AEV 17Q Q2Jun2012 (14aug2012)

COVER SHEET
C E 0 2 5 3 6
S.E.C. Registration Number
A B O I T I Z E Q U I T Y V E N T U R E S , I N C .
( Company's Full Name )
A B O I T I Z C O R P O R A T E C E N T E R
G O V . M A N U E L C U E N C O A V E .
K A S A M B A G A N , C E B U C I T Y
( Business Address: No. Street City / Town / Province )
CATHERINE R. ATAY (032) 411-1800

Contact Person Company Telephone Number
2nd Quarterly Report
1 2 3 1 1 7 - Q 0 5 2 1
Month Day FORM TYPE Month Day
Fiscal Year Annual Meeting
Secondary License Type, if Applicable
S E C
Dept. Requiring this Doc Amended Articles Number/Section
9,966 x
Total No. of Stockholders Domestic Foreign
----------------------------------------------------------------------
To be accomplished by SEC Personnel concerned
File Number LCU
Document I.D. Cashier
STAMPS
Remarks = pls. Use black ink for scanning purposes

SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-

17-Q
QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES

REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER
1. For the quarterly period ended June 30, 2012
2. Commission identification number CE02536 3. BIR Tax Identification No. 003-

003-828-
828-269-
269-V
4. Exact name of issuer as specified in its charter ABOITIZ EQUITY VENTURES, INC.
City, Philippines
5. Province, country or other jurisdiction of incorporation or organization Cebu City,
6. Industry Classification Code: (SEC Use Only)
7. Address of issuer's principal office Postal Code
Gov. Manuel A. Cuenco Avenue, Kasambagan, Cebu City, Philippines 6000

6000
8. Issuer's telephone number, including area code
(032) 231-
231-2580
9. Former name, former address and former fiscal year, if changed since last report
N.A.
10. Securities registered pursuant to Sections 8 and 12 of the Code, or Sections 4 and 8 of the RSA
Title of each Class Number of shares of common

stock outstanding and amount
of debt outstanding
Common stock, P1.00 par value 5,521,871,821
Total debt P85,854,897,000

85,854,897,000
11. Are any or all of the securities listed on a Stock Exchange?
Yes [ x ] No [ ]
If yes, state the name of such Stock Exchange and the class/es of securities listed therein:
Philippine Stock Exchange Common

12. Indicate by check mark whether the registrant:
(a) has filed all reports required to be filed by Section 17 of the Code and SRC Rule 17
thereunder or Sections 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections
26 and 141 of the Corporation Code of the Philippines, during the preceding twelve
(12) months (or for such shorter period the registrant was required to file such
reports)
Yes [ x ] No [ ]
(b) has been subject to such filing requirements for the past ninety (90) days.
Yes [ x ] No [ ]
PART I--
I--FINANCIAL
--FINANCIAL INFORMATION
Item 1. Financial Statements.

Statements.
Please refer to the financial statements and schedules attached herewith.
Item 2. Management's Discussion and Analysis of Financial Condition and Results of

Operations.
The following discussion and analysis of Aboitiz Equity Ventures, Inc.'s (AEV or the Company or the
Parent Company) consolidated financial condition and results of operations should be read in
conjunction with the consolidated financial statements and accompanying schedules and
disclosures set forth elsewhere in this report.
Top Five Key Performance Indicators
Management uses the following indicators to evaluate the performance of registrant Aboitiz Equity
Ventures, Inc. and its subsidiaries (the Company and its subsidiaries are hereinafter collectively
referred to as the Group):
1. EQUITY IN NET EARNINGS OF INVESTEES

Equity in net earnings (losses) of investees represents the group's share in the
undistributed earnings or losses of its investees for each reporting period
subsequent to acquisition of said investment, net of goodwill impairment cost, if
any. Goodwill is the difference between the purchase price of an investment and
the investor's share in the value of the net identifiable assets of investee at the
date of acquisition. Equity in net earnings (losses) of investees indicates
profitability of the investments and investees' contribution to the group's
consolidated net income.
Manner of Computation: Investee's Net Income (Loss) x Investor's % ownership -

Goodwill Impairment Cost.
2. EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

DEPRECIATION & AMORTIZATION (EBITDA)
The Company computes EBITDA as earnings before extra-ordinary items, net
finance expense, income tax provision, depreciation and amortization. It provides
management and investors with a tool for determining the ability of the group to
generate cash from operations to cover financial charges and income taxes. It is
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also a measure to evaluate the group's ability to service its debts and to finance its
capital expenditure and working capital requirements.
3. CASH FLOW GENERATED

Using the Statement of Cash Flows, management determines the sources and
usage of funds for the period and analyzes how the group manages its profit and
uses its internal and external sources of capital. This aids management in
identifying the impact on cash flow when the group's activities are in a state of
growth or decline, and in evaluating management's efforts to control the impact.
4. CURRENT RATIO
Current ratio is a measurement of liquidity, calculated by dividing total current

assets by total current liabilities. It is an indicator of the group's short-term debt
paying ability. The higher the ratio, the more liquid the group.
5. DEBT-
DEBT-TO-
TO-EQUITY RATIO
Debt-to-Equity ratio gives an indication of how leveraged the group is. It
compares assets provided by creditors to assets provided by shareholders. It is
determined by dividing total debt by stockholders' equity.
JAN-JUN 2012 JAN-JUN 2011

EQUITY IN NET EARNINGS OF INVESTEES 7,110,756 4,806,551
EBITDA 20,054,160 18,518,398
CASH FLOW GENERATED:
Net cash provided by operating activities 14,049,135 11,961,067
Net cash provided by (used in) investing
activities 809,005 (662,048)
Net cash used in financing activities (13,815,436) (8,521,995)
Net Increase in Cash & Cash Equivalents 1,042,704 2,777,024
Cash & Cash Equivalents, Beginning 29,543,492 26,097,203
Cash & Cash Equivalents, End 30,531,371 28,867,924
JUNE 30 2012 DEC 31/2011
CURRENT RATIO 2.92 2.96
DEBT-TO-EQUITY RATIO 1.12 1.12
All the key performance indicators were within management's expectation during the period under
review.
Management teams of the different businesses continued to effectively handle their respective
operating performances and financial requirements. As a result, profitability had been sustained.
This was reflected in the associates' income contributions and the Group's consolidated EBITDA
which both registered substantial growth of 48% and 8%, respectively. Higher EBITDA generated
additional funds which were used to repay debt and finance capital expenditures. Despite higher
fund usage during the current period as compared to last year, the financial position of the Group
remained strong, as indicated by healthy financial ratios at the first semester-end of 2012.
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Financial Results of Operations
For the semester ended June 30, 2012, AEV and its subsidiaries reported a consolidated net income
of P11.81 billion, a 16% YoY increase, which translated to a P2.14 earnings per share. In terms of
income contribution, power group still accounted for the lion’s share at 79%, followed by the
banking and food groups at 17% and 4% each.
The Group generated a non-recurring net gain of P508 million (versus P512 million in 1H2011),
which comprised the following: (1) P725 million share of power group's net foreign exchange gains
from the revaluation of dollar-denominated loans and placements; (2) P11 million share of AP's
gain from its associates’ preferred share redemption in 1Q2012; (3) P183 million share of a power
subsidiary's cost reimbursement to its steam supplier; and (4) P45 million share of AP's debt
prepayment fee. Sans one-off items, the Group’s core net income for the current period amounted
to P11.3 billion, up 16% YoY.
Power
Aboitiz Power Corporation (AP or AboitizPower) and its subsidiaries ended the current period with
an income contribution of P9.36 billion, a 16% increase from last year's P8.09 billion.
AP's generation group posted a 12% YoY increase in earnings contribution to AEV, from P7.77
billion to P8.71 billion, attributed to the higher average selling prices and net generation recorded
during the semester under review. As compared to 1H2011 levels, average selling prices rose by 7%
as spot market prices improved amid surge in demand for electricity due to warmer climate, and
curtailment in supply resulting from higher plant outages in the Luzon Wholesale Electricity Spot
Market (WESM). Likewise, the group’s attributable net generation grew by 10%, from 4,640 GWh
to 5,096 GWh, resulting from the 14% expansion of sales made through bilateral contracts. In
terms of capacity, the group sold, on an attributable basis, 1,532 MW, up by 13% YoY, at the back
of rising capacity sales through bilateral contracts and improved levels of ancillary services.
AP's distribution group also registered a 39% YoY rise in earnings contribution to AEV, from P781
million to P1.09 billion. Driving this growth was the 7% YoY expansion in attributable electricity
sales, from 1,814 GWh to 1,949 GWh, mainly coming from the 9% increase in the power
consumption of industrial customers, with residential and commercial sectors posting growth rates
of 6% and 4%, respectively. Higher selling prices resulting from the implementation of the rate
increase (under a Performance Based Regulation scheme) further improved the group's profit
margins.
Financial Services
Income contribution from the financial services group grew by 37%, from last year’s P1.43 billion to
P1.96 billion. Union Bank of the Philippines (UBP or UnionBank) ended the current period with an
earnings contribution of P1.76 billion, an increase of 44% YoY, while City Savings Bank, Inc.'s (CSB
or CitySavings) share in earnings was P197 million, down 6% YoY.
UBP’s 1H2012 net income was higher at P4.07 billion (vs P2.86 billion in 1H2011) principally due to
the 24% YoY increase (P5.6 billion vs P4.5 billion) in its non-interest income attributed to hefty
trading gains. This improvement was boosted by the 8% growth (P3.7 billion vs P3.4 billion) in net
interest income, attributable to the 18% drop in interest expense resulting from the decline in
average levels of high cost deposits and lower borrowings.
The 7% YoY decrease in CSB's net income, from P212 million to P198 million, was mainly due to the
decline in operating margins as the rise in operating expenses outpaced the growth in interest
income on loans and service fees.
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Food
Income contribution from Pilmico Foods Corporation (PFC or Pilmico) and its subsidiaries amounted
to P522 million, down 20% YoY. This decline was attributed to margin squeeze owing to lower
average selling prices and rising material costs which more than offset the higher sales volume
generated by the flour and feeds businesses.
Material Changes in Line Items of Registrant’s Statements of Income and Comprehensive Income
For the first semester of 2012, AEV's consolidated net income attributable to equity holders
registered a 16% growth, reaching P11.81 billion from P10.22 billion posted in the same period last
year.
Operating profit for the current period amounted to P11.79 billion, a 6% decline YoY, as the rise in
consolidated costs and expenses outpaced the increase in revenues.
Power subsidiaries reported a combined 4% YoY drop in operating margins resulting from the 26%
surge in costs and expenses which surpassed the 15% growth in revenues. Consolidated revenues
increased to P31.27 billion (vs P27.27 billion in 1H2011) substantially due to higher average selling
prices and GWh sold. For the generation subsidiaries, the expansion in revenues was due to
improvement in spot market prices and increase in contracted sales. For the distribution
subsidiaries, it was due to higher consumption by customers and better selling prices from the
implementation of the rate increase under a Performance Based Regulation scheme. Meanwhile,
consolidated costs and expenses rose to P21.47 billion (vs P17.08 billion in 1H2011) mainly due to
the increase in fuel costs of AP Renewables, Inc. (APRI), Therma Luzon, Inc. (TLI) and Therma
Marine, Inc. (TMI).
Food group posted a 16% YoY decrease in operating margins as the P 434 million increase in costs
and expenses more than cancelled out the P273 million rise in revenues. The 4% improvement in
sales (P7.56 billion vs P7.29 billion in 1H2011) was attributed to higher sales volume of the flour and
feed divisions. The 7% rise in costs (P6.74 billion vs P6.31 billion in 1H2011) was due to the
increasing costs of raw materials in the feed division and swine business.
CSB, the lone banking subsidiary, likewise registered a 14% YoY decrease in operating profit due to
the 44% spike in its operating expenses resulting from the implementation of its expansion
program and various initiatives. This increase in expenses offset the 23% expansion in revenues.
The P2.3 billion increase in the earnings contribution of associates, which more than made up for
the P690 million dip in consolidated operating profit, pulled up the Group's over all profitability.
Share in net earnings of associates grew by 48% YoY (P7.11 billion vs P4.81 billion in 1H2011) due to
the strong performance of UBP and the majority of the power associates. Bulk of the increase was
coming from the substantial income contributions of UBP, SN Aboitiz Power-Magat, Inc. (SNAP-
Magat), SN Aboitiz Power-Benguet, Inc. (SNAP-Benguet), Cebu Energy Development Corp. (CEDC),
and Visayan Electric Company (VECO). Improvement in UBP's net income was a result of higher net
interest income and trading gains. The spike in SNAP-Magat's and SNAP-Benguet's bottomlines
was due to significant rise in ancillary service revenues and power sales, respectively. Likewise, the
upsurge in the income contributions of CEDC and VECO was attributed to higher revenues as
CEDC's contracted sales increased and VECO's MWh sales expanded by 9%, complemented by
better selling rates.
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The improvement in equity earnings was partially offset by the 3% YoY increase in net interest
expense (P3.50 billion vs P3.40 billion) mainly attributable to the higher accreted interest cost on
TLI's finance lease obligation.
The increase in other income enhanced the growth in the Group's consolidated net income for the
semester in review. Other income rose by 97% substantially due to higher foreign exchange (FX)
gains (P965 million vs P274 million in 1H2011). This was the result of the restatement of the dollar-
denominated debt of the power group under a higher appreciating peso scenario as of 1st
semester-end 2012, as compared to that of June 2011. As of June 30, 2012, FX rate for the US$
stood at P42.12 to a dollar, a P1.72 decline from the P43.84 rate as of the beginning of the year.
This appreciation was higher compared to the P0.51 differential as of June 30, 2011 when FX rate
was at P43.33, reckoned from the P43.84 rate as of the start of that year.
The 12% increase in provision for income tax (P828 million vs P739 million in 1H2011) was due to
the higher taxable income of the majority of the power subsidiaries.
The 19% rise in net income attributable to minority interests was mainly due to the increase in
power group's net income, 23% of which belongs to minority shareholders.
AEV's consolidated comprehensive income attributable to equity holders correspondingly rose by

