HORIZONTAL ANALYSIS

Philippine Seven Corporation and Subsidiaries

Statement of Financial Position
as of December 31, 2012

ASSETS 2012 2011 Amount Change

Percentage Change
Current Assets
Cash and cash equivalents (Notes 4, 29 and 30) -₱ 415,285,569- -₱ 394,696,749- -₱ 20,588,820- 5%
Short-term investment (Notes 4, 29 and 30) ( 10,632,115) ( 10,409,907) ( 222,208) 2%
Receivables (Notes 5, 29 and 30) ( 374,597,843) ( 239,289,287) ( 135,308,556) 57%
Inventories (Note 6) ( 726,986,563) ( 519,258,936) ( 207,727,627) 40%
Prepayments and other current assets (Note 7) ( 259,007,887) ( 161,522,138) ( 97,485,749) 60%
Total Current Assets -₱ 1,786,509,977- -₱ 1,325,177,017- -₱ 461,332,960- 35%

Noncurrent Assets
Property and equipment (Note 8) ( 2,276,921,044) ( 1,946,032,976) ( 330,888,068) 17%
Deposits (Note 9) ( 249,418,061) ( 215,964,826) ( 33,453,235) 15.5%
Deferred income tax assets - net (Note 27) ( 43,009,798) ( 40,662,817) ( 2,346,981) 6%
Goodwill and other noncurrent assets (Note 10) ( 208,489,602) ( 206,461,345) ( 2,028,257) 1%
Total Noncurrent Assets -₱ 2,777,838,505- -₱ 2,409,121,964- -₱ 368,716,541- 15%
TOTAL ASSETS -₱ 4,564,348,482- -₱ 3,734,298,981- -₱ 830,049,501- 22%

LIABILITIES AND EQUITY

Current Liabilities
Bank loans (Notes 11, 29 and 30) ( 477,777,778) ( 374,666,667) ( 103,111,111) 28%
Accounts payable and accrued expenses (Notes 12,
( 291,261,289,989)
and 30) ( 1,243,937,457) ( 17,352,532) 1%
Income tax payable ( 105,144,142) ( 73,922,196) ( 31,221,946) 42%
Other current liabilities (Notes 13 and 25) ( 541,881,392) ( 298,435,516) ( 243,445,876) 82%
Total Current Liabilities -₱ 2,386,093,301- -₱ 1,990,961,836- -₱ 395,131,465- 20%

Noncurrent Liabilities
 Deposits payable (Note 14) ( 181,901,238) ( 171,457,833) ( 10,443,405) 6.1%
Net retirement obligations (Note 24) ( 61,120,420) ( 65,192,720) ( (4,072,300) -6%
Cumulative redeemable preferred shares (Note 15) ( 6,000,000) ( 6,000,000) ( -  ) 0%
Deferred revenue - net of current portion (Note 16)
( 2,643,179) ( 4,057,482) ( (1,414,303) -35%
Total Noncurrent Liabilities -₱ 251,664,837- -₱ 246,708,035- -₱ 4,956,802- 2.0%
Total Liabilities -₱ 2,637,758,138- -₱ 2,237,669,871- -₱ 400,088,267- 18%

Equity
Common stock (Notes 17 and 31) - Php 1 per value
Authorized - 600,000,000 and 400,000,000 shares as of
December 31, 2012 and 2011, respectively
Issued - 399,325,661 and 347,329,216 shares as of
December 31, 2012 and 2011, respectively
[held by 656 and 666 equity holders in 2012
and 2011, respectively (Note 1)] ( 399,325,661) ( 347,329,216) ( 51,996,445) 15%
Additional paid-in-capital ( 293,525,037) ( 293,525,037) ( -  ) 0.0%
Retained earnings (Note 17 and 31) ( 1,233,432,997) ( 855,468,208) ( 377,964,789) 44%
Revaluation increment on land [net of deferred income tax
liability (Note 8 and 27)] ( 3,229,895)
( 3,229,895) ( -  ) 0%
-₱ 1,929,513,590-
-₱ 1,499,552,356- -₱ 429,961,234- 29%
Cost of 686,250 shares held in treasury (note 17) ( (2,923,246)
( (2,923,246) ( -  ) 0%
Total Equity -₱ 1,926,590,344-
-₱ 1,496,629,110- -₱ 429,961,234- 28.7%
TOTAL LIABILITIES AND EQUITY -₱ 4,564,348,482- -₱ 3,734,298,981- -₱ 830,049,501- 22%

