MacroAsia Corporation

JOSE RIZAL MEMORIAL STATE UNIVERSITY
COLLEGE OF BUSINESS AND ACCOUNTANCY
ACCOUNTANCY DEPARTMENT
A FINANCIAL STATEMENT ANALYSIS OF
MICROASIA CORPORATION
In partial fulfilment of the requirements for
FINANCIAL MANAGEMENT
AEACC4/AEAIS4
SUBMITTED BY:
Anghag, Jerry Lou C.

Bacalso, April L.
Barceliano, Lyza Jean
Betonio, Gwyneth O.
Gimoros, Maryven T.
Indoc, Charmae D.
Lagarnia, Lady Elah C.
Licaros, Adelyn B.
Macamay, Cristina Mae B.
Polinar, Lea Mae D.
Sagang, Cherry May S.
SUBMITTED TO:
EVINCE EARL C. COLUMNAS, CPA, JD
INSTRUCTOR I
1ST SEMESTER, AY 2020-2021

INTEGRITY PLEDGE
Academic honesty and integrity are essential principles of the Jose Rizal
Memorial State University and accounting as a profession. All JRMSU students are
expected to behave as honest and responsible members of an academic community.
Accounting students have an even greater responsibility to maintain the highest level of
academic honesty and integrity as they prepare to enter a profession with those
principles as a cornerstone.
Cheating on exams or projects, plagiarizing or any other form of academic

dishonesty are clear violations of these principles.
As a student of the College of Business and Accountancy at JRMSU, I solemnly

pledge to follow the policies, principles, rules, and guidelines of the University with
respect to academic honesty.
By signing this pledge, I promise to adhere to exam requirements and maintain

the highest level of ethical principles during the exam period.
Signed:
Anghag, Jerry Lou C. Bacalso, April L. Barceliano, Lyza Jean
Betonio, Gwyneth O. Gimoros, Maryven T. Indoc, Charmae D.
Lagarnia, Lady Elah C. Licaros, Adelyn B. Macamay, Cristina Mae B.
Polinar, Lea Mae D. Sagang, Cherry May S.

Acknowledgement
First and foremost, praises and thanks to the God Almighty who strengthen us with
His given shower of knowledge and blessings to cross the completion of this study in a
successful way.
We would also like to express our deepest thanks to the instructor in this course, Mr.
Evince Earl Columnas, for giving us this opportunity to conduct a research and study
that is related to our selected program. Within this activity, we were able gain new
knowledge and understandings that could help us benefit in the future. Throughout his
immerse knowledge, patience, and guidance, we offer you our sincere appreciation for
this learning opportunity.
The completion of this activity could not have been accomplished without the
participation of each member in the group who had been responsible at doing their
given task. Cheer to the risk and perseverance we’d contributed to seek success in this
study. We are gratefully honoured to conduct this study with each other’s knowledge,
trust and power.
Finally, a special thanks to our parents and love ones who fully supports us mentally,
emotionally, and economically, and for motivating us to complete this study. Without all
the valued people above, this study would come out to nothing.
I. Executive Summary
MacroAsia Corporation (MAC) is located in PNB-Allied Bank, 6754 Ayala Ave,
Makati City, Metro Manila, Philippines and is a part of the management of Companies
and Enterprises Industry one of the leading providers of aviation-related support
services in the Philippines. The company operates a diverse portfolio of aviation-related
business and participates in a variety of aviation sector activities including catering,
ground handling, maintenance, repairs, and overhaul. The company operates a two-
hectare facility inside the Ninoy Aquino International Airport and the new Muntinlupa
facility will also complement the existing in-flight kitchen. Do also offer services such as
in-flight catering services, ground handing and aviation, rental and administrative
services and charter flight services. It also carries out mining activities.
Such passion and drive shall be anchored on a committed team of professionals
who shall embody a strong stakeholder-focus, integrity, strategic thinking, empowering
leadership, continual development and commitment to national growth and social
responsibility. With the mission to increase shareholder value, ensure long-term
profitability, develop world-class competencies, provide career opportunities and create
synergies as we build mutually beneficial partnerships, alliances or joint ventures with
those who share our philosophy and values.
In 2019, the segment’s capacity had increased with the start of both MacroAsia
SATS Inflight Services, which runs Philippine Airlines’ inflight kitchen, and MacroAsia
SATS Food Industries, which has commercial operations outside the airport.
Meanwhile, revenues from ground-handling and aviation services, which accounted for
45% of the total, fell 41% to P725.99 million in 2020 from P1.241 billion in 2019. Flights
handled declined 47% to 49,383 flights from 92,824 previously. Contributing 9% to total
revenue, water operations booked revenue of P139.76 million, a decrease of 17% from
P168.38 million in the first half of last year, the loss attributable to the decline in
commercial water sales in Boracay. While water businesses in other areas outside of
Boracay grew significantly, it was not enough to offset the drop in billed volume in
Boracay. Thus, amidst the pandemic, a consolidated net income of P602.68 million in
the first half of 2019 has swung to a consolidated net loss of P518.13 million in the first
six months of year 2020.

II. Background of the Company
a. History
Originally, the company was registered with the Philippine Securities and
Exchange Commission (SEC) on February 16, 1970 under the name of Infanta
Mineral and Industrial Corporation. It started as a mining firm located in Brooke’s
Point, Palawan, Philippines that is used to export nickel ore to Japan in 1970. By the
26th of January 1994, its Article of Incorporation had amended to change its primary
purpose from being an engaging business of geological exploration and
development into a business of a holding company and was renamed into Cobertson
Holdings Corporation. However, on November 6, 1995, the SEC further approved
another change of its corporate name to what is now known as “MacroAsia
Corporation”.
In June 1996, the company incorporated two wholly-owned subsidiaries namely:
MacroAsia Properties Development Corporation (MAPDC) as a developer and
operator of the MacroAsia Special Economic Zone, the only special economic zone
at Ninoy Aquino International Airport (NAIA), and MacroAsia Air Taxi Services, Inc.
(MAATS) which provides helicopter chartering services. August of 1996, its first flight
catering business through its association with Cebu Pacific Catering Services, Inc.
(CPCS), the only full service airline company in Mactan-Cebu International Airport
(MCIA). It started commercial operations in October 1996 as a licensed non-
scheduled domestic flight operator that caters air charter services to the diverse
needs of its various clients. And by November 1996, the company incorporated its
second flight catering venture, MacroAsia Catering Services, Inc. (MACS), which is
the dominant caterer of foreign airlines in NAIA since it operated in 1998. A year
later, another subsidiary was incorporated to service the ground handling
requirements of the commercial passengers, cargo and military aircrafts. Through
years, it became a preferred and reputable airport and ground handling service
company in the Philippines.

In the year 1999 of December, a joint venture of Lufthansa Technik AG and
Philippine aviation services provider MacroAsia Corporation, Lufthansa Technik
Philippines (LTP) offers a wide range of aircraft maintenance, repair and overhaul
(MRO) services to customers worldwide. As one of the 30 affiliates and subsidiaries
within the Lufthansa Technik network, the company is committed to ensuring that
every aircraft that comes out of its hangars reflects the world-renowned Lufthansa
Technik standard of quality, safety and reliability. On September 25, 2000,
MacroAsia Mining Corporation (MMC) a new subsidiary was incorporated to be an
institutional vehicle for providing outsourced exploration services to other mining
companies. The business was activated to serve as the corporate vehicle for
providing outsourced exploration of services to other mining companies.
In 2016, MAC started to enter into water business in different locations outside
Manila. SNV Resources Development Corporation (SNVRDC) was established to
complete waterworks system in Solano, Nueva Vizcaya. This project which was
funded by MAPDC and MacroAsia Corporation without any external debt incurred
from banks. In December 2016, MADPC acquired 67% of Boracay Tubi System, Inc.
(BTSI), one of two current water concessionaires in Boracay Island. In August 2017,
MAPDC acquired 100% of Naic Water Supply Corporation (NAWASCOR), a water
utility company in Naic, Cavite. And by December 5, 2017, First Aviation Academy,
Inc. (FAA) was incorporated in the Philippines by MAC to support the growing
demand for pilots in the country. The company was established with its purpose to
establish, administer, and operate an aviation-related training and skills center that
offers various aviation related courses to airline and non-airline.
In October 2018, Airport Specialists’ Services Corporation (ASSC), a wholly
owned subsidiary of MacroAsia Corporation, had purchased 60% shares of stock
held by the former individual shareholders of Summa Water Resources, Inc. (SWRI).
ASSC was then renamed to Allied Water Services Inc. With the support of
MacroAsia Corporation, SWRI is undertaking a massive business expansion and is

progressively building a remarkable reputation in the water industry market. Also, in
July 2019, AlliedKonsult Eco-Solutions Corporation (AlliedKonsult) a 51% owned by
ASSC was incorporated to engage in construction of sewage and septage treatment
plants and facilities including related collections, treatment and disposal services.
On March 16, 2019, MacroAsia Group took over Philippine Airlines’ ground
handling through MASCORP and catering requirements through MacroAsia SATS
Inflight Services Corporation (MSIS). MSIS aims to be the best catering company in
the Philippines and a renowned in-flight catering corporation globally. It aims to
support its client, Philippine Airlines to their quest in becoming a 5-star airline in the
country. The corporate structure of MSIS inspires and pushes forward the creative
thinking of all staffs to cause more improvement and drive within. Also, within March
2019, MacroAsia SATS Food Industries Corporation (MSFI) started producing meals
for institutional clients. On November 5, 2019, MAC has set its first footprint outside
the Philippines through a partnership with Konoike Transport Co., Ltd. (Konoike).
MAC acquired 30% stake in Japan Airport Service Co. Ltd. (also known as JASCO
in Japan Aviation Industry), while a 20% stake MASCORP was acquired by Konoike.
This expands the ground handling business of MacroAsia Group that provides safe
flight operation in addition to value-added quality services accompanied by on-time
performance operating in Narita International Airport in Japan.

b. Organizational Structure
Board of Directors
Atty. Florentino M. Herera III
(Corporate Secretary)
Joseph T. Chua
(President and Chief Operating Officer)
Marivic T. Moya Amador T. Sendin

(VP- Human Resources,legal and (VP-Administration and Business Management Committee
External Realtions, Compliance Development and Chief Financial
officer/corporate information officer) Officer)
Rhodel C. Esteban Emerson S. Bonoan, Jr.

