A8
F:7 A@F;@GAGE ?;EE;A@

160 &A@;FAD;@9 ,KEF7? &,
I:;5: ;ED7CG;D76
G@67D
F:7 )
G@F;> EG5: F;?7
F:3F
3
E7F
A8
9G;67>;@7E :3E
477@ 3BBDAH76 (@ #G>K    F:7 '+ ;EEG76
7BF 6?;@ (D67D    I:;5: 78875F;H7>KEGB7DE7676 F:7 ,7BF7?47D

  ?7?AD3@6G? -:7
@7I
BDA@AG@57?7@F
BD7E5D;47E 3 ?AD7
67F3;>76 E7F A8
9G;67>;@7E 8AD 5A?B>;3@57
FA
F:7 A@F;@GAGE (B35;FK &A@;FAD;@9 ,KEF7? (&, &, ;@EF3>>3F;A@ D7CG;D76 G@67DF:7 ) 3@6 >;=7I;E7
BDAH;67E 8AD
3 FIA K73DI;@6AI 8DA? ;EEG3@57
63F7
8AD
38875F76 835;>;F;7EFA 5A?B>K

)) :3E
477@ 5A@6G5F;@9 ?4;7@F ;D ?;EE;A@
&A@;FAD;@9 7H7DK CG3DF7D
3@6 ,AGD57 ?;EE;A@ &A@;FAD;@9 A@57 3 K73D ;@ >;7G
A8
F:7 ;@EF3>>3F;A@ A8
F:7 &, +7EG>FE 3D7 EG4?;FF76 FA
F:7 @H;DA@?7@F3> &A@;FAD;@9 GD73G & 3@6 F:7 '+ +79;A@  (88;57

6 ,GBB>7?7@F3DK
;E5>AEGD7ED793D6;@9 7AF:7D?3>
+7E7DH7E

"@ ,7BF7?47D
  
:3E 5A@FD35F76 7AF:7D?1
FA
BDAH;67 3@ ;@67B7@67@FD7H;7I
A8
F:7 GB63F76 97AF:7D?3>
7@7D9KD7E7DH7E
7EF;?3F;A@ ?367 4K NE
+7E7DHA;D @9;@77D;@9 7B3DF?7@F 8AD 8;H7
97AF:7D?3> 8;7>6E 35&3@ &;@63@3A )3>;@B;@A@ D73F7D -A@9A@3@
3@6
'ADF:7D@
'79DAE

;H73H3;>34>7 ?7F:A6E
A8 7EF;?3F;@9
97AF:7D?3> D7E7DH7EI7D75A@E;67D76 3ED793D6E
F:7;D 3BB>;534;>;FK
FANE 8;7>6E
7?B;D;53> ?7F:A6E HA>G?7FD;5 D7E7DH7
7EF;?3F;A@
675>;@7 5GDH7
3@3>KE;E >G?B76 B3D3?7F7D ?A67>;@9
3@6
@G?7D;53> E;?G>3F;A@ A8
F:7
D7E7DHA;D "FI3E 5A@5>G676
F:3F
A8
F:7E7 ?7F:A6E
A@>KHA>G?7FD;5
7EF;?3F;A@
3@6 @G?7D;53> E;?G>3F;A@ 3D7
97@7D3>>K
GE78G> FA;@ 7EF;?3F;@9 D7E7DH7E  :3E 5A@6G5F76 @G?7D;53> E;?G>3F;A@ FA?AEF
A8 ;FE 8;7>6E 67F3;>76 D7H;7I A8
A@7
EG5: E;?G>3F;A@ EFG6K 8AD
&;@63@3A 8;7>6 E:AI76 ;F
FA47D73EA@34>7

"F ;E
BA;@F76
AGF
F:3F I:;>7 @G?7D;53> E;?G>3F;A@ ;E ?AD7 EAB:;EF;53F76 F:3@ HA>G?7FD;5 D7E7DH77EF;?3F;A@
F:7 >3FF7D 53@
47
D736;>K 5A@6G5F76 ;@ 3
BDA434;>;EF;5 I3K I:;>7
F:7 8AD?7D 53@@AF