8%, from P10.19 billion in 1H2011 to P11.05 billion in 1H2012. This was attributed to the 16%
increase in consolidated net income, partially offset by higher share of an associate's valuation loss
on its available-for-sale (AFS) investments.
Changes in Registrant’s Resources, Liabilities and Shareholders Equity
Assets
Compared to year-end 2011 level, consolidated assets increased 2.5% to P206.02 billion as of June
30, 2012, due to the following:
a. Cash & Cash Equivalents increased by P988 million mainly due to the excess cash
generated from operations and dividend collections, after spending for various capital
expenditures, debt servicing and cash dividend distribution.
b. Trade and Other Receivables increased by P655 million mainly due to higher loan releases
of the banking subsidiary.
c. Other Current Assets increased by 24% (P2.76 billion vs P2.22 billion in December 2011)
mainly due to the build-up of VAT inputs by power generation subsidiaries as a result of
ongoing plant construction and rehabilitation works.
d. Investments in and Advances to Associates increased by P1.1 billion (P49.89 billion vs

P48.76 billion in December 2011) mainly due to recording of P7.11 billion share in earnings
of associates during the current period. This increase was partially reduced by the P5.06
billion cash dividends received, the P696 million share of a banking associate's valuation
loss on its AFS investments, and the P290 million proceeds from the preferred share
redemption made by certain power associates.
e. Gross of depreciation expense, the resulting P3.88 million increase in Property Plant and
Equipment was mainly due to the following: 1.) rehabilitation of geothermal power plant
and power barges; 2.) on-going construction of Davao coal plant; and 4.) various capital
expenditures of power and food groups.
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f. Investment Properties increased by 17% YoY (P401 million vs P341 million in December
2011) due to additional foreclosed properties held by CSB.
g. Deferred Income Tax Assets increased by 45% (P389 million vs P269 million in December
2011) mainly due to the corresponding tax effect on the additional impairment loss
provision recorded by certain power subsidiaries during the current period.
The above increases were tempered by the 9% YoY decline in Inventories account resulting from
lower inventory levels carried by power and food groups as of the end of 1st semester 2012.
Liabilities
Consolidated short-term bank loans decreased by 7% (P4.93 billion vs P5.3 billion in December
2011) while long-term liabilities remained flattish (P81.22 billion vs P80.74 billion in December
2011). The decline in short-term loans was mainly due to the prepayments made by power group
using internally-generated funds. The slight upward movement in long term debt was mainly due
to the P2.8 billion new loan availments made and the P1.3 billion rise in finance lease obligation
resulting from interest accretion. Said increase was substantially countered by the P3.0 billion
pretermination of AP bonds and P600 million amortization payments on existing loans.
Trade and other payables and deposit liabilities were higher by 13%, from P17.14 billion to P19.4
billion, mainly due to: a.) power group's rise in payables to suppliers as a result of ongoing plant
construction and rehabilitation works; and b.) banking subsidiary's growth in deposits.
Income tax payable inreased by 32%, from P223 million to P294 million, due to the recording of the
additional income tax due for the current period.
Deferred income tax liabilities rose by P273 million mainly due to the set up of the corresponding
income tax provision on the unrealized foreign exchange gains booked during period in review.
Equity
Equity attributable to equity holders of the parent grew by 2% from year-end 2011 level of P77.08
billion to P78.76 billion, mainly due to the P3.08 billion increase in Retained Earnings, resulting
from the P11.81 billion net income recorded during the current period, reduced by the P8.72 billion
cash dividends paid. This increase was partially offset by the recognition of the following: a.) P696
million share in a banking associate's unrealized fair valuation loss on its AFS investments; b.) P61
million share of current translation adjustments recorded by power generation associates using US
dollars as functional currency; and c.) P639 million acquisition of minority interest by AEV parent in
its additional purchase of AP shares.
Material Changes
Changes in Liquidity and Cash Reserves of Registrant
For the semester ended June 2012, the group continued to support its liquidity mainly from cash
generated from operations and dividends received from associates.
Compared to the cash inflow during the comparable period in 2011, consolidated cash generated
from operating activities in 1H2012 increased by P2.09 billion to P14.05 billion. This increase was
largely due to higher collection of trade receivables.
The current period ended up with an P809 million net cash generated from investing activities,
compared to the P662 million cash used during the comparable period last year. This was mainly
due to the increase in cash dividends received from associates.
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Net cash used in financing activities was higher at P13.82 billion, compared to P8.52 billion in
1H2011. This increase was attributed to net debt repayments made during the 1st half of 2012
versus the net debt availment last year.
For the period in review, net cash inflows surpassed cash outflows, resulting to a 3% increase in
cash and cash equivalents, from P29.54 billion as of year-end 2011 to P30.53 billion as of first
semester-end 2012.
Financial Ratios
Backed by strong operating cash inflows, liquidity was adequately preserved. Cash and cash
equivalents stood at P30.53 billion as of June 30, 2012, 3% higher than year end 2011 level, keeping
current ratio at a high level of 2.92:1 (versus last year’s 2.96:1). Debt-to-equity ratio stood at 1.12:1,
the same level as that of December 2011, while net debt-to-equity ratio improved to 0.57x (versus
year-end 2011’s 0.59x), as decline in consolidated net debt complemented the growth in equity.
Outlook for the Upcoming Year/ Known Trends, Events, Uncertainties which may have Material
Impact on Registrant
Registrant
Notwithstanding external and uncontrollable economic and business factors that affect its
businesses, AEV believes that it is in a good position to benefit from the opportunities that may
arise in 2012. Its sound financial condition, coupled with a number of industry and company
specific developments, should bode well for AEV and its investee companies. These developments
are as follows:
Power (Generation
(Generation Business)
1. Continued growth in the Power Group’s attributable capacity
76%-owned subsidiary AboitizPower ended the first semester of 2012 with a total attributable
generating capacity of 2,350 MW. The company aims to continue growing its portfolio of
generation assets by implementing the following projects.
- Rehabilitation of the Binga Hydro Power Project
In 2011, AboitizPower, together with its partner SN Power Invest AS (SN Power), commenced
the programmed rehabilitation of the 100 MW Binga hydropower plant, which is consisted of
four units with a capacity of 25 MW each. The program involves the increase of each unit’s
capacity by 5 MW. Rehabilitation of the first unit was completed in December 2011. Works on
the second unit have commenced and are expected to be completed in the third quarter of
2012. Rehabilitation of the remaining two units will commence thereafter. Full completion will
result to Binga’s total capacity reaching 120 MW, from the current 105 MW. AboitizPower has
an effective stake of 50% in this facility.
- Rehabilitation of the Tiwi-Makban Geothermal Power Facilities
AboitizPower’s 100%-owned AP Renewables, Inc. (APRI) is currently undertaking the

rehabilitation of several units of the Tiwi-Makban geothermal power plant complex. Works on
the Tiwi facilities are targeted for completion by the third quarter of 2012, while those for
Makban are seen to be finished by first quarter of 2013. Enhancements in the plants’
availability rate are expected following the completion of the refurbishment, rehabilitation and
resource improvements.
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- Greenfield and Brownfield developments
600 MW Coal-fired Power Plant in Subic. This is a project by Redondo Peninsula Energy, Inc.
(RP Energy), a joint venture with Meralco PowerGen Corporation (MPGC) and Taiwan
Cogeneration International Corporation (TCIC). The project involves the construction and
operation of a 2x300 MW circulating-fluidized-bed (CFB) coal-fired power plant in the Subic
Bay Freeport Zone. RP Energy is awaiting the issuance of the amended Environmental
Compliance Certificate to cover two high-efficiency 300-MW units with main steam reheat
systems. In the meantime, site preparation and the finalization of the EPC contract are
underway, while suppliers of the main equipment (i.e. CFB boilers and turbines) have already
been identified. Completion of the first unit is targeted by the second quarter of 2016, with
the second unit to follow 4 to 6 months thereafter. AboitizPower, through its wholly owned
subsidiary, Therma Power, Inc., will have an equity interest of roughly 25% in RP Energy.
300 MW Coal-fired Power Plant in Davao. AboitizPower, through 100%-owned subsidiary