(MACS-General Manager) (MASCORP-General Manager)
Joselito B. Ellazar
Ma. Nicola Frances S. Tanjangco
(MAATS-General Manager)
(MSFI-General Manager)
Raoul S. Perez Belgium S. Tandoc

(FAA-General Manager) (MAC-AVP-Business Devt.)
Sisenando T. Lampa
Angelo V. Dyoco
(MAPDC-AVP-Water Operations)
(MAPDC-VP-Operations)
Harry B. Contreras
Charmian Angela A. Molina
(MAPDC-Project Head)
(BTSI-General Manager)
Manolito B. Supnet Nila T. Baria

(SNV-General Manager) (NAWASCOR-General Manager)
Rogel A. Santos
(MMC-Exploration Manager/OIC
Mining Operations)
c. Description of the Operations of the Company
MacroAsia Corporation (MAC) is a diversified hospitality service provider. The
company operates a two-hectare facility inside the Ninoy Aquino International Airport
and the new Muntinlupa facility will also complement the existing in-flight kitchen. MAC
offers some services such as in-flight catering services, ground handing and aviation,
rental and administrative services and charter flight services. It also carries out mining
activities. The company caters its services through its subsidiaries and associated
companies to the airline customers in Manila Domestic Airport, Mactan Cebu
International Airport. It also operates through its subsidiaries and affiliates such as
Lufthansa Technik Philippines, Inc., Macro Asia Air Taxi Services, Inc., Macro Asia
Properties Development Corporation, Macro Asia Airport Services Corporation and Toll-
Macro Asia Philippines, Inc. Lufthansa Technik Philippine, Inc. is a global aircraft
maintenance, repair and overhaul (MRO) company that is putting the Philippines in he
global aviation map by assuring safe and reliable airline operations to its worldwide
customers through quality and cost-effective services that strictly adhere to international
industry regulations and Lufthansa Technik standards. Today, the MAC group is
focused in the field of aviation-related support services and in natural resources
development, particularly in projects involving the use of water resources.
d. Industry Overview
i. Description of the industry in which the company operates
MAC is building a new commissary/central production facility that will be used
principally for institutional accounts other than airlines. The facility will be operated by its
subsidiary, MacroAsia SATS Food Industries. The new unit is expected to expand
MacroAsia’s business in the non-airline food segment starting this year. MACS has
already been serving the meal requirements of some business process outsourcing,
banks, casinos and even caterers who require mass production of meals. MacroAsia
has been designated as the preferred ground handler for PAL and PALEx in Manila and
Mactan, Cebu, involving activities related to passenger services, ramp handling, cargo
and others. With the increase in catering volumes through two new a facilities and major
local clients being serviced, MacroAsia sees the benefit of substantial recurring revenue
growth, and the opportunity to drive down material costs as purchasing volumes can
eventually be aggregated under a shared-services setup.
ii. Discussion of the top competitors in the industry
MacroAsia is known for several services that it can provide to satisfy its
customers it is also known for catering airline services. And just like how MacroAsia
gain loyal customers it is also normal to have its own competitors. Here are some
competitors of MacroAsia in airline industry. First is the Philippine Airlines it is the trade
of PAL Holding, Inc. is historically known as Philippine Air Lines. It is the flag carrier of
the Philippines and is based at the PN Financial Centre in Pasay and was founded on
1941. Philippine Airlines is considered to be the first and the oldest commercial airline in
Asia. Second is Cebu Air Inc. or as we commonly known as Cebu Pacific Air that is
located in Cebu, Philippines. Cebu Pacific Air is one of the low-cost airlines in the
Philippines and was founded on 1988. It offers scheduled flights to both domestic and
international destinations. Third is a full-service airline that is also based in the
Philippines. The Pan Pacific Airlines that was established in 1973 under the name Astro
Air International only in 2016 after it began to operate to serve South Korea Astro Air
International was rebranded. The airline continued its operation on April 27, 2017.
Fourth is Kinetsu World Express (Philippines) Inc. that is actually a Japanese freight
forwarding and logistics company and is part of a global network of more than 300
offices in 32 countries worldwide. Kinetsu offers a wide range of service responsive to
the growing demands of the global supply chain. It was formerly established in 1998 yet
Kinetsu Japan was already present here in the Philippines in 1978 by a local agent.
Fifth is the AirSWIFT that is formerly known as Island Tranvoyager. And is Filipino-
owned global boutique airline company which is permitted to operate domestic either
scheduled or non-scheduled or transportation services and was founded in 2002. It
headquartered at ALPAP Building Andrew Avenue, Pasay City, Metro Manila,

Philippines. AirSWIFT also serves the aircraft transportation requirements of its affiliated
company which is El Nido Resorts. Lastly is the United Airlines, Inc. that is commonly
referred to as United. It is the American major airline and is based at Willis Tower in
Chicago, Illinois. The said airline operates a large domestic and international routes and
it extends at large and small cities across the United States and all sox continents. It is
consider to be the largest airline in the world based on the measure of its fleet size and
number of routes. United Airlines Inc. is a founding member of the Star Alliance which is
the world’s largest airline alliance with 28 airlines as its members. It also has a regional
service that is operated by independent carriers under the brand name of United
express.
iii. Discussion of the current status of the industry
Subsequent to December 31, 2019, the Philippine Government implemented
travel ban to/ from high risk countries severely affected by the outbreak of Coronavirus
Disease 2019 ("COVID-19") which affected the Group's catering and ground handling
services to airlines with the flights to/from these countries. As of March 6, 2020, the
group continuously complies with the regulations set forth by the local government in
relation to the travel ban.
The group considers the events surrounding the outbreak as non-adjusting
subsequent events, which do not impact its financial position and performance as of and
for the year ended December 31, 2019. According, no adjustments have been made to
the consolidated financial statements as of and for the year ended December 31, 2019
for the impact of COVID-19. However, it could have a material impact on its 2020
financial reports and vent periods thereafter. Considering the evolving nature of this
outbreak, the Group cannot determine at this time the impact to its consolidated
financial position, performance and cash flow.
Meanwhile, MANILA, Philippines — Stock markets across the globe are
tumbling, financial business districts around the world are looking like ghost towns and
economies are slowing down. The Philippines is no exception. The COVID-19 crisis has
dealt a severe blow to the airline sector. The country’s local carriers have grounded all
flights after the Philippine government ordered enhanced community quarantine in
Luzon to contain COVID-19’s spread. The quarantine is expected to be lifted by the
middle of April, but doubts remain over how soon demand for air travel will recover.
“Today, it has become clear we do not know when the airline industry, on which our
business depends, will be able to resume its operations at its pre-COVID-19 levels,” the
company said.
COVID-19-related jitters have sent the stock market spiraling downward, erasing
hopes investors initially had for 2020.Investors had high hopes for 2020 especially
coming from a volatile 2018 and a lackluster 2019. But the New Year is looking to be an
even more challenging year not only for the Philippine stock market, but also for equities
markets across the globe, no thanks to the negative impact of COVID-19. Investors
have reasons to worry. After all, many listed companies are expected to be negatively
affected by the virus and report a drop in profits.
According to experts interviewed by The STAR, the virus will affect different
sectors – from consumer to property to gaming and tourism to airlines. Airlines hardest
hit, the airline players are taking the heaviest toll. Lucio Tan-owned Philippine Holdings
Inc., operator of four star carrier Philippines Airlines and Gokongwei-owned Cebu Air
Inc., the country’s biggest budget carrier operator, are facing turbulent skies. The two
carriers have suspended all flight operations between Philippines and the Greater China
route which includes Macau and Hong Kong. “This route accounts for 13 % of Cebu
Air‘s aircraft capacity. Cebu Air expects average seat load factor to decline from 85 % to
30 % on high cancellations and estimates P3 billion to 4 billion in losses should the
outbreak extend to six months, based on its experience with SARs in 2003,” RCBC
said. MacroAsia Corp., another Tan-led company, may also bear some spillover effects
on lower demand for their aviation support, catering, and ground handling services,
RCBC also said in its report.

COVID-19 drags MacroAsia to P518M net loss.
From a consolidated net income of P602.68 million in the first half of 2019,
MacroAsia Corporation has swung to a consolidated net loss of P518.13 million in the
first six months of this year. “The first half loss reflects a reversal in profitability, the first
time in so many years since 2013, as the group felt the impact of the COVID-19
pandemic in its aviation-related businesses,” the aviation support service provider said
in a regulatory disclosure. Service revenues declined 41.4% to P1.619 billion in the first
half of 2020 from P2.762 billion in the same period in 2019. Revenues from in-flight
catering, which contributed 45% or P723.95 million of the total revenues, decreased
45% compared to P1.327 billion in the first six months of 2019. Meals sold totaled 3.22
million, down 43% from the 5.62 million meals sold year-on-year.The food segment was
constrained by quarantine measures and the drop in airline passenger traffic brought
about by COVID-19 international travel restrictions, explained the company.
In March 2019, the segment’s capacity had even increased with the start of both
MacroAsia SATS Inflight Services, which runs Philippine Airlines’ inflight kitchen, and
MacroAsia SATS Food Industries, which has commercial operations outside the airport.
Meanwhile, revenues from ground-handling and aviation services, which accounted for
45% of the total, fell 41% to P725.99 million in 2020 from P1.241 billion in 2019. Flights
handled declined 47% to 49,383 flights from 92,824 previously. Contributing 9% to total
revenue, water operations booked revenue of P139.76 million, a decrease of 17% from
P168.38 million in the first half of last year, the loss attributable to the decline in
commercial water sales in Boracay. While water businesses in other areas outside of
Boracay grew significantly, it was not enough to offset the drop in billed volume in
Boracay. Administrative revenues from economic zone leases in the first half of 2020
did not change significantly from last year’s as rates charged were relatively stable.
Exploratory drilling revenue was P4.156 million, which is 74% higher than the P2.393
million earned in the first half of 2019.

First Aviation Academy, that started commercial operation in May 2019 and on
boarded three batches of trainees, halted classes in the second quarter of 2020,
resulting in the temporary suspension of revenue generation during the period. Total
direct costs in the first half of 2020 amounted to P1.46 billion, a decline of 30% from
P2.071 billion last year as cost-containment measures were put in place by the ground-
handling and catering subsidiaries.
The share in net income/loss of the group’s associates—Lufthansa Technik
Philippines, Inc., Cebu Pacific Catering Services, Inc. (CPCS), and Japan Airport
Service Corp. (JASCO)—amounted to P213.86 million, reflecting a decrease of 142%
from the 2019 profit. One of the main contributors to the net loss for the first half of 2020
is the share in net loss from Lufthansa for maintenance, repairs and overhaul services
due to significant reduction in its line maintenance business, as most commercial flights
stood grounded in the country from March 16 onwards.

III. Financial Statements
MACROASIA CORPORATION AND SUBSIDIARIES

CONSOLIDATED BALANCE SHEETS
December 31 December 31 January 1

2019 2018 2017
(As restated, (As restated,
Notes 2 and10) Note 2)
ASSETS
Current Assets
Cash and cash equivalents (Notes 5, 18, 22 and 23) P 1,219,639,428 P 675,196,833 P 913,191,924
Receivables and contract assets (Notes 6, 15, 18 and 23) 1,925,742,769 900,423,623 697,822,309
Inventories (Note 7) 105,978,871 88,774,310 79,120,917
Input taxes and other current assets (Note 8) 348,491,609 188,870,957 136,891,276
Total Current Assets 3,599,852,677 1,853,265,723 1,827,026,426
Noncurrent Assets
Investments in associates (Note 9) 3,087,533,060 2,285,668,180 1,825,414,378
Property, plant and equipment (Note 12) 2,561,076,769 2,065,540,597 1,145,108,621
Net investment in lease (Note 28) 1,171,844,192 1,169,089,704 1,167,217,957
Right-of-use assets (Note 28) 499,566,989 533,951,574 507,187,809
Investment property (Note 13) 143,852,303 143,852,303 143,852,303
Service concession right (Note 14) 424,608,123 429,702,669 402,916,926
Intangible assets and goodwill (Notes 10 and 14) 302,112,383 273,394,445 239,500,593
Input taxes - net (Note 8) 262,173,286 236,403,791 138,621,708
Deferred income tax assets - net (Notes 10 and 25) 51,897,998 25,331,291 22,653,073
Other noncurrent assets (Notes 15, 18, 21 and 28) 383,451,244 546,492,575 410,023,630
Total Noncurrent Assets 8,888,116,347 7,709,427,129 6,002,496,998

TOTAL ASSETS P12,487,969,024 P9,562,692,852 P7,829,523,424
LIABILITIES AND EQUITY

Current Liabilities
Notes payable (Notes 16, 18, 22 and 23) P 575,000,000 P 348,450,000 P 207,700,866
Accounts payable and accrued liabilities
(Notes 17, 18, 23 and 28) 1,750,913,920 868,237,174 643,391,773
Income tax payable 14,004,966 16,855,640 8,172,218
Dividends payable (Note 27) 35,928,020 21,234,024 180,660,640
Current portion of long - term debts (Notes 16, 18, 22, and 23) 482,536,067 77,009,744 434,634,202
Current portion of lease liabilities (Note 28)
24,688,033 22,479,958 21,355,961
Total Current Liabilities 2,883,071,006 1,354,266,540 1,495,915,660