7AF:7D?1 ;@ F:7;DD7BADF D7>73E76 ;@ (5FA47D
  GE76
F:7 E3?7 HA>G?7FD;5 D7E7DH77EF;?3F;A@ ?7F:A6
GE76 4K  8AD
F:7 H3D;AGE 97AF:7D?3> 8;7>6E B3FF7D@76 38F7D
F:7
. , 7A>A9;53> ,GDH7K 4GF 6;887D
A@>K ;@ F:7 :73FD75AH7DK 835FAD 7AF:7D?1 5A@5>G676 F:3F NE
7EF;?3F;A@ ;E 5A@E7DH3F;H7 6G7 FA
F:7 >AI :73FD75AH7DK 835FADH3>G7E
A8
 FA  (@ F:7 AF:7D
:3@6 7AF:7D?1
7EF;?3F7E A8 D7E7DH7E ;@ F:7E7 8;7>6 >A53F;A@E 3D7   :;9:7D
F:3@
F:AE7
A8 

)DAH76 97AF:7D?3> D7E7DH7ED787D
FA
D7E7DH7EI:;5: 53@
47 BDA6G576 I;F:=@AI@57DF3;@FK 3@6 67>;@73F76 ;@ =@AI@
BDA6G5F;A@ >;?;FE
3E 5A@8;D?76 4K 6D;>>;@9 3@6 BDA6G5F;A@
:;EFADK

)DA434>7 D7E7DH7ED787D
FA
F:AE7
F:3F 5AG>6 47 BDAH7@
4K @AD?3> EF7B AGF 6D;>>;@9 3E
I7>>
3EF:AE7 F:3F 5AG>6
47 7JFD35F76
4K ;?BDAH76 D75AH7DK F75:@;CG7E >;=7
35;6;L;@9

)AEE;4>7 D7E7DH7ED787D
FA
F:AE7 D7E7DH7E
F:3F
3D75GDD7@F>KG@7JFD35F34>7
4753GE7
A8 D7EAGD57 3@6 F75:@A>A9K BDA4>7?E
4GF
?3K 47 8AG@6
FA 47 5A??7D5;3> ;@
F:7 8GFGD7

-:7 8A>>AI;@9 F34>7 E:AIE 3 5A?B3D;EA@
A8
7EF;?3F76 97AF:7D?3>
7@7D9KD7E7DH7E 8DA? 
3@6
7AF:7D?1

EF;?3F76 7AF:7D?3> @7D9K
+7E7DH7E

&73@
+7E7DH7E &73@
+7E7DH7E A?B3@K 7AF:7D?1 EF;?3F7E EF;?3F7E ;7>6 &07 &07 D73F7D -A@9A@3@ %7KF7   )3>;@B;@A@ '79DAE (D;7@F3>   35A@ &3@;FA%GLA@   &;@63@3A   'ADF:7D@ '79DAE    -AF3>     #5;8)+ +5:.+83F "+658: ):5(+8 

161 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

7 +7BG4>;5 5F 'A  +  O+7@7I34>7 @7D9K 5F
A8
 P

(@ #3@G3DK   
+  4 ): !8535:/4- :.+ +<+2563+4: %:/2/@':/54
'4* 533+8)/'2/@':/54
5,
"+4+='(2+ 4+8-? "+95;8)+9 '4*
,58 :.+8 !;8659+9 I:;5: E:3>>
47 =@AI@
3E F:7 O+7@7I34>7 @7D9K 5F
A8
 P F:7 5F 4753?7
78875F;H7

+  3;?E
FA
3557>7D3F7
F:7
7JB>AD3F;A@ 3@6
67H7>AB?7@F
A8 D7@7I34>7 7@7D9KD7EAGD57E
3EI7>> 3E
FA
;@5D73E7
F:7 GF;>;L3F;A@
A8 D7@7I34>7 7@7D9K 4K ;@EF;FGF;A@3>;L;@9
F:7 67H7>AB?7@F
A8
@3F;A@3>
3@6 >A53> 53B34;>;F;7E ;@ F:7
GE7A8D7@7I34>7 7@7D9KEKEF7?E
3@6
BDA?AF;@9 ;FE
788;5;7@F 3@6 5AEF 78875F;H75A??7D5;3>
3BB>;53F;A@ 4K
BDAH;6;@9 8;E53> 3@6
@A@ 8;E53> ;@57@F;H7E