Therma South, Inc. (TSI), is planning to put up a 2x150 MW coal-fired power plant in Davao,
which is the biggest load center in the island of Mindanao. The project was issued an ECC by
the DENR on September 9, 2011. Pre-construction works (e.g. site clearing) have started in
June 2012. In the same month, TSI entered into construction, supply and coordination
contracts with local and foreign contractors for the project. The first generating unit (150 MW)
is expected to be completed 34 months after (or March 2015), with the second unit (150 MW)
to follow in 3 months (or June 2015).
400 MW Coal-fired Power Plant in Pagbilao, Quezon. On September 27, 2011, AboitizPower
signed a Memorandum of Understanding with Marubeni Corporation (Marubeni) to formalize
their intention to jointly develop, construct and operate a coal-fired power plant with a
capacity of approximately 400 MW. The proposed location will be within the premises of the
existing 700 MW Pagbilao Unit I and II Coal Fired Thermal Power Plant in Quezon. The terms
and conditions of the joint investment will be finalized in a definitive agreement to be agreed
upon by the parties. Marubeni is part-owner of Team Energy Corporation, which owns and
operates the Pagbilao Power Plant under a build-operate-transfer contract with the National
Power Corporation. On the other hand, AboitizPower, through wholly owned subsidiary
Therma Luzon, Inc., is the Independent Power Producer (IPP) Administrator of the Pagbilao
Power Plant under the IPP Administration Agreement with PSALM.
150 MW Coal-fired Power Plant in Misamis Oriental. On June 28, 2010, AboitizPower and its
partners in STEAG State Power, Inc., owner of the 232 MW coal plant located at the Phividec
Industrial Estate in Villanueva, Misamis Oriental, firmed up their collective intention to develop
a third unit of approximately 150 MW capacity adjacent to the existing facility. AboitizPower
and its partners agreed to maintain their shareholdings in the same proportions in the new
corporation to be established for the planned additional capacity. Certain essential facilities,
such as the jetty, coal handling facilities and stockyards and the 138-kV interconnection with
the Mindanao Grid are to be shared with the existing facilities. Depending on the interest the
market demonstrates, the agreement contemplates the possibility of putting up another unit.
13.7 MW Tudaya 1 and 2 Hydro Power Plant Project. AboitizPower’s wholly owned subsidiary
Hedcor Tudaya, Inc. (Hedcor Tudaya) will implement a Greenfield project involving the
construction of run-of-river power plants to be located in the upper and downstream sections
of the existing Sibulan hydro power plants, tapping the same water resource, which are the
Sibulan and Baroring rivers. The two plants will have a combined capacity of 13.7 MW. The
project has been issued its ECC and endorsed by the local communities. Tudaya 2’s RE contract
and civil and equipment supply contracts have been signed. Meanwhile, Tudaya 1’s RE contract
is still being processed, while its civil and equipment supply contracts have been finalized and
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is ready for signing. Target groundbreaking for both plants is within the third quarter of 2012.
Construction is estimated to be completed in 22 months.
13.2 MW Sabangan Hydro Power Plant Project. This involves the construction and operation of
a hydropower plant facility in Mt. Province, a province located in Northern Luzon. This project
will be undertaken by a wholly owned subsidiary of AboitizPower, Hedcor Sabangan, Inc. The
project was granted an ECC by the DENR in 2011. Engineering and design are underway and are
expected to be completed by fourth quarter of 2012. Groundbreaking is targeted in the first
quarter of 2013, with completion expected after a 2-year construction period.
11.5 MW Hedcor Tamugan Hydro Power Plant Project. In 2010, wholly owned subsidiary, Hedcor
Tamugan, Inc. (Hedcor Tamugan), has reached an agreement with the Davao City Water
District on the use of the Tamugan river. Originally planned as a 27.5 MW run-of-river facility,
Hedcor Tamugan submitted a new proposal, which involves the construction of an 11.5 MW
hydropower plant. Hedcor Tamugan is waiting for the Davao City council to approve the
project. Once approval and permits are secured, the two-year construction period will
commence.
Other Greenfield and Brownfield developments. AboitizPower, together with its subsidiaries
and associate company, is conducting feasibility studies for potential Greenfield and
Brownfield projects.
• The SN Aboitiz Power Group (“SNAP Group”) is in the process of evaluating several
hydropower plant projects. A Brownfield project is being evaluated for its Magat
hydropower plant, which involves the construction of a pumped storage facility that
could potentially increase its capacity by at least 90 MW. The SNAP Group is likewise
evaluating several Greenfield hydropower plant projects that have at least 70 MW of
potential capacity each.
• Hedcor is conducting feasibility studies for potential hydropower projects located in

both Luzon and Mindanao. Based on current findings, Hedcor sees the potential of
building plants with capacities ranging from 5 MW to 50 MW. When the projects pass
the evaluation stage and once permits are secured, the two-year construction period
for the hydropower plant facilities will commence.
2. Participation in the Government’s Privatization Program for its Power Assets
AboitizPower continues to closely evaluate the investment viability of the remaining power
generation assets that PSALM intends to auction off.
AboitizPower is also keen on participating in PSALM’s public auction for the IPP Administrator
contracts, which involves the transfer of the management and control of total energy output of
power plants under contract with NPC to the IPP administrators.
Distribution Business
AboitizPower remains optimistic that it will realize modest growth on its existing distribution
utilities. It continually seeks efficiency improvements in its operations to maintain healthy margins.
The implementation of the rate adjustment formula for the distribution companies under the
Performance-Based Regulation (PBR) is on a staggered basis. In addition to annual adjustments,
PBR allows for rate adjustments in between the reset periods to address extraordinary
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circumstances. There is also a mandatory rate-setting every four years wherein possible
adjustments to the rate take into account current situations.
Cotabato Light’s 4-year regulatory period commenced on April 1, 2009 and ends on March 30,
2013. The company is currently in its fourth year of its regulatory period. It is likewise undergoing
its reset process in preparation for its second 4-year regulatory period, which should commence in
April 2013. Cotabato Light is the first distribution utility in the AboitizPower group to implement
this incentive-based scheme.
VECO and Davao Light are part of the third group (Group C) of private distribution utilities that
shifted to PBR, which implemented their approved rate structures in August 2010. Both companies
implemented their approved rates for the second year of its regulatory period in August 2011.
SFELAPCO and SEZ are part of the fourth batch (Group D) of private distribution utilities to enter
PBR. In July 2011, the ERC released the final determination on the applications for annual revenue
requirements and performance incentive schemes for the regulatory period October 2011 to
September 2015. Implementation of approved rates took place in January 2012 and March 2012 for
SEZ and SFELAPCO, respectively. All under-recoveries since October 2011 are allowed to be
recouped in the next regulatory year.
Market and Industry Developments
Open Access and Retail Competition
Per EPIRA, the conditions for the commencement of the Open Access and Retail Competition are as
follows:
(a) Establishment of the WESM;