Noncurrent Liabilities
Long-term debts - net of current portion (Notes 16, 18,
22 and 23) 784,399,498 676,516,177 77,975,743
Lease liabilities - net of current portion (Note 28) 1,698,736,101 1,721,063,375 1,678,653,506
Accrued retirement and other employee benefits payable
(Note 21) 93,089,694 29,053,471 28,974,452

Deferred income tax liabilities - net (Notes 10, 15 and 25) 142,800,411 138,610,450 125,193,265
Other noncurrent liabilities (Note18)
48,029,160 44,795,967 53,849,644
Total Noncurrent Liabilities 2,767,054,864 2,610,039,440 1,964,646,610
Total Liabilities 5,650,125,870 3,964,305,980 3,460,562,270
Equity attributable to equity holders of the Company

Capital stock – P 1 par value (Note 27) P 1,618,146,293 P 1,618,146,293 P 1,250,000,000
Additional paid-in capital 281,437,118 281,437,118 281,437,118
Other reserves (Note 27) 1,030,075,272 143,299,677 143,299,677
Other components of equity (Notes 9, 15 and 21) (159,952,483) 98,146,690 (98,821,397)
Retained earnings (Note 27) 4,081,275,526 3,270,479,831 2,587,383,549
Treasury shares (Note 27) (426,826,835) (176,215,402) (113,676,300)
6,424,154,891 5,235,294,207 4,049,622,647
413,688,263 363,092,665 319,338,507
Non-controlling interests (Note 11)
Total Equity 6,837,843,154 5,598,386,872 4,368,961,154

TOTAL LIABILITIES AND EQUITY P 12,487,969,024 P 9,562,692,852 P 7,829,523,424
CONSOLIDATED STATEMENTS OF INCOME
Years Ended December 31
2019 2018 2017

Notes 2 and 10) Note 2)
REVENUE ( Note 19)
In-flight and other catering (Note 18) P 2,905,490,152 P 1,663,770,983 P 1,541,000,353
Ground handling and aviation (Note 18) 2,869,563,325 1,463,947,551 1,031,617,643
Water 347,597,854 271,043,164 142,646,814
Administrative (Note 18) 29,742,058 27,857,712 28,265,705
Exploratory drilling fees (Note 28) 15,437,718 − 27,259,722
6,167,831,107 3,426,619,410 2,770,790,237

DIRECT COSTS (Notes 19 and 28)
In-flight and other catering 2,077,705,460 1,102,589,553 1,006,099,235
Ground handling and aviation 2,424,663,739 1,175,549,990 807,477,254
Water related expenses (Note 10) 245,470,437 246,621,272 124,415,505
Administrative 43,681,283 60,958,179 19,484,610
Exploratory drilling expense 24,338,456 13,666,586 27,433,991
4,815,859,375 2,599,385,580 1,984,910,595

GROSS PROFIT 1,351,971,732 827,233,830 785,879,642
SHARE IN NET EARNINGS OF ASSOCIATES (Note 9) 1,077,260,403 1,070,014,588 978,508,908
2,429,232,135 1,897,248,418 1,764,388,550
OPERATING EXPENSES (Note 20) 1,038,520,689 710,712,348 601,428,734
1,390,711,446 1,186,536,070 1,162,959,816

OTHER INCOME (CHARGES) ( Note 22)
Interest income (Notes 5, 15, 18, and 28) 11,775,315 11,076,601 8,482,346
Financing charges (Notes 16, 18 and 28) (88,377,257) (51,353,800) (33,153,279)
Foreign exchange gain - net (Note 22) 17,452,614 27,414,886 3,879,132
Other income – net 53,805,137 29,766,123 40,408,759
(5,344,191) 16,903,810 19,616,958
INCOME BEFORE INCOME TAX 1,385,367,255 1,203,439,880 1,182,576,774

PROVISION FOR INCOME TAX ( Note 25)
Current 193,978,703 122,041,967 118,556,863
Deferred (2,637,521) (4,702,321) (2,133,831)
191,341,182 117,339,646 116,423,032

NET INCOME P 1,194,026,073 P 1,086,100,234 P 1,066,153,742
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2019, 2018 AND 2017
Attributable to Equity Holders of the Company

Other Components of Equity
Reserve for Fair Share in Foreign Share in

Value Currency Remeasurements
AFS Changes of Translation Remeasureme on Defined
Investments Financial Adjustments of nts on Defined Benefit Plan Retained Treasury Non-controlling
Capital Stock Additional Paid-in Other Reserves Reserve Assets Investments an Associate Benefit Plans of Associates Earnings Shares Interests
(Note 27) Capital (Note 27) (Note 15) (Note 15) (Note 9) (Note 21) (Note 9) Subtotal (Note 27) (Note 27) Subtotal (Note 11) Total
BALANCES AT JANUARY 1, 2017,
AS PREVIOUSLY REPORTED P 1,250,000,000 P 281,437,118 P 143,299,677 P 12,054,499 P– (P 52,041,986) P 28,932,144 (P 50,826,750) (P 61,882,093) P 2,000,576,033 (P 49,418,660) P 3,564,012,075 P 298,277,392 P 3,862,289,467
Effect of adoption of PFRS 16 (Note 2) – – – – – – – – – (264,512,512) – (264,512,512) 61,533 (264,450,979)
AS RESTATED 1,250,000,000 281,437,118 143,299,677 12,054,499 – (52,041,986) 28,932,144 (50,826,750) (P=61,882,093) 1,736,063,521 (49,418,660) 3,299,499,563 298,338,925 3,597,838,488
Net income, as previously reported – – – – – – – – – 1,019,242,053 – 1,019,242,053 43,781,301 1,063,023,354
Effect of adopton of PFRS 16 – – – – – – – – – 3,479,586 – 3,479,586 (349,198) 3,130,388
Net income, as restated – – – – – – – – – 1,022,721,639 1,022,721,639 43,432,103 1,066,153,742
Other comprehensive income 2,311,498 (621,060) 2,035,972 (40,265,714) (36,539,304) – – (36,539,304) 667,479 (35,871,825)
Total comprehensive income, as restated – – – 2,311,498 – (621,060) 2,035,972 (40,265,714) (36,539,304) 1,022,721,639 – 986,182,335 44,099,582 1,030,281,917
– – – –
Effect of adoption of PFRS 9 – – – (14,365,997) 13,965,997 – – – (400,000) 400,000 – – – –
Cash dividends at P=0.140 per share – – – – – – – – – (171,801,611) – (171,801,611) – (171,801,611)
Dividends to non-controlling interest – – – – – – – – – – – – (23,100,000) (23,100,000)
Acquisition of treasury shares – – – – – – – – – – (64,257,640) (64,257,640) – (64,257,640)
BALANCES AT JANUARY 1, 2018, AS RESTATED P 1,250,000,000 P 281,437,118 P 143,299,677 P– P 13,965,997 (P 52,663,046) P 30,968,116 (P 91,092,464) (P 98,821,397) P 2,587,383,549 (P 113,676,300) P 4,049,622,647 P 319,338,507 P 4,368,961,154
BALANCES AT JANUARY 1, 2018
AS PREVIOUSLY REPORTED P 1,250,000,000 P 281,437,118 P 143,299,677 P– P 13,965,997 (P 52,663,046) P 30,968,116 (P 91,092,464) (P 98,821,397) P 2,848,416,475 (P 113,676,300) P 4,310,655,573 P 319,626,172 P 4,630,281,745
Effect of adoption of PFRS 16 (Note 2) – – – – – – – – – (261,032,926) – (261,032,926) (287,665) (261,320,591)
BALANCES AT JANUARY 1, 2018, AS RESTATED 1,250,000,000 281,437,118 – 143,299,677 – 13,965,997 (52,663,046) 30,968,116 (91,092,464) (98,821,397) 2,587,383,549 (113,676,300) 4,049,622,647 319,338,507 4,368,961,154
Net income, as previously reported – – – – – –
– 1,048,217,013 – 1,048,217,013 35,366,795 1,083,583,808
–
Effect of adoption of PFRS 16 – – – – – – – – – 3,192,964 – 3,192,964 (397,535) 2,795,429
Effect of finalization of purchase price of SWRI – – – – – – – – – (167,402) – (167,402) (111,601) (279,003)
Net income, as restated – – – – – – – – – 1,051,242,575 – 1,051,242,575 34,857,659 1,086,100,234
Other comprehensive income 21,754,002 106,010,813 8,694,870 60,508,402 196,968,087 – – 196,968,087 317,238 197,285,325
Total comprehensive income, as restated – – – 21,754,002 106,010,813 8,694,870 60,508,402 196,968,087 1,051,242,575 – 1,248,210,662 35,174,897 1,283,385,559
Declaration of 30% stock dividends 368,146,293 – – – – – – – – (368,146,293) – – – –

Non-controlling interest arising on a business combination – – – – – – – – – – – – 33,329,261 33,329,261

(Note 10)
BALANCES AT DECEMBER 31, 2018,
AS RESTATED P 1,618,146,293 P 281,437,118 P 143,299,677 P– P 35,719,999 P 53,347,767 P 39,662,986 (P 30,584,062) P 98,146,690 P 3,270,479,831 (P 176,215,402) P 5,235,294,207 P 363,092,665 P 5,598,386,872
Reserve for Fair Share in Foreign Share in
Value Currency Remeasurements
Changes of Translation Remeasuremen on Defined
AFS Investments Financial Adjustments of ts on Defined Benefit Plan Retained Treasury Non-controlling
Capital Stock Other Reserves Assets Investments an Associate of Associates
Additional Paid-in Reserve Benefit Plans Earnings Shares Interests
(Note 15) (Note 9) (Note 9)
(Note 27) Capital (Note 27) (Note 15) (Note 21) Subtotal (Note 27) (Note 27) Subtotal (Note 11) Total
AS PREVIOUSLY REPORTED P 1,250,000,000 P 281,437,118 P 143,299,677 P 12,054,499 P– (P 52,041,986) P 28,932,144 (P 50,826,750) (P 61,882,093) P 2,000,576,033 (P 49,418,660) P 3,564,012,075 P 298,277,392 P 3,862,289,467
Effect of adoption of PFRS 16 (Note 2) – – – – – – – – – (264,512,512) – (264,512,512) 61,533 (264,450,979)
AS RESTATED 1,250,000,000 281,437,118 143,299,677 12,054,499 – (52,041,986) 28,932,144 (50,826,750) (P=61,882,093) 1,736,063,521 (49,418,660) 3,299,499,563 298,338,925 3,597,838,488
Net income, as previously reported – – – – – – – – – 1,019,242,053 – 1,019,242,053 43,781,301 1,063,023,354
Effect of adopton of PFRS 16 – – – – – – – – – 3,479,586 – 3,479,586 (349,198) 3,130,388
Net income, as restated – – – – – – – – – 1,022,721,639 1,022,721,639 43,432,103 1,066,153,742
Other comprehensive income 2,311,498 (621,060) 2,035,972 (40,265,714) (36,539,304) – – (36,539,304) 667,479 (35,871,825)
Total comprehensive income, as restated – – – 2,311,498 – (621,060) 2,035,972 (40,265,714) (36,539,304) 1,022,721,639 – 986,182,335 44,099,582 1,030,281,917
– – – –
Effect of adoption of PFRS 9 – – – (14,365,997) 13,965,997 – – – (400,000) 400,000 – – – –
Cash dividends at P=0.140 per share – – – – – – – – – (171,801,611) – (171,801,611) – (171,801,611)
BALANCES AT JANUARY 1, 2018, AS RESTATED P 1,250,000,000 P 281,437,118 P 143,299,677 P– P 13,965,997 (P 52,663,046) P 30,968,116 (P 91,092,464) (P 98,821,397) P 2,587,383,549 (P 113,676,300) P 4,049,622,647 P 319,338,507 P 4,368,961,154
BALANCES AT JANUARY 1, 2018
AS PREVIOUSLY REPORTED P 1,250,000,000 P 281,437,118 P 143,299,677 P– P 13,965,997 (P 52,663,046) P 30,968,116 (P 91,092,464) (P 98,821,397) P 2,848,416,475 (P 113,676,300) P 4,310,655,573 P 319,626,172 P 4,630,281,745
Effect of adoption of PFRS 16 (Note 2) – – – – – – – – – (261,032,926) – (261,032,926) (287,665) (261,320,591)
BALANCES AT JANUARY 1, 2018, AS RESTATED 1,250,000,000 281,437,118 – 143,299,677 – 13,965,997 (52,663,046) 30,968,116 (91,092,464) (98,821,397) 2,587,383,549 (113,676,300) 4,049,622,647 319,338,507 4,368,961,154
Net income, as previously reported – – – – – –
– 1,048,217,013 – 1,048,217,013 35,366,795 1,083,583,808
–
Effect of adoption of PFRS 16 – – – – – – – – – 3,192,964 – 3,192,964 (397,535) 2,795,429
Effect of finalization of purchase price of SWRI – – – – – – – – – (167,402) – (167,402) (111,601) (279,003)
Net income, as restated – – – – – – – – – 1,051,242,575 – 1,051,242,575 34,857,659 1,086,100,234
Other comprehensive income 21,754,002 106,010,813 8,694,870 60,508,402 196,968,087 – – 196,968,087 317,238 197,285,325
Total comprehensive income, as restated – – – 21,754,002 106,010,813 8,694,870 60,508,402 196,968,087 1,051,242,575 – 1,248,210,662 35,174,897 1,283,385,559
Declaration of 30% stock dividends 368,146,293 – – – – – – – – (368,146,293) – – – –
Non-controlling interest arising on a business combination – – – – – – – – – – – – 33,329,261 33,329,261