-:7 >3I 3>EA 7@5AGD397E
F:7
67H7>AB?7@F 3@6 GF;>;L3F;A@
A8 D7@7I34>7 7@7D9KD7EAGD57E
3E
78875F;H7 FAA>EFA
BD7H7@F
ADD76G57
:3D?8G>7?;EE;A@E
3@6
F:7D74K 43>3@5;@9 F:7 9A3>E
A8 75A@A?;5
9DAIF:
3@6 67H7>AB?7@FI;F:
F:7
BDAF75F;A@ A8
:73>F:3@6F:7 7@H;DA@?7@F -:75F
3>EA;@F7@6E
FA7EF34>;E: F:7 @757EE3DK ;@8D3EFDG5FGD7
FA53DDK AGF F:7 ?3@63F7EEB75;8;76 ;@
F:7 >3I 3@6 AF:7DD7>7H3@F
7J;EF;@9 >3IE

-:7 5F
BDAH;67E
3
E7H7@ K73D
"-!
3@6
F3J
7J7?BF;A@E 8AD
F:7
53D4A@ 5D76;FE 97@7D3F76 8DA? D7@7I34>7
7@7D9KEAGD57E  5ADBAD3F7 ;@5A?7
F3J
3E
393;@EF F:7 D79G>3D   ;E 3>EA
BDAH;676 A@57
F:7
"-!
7JB;D7E 7@7D9KE7>8 EG88;5;7@5K
FA  
4K
  8DA?
  ;@
  4KF3BB;@9 D7EAGD57E >;=7 EA>3D I;@6
:K6DABAI7D
A573@ 3@6 4;A?3EE
7@7D9K D7@7I34>7 7@7D9K 835;>;F;7EI;>> 3>EA479;H7@ 3
  D73>FK
F3J 53B A@
AD;9;@3> 5AEF
A8
7CG;B?7@F
3@6 835;>;F;7EFABDA6G57 D7@7I34>7 7@7D9K

-:7 >3I 3>EA
BD;AD;F;L7E
F:7 BGD5:3E7
9D;6 5A@@75F;A@ 3@6
FD3@E?;EE;A@
A8
7>75FD;5;FK 97@7D3F76 4K 5A?B3@;7E 8DA? D7@7I34>7
7@7D9KEAGD57E 3@6 BAI7D
97@7D3F76 8DA? D7@7I34>7 7@7D9KEAGD57EI;>> 47 H3>G7 36676 F3J 7J7?BF

0;F:;@ E;J  ?A@F:E 8DA? F:7
78875F;H;FK A8
F:7 5F
F:7
7B3DF?7@F
A8 @7D9KE:3>> ;@ 5A@EG>F3F;A@ I;F: F:7 ,7@3F7
3@6
!AGE7
A8
+7BD7E7@F3F;H7E A??;FF77 A@ @7D9K D7>7H3@F 9AH7D@?7@F
397@5;7E 3@6 D7@7I34>7 7@7D9KEF3=7:A>67DE
BDA?G>93F7 F:7 "?B>7?7@F;@9 +G>7E
3@6
+79G>3F;A@E
A8
F:7 5F

;DEF
!A>6;@9E DAGB;E 7H3>G3F;@9
F:7 E;9@;8;53@F ;?B35F
F:3F
F:7 5F ?3K :3H7A@
F:7
;DEF
!A>6;@9E DAGBNE 8GFGD7 AB7D3F;A@E 3@6 8;@3@5;3> D7EG>FE

-:7 >3I 3>EA
BD;AD;F;L7E
F:7 BGD5:3E7
9D;6 5A@@75F;A@ 3@6
FD3@E?;EE;A@
A8
7>75FD;5;FK 97@7D3F76 4K 5A?B3@;7E 8DA? D7@7I34>7
7@7D9KEAGD57E 3@6 BAI7D
97@7D3F76 8DA? D7@7I34>7 7@7D9KEAGD57EI;>> 47 H3>G7 36676 F3J 7J7?BF