(b) Approval of unbundled transmission and distribution wheeling charges;
(c) Initial implementation of the cross subsidy removal scheme;
(d) Privatization of at least 70% of the total capacity of generating assets of NPC in Luzon
and Visayas; and
(e) Transfer of the management and control of at least 70% of the total energy output of
power plants under contract with NPC to the IPP administrators.
Under the Open Access and Retail Competition, an eligible contestable customer, which is defined
as an end-user with a monthly average peak demand of at least 1 MW for the preceding 12 months,
will have the option to source their electricity from eligible suppliers that have secured a Retail
Electricity Supplier license from the ERC. Eligible suppliers shall include the following:
- Generation companies that own, operate or control 30% or less of the installed generating
capacity in a grid and/or 25% or less of the national installed capacity
- NPC-Independent Power Producers with respect to capacity which is not covered by contracts
- IPP Administrators with respect to the uncontracted energy which is subject to their
administration and management
- Retail Electricity Suppliers (RES) duly licensed by the ERC
The implementation of the Open Access and Retail Competition presents a big opportunity for
AboitizPower, as it has two wholly owned subsidiaries (i.e. Aboitiz Energy Solutions, Inc. and
11
AdventEnergy, Inc.) that are licensed retail suppliers, which can enter into contracts with the
eligible contestable customers. Moreover, AboitizPower’s generation assets that have
uncontracted capacity will be able to have direct access to eligible contestable customers through
AboitizPower’s licensed RES.
In June 2011, the ERC declared December 26, 2011 as the Open Access Date to mark the
commencement of the full operations of the competitive retail electricity market in Luzon and
Visayas. However, after careful deliberation, the ERC acknowledged that not all the necessary
rules, systems and infrastructures required for the implementation of the Open Access and Retail
Competition have been put in place to meet the contemplated timetable for implementation. In
October 2011, the ERC announced the deferment of the Open Access Date. A definitive timeline
leading to the eventual implementation will be issued by the ERC after consultation with all the
stakeholders.
Financial Services
UnionBank’s initiatives on strengthening its customer franchise will continue to be at the forefront
as it prioritizes customer engagement through enhanced retail focus and stronger sales
management approach. UnionBank will continue to invest in technology, cultivate partnerships
and develop relevant and expert financial solutions that challenge convention, and rationalize
branch network expansion in strategic areas to maximize growth channels with respect to both
deposits and loan accounts.
UnionBank will continue to focus on improving the performance of its earning assets portfolio,
with loan asset acquisition in the retail, middle-market and corporate sectors. The bank will
implement a disciplined asset allocation built on good governance and effective risk management
to ensure momentum of recurrent income stream. UnionBank will continue to focus on improving
its deposit liabilities mix by targeting low-cost funds (i.e. CASA).
UnionBank will, likewise, continue to enhance operating efficiencies through cost containment
efforts and improvements in its business processes to align with best and leading practices.
CitySavings will continue to strengthen its market position in its present niche by improving its
products and services further. Other government employees, aside from public school teachers,
and private company employees will be tapped. CitySavings plans to expand its branch network by
putting up new branches and extension offices in areas outside of its present coverage. The bank
is targeting to add six (6) branches to its network, all to be located in Luzon.
To support its expansion program, CitySavings is in the process of putting in place a new core
banking system called Finacle, which is designed to improve processes and systems to better serve
the bank’s growing clientele. With this system, operating efficiencies are seen to be enhanced as
branch processes will be standardized and backroom operations will be automated.
Food Manufacturing
In line with the logistics initiatives to mitigate higher freight cost, Pilmico has implemented
dredging works in its harbor in Iligan, which is expected to be completed by third quarter of 2012.
With the construction of a new mooring structure, this should enable the harbor to accommodate
higher tonnage vessels. This, together with the pneumatic unloader that was completed, should
result to the improvement in the facility’s unloading rate to 10,500 metric tons per day (MTPD)
from 7,500 MTPD.
Construction of additional silos to support the storage requirements of the second production line
of its Iligan feedmill has been completed in the second quarter of 2012.
12
PANC aims to continue its swine business’ expansion phase by growing further its breeding
capacity. The company’s goal is to increase its sow capacity by 28% by 2014, with 70% of the
finishing farms owned and operated by the company. To do this, PANC will continue to expand the
existing breeder farm, build a new nursery farm and increase the capacity of the growing-finishing
farms.
PART II--
II--OTHER
--OTHER INFORMATION
There are no significant information on the company which requires disclosure herein and/or were
not included in SEC Form 17-C.
13
ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
AT JUNE 30, 2012 AND DECEMBER 31, 2011
(Amounts in Thousands)
UNAUDITED AUDITED
JUN 2012 DEC 2011
ASSETS
Current Assets
Cash and cash equivalents 30,531,371 29,543,492
Trade and other receivables - net 22,679,125 22,024,385
Inventories - net 4,478,103 4,932,659
Other current assets 2,763,517 2,220,068
Total Current Assets 60,452,116 58,720,604
Noncurrent Assets
Property, plant, and equipment - net 84,716,977 82,608,589
Intangible asset - service concession right 4,030,296 4,162,768
Investment properties - net 400,901 341,381
Investments and advances 49,888,148 48,762,926
Available-for-sale (AFS) investments 64,482 74,569
Goodwill 1,640,552 1,639,518
Pension asset 142,747 190,270
Deferred income tax assets 389,009 268,664
Other noncurrent assets - net 4,293,030 4,222,586
Total Noncurrent Assets 145,566,142 142,271,271
TOTAL ASSETS 206,018,258 200,991,875
LIABILITIES AND EQUITY
Current Liabilities
Bank loans 4,928,162 5,301,008
Trade and other payables 14,488,601 12,667,610
Current portion of derivative liability - 7,580
Dividends payable 57 -
Income tax payable 294,008 222,895
Current portion of long-term debt 934,836 1,604,750
Current portion of obligations on Power Distribution System 40,000 40,000
Current portion of payable to preferred shareholder of a subsidiary 16,902 16,902
Total Current Liabilities 20,702,566 19,860,745
Noncurrent Liabilities
Deposit liabilities of CSB 4,907,392 4,472,252
Long-term debt - net of current portion 25,928,837 26,077,970
Obligations under finance lease - net of current portion 54,017,528 52,714,959
Obligations on Power Distribution System - net of current portion 253,944 237,046
Customers' deposits 2,289,875 2,170,028
Payable to preferred shareholder of a subsidiary 28,632 46,068
Pension liability 48,515 37,092
Deferred income tax liability 671,003 397,988
Total Noncurrent Liabilities 88,145,726 86,153,403
Total Liabilities 108,848,292 106,014,148
Equity Attributable to Equity Holders of the Parent
Capital stock 5,694,600 5,694,600
Additional paid-in capital 6,110,957 6,110,957
Net unrealized gains on AFS investments 2,547 9,638
Cumulative translation adjustments (123,761) (43,705)
Share in cumulative translation adjustments of associates (398,543) (417,661)
Share in net unrealized gains (losses) on AFS investments and underwriting
accounts of associates 423,017 1,116,923
Gain on dilution 5,376,176 5,376,176
Acquisition of non-controlling interest (1,165,931) (527,203)
Retained earnings 64,138,971 61,053,322
Treasury stock at cost (1,295,163) (1,295,163)
78,762,870 77,077,884
Non-controlling Interests 18,407,096 17,899,843
Total Equity 97,169,966 94,977,727
TOTAL LIABILITIES AND EQUITY 206,018,258 200,991,875
CONSOLIDATED INCOME STATEMENTS
FOR THE PERIODS ENDED JUNE 30, 2012 AND 2011
(UNAUDITED)
JAN-JUN/12 JAN-JUN/11 APR-JUN/12 APR-JUN/11
REVENUES 40,344,654 35,887,849 20,765,755 18,777,010
COSTS AND EXPENSES 29,550,900 24,403,900 15,429,273 13,255,614
GROSS PROFIT 10,793,753 11,483,949 5,336,482 5,521,396
OTHER INCOME (CHARGES)

Share in net earnings of associates 7,110,756 4,806,551 3,864,204 3,151,105
Interest income 439,095 424,012 238,005 213,985
Interest expense (3,941,744) (3,762,361) (1,993,975) (1,941,338)
Dividends on redeemable preferred - (63,029) - (31,345)
Other income 1,332,959 677,455 597,730 322,738
4,941,066 2,082,628 2,705,964 1,715,145
INCOME BEFORE INCOME TAX 15,734,819 13,566,577 8,042,446 7,236,541

PROVISION FOR INCOME TAX 827,651 739,362 401,646 267,082
NET INCOME 14,907,168 12,827,215 7,640,800 6,969,459
ATTRIBUTABLE TO:
EQUITY HOLDERS OF THE PARENT 11,810,207 10,216,914 5,955,483 5,611,957
NON-CONTROLLING INTERESTS 3,096,962 2,610,302 1,685,317 1,357,502
14,907,168 12,827,215 7,640,800 6,969,459
Earnings Per Common Share **

Basic, for income for the period attributable to ordinary
holders of the parent 2.139 1.850 1.079 1.016
** Refer to Disclosure H for the computation of Earnings per Common Share.
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE PERIODS JUNE 30, 2012 AND 2011
(UNAUDITED)
Profit for the period attributable to:

Equity holders of the parent 11,810,207 10,216,914 5,955,483 5,611,957
Non-controlling interests 3,096,962 2,610,302 1,685,317 1,357,502
Profit for the period 14,907,168 12,827,215 7,640,800 6,969,459
Other comprehensive income:
Net unrealized valuation gains on AFS investments 1,859 15,863 4,715 14,343
Movement in cumulative translation adjustments of associates (103,464) (122,135) (69,370) (121,799)

Share in movement in net unrealized valuation gains (losses) on AFS
investments of an associate (696,389) 26,402 (181,127) 680,231
Share in movement in cumulative translation adjustments of
associates (18,830) (6,921) 25,838 11,672
Other comprehensive loss for the period, net of tax (Schedules A &
B) (816,824) (86,791) (219,943) 584,447
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD 14,090,344 12,740,425 7,420,857 7,553,906
TOTAL COMPREHENSIVE INCOME ATTRIBUTABLE TO:

Owners of the parent 11,048,271 10,192,674 5,760,764 6,256,986
Non-controlling interests 3,042,073 2,547,751 1,660,093 1,296,920
14,090,344 12,740,425 7,420,857 7,553,906
CONSOLIDATED STATEMENTS OF CASH FLOWS
FOR THE PERIODS ENDED JUNE 30, 2012 AND 2011
(UNAUDITED)

CASH FLOWS FROM OPERATING ACTIVITIES:
Income before income tax 15,734,819 13,566,577 8,042,446 7,236,541
Adjustments for:
Share in net earnings of associates (7,110,756) (4,806,551) (3,864,202) (3,151,105)
Depreciation and amortization 1,828,243 1,806,463 905,950 945,115
Interest income (439,095) (424,012) (238,005) (213,986)
Interest expense and dividends on redeemable preferred shares 3,941,744 3,825,390 1,993,975 1,972,684
Amortization of computer softwares and other intangibles 12,001 - 6,292 -
Dividend income (473) (0) (79) (0)
Reversal of provision for investment in shares of stock - (40,247) - (40,247)
Provision for (recovery of) impairment loss on receivables 70,556 20,026 39,310 (17,370)
Unrealized fair valuation losses (gains) on derivatives (736) 7,252 (994) (11,326)
Provision for retirement benefits 6,597 3,558 3,298 1,779
Write-off of project costs and others - 51 - 51
Unrealized foreign exchange gain (1,007,277) (282,770) (507,721) (34,990)
Gain on sale of investments in shares of stock (39,297) - (12,210) -
Loss (gain) on sale of available for sale investments 1,259 - - (5,682)
Gain on sale of property, plant & equipment (7,245) (1,981) (6,147) (1,544)
Operating income before working capital changes 12,990,341 13,673,756 6,361,914 6,679,919
Changes in:
Increase in operating current assets (819,610) (3,144,858) (1,113,657) (2,991,710)
Increase in operating current liabilities 2,435,084 2,035,100 1,368,186 2,381,403
Cash provided by operations 14,605,814 12,563,997 6,616,443 6,069,612
Income and final taxes paid (556,680) (602,929) (500,707) (621,668)
Net cash provided by operating activities 14,049,135 11,961,067 6,115,736 5,447,944
CASH FLOWS FROM INVESTING ACTIVITIES:
Dividends received 5,056,410 3,755,267 4,418,791 1,699,210
Interest received 502,234 403,455 229,062 179,949
Additions to investments (78,968) (296,457) (77,472) (296,393)
Collection of (payments for) advances to associates 1,923 (210,653) 656 (5,316)
Acquisitions of property, plant and equipment - net (3,988,906) (4,031,067) (2,797,597) (3,105,395)
Disposals of available for sale investments 1,737 35,779 6,345 41,933
Acquisition of a subsidiary, net of cash acquired (933,702) (563,567) - (563,567)
Proceeds from sale of investments in shares of stock 330,719 0 12,210 0
Decrease (increase) in intangible assets 132,472 (77,111) 146,333 (56,833)
Decrease (increase) in other assets (214,913) 322,306 (352,753) 528,608
Net cash used in investing activities 809,005 (662,048) 1,585,576 (1,577,804)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net proceeds from (settlements of) bank loans (372,846) (2,079,658) 1,256,520 (1,451,733)
Proceeds from (payments of) long-term debt (819,047) 6,713,738 (1,466,885) 7,216,901
Payments of finance lease obligation (546,085) (541,015) (272,625) (265,515)
Proceeds from (payments of) payable to preferred shareholders of a
subsidiary (24,520) (31,070) (5,176) 15,489
Interest and dividends on redeemable preferred shares paid (1,066,055) (1,054,346) (509,613) (372,737)
Increase (decrease) in derivative liabilities/ Decrease (increase) in
derivative assets (6,844) 7,734 587 7,734
Cash dividends paid to equity holders of the parent (8,724,557) (8,724,557) (8,724,557) (8,724,557)
Cash dividends and other accounts paid to non-controlling interest (2,255,482) (2,812,820) (2,255,771) (2,812,133)
Net cash used in financing activities (13,815,436) (8,521,995) (11,977,521) (6,386,552)
NET INCREASE IN CASH AND CASH EQUIVALENTS 1,042,704 2,777,024 (4,276,209) (2,516,411)
EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH &
CASH EQUIVALENTS (54,825) (6,303) 4,731 3,061
CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 29,543,492 26,097,203 34,802,848 31,381,274
CASH AND SHORT-TERM INVESTMENTS AT END OF PERIOD 30,531,371 28,867,924 30,531,371 28,867,924
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE PERIODS ENDED JUNE 30, 2012 AND DECEMBER 31, 2011
Attributable to owners of the parent

