Financial Condition

The Group maintains a prudent financial policy as it engages to a more competitive and challenging environment. The Group’s Statement of Financial Position reflects stable financial growth. Total resources including its newly acquired subsidiaries as of December 31, 2011 amounted to Php129.00 billion posted an increase of 32.94% compared to Php97.03 billion as of December 31, 2010. Cash and cash equivalents increased by 37.64% from Php22.03 billion in 2010 to Php30.32 billion in 2011 due to efficient collection of receivables and proceeds from bonds issuance as part of the company’s financing activities. A 25.67% increase from its current and non-current trade and other receivables – Php37.39 billion as of December 31, 2011 compared to Php29.75 billion as of December 31, 2010, was due to higher sales for the period. An increase by 210.15% from Php6.29 billion in 2010 to Php19.50 billion in 2011 in residential and condominium units for sale pertains to additional construction cost attributable to ongoing projects, including on-going projects of newly acquired subsidiaries. Property development costs increased by 130.47% from last year-end’s amount of Php3.80 billion to Php8.75 billion in 2011 due to the costs attributable to the development of various projects and including on-going projects of newly acquired subsidiaries. The company shows steady liquid position by having current assets amounting to Php77.66 billion in 2011 with an increase of 65.91% from December 31, 2010 balance of Php46.81 billion. On the other hand the group’s current obligations stood at Php23.16 billion which reflected a 33.01% increase year on year and this is the result of currently maturing financial commitments of the company. The group investment in available-for-sale securities decreased by 58.27%, from Php6.21 billion in 2010 to Php2.59 billion in 2011 was due to disposal and market value changes of its different invested securities. Trade and other payables amounted to Php7.30 billion and Php4.04 billion as of December 31, 2011 and 2010, respectively. The increase of 80.72% was due to an increase in amounts payable to the Company’s suppliers and contractors in relation to its real estate developments and consolidation of new subsidiaries. Current customer’s deposits as of December 31, 2011 amounted to P3.61 billion compared to Php1.01 billion as of December 31, 2010 with a 256.37% increase due to aggressive marketing and pre-sales of various projects. The combined effect of current and non-current deferred income on real estate sales increased by 38.00% which amounted to Php5.26 billion as of December 31, 2011 compared to Php3.81 billion as of December 31, 2010 due to increase in unearned revenue. The Interest-bearing loans and borrowings current and non-current amounted to Php7.17 billion representing a 3.66% decrease from previous year-end’s Php7.44 billion mainly due to principal payments. Other non-current liabilities amounted to P2.60 billion from P1.02 billion as of December 31, 2011 and 2010, respectively. The increase of 159.69% was due to increase in deferred rent arising from new lease contracts. On the other hand, bonds payable posted a net increase of 60.87% due to new issuance and settlement. Total Equity (including minority interest) increased by 24.36% from Php58.52 billion as of December 31, 2010 to Php72.77 billion as of December 31, 2011 due to the Group’s continuous profitability.

The top five (5) key performance indicators of the Group are shown below:

	2011	2010
Current Ratio *1	3.35:1	2.69:1
Quick Ratio *2	1.31:1	1.27:1
Debt to Equity Ratio *3	0.34:1	0.27:1
Return on Assets *4	6.23%	5.18%
Return on Equity *5	13.18%	8.70%

*1 – Current Assets / Current Liabilities
*2 – Cash and Cash Equivalents / Current Liabilities
*3 – Interest Bearing Loans and Borrowings / Equity
*4 – Net Income / Total Assets (Computed using figures attributable only to parent company shareholders)
*5 – Net Income / Equity (Computed using figures attributable only to parent company shareholders)

With its strong financial position, the Group will continue investing in and pursuing expansion activities as it focuses on identifying new markets, maintaining established markets and tapping business opportunities.