8 "+ +7H7@G7
+79G>3F;A@
'A
  

(@
757?47D

 
F:7 "+ ;EEG76
+7H7@G7 +79G>3F;A@E ++
'A    I:;5: ;?B>7?7@F76 F:7
BDAH;E;A@E
A8 ,75F;A@ %
A8
F:7
-3J
A67 A8

3E
3?7@676 4K ,75F;A@ 
A8
+7BG4>;5 5F 'A  
673>;@9 A@ F:7 (BF;A@3> ,F3@63D676G5F;A@ (,
3>>AI76 FA ;@6;H;6G3>E
3@6 5ADBAD3F;A@E ;@ 5A?BGF;@9
F:7;D
F3J34>7 ;@5A?7

3E76 A@ F:7 ++ ;F 3>>AI76 ;@6;H;6G3>E 3@6 5ADBAD3F;A@E
FA
5>3;? (, ;@ >;7G
A8 F:7 ;F7?;L76 676G5F;A@E ; 7 ;F7?E A8
AD6;@3DK 3@6 @757EE3DK 7JB7@E7E
3>>AI76 G@67D ,75F;A@E


FA #
3@6
& ,75F;A@  AF:7DEB75;3> >3IE ;8
3BB>;534>7 "@ 53E7
A8 5ADBAD3F7 F3JB3K7DE EG4<75F
FA
F3J
G@67D ,75F;A@E

3@6  
A8
F:7
'3F;A@3>
"@F7D@3> +7H7@G7
A67 '"+ 3E 3?7@676
F:7
(, 3>>AI76 E:3>> 47 ;@ 3@
3?AG@F @AF
7J5776;@9  
A8 F:7;D
9DAEE ;@5A?7 -:7 ;F7?E
A8
9DAEE ;@5A?7 G@67D ,75F;A@  A8
F:7 -3J
A67
3E
3?7@676 I:;5:
3D7 D7CG;D76 FA47
675>3D76 ;@
F:7
"@5A?7 -3J
+7FGD@ "-+
A8
F:7
F3JB3K7D 8AD
F:7
F3J34>7 K73D 3D7
B3DF A8
F:7
9DAEE ;@5A?7
393;@EF I:;5:
F:7 (, ?3K 47 676G5F76 ;@
3DD;H;@9 3F
F3J34>7 ;@5A?7 )3EE;H7 ;@5A?7 I:;5: :3H7
477@ EG4<75F76
FA
3
8;@3> F3J
3F
EAGD57 E:3>> @AF
8AD?
B3DF
A8
F:7
9DAEE ;@5A?7 8AD
BGDBAE7E
A8 5A?BGF;@9
F:7   (,

AD
AF:7D 5ADBAD3F7
F3JB3K7DE
3>>AI76 4K >3IFA D7BADF
F:7;D ;@5A?7
3@6 676G5F;A@E
G@67D
3
6;887D7@F ?7F:A6
A8
355AG@F;@9 7 9 B7D57@F397A85A?B>7F;A@ 43E;E
7F5 
AF:7D
F:3@ 53E: 3@6 355DG3> ?7F:A6 A8
355AG@F;@9 F:7
9DAEE ;@5A?7
BGDEG3@F
FA F:7 ++ E:3>>
47 67F7D?;@76 ;@
355AD63@57 I;F: E3;6 3557BF34>7 ?7F:A6 A8
355AG@F;@9

162 5ADBAD3F7
F3JB3K7DI:A 7>75F76
FA3H3;>
A8
F:7
(, E:3>> E;9@;8K ;@ ;FE D7FGD@ EG5: ;@F7@F;A@ AF:7DI;E7;FE:3>> 47 5A@E;67D76
3E :3H;@9 3H3;>76
A8
F:7 ;F7?;L76 676G5F;A@E 3>>AI76 G@67D ,75F;A@ 
A8
F:7
'"+ (@57
F:7
7>75F;A@
FA3H3;> F:7 (, ;EE;9@;8;76 ;@ F:7 D7FGD@ ;FE:3>>
47 ;DD7HA534>7 8AD
F:7
F3J34>7 K73D 8ADI:;5:
F:7 D7FGD@;E ?367

"@
F:7 8;>;@9 A8
F:7
CG3DF7D>K
"-+
F:7 F3JB3K7D ?3K ABFFA
GE7
7;F:7D
F:7 ;F7?;L76 676G5F;A@ AD (, !AI7H7D ;@ 8;>;@9 F:7 8;@3>
"-+
F:7 F3JB3K7D ?GEF ?3=7
3
5:A;57
3E
FA I:3F ?7F:A6 A8
676G5F;A@ ;FE:3>> 7?B>AK 8ADF:7 BGDBAE7A8 67F7D?;@;@9 ;FE F3J34>7 @7F ;@5A?7 8AD
F:7
7@F;D7 K73D -:7
F3JB3K7D ;E F:GE @AF 3>>AI76 FA
GE7
3
:K4D;6 ?7F:A6 A8 5>3;?;@9 ;FE
676G5F;A@ 8AD A@7 F3J34>7 K73D

AD
F:7
F3J34>7 B7D;A6  
I:;5: ;E
F:7 ;@;F;3> K73D
A8 F:7 ;?B>7?7@F3F;A@ A8
F:7
  (,
F:7
  ?3J;?G?
676G5F;A@ E:3>>
A@>K 5AH7D
F:7
B7D;A6 479;@@;@9 #G>K    I:;5: ;EF:7
78875F;H763F7A8 F:7 E3;6 5F

!AI7H7D ;@AD67D
FA
E;?B>;8K 3@6 BDAH;67
73E7
A8
36?;@;EFD3F;A@
6GD;@9
F:7
FD3@E;F;A@ B7D;A6 #G>K    E:3>> 47 5A@E;67D76 3E
F:7 EF3DF
A8
F:7 B7D;A6 I:7@ F:7   (, ?3K 47 3>>AI76

"@
  ;DEF
!A>6;@9E DAGB 5A?BGF76 ;FE ;@5A?7
F3J
43E76 A@ ;F7?;L76
676G5F;A@E

 B2:@? 3@2> @52 .8.:02 '522@ .@2

3 3E:6;H;67@6 675>3D3F;A@

(@ #3@G3DK    -:7 A3D6
A8
;D75FADE
A8 )!
3BBDAH76
3 675>3D3F;A@ A8
3
53E:6;H;67@6 A8 )  B7DE:3D7
A@ F:7 ,7D;7E )D787DD76 ,:3D7E ,:3D7:A>67DE
A8 D75AD6
A8 ,7D;7E )D787DD76 ,:3D7E 3E
A8 74DG3DK

  I7D77@F;F>76
FA
F:7 53E:
6;H;67@6E I:;5: I7D7B3K34>7A@AD
478AD7 74DG3DK    -:7 6;H;67@6ED7BD7E7@FF:7 8;J76 D3F7
A8
  B7D
3@@G?A@
F:7 ,7D;7E  )D787DD76 ,:3D7E

4 "@H7EF?7@F
3@6
AAB7D3F;A@ 9D77?7@F

(@
&3D5:    )! 7@F7D76 ;@FA3@"@H7EF?7@F
3@6
AAB7D3F;A@ 9D77?7@FI;F: )%- 67E;9@76 FA3>>AI 4AF: 5A?B3@;7E 6;D75F>K
AD ;@6;D75F>K
FA HAF7
F:7;DE:3D7E ;@ &+%( 43E76
A@
?GFG3>;FK A8 ;@F7D7EF
3@6
BDABADF;A@3F7 3>>A53F;A@ A8 HAF;@9 D;9:FE -:7
39D77?7@F EG4<75F
FA
57DF3;@ 5A@6;F;A@E
3@6
3BBDAH3>E 5A@F7?B>3F7EF:7 E3>7 8AD )  ?;>>;A@
A8
3
FAF3>
A8
 5A??A@ E:3D7E
AD
3BBDAJ;?3F7>K  
A8
F:7
AGFEF3@6;@9 53B;F3> EFA5=
A8
&+%( ;@ 83HAD
A8 )%-
AD ;FE 388;>;3F7E -:7 )! 3@6 )%-
39D776 A@ 57DF3;@ 5ADBAD3F79AH7D@3@57
BD;@5;B>7EEG5:
3E @A?;@3F;A@
A8
6;D75FADE
FA
F:7 &+%( A3D6

-:;EI;>> D76G57 ;DEF
!A>6;@9E DAGBNE FAF3> 6;D75F
3@6 ;@6;D75F
AI@7DE:;B ;@ &+%(
FA   3BBDAJ;?3F7>K

5 'AF7E )3K34>7 A8
.@;8;76

(@
&3D5: 
  .@;8;76 E;9@76
3@
39D77?7@F 8AD
3
 K73D ADBAD3F7'AF7 35;>;FK 'AF7 35;>;FKA8 GB
FA) 
4;>>;A@ I;F:35A@EADF;G?
A8 >A53> 43@=E >76 4K (
3B;F3> 3@6
"@H7EF?7@F
ADBAD3F;A@ ):;>;BB;@7
'3F;A@3> 3@=
3@6
+;L3>
A??7D5;3> 3@=;@9
ADBAD3F;A@ 3E %736 DD3@97DE -:7
'AF7 35;>;FK I;>> 47 3H3;>76A8;@H3D;AGE
FD3@5:7E I;F: 3 ?;@;?G?
BD;@5;B3>
3?AG@F
A8 ) ?;>>;A@ 473D;@9 3@ 3@@G3> ;@F7D7EF D3F7
A8
  3@6 I;>> ?3FGD7
A@
&3D5:    -:7
'AF7 35;>;FK ;E
@AF
D79;EF7D76 I;F: F:7 ):;>;BB;@7 , 4753GE7;F ;E
3@ 7J7?BF
FD3@E35F;A@ G@67D ,75F;A@   A8
F:7
,+

6 )DA5776E A8
%A3@
8DA?
"@F7D@3F;A@3> ;@3@57 ADBAD3F;A@ " 

 7@F7D76 ;@FA3>A3@
39D77?7@F
I;F:
" 
3
E:3D7:A>67D
A8  A@ 'AH7?47D

  8AD ., ?;>>;A@ AD ;FE B7EA
7CG;H3>7@F

(@ #3@G3DK

   D757;H76 F:7 BDA5776E
A8
F:7 >A3@ ;F 7@F7D76 ;@FA I;F:" 
3?AG@F;@9
FA
  ?;>>;A@ )   ?;>>;A@ @7F
A8 )  ?;>>;A@ 8DA@F 7@6 877 -:7 >A3@ ;E B3K34>7 ;@  7CG3>

163 FIRST PHILIPPINE HOLDINGS CORPORATION AND SUBSIDIARIES Notes Consolidated Financial Statements

E7?; 3@@G3> ;@EF3>>?7@FE
38F7D
3
F:D77 K73D
9D357
B7D;A6
3F 3@ ;@F7D7EF D3F7A8
 
B7D 3@@G?8AD
F:7
8;DEF 8;H7 K73DE EG4<75F
FA
D7 BD;5;@9 8AD
3@AF:7D
 FA K73DE

7 ?7@6?7@F
A8
F:7
E:3D74GK 435=
BDA9D3?
A8 

(@ #3@G3DK   
F:7 (
A8  3BBDAH76
3@
3?7@6?7@F
FA
NE E:3D74GK 435=
BDA9D3? FA ;@5>G67 @AF A@>KF:7
BD7H;AGE>KEF3F76 A4<75F;H7
A8 35CG;D;@9 E:3D7EFA ;?B>7?7@F
F:7
BDABAE76 7J75GF;H7 7?B>AK77 EFA5= AI@7DE:;B B>3@ 4GF 3>EA8AD
F:7 BGDBAE7A8
7@:3@5;@9 E:3D7:A>67DH3>G7 I:7@7H7D
F:7 EFA5= ;E
FD36;@9
3F
3
BD;57 6;E5AG@FFA;FE FDG7 H3>G3F;A@

-:7 E:3D7
4GK 435=
BDA9D3? I;>> 47 ;?B>7?7@F76
F:DAG9: 9D3@FE ABF;A@E BGD5:3E7E
AD
AF:7D 7CG;H3>7@F ?7F:A6E

-:7 ?3J;?G?3?AG@F
3BBDAH76 8AD
F:7 4GK 435=
BDA9D3? D7?3;@E
3F
) 4;>>;A@ I:;5: ?3K
47
53DD;76 AGF AH7D 3 FIA K73D B7D;A6 8DA?
&3D5:

 
FA&3D5:    3FF:7 6;E5D7F;A@
A8 ?3@397?7@F E
A8
757?47D

 
F:7
FAF3> @G?47D
A8 NE
FD73EGDK E:3D7E
I3E


8 J75GF;H7 ?B>AK77 ,FA5= (I@7DE:;B )>3@ A8 

(@ #3@G3DK   
F:7 (
A8  3BBDAH76
F:7 J75GF;H7 ?B>AK77 ,FA5= (I@7DE:;B )>3@
3@6 F:7 D7>3F76 DG>7E

9 +7BG4>;5 5F 'A  + 

+  3;?E
FA
3557>7D3F7
F:7
7JB>AD3F;A@ 3@6
67H7>AB?7@F
A8 D7@7I34>7 7@7D9KD7EAGD57E
3EI7>> 3E
FA
;@5D73E7
F:7 GF;>;L3F;A@
A8 D7@7I34>7 7@7D9K 4K ;@EF;FGF;A@3>;L;@9
F:7 67H7>AB?7@F
A8
@3F;A@3>
3@6 >A53> 53B34;>;F;7E ;@ F:7
GE7A8D7@7I34>7 7@7D9KEKEF7?E
3@6
BDA?AF;@9 ;FE
788;5;7@F 3@6 5AEF 78875F;H75A??7D5;3>
3BB>;53F;A@ 4K
BDAH;6;@9 8;E53> 3@6
@A@ 8;E53> ;@57@F;H7E

-:7 >3I 3>EA 7@5AGD397E
F:7
67H7>AB?7@F 3@6 GF;>;L3F;A@
A8 D7@7I34>7 7@7D9KD7EAGD57E
3E
78875F;H7 FAA>EFA
BD7H7@F
ADD76G57
:3D?8G>7?;EE;A@E
3@6
F:7D74K 43>3@5;@9 F:7 9A3>E
A8 75A@A?;5
9DAIF:
3@6 67H7>AB?7@FI;F:
F:7
BDAF75F;A@ A8
:73>F:3@6F:7 7@H;DA@?7@F -:75F
3>EA;@F7@6E
FA7EF34>;E: F:7 @757EE3DK ;@8D3EFDG5FGD7
FA53DDK AGF F:7 ?3@63F7EEB75;8;76 ;@
F:7 >3I 3@6 AF:7DD7>7H3@F
7J;EF;@9 >3IE

-:7 5F
BDAH;67E
3
E7H7@ K73D
"-!
3@6
F3J
7J7?BF;A@E 8AD
F:7
53D4A@ 5D76;FE 97@7D3F76 8DA? D7@7I34>7
7@7D9KEAGD57E  5ADBAD3F7 ;@5A?7
F3J
3E
393;@EF F:7 D79G>3D   ;E 3>EA
BDAH;676 A@57
F:7
"-!
7JB;D7E 7@7D9KE7>8 EG88;5;7@5K
FA  
4K
  8DA?
  ;@
  4KF3BB;@9 D7EAGD57E >;=7 EA>3D I;@6
:K6DABAI7D
A573@ 3@6 4;A?3EE
7@7D9K D7@7I34>7 7@7D9K 835;>;F;7EI;>> 3>EA479;H7@ 3
  D73>FK
F3J 53B A@
AD;9;@3> 5AEF
A8
7CG;B?7@F
3@6 835;>;F;7EFABDA6G57 D7@7I34>7 7@7D9K

-:7 >3I 3>EA
BD;AD;F;L7E
F:7 BGD5:3E7
9D;6 5A@@75F;A@ 3@6
FD3@E?;EE;A@
A8
7>75FD;5;FK 97@7D3F76 4K 5A?B3@;7E 8DA? D7@7I34>7
7@7D9KEAGD57E 3@6 BAI7D
97@7D3F76 8DA? D7@7I34>7 7@7D9KEAGD57EI;>> 47 /- 7J7?BF

0;F:;@ E;J  ?A@F:E 8DA? F:7
78875F;H;FK A8
F:7 5F
F:7
( E:3>> ;@ 5A@EG>F3F;A@ I;F: F:7 ,7@3F7
3@6 !AGE7
A8
+7BD7E7@F3F;H7E A??;FF77
A@
@7D9K D7>7H3@F
9AH7D@?7@F 397@5;7E 3@6 D7@7I34>7 7@7D9KEF3=7:A>67DE
BDA?G>93F7 F:7
"?B>7?7@F;@9
+G>7E
3@6
+79G>3F;A@E A8
F:7 5F

;DEF
!A>6;@9 DAGB;E 7H3>G3F;@9 F:7 E;9@;8;53@F
78875F
F:3F
F:7 5F ?3K :3H7A@ ;DEF
!A>6;@9E DAGBNE 8GFGD7
AB7D3F;A@E
3@6 8;@3@5;3> D7EG>FE

: !769;@9 -D3@E35F;A@

(@
&3D5:   
3E B3DF
A8 5GDD7@5KD;E= ?3@397?7@F  7@F7D76 ;@FA
3
8AD7;9@
7J5:3@97 5A@FD35F
FA :7697 F:7 D7?3;@;@9 #)2 4;>>;A@ A8
F:7
#)2 4;>>;A@ &;K3L3I3>A3@6G7A@#G@7

  -:7 EFD;=7 D3F7;E #)2 
B7D .,

164 ; ;H;67@6 75>3D3F;A@

(@
&3D5:   
F:7 (
A8  3@ ;@6;D75FEG4E;6;3DK
A8 )!
3BBDAH76 F:7 8A>>AI;@9 53E: 6;H;67@6E ;@ 83HAD
A8
3>> ;FE EFA5=:A>67DE
A8 D75AD6
3E
A8 BD;>    3@6
B3K34>7 A@ &3K   

3E:6;H;67@6 A8 )  B7DE:3D7
A@ F:7 BD787DD76 E:3D7E
+79G>3D 53E:6;H;67@6
A8 )  B7DE:3D7A@F:7 5A??A@ E:3D7E

 'A<<8292:@.8
:3;>9.@6;: 
;:?;861.@21 '@.@292:@? ;3
.?5 8;C?

"@
  BD7B3;6 ?3G676 ;@
F:7 OAF:7D
@A@5GDD7@F
3EE7FP
355AG@F
3?AG@F;@9 FA)   I3ED75>3EE;8;76 FA
BDAB7DFK
B>3@F 3@6 7CG;B?7@F ;@ D7>3F;A@
FA (& 9D77?7@FE E77
'AF7
;

"@
  F:7 @A@ 53E:;@H7EF;@9 35F;H;FK ;@5>G67E
F:7 ) 
4;>>;A@ .,  ?;>>;A@ 6787DD76
B3K?7@F 835;>;FK 3H3;>76 8DA? ),%& ;@ D7>3F;A@
FA
F:7 )!) &!)
35CG;E;F;A@ E77 'AF7


165

FIRST PHILIPPINE HOLDINGS CORPORATION2008 ANNUAL REPORT

Concept + Design k2 Interactive (Asia) Inc.

Cover by Erik Liongoren

Portraitures by Wig Tysmans

Photos courtesy of First Philec, Meralco Corporate Communications, First Gen Corporation, Rockwell Land, FPIP, First Balfour

This First Philippine Holdings Corporation 2008 Annual Report cover is printed on FSC®-certified Beckett Expression 30% PC, which is made of 30% process chlorine-free post-consumer recycled fiber with the balance comprised of elemental chlorine-free virgin fiber. This paper is made carbon neutral with Mohawk’s production processes by offsetting thermal manufacturing emissions with Verified Emission Reduction Credits (VERs), and by purchasing enough Green-e certified Renewable Energy Certificates (RECs) to match 100% of the electricity used in our operations. This paper is certified by Green Seal.

The inside pages of this Annual Report are printed on Bookpaper, which is 100% recyclable. FIRST PHILIPPINE HOLDINGS CORPORATION 4th Floor Benpres Building Exchange Road corner Meralco Avenue Ortigas Center, Pasig City, 1605 Philippines Tel. No. (632) 631 8024 Fax No. (632) 631 4089 www.fphc.com [email protected]