Share in Net
Net Unrealized Unrealized Gains
Valuation Share in (Losses) on AFS
Gains Cumulative Investments & Acquisition
Additional (Losses) on Cumulative Translation Underwriting of Non- Non-
Share Capital Paid-in AFS Translation Adjustments of Accounts of an Gain on controlling Retained Treasury controlling
Common Preferred Capital Investments Adjustments Associates Associate Dilution Interest Earnings Stock Total Interests Total
Balances at December 31, 2011 5,694,600 - 6,110,957 9,638 (43,705) (417,661) 1,116,924 5,376,176 (527,203) 61,053,322 (1,295,163) 77,077,884 17,899,843 94,977,727
Changes in equity for Jan-Jun 2012:
Acquisition of non-controlling interest (638,727) (638,727) 1,115 (637,613)
Cash dividends (8,724,557) (8,724,557) (8,724,557)
Changes in non-controlling interest - (280,453) (280,453)
Cash dividends paid to non-controlling interest - (2,255,482) (2,255,482)
Total comprehensive income for the year (7,091) (80,056) 19,118 (693,907) 11,810,207 11,048,271 3,042,073 14,090,344
Balances at June 30, 2012 5,694,600 - 6,110,957 2,547 (123,761) (398,542) 423,017 5,376,176 (1,165,931) 64,138,970 (1,295,163) 78,762,870 18,407,096 97,169,966

Share in Net
Net Unrealized Unrealized Gains
Valuation Share in (Losses) on AFS
Gains Cumulative Investments & Acquisition
Additional (Losses) on Cumulative Translation Underwriting of Non- Non-
Share Capital Paid-in AFS Translation Adjustments of Accounts of an Gain on controlling Retained Treasury controlling
Balances at December 31, 2010 5,694,600 - 6,110,957 7,443 0 44,606 314,840 5,376,176 (527,203) 48,586,535 (1,295,163) 64,312,791 14,004,637 78,317,428
Changes in equity for Jan-Dec 2011:
Changes in non-controlling interest - 1,082,900 1,082,900
Cash dividends (8,724,557) (8,724,557) (8,724,557)
Total comprehensive income for the year 2,195 (43,705) (462,267) 802,084 21,191,344 - 21,489,650 5,186,733 26,676,384
Balances at December 31, 2011 5,694,600 - 6,110,957 9,638 (43,705) (417,661) 1,116,924 5,376,176 (527,203) 61,053,322 (1,295,163) 77,077,883 17,899,843 94,977,727
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE PERIODS ENDED JUNE 30, 2011

Share in Net
Unrealized Gains
Net Unrealized Share in (Losses) on AFS
Valuation Cumulative Investments &
Additional Gains (Losses) Cumulative Translation Underwriting Acquisition Non-
Share Capital Paid-in on AFS Translation Adjustments of Accounts of an Gain on of Minority Retained Treasury controlling
Balances at December 31, 2010 5,694,600 - 6,110,957 7,443 0 44,606 314,840 5,376,176 (527,203) 48,586,535 (1,295,163) 64,312,790 14,004,637 78,317,428
Changes in equity for Jan-Jun 2011:
Acquisition of non-controlling interest 323,679 323,679 99,974 423,654
Cash dividends (8,724,557) (8,724,557) (8,724,557)
Changes in non-controlling interest - 63,347 63,347
Total comprehensive income for the year - - - (461) - (50,181) 26,402 - - 10,216,914 10,192,674 2,547,751 12,740,425
Balances at June 30, 2011 5,694,600 - 6,110,957 6,982 0 (5,575) 341,242 5,376,176 (203,524) 50,078,892 (1,295,163) 66,104,586 14,422,848 80,527,435
FINANCIAL STATEMENT SCHEDULES AND DISCLOSURES
AT JUNE 30, 2012 AND DECEMBER 31, 2011
(peso amounts in thousands)
A. COMPONENTS OF OTHER COMPREHENSIVE INCOME
JAN-JUN/12 JAN-JUN/11
Available-for-sale financial assets:
Net unrealized valuation gains arising during the period 1,859 15,863
Less: Reclassification adjustments for losses included in profit or loss - 1,859 - 15,863
Exchange differences in translating foreign-denominated transactions (103,464) (122,135)
Share in movement in net unrealized valuation gains (losses) on AFS investments of an associate (696,389) 26,402
Share in movement in cumulative translation adjustments of associates (18,830) (6,921)
Other comprehensive loss (816,824) (86,791)
Income tax relating to components of other comprehensive income - -
Other comprehensive loss for the period (816,824) (86,791)
B. TAX EFFECTS RELATING TO EACH COMPONENT OF OTHER COMPREHENSIVE INCOME
JAN-JUN/12 JAN-JUN/11
Tax
Before-Tax Tax (Expense) Net-of-Tax Before-Tax (Expense)
Amount Benefit Amount Amount Benefit Net-of-Tax Amount
Available-for-sale financial assets 1,859 - 1,859 15,863 - 15,863
Exchange differences in translating foreign-denominated transactions (103,464) - (103,464) (122,135) - (122,135)
Share in movement in net unrealized valuation gains (losses) on AFS investments of an associate (696,389) - (696,389) 26,402 - 26,402
Share in movement in cumulative translation adjustments of associates (18,830) - (18,830) (6,921) - (6,921)
Other comprehensive loss for the period (816,824) - (816,824) (86,791) - (86,791)
C. INVESTMENTS AND ADVANCES
% OWNERSHIP
2012 JUN 2012 DEC 2011
Investments in shares of stock
At equity
Acquisition cost:
Union Bank of the Philippines 43.27% 6,141,614 6,064,163
Accuria, Inc. 49.54% 719,739 719,739
Western Mindanao Power Corporation 20.00% 79,099 263,665
Cebu International Container Terminal, Inc. 20.00% 240,125 240,125
Hijos de Escaño, Inc. 46.73% 858,070 858,070
San Fernando Electric Light & Power Co., Inc. 20.29% 180,864 180,864
Pampanga Energy Ventures, Inc. 42.84% 209,465 209,465
Southern Philippines Power Corporation 20.00% 99,166 152,587
Visayan Electric Co., Inc. 55.25% 659,671 658,153
Manila Oslo Renewable Enterprise, Inc. 83.33% 9,545,143 9,545,143
East Asia Utilities Corporation 50.00% 180,616 217,551
STEAG State Power Inc. 34.00% 4,400,611 4,400,611
Redondo Peninsula Energy Corporation 25.00% 5,000 5,000
Cebu Energy Development Corp. 44.00% 2,438,621 2,438,621
South Western Cement Corporation 20.00% 28,995 28,995
Luzon Hydro Corporation 100.00% - -
Cordillera Hydro Corporation 35.00% 88 88
CSB Land, Inc. 40.00% 2,000 2,000
CSB Holdings, Inc. 40.00% 1,000 1,000
Hapag-Lloyd Philippines, Inc. 15.00% 1,800 1,800
Jebsens People Solutions AS 50.00% 3,600 3,600
JAIB, Inc. 49.00% 1,884 1,884
Balance at end of period 25,797,173 25,993,126
Accumulated share in net earnings:
Balance, beginning of year 20,231,696 16,339,566
Share in net earnings for the period 7,110,756 11,229,066
Disposals during the period (16,501) (0)
Step-acquisition to subsidiary - (196,403)
Cash dividends received and receivable (5,055,937) (7,140,532)
Balance, end of period 22,270,014 20,231,696
Gain on dilution 1,014,136 1,014,136
Share in net unrealized gains (losses) on available-for-sale
investments of an associate 426,277 1,122,666
Share in cumulative translation adjustments of associates (565,583) (546,753)

48,942,017 47,814,872
Allowance for impairment losses (28,995) (28,995)
Investments, at equity 48,913,022 47,785,876
Advances to investees 975,126 977,049
49,888,148 48,762,925
D. ACCOUNTS PAYABLE & ACCRUED EXPENSES