Philippine Seven Corporation and Subsidiaries

Statement of Comprehensive Income
for the year ended December 31, 2012

2012 2011 Amount Change

Percentage Change
REVENUES
 Revenue from merchandise sale (Note 32) -₱ 11,713,760,468- -₱ 9,435,604,073- -₱ 2,278,156,395- 24%
Franchise revenue (Note 32) ( 683,572,827) ( 534,025,712) ( 149,547,115) 28%
Marketing income (Note 20) ( 375,768,257) ( 239,888,660) ( 135,879,597) 57%
Commission income (Note 32) ( 67,396,391) ( 37,236,539) ( 30,159,852) 81%
Rental income (Note 26) ( 45,751,718) ( 44,143,593) ( 1,608,125) 4%
Interest income (Notes 4, 9, 22 and 26) ( 5,377,093) ( 5,864,713) ( (487,620) -8%
Other income (Note 26) ( 123,025,663) ( 99,300,756) ( 23,724,907) 23.9%
-₱ 13,014,652,417- -₱ 10,396,064,046- -₱ 2,618,588,371- 25%

EXPENSES
Cost of merchandise sales (Notes 18 and 32) ( 8,523,151,274) ( 6,844,562,019) ( 1,678,589,255) 25%
General and administrative expenses (Note 19) ( 3,785,661,595) ( 3,012,177,978) ( 773,483,617) 26%
Interest expense (Notes 11, 15 and 21) ( 16,596,830) ( 16,024,647) ( 572,183) 4%
Other expenses ( 14,595,186) ( 4,806,251) ( 9,788,935) 204%
-₱ 12,340,004,885- -₱ 9,877,570,895- -₱ 2,462,433,990- 25%

INCOME BEFORE INCOME TAX ( 674,647,532) ( 518,493,151) ( 156,154,381) 30%

PROVISION FOR INCOME TAX (Note 27) ( 210,022,001) ( 162,150,162) ( 47,871,839) 30%

NET INCOME ( 464,625,531) ( 356,342,989) ( 108,282,542) 30%

OTHER COMPREHENSIVE INCOME ( -  ) ( -  )

TOTAL COMPREHENSIVE INCOME -₱ 464,625,531- -₱ 356,342,989- -₱ 108,282,542- 30%

BASIC/DILUTED EARNINGS PER SHARE (Note 28) -₱ 1.17- -₱ 0.89- -₱ 0.28- 31%

VERTICAL ANALYSIS
 Philippine Seven Corporation and Subsidiaries
Statement of Financial Position
as of December 31, 2012

ASSETS 2012 2011 2012 2011

Current Assets
Cash and cash equivalents (Notes 4, 29 and 30) -₱ 415,285,569- -₱ 394,696,749- 9% 11%
Short-term investment (Notes 4, 29 and 30) ( 10,632,115) ( 10,409,907) 0% 0%
Receivables (Notes 5, 29 and 30) ( 374,597,843) ( 239,289,287) 8% 6%
Inventories (Note 6) ( 726,986,563) ( 519,258,936) 16% 14%
Prepayments and other current assets (Note 7) ( 259,007,887) ( 161,522,138) 54% 4%
Total Current Assets -₱ 1,786,509,977- -₱ 1,325,177,017- 39% 35%

Noncurrent Assets
Property and equipment (Note 8) ( 2,276,921,044) ( 1,946,032,976) 50% 52%
Deposits (Note 9) ( 249,418,061) ( 215,964,826) 5% 6%
Deferred income tax assets - net (Note 27) ( 43,009,798) ( 40,662,817) 1% 1.1%
Goodwill and other noncurrent assets (Note 10) ( 208,489,602) ( 206,461,345) 5% 6%
Total Noncurrent Assets -₱ 2,777,838,505- -₱ 2,409,121,964- 61% 65%
TOTAL ASSETS -₱ 4,564,348,482- -₱ 3,734,298,981- 100% 100%