(Note 10)
BALANCES AT DECEMBER 31, 2018,
AS RESTATED P 1,618,146,293 P 281,437,118 P 143,299,677 P– P 35,719,999 P 53,347,767 P 39,662,986 (P 30,584,062) P 98,146,690 P 3,270,479,831 (P 176,215,402) P 5,235,294,207 P 363,092,665 P 5,598,386,872
CONSOLIDATED STATEMENTS OF CASH FLOWS

2019 2018 2017
CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax P 1,385,367,255 P 1,203,439,880 P 1,182,576,774
Adjustments for:
Depreciation and amortization (Notes 12, 14, 15 and 28) 268,894,865 212,137,508 183,552,507
Share in earnings of associates (Note 9) (1,077,260,403) (1 , 070,014,588) (978,508,908)
Financing charges (Notes 16, 18 and 22) 88,377,257 51,353,800 33,153,279
Interest income (Notes 5, 15, 18, 22 and 28) (11,775,315) (11,076,601) (8,482,346)
Unrealized foreign exchange gain - net (2,531,368) (5,346,891) (2,518,753)
Gain on sale of disposal of property and equipment
(Note 12) – (406,314) –
Loss on sale of investment in debt securities
(Note 15) – 6,846,940 –
Retirement benefits costs (Note 21) 40,670,855 25,936,047 22,356,179
Provision for (reversal of) other long-term benefits
(Note 21) 16,778,280 (223,702) 2,055,814
Operating income before working capital changes 708,521,426 412,646,079 434,184,54
Decrease ( increase) in : 6
Receivables and contract assets (1,025,319,146) (276,330,415) (16,780,605)
Inventories (17,204,561) (5,010,794) (8,034,749)
Input taxes and other current assets (159,620,652) (30,515,456) (154,604,330)
Service concession right (14,921,378) (24,406,608) (4,300,110)
Increase in accounts payable and accrued liabilities 706,308,267 225,710,089 168,742,576
Cash generated from operations 197,763,956 302,092,895 419,207,328
Interest received 10,361,668 9,806,748 7,232,735
Financing charges paid (86,440,557) (43,228,631) (32,315,780)
Contributions to the retirement fund (Note 21) (29,893,088) (28,887,875) (22,146,194)
Other employee benefits paid – (1,562,742) (2,167,802)
Income taxes paid, including creditable withholding taxes and tax
credit certificates (196,829,377) (135,514,330) (132,151,799)
Net cash flows from (used in) operating activities (105,037,398) 102,706,065 237,658,488

2019 2018 2017
CASH FLOWS FROM INVESTING ACTIVITIES

Acquisitions of:
Property and equipment (Note 12) (P 514,462,303) (P 1,014,879,287) (P 374,257,508)
Right to use of water permits (Note 14) (32,108,342) – –
Investments - net of cash acquired (Notes 9 and 10) (853,370,000) (51,997,029) (119,555,035)
Proceeds from sale of investment in stocks (Note 10) 886,775,595 – –
Returns from (payments for) refundable deposits
and other noncurrent assets (Note 15) 131,136,565 (8,880,085) 5,350,895
Acquisition of software (Note 15) – (5,278,225) (5,904,823)
Payments of advances to contractors (Note 15) – (205,430,736) (97,322,333)
Payments for project advances (Note 15) – (328,067) (255,102)
Proceeds from disposal of:
AFS debt securities (Note 15) – 63,153,060 –
Property and equipment (Note 12) – 406,339 –
Dividends received (Note 9) 916,316,715 799,282,000 389,109,650
Net cash from (used in) investing activities 534,288,230 (423,952,030) (202,834,256)
CASH FLOWS FROM FINANCING ACTIVITIES
Availments of:
Notes payable (Note 16) 625,000,000 403,865,000 72,550,000
Long-term debts (Note 16) 648,575,000 250,000,000 532,113,742
Payments of:
Notes payable (Note 16) (398,450,000) (262,700,886) (15,261,205)
Long-term debts (Note 16) (135,165,356) (38,067,035) (53,694,362)
Lease liabilities (Notes 28 and 34) (51,068,773) (24,101,553) (17,807,548)
Acquisition of treasury shares (Note 27) (250,444,773) (62,539,102) (64,257,640)
Dividends paid (Note 27) (317,601,323) (184,176,616) (132,221,557)
Net cash flows from financing activities 120,844,775 82,279,808 321,421,430

EFFECT OF EXCHANGE RATE CHANGES ON
CASH AND CASH EQUIVALENTS (5,653,012) 971,066 (2,744,787)
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 544,442,595 (237,995,091) 353,500,875

CASH AND CASH EQUIVALENTS AT BEGINNING
OF YEAR 675,196,833 913,191,924 559,691,049

CASH AND CASH EQUIVALENTS
AT END OF YEAR (Note 5) P 1,219,639,428 P 675,196,833 P 913,191,924

IV. Financial Statement Analysis
a. Horizontal Analysis

Horizontal Analysis of Balance Sheet
%CHAGE %CHAGE

IN IN Amount Amount
2018 2019 2018 2019
ASSETS
Current Assets
-
Cash and cash equivalents (Notes 5, 18, 22 and 23) -26% 81% 544,442,595
237,995,091
Receivables and contract assets (Notes 6, 15, 18 and 1,025,319,1
23) 29% 114% 202,601,314
46
Inventories (Note 7) 12% 19% 9,653,393 17,204,561
Input Taxes and other current assets (Note 8) 38% 85% 51,979,681 159,620,652
1,746,586,9
Total Current Asset 1% 94% 26,239,297
54
Noncurrent Assets
Investments in associates (Note 9) 25% 35% 460,253,802 801,864,880
Property, plant and equipment (Note 12) 80% 24% 920,431,976 495,536,172
Net investment in lease (Note 28) 0% 0% 1,871,747 2,754,488
Right-of-use assets (Note 28) 5% -6% 26,763,765 -34,384,585
Investment property (Note 13) 0% 0%
Service concession right (Note 14) 7% -1% 26,785,743 -5,094,546
Intangible assets and goodwill (Notes 10 and 14) 14% 11% 33,893,852 28,717,938
Input taxes - net (Note 8) 71% 11% 97,782,083 25,769,495
Deferred income tax assets - net (Notes 10 and
25)
12% 105% 2,678,218 26,566,707
-
33% -30% 136,468,945
Other noncurrent assets (Notes 15, 18, 21 and 28) 163,041,331
1,706,930,1 1,178,689,2
Total Noncurrent Assets
28% 15% 31 18
1,733,169,4 2,925,276,1
TOTAL ASSETS
22% 31% 28 72
Current Liabilities
Notes payable (Notes 16, 18, 22 and 23) 68% 65% 140,749,134 226,550,000
Accounts payable and accrued liabilities 35% 102% 224,845,401 882,676,746
Income tax payable 106% -17% 8,683,422 -2,850,674
-
Dividends payable (Note 27) -88% 69% 14,693,996
159,426,616
Current portion of long - term debt(Notes 16, 18, 22, -
and 23)
-82% 527% 405,526,323
357,624,458
Current portion of lease liabilities (Note 28) 5% 10% 1,123,997 2,208,075
- 1,528,804,4
Total Current Liabilities -9% 113%
141,649,120 66
Noncurrent Liabilities
Long-term debts - net of current portion 768% 16% 598,540,434 107,883,321
Lease liabilities - net of current portion (Note 28) 3% -1% 42,409,869 -22,327,274
Accrued retirement and other employee benefits 0% 220% 79,019 64,036,223
payable
Deferred income tax liabilities - net (Notes 10, 15
and 25)
11% 3% 13,417,185 4,189,961
Other noncurrent liabilities (Note18) -17% 7% -9,053,677 3,233,193
Total Noncurrent Liabilities 33% 6% 645,392,830 157,015,424
1,685,819,8
15% 43% 503,743,710
Total Liabilities 90
Equity attributable to equity holders of the
Company
Capital stock – P 1 par value (Note 27) 29% 0% 368,146,293 0
Additional paid-in capital 0% 0% 0 0
Other reserves (Note 27) 0% 619% 0 886,775,595
-
Other components of equity (Notes 9, 15 and 21) -199% -263% 196,968,087
258,099,173
Retained earnings (Note 27) 26% 25% 683,096,282 810,795,695
-
Treasury shares (Note 27) 55% 142% -62,539,102
250,611,433
1,185,671,5 1,188,860,6
29% 23%
60 84
Non-controlling interests 14% 14% 43,754,158 50,595,598
1,229,425,7 1,239,456,2
28% 22%
Total Equity 18 82
1,733,169,4 2,925,276,1
22% 31%
TOTAL LIABILITIES AND EQUITY 28 72

Current Asset
The Horizontal analysis of the Balance sheet of MacroAsia Corp. is that the entities
current assets increase by 1% of the balance from the previous year (2017). This is
caused by the decrease of Cash and Cash Equivalents. By 2018, the entity had a huge
amount of disbursement, such as the total amount of Cash and Cash Equivalents was
decreased by P237, 995, 091. For the receivables and contract assets there is an
increase by 29% from the previous year (2017), this means that the costumers of entity
transact with them on credit. And this might be reason of the small inflows of cash
during this year. The inventories increased by 12%, input taxes and other current
assets increase by 38%. On the following year (2019) there is increase in Cash and
cash equivalents and Receivables and contract assets by 81% and 114% respectively
and all other accounts increases which lead to increase the balance for total current
asset, balance increase by 94 % from the previous year (2018). During this year (2019)
the Balance Sheet shows a good performance of the entity compare to the previous
years.
Non-current Asset
For non-current asset there is an increase by 28% from the previous year (2017)
balance. Investments in associates, Property, plant and equipment increases by 25%
and 80% respectively. The table shows that the entity acquired new PPE for this year.
It also shows they also acquired ownership interest from investment in associates. And
other factors also affected the total balance of the noncurrent asset such as increase in
Input taxes, deferred income tax assets, other noncurrent assets by 71%, 12% and 33%
respectively. On the following year (2019) the balance increases to 15% of the previous
year (2018) this increase is lower than the other year. In this year the entity only
acquires Property, Plant and Equipment amounting of 1,178,689,218 with a rate of 24%
from the previous year compare to the last year increased which amount to 920,431,976
with rate of 80% from the previous year 2017. This year (2019) the entity’s investment in
associate increased by 35% from the previous year. Deferred income tax assets
increased by 105% compare the previous year which only increase by 12%.
This chart above shows the rate of changes of Total Current asset and total non-current
asset compare to the following year (period). In 2018 current asset increased a little bit
from the amount of the previous year (2017). The total amount of non-current asset was
increased by 28% from the previous year (2017). In the following year (2019) there is a
large increase in Total Current asset from the previous year 2018. This is caused by
increase on cash and cash equivalents and also receivables. The total non-current
asset increase much lower than the previous year (2018).
Current Liabilities
For the 2018 the amount of Current Liabilities decreases by 9% from the amount of the
previous year 2017. This might be the cause of the decrease in amount of dividends
payable by which decreases by 88% from the previous year, and the decrease in the
amount of the current portion of the long term debts by which decreases by 82% from
the previous year. In following year 2019 there is an increase in the amount of total
current Liabilities of 133% increase from the previous year 2018.
Non-current liabilities
In 2018, the amount increases to 33% from the previous year 2017, this is due to
changes of the amount of accounts of non-current assets, relatively affected by the
large amount of increase on the long term debts- net current portion, by which increases
to 768% of the previous year. On the following year 2019 there is a small rate increase
for non-current asset by which increased by 6% of the previous year. This is caused by
the increase of Accrued retirement and other employee benefits payable which
increases to 220% with amount of 64,036,223 from the previous year.
The table above shows the decrease and increase of total current liability and total non-
current liability base on the total amount of the previous accounting period/year. In 2018
there is a decrease in the amount of total current liability, and this must be related to the
large amount of disbursement, reflected on the total Current asset of the entity during
this year 2018. The company must have paid a large portion of entity’s obligation. On
the next year (2019) the total amount of current liability increases compared to the
changes of the last years amount. For Non-current Liability there is an increase from the
total amount. On the following year 2019 the increase is much smaller than the year.
Equity
On 2018 there is an increase of total equity of 28% from the previous year, and on the
following year (2019) there is also an increase in total equity but not as much as the last
year increase.
The chart below shows the changes or the increase of Asset, Liability and Equity.
Horizontal Analysis of Income Statement
%CHAGE IN %CHAGE IN Amount Amount
2018 2019 2018 2019

REVENUE ( Note 19)
In-flight and other catering (Note 18) 7.97% 74.63% 122,770,630 1,241,719,169
Ground handling and aviation (Note 18) 41.91% 96.02% 432,329,908 1,405,615,774
Water 90.01% 28.24% 128,396,350 76,554,690
Administrative (Note 18) -1.44% 6.76% -407,993 1,884,346
Exploratory drilling fees (Note 28) -100.00% -27,259,722 15,437,718
23.67% 80.00% 655,829,173 2,741,211,697
DIRECT COSTS (Notes 19 and 28)
In-flight and other catering 9.59% 88.44% 96,490,318 975,115,907
Ground handling and aviation 45.58% 106.26% 368,072,736 1,249,113,749
Water related expenses (Note 10) 98.22% -0.47% 122,205,767 -1,150,835
Administrative 212.85% -28.34% 41,473,569 -17,276,896
Exploratory drilling expense -50.18% 78.09% -13,767,405 10,671,870
30.96% 85.27% 614,474,985 2,216,473,795
GROSS PROFIT 5.26% 63.43% 41,354,188 524,737,902
Share in Net Earnings of Associates (Note 9) 9.35% 0.68% 91,505,680 7,245,815
7.53% 28.04% 132,859,868 531,983,717
Operating Expenses 18.17% 46.12% 109,283,614 327,808,341
2.03% 17.21% 23,576,254 204,175,376
OTHER INCOME (CHARGES) ( Note 22)
Interest income (Notes 5, 15, 18, and 28) 30.58% 6.31% 2,594,255 698,714
Financing charges (Notes 16, 18 and 28) 54.90% 72.09% -18,200,521 -37,023,457
Foreign exchange gain - net (Note 22) 606.73% -36.34% 23,535,754 -9,962,272
Other income – net -26.34% 80.76% -10,642,636 24,039,014
-13.83% -131.62% -2,713,148 -22,248,001
Income Before income Tax 1.76% 15.12% 20,863,106 181,927,375
PROVISION FOR INCOME
TAX ( Note 25)

Current 2.94% 58.94% 3,485,104 71,936,736
Deferred 120.37% -43.91% -2,568,490 2,064,800
0.79% 63.07% 916,614 74,001,536
NET INCOME 1.87% 9.94% 19,946,492 107,925,839
Net income attributable to:
Equity holders of the Company 2.79% 7.40% 28,520,936 77,823,439
Non-controlling interests (Note 11) -19.74% 86.36% -8,574,444 30,102,400
1.87% 9.94% 19,946,492 107,925,839
Basic/Diluted Earnings Per Share* (Note 26) 3.13% 7.58% 0 0
Horizontal Analysis for Comprehensive Income
2019 2018 Amount 2019 Amount 2018
NET INCOME 10% 2% 107,925,839 19,946,492
Other comprehensive income (loss) to be reclassified to
profit or loss in subsequent periods:
Changes in fair value of debt securities held at FVTOCI
(Note 15) -100% 0% -2,092,938 2,092,938
Cumulative unrealized loss on fair value changes on debt
securities recycled to profit or loss (Note 15) -100% 0% -6,846,940 6,846,940
Changes in fair value of AFS investments (Note 15) 0% -100% -2,311,498
Net foreign currency translation adjustments (Note 9) -5% 16969% -5,340,980 105,389,753
Other comprehensive income (loss) not to be reclassified to
profit or loss in subsequent periods:
Changes in fair value of equity investments held at
FVTOCI (Note 15) -45% 0% -7,650,000 17,000,000
Premeasurement gains (losses) on defined benefit plans, net
of tax effect (Note 21) 545% 233% 49,105,441 6,308,657
Share in premeasurement gains (losses) on defined benefit
plans of associates (Note 9) 85% 50% 51,699,594 20,242,688
33% 450% 64,360,053 161,413,500
TOTAL COMPREHENSIVE INCOME -27% 25% -351,004,864 253,103,642
Equity holders of the Company 31% 439% 61,131,086 160,428,783
Non-controlling interests (Note 11) 1018% -52% 3,228,967 -350,241
33% 450% 64,360,053 161,413,500
Total comprehensive income attributable to:
Equity holders of the Company -30% 27% -377,243,821 262,028,327
Non – controlling interest (Note 11) 75% -20% 26,238,957 -8,924,685
-27% 25% -351,004,864 253,103,642
Revenue
The interpretation of the data above is the income statement of the MacroAsia Corp. Is that
the revenue as of 2018 increase by 23.67% from the balance of the previous year (2017). The
decrease of the revenue is cause by the decrease of Administrative cost down to -₱407,993 and
Exploratory drilling fees decrease up to -27,258,722. For the Water MacroAsia Corp. increase up
to 90.01% that drives the revenue to increase together with the In-flight and other catering
increased up to 7.97% and the Ground handling and aviation increase to 41.91%. All in all, the
revenue of Macro Asia during 2018 gives a positive growth rate amounting to ₱ 655,829,173
increased from 2017income statement which indicates that the company is successful in selling
their product. Furthermore, as of 2019 the performance of the company’s income statement
increase even more. The following year (2019) there is an increase in In-flight and catering
amounting to ₱1,241,719,169. Ground Handling and aviation, water drive the company’s
Revenue to boost even more during 2019 showing good performance of the company than the
previous year.
DIRECT COSTS
The cost direct cost of MacroAsia from 2017 to 2018 increased up to 30.96% very ideal
for a company. As of 2018 Administrative cost increase to 212.85% and lead the
company’s direct cost to increase same with Water and expenses with 98.22%
percentage during 2018. MacroAsia Corp. decrease ₱ 13,767,405 or about -50.18%
and affect the performance of the company. As of 2019 the direct cost increase over
85.27% or about ₱524,737,902 a positive outcome from the company driven by the
increase of Ground handling and aviation and Exploratory drilling expense and In-flight
and other catering with 106.26%, 78.09% and 88.44% respectively. Direct cost must be
greater than the value of revenue to gain a positive result in the gross profit. Comparing
the data of revenue and direct cost of MacroAsia Corp. the chart below indicates that
the company has a great inflating outcome.

GROSS PROFIT
Proving the data above our analysis with regards to the Gross Profit of MacroAsia
Corp. as of 2018 the company is able to increase their gross profit from 2017 up to
5.26%. as expected if the cost of goods sold is bigger than the revenue a company will
increase its gross profit. The data illustrate the decrease of Exploratory Expense up to
-50.18% during 2018. An increase of value in administrative cost, water related
expenses to 212.85% and 98% respectively contribute to the increase of the gross
profit. As of 2019 the performances of MacroAsia show a huge change in their gross
profit wherein they are able to achieve a 63.43% increase in their gross profit. Cost of
goods sold during 2019 increased to 85.27% from the 30.96% of cost of goods sold
during 2018. Over all the company’s performance is continuously increasing and
proving that they are financially stable and are able to increase their performance each
year.
NET INCOME
Based on the table above from the income statement of the company we can see that the
company maintain a balance with positive net income. The result indicates that the company is
spending its money very reasonable where it maintains a balance between Revenue and its
Expenses and the shows a great potential for sustainable net income and profitability. The
company show an increase of 1.87% of net income from 2017 and 9.94 as of 2019.
Over all interpretation of horizontal analysis base on income statement

The growth rate of Macro Asia from 2017-2019 is continuously increasing from its
Revenue, Direct Cost, Gross Profit and Net Income. The chart above indicates that the
company is financially stable to pay off its debt and sustain all the needs within the
company with successful operation.

b. Vertical Analysis

VERTICAL ANALYSIS
Dec-31 Dec-31 Jan-01
2018 2017
Percentag Percentag
2019 (As restated (As restated
e Notes 2 and10) e Notes 2 ) Percentage

ASSETS
Current Assets
Cash and cash
equivalents (Notes 5, 1,219,639,428 675,196,833 913,191,924
18, 22 and 23) 9.77% 7.06% 11.66%
Receivables and
contract assets (Notes 1,925,742,769 900,423,623 697,822,309
6, 15, 18 and 23) 15.42% 9.42% 8.91%
Inventories (Note 7) 105,978,871 0.85% 88,774,310 0.93% 79,120,917 1.01%
Input taxes and other
current assets (Note 8) 348,491,609 2.79% 188,870,957 1.98% 136,891,276 1.75%
Total Current Asset 3,599,852,677 28.83% 1,853,265,723 19.38% 1,827,026,426 23.34%
Noncurrent Assets
Investments in
3,087,533,060 2,285,668,180 1,825,414,378
associates (Note 9) 24.72% 23.90% 23.31%
Property, plant and
2,561,076,769 2,065,540,597 1,145,108,621
equipment (Note 12) 20.51% 21.60% 14.63%
Net investment in lease
1,171,844,192 1,169,089,704 1,167,217,957
(Note 28) 9.38% 12.23% 14.91%
Right-of-use assets
499,566,989 533,951,574 507,187,809
(Note 28) 4.00% 5.58% 6.48%
Investment property
143,852,303 143,852,303 143,852,303
(Note 13) 1.15% 1.50% 1.84%
Service concession
424,608,123 429,702,669 402,916,926
right (Note 14) 3.40% 4.49% 5.15%
Intangible assets and
goodwill (Notes 10 and 302,112,383 273,394,445 239,500,593
14) 2.42% 2.86% 3.06%
Input taxes - net (Note
262,173,286 236,403,791 138,621,708
8) 2.10% 2.47% 1.77%
Deferred income tax
assets - net (Notes 10 51,897,998 25,331,291 22,653,073
and 25) 0.42% 0.26% 0.29%
Other noncurrent assets
(Notes 15, 18, 21 and 383,451,244 546,492,575 410,023,630
28) 3.07% 5.71% 5.24%
Total Noncurrent
Assets 8,888,116,347 71.17% 7,709,427,129 80.62% 6,002,496,998 76.66%
12,487,969,02
TOTAL ASSETS 4 100.00% 9,562,692,852 100.00% 7,829,523,424 100.00%

Current Liabilities
Notes payable (Notes
575,000,000 348,450,000 207,700,866
16, 18, 22 and 23) 4.60% 3.64% 2.65%
Accounts payable and
accrued liabilities(Notes 1,750,913,920 868,237,174 643,391,773
17, 18, 23 and 28) 14.02% 9.08% 8.22%
Income tax payable 14,004,966 0.11% 16,855,640 0.18% 8,172,218 0.10%
Dividends payable
35,928,020 21,234,024 180,660,640
(Note 27) 0.29% 0.22% 2.31%
Current portion of long
- term debts (Notes 16, 482,536,067 77,009,744 434,634,202
18, 22, and 23) 3.86% 0.81% 5.55%
Current portion of
lease liabilities (Note 24,688,033
28) 0.20% 22,479,958 0.24% 21,355,961 0.27%
Total Current 1,495,915,66
Liabilities 2,883,071,006 23.09% 1,354,266,540 14.16% 0 19.11%
Noncurrent
Liabilities
Long-term debts - net
of current portion
784,399,498 676,516,177 77,975,743
(Notes 16, 18, 22 and
23) 6.28% 7.07% 1.00%
Lease liabilities - net of
current portion (Note 1,698,736,101 1,721,063,375 1,678,653,506
28) 13.60% 18.00% 21.44%
Accrued retirement and
other employee
93,089,694 29,053,471 28,974,452
benefits payable (Note
21) 0.75% 0.30% 0.37%
Deferred income tax
liabilities - net (Notes 142,800,411 138,610,450 125,193,265
10, 15 and 25) 1.14% 1.45% 1.60%
Other noncurrent
48,029,160 44,795,967 53,849,644
liabilities (Note 18) 0.38% 0.47% 0.69%
Total Noncurrent 1,964,646,61
Liabilities 2,767,054,864 22.16% 2,610,039,440 27.29% 0 25.09%
Total Liabilities 5,650,125,870 45.24% 3,964,305,980 41.46% 3,460,562,270 44.20%
Equity attributable to
equity holders of the
Company
Capital stock – P 1 par
1,618,146,293 1,618,146,293 1,250,000,000
value (Note 27) 12.96% 16.92% 15.97%
Additional paid-in
281,437,118 281,437,118 281,437,118
capital 2.25% 2.94% 3.59%
Other reserves (Note
1,030,075,272 143,299,677 143,299,677
27) 8.25% 1.50% 1.83%
Other components of
equity (Notes 9, 15 and -159,952,483 98,146,690 -98,821,397
21) -1.28% 1.03% -1.26%
Retained earnings
4,081,275,526 3,270,479,831 2,587,383,549
(Note 27) 32.68% 34.20% 33.05%
Treasury shares (Note
-426,826,835 -176,215,402
27) -3.42% -1.84% -113,676,300 -1.45%
6,424,154,891 51.44% 5,235,294,207 54.75% 4,049,622,647 51.72%
Non-controlling
413,688,263 363,092,665 319,338,507
interests (note 11) 3.31% 3.80% 4.08%
Total Equity 6,837,843,154 54.76% 5,598,386,872 58.54% 4,368,961,154 55.80%
TOTAL
LIABILITIES AND 12,487,969,024 9,562,692,852 7,829,523,424
EQUITY 100.00% 100.00% 100.00%
The vertical analysis of the balance sheet shows the performance of the entity; use it to
compare previous reports that can be useful in making economic decision. Vertical
analysis is the presentation of the difference between two or more different accounting
periods, it shows the percentage base on the total Asset and the total Liability and
Owners equity. The interpretation below shows and explains about the percentage of
different accounts based on the Total Asset and Total Liability and owner’s equity. To
avoid confusion with regards to the interpretation below, the “decrease” and “increase”
of percentage stated below is based on the balance or total amout of the elements of
balance sheet; the Asset, Liability and Equity, and then compared from the percentage
of same account of the previous year.
The current asset of the entity decreases by 3.96% of the total assets compare to the
year 2017. This is somehow cause by the big difference of cash and cash equivalent
from the 2 consecutive years (2017-2018) by which the balance decreased by 4.6% of
the total asset from previous year, and also caused by some small difference of other
factors. On the following year (2019) the total current asset increased by 9.45% of the
total asset from the presiding year (2018) and increased by 5.49% of the total asset
from the previous year (2017). This is somehow caused by accounts receivable and
contract assets by which increase by 6% of the total asset, cash and cash equivalents
which increased by 2.71% of the total asset from the presiding year (2018).
The total non-current asset of the entity was then increased by 3.96% of the total asset
due to the increase in PPE and other factors affecting it. The PPE increased by 6.97%
of the total asset from the previous year 2017. On the following year 2019, the balance
of non-current asset decreased to 71.17% from 80.62 from the previous year 2018, with
a deference of 9.45%.
The Chart below shows the decrease and increase of the current asset (blue), and
shows the increase and decrease of the non-current asset (red).

On the total equity and Liability of the entity is that total current liability decreases from 2017 to
2018 by 4.95%. This is caused by the decrease in dividends payable and decrease in current
portion of long term debts. So this means that a large portion of these liabilities has been paid off
on the previous year. On 2019 the current liability increased by 8.93% from the year 2018. This
is because of some factors affecting the balance, the entity on this period acquired more
obligations such as Account Receivable and accrued expense, by which increased by 4.94% from
the previous year 2018, and also caused by the increase in amount of payable for current portion
of the long term obligation, which increased by 3.05% from the previous year.
For the total non-current liabilities the total balance was increased by 2.2% from the
previous year (2017) this is caused by factors that affects the balance of non-current
liability like the increase of the balance long term debts of the current portion by 7.07%
from the previous year 2017. And on 2019 there is a decrease in the balance of non-
current liability by 5.13% due to the changes of balance of the factors affecting
noncurrent liability, such that the lease liability net of current portion was decreased by
4.4 %.
The chart below shows the changes of the total current and non-current liability for the
three consecutive periods (2017-2019).
The overall interpretation with regards to liability is that, there is a decrease and
increase of the balance of the total liability.

The total equity of the entity increase in 2018 and decrease 2019, the changes is due to
the changes of the balances of accounts affecting the balance of the total Equity.
The chart below shows the following changes in three accounting periods
CONSOLIDATED STATEMENTS OF INCOME
Years Ended
December 31
2018 (As
2017 ( As
2019 restated, Notes 2
Percentage Percentage restated, Note 2) Percentage
and 10)
REVENUE ( Note
19)
In-flight and other
2,905,490,152 47.11% 1,663,770,983 48.55% 1,541,000,353 55.62%
catering (Note 18)
Ground handling and
2,869,563,325 46.52% 1,463,947,551 42.72% 1,031,617,643 37.23%
aviation (Note 18)
Water 347,597,854 5.64% 271,043,164 7.91% 142,646,814 5.15%
Administrative (Note
29,742,058 0.48% 27,857,712 0.81% 28,265,705 1.02%
18)
Exploratory drilling
15,437,718 0.25% - - 27,259,722 0.98%
fees (Note 28)
6,167,831,107 100.00% 3,426,619,410 100.00% 2,770,790,237 100.00%
DIRECT COSTS
(Notes 19 and 28)
In-flight and other
2,077,705,460 33.69% 1,102,589,553 32.18% 1,006,099,235 36.31%
catering
Ground handling and
2,424,663,739 39.31% 1,175,549,990 34.31% 807,477,254 29.14%
aviation
Water related
245,470,437 3.98% 246,621,272 7.20% 124,415,505 4.49%
expenses (Note 10)
Administrative 43,681,283 0.71% 60,958,179 1.78% 19,484,610 0.70%
Exploratory drilling
24,338,456 0.39% 13,666,586 0.40% 27,433,991 0.99%
expense
4,815,859,375 78.08% 2,599,385,580 75.86% 1,984,910,595 71.64%
GROSS PROFIT 1,351,971,732 21.92% 827,233,830 24.14% 785,879,642 28.36%
SHARE IN NET
EARNINGS OF 1,077,260,403 1,070,014,588 978,508,908
ASSOCIATES (Note 9) 17.47% 31.23% 35.32%
2,429,232,135 39.39% 1,897,248,418 55.37% 1,764,388,550 63.68%
OPERATING
EXPENSES (Note 1,038,520,689 710,712,348 601,428,734
20) 16.84% 20.74% 21.71%
1,390,711,446 22.55% 1,186,536,070 34.63% 1,162,959,816 41.97%
OTHER INCOME
(CHARGES) ( Note
22)
Interest income
(Notes 5, 15, 18, and 11,775,315 11,076,601 8,482,346
28) 0.19% 0.32% 0.31%
Financing charges
-88,377,257 -1.43% -51,353,800 -1.50% -33,153,279 -1.20%
(Notes 16, 18 and 28)
Foreign exchange
17,452,614 0.28% 27,414,886 0.80% 3,879,132 0.14%
gain - net (Note 22)
Other income – net 53,805,137 0.87% 29,766,123 0.87% 40,408,759 1.46%
-5,344,191 -0.09% 16,903,810 0.49% 19,616,958 0.71%
INCOME BEFORE
INCOME TAX 1,385,367,255 22.46% 1,203,439,880 35.12% 1,182,576,774 42.68%
PROVISION FOR
INCOME TAX
( Note 25)
Current 193,978,703 3.15% 122,041,967 3.56% 118,556,863 4.28%
Deferred -2,637,521 -0.04% -4,702,321 -0.14% -2,133,831 -0.08%
191,341,182 3.10% 117,339,646 3.42% 116,423,032 4.20%
NET INCOME 1,194,026,073 19.36% 1,086,100,234 31.70% 1,066,153,742 38.48%
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
2019 Percentage 2018 (As restated, Percentage 2017 ( As restated, Percentage

Notes 2 and 10) Note 2)
31.70
NET INCOME 1,194,026,073 1,086,100,234 1,066,153,742
19.36% % 38.48%
OTHER COMPREHENSIVE
INCOME (LOSS) – Net
Other comprehensive income (loss)
to be reclassified to profit or loss in
subsequent periods .
Changes in fair value of debt
− -2,092,938 -0.06% −
securities held at FVTOCI (Note 15)
Cumulative unrealized loss on fair
value changes on debt securities − 6,846,940 −
recycled to profit or loss (Note 15) 0.20%
Changes in fair value of AFS
− − 2,311,498 0.08%
investments (Note 15)
Net foreign currency translation
-100,669,833 -1.63% 106,010,813 3.09% -621,060 -0.02%
adjustments (Note 9)
Other comprehensive income
(loss) not to be reclassified to profit .
or loss in subsequent periods:
Changes in fair value of debt
9,350,000 0.15% 17,000,000 0.50% −
securities held at FVTOCI (Note 15)
Remeasurement gains (losses) on
defined benefit plans, net of tax effect -58,117,549 9,012,108 2,703,451
(Note 21) -0.94% 0.26% 0.10%
Share in remeasurement gains
(losses) on defined benefit plans of -112,207,996 60,508,402 -40,265,714
associates (Note 9) -1.82% 1.77% -1.45%
-261,645,378 -4.24% 197,285,325 5.76% -35,871,825 -1.29%
TOTAL COMPREHENSIVE 37.45
932,380,695 1,283,385,559 1,030,281,917
INCOME 15.12% % 37.18%
Other comprehensive income (loss) attributable to: 0.00% 0.00%
Equity holders of the
-258,099,173 -4.18% 196,968,087 5.75% -36,539,304 -1.32%
Company
Non-controlling interests (Note 11) -3,546,205 -0.06% 317,238 0.01% 667,479 0.02%
-
261,645,37 197,285,325
8 -4.24% 5.76% 35,871,825 1.29%
Total comprehensive income attributable to:
Equity holders of the 36.43
870,966,841 1,248,210,662 986,182,335
Company 14.12% % 35.59%
Non – controlling interest (Note 11) 61,413,854 1.00% 35,174,897 1.03% 44,099,582 1.59%
932,380,69 37.45
1,283,385,559
5 15.12% % 1,030,281,917 37.18%
Direct Cost
For the year 2017, the Total amount of direct cost is 71.64% of the total revenue. The
In-flight and other catering which is part of the direct cost is 36.31% and Ground
handling and aviation is 29.14% of the total revenue. On 2018 the total direct cost
increase to 75.86% compared to last year balance, it increase by 4.22% of the total
revenue. On this year, the total balance of the Ground handling and aviation was
increased to 34.31%. While the total amount of In-flight and other catering had
decreased, from 36.31 to 32.18%. On the following year (2019) the cost of in-flight and
other catering increases by 1.51 of the total revenue, the ground handling aviation
increases its percentage from 34.31% to 39.31% with a difference of 5% of the total
sales. The chart below shows the increase of total direct cost from 2017-2019. It shows
that cost of entity’s operation is increasing.
Gross Profit
The gross profit for the year 2017 is 28.36% of the total revenue. On the next year the
total balance was decreased by 4.22% of the total revenue. On the year 2019, the
amount balance was 21.92% of total revenue, much lower than the previous years.
The chart above shows the decrease of gross profit, from 2017-2018.
SHARE IN NET EARNINGS OF ASSOCIATES
The share in net earnings of associates also decreases from 2017, 2018 and 2019,
which have the rate of 35.32%, 31.23% and 17.47% respectively.
Operating Expense
During 2017, the total amount of operating expense is 21.71%. On the following year
(218) the balance decreases by .97% of the total revenue. On the next year (2019) the
expense decreases to 16.84%, of the total asset. The chart below shows the changes in
the amount of the operating expense.

Net income
The net income for 2017 is 38.48% of the Net Revenue of the year. And on 2018 the net
income decreases to 31.70% of the total net revenue. On the following year (2019) the
net income decreases by 12.34% of the net sales. The chart below shows that net
balance of net income is decreasing.
Total Comprehensive Income
The total balance of comprehensive of the year 2017 is 37.18% of the total sales. On
2018 there is an increase in total balance of Comprehensive income, which has the rate
of 37.45% of the total net sales; it is a little bit higher compare to the past year (2017).
On 2019 the balance decreases by 22.33% of the total net sale. The chart below shows
the changes of total Comprehensive Income for the past three years. The chart below
shows the changes of total Comprehensive Income for the past three years.
Overall interpretation of the Vertical analysis of income statement
From 2017- 2019 the total cost of the entity operation is increasing while their Gross
profit, Net income is decreasing. The total operating expenses of entity is decreasing
while the net comprehensive have increase on 2018 and decrease on 2019.
c. Ratio Analysis
i. Liquidity
Current ratio
YEAR
2019 2018 2017
P3,599,852,677 P1,853,265,723 P1,827,026,426

P2,883,071,006 P1,354,266,540 P1,495,915,660
Current Assets
Current ratio = Current Liabilities = 1.25 times = 1.37 times = 1.22 times
= 1.25 : 1.00 = 1.37 : 1.00 = 1.22 : 1.00
From 2017, the current ratio of 2018 increases which can cover current liabilities
1.37 times unlike 2017. But in 2019, the current ratio dropped compared to the
preceding year. Despite of the company being more liquid in 2018, it is still capable in
paying their short – term debts.
Quick Assets
YEAR
2019 2018 2017
Quick or Acid test ratio
Cash + Marketable P3,493,873,806 P1,764,491,412 P1,747,905,509
Securities + Trade P2,883,071,006 P1,354,266,540 P1,495,915,660
Quick Assets = Receivables, net
Current Liabilities
= 1.21 times = 1.30 times = 1.17 times
= 1.21 : 1.00 = 1.30 : 1.00 = 1.17 : 1.00

Just like in the current ratio, there is an increasing run from 2017 to 2018. Then
there is a sudden decrease in the company’s quick ratio which indicates deterioration
between year 2019 and 2018. It is due to significant downing of quick assets and the
rise of short – term debts. However, the company has been liquidate in paying short –
term debts.
Cash Flow Liquidity Ratio
YEAR
2019 2018 2017
P1,114,602,030 P777,902,898 P1,150,850,412

Cash + Marketable P2,883,071,006 P1,354,266,540 P1,495,915,660
Securities + Cash
Cash Flow flow from Operating = 0.39 times = 0.57 times = 0.77 times
Liquidity ratio = Activities8…
Current Liabilities
= 0.39 : 1.00 = 0.57 : 1.00 = 0.77 : 1.00
The company experienced deterioration in their generation of cash. By 2019, the
Quick Assets and Cash Flows dropped and is not sufficient to cover up short term debts
due to the rise of the latter.
Working Capital to Total Assets
YEAR
2019 2018 2017
Current Assets – P716,781,671 P498,999,183 P331,110,766

Working Capital P3,599,852,677 P1,853,265,723 P1,827,026,426
to total assets = Current Liabilities
Total Assets = 19.9% = 26.9 % = 18.1%
= 0.20 : 1.00 = 0.27 : 1.00 = 0.18 : 1.00
Same with the cash flow, there is a drop in the working capital as there is a rise
in its long term assets. However, it is a good sign that its current assets have higher
value returns than of current liabilities. But, the drop of year 2019 compared to 2018
indicates that the aforementioned year has a decrease in its working capital.
ii. Asset Management
Trade Receivable Turnover

Asset Management YEAR
Trade Receivable Turnover 2019 2018 2017
Net Sales P 6,167,831,107 P 3,426,619,410 P 2,770,790,237

Average Trade Receivable P1,174,662,900.33 P 799,122,966 P 697,822,309

= 5.25 : 1:00 = 4.29 : 1:00 = 3.97 : 1:00
During the year 2017, MacroAsia Corporation converted trade Receivable into
cash 3.97 times while in 2018, the corporation converted trade Receivable into cash
4.29 times higher than 3.97 times in 2017. In the year 2019, the MacroAsia Corporation
converted trade Receivable into cash 5.25 times. The turnover of trade Receivable has
improved from 2017 to 2019. This implies that the company has improved their
collection during this year.
Average Collection Period

Average Collection Period 2019 2018 2017
365 365 365 365

Trade Receivable Turnover 5.25 4.29 3.87
= 69.52 or 70 days = 85.08 or 85 days =91.94 or 92 days

The ratio above shows the company’s average number of days in converting
receivables into cash, in 2017 it indicates that the company collected its accounts in 92
days on average, while in 2018 the average days in collecting the accounts is 85 days.
During 2019 the collection of account is 70 days on average. This implies that the
company’s collection of accounts has improved their collection and fast this year.
Fixed Asset Turnover

Fixed Asset Turnover 2019 2018 2017
Net Sales P 6,167,831,107 P 3,426,619,410 P 2,770,790,237

P 2,561,076,769 P 2,065,540,597 P 1,145,108,621
Average Net Property,
Plant and Equipment = 2.41 times = 1.66 times = 2.42 times
=2.41 : 1:00 = 1.66 : 1:00 = 2.41 : 1:00
MacroAsia Corporation has a fixed Asset of 2.42 times in 2017, also 1.66 times
in 2018 which is lesser than 2.42 times in 2017. In 2019, the company has a fixed Asset
of 2.42 times increase compare to the 1.66 times in 2018. The ratio shows that this year
is improved from year 2018 which decreases. This implies that the company is effective
in generating net sales.
Total Asset Turnover

Total Asset Turnover 2019 2018 2017
Net Sales P 6,167,831,107 P 3,426,619,410 P 2,770,790,237

P 9,960,061,766.66 P 8,696,103,138 P 7,829,523,424
Average Total Assets
MacroAsia Corporation has total asset turnover of 0.35 times in 2017, 0.39 times
in 2018 and 0.62 times in 2019. From the ratio of th year 2017 to 2018, the company
increases 0.04 and by 2019 it increases about 0.23 and shows effectiveness in
generating sales and earn more profit.

iii. Debt Management
Debt Equity Ration
2017 2018
Total Liabilities = 3,460,562,270 Total Liabilities = 1,354,266,540
Total equity = 4,368,961,154 Total equity = 5,598,386,872
3,460,562,270 = 0.79 or 79% = 0.24 or 24%
1,354,266,440
4,368,961,154
5,598,386,872
2019
Total Liabilities = 5,650,125,870

Total equity = 6,837,843,154
5,650,125,870 = 0.83 or 83%
6,837,843,154
MACROASIA CORPORATION DEBT RATIO (Annual)

83%
79%
24%
0%
2017 2018 2019
The chart above indicates the performance of Debt Equity Ration of MacroAsia
Corporation of the following three consecutive years from 2017-2019. The data shows
79% during 2017 and then decline to 24% as of 2018 and increase during 2019 to 83%.
The data indicates that MacroAsia Corporation is a company that is more reliant on
borrowings. The higher the ratio was, the greater risk for the company. However,
comparing the ratio from 2017-2019 The ratios’ is 2:1 which represent a bigger debt that
can result in volatile earnings due to interest expense and increased vulnerability to
business downturns.
Debt Ratio
2017 2018
Total Liabilities = 3,460,562,270 Total Liabilities = 1,354,266,540
Total Asset = 7,829,523,424 Total Asset = 9,562,692,852
3,460,562,270 = 0.44 or 44% 1,354,266,440 = 0.14 or 14%
7,829,523,424 9,562,692,852
2019
Total Liabilities = 5,650,125,870
Total Asset = 12,487,969,024
5,650,125,870 = 0.45 or 45%
12,487,969,024
The chart above illustrates the Debt Ratio of MacroAsia Corporation as of 2017-
2019.the ratios of the three consecutive years are remarkably different, with 44% during
2017 and declines to 14% during 2018 but improve during 2019 to 45%. Accordingly,
from pure risk perspective, debt ratios of 0.4 or lower are consider better
(https://www.investopedia.com/terms/d/debratio.asp) Macroasia Corporation
performance clearly shows that they are cable of paying debts, interest payment and
asset are sufficient to meet its obligations. Thus, it indicates a long term financial
sustainability for the business.

Equity Ratio
2017 2018
Total equity = 4,368,961,154 Total equity = 5,598,386,872
4,368,961,154 = 0.56 or 56% 5,598,386,872 = 0.59 or 59%
7,829,523,424 9,562,692,852
2019
Total equity = 6,837,843,154
Total Asset = 12,487,969,024
683,7843,154 = 0.55 or 55%
12,487,969,024
The data above represents the Equity Ratio of MacroAsia Corporation as of
2017-2019. Three consecutive years shows that the said company is a conservative
company. A conservative company’s equity ratio is higher than its debt ratio -- meaning,
the business makes use of more of equity and less of debt in its funding
(https://www.accountingverse.com/managerial-accounting/fs-analysis/equity-ratio.html).
The company ratio ranges 50% and above each year that provides a higher level of
security to the creditors as it shows that the company is not that risky to deal and they
can lend funds thinking that the company will be able to easily pay off its debt.
FIX ASSET TO LONG TERM LIABILITIES
Formula for fixed asset: Property, plant and equipment +Intangible asset and Goodwill-
Depreciation and amortization
¿ ASSETS (net )
TOTAL LONGTERM LIABILITIES
2017 2018 2019

Intangible assets and goodwill (Notes 10 P239,500,593 P273,394,445 P302,112,383
and 14)
Property, plant and equipment (Note 12) P1,145,108,62 P2,065,540,59 P2,561,076,769
1 7
Depreciation and amortization P183,552,507 P212,137,508 P268,894,865
2017 2018
Fix Asset = 1,201,056,712 Fix Asset = 2,126,797,534
Long term liabilities = 1,964,646,610 Long term liabilities = 2,610,039,440
1,201,056,712 = 0.61 or 61% 2,126,797,534 = 0.81 or 81%
1,964,646,610 2,610,039,440
2019
Fix Asset = 2,863,189,152
Long term liabilities = 2,767,054,864
2,863,189,152
= 1.03 or 103%
2,767,054,864
The data above data shows the Equity Ratio of MacroAsia Corporation for three
consecutive years from 2017-2019. The data above illustrates that the progress of
MacroAsia starting 2017 with 61%, 81% on 2018 and major increase during 2019 with
103%. The ratio of the said company is an ideal one and indicates that the long-term
liabilities can be covered with company's tangible fixed assets.
FIXED ASSETS TO EQUITY

¿ ASSETS (net )
TOTAL EQUITY
2017 2018
Fix Asset = 1,201,056,712 Fix Asset = 2,126,797,534
Total equity = 5,598,386,872
Total equity = 4,368,961,154
1,201,056,712 = 0.27 or 27% 2,126,797,534
= 0.38 or 38%
4,368,961,154 5,598,386,872
2019
Fix Asset = 2,863,189,152
Total equity = 6,837,843,154
2,863,189,152
= 0.42 or 42%
6,837,843,154
The illustration above represents the Fix Asset to Equity Ratio of the MacroAsia
Corporation as of 2017-2019. The data above shows a positive performance of the
company with 27% during 2017, 38% during 2018 and increased to 42% during
2019.the data determines that MacroAsia Corporation company's fixed assets are worth
more than the amount of money that investors have sunk into it which means that the
company is financially healthy.

FIXED ASSETS TO TOTAL ASSETS
¿ ASSETS (net )
TOTAL ASSET
2017 2018
Fix Asset =1,201,056,712 Fix Asset = 2,126,797,534
1,201,056,712= 0.15 or 15% 2,126,797,534 = 0.22 or 22%

7,829,523,424 9,562,692,852
2019
Fix Asset = 2,863,189,152
Total Asset = 12,487,969,024
2,863,189,152 = 0.23 or 23%
12,487,969,024
The chart illustrates the Fixed Asset to Total Asset Ration of the MacroAsia
Corporation with 15% during 2017, 22% on 2018 and lastly 23% during 2019. The data
shows the continuous progress of the company. The performance of the company
shows that they have an efficient medium in managing fixed asset investment.
iv. Profitability
Gross Profit Margin
2019 2018 2017

P1,351,971732 P827,233,830 P1,984,910,816
P6,167,831,107 P3,426,619,410 P2,770,790,237
= 21.92% = 24.14% = 71.97%
MacroAsia Corporation profit margin for 2017, 2018, and 2019 had not reach out
to increase it rate by each year. This will be considered as a decrease of profit in
statement. MAC had losses 47.5% of profit margin happens in the year 2017-2018.
However, from 2018-2019 indicates that the corporation was able to cope up but still
losses few amount in rate.
Operating Profit Margin
2019 2018 2017

P1,390,711,446 P1,186,560,070 P1,162,959,816
P6,167,831,107 P3,426,619,410 P2,770,790,237
= 22.55% = 34.63% = 41.97%
MacroAsia Corporation haven’t improved instead continue to decrease slightly. It
indicates poor ability of the corporation to control its operating expenses.
Net Profit Margin
2019 2018 2017

P1,194,026,073 P1,086,100,234 P1,066,153,742
P6,167,831,107 P3,426,619,410 P2,770,790,237
= 19.36% = 31.69% = 38.58%
MacroAsia Corporations, net profit margin had been continuously decreased in
2019. However, the marginal net profit over three years had decreased each year.
Cash Flow Margin
2019 2018 2017

P105,037,398 P102,706,065 P237,658,488
P6,167,831,107 P3,426,619,410 P2,770,790,237
= (1.70%) = 3% = 8.58%
Macroasia Corporation marginal cash flow indicates poor ability of the
corporation to sales to cash or generation of Cash. The performance of 2017-2018
represents fall down of generation of cashes same as in 2019 which had a negative
cash flow margin.
Return on Investments on Assets
2019 2018 2017

P1,194,026,073 P1,086,100,234 P1,066,153,142
1.103533094 ͯ ¹º P8,696,108,138 P7,829,523,424
= 1.10% = 12.59% = 13.61%
The chart above illustrates that the return of investment on assets had decrease
by 1.02% on 2017-2018. As you can see at the year 2019, there is a sudden great fall of
rate by 11.49% from 12.59% to 1.10% in the year end of 2018-2019.
Return in Equity
2019 2018 2017

P1,194,026,073 P1,086,100,234 P1,066,153,142
P6,218,115,010 P4,983,674,013 P4,368,961,154
= 19.20% = 21.79% = 24.40%
The chart above illustrates that the return on Equity. As you can see, the
decreasing flow of rate had not run for a huge amount of loss. Thus so, the corporation
can possibly act to solve and sustain what’s loss or gain.
Financial Leverage Index
2019 2018 2017

19.20% 21.79% 24.90%
1.10% 12.59% 13.61%
= 17.45 = 1.73 = 1.79
MacroAsia Corporations financial leverage index of 17.45, 1.73, and 1.79 for the
three consecutive years indicates an inflation of success in finances. The corporation
generated sufficient operating returns to more than enough to cover the interest
payment on borrowed funds.
v. Market Book Ratios
YEAR
2019 2018 2017
P1,618,146,293 P1,618,146,293 P1,250,000,000

Market Capitalization P6,837,843,154 P5,598,386,872 P4,368,961,154
Book Value
= 0.24 : 1.00 = 0.29 : 1.00 = 0.29 : 1.00
In the year 2017 and 2018, it has a market value of 0.29 and suddenly falls down
by 0.24 in the year 2019. The ratio means that for every stock, the price is less than one
peso. It implies that the stock can be buy at a lower price relative to the value of its
asset.

MacroAsia Corporation

Uploaded by

Document Information

Original Description:

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

MacroAsia Corporation

Uploaded by

Copyright:

Available Formats

JOSE RIZAL MEMORIAL STATE UNIVERSITY

COLLEGE OF BUSINESS AND ACCOUNTANCY

A FINANCIAL STATEMENT ANALYSIS OF

In partial fulfilment of the requirements for

Anghag, Jerry Lou C.

1ST SEMESTER, AY 2020-2021

Cheating on exams or projects, plagiarizing or any other form of academic

As a student of the College of Business and Accountancy at JRMSU, I solemnly

By signing this pledge, I promise to adhere to exam requirements and maintain

Anghag, Jerry Lou C. Bacalso, April L. Barceliano, Lyza Jean

Betonio, Gwyneth O. Gimoros, Maryven T. Indoc, Charmae D.

Lagarnia, Lady Elah C. Licaros, Adelyn B. Macamay, Cristina Mae B.

Polinar, Lea Mae D. Sagang, Cherry May S.

this learning opportunity.

trust and power.

MacroAsia Corporation (MAC) is located in PNB-Allied Bank, 6754 Ayala Ave,

and Enterprises Industry one of the leading providers of aviation-related support

services in the Philippines. The company operates a diverse portfolio of aviation-related

business and participates in a variety of aviation sector activities including catering,

Such passion and drive shall be anchored on a committed team of professionals

who shall embody a strong stakeholder-focus, integrity, strategic thinking, empowering

leadership, continual development and commitment to national growth and social

responsibility. With the mission to increase shareholder value, ensure long-term

profitability, develop world-class competencies, provide career opportunities and create

synergies as we build mutually beneficial partnerships, alliances or joint ventures with

those who share our philosophy and values.

six months of year 2020.

Mineral and Industrial Corporation. It started as a mining firm located in Brooke’s

purpose from being an engaging business of geological exploration and

Holdings Corporation. However, on November 6, 1995, the SEC further approved

another change of its corporate name to what is now known as “MacroAsia

In June 1996, the company incorporated two wholly-owned subsidiaries namely:

MacroAsia Properties Development Corporation (MAPDC) as a developer and

(MCIA). It started commercial operations in October 1996 as a licensed non-

later, another subsidiary was incorporated to service the ground handling

requirements of the commercial passengers, cargo and military aircrafts. Through

company in the Philippines.

Philippine aviation services provider MacroAsia Corporation, Lufthansa Technik

(MRO) services to customers worldwide. As one of the 30 affiliates and subsidiaries

Technik standard of quality, safety and reliability. On September 25, 2000,

MacroAsia Mining Corporation (MMC) a new subsidiary was incorporated to be an

institutional vehicle for providing outsourced exploration services to other mining

providing outsourced exploration of services to other mining companies.

Manila. SNV Resources Development Corporation (SNVRDC) was established to

MAPDC acquired 100% of Naic Water Supply Corporation (NAWASCOR), a water

offers various aviation related courses to airline and non-airline.

In October 2018, Airport Specialists’ Services Corporation (ASSC), a wholly

owned subsidiary of MacroAsia Corporation, had purchased 60% shares of stock

MacroAsia Corporation, SWRI is undertaking a massive business expansion and is

July 2019, AlliedKonsult Eco-Solutions Corporation (AlliedKonsult) a 51% owned by

ASSC was incorporated to engage in construction of sewage and septage treatment

handling through MASCORP and catering requirements through MacroAsia SATS

the Philippines and a renowned in-flight catering corporation globally. It aims to

flight operation in addition to value-added quality services accompanied by on-time

performance operating in Narita International Airport in Japan.

Marivic T. Moya Amador T. Sendin

Rhodel C. Esteban Emerson S. Bonoan, Jr.

Raoul S. Perez Belgium S. Tandoc

Manolito B. Supnet Nila T. Baria

MacroAsia Corporation (MAC) is a diversified hospitality service provider. The

companies to the airline customers in Manila Domestic Airport, Mactan Cebu

focused in the field of aviation-related support services and in natural resources

development, particularly in projects involving the use of water resources.