Trade 3,833,399
Others 10,655,202
TOTAL 14,488,601
E. SHORT-TERM LOANS
Effective
Interest Rate JUN 2012 DEC 2011
Financial institutions - unsecured:
Peso loans 3.8% - 4.10% 4,766,000 5,084,000
US dollar loans 4% - 4.13% 162,162 217,008
4,928,162 5,301,008
F. LONG-TERM LOANS
Effective
Interest Rate JUN 2012 DEC 2011
Company:
Financial institutions - unsecured
Peso denominated loans 5.23% - 8.25% 3,986,050 3,991,150
3,986,050 3,991,150
Subsidiaries:
AP and subsidiaries:
AP Parent
Financial and non-institutions - unsecured
Fixed rate notes 9.33% 543,200 543,200
Fixed rate notes 8.23% 5,000,000 5,000,000
Fixed rate notes 6.17% 5,000,001 5,000,000
Retail Bonds
5 year bonds 8.70% - 2,294,420
3 year bonds 8.00% - 705,580
CPPC
Financial institution 3.8396% - 4.6481% - 426,667
HEDCOR, INC.
Financial institution - secured 8.36% 319,999 484,500
HEDCOR SIBULAN, INC.
Financial institutions - secured 8.52% 452,200 3,306,947
SEZC
Financial institution - secured 8.26% - 10.02% 3,175,420
Financial institution - secured 5.61% 565,000
LHC
Financial institution - secured 2% to 2.75% 565,000 521,257
BEZC
Financial institution - secured 7.50% 2,230,255 70,000
17,286,075 18,917,571
Less deferred financing costs 101,299 112,589
17,184,776 18,804,982
PILMICO and subsidiary:
PILMICO
Financial institutions - secured 4.96% - 7.10% 1,290,000 1,369,304
PANC
Financial institution - secured 6.47% 600,000 600,000
1,890,000 1,969,304
1,878,316 1,961,235
CITY SAVINGS BANK
Financial institutions 5.87% - 10.10% 3,199,500 2,240,092
Non-financial institutions 4.75% - 8.5% 669,159 699,919
3,868,659 2,940,011
3,814,531 2,925,353
Total 26,863,673 27,682,720
Less: Current portion 934,836 1,604,750
25,928,837 26,077,970
G. DEBT SECURITIES
In April, 2009, AP, a 76.83%-owned subsidiary, registered and issued peso-denominated fixed-rate retail bonds
amounting to P3 billion under the following terms:
MATURITY INTEREST RATE AMOUNT

5-year bonds to mature on May 1, 2014 8.7%/p.a. 2,294,420
3-year bonds to mature on April 30, 2012 8.0%/p.a. 705,580
On April 30, 2012, the above bonds were fully repaid. AP's payment comprised both the final settlement of the
maturing 3-year bonds and the early redemption of the 5-year bonds.
H. EARNINGS PER SHARE

Earnings per common share amounts were computed as follows:
JUN 2012 JUN 2011
a. Net income attributable to equity holders of the parent 11,810,207 10,216,914
b. Average number of outstanding shares 5,521,871,821 5,521,871,821
c. Earnings per share (a/b) 2.139 1.850
I. BUSINESS SEGMENT INFORMATION
Financial information on the operations of the business segment is summarized as follows:

Power Financial Services Food Manufacturing Transport Services Parent Company and Others Eliminations Consolidated
Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
REVENUES 31,268,588 27,267,329 1,049,578 856,461 7,563,367 7,290,565 - 262,034 463,121 211,460 - (126,655) 40,344,654 35,887,849
RESULT
Segment results 9,782,928 10,182,888 277,793 297,104 699,419 868,019 - 41,715 33,614 64,650 - 29,574 10,793,753 11,483,949
Unallocated corporate income
(expenses) 1,255,508 542,175 11,601 6,689 753 1,803 - 14,796 65,097 141,566 - (29,574) 1,332,959 677,455
INCOME FROM OPERATIONS 12,126,712 12,161,404

Interest Expense & Dividends on
Redeemable Preferred (3,709,066) (3,543,506) - - (73,851) (60,389) - (4,912) (158,827) (216,583) - - (3,941,744) (3,825,390)
Interest Income 392,177 294,006 - - 3,057 2,660 - 2,293 43,861 125,053 - - 439,095 424,012
Share in net earnings of associates 5,339,075 3,638,965 1,761,393 1,164,737 79,333 84,985 - 2,876 10,082,552 8,987,476 (10,151,597) (9,072,488) 7,110,756 4,806,551
Provision for Income tax (613,040) (426,509) (91,061) (91,330) (107,133) (162,542) - (21,110) (16,417) (37,871) - - (827,651) (739,362)
NET INCOME 14,907,168 12,827,215
OTHER INFORMATION Jun 2012 Dec 2011 Jun 2012 Dec 2011 Jun 2012 Dec 2011 Jun 2012 Dec 2011 Jun 2012 Dec 2011 Jun 2012 Dec 2011 Jun 2012 Dec 2011
Segment assets 37,940,779 36,177,995 14,531,993 12,674,913 4,527,976 5,166,308 - - 3,484,297 4,838,192 (32,929) (136,804) 60,452,116 58,720,604
Investments and advances 30,011,522 29,206,192 19,987,446 19,677,649 1,209,485 1,130,152 - - 60,372,992 58,024,800 (61,693,297) (59,275,867) 49,888,148 48,762,925
Unallocated corporate assets 89,754,284 88,238,253 315,827 323,866 2,851,407 2,668,037 - - 2,112,962 1,634,678 643,513 643,512 95,677,994 93,508,345
Consolidated total assets 206,018,258 200,991,875

Segment liabilities 83,872,504 82,768,086 12,766,995 11,086,268 5,681,924 5,705,399 - - 6,020,275 5,923,678 (506,932) (127,257) 107,834,766 105,356,173
Unallocated corporate liabilities 890,696 567,636 47,814 74,317 46,268 - - - 28,748 16,022 - - 1,013,526 657,975
Consolidated total liabilities 108,848,292 106,014,148
Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011 Jan-Jun 2012 Jan-Jun 2011
Depreciation 1,616,599 1,619,241 26,046 21,059 123,522 111,067 - 11,273 62,076 43,823 - - 1,828,243 1,806,463
J. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise cash and cash equivalents, AFS investments, bank loans, long-term
debt, obligations under finance lease and non-convertible, cumulative, redeemable preferred shares. The main purpose of
these financial instruments is to raise finances for the Group’s operations and its investments in existing subsidiaries and
associates and in new projects. The Group has other financial assets and liabilities such as trade and other receivables and
trade and other payables and customer deposits which arise directly from operations.
The main risks arising from the Group’s financial instruments are interest rate risk resulting from movements in interest rates
that may have an impact on outstanding long-term debt; credit risk involving possible exposure to counter-party default on its
cash and cash equivalents, AFS investments and trade and other receivables; liquidity risk in terms of the proper matching
of the type of financing required for specific investments; and foreign exchange risk in terms of foreign exchange fluctuations
that may significantly affect its foreign currency denominated placements and borrowings. The Board of Directors reviews
and agrees policies for managing each of these risks and they are summarized below.
Interest rate risk. The Group’s exposure to market risk for changes in interest rates relates primarily to its long-term debt
obligations. To manage this risk, the Group determines the mix of its debt portfolio as a function of the level of current
interest rates, the required tenor of the loan, and the general use of the proceeds of its various fund raising activities. As of
June 30, 2012, 9.6% of the Group’s long-term debt had floating interest rates ranging from 2.0% to 4.65%, and 90.4% are
with fixed rates ranging from 4.75% to 10.10%. As of December 31, 2011, 3.6% of the Group’s long-term debt had floating
interest rates ranging from 3.22% to 6.40%, and 96.4% are with fixed rates ranging from 4.75% to 10.10%.
The following table set out the carrying amount, by maturity, of the Group's financial instruments that are exposed to interest
rate risk:
As of June 30, 2012
< 1 year 1 - 5 years > 5 years Total

Floating rate - long-term debt 444,993 2,086,839 - 2,531,832
Fixed rate - long-term debt 489,843 18,328,781 5,513,217 24,331,841
Payable to preferred shareholders of a
subsidiary - floating 16,902 28,632 - 45,534
951,738 20,444,252 5,513,217 26,909,207
As of December 31, 2011

< 1 year 1 - 5 years > 5 years Total
Floating rate - long-term debt 409,153 533,429 - 942,582
Fixed rate - long-term debt 1,195,597 15,793,461 9,751,081 26,740,138
Payable to preferred shareholders of a
subsidiary - floating 16,902 46,068 - 62,970
1,621,652 16,372,957 9,751,081 27,745,690
Interest on financial instruments classified as floating rate is repriced at intervals of less than one year. Interest on financial
instruments classified as fixed rate is fixed until the maturity of the instrument. The other financial instruments of the Group
that are not included in the above tables are non-interest bearing and are therefore not subject to interest rate risk.
Interest expenses recognized during the comparative periods are as follows:
JUN 2012 JUN 2011

Long term debt 919,103 961,227
Bank loans 83,796 84,661
Customers' deposits 1,118 1,932
Obligations under finance lease 2,910,756 2,683,491
Long-term obligation on PDS 16,898 17,243
Payable to preferred shareholder of a
subsidiary 7,084 8,636
Advances from related parties 2,989 5,171
3,941,744 3,762,361
The following table demonstrates the sensitivity to a reasonably possible change in interest rates, with all other variables
Increase/decrease Effect on income

in basis points before tax
Jun 2012 200 (12,852)
(100) 6,426
Jun 2011 100 (6,094)
(50) 3,047
Foreign exchange risk. The foreign exchange risk of the Group pertains significantly to its foreign currency denominated
borrowings, including obligations under finance lease. To mitigate the risk of incurring foreign exchange losses, foreign
currency holdings are matched against the potential need for foreign currency in financing equity investments and new
projects. As of March 31, 2012 and December 31, 2011, foreign currency denominated borrowings account for 32.06 %
and 32.02%, respectively, of total consolidated borrowings.
JUNE 30, 2012 DECEMBER 31, 2011