LIABILITIES AND EQUITY

Current Liabilities
Bank loans (Notes 11, 29 and 30) ( 477,777,778) ( 374,666,667) 10% 10%
Accounts payable and accrued expenses (Notes 12,
( 291,261,289,989)
and 30) ( 1,243,937,457) 28% 33%
Income tax payable ( 105,144,142) ( 73,922,196) 2% 2%
Other current liabilities (Notes 13 and 25) ( 541,881,392) ( 298,435,516) 12% 8%
Total Current Liabilities -₱ 2,386,093,301- -₱ 1,990,961,836- 52% 53%

Noncurrent Liabilities
Deposits payable (Note 14) ( 181,901,238) ( 171,457,833) 4% 5%
 Net retirement obligations (Note 24) ( 61,120,420) ( 65,192,720) 1% 2%
Cumulative redeemable preferred shares (Note 15) ( 6,000,000) ( 6,000,000) 0% 0%
Deferred revenue - net of current portion (Note 16)
( 2,643,179) ( 4,057,482) 0% 0%
Total Noncurrent Liabilities -₱ 251,664,837- -₱ 246,708,035- 6% 7%
Total Liabilities -₱ 2,637,758,138- -₱ 2,237,669,871- 58% 60%

Equity
Common stock (Notes 17 and 31) - Php 1 per value
Authorized - 600,000,000 and 400,000,000 shares as of
December 31, 2012 and 2011, respectively
Issued - 399,325,661 and 347,329,216 shares as of
December 31, 2012 and 2011, respectively
[held by 656 and 666 equity holders in 2012
and 2011, respectively (Note 1)] ( 399,325,661) ( 347,329,216) 9% 9%
Additional paid-in-capital ( 293,525,037) ( 293,525,037) 6% 8%
Retained earnings (Note 17 and 31) ( 1,233,432,997) ( 855,468,208) 27% 23%
Revaluation increment on land [net of deferred income tax 0% 0%
liability (Note 8 and 27)] ( 3,229,895) ( 3,229,895) 0% 0%
-₱ 1,929,513,590- -₱ 1,499,552,356- 42% 40%
Cost of 686,250 shares held in treasury (note 17) ( (2,923,246) ( (2,923,246) 0% 0%
Total Equity -₱ 1,926,590,344- -₱ 1,496,629,110- 42% 40%
TOTAL LIABILITIES AND EQUITY -₱ 4,564,348,482- -₱ 3,734,298,981- 100% 100%

Philippine Seven Corporation and Subsidiaries

Statement of Comprehensive Income
for the year ended December 31, 2012

2012 2011 2012 2011

REVENUES
Revenue from merchandise sale (Note 32) -₱ 11,713,760,468- -₱ 9,435,604,073- 100% 100%
 Franchise revenue (Note 32) ( 683,572,827) ( 534,025,712) 6% 6%
Marketing income (Note 20) ( 375,768,257) ( 239,888,660) 3% 3%
Commission income (Note 32) ( 67,396,391) ( 37,236,539) 1% 0%
Rental income (Note 26) ( 45,751,718) ( 44,143,593) 0% 0%
Interest income (Notes 4, 9, 22 and 26) ( 5,377,093) ( 5,864,713) 0% 0%
Other income (Note 26) ( 123,025,663) ( 99,300,756) 1% 1%
-₱ 13,014,652,417- -₱ 10,396,064,046- 111% 110%

EXPENSES
Cost of merchandise sales (Notes 18 and 32) ( 8,523,151,274) ( 6,844,562,019) 73% 73%
General and administrative expenses (Note 19) ( 3,785,661,595) ( 3,012,177,978) 32% 32%
Interest expense (Notes 11, 15 and 21) ( 16,596,830) ( 16,024,647) 0% 0%
Other expenses ( 14,595,186) ( 4,806,251) 0% 0%
-₱ 12,340,004,885- -₱ 9,877,570,895- 105% 105%

INCOME BEFORE INCOME TAX ( 674,647,532) ( 518,493,151) 6% 5%

PROVISION FOR INCOME TAX (Note 27) ( 210,022,001) ( 162,150,162) 2% 2%

NET INCOME ( 464,625,531) ( 356,342,989) 4% 4%

OTHER COMPREHENSIVE INCOME ( -  ) ( -  ) ( -  ) ( -  )

TOTAL COMPREHENSIVE INCOME -₱ 464,625,531- -₱ 356,342,989- 4% 4%

BASIC/DILUTED EARNINGS PER SHARE (Note 28) -₱ 1.17- -₱ 0.89- 0% 0%