Peso
US Dollar Peso Equivalent1 US Dollar Equivalent2
Current Financial Assets
Cash and cash equivalents 76,784 3,234,159 16,704 732,310
Trade and other receivables 4,335 182,609 15,180 665,488
Amounts owed by related parties 885 37,259 885 38,781
Total Financial Assets 82,004 3,454,027 32,769 1,436,579
Peso
US Dollar Peso Equivalent US Dollar Equivalent
Current Financial Liabilities
Bank loans 3,850 162,162 4,950 217,008
Trade and other payables 14,678 618,243 20,768 910,472
Long-term debt 52,950 2,230,256 11,889.99 521,257.00
Obligations under finance lease 634,662 26,731,963 609,712 26,729,764
Total Financial Liabilities 706,140 29,742,625 647,320 28,378,501
Net foreign currency denominated

assets (liabilities) (624,136) (26,288,597) (614,551) (26,941,922)
1
USD1 = 42.12
2
USD1 = 43.84
The following table demonstrates the sensitivity to a reasonably possible change in the US dollar exchange rates, with all
other variables held constant, of the Group’s profit before tax as of June 30, 2012.
Increase Effect on
(decrease) income before
in US dollar rate income tax
US dollar denominated accounts 5% (1,314,430)
US dollar denominated accounts -5% 1,314,430
The increase in US dollar rate represents the depreciation of the Philippine peso while the decrease in US dollar rate
represents appreciation of the Philippine peso.
There is no other impact on the Group’s equity other than those already affecting the consolidated statement of income.
Equity price risk. Equity price risk is the risk that the fair value of traded equity instruments decrease as the result of the
changes in the levels of equity indices and the value of the individual stocks.
As of June 30, 2012 and December 31, 2011, the Group’s exposure to equity price risk is minimal.
Credit risk. For its cash investments, AFS investments and receivables, the Group’s credit risk pertains to possible default
by the counterparty, with a maximum exposure equal to the carrying amount of these assets. With respect to cash and AFS
investments, the risk is mitigated by the short-term and or liquid nature of its cash investments mainly in bank deposits and
placements, which are placed with financial institutions of high credit standing. With respect to receivables, credit risk is
controlled by the application of credit approval, limit and monitoring procedures. It is the Group’s policy to enter into
transactions with a diversity of credit-worthy parties to mitigate any significant concentration of credit risk. The Group
ensures that sales are made to customers with appropriate credit history and has internal mechanism to monitor the
granting of credit and management of credit exposures. The Group has no significant concentration risk to a counterparty or
group of counterparties.
Liquidity risk. Liquidity risk is the risk that an entity in the Group will be unable to meet its obligations as they become due.
The Group, except City Savings Bank ("CSB") (which has a separate risk management policy), manages liquidity risk by
effectively managing its working capital, capital expenditure and cash flows, making use of a centralized treasury function to
manage pooled business unit cash investments and borrowing requirements. Currently the Group, except CSB, is
maintaining a positive cash position, conserving the Group’s cash resources through renewed focus on working capital
improvement and capital reprioritization. The Group, except CSB, meets its financing requirements through a mixture of
cash generated from its operations and short-term and long-term borrowings. Adequate banking facilities and reserve
borrowing capacities are maintained. The Group is in compliance with all of the financial covenants per its loan agreements,
none of which is expected to present a material restriction on funding or its investment policy in the near future. The Group
has sufficient undrawn borrowing facilities, which could be utilized to settle obligations.
In managing its long-term financial requirements, the policy of the Group, excluding CSB, is that not more than 25% of long
term borrowings should mature in any twelve-month period. As of June 30, 2012 and December 31, 2011, the portion of the
total long-term debt that will mature in less than one year is 1.19% and 2.02%, respectively. For its short-term funding, the
policy of the Group, except CSB, is to ensure that there are sufficient working capital inflows to match repayments of short-
term debt.
Cash and cash equivalents and trade and other receivables, which are all short-term in nature, have balances of
P28,060,562 and P10,647,826 as of June 30, 2012 and P27,201,981 and P11,690,983 as of December 31, 2011,
respectively. These financial assets will be used to fund short-term and operational liquidity needs of the Group.
The following table analyses the financial liabilities of the Group, except CSB, into relevant maturity groupings based on the remaining period at the balance sheet
date to the contractual maturity. The amounts disclosed in the table are the contractual undiscounted cash flows (amounts in thousands):
Contractual undiscounted principal payments

Total Carrying
Value Total On demand Less than 1 year 1 to 5 years > 5 years
Financial Liabilities
Operating
Trade and other payables 10,443,529 7,118,856 50,963 7,067,893 - -
Customers’ deposits 2,289,875 2,289,875 - 8,046 57,172 2,224,657
Financing
Bank loans 4,928,162 4,928,162 - 4,928,162 - -
Long-term debt 23,049,142 24,492,068 - 1,211,089 20,896,347 2,384,632
Obligations under finance lease 54,017,528 107,686,190 - - 35,319,830 72,366,360
Obligations on power distribution system 293,944 640,000 - 40,000 200,000 400,000
Others
Payable to preferred shareholder of a subsidiary 45,534 45,534 - 16,902 28,632 -
Total 95,067,714 147,200,685 50,963 13,272,092 56,501,981 77,375,649
City Savings Bank closely monitors the current and prospective maturity structure of its resources and liabilities and the market condition to guide pricing and
asset/liability allocation strategies to manage its liquidity risks.
In addition, CSB manages liquidity risk by holding sufficient liquid assets of appropriate quality to ensure short-term funding requirements are met and by maintaining
a balanced loan portfolio which is repriced on a regular basis. It seeks to maintain sufficient liquidity to take advantage of interest rate and exchange rate
opportunities when they arise.
It is also the policy of the Group to closely monitor CSB’s risk exposure.
Capital management. Capital includes equity attributable to the equity holders of the parent. The primary objective
of the Group’s capital management is to ensure that it maintains a strong credit rating and healthy capital ratios in
order to support its business and maximize shareholder value.
The Group manages its capital structure and makes adjustments to it, in light of changes in economic conditions. To
maintain or adjust the capital structure, the Group may adjust the dividend payment to shareholders, return capital to
shareholders or issue new shares. The Group is not subject to any externally imposed capital requirements. No
changes were made in the objectives, policies or processes during the periods ended June 30, 2012 and December
31, 2011.
Certain entities within the Group that are registered with the BOI are required to raise minimum amount of capital in
order to avail of their registration incentives. As of June 30, 2012 and December 31, 2011, these entities have
complied with this requirement as applicable.
The Group monitors capital using a gearing ratio, which is net debt divided by equity plus net debt. The Group’s
policy is to keep the gearing ratio at 70% or below at the consolidated level. The Group determines net debt as the
sum of interest-bearing short-term and long-term obligations (comprised of long-term debt, obligations under finance
lease, redeemable preferred shares and payable to preferred shareholders of a subsidiary) less cash and short-term
deposits and temporary advances to related parties.
Gearing ratios of the Group as of June 30, 2012 and December 31, 2011 are as follows:
JUN 2012 DEC 2011
Bank Loans 4,928,162 5,301,008

Long - term debt 80,926,735 80,460,649
Cash and cash equivalents (30,531,371) (29,543,492)
Net Debt (a) 55,323,526 56,218,165
Equity attributable to equity holders of the
parent 97,169,965 94,977,727
Equity and Net Debt (b) 152,493,491 151,195,892
Gearing Ratio (a/b) 36.28% 37.18%
K. FINANCIAL INSTRUMENTS
Set out below is a comparison by category of carrying amounts and fair values of all of the Group’s financial
instruments that are carried in the financial statements at other than fair values.
JUNE 30, 2012 DECEMBER 31, 2011

Carrying Fair Carrying Fair
Amount Value Amount Value
Financial assets
Cash
Cash and cash equivalents 30,531,371 30,531,371 29,543,492 29,543,492
Loans and receivables
Trade and other receivables 22,679,125 22,679,125 22,024,386 22,024,386
53,210,497 53,210,497 51,567,877 51,567,877
AFS
AFS investments 64,482 64,482 74,569 74,569
Total 53,274,979 53,274,979 51,642,446 51,642,446
JUNE 30, 2012 DECEMBER 31, 2011
Carrying Fair Carrying Fair
Amount Value Amount Value
Financial liabilities
Other financial liabilities
Bank loans 4,928,162 4,928,162 5,301,008 5,301,008
Trade and other payables 11,163,871 11,163,871 10,334,999 10,334,999
Derivative liability - - 7,580 7,580
Deposit liabilities - net of current portion 4,907,392 4,907,392 4,472,252 4,456,478

Customers’ deposits 2,289,875 2,289,875 2,170,028 2,170,028
Obligations on power distribution system 293,944 415,192 277,046 419,789

Obligations under finance leases
Fixed rate 54,017,528 65,526,167 52,714,959 67,291,284
Long-term debt
Fixed rate 24,331,841 25,188,713 26,740,138 28,603,315
Floating rate 2,531,832 2,531,832 942,582 942,582
Payable to preferred shareholder of a
subsidiary (floating rate) 45,534 45,534 62,970 62,970
Total 104,509,979 116,996,738 103,023,562 119,590,032
As of June 30, 2012 and December 31, 2011, the group does not have any investment in foreign securities nor has it
issued any traded foreign-denominated debt securities.
Fair Value of Financial Instruments
Fair value is defined as the amount for which an asset could be exchanged or a liability settled between
knowledgeable, willing parties in an arm’s length transaction. Fair values are obtained from quoted market prices,
discounted cash flow models and option pricing models, as appropriate. A financial instrument is regarded as quoted
in an active market if quoted prices are readily available from an exchange, dealer, broker, pricing services or
regulatory agency and those prices represent actual and regularly occurring maket transactions on an arm's length
basis. For a financial instrument with an active market, the quoted market price is used as its fair value. On the other
hand, if transactions are no longer regularly occurring even if prices might be available, and the only observed
transactions are forced transactions or distressed sales, then the market is considered inactive. For a financial
instrument with an inactive market, its fair value is determined using a valuation technique (e.g., discounted cash flow
approach) that incorporates all factors that market participants would consider in setting a price.
The following methods and assumptions are used to estimate the fair value of each class of financial instruments:
Cash and cash equivalents, trade and other receivables and trade and other payables
The carrying amounts of cash and cash equivalents, trade and other receivables and trade and other payables
approximate fair value due to the relatively short-term maturity of these financial instruments.
Fixed-rate borrowings
The fair value of fixed rate interest bearing loans is based on the discounted value of future cash flows using the
applicable rates for similar types of loans.
Variable-rate borrowings and Obligations under finance lease

Where the repricing of the variable-rate interest bearing loan is frequent (i.e., three-month repricing), the carrying
value approximates the fair value. Otherwise, the fair value is determined by discounting the principal plus the known
interest payment using current market rates.
Customers’ deposits
The fair value of bill deposits approximates the carrying values as these deposits earn interest at the prevailing
market interest rate in accordance with regulatory guidelines. The timing and related amounts of future cash flows
relating to transformer and lines and poles deposits cannot be reasonably and reliably estimated for purposes of
establishing their fair values using an alternative valuation technique.
Redeemable preferred shares

The fair values of the redeemable preferred shares are based on the discounted value of future cash flows using the
applicable rates for similar types of borrowings.
AFS investments
The fair values of AFS investments are based on quoted market prices. The publicly-traded equity securities which
are owned by the group are all actively traded in the stock market.
Obligations under Power Distribution System

The fair value of long term obligation on power distribution system is calculated by discounting expected future cash
flows at prevailing market rates.
L. DISCLOSURES
1. Basis of Preparation, Statement of Compliance and Changes in Accounting Policies
Basis of Preparation
The consolidated financial statements of the Group have been prepared on a historical cost basis, except for
derivative financial instruments, AFS investments and investment properties which are measured at fair value, and
agricultural produce and biological assets which are measured at fair value less estimated point-of-sale costs. The
consolidated financial statements are presented in Philippine peso and all values are rounded to the nearest
thousand except for earnings per share and exchange rates and if otherwise indicated.
Statement of Compliance
The consolidated financial statements of the Group have been prepared in compliance with Philippine Financial
Reporting Standards (PFRS).
Changes in Accounting Policies

The accounting policies adopted are consistent with those of the previous financial year except for the amended and
revised PFRS and Philippine Interpretations which the Group has adopted starting January 1, 2011. Adoption of the
following revised and amended PFRS and Philippine Interpretations and improvements to PFRS did not have any
significant impact to the Group’s consolidated financial statements.
PAS 12, Income Taxes - Recovery of Underlying Assets

The amendment to PAS 12 is effective for annual periods beginning on or after January 1, 2012. The amendment
clarified the determination of deferred tax on investment property measured at fair value. The amendment
introduces a rebuttable presumption that deferred tax on investment property measured using the fair value model in
PAS 40, Investment Property, should be determined on the basis that its carrying amount will be recovered through
sale. Furthermore, it introduces the requirement that deferred tax on non-depreciable assets that are measured
using the revaluation model in PAS 16, Property, Plant and Equipment, always be measured on a sale basis of the
asset.
PFRS 7, Financial Instruments: Disclosures - Enhanced Derecognition Disclosure Requirements

The amendment to PFRS 7 is effective for annual periods beginning on or after July 1, 2011. The amendment
requires additional disclosure about financial assets that have been transferred but not derecognized to enable the
user of the Group’s financial statements to understand the relationship with those assets that have not been
derecognized and their associated liabilities. In addition, the amendment requires disclosures about continuing
involvement in derecognized assets to enable the user to evaluate the nature of, and risks associated with, the
entity’s continuing involvement in those derecognized assets.
2. Seasonality of Interim Operations
Operations of hydropower plants are generally affected by climatic seasonality. Seasonality and location have a
direct effect on the level of precipitation. In Luzon where rainy and summer seasons are more pronounced, higher
rainfall is normally experienced in the months of June to September. As such, the hydropower plants located in
Luzon operate at their maximum capacity during this period. In contrast, the hydropower plants in Mindanao
experience a well distributed rainfall throughout the year, with a slightly better precipitation during the months of
December to April. This provides continuous water flow and thus makes it favorable to all ‘run-of-river’ hydropower
plants’ operations.
Any unexpected change in the seasonal aspects will have no material effect on the Group's financial condition or
results of operations.
3. Material Events and Changes
a. AEV Dividend Declaration
On March 1, 2012, the BOD of the Company approved the declaration of a cash dividend of P1.58 a share (P8.725
billion) to all stockholders of record as of March 16, 2012, payable on April 3, 2012.
b. Purchase of AP Shares
On February 6, 2012, the Company bought 31,650,900 common shares of Aboitiz Power Corporation (AP) at a price
of P29.50 per share. This has increased its ownership in AP from 76.40% to 76.83%.
c. Purchase of UBP Shares
On May 11, 2012, the Company purchased 750,000 common shares of Union Bank of the Philippines at a price of
P103.00 per share, increasing its ownership in UBP from 43.27% to 43.39%.
d. Signing of the Memorandum of Agreement with Gazasia Ltd.
On June 5, 2012, the Company signed a Memorandum of Agreement (MOA) with Gazasia Ltd. to formalize their
intention to jointly develop, construct and operate plants that will convert organic waste material into a carbon-
neutral, sustainable and renewable fuel for vehicles in the form of liquid biomethane. Under the MOA, Gazasia Ltd.
will provide technical expertise, specialized equipment and project management, while AEV will provide the core
funding for the project and access to regional markets in the Philippines.
Gazasia Ltd. is a United Kingdom-based company specializing in providing waste-to-fuel solutions.
Except for the above developments and as disclosed in some other portions of this report, no other significant event
occurred that would have a material impact on the registrant and its subsidiaries, and no other known trend, event or
uncertainty came about that had or were reasonably expected to have a material favorable or unfavorable impact on
revenues or income from continuing operations, since the end of the most recently completed fiscal year. There
were also no significant elements of income or loss that did not arise from the continuing operations of the registrant
and its subsidiaries.
Other than those disclosed above, no material off-balance sheet transactions, arrangements, obligations (including
contingent obligations), and other relationships with unconsolidated entities or other persons entities or other
persons were created during the interim period. There were also no events that would trigger substantial direct or
contingent financial obligations or cause any default or accelaration of an existing obligation.
Likewise, there were no other material changes made in such items as: accounting principles & practices, estimates
inherent in the preparation of financial statements, status of long-term contracts, changes in the composition of the
issuer, and reporting entity resulting from business combinations or dispositions.
Lastly, there were no changes in estimates of amounts reported in prior interim period and financial year that would
have a material effect in the current interim period.
4. Material Adjustments
There were no material, non-recurring adjustments made during period that would require appropriate disclosures.
All other adjustments are of a normal recurring nature.
5. Contingencies
There are legal cases filed against certain subsidiaries in the normal course of business. Management and its legal
counsel believe that the subsidiaries have substantial legal and factual bases for their position and are of the opinion
that losses arising from these cases, if any, will not have a material adverse impact on the consolidated financial
statements.
AP obtained standby letters of credit (SBLC) and is acting as surety for the benefit of certain subsidiaries and
associates in connection with loans and credit accommodations.
ABOITIZ EQUITY VENTURES, INC. & SUBSIDIARIES
AGING OF RECEIVABLES
AS OF : JUN 30/2012
(amts in P000's)
30 Days 60 Days 90 Days Over 90 Days Total
Trade Receivables
Transport Services 324,950 25,765 1,790 8,025 360,530
Power 5,663,357 605,975 255,362 1,732,148 8,256,842
Banking 2,106,265 1,242,628 1,239,026 7,677,977 12,265,896
Food Manufacturing 1,038,028 13,861 (2,767) 55,837 1,104,959
Holding and Others 141,422 6,470 4,539 10,819 163,250
9,274,022 1,894,699 1,497,950 9,484,806 22,151,477
Others 1,195,309 108,067 12,352 188,108 1,503,836
10,469,331 2,002,766 1,510,302 9,672,914 23,655,313
Less Allowance for Doubtful Accounts 976,188
22,679,125
ACCOUNTS RECEIVABLE DESCRIPTION
Type of Receivable Nature / Description Collection Period

Trade uncollected billings to customers for sale of power, goods and services 30 - 60 days
Non-Trade claims, operating cash advances and advances to suppliers & employees 30 - 120 days
NORMAL OPERATING CYCLE

Power Subsidiaries
Distribution - 60 days
Generation - 65 days
Food Subsidiary - 90 days
Aviation Subsidiary - 60 days
Real Estate Subsidiary - 30 days
Transport Subsidiary - 40 days

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COVER SHEET

( Company's Full Name )

CATHERINE R. ATAY (032) 411-1800

Fiscal Year Annual Meeting

Secondary License Type, if Applicable

To be accomplished by SEC Personnel concerned

File Number LCU

Document I.D. Cashier

Remarks = pls. Use black ink for scanning purposes

SEC FORM 17-

QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES

1. For the quarterly period ended June 30, 2012

2. Commission identification number CE02536 3. BIR Tax Identification No. 003-

6. Industry Classification Code: (SEC Use Only)

7. Address of issuer's principal office Postal Code

Gov. Manuel A. Cuenco Avenue, Kasambagan, Cebu City, Philippines 6000

8. Issuer's telephone number, including area code

Title of each Class Number of shares of common

Common stock, P1.00 par value 5,521,871,821

Total debt P85,854,897,000

11. Are any or all of the securities listed on a Stock Exchange?

Philippine Stock Exchange Common

Item 1. Financial Statements.

Please refer to the financial statements and schedules attached herewith.

Item 2. Management's Discussion and Analysis of Financial Condition and Results of

Top Five Key Performance Indicators

1. EQUITY IN NET EARNINGS OF INVESTEES

Manner of Computation: Investee's Net Income (Loss) x Investor's % ownership -

2. EARNINGS BEFORE INTEREST, TAXES, DEPRECIATION

3. CASH FLOW GENERATED

Current ratio is a measurement of liquidity, calculated by dividing total current

JAN-JUN 2012 JAN-JUN 2011

AEV's consolidated comprehensive income attributable to equity holders correspondingly rose by

Changes in Registrant’s Resources, Liabilities and Shareholders Equity

d. Investments in and Advances to Associates increased by P1.1 billion (P49.89 billion vs

1. Continued growth in the Power Group’s attributable capacity

- Rehabilitation of the Binga Hydro Power Project

- Rehabilitation of the Tiwi-Makban Geothermal Power Facilities

AboitizPower’s 100%-owned AP Renewables, Inc. (APRI) is currently undertaking the

300 MW Coal-fired Power Plant in Davao. AboitizPower, through 100%-owned subsidiary

• Hedcor is conducting feasibility studies for potential hydropower projects located in

2. Participation in the Government’s Privatization Program for its Power Assets

Market and Industry Developments

Open Access and Retail Competition

(a) Establishment of the WESM;

- Retail Electricity Suppliers (RES) duly licensed by the ERC

JAN-JUN/12 JAN-JUN/11 APR-JUN/12 APR-JUN/11

REVENUES 40,344,654 35,887,849 20,765,755 18,777,010

COSTS AND EXPENSES 29,550,900 24,403,900 15,429,273 13,255,614

GROSS PROFIT 10,793,753 11,483,949 5,336,482 5,521,396

OTHER INCOME (CHARGES)

4,941,066 2,082,628 2,705,964 1,715,145

INCOME BEFORE INCOME TAX 15,734,819 13,566,577 8,042,446 7,236,541

NET INCOME 14,907,168 12,827,215 7,640,800 6,969,459

14,907,168 12,827,215 7,640,800 6,969,459

Earnings Per Common Share **

JAN-JUN/12 JAN-JUN/11 APR-JUN/12 APR-JUN/11

Profit for the period attributable to: