Universal Robina Corp Annual Report 2018

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COVER SHEET
for
AUDITED FINANCIAL STATEMENTS
SEC Registration Number
9 1 7 0
COMPANY NAME
U N I V E R S A L R O B I N A C O R P O R A T I O N A
N D S U B S I D I A R I E S
PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province )
8 t h F l o o r , T e r a T o w e r , B r i d g e t
o w n e , E . R o d r i g u e z , J r . A v e n u e
( C 5 R o a d ) , U g o n g N o r t e , Q u e z o
n C i t y , M e t r o M a n i l a
Form Type Department requiring the report Secondary License Type, If Applicable
1 7 - A
COMPANY INFORMATION
Company’s Email Address Company’s Telephone Number Mobile Number
N/A 516-9888 N/A
No. of Stockholders Annual Meeting (Month / Day) Fiscal Year (Month / Day)
1,012 Last Wednesday of May 12/31
CONTACT PERSON INFORMATION

The designated contact person MUST be an Officer of the Corporation
Name of Contact Person Email Address Telephone Number/s Mobile Number
Mr. Francisco Del Mundo [email protected] (02) 516-9822 +63 998 840 0429
CONTACT PERSON’s ADDRESS
10th Floor, Tera Tower, Bridgetowne, E. Rodriguez Jr. Avenue (C5 Road), Ugong Norte, Quezon City,
Metro Manila
NOTE 1 : In case of death, resignation or cessation of office of the officer designated as contact person, such incident shall be reported to the Commission within
thirty (30) calendar days from the occurrence thereof with information and complete contact details of the new contact person designated.
2 : All Boxes must be properly and completely filled-up. Failure to do so shall cause the delay in updating the corporation’s records with the Commission
and/or non-receipt of Notice of Deficiencies. Further, non-receipt of Notice of Deficiencies shall not excuse the corporation from liability for its deficiencies.
*SGVFS035342*
SECURITIES AND EXCHANGE COMMISSION
SEC FORM 17-A
ANNUAL REPORT PURSUANT TO SECTION 17

OF THE SECURITIES REGULATION CODE AND SECTION 141
OF THE CORPORATION CODE OF THE PHILIPPINES
1. For the year ended December 31, 2018
2. SEC Identification Number 9170
3. BIR Tax Identification No. 000-400-016-000
4. Exact name of issuer as specified in its charter Universal Robina Corporation
5. Quezon City, Philippines

Province, Country or other jurisdiction of incorporation or organization
6. Industry Classification Code: (SEC Use Only)
7. 8th Floor, Tera Tower, Bridgetowne, E. Rodriguez, Jr. Avenue

(C5 Road), Ugong Norte, Quezon City, Metro Manila 1110
Address of principal office Postal Code
8. (632) 633-7631 to 40 / (632) 516-9888

Issuer's telephone number, including area code
9. Not Applicable
Former name, former address, and former fiscal year, if changed since last report.
10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA
Number of Shares of Common Stock

Title of Each Class Outstanding and Amount of Debt
Common Shares, P1.00

Par value 2,204,161,868 shares
11. Are any or all of these securities listed on the Philippine Stock Exchange.
Yes [ / ] No [ ]
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12. Check whether the issuer:
a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17 thereunder
or Section 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 that the registrant was required to file such reports);
Yes [ / ] No [ ]
b) has been subject to such filing requirements for the past ninety (90) days.
Yes [ / ] No [ ]
13. State the aggregate market value of the voting stock held by non-affiliates of the registrant.
The aggregate market value of the voting stock held by non-affiliates is P

=123,384,423,284.
APPLICABLE ONLY TO ISSUERS INVOLVED IN

INSOLVENCY/SUSPENSION OF PAYMENTS PROCEEDINGS
DURING THE PRECEDING FIVE YEARS:
14. Check whether the issuer has filed all documents and reports required to be filed by Section 17 of the
Code subsequent to the distribution of securities under a plan confirmed by a court or the
Commission.
Not Applicable
DOCUMENTS INCORPORATED BY REFERENCE
If any of the following documents are incorporated by reference, briefly describe them and identify
the part of SEC Form 17-A into which the document is incorporated:
a) Any annual report to security holders; None
b) Any proxy or information statement filed pursuant to SRC Rule 20 and

17.1(b); None
c) Any prospectus filed pursuant to SRC Rule 8.1-1 None

TABLE OF CONTENTS
Page No.
PART I - BUSINESS AND GENERAL INFORMATION

Item 1 Business 1
Item 2 Properties 9
Item 3 Legal Proceedings 10
Item 4 Submission of Matters to a Vote of Security Holders 10
PART II - OPERATIONAL AND FINANCIAL INFORMATION

Item 5 Market for Registrant’s Common Equity and
Related Stockholder Matters 11
Item 6 Management’s Discussion and Analysis or
Plan of Operation 13
Item 7 Financial Statements 26
Item 8 Changes in and Disagreements with Accountants and
Financial Disclosure 26
Item 9 Independent Public Accountant and Audit Related Fees 27
PART III - CONTROL AND COMPENSATION INFORMATION

Item 10 Directors and Executive Officers of the Registrant 28
Item 11 Executive Compensation 34
Item 12 Security Ownership of Certain Beneficial Owners
and Management 35
Item 13 Certain Relationships and Related Transactions 37
PART IV - EXHIBITS AND SCHEDULES

Item 14 (a) Exhibits 38
(b) Reports on SEC Form 17-C (Current Report) 39
SIGNATURES 40
INDEX TO FINANCIAL STATEMENTS AND

SUPPLEMENTARY SCHEDULES 42
PART I - BUSINESS AND GENERAL INFORMATION
Item 1. Business
Universal Robina Corporation (URC or the Company) is one of the largest branded food product
companies in the Philippines, with the distinction of being called the country’s first “Philippine
Multinational”. URC has established a strong presence in ASEAN and has further expanded its reach to
the Oceania region. URC was founded in 1954 when Mr. John Gokongwei, Jr. established Universal
Corn Products, Inc., a cornstarch manufacturing plant in Pasig. The Company is involved in a wide range
of food-related businesses, including the manufacture and distribution of branded consumer foods,
production of hogs and poultry, manufacture of animal feeds and veterinary products, flour milling, and
sugar milling and refining. URC has also ventured in the renewables business for sustainability through
Distillery and Cogeneration divisions. In the Philippines, URC is a dominant player with leading market
shares in Snacks, Candies and Chocolates, and is a significant player in Biscuits. URC is also the largest
player in the Ready-to-Drink (RTD) Tea market and Cup Noodles, and is a competitive 3rd player in the
Coffee business. With six mills operating as of December 31, 2018, URC Sugar division remains to be
the largest producer in the country based on capacity.
No material reclassifications, merger, consolidation, or purchase or sale of significant amount of assets

(not ordinary) were made in the past three years (2016-2018) except those mentioned in the succeeding
paragraphs. The Company’s financial condition has remained solid in the said period.
The Company operates its food business through operating divisions and wholly-owned or majority-
owned subsidiaries that are organized into three business segments: branded consumer foods, agro-
industrial products and commodity food products.
Branded consumer foods (BCF) segment, including packaging division, is the Company’s largest segment
contributing about 80.2% of revenues for the year ended December 31, 2018. Established in the 1960s,
the Company’s branded consumer foods segment manufactures and distributes a diverse mix of salty
snacks, chocolates, candies, biscuits, packaged cakes, beverages and instant noodles. The manufacture,
distribution, sales, and marketing activities of BCF group are carried out mainly through the Company’s
branded consumer foods division consisting of snack foods, beverage, and noodles, although the
Company conducts some of its branded consumer foods operations through its majority-owned
subsidiaries and joint venture companies. The Company established URC BOPP Packaging and URC
Flexible Packaging divisions to engage in the manufacture of bi-axially oriented polypropylene (BOPP)
films for packaging companies and flexible packaging materials to cater various URC branded products.
Both manufacturing facilities are located in Simlong, Batangas and are ISO 9001:2008 certified for
Quality Management Systems.
Majority of URC’s consumer foods business is conducted in the Philippines but has expanded more
aggressively into other ASEAN markets, primarily through its wholly-owned subsidiary, URC
International. In 2014, URC has expanded its reach to the Oceania region through the acquisition of
Griffin’s Foods Limited, a leading snacks player in New Zealand, which owns many established brands
such as Griffin’s, Cookie Bear, Eta, Huntley & Palmer’s, and Nice & Natural. In 2016, URC completed
the acquisition of Consolidated Snacks Pty Ltd., which trades under Snacks Brand Australia (SBA), the
second largest salty snacks player in Australia with a wide range of chips including the iconic brands like
Kettle, Thins, CC’s and Cheezels. The international operations contributed about 33.8% of the
Company’s revenues for the year ended December 31, 2018.
The Company’s agro-industrial products segment operates four segments: (1) Robina Farm-Hogs, (2)
Robina Farm-Poultry, (3) the manufacturing and distribution of animal feeds (URC Feeds), and (4) the
production and distribution of animal health products (URC Veterinary Drugs). This segment contributed
approximately 9.2% of sale of goods and services in 2018.
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The Company’s commodity food products segment operates three divisions: (1) sugar milling and
refining through Sugar division, (2) flour milling and pasta manufacturing through Flour division, and (3)
renewable energy development through Distillery and Cogeneration divisions. This segment contributed
approximately 10.6% of aggregate sale of goods and services in 2018.
The Company is a core subsidiary of JG Summit Holdings, Inc. (JGSHI), one of the largest and most
diversified conglomerates in the Philippines. JGSHI has substantial business interests in air
transportation, property development and hotel management, banking and financial services, and
petrochemicals (JG Summit owns the only naphtha cracker complex in the country). It also has non-
controlling minority stakes in the country’s leading telecommunications, power generation and electricity
distribution companies, as well as in a leading Singapore property company.
The percentage contribution to the Company’s revenues for each of the three periods ended
December 31, 2016 (three months), December 31, 2017 (one year) and December 31, 2018 (one year) by
each of the Company’s principal business segments is as follows:
December 31, 2016 December 31, 2017 December 31, 2018

(Three Months) (One Year) (One Year)
Branded Consumer Foods Group 83.1% 82.5% 80.2%
Agro-Industrial Group 7.7% 8.1% 9.2%
Commodity Foods Group 9.2% 9.4% 10.6%
100.00% 100.00% 100.00%
The geographic percentage distribution of the Company’s revenues for each of the three periods
December 31, 2016 (three months), December 31, 2017 (one year) and December 31, 20187 (one year) is
as follows:

(Three Months) (One Year) (One Year)
Philippines 65.8% 65.7% 66.2%
International 34.2% 34.3% 33.8%
100.00% 100.00% 100.00%
Customers
None of the Company’s businesses is dependent upon a single customer or a few customers that a loss of
anyone of them would have a material adverse effect on the Company. The Company has no single
customer that, based upon existing orders, will account for 20.0% or more of the Company’s total sale of
goods and services.
Distribution, Sales and Marketing
The Company has developed an effective nationwide distribution chain and sales network that it believes
provide its competitive advantage. The Company sells its branded food products primarily to
supermarkets, as well as directly to top wholesalers, large convenience stores, large scale trading
companies and regional distributors, which in turn sell its products to other small retailers and down line
markets. The Company’s branded consumer food products are distributed to approximately 120,000
outlets in the Philippines and sold through its direct sales force and regional distributors. URC intends to
enlarge its distribution network coverage in the Philippines by increasing the number of retail outlets that
its sales force and distributors directly service.
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The branded consumer food products are generally sold by the Company from salesmen to wholesalers or
supermarkets, and regional distributors to small retail outlets. 15 to 30-day credit terms are extended to
wholesalers, supermarkets and regional distributors.
The Company believes that its emphasis on marketing, product innovation and quality, and strong brand
equity has played a key role in its success in achieving leading market shares in the different categories
where it competes. In particular, URC launched “Jack ‘n Jill” as a master umbrella brand for all its snack
food products in order to enhance customer recognition. URC devotes significant expenditures to support
advertising and branding to differentiate its products and further expand market share both in the
Philippines and in its overseas markets, including funding for advertising campaigns such as television
commercials and radio and print advertisements, as well as trade and consumer promotions.
For URC agro-industrial group (AIG), both piggery and poultry farms have been accredited as GAHP
(Good Animal Husbandry Practice), 100% compliant to Good Manufacturing Practices (GMP) and its
meats and eggs have been certified as No Hormone, and Antibiotic residue free. This has allowed AIG to
aggressively capture the quality conscious meat segment of the country as embodied by the Robina Farms
brand with its key positioning of Robina raised, Family safe products. Similarly, the Feeds business
headed by their brand champions such as Uno+, Supremo Gamefowl, and Top Breed Dog meals
increased its distribution network supported by the Kabalikat Farm Program covering Hog and Gamefowl
raisers.
Competition
The BCF business is highly competitive and competition varies by country and product category. The
Company believes that the principal competitive factors include price, taste, quality, convenience, brand
recognition and awareness, advertising and marketing, availability of products and ability to get its
product widely distributed. Generally, the Company faces competition from both local and multinational
companies in all of its markets. In the Philippines, major competitors in the market segments in which it
competes include Liwayway Marketing Corporation, Monde M.Y. San Corporation, Columbia Foods
International, Republic Biscuit Corporation, Suncrest Foods Inc., Del Monte Phil. Inc., Monde Nissin
Corporation, Nestle Philippines Inc., San Miguel Pure Foods Company Inc. and Kraft Foods Inc.
Internationally, major competitors include Procter & Gamble, Effem Foods/Mars Inc., Lotte Group,
Perfetti Van Melle Group, Mayora Inda PT, Apollo Food, Frito-Lay, Nestlé S.A., PepsiCo, Inc., Cadbury
Schweppes PLC and Kraft Foods International.
URC AIG has four major segments namely: Commercial Feeds, Commercial Drugs, Robina Farm-Hogs,
and Robina Farm-Poultry. The market for AIG is highly fragmented, very competitive, cyclical and
principally domestic. The Company is focused and known in providing Total Agri-Solution and farm
management expertise including state of the art diagnostic capability.
The Company’s commercial feeds segment principal competitive factors are quality, brand equity, credit
term and price. It faces competition from local, multinational companies, and even foreign companies in
all of its markets. Since the business is highly fragmented, it also faces increasing speed of change in the
market particularly customer preferences and lifestyle. The Company’s principal competitors are San
Miguel Corporation (B-Meg and Integra), UNAHCO (Sarimanok, Thunderbird, GMP and Pigrolac), and
Aboitiz Inc. (Pilmico). The market for commercial drugs is composed of both local and multinational
companies. Furthermore, URC AIG is one of the only few Philippine companies in this market. The
Company’s principal competitors are UNAHCO (Univet), Novartis, and Excellence Poultry and
Livestock Specialist.
The Company believes that the principal competitive factors for hogs are quality, reliability of supply,
price, and proximity to market. The Company’s principal competitors are San Miguel Corp. (Monterey),
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Aboitiz Inc. (Pilmico) and Foremost Farms, Inc. The Company considers quality, price, egg productivity,
and disease resistance as the principal competitive factors of its poultry business. The Company’s
principal competitors are Bounty Farms, Inc., Foremost Farms, Inc., Brookdale Farms, and Heritage Vet
Corp. for layer chicks.
Enhancement and Development of New Products
The Company intends to continuously introduce innovative new products, product variants and line
extensions in the snackfoods (snacks, biscuits, candies, chocolates and bakery), beverage, and grocery
(instant noodles and tomato-based) products. This year alone, the Company’s Branded Consumer Foods
Philippines has introduced 22 new products, which contributed 1.61% to its total sales.
The Company supports the rapid growth of the business through line expansion, construction and
acquisition of plants.
Raw Materials
A wide variety of raw materials are required in the manufacture of the Company’s food products,
including corn, wheat, flour, sugar, robusta coffee beans, palm oil and cocoa powder. Some of which are
purchased domestically and some of which are imported. The Company also obtains a major portion of
its raw materials from its commodity food products segments, such as flour and sugar, and flexible
packaging materials from its packaging segment. A portion of flexible packaging material requirements
is also purchased both locally and from abroad (Vietnam and Indonesia), while aseptic packaging is
purchased entirely from China.
For its feeds segment, the Company requires a variety of raw materials, including corn grains, soya beans
and meals, feed-wheat grains, wheat bran, wheat pollard, soya seeds, rice bran, copra meal and fish meal.
The Company purchases corn locally from corn traders and imports feed-wheat from suppliers in North
America, Europe and China. Likewise, soya seeds are imported by the Company from the USA. For its
animal health products, the Company requires a variety of antibiotics and vitamins, which it acquires
from suppliers in Europe and Asia. The Company maintains approximately two months physical
inventory and one month in-transit inventory for its imported raw materials.
For its hogs business, the Company requires a variety of raw materials, primarily close-herd breeding
stocks. For its poultry business, the Company purchases the parent stock for its layer chicks from Dekalb
from Europe. Robina Farms obtains all of the feeds it requires from its Commercial Feeds segment and
substantially all of the minerals and antibiotics from its Commercial Drugs division as part of its vertical
integration. The Company purchases vaccines, medications and nutritional products from a variety of
suppliers based on the values of their products.
The Company obtains sugar cane from local farmers. Competition for sugar cane supply is very intense
and is a critical success factor for its sugar business. Additional material requirements for the sugar cane
milling process are either purchased locally or imported.
The Company generally purchases wheat, the principal raw material for its flour milling and pasta
business, from suppliers in the United States, Canada and Australia.
The Company’s policy is to maintain a number of suppliers for its raw and packaging materials to ensure
a steady supply of quality materials at competitive prices. However, the prices paid for raw materials
generally reflect external factors such as weather conditions, commodity market fluctuations, currency
fluctuations and the effects of government agricultural programs. The Company believes that alternative
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sources of supply of the raw materials that it uses are readily available. The Company’s policy is to
maintain approximately 30 to 90 days of inventory.
Patents, Trademarks, Licenses, Franchises, Concessions or Labor Contract
The Company owns a substantial number of trademarks registered with the Bureau of Trademarks subject
to the provisions of RA 8293 also known as the Intellectual Property Code of the Philippines (IP Code)
and recorded with the Intellectual Property Office of the Philippines (IPPHL). In addition, certain
trademarks have been strategically registered in other countries in which it operates. These trademarks
are important in the aggregate because brand name recognition is a key factor in the success of many of
the Company’s product lines. Trademark registration is a means to protect these brand names from
counterfeiting and infringement.
Trademarks registered under RA 166, also known as the Trademark Law, are registered for twenty (20)
years. Upon renewal, these trademarks become subject to the IP Code having a registration period of ten
(10) years and renewable thereafter. In general, trademarks in other countries have a ten-year registration
which are renewable as well, allowing relatively a lifetime of territorial and limited trademark
registration.
The Company also uses brand names under licenses from third parties. These licensing arrangements are
generally renewable based on mutual agreement. The Company’s licensed brands include Nissin Cup
Noodles, Nissin Yakisoba Instant Noodles and Nissin Pasta Express, Vitasoy, Calbee and B’lue, among
others.
Licensing Agreements are voluntarily registered with the Documentation, Information and Technology
Transfer Bureau of the IPPHL.
Regulatory Overview
As manufacturer of consumer food and commodity food products, the Company is required to guarantee
that the products are pure and safe for human consumption, and that the Company conforms to standards
and quality measures prescribed by the Bureau of Food and Drugs (BFAD).
The Company’s sugar mills are licensed to operate by the Sugar Regulatory Administration (SRA) and
renew its sugar milling licenses at the start of every crop year. The Company is also registered with the
Department of Energy as a manufacturer of bio-ethanol and as a renewable energy developer.
All of the Company’s livestock and feed products have been registered with and approved by the Bureau
of Animal Industry, an agency of the Department of Agriculture which prescribes standards, conducts
quality control test of feed samples, and provides technical assistance to farmers and feed millers.
Some of the Company’s projects, such as the sugar mill and refinery, bioethanol production, biomass
power cogeneration and hog and poultry farm operations are registered with the Board of Investments
(BOI) which allows the Company certain fiscal and non-fiscal incentives.
Effects of Existing or Probable Governmental Regulations on the Business
The Company operates its businesses in a highly regulated environment. These businesses depend upon
licenses issued by government authorities or agencies for their operations. The suspension or revocation
of such licenses could materially and adversely affect the operation of these businesses.
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Research and Development
The Company develops new products and variants of existing product lines, researches new processes and
tests new equipment on a regular basis in order to maintain and improve the quality of the Company’s
food products. In Philippine operations alone, about =
P52 million was spent for research and development
activities in 2018 and approximately =
P91 million and =P32 million in 2017 and in three-month period
ended December 31, 2016, respectively.
The Company has research and development staff for its branded consumer foods and packaging
divisions located in its research and development facility in Metro Manila and in each of its
manufacturing facilities. In addition, the Company hires experts from all over the world to assist its
research and development staff. The Company conducts extensive research and development for new
products, line extensions for existing products and for improved production, quality control and
packaging as well as customizing products to meet the local needs and tastes in the international markets.
The Company’s commodity foods segment also utilizes this research and development facility to improve
their production and quality control. The Company also strives to capitalize on its existing joint ventures
to effect technology transfers.
The Company has a dedicated research and development team for its agro-industrial business that
continually explores advancements in feeds, breeding and farming technology. The Company regularly
conducts market research and farm-test for all of its products. As a policy, no commercial product is
released if it was not tested and used in Robina Farms.
Transactions with Related Parties
The largest shareholder, JG Summit Holdings, Inc. (JG Summit or JGSHI), is one of the largest and most
diversified conglomerates listed on the Philippine Stock Exchange. JG Summit provides the Company
with certain corporate center services including finance, strategy and development, government affairs,
governance and management systems, internal audit, procurement, human resources, general counsel,
information technology, digital transformation office, and advertising and public relations. JG Summit
also provides the Company with valuable market expertise in the Philippines as well as intra-group
synergies. See Note 34 to Consolidated Financial Statements for Related Party Transactions.
Costs and Effects of Compliance with Environmental Laws
The operations of the Company are subject to various laws and regulations enacted for the protection of
the environment, including Philippine Clean Water Act (R.A. No. 9275), Clean Air Act (R.A. No. 8749),
Ecological Solid Waste Management Act (R.A. No. 9003), Toxic Substances and Hazardous and Nuclear
Wastes Control Act (R.A. No. 6969), Pollution Control Law (R.A. No. 3931, as amended by P.D. 984),
the Environmental Impact Statement System (P.D. 1586), the Laguna Lake Development Authority
(LLDA) Act of 1966 (R.A. No. 4850), Renewable Energy Act (R.A. No. 9513), Electric Power Industry
Reform Act (R.A. No. 9136) and Environmental Compliance Certificates (ECCs) requirements of P.D.
No. 1586, in accordance with DENR Administrative Order No. 2003-30. The Company believes that it
has complied with all applicable environmental laws and regulations, an example of which is the
installation of wastewater treatment systems in its various facilities. Compliance with such laws does not
have, and in the Company’s opinion, is not expected to have, a material effect upon the Company’s
capital expenditures, earnings or competitive position. As of December 31, 2018, the Company has
invested about =P227 million in wastewater treatment in its facilities in the Philippines.
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Employees and Labor
As of December 31, 2018, the number of permanent full-time employees engaged in the Company’s
respective businesses is 14,239 and are deployed as follows:
Business Company or Division Number

BCF, Packaging Division, CCPI, URCI,
Branded consumer foods URCCCL, NURC, HURC, CURC and DURBI 10,277
Agro-industrial products Robina Farms, UCP & Robichem 1,272
Commodity food products:
Sugar Sugar 1,021
Flour & pasta Flour 384
Bio-ethanol & renewable energy Distillery and Cogeneration 488
Corporate 797
14,239
For most of the companies and operating divisions, collective bargaining agreements between the relevant
representatives of the employees’ union and the subsidiary or divisions are in effect. The collective
bargaining agreements generally cover a five-year term with a right to renegotiate the economic
provisions of the agreement after three years, and contain provisions for annual salary increases, health
and insurance benefits, and closed-shop arrangements. The collective bargaining agreements are with 26
different unions. For the year 2018, 7 collective bargaining agreements were signed and concluded with
the labor unions which are as follows: URC BCFG Rosario & Bagong Ilog (Consolidated Workers Union
(CWU)), URC Indonesia (Federation of Indonesia Metal Workers Union (FSPMI)), URC SURE Balayan
R&F (URC SURE Balayan Labor Union Chapter - NACUSIP), URC BCFG ESMO (United Labor Union
of URC ESMO Plant), URC BCFG Pampanga (Cebu Industrial Management Corporation Employees
Union – Workers’ Solidarity Network (CIMCEU-WSN)), URC BCFG Canlubang (URC Canlubang Plant
Employees Union – Organized Labor Organization in Line Industries and Agriculture (CPEU-OLALIA))
and URC BCFG MCD (MCD Monthly Independent Union (MIU)). The Company believes that good
labor relations generally exist throughout the Company’s subsidiaries and operating divisions.
The Company has a funded, noncontributory defined benefit retirement plan covering all of the regular
employees of URC. The plan provides retirement, separation, disability and death benefits to its
members. The Company, however, reserves the right to change the rate and amounts of its contribution at
any time on account of business necessity or adverse economic conditions. The funds of the plan are
administered and managed by the trustees. Retirement cost charged to operations, including net interest
cost, amounted to =
P185 million, =
P176 million and =P48 million in 2018, 2017 and three-month period
ended December 31, 2016, respectively.
Risks
The major business risks facing the Company and its subsidiaries are as follows:
1) Competition
The Company and its subsidiaries face competition in all segments of its businesses both in the Philippine
market and in international markets where it operates. The Philippine food industry in general is highly
competitive. Although the degree of competition and principal competitive factors vary among the
different food industry segments in which the Company participates, the Company believes that the
principal competitive factors include price, product quality, brand awareness and loyalty, distribution
network, proximity of distribution outlets to customers, product variations and new product introductions.
(See page 3, Competition, for more details)
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The Company’s ability to compete effectively is due to continuous efforts in sales and marketing of its
existing products, development of new products and cost rationalization.
2) Financial Market
The Company has foreign exchange exposure primarily associated with fluctuations in the value of the
Philippine Peso against the U.S. dollar and other foreign currencies. Majority of the Company’s revenues
is denominated in Pesos, while certain of its expenses, including debt services and raw material costs, are
denominated in U.S. dollars or based on prices determined in U.S. dollars. In addition, the majority of the
Company’s debt is denominated in foreign currencies. Prudent fund management is employed to
minimize effects of fluctuations in interest and currency rates.
3) Raw Materials
The Company’s production operations depend upon obtaining adequate supplies of raw materials on a
timely basis. In addition, its profitability depends in part on the prices of raw materials since a portion of
the Company’s raw material requirements is imported including packaging materials. To mitigate these
risks, alternative sources of raw materials are used in the Company’s operations.
(See page 4, Raw Materials, for more details)
4) Food Safety Concerns
The Company’s business could be adversely affected by the actual or alleged contamination or
deterioration of certain of its flagship products, or of similar products produced by third parties. A risk of
contamination or deterioration of its food products exists at each stage of the production cycle, including
the purchase and delivery of food raw materials, the processing and packaging of food products, the
stocking and delivery of the finished products to its customers, and the storage and display of finished
products at the points of final sale. The Company conducts extensive research and development for new
products, line extensions for existing products and for improved production, quality control and
packaging as well as customizing products to meet the local needs and tastes in the international markets
for its food business. For its agro-industrial business, its researchers are continually exploring
advancements in breeding and farming technology. The Company regularly conducts market research
and farm-test for all of its products. Moreover, the Company ensures that the products are safe for human
consumption, and that the Company conforms to standards and quality measures prescribed by regulatory
bodies such as BFAD, SRA, Bureau of Animal Industry, and Department of Agriculture.
5) Mortalities
The Company’s agro-industrial business is subject to risks of outbreaks of various diseases. The
Company faces the risk of outbreaks of foot and mouth disease, which is highly contagious and
destructive to susceptible livestock such as hogs, and avian influenza or bird flu for its chicken farming
business. These diseases and many other types could result to mortality losses. Disease control measures
are adopted by the Company to minimize and manage this risk.
6) Intellectual Property Rights
Approximately 80.2% of the Company’s sale of goods and services in 2018 were from its branded
consumer foods segment. The Company has put considerable efforts to protect the portfolio of
intellectual property rights, including trademark registrations. Security measures are continuously taken
to protect its patents, licenses and proprietary formulae against infringement and misappropriation.
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7) Weather and Catastrophe
Severe weather condition may have an impact on some aspects of the Company’s business, such as its
sugar cane milling operations due to reduced availability of sugar cane. Weather condition may also
affect the Company’s ability to obtain raw materials and the cost of those raw materials. Moreover,
Philippines have experienced a number of major natural catastrophes over the years including typhoons,
droughts, volcanic eruptions, and earthquakes. The Company and its subsidiaries continually maintain
sufficient inventory level to neutralize any shortfall of raw materials from major suppliers whether local
or imported.
8) Environmental Laws and Other Regulations
The Company is subject to numerous environmental laws and regulations relating to the protection of the
environment and human health and safety, among others. The nature of the Company’s operations will
continue to subject it to increasingly stringent environmental laws and regulations that may increase the
costs of operating its facilities above currently projected levels and may require future capital
expenditures. The Company is continually complying with environmental laws and regulations, such as
the wastewater treatment plants as required by the Department of Environment and Natural Resources, to
lessen the effect of these risks.
The Company shall continue to adopt what it considers conservative financial and operational policies
and controls to manage the various business risks it faces.
Item 2. Properties
The Company operates the manufacturing/farm facilities located in the following:
Location (Number of facilities) Type of Facility Owned/Rented Condition

Branded consumer food plants,
Pasig City (5) feedmills and flourmill Rented/Owned Good
Libis, Quezon City (1) Branded consumer food plant Owned Good
Cabuyao, Laguna (1) Branded consumer food plant Owned Good
Luisita, Tarlac (1) Branded consumer food plant Rented/Owned Good
San Fernando, Pampanga (1) Branded consumer food plant Rented/Owned Good
Dasmariñas, Cavite (2) Branded consumer food plants Owned Good
Cagayan de Oro (1) Branded consumer food plant Owned Good
San Pedro, Laguna (2) Branded consumer food plants Owned Good
Calamba, Laguna (1) Branded consumer food plant Rented/Owned Good
San Pablo, Laguna (1) Branded consumer food plant Owned Good
Binan, Laguna (1) Branded consumer food plant Owned Good
Poultry and piggery farms and
Antipolo, Rizal (4) slaughterhouse Rented/Owned Good
Taytay, Rizal (1) Poultry farm Rented/Owned Good
Naic, Cavite (1) Poultry farm Owned Good
San Miguel, Bulacan (2) Piggery and poultry farms Owned Good
Bustos, Bulacan (1) Piggery farm Owned Good
Pandi, Bulacan (1) Piggery farm Rented/Owned Good
Novaliches, Quezon City (1) Piggery farm Owned Good
Rosario, Batangas (1) Piggery farm Owned Good
Magalang, Pampanga (1) Piggery farm Rented/Owned Good
Davao City, Davao (1) Flourmill Owned Good
Tabok City, Cebu (1) Branded consumer food plant Owned Good
- 10 -
Location (Number of facilities) Type of Facility Owned/Rented Condition

San Fernando, Cebu (1) Branded consumer food plant Owned Good
Mandaue City, Cebu (1) Feedmill Owned Good
Bais, Negros Oriental (1) Distillery plant Owned Good
Manjuyod, Negros Oriental (1) Sugar mill Owned Good
Piat, Cagayan (1) Sugar mill Owned Good
Kabankalan, Negros Occidental (2) Sugar mill and cogeneration plant Owned Good
San Enrique, Iloilo City (1) Sugar mill Owned Good
Santa Catalina, Negros Oriental (1) Sugar mill Owned Good
Balayan, Batangas (1) Sugar mill Owned Good
Simlong, Batangas (3) BOPP plant/Flexible packaging Owned Good
Samutsakhorn Industrial Estate,
Samutsakhorn, Thailand (6) Branded consumer food plants Owned Good
Pasir Gudang, Johor, Malaysia (1) Branded consumer food plant Owned Good
Jiangsu, China (1) Branded consumer food plant Owned Good
Guangdong, China (1) Branded consumer food plant Owned Good
Industrial Town, Bekasi, Indonesia (2) Branded consumer food plants Owned Good
VSIP, Binh Duong Province, Vietnam (3) Branded consumer food plants Owned Good
Thach That District, Ha Noi, Vietnam (1) Branded consumer food plant Owned Good
Mingaladon, Yangon, Myanmar (1) Branded consumer food plant Rented/Owned Good
Papakura, Auckland, New Zealand (1) Branded consumer food plant Owned Good
Wiri, Auckland, New Zealand (1) Branded consumer food plant Owned Good
Smithfield, Sydney, New South Wales,
Australia (1) Branded consumer food plant Rented Good
Blacktown, Sydney, New South Wales,
Australia (1) Branded consumer food plant Rented Good
The Company intends to continuously expand the production and distribution of the branded consumer
food products internationally through the addition of manufacturing facilities located in geographically
desirable areas, especially in the ASEAN countries, the realignment of the production to take advantage
of markets that are more efficient for production and sourcing of raw materials, and increased focus and
support for exports to other markets from the manufacturing facilities. It also intends to enter into
alliances with local raw material suppliers and distributors. Annual lease payment for rented properties
amounted to =P287 million in 2018.
Item 3. Legal Proceedings
The Company is subject to lawsuits and legal actions in the ordinary course of its business. The
Company or any of its subsidiaries is not a party to, and its properties are not the subject of, any material
pending legal proceedings that could be expected to have a material adverse effect on the Company’s
financial position or results of operations.
Item 4. Submission of Matters to a Vote of Security Holders
There were no matters submitted to a vote of security holders during the fourth quarter of the year
covered by this report.
PART II - OPERATIONAL AND FINANCIAL INFORMATION
Item 5. Market for Registrant’s Common Equity and Related Stockholder Matters
Market Information
The principal market for URC’s common equity is the Philippine Stock Exchange. Sales prices of the
common stock follow:
High Low
Calendar Year 2018
January to March 2018 =174.00
P =140.00
P
April to June 2018 152.00 111.30
July to September 2018 153.40 119.00
October to December 2018 148.00 121.20
Calendar Year 2017
January to March 2017 =176.10
P =157.10
P
April to June 2017 185.30 157.50
July to September 2017 165.40 135.20
October to December 2017 155.00 131.00
Three Month Period
October to December 2016 =186.00
P =150.00
P
As of April 5, 2019, the latest trading date prior to the completion of this annual report, sales price of the
common stock is at =P151.60.
The number of shareholders of record as of December 31, 2018 was approximately 1,012. Common
shares outstanding as of December 31, 2018 were 2,204,161,868.
- 12 -
List of Top 20 Stockholders of Record

December 31, 2018
Percent to
Number of Total
Name of Stockholders Shares Held Outstanding
1 JG Summit Holdings, Inc. 1,215,223,061 55.13%
2 PCD Nominee Corporation (Non-Filipino) 704,513,078 31.96%
3 PCD Nominee Corporation (Filipino) 249,650,620 11.33%
4 Toccata Securities Pty. Ltd (Account 1) 5,035,541 0.23%
5 Elizabeth Y. Gokongwei and/or John Gokongwei, Jr. 2,479,400 0.11%
6 Litton Mills, Inc. 2,237,434 0.10%
7 Hopkins Securities Pty. Ltd. (Account 1) 1,888,328 0.09%
8 Lisa Yu Gokongwei and/or Elizabeth Gokongwei 575,000 0.03%
8 Faith Gokongwei Ong and/or Elizabeth Gokongwei 575,000 0.03%
8 Robina Gokongwei Pe and/or Elizabeth Gokongwei 575,000 0.03%
8 Marcia Gokongwei Sy and/or Elizabeth Gokongwei 575,000 0.03%
8 Hope Gokongwei Tang and/or Elizabeth Gokongwei 575,000 0.03%
9 Quality Investments & Sec Corp 400,143 0.02%
10 Flora Ng Siu Kheng 379,500 0.02%
11 Consolidated Robina Capital Corporation 253,000 0.01%
12 Gilbert U. Du and/or Fe Socorro R. Du 188,485 0.01%
13 JG Summit Capital Services Corporation 127,765 0.01%
14 Pedro Sen 75,900 0.00%
15 Phimco Industries Provident Fund 72,864 0.00%
16 Joseph Estrada 72,105 0.00%
17 Gilbert Du 63,250 0.00%
18 Abacus Securities Corporation 51,100 0.00%
19 Patrick Y. Tong 46,299 0.00%
20 Patrick Henry C. Go 45,540 0.00%
20 Vincent Henry C. Go 45,540 0.00%
OTHERS 2,701,849 0.12%
TOTAL 2,204,161,868 100.00%
Recent Sales of Unregistered Securities
Not applicable. All shares of the Company are listed on the Philippine Stock Exchange.
Dividends
The Company paid dividends as follows:
In 2018, a regular cash dividend of P=1.65 per share and a special cash dividend of =
P1.50 per share were
declared to all stockholders of record as of February 26, 2018 and paid on March 22, 2018.
- 13 -
declared to all stockholders of record as of March 1, 2017 and paid on March 27, 2017.
declared to all stockholders of record as of February 29, 2016 and paid on March 28, 2016.
Item 6. Management’s Discussion and Analysis or Plan of Operation
The following discussion should be read in conjunction with the accompanying consolidated financial
statements and notes thereto, which form part of this Report. The consolidated financial statements and
notes thereto have been prepared in accordance with the Philippine Financial Reporting Standards
(PFRS).
Results of Operations
Calendar Year Calendar Year Calendar Year Fiscal Year

(in thousand pesos) ended 2018 ended 2017 ended 2016* ended 2016
Sale of goods and services =127,769,949
P =125,007,824
P = 112,611,970
P =111,631,793
P
Cost of sales 90,332,569 85,693,355 76,403,954 75,090,959
Gross profit 37,437,380 39,314,469 36,208,016 36,540,834
Selling and distribution costs (18,719,559) (19,250,876) (16,274,639) (15,828,046)
General and administrative expenses (5,337,208) (5,111,426) (4,173,860) (3,902,175)
Operating income 13,380,613 14,952,167 15,759,517 16,810,613
Finance costs (1,661,700) (1,427,330) (927,122) (897,221)
Finance revenue 359,281 225,583 182,335 213,044
Net foreign exchange gains (losses) (174,659) 154,191 1,308,789 1,877,597
Equity in net loss of joint ventures (132,408) (280,533) (166,719) (233,999)
Impairment losses (45,002) (21,423) (185,595) (181,097)
Market valuation gain (loss) on
financial assets and liabilities at fair
value through profit or loss (35,424) 71,016 107,383 855,085
Other income (expense) – net (145,821) 276,736 220,628 353,483
Income before income tax 11,544,880 13,950,407 16,299,216 18,797,505
Provision for income tax 2,082,094 2,797,486 3,216,342 3,441,533
Net income =
P9,462,786 =11,152,921
P =13,082,874
P =15,355,972
P
*Unaudited
Calendar Year 2018 Compared to Calendar Year 2017
URC generated a consolidated sale of goods and services of =

P127.770 billion for the year ended
December 31, 2018, a 2.2% sales growth over last year. Excluding PFRS 15 impact, net sales grew by
3.6%. Sale of goods and services performance by business segment follows:
∂ Sale of goods and services in URC’s branded consumer foods segment (BCFG), excluding packaging
division, slightly decreased by P
=806 million or 0.8% to P=101.014 billion in 2018 from
=101.820 billion registered in 2017. BCFG domestic operations’ net sales declined from P
P =58.950
billion in 2017 to =
P57.811 billion in 2018, due to lower volumes and unfavorable mix in the coffee
category, that slowed down the sustained growth performance in snacks and noodles, and recovery of
RTD beverages.
BCFG international sales increased by =P333 million to P

=43.203 billion in 2018 against P
=42.870
billion in 2017 driven by continuous recovery in Vietnam and sustained momentum in Australia.
- 14 -
Vietnam is still on track on its path to recovery as sales continue to grow from its drive to recover
numeric distribution, as well as from additional sales from new products such as milk tea. Australia
maintained its growth attributed to very strong sales of both branded and private labels.
Sale of goods and services of BCFG, excluding packaging division, accounted for 79.1% of total
URC consolidated sale of goods and services for 2018.
Sale of goods and services in URC’s packaging division increased by 19.4% to =

P1.524 billion in 2018
from =
P1.276 billion recorded in 2017.
∂ Sale of goods and services in URC’s agro-industrial segment (AIG) amounted to P =11.693 billion in
2018, a 15.7% increase from = P10.111 billion recorded in 2017. Feeds business grew by 27.6% due to
higher sales volume and improved selling prices across all feed categories. Farms business also grew
by 2.2% due to favorable sales mix and better average selling prices of hogs, slightly offset by lower
sales of poultry products due to decline in production of day-old pullets.
∂ Sale of goods and services in URC’s commodity foods segment (CFG) amounted to P =13.539 billion
in 2018 or up by 14.7% from P =11.801 billion reported in 2017. Sugar and renewables businesses
grew by 15.8% and 12.3%, respectively, on the account of higher volume and selling prices of raw
sugar and molasses. Flour business also posted higher sales by 14.5% due to higher volume.
URC’s cost of sales consists primarily of raw and packaging materials costs, manufacturing costs and
direct labor costs. Cost of sales increased by =
P4.639 billion, or 5.4%, to =
P90.332 billion in 2018 from
=85.693 billion recorded in 2017 due to higher sales and higher costs of commodities and other raw and
P
packaging materials.
URC’s gross profit for 2018 amounted to P =37.437 billion, down by =

P1.877 billion or 4.8% from P
=39.314
billion reported in 2017. Gross profit margin decreased by 215 basis points from 31.4% in 2017 to 29.3%
in 2018.
URC’s selling and distribution costs, and general and administrative expenses consist primarily of
compensation benefits, advertising and promotion costs, freight and other selling expenses, depreciation,
repairs and maintenance expenses and other administrative expenses. Selling and distribution costs, and
general and administrative expenses slightly declined by =P306 million or 1.3% to = P24.057 billion in 2018
from =P24.362 billion registered in 2017 primarily due to decline in freight and delivery costs as a result of
distribution restructuring in Myanmar and Cambodia.
As a result of the above factors, operating income decreased by =

P1.572 billion, or 10.5% to =
P13.381
billion in 2018 from P=14.952 billion reported in 2017. URC’s operating income by segment was as
follows:
∂ Operating income in URC’s branded consumer foods segment, excluding packaging division,
decreased by = P1.191 billion or 9.9% to P
=10.889 billion in 2018 from P
=12.081 billion in 2017. URC’s
domestic operations went down by 20.0% to = P7.143 billion in 2018 from P=8.927 billion in 2017 due
to decline in sales volume and lower margins as a result of higher input costs, forex devaluation and
unfavorable product mix driven by coffee category. International operations posted a P =3.746 billion
operating income, 18.8% higher than = P3.154 billion posted in 2017. In constant US dollar terms,
international operations posted an operating income of US$71 million, a 14.1% increase from last
year due to complete turnaround of Vietnam and consistent contribution of New Zealand, partially
offset by lower operating income from other markets.
- 15 -
URC’s packaging division reported an operating income of P =29 million in 2018 from =
P48 million
reported in 2017 due to lower margins coming from higher material cost, negating the impact of
higher average selling prices, as well as due to higher repairs and maintenance costs.
∂ Operating income in URC’s agro-industrial segment decreased by P =962 million to P

=818 million in
2018 from P=1.780 billion in 2017 as a result of the impact of avian flu coupled with higher cost of
input materials in feeds and hogs, and higher operating expenses in farms.
∂ Operating income in URC’s commodity foods segment increased by P =622 million or 21.3% to
=3.539 billion in 2018 from =
P P2.917 billion in 2017. Flour business declined by 13.5% despite higher
volumes due to lower margins as a result of higher wheat costs. Sugar business, on the other hand,
grew by 31.8% due to higher average selling prices and volume while renewable energy business also
grew by 57.0% from last year driven by higher sales.
URC’s finance costs consist mainly of interest expense which increased by P=234 million or 16.4%, to
P1.662 billion in 2018 from =
= P1.427 billion recorded in 2017 due to higher level of trust receipts payable
and short-term debt, coupled with higher interest rates.
URC’s finance revenue consists of interest income from investments in financial instruments, money
market placements, savings and dollar deposits and dividend income from investment in equity securities.
Finance revenue increased by = P134 million to =P359 million in 2018 from =
P226 million in 2017 due to
higher level of financial assets during the year.
Equity in net losses of joint ventures decreased to P

=132 million in 2018 from the =
P281 million in 2017
due to lower net losses of domestic joint ventures coupled with the higher net income of Proper Snacks in
New Zealand.
Net foreign exchange loss amounted to P =175 million in 2018 from the = P154 million gain reported in 2017
due to the combined effects of appreciation of international subsidiaries’ local currencies against US
dollar, particularly NZD, and depreciation of Philippine peso against US dollar.
Market valuation loss on financial instruments at fair value through profit or loss of P
=35 million reported
in 2018 was lower than the =P71 million gain reported in 2017 due to decrease in market values of equity
investments.
Impairment losses increased to =

P45 million in 2018 from P
=21 million in 2017 due to this year’s
impairment of goodwill of Advanson.
Other income (expenses) - net consists of gain (loss) on sale of fixed assets, amortization of bond issue
costs, rental income, and miscellaneous income and expenses. Other expense - net amounted to
=146 million in 2018 while other income - net of =
P P277 million was reported in 2017 due to last year’s
higher gain on sale of fixed assets.
URC recognized consolidated provision for income tax of =P2.082 billion in 2018, a 25.6% decrease from
=2.797 billion in 2017 due to lower taxable income and recognition of lower deferred tax liabilities.
P
URC’s consolidated net income for 2018 amounted to P =9.463 billion, lower by =
P1.690 billion or 15.2%
from =
P11.153 billion in 2017 due to lower operating income, higher net finance costs and foreign
exchange losses.
- 16 -
URC’s core earnings before tax (operating profit after equity earnings, net finance costs and other
expenses - net) in 2018 amounted to =
P11.799 billion, a decline of 13.6% from = P13.656 billion recorded in
2017.
Net income attributable to equity holders of the parent decreased by = P1.684 billion or 15.5% to =
P9.204
billion in 2018 from P
=10.888 billion in 2017 as a result of the factors discussed above.
Non-controlling interest (NCI) represents primarily the share in the net income (loss) attributable to non-
controlling interest of Nissin-URC, URC’s 51.0%-owned subsidiary. NCI in net income of subsidiaries
decreased from = P265 million in 2017 to P
=258 million in 2018.
URC reported an EBITDA (operating income plus depreciation and amortization) of P

=19.750 billion in
2018, 6.2% lower than P
=21.056 billion posted in 2017.
Calendar Year 2017 Compared to Calendar Year 2016

P125.008 billion for the year ended
December 31, 2017, an 11.0% sales growth over last year. Sale of goods and services performance by
business segment follows:
division, increased by =
P9.684 billion or 10.5% to P
=92.136 billion
registered in 2016. BCFG domestic operations’ net sales slightly declined from =P59.188 billion in
2016 to =P58.950 billion in 2017, which was mainly driven by the lower volume and unfavorable mix
in the coffee category, that dragged down the sustained growth performance in snacks and recovery
of RTD beverages.
BCFG international sales increased by 30.1% to P =42.870 billion in 2017 against P

=32.948 billion in
2016. In constant US dollar (US$) terms, sales improved by 21.2% to US$851 million in 2017
against last year due to full year consolidation of SBA as well as growth from Thailand and Malaysia,
partly offset by Vietnam’s slower than expected recovery. Malaysia grew by 7.8% on the back of
positive performances from snacks, wafer and chocolates while Thailand increased by 6.1% due to
continuous growth with wafer and snack categories reaching their highest market shares to date.
Vietnam’s steady recovery was driven by renewed campaign of C2 brand plus growing snackfoods
business.
URC consolidated sale of goods and services in 2017.
Sale of goods and services in URC’s packaging division increased by 16.4% to =

P1.276 billion in 2017
from =
P1.095 billion recorded in 2016.
2017, a 9.9% increase from = P9.201 billion recorded in 2016. Feeds business grew by 4.6% due to
increase in volumes while farms business increased by 16.4% due to higher volumes and average
selling prices of value added hogs.
- 17 -
in 2017 or up by 15.9% from P =10.180 billion reported in 2016. Sugar and renewables businesses
grew by 33.6% and 15.5%, respectively, on the account of higher volumes. On the other hand, flour
business declined by 3.8% due to lower volume and average selling price.
=76.404 billion recorded in 2016 mainly coming from the effect of SBA full year consolidation.
P
URC’s gross profit in 2017 amounted to P =39.314 billion, up by =

P3.106 billion or 8.6% from =
P36.208
billion reported in 2016. Gross profit margin decreased by 70 basis points from 32.2% in 2016 to 31.5%
in 2017.
general and administrative expenses rose by =P3.914 billion or 19.1% to P
=24.362 billion in 2017 from
=20.448 billion registered in 2016. This increase resulted primarily from the following factors:
P
∂ 23.5% or = P1.004 billion increase in compensation and benefits to =

P4.275
billion in 2016 due to SBA full year consolidation, increase in headcount and annual salary
adjustments.
∂ 24.7% or = P1.355 billion increase in freight and delivery charges to =

P5.491 billion in 2016 due to SBA full year consolidation and increase in trucking and shipping costs
=
as a result of increased volume.
∂ 10.3% or =P713 million increase in advertising and promotion costs to =

=6.890 billion in 2016 due to promotion programs with key accounts and wholesalers, and new
P
product launches.
∂ 49.3% or =
P253 million increase in contracted services to =
P766 million in 2017 from =
P513 million in
2016 due to additional conso warehouses and increase in shared services charges.

P807 million, or 5.1% to =
P14.952 billion
in 2017 from P=15.760 billion reported in 2016. URC’s operating income by segment was as follows:
decreased by = P1.010 billion or 7.7% to P
=13.091 billion in 2016. URC’s
domestic operations went down by 14.9% to = P8.927 billion in 2017 from P=10.493 billion in 2016 due
to decline in sales volume and lower margins as a result of higher input costs, forex devaluation and
unfavorable product mix driven by coffee category. International operations posted a P =3.154 billion
operating income, 21.4% higher than = P2.598 billion posted in 2016. In constant US dollar terms,
international operations posted an operating income of US$63 million, a 11.7% increase from last
year due to SBA full year consolidation, offset by Vietnam’s slower than expected recovery.
URC’s packaging division reported an operating income of P

=48 million in 2017 from =
P65 million
reported in 2016 due to lower margins.
- 18 -
∂ Operating income in URC’s agro-industrial segment increased by =

P847 million to =P1.780 billion in
2017 from P=934 million in 2016 due to higher volumes coupled with favorable prices of hogs and
lower raw materials costs of feeds.
∂ Operating income in URC’s commodity foods segment decreased by = P440 million or 13.1% to
P P3.357 billion in 2016. Flour business declined by 13.9% due to lower
selling prices and volume in addition to higher wheat costs. Sugar business dropped by 22.1% due to
lower selling prices notwithstanding higher volumes and higher freight costs. Renewable energy
business grew by 12.6% from last year driven by higher sales.
URC’s finance costs consist mainly of interest expense which increased by P

=500 million or 54.0%, to
= P927 million recorded in 2016 due to higher level of long-term debt, which
was used to finance the acquisition of SBA.
Finance revenue increased by = P43 million to P
=225 million in 2017 from P
=182 million in 2016 due to
higher level of financial assets during the year.
Equity in net losses of joint ventures amounted to P=281 million in 2017 as against =
due to equity share in the net losses of newly created joint venture, Vitasoy-URC.
Net foreign exchange gain decreased to P=154 million in 2017 from = P1.309 billion reported in 2016 due to
the combined effects of appreciation of international subsidiaries’ local currencies against US dollar,
particularly NZD, and depreciation of Philippine peso against US dollar.
Market valuation gain on financial instruments at fair value through profit or loss of P
=71 million reported
in 2017 was lower than the =P107 million in 2016 due to increase in market values of equity investments,
offset by unfavorable fair value changes of derivative instruments.
Impairment losses decreased to = P21 million in 2017 from =

P186 million in 2016 due to last year’s higher
inventory write-offs resulting from issues encountered in Vietnam.
Other income (expenses) - net consists of gain (loss) on sale of fixed assets, amortization of bond
issue costs, rental income, and miscellaneous income and expenses. Other income-net increased to
P =221 million in 2016 due to higher gain on sale of fixed assets.
URC recognized consolidated provision for income tax of = P2.797 billion in 2017, a 13.0% decrease from
=3.216 billion in 2016 due to lower taxable income and utilization of deferred tax assets on realized
P
foreign exchanges losses and tax credits.
URC’s consolidated net income in 2017 amounted to P =11.153 billion, lower by =

P1.930 billion or 14.8%
from P
=13.083 billion in 2016, due to lower operating income, lower net foreign exchange gains and
higher net finance costs.
expenses - net) in 2017 amounted to P
=13.656 billion, a decline of 9.6% from P =14.944 billion recorded in
2016.
Net income attributable to equity holders of the parent decreased by = P1.984 billion or 15.4% to =
P10.888
- 19 -
increased from =P211 million in 2016 to =
P265 million in 2017.

=21.056 billion for
in 2017, 1.6% lower than the =
P21.405 billion posted in 2016.
Fiscal Year 2016 Compared to Fiscal Year 2015

P111.632 billion for the fiscal year ended
September 30, 2016, a 2.4% sales growth over last year. Sale of goods and services performance by
business segment follows:
division, increased by =P643 million to =
P91.376 billion in 2016, slightly up from =
P90.733 billion
registered in 2015. BCFG domestic operations posted an increase of 4.0% in net sales from
=57.600 billion in 2015 to P
P =59.923 billion in 2016, which was mainly driven by RTD beverages,
chocolates and noodles with double-digit growths. Sales was muted due to decline in coffee category
as a result of intense competition in the saturated coffee market. Snackfoods category was flattish
due to the aggressive low-priced players affecting corn chips and pelletized snacks.
BCFG international sales decreased by 5.1% to P =31.453 billion in 2016 against =

P33.133 billion in
2015. In constant US dollar (US$) terms, sales declined by 4.8% to US$670 million in 2016 against
last year due to regulatory issues encountered in Vietnam despite the growth from Indonesia,
Thailand and Malaysia. Indonesia was up by 25.3% driven by the growth in modern trade and
sustained sales momentum from favorable results in all categories. Malaysia grew by 7.0% on the
back of positive performances from chocolates and wafers while Thailand increased by 3.0% as
consumer confidence has started to recover in the country. New Zealand was flat against last year but
with improvements as Griffin’s business have started stabilizing through improved pricing strategies
and new product developments.
URC consolidated sale of goods and services in 2016.
Sale of goods and services in URC’s packaging division was flat at =

=1.128 billion recorded in 2015.
P
2016, a 2.0% increase from =P8.931 billion recorded in 2015. Feeds business grew by 21.3% due to
increase in sales volume as a result of aggressive sales and marketing strategies while farms business
declined by 14.8% due to lower average selling price of live hogs.
in 2016 or up by 21.1% from P =8.259 billion reported in 2015. Sugar business grew by 20.0% due to
incremental sales from the recently acquired Balayan sugar mill and higher prices of raw and refined
sugar. On the other hand, flour business declined by 2.3% despite higher volume due to lower
average selling price. Sales contribution from renewable energy businesses amounted to
=
P2.003 billion in 2016, compared to P=824 million last year.
- 20 -
=73.801 billion recorded in 2015 due to increase in sales volume.
P
URC’s gross profit in 2016 amounted to P =36.541 billion, up by =

P1.291 billion or 3.7% from =
P35.250
billion reported in 2015. Gross profit margin increased by 41 basis points from 32.3% in 2015 to 32.7%
in 2016.
general and administrative expenses rose by =P1.854 billion or 10.4% to P
=19.730 billion in 2016 from
=17.876 billion registered in 2015. This increase resulted primarily from the following factors:
P
∂ 17.5% or =
P603 million increase in compensation and benefits to =P4.047 billion in 2016 from
P
=3.444 billion in 2015 due to increase in headcount and annual salary adjustments.
∂ 9.1% or =P576 million increase in advertising and promotion costs to =

=6.312 billion in 2015 due to promotion programs with key accounts and wholesalers, and new
P
product launches.
∂ 7.9% or =
P381 million increase in freight and delivery charges to =
=4.846 billion in 2015 due to increase in trucking and shipping costs as a result of increased volume.
P
∂ 62.0% or = P292 million increase in rent expense to P

=471 million in 2015 as
a result of business expansion.

P563 million, or 3.2% to =
P16.811 billion
in 2016 from P=17.373 billion reported in 2015. URC’s operating income by segment was as follows:
decreased by =P540 million or 3.7% to P=13.975 billion in 2016 from = P14.515 billion in 2015. URC’s
domestic operations went up by 3.1% to = P11.003 billion in 2016 from P=10.676 billion in 2015 due to
growth in sales volume, net of slightly lower margins as a result of change in product mix and higher
key input costs. International operations posted a P
=2.973 billion operating income, 22.6% lower than
P
=3.839 billion posted in 2015. In constant US dollar terms, international operations posted an
operating income of US$63 million, a 23.1% drop from last year due to Vietnam issues, decline in
New Zealand and losses from Indonesia and Myanmar as a result of brand building and distribution.
URC’s packaging division reported an operating income of P =75 million in 2016 from =
P30 million
operating loss reported in 2015 due to improved sales mix and margins.
∂ Operating income in URC’s agro-industrial segment decreased by = P119 million to = P1.051 billion in
2016 from P=1.170 billion in 2015 due to lower prices and volumes of hogs, net of strong performance
by feeds business.
∂ Operating income in URC’s commodity foods segment increased by P =201 million or 6.4% to
P P3.139 billion in 2015, mainly coming from the additional contribution
of renewable energy businesses. Flour business slightly increased by 1.7% due to better wheat prices
while sugar business declined by 18.4% due to higher freight costs notwithstanding higher sales
volume and price.
- 21 -
Market valuation gain on financial instruments at fair value through profit or loss of P
=855 million was
reported in 2016 against the =
P215 million market valuation loss in 2015 due to fair value changes of
derivative instruments and lower decline in market values of equity investments.
Finance revenue decreased by = P64 million to P
=213 million in 2016 from =
P277 million in 2015 due to
decline in level of financial assets.
URC’s finance costs consist mainly of interest expense which decreased by P

=380 million or 29.8%, to
P =1.278 billion recorded in 2015 due to lower level of financial debt resulting
from prepayment of a long-term debt.
Net foreign exchange gain amounted to = P1.878 billion in 2016 from P

=265 million net foreign exchange
loss reported in 2015 due to the combined effects of appreciation of international subsidiaries’ local
currencies against US dollar, particularly IDR and NZD, and depreciation of Philippine peso against US
dollar.
Impairment losses increased to P=181 million in 2016 from P

=110 million in 2015 due to higher inventory
write-offs resulting from issues encountered in Vietnam.
Equity in net losses of joint ventures amounted to P

=234 million in 2016 as against =
due to higher net losses of DURBI as a result of continuous brand building.
Other income (expenses) - net consists of gain (loss) on sale of fixed assets, amortization of bond
issue costs, rental income, and miscellaneous income and expenses. Other income-net increased to
=
P353 million in 2016 from = P180 million in 2015 mainly coming from gain on sale of a property located in
China.
URC recognized consolidated provision for income tax of = P3.442 billion in 2016, a 5.8% increase from
=3.252 billion in 2015 due to recognition of higher deferred tax liabilities, net of lower taxable income.
P
URC’s consolidated net income in 2016 amounted to P =15.356 billion, higher by =P2.851 billion or 22.8%
from =P12.505 billion in 2015, due to market valuation gain on financial assets and net foreign exchange
gains.
expenses - net) in 2016 amounted to P
=15.904 billion, a decline of 2.7% from P =16.346 billion recorded in
2015.
Net income attributable to equity holders of the parent increased by P=2.757 billion or 22.3% to P
=15.140
increased from =P122 million in 2015 to =
P216 million in 2016.

=22.280 billion for
2016, slightly higher than =
P22.083 billion posted in 2015.
- 22 -
Financial Condition
URC’s financial position remains healthy with strong cash levels. The Company has a current ratio of
1.70:1 as of December 31, 2018, lower than the 1.92:1 as of December 31, 2017. Financial debt to equity
ratio of 0.48:1 as of December 31, 2018 is within comfortable level. The Company is in a net debt
position of P
=26.445 billion this year against P
=23.391 billion last year.
Total assets amounted to P

=151.936 billion as of December 31, 2018, higher than =
P147.641 billion as of
December 31, 2017. Book value per share increased to P=38.02 as of December 31, 2018 from P =36.93 as
of December 31, 2017.
The Company’s cash requirements have been sourced through cash flow from operations. The net cash
flow provided by operating activities in 2018 amounted to =P14.658 billion. Net cash used in investing
activities amounted to =
P8.680 billion which were substantially used for fixed asset acquisitions. Net cash
used in financing activities amounted to =
P7.452 billion due to dividend payment and net loan repayment.
The capital expenditures amounting to = P8.642 billion include site development, building constructions
and rehabilitation/upgrade of beverage and snacks facilities in the Philippines; improvements in
packaging facility in Vietnam; new warehouse and improvements in biscuit, snacks and candy lines in
Thailand; potato chips and kettle plant upgrade in New Zealand; various capacity upgrades and building
management improvements in New Zealand and Australia; and construction of new factory building and
conbar line in Malaysia.
The Company budgeted about = P9.144 billion for capital expenditures (including maintenance capex) and
investments for 2019, which substantially consists of the following:
∂ P7.309 billion for capacity expansions and improvement of information systems, handling,
=
distribution, safety, quality control and operational efficiencies throughout the branded consumers
foods group.
∂ =1.254 billion for commodity foods group for flourmill and pasta manufacturing, sugar business
P
expansion, improvement and maintenance capital expenditures.
∂ =
P581 million for agro-industrial group maintenance capex, packaging business facilities improvement
and machine rehabilitation.
No assurance can be given that the Company’s capital expenditures plan will not change or that the
amount of capital expenditures for any project or as a whole will not change in future years from current
expectations.
As of December 31, 2018, the Company is not aware of any events that will trigger direct or contingent
financial obligation that is material to the Company, including any default or acceleration of an
obligation.
- 23 -
Financial Ratios
The following are the major financial ratios that the Group uses. Analyses are employed by comparisons
and measurements based on the financial information of the current year against last year.
December 31, 2018 December 31, 2017

Liquidity:
Current ratio 1.70:1 1.92:1
Solvency:
Gearing ratio 0.48:1 0.47:1
Debt to equity ratio 0.81 0.81:1
Asset to equity ratio 1.81 1.81:1
Year 2018 Year 2017

Profitability:
Operating margin 10.5% 12.0%
Earnings per share 4.18 4.94
Leverage:
Interest rate coverage ratio 11.89 14.75
The Group calculates the ratios as follows:
Financial Ratios Formula

Current ratio Current assets
Current liabilities
Total financial debt (short-term debt, trust receipts payable

Gearing ratio and long-term debt including current portion)
Total equity (equity holders + non-controlling interests)
Debt to equity ratio Total liabilities (current + noncurrent)

Asset to equity ratio Total assets (current + noncurrent)

Operating margin Operating Income

Sale of goods and services
Earnings per share Net income attributable to equity holders of the parent
Weighted average number of common shares
Interest rate coverage ratio Operating income plus depreciation and amortization
Finance costs
- 24 -
Material Changes in the 2018 Financial Statements

(Increase/Decrease of 5% or more versus 2017)
Income statements – Year ended December 31, 2018 versus Year ended December 31, 2017
5.4% increase in cost of sales

Due to higher input costs, including forex impact on imported raw materials
16.4% increase in finance costs

Due to higher level of trust receipts payable and short-term debt, coupled with higher interest rates
59.3% increase in finance revenue

Due to higher level of financial assets during the year
213.3% decrease in net foreign exchange gains (losses)

Due to the combined effects of appreciation of international subsidiaries’ local currencies against US
dollar, particularly NZ dollar, and depreciation of Philippine peso against US dollar
52.8% decrease in equity in net losses of joint ventures

Due to lower net losses of domestic joint ventures coupled with the higher net income of Proper Snacks in
New Zealand
110.1% increase in impairment losses

Due to this year’s impairment of goodwill of Advanson
149.9% decrease in market valuation gain (loss) on financial instruments at FVPL

Due to decrease in market values of equity investments
152.7% decrease in other income (loss) - net

Due to last year’s higher gain on sale of fixed assets
25.6% decrease in provision for income tax

Due to lower taxable income and recognition of lower deferred tax liabilities
Statements of Financial Position – December 31, 2018 versus December 31, 2017
10.2% decrease in cash and cash equivalents

Due to capital expenditure and dividend payment, net of operating cash
7.8% decrease in financial assets at fair value through profit or loss

Due to decline in fair values of equity securities
10.6% decrease in receivables - net

Due to increase in trade receivables
19.6% increase in inventories

Due to increases in raw material and finished goods inventories
34.0% decrease in biological assets

Due to decline in headcount and market prices of hogs
- 25 -
25.0% increase in other current assets

Due to increases in input value-added tax and advances to suppliers
7.7%% increase in property, plant and equipment

Due to various plant expansion and improvement projects, net of depreciation
5.7% decrease in investment in joint ventures

Due to share in net losses of joint ventures and change in ownership of HURC and CURC from joint
ventures to wholly-owned subsidiaries, partially offset by the additional investments during the year
12.5% increase in noncurrent assets

Due to increase in security deposits, net of lower deferred input taxes
5.5% increase in accounts payable and other accrued liabilities

Due to increase in trade payables
22.5% increase in short-term debt

Due to loan availments during the year to partially finance the dividend payment
90.8% increase in trust receipts payable

Due to increased utilization of trust receipt facilities
43.0% decrease in income tax payable

Due to lower income tax provision during the year
5.3% decrease in long-term debt

Due to partial repayment of the NZ loan and forex translation impact
38.5% decrease in other noncurrent liabilities

Due to decline in net pension liability
374.4% increase in other comprehensive income

Due to significant increase in cumulative translation adjustments
99.2% increase in treasury shares

Due to issuance of shares in relation to CCPI merger with and into the Parent Company, which were
consequently classified as treasury shares
28.5% decrease in equity attributable to non-controlling interests

Due significantly to the dividends declared by Nissin-URC, net of equity share in net income
- 26 -
The Company’s key performance indicators are employed across all businesses. Comparisons are then
made against internal target and previous period’s performance. The Company and its significant
subsidiaries’ top five (5) key performance indicators are as follows: (in million PhPs)
Universal Robina Corporation (Consolidated)

CY 2018 CY 2017 Index
Revenues 127,770 125,008 102
EBIT 13,381 14,952 89
EBITDA 19,750 21,056 94
Net Income 9,463 11,153 85
Total Assets 151,753 147,641 103
URC International Co., Ltd. (Consolidated)

Revenues 42,203 42,871 98
EBIT 3,944 3,154 125
EBITDA 6,756 5,833 116
Net Income 1,046 1,855 56
Total Assets 89,899 87,739 102
Nissin-URC
Revenues 5,815 5,103 114
EBIT 845 769 110
EBITDA 975 890 110
Net Income 603 559 108
Total Assets 2,583 2,686 96
Majority of the above key performance indicators were within targeted levels.
Item 7. Financial Statements
The consolidated financial statements and schedules listed in the accompanying Index to Financial
Statements and Supplementary Schedules (page 43) are filed as part of this Form 17-A (pages 44
to 172).
Item 8. Changes in and Disagreements with Accountants on Accounting and Financial

Disclosure
None.
- 27 -
Item 9. Independent Public Accountants and Audit Related Fees
Independent Public Accountants
The Company’s independent public accountant is the accounting firm of SyCip Gorres Velayo & Co.
The same accounting firm is tabled for reappointment for the current year at the annual meeting of
stockholders. The representatives of the principal accountant have always been present at prior year’s
meetings and are expected to be present at the current year’s annual meeting of stockholders. They may
also make a statement and respond to appropriate questions with respect to matters for which their
services were engaged.
The current handling partner of SGV & Co. has been engaged by the Company in 2018 and is expected to
be rotated every five (5) years.
Audit-Related Fees
The following table sets out the aggregate fees billed for each of the last three years for professional
services rendered by SyCip, Gorres, Velayo & Co.
FY 2016 CY 2017 CY 2018

Audit and Audit-Related Fees =9,740,000
P =9,954,000
P =11,206,000
P
Fees for services that are normally provided
by the external auditor in connection with
statutory and regulatory filings or
engagements none none 1,100,000
Professional fees for due diligence review
for bond/shares offering none none none
Tax Fees none none none
Other Fees none none none
Total =9,740,000
P =9,954,000
P =12,306,000
P
Audit Committee’s Approval Policies and Procedures for the Services Rendered by the External Auditors
The Corporate Governance Manual of the Company provides that the Audit Committee shall, among others:
1. Evaluate all significant issues reported by the external auditors relating to the adequacy, efficiency, and
effectiveness of policies, controls, processes and activities of the Company.
2. Ensure that other non-audit work provided by the external auditors is not in conflict with their functions
as external auditors.
3. Ensure the compliance of the Company with acceptable auditing and accounting standards and
regulations.
- 28 -
PART III - CONTROL AND COMPENSATION INFORMATION
Item 10. Directors and Executive Officers of the Registrant
Name Age Position Citizenship

Director, Chairman Emeritus and
1. John L. Gokongwei, Jr 92 Founder Filipino
2. James L. Go 79 Director, Chairman Emeritus Filipino
3. Lance Y. Gokongwei 52 Director, Chairman Filipino
4. Irwin C. Lee 54 President and Chief Executive Officer Filipino
5. Patrick Henry C. Go 48 Director, Vice President Filipino
6. Johnson Robert G. Go, Jr 53 Director Filipino
7. Robert G. Coyiuto, Jr 67 Director Filipino
8. Wilfrido E. Sanchez 81 Director (Independent) Filipino
9. Cesar V. Purisima 59 Director (Independent) Filipino
10. Pascual S. Guerzon 81 Member of the Advisory Board Filipino
11. Cornelio S. Mapa, Jr. 52 Executive Vice President Filipino
12. Bach Johann M. Sebastian 57 Senior Vice President Filipino
13. David J. Lim, Jr. 55 Senior Vice President Filipino
Senior Vice President and Chief
14. Francisco M. Del Mundo 48 Financial Officer Filipino
15. Michael P. Liwanag 44 Senior Vice President Filipino
16. Chona R. Ferrer 60 First Vice President Filipino
17. Ester T. Ang 60 Vice President - Treasurer Filipino
18. Teofilo B. Eugenio, Jr. 53 Vice President Filipino
19. Vincent Henry C. Go 47 Vice President Filipino
20. Ellison Dean C. Lee 61 Vice President Filipino
21. Renato P. Cabati 55 Vice President Filipino
22. Anne Patricia C. Go 52 Vice President Filipino
23. Alan D. Surposa 55 Vice President Filipino
24. Rosalinda F. Rivera 48 Corporate Secretary Filipino
25. Socorro ML. Banting 64 Assistant Vice President Filipino
26. Arlene S. Denzon 50 Compliance Officer Filipino
All of the above directors and officers have served their respective offices since May 30, 2018. There are
no directors who resigned or declined to stand for re-election to the board of directors since the date of the
last annual meeting of stockholders for any reason whatsoever.
Messrs. Wilfrido E. Sanchez and Cesar V. Purisima are the independent directors of the Company.
A brief description of the directors and executive officers’ business experience and other directorships
held in other reporting companies are provided as follows:
John L. Gokongwei, Jr. founded URC in 1954 and has been the Chairman Emeritus and Founder of URC
effective January 1, 2002. He continues to be a member of URC’s Board and is the Chairman Emeritus
and Founder of JGSHI and Robinsons Land Corporation. He is currently the Chairman of the Gokongwei
Brothers Foundation, Inc., and a director of Cebu Air, Inc., Robinsons Retail Holdings, Inc. and Oriental
Petroleum and Minerals Corporation. He was elected a director of Manila Electric Company on March
31, 2014. He is also a non-executive director of A. Soriano Corporation. Mr. Gokongwei received a
- 29 -
Masters degree in Business Administration from the De La Salle University and attended the Advanced
Management Program at Harvard Business School.
James L. Go is the Chairman Emeritus and a member of the Board of Directors of URC. He is the
Chairman of JGSHI and Oriental Petroleum and Minerals Corporation. He is the Chairman Emeritus of
Robinsons Land Corporation, JG Summit Petrochemical Corporation, and JG Summit Olefins
Corporation. He is the Vice Chairman of Robinsons Retail Holdings, Inc. and a director of Cebu Air,
Inc., Marina Center Holdings Private Limited, United Industrial Corporation Limited and Hotel Marina
City Private Limited. He is also the President and Trustee of the Gokongwei Brothers Foundation, Inc.
He has been a director of the Philippine Long Distance Telephone Company (PLDT) since November 3,
2011. He is a member of the Technology Strategy Committee and Advisor of the Audit Committee of the
Board of Directors of PLDT. He was elected a director of Manila Electric Company on December 16,
2013. Mr. Go received his Bachelor of Science Degree and Master of Science Degree in Chemical
Engineering from Massachusetts Institute of Technology, USA. Mr. James L. Go is a brother of Mr. John
L. Gokongwei, Jr. and joined URC in 1964.
Lance Y. Gokongwei is the Chairman of URC. He is the President and Chief Executive Officer of
JGSHI. He is the Chairman of Robinsons Retail Holdings, Inc., Robinsons Land Corporation, JG Summit
Petrochemical Corporation, JG Summit Olefins Corporation and Robinsons Bank Corporation. He is the
President and Chief Executive Officer of Cebu Air, Inc. He is a director and Vice Chairman of Manila
Electric Company and a director of Oriental Petroleum and Minerals Corporation and United Industrial
Corporation Limited. He is also a trustee and secretary of the Gokongwei Brothers Foundation, Inc. He
received a Bachelor of Science degree in Finance and a Bachelor of Science degree in Applied Science
from the University of Pennsylvania. Mr. Lance Y. Gokongwei is the son of Mr. John L. Gokongwei, Jr.
and joined URC in 1988.
Irwin C. Lee is the President and Chief Executive Officer of URC effective May 14, 2018. He
concurrently handles the Branded Consumer Foods Group of URC. Prior to joining URC, he was the
Chief Executive Officer of Rustan Supercenters, Inc. and a director of Rose Pharmacy under Jardine
Matheson’s Dairy Farm Group. He brings with him more than 32 years of work experience in fast-
moving consumer foods and retail across Asia, Europe and the US. He started his career at Procter &
Gamble (P&G) as a Finance Analyst and rose to key executive finance roles in various countries,
including Chief Financial Officer roles in Indonesia, Japan/Korea and Greater China. In 2004, he was
appointed Vice President for P&G Greater China with dual roles as Chief Marketing Officer and as
General Manager for the laundry detergent business, which he drove to market leadership. In 2007, he
was appointed Vice President/Managing Director for P&G UK and Ireland, where he delivered profitable
growth through two recessions and led P&G’s London 2012 Olympics program. In 2014, he rose to
become P&G’s Regional Head for Northern Europe, leading commercial operations across UK, Ireland,
Sweden, Denmark, Norway and Finland, and integrating P&G’s second largest international regional
cluster. While in the UK, he spearheaded industry initiatives for connecting businesses to communities
and enhancing employee engagement and well-being. After P&G, he served as Global Strategic Advisor
for McKinsey and Co. to consumer and retail sector partners and engagement managers. He also sat as
Board Director and Remuneration Committee Chairman for Wm Morrison Supermarkets Plc (one of
UK’s top 4 grocery retailers). Mr. Irwin Lee graduated with a Bachelor of Science Degree in Commerce
Major in Accounting from the De La Salle University Manila, Summa Cum Laude. He finished third in
the CPA Licensure Exams in 1985.
Patrick Henry C. Go is a director and a Vice President of URC. He also heads the URC Packaging
(BOPP) Division and Flexible Packaging Division. He is the President and Chief Executive Officer of JG
Summit Petrochemical Corporation and JG Summit Olefins Corporation. He is also a director of JGSHI,
Robinsons Land Corporation, and Robinsons Bank Corporation. He is a trustee and treasurer of the
Gokongwei Brothers Foundation, Inc. He received a Bachelor of Science degree in Management from
- 30 -
the Ateneo de Manila University and attended the General Manager Program at Harvard Business School.
Mr. Patrick Henry C. Go is a nephew of Mr. John L. Gokongwei, Jr.
Johnson Robert G. Go, Jr. has been a director of URC since May 5, 2005. He is also a director of
JGSHI, Robinsons Land Corporation, and Robinsons Bank Corporation. He is also a trustee of the
Gokongwei Brothers Foundation, Inc. He received his Bachelor of Arts degree in Interdisciplinary
Studies (Liberal Arts) from the Ateneo de Manila University. He is a nephew of Mr. John L. Gokongwei,
Jr.
Robert G. Coyiuto, Jr. has been a director of URC since 2002. He was appointed Presidential Adviser
on Capital Market Development. He is the Chairman of the Board and Chief Executive Officer of
Prudential Guarantee & Assurance, Inc. and of PGA Sompo Insurance Corporation. He is also Chairman
of PGA Cars, Inc., Pioneer Tours Corporation and Coyiuto Foundation. He is the Chairman and
President of Calaca High Power Corporation and Pacifica 21 Holdings, Inc. He is Vice Chairman and
Director of National Grid Corporation of the Philippines and First Life Financial Co., Inc. He is also the
President, Chief Operating Officer and Director of Oriental Petroleum and Minerals Corporation. He is a
director of Petrogen Insurance Corporation, and Canon (Philippines) Inc. He is a member of the
Philippine Stock Exchange.
Wilfrido E. Sanchez has been an independent director of URC since 1995. He is a Tax Counsel in
Quiason Makalintal Barot Torres Ibarra Sison & Damaso Law Firm. He is also a trustee of the
Gokongwei Brothers Foundation, Inc. He is a director of Adventure International Tours, Inc., Amon
Trading Corporation, Asia Brewery, Inc., Center for Leadership & Change, Inc., EEI Corporation,
EMCOR, Inc., Eton Properties Philippines, Inc., House of Investments, Inc., J-DEL Investment and
Management Corporation, JVR Foundation, Inc., Kawasaki Motor Corp., K Servico, Inc., LT Group, Inc.,
Magellan Capital Holdings Corporation, Tanduay Distillers, Inc., Transnational Diversified Corporation,
Transnational Financial Services, Inc., and Transnational Plans, Inc. He was also appointed as a member
of the Board of Trustees of the Asian Institute of Management on September 8, 2016. He received his
Bachelor of Arts degree and Bachelor of Laws degree from the Ateneo de Manila University and a
Masters of Law degree from the Yale Law School.
Cesar V. Purisima, has been an independent director of URC effective May 30, 2018. He is an Asia
Fellow at the Milken Institute. He is also an independent nonexecutive director of the AIA Group
Limited and Ayala Land, Inc., an Executive-in-Residence of the Asian Institute of Management, and a
member of the Board of Trustees of the International School, Manila and De La Salle University. He is
also a member of the International Advisory Council (Phils.) of the Singapore Management University
and a member of the Global Advisory Council of Sumitomo Mitsui Banking Corporation. He is also an
advisor of the Partners Group AG Life Council. He served in the Philippine government as Secretary of
the Department of Finance from July 2010 to June 2016 and as Secretary of the Department of Trade and
Industry from January 2004 to February 2005. He also previously served on the boards of a number of
government institutions, including as a member of the Monetary Board of the Bangko Sentral ng
Pilipinas, Governor of the World Bank Group for the Philippines, Governor of the Asian Development
Bank for the Philippines, Alternate Governor of the International Monetary Fund for the Philippines and
Chairman of the Land Bank of the Philippines. He was conferred the Chevalier dans l’Ordre national de
la Légion d’Honneur (Knight of the National Order of the Legion of Honour) by the President of the
French Republic in 2017, the Order of Lakandula, Rank of Grand Cross (Bayani) by the President of the
Philippines in 2016 and the Chevalier de l’Ordre national du Mérite (Knight of the National Order of
Merit) by the President of the French Republic in 2001. He is a certified public accountant. He has
extensive experience in public accounting both in the Philippines and abroad. He was Chairman and
Managing Partner of SyCip Gorres Velayo & Co. (a member firm of Andersen Worldwide until 2002 and
became member firm of Ernst & Young Global Limited) from 1999 until 2004. During the period, he
was also the Asia-Pacific Area Managing Partner for Assurance and Business Advisory Services of
- 31 -
Andersen Worldwide from 2001 to 2002 and Regional Managing Partner for the ASEAN Practice of
Andersen Worldwide from 2000 to 2001. He obtained his Bachelor of Science in Commerce (Majors in
Accounting & Management of Financial Institutions) degree from De La Salle University (Manila) in
1979, Master of Management degree from J.L. Kellogg Graduate School of Management, Northwestern
University in 1983 and Doctor of Humanities honoris causa degree from Angeles University Foundation
of the Philippines in 2012.
Pascual S. Guerzon is a Member of the Advisory Board of URC effective May 30, 2018. He was
previously an independent director of URC. He is currently the Principal of Dean Guerzon & Associates
(Business Development). He is the Founding Dean of De La Salle Graduate School of Business. He was
also the former President of the Management Association of the Philippines Agribusiness and
Countryside Development Foundation and the Management Association of the Philippines Foundation,
MBA Director of the Ateneo de Manila Graduate School of Business, Director of Leverage International
Consultants, Deputy Director of Asean Chambers of Commerce and Industry and Section Chief of the
Board of Investments. He is a holder of an MBA in Finance from the University of the Philippines and a
Ph.D. (N.D) in Management from the University of Santo Tomas.
Cornelio S. Mapa, Jr. is the Executive Vice President for Corporate Strategy of URC. He is the Senior
Vice President, Corporate Strategy for Consumer Businesses of JG Summmit Holdings, Inc. He was also
the Managing Director of the URC Branded Consumer Foods Group. He was the General Manager of the
Commercial Centers Division of Robinsons Land Corporation before joining URC in October
2010. Prior to joining URC and Robinsons Land Corporation, he was Senior Vice President and Chief
Financial Officer of the Coca Cola Bottlers Philippines including its subsidiaries, Cosmos Bottling and
Philippine Beverage Partners. He was also formerly Senior Vice President and Chief Financial Officer of
La Tondeña Distillers, Inc. He earned his Bachelor of Science degrees in Economics and International
Finance from New York University and obtained his Masters in Business Administration from IMD in
Lausanne, Switzerland.
Bach Johann M. Sebastian is the Senior Vice President and Chief Strategist of URC. He is also the
Senior Vice President of JGSHI, Corporate Strategy for Digital and Strategic Investments Group. He is
also the Senior Vice President and Chief Strategist of Robinsons Land Corporation. He is also the Senior
Vice President, Chief Strategist and Compliance Officer of Cebu Air, Inc., and Robinsons Retail
Holdings, Inc. Prior to joining URC in 2002, he was Senior Vice President and Chief Corporate
Strategist at RFM Corporation, Swift Foods Inc., Selecta Dairy Products Inc., Cosmos Bottling
Corporation, and PSI Technologies Inc. Between 1981 and 1991, he was with the Department of Trade
and Industry as Chief of Economic Research, and Director of Operational Planning. He received his
Bachelor of Arts in Economics from the University of the Philippines in 1981 and his Master in Business
Administration degree from the Asian Institute of Management in 1986.
David J. Lim, Jr. is the Senior Vice President for Quality, Engineering, Sustainability and Technical
Services of URC’s Branded Consumer Foods Group Philippines and International. He was the Assistant
Technical Director for JGSHI prior to joining URC in December of 2008. He earned his Bachelor of
Science degree in Aeronautical Engineering from Imperial College, London, England and obtained his
Master of Science degree in Civil Structural Engineering from the University of California at Beverly,
USA as well as his Masters in Engineering from the Massachusetts Institute of Technology, USA.
Michael P. Liwanag is the Senior Vice President and Investor Relations Officer of URC. He is
concurrently the Senior Vice President for Investor Relations and Special Projects for the Office of the
President & CEO of JGSHI. Prior to his current role in URC, he was the Vice President for Corporate
Strategy and Development of URC until May 14, 2018. Before joining URC in 2001, he was exposed to
different business functions such as Strategic Management & Implementation, Corporate
Finance/Mergers & Acquisitions, Program Management, Financial Planning & Analysis and Business
- 32 -
Analytics in Digital Telecommunications Phils., Inc., Global Crossings and Philippine Global
Communications, Inc. He studied Engineering at the University of the Philippines, is a Certified
Management Accountant (ICMA Australia) and an alumni of the Harvard Business School (AMP).
Francisco M. Del Mundo is the Senior Vice President and Chief Financial Officer of URC. He is also
the Senior Vice President and Chief Financial Officer of JGSHI. He brings with him 26 years of
experience in all aspects of the finance career. He has built his career from 17 years of rigorous training
in Procter & Gamble (P&G) and 3 years in Coca-Cola prior to joining the JG Summit Group. He has
worked in three different markets: Manila, Thailand and Singapore, and has held numerous CFO and
Regional Finance Head positions, namely: CFO for ASEAN, Head of Accounting Shared Services for
Central and Eastern Europe, Middle East and Africa, and Asia Hub Manager for Internal Controls for
P&G. During his stint with Coca-Cola, he was the CFO for Coca-Cola Bottlers Philippines, Inc. and
concurrently the CEO of Coca-Cola Bottlers Business Services, the company’s global shared service
handling Philippines, Singapore and Malaysia. In 2013, he joined JGSHI as Vice President for JG
Summit and Affiliates Shared Services. He was appointed as CFO of URC International the same year,
concurrent with Shared Services role. In 2016, he was appointed CFO of URC and Head of JG Summit
Enterprise Risk Management Group, and continues to lead Shared Services as its Vice President. He
graduated cum laude from the University of the Philippines Diliman with a Bachelor of Science in
Business Administration degree. He was recognized as the Most Distinguished Alumnus of the
University’s College of Business Administration in 2008. He is also a Certified Internal Auditor and has
done several external talks on shared service and finance transformation in Manila, Malaysia and Dubai.
Chona R. Ferrer is the First Vice President for Corporate Treasury of URC. She is also the Deputy
Treasurer of JGSHI. Prior to joining URC in 1983, she was Assistant Treasurer of Guevent Industrial
Development Corporation. She received a Bachelor of Science degree in Business Administration from
the University of the Philippines.
Ester T. Ang is the Vice President - Treasurer, Treasury Industrial Group. Prior to joining URC in 1987,
she worked with Bancom Development Corporation and Union Bank of the Philippines. She received her
Bachelor of Science degree in Accounting from the Ateneo De Davao University in Davao City.
Teofilo B. Eugenio, Jr. is the Vice President of URC. He is the General Manager of Nissin-Universal
Robina Corporation. He is also the President and General Manager of Hunt-Universal Robina
Corporation. During the time he was Vice President for Snacks Marketing, he also served as General
Manager of Calbee-URC, Inc. until April 2016. Before handling Snacks, he was the Marketing Director
for biscuits, cakes and chocolates of the URC Branded Consumer Foods Group and started as Group
Product Manager of biscuits. Prior to joining URC, he was Senior Product Manager for Ovaltine at
Novartis Nutrition Philippines, Inc. He has more than 20 years’ experience in the field of marketing. He
earned his Bachelor of Science degree in Industrial Management Engineering, Minor in Mechanical
Engineering, from the De La Salle University, Manila and obtained his Masters in Business
Administration from Strathclyde Graduate Business School, Strathclyde University, United Kingdom.
Vincent Henry C. Go is the Vice President of URC, has been the Group General Manager of URC’s
Agro-Industrial Group since 2006 and Chairman of the Supplier Selection Committee since 2013. He
served as General Manager and National Sales Manager of Universal Corn Products in 2002 and 1994,
respectively. He obtained his degree in Feed Manufacturing Technology from the Swiss Institute of Feed
Technology in Uzwil, Switzerland. Mr. Vincent Henry C. Go is a nephew of Mr. John L. Gokongwei, Jr.
and joined URC in 1992.
Ellison Dean C. Lee is the Vice President of URC and the Business Unit General Manager of URC’s
Flour Division. He started his career with the Philippine Appliance Corporation as Manager, Special
Accounts, under the Office of the Chairman and President. He then moved to PHINMA Group of
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Companies and occupied the positions of Assistant Vice President and Vice President for Marketing. He
also joined Inglenook Foods Corporation as Vice President for Sales. Prior to joining URC in 2001, he
was a Vice President of Golden Gate Marketing Corporation, a marketing arm of APO Cement
Corporation, and Vice President for Sales and Marketing of Blue Circle Philippines, Inc. He graduated
with a Bachelor of Science in Business Management from the Ateneo De Manila University. He also
attended the Management Program at the Asian Institute of Management.
Renato P. Cabati is the Vice President of URC and the Business Unit General Manager of URC’s
Sugar and Renewables Group since 2002. He has held various posts in the sugar business since
1989. Prior to joining URC, he practiced public accounting with SyCip, Gorres, Velayo & Co. and
private accounting with NDC - Guthrie Plantations, Inc. He is a member of the Philippine Institute of
Certified Public Accountants, past President and Chairman of the Philippine Sugar Technologists
Association, Inc., Executive Committee member of the Philippine Sugar Millers Association, Millers
Sector Representative to the Sugar Tripartite Council of the Department of Labor & Employment and
President of the Philippine Association of Sugar Refiners, Inc., Chairman of Ethanol Producers
Association of the Philippines and a Member of the Board of Trustees of the Philippine Sugar Research
Institute. He is a Certified Public Accountant and has obtained his Bachelor of Science degree in
Commerce Major in Accounting from the Far Eastern University and attended raw sugar and refined
sugar manufacturing courses at the Nichols State University, Thibodaux, Louisiana, USA.
Anne Patricia C. Go is the Vice President for Advertising and Marketing Services of URC. She also
handles all Advertising and Public Relations, Consumer Promotions, Special Events and Market Research
requirements of URC. She is also Vice President for Advertising and Public Relations for the JG Group
and handles all Advertising and Public Relations for the JG Group including Summit Media and
Robinsons Retail Group. She joined URC in 1993 as Director of Marketing Services. She began her
more than 20 year-career in Advertising and Communications in Basic/FCB. She was also a freelance
broadcast producer and the Philippine representative of Hong Kong-based Centro Digital Pictures. She
graduated from Ateneo de Manila University with a degree in Communication Arts. Ms. Anne Patricia C.
Go is the niece of Mr. John L. Gokongwei, Jr.
Alan D. Surposa is the Vice President for Procurement of URC Branded Consumer Foods Group -
Philippines and International. He had an expanded role as Vice President - Corporate Procurement of JG
Group effective March 18, 2015. He is responsible for ensuring that the procurement processes operate
smoothly and consistently across the group in line with the set procurement policies of the organization.
He will synergize procurement policies, procedures and strategies across the different businesses to create
a unified procurement group that is efficient, competent and strategically aligned to deliver competitive
advantage. In his expanded role, he also exercises strong functional oversight over heads/managers in the
different countries whose work revolves around procurement to ensure consistent alignment and
synergies across the region. He also handles the Corporate Import Services of JGSHI. He is a member
and formerly a Director of The Purchasing Managers Association of the Philippines. He received his
Bachelor of Science degree in Civil Engineering from the Cebu Institute of Technology in Cebu City.
Rosalinda F. Rivera was appointed Corporate Secretary of URC on May 22, 2004 and has been Assistant
Corporate Secretary since May 2002. She is also the Corporate Secretary of JGSHI, Robinsons Land
Corporation, Cebu Air, Inc., Robinsons Retail Holdings, Inc., JG Summit Olefins Corporation and JG
Summit Petrochemical Corporation. Prior to joining URC, she was a Senior Associate at Puno and Puno
Law Offices. She received a Juris Doctor degree from the Ateneo de Manila University School of Law
and a Masters of Law degree in International Banking from the Boston University School of Law. She
was admitted to the Philippine Bar in 1995.
- 34 -
Socorro ML. Banting is the Assistant Vice President and Assistant Treasurer of URC. She is also an
officer of other related companies of URC. Prior to joining URC in 1986, she worked with State
Investment House, Inc. and Manila Midtown Hotel. She obtained her Bachelor of Science degree in
Business Administration from the Ateneo de Davao University.
Arlene S. Denzon is the Compliance Officer of URC and Vice President of the Corporate Governance
and Management Systems (CGMS) of JGSHI. Prior to rejoining URC in February 2013, she was the
Senior Vice President in charge of the Enterprise-wide Risk Management Group of Digitel Mobile
Philippines, Inc. (DMPI, more popularly known as Sun Cellular) until December 2012. Ms. Denzon
started her career in the Gokongwei Group in 1991 and performed various roles including Accounting
Manager of JGSHI until 1997, Assistant Vice President - Special Assistant to the Chairman until 2001,
Vice President - Treasurer and Acting Chief Financial Officer of URC International until 2003 before she
was seconded to DMPI in 2004. Prior to JGSHI, Ms. Denzon had three years working experience as
external auditor in SyCip, Gorres, Velayo & Co. She was a Certified Public Accountant Board
topnotcher and obtained her Bachelor of Accountancy degree, Magna Cum Laude, from the Polytechnic
University of the Philippines.
The members of the Company’s board of directors and executive officers can be reached at the address of
its registered office at 8th Floor, Tera Tower, Bridgetowne, E. Rodriguez Jr. Avenue (C5 Road), Ugong
Norte, Quezon City, Philippines.
Involvement in Certain Legal Proceedings of Directors and Executive Officers
None of the members of the Board of Directors and Executive Officers of the Company are involved in
any criminal, bankruptcy or insolvency investigations or proceedings.
Family Relationships
1. Mr. James L. Go is the brother of Mr. John L. Gokongwei, Jr.

2. Mr. Lance Y. Gokongwei is the son of Mr. John L. Gokongwei, Jr.
3. Mr. Patrick Henry C. Go is the nephew of Mr. John L. Gokongwei, Jr.
4. Mr. Johnson Robert G. Go, Jr. is the nephew of Mr. John L. Gokongwei, Jr.
5. Mr. Vincent Henry C. Go is the nephew of Mr. John L. Gokongwei, Jr.
6. Ms. Anne Patricia C. Go is the niece of Mr. John L. Gokongwei, Jr.
Item 11. Executive Compensation
The following summarizes certain information regarding compensation paid or accrued during the last
two (2) years and to be paid in the ensuing year to the Company’s Directors and Executive Officers:
Estimated - CY2019 Actual
Salary Bonus Other Total CY2018 CY2017
CEO and Four (4) most
highly compensated
executive officers P129,919,492
= =2,000,000
P =1,025,000 P
P =132,944,492 P
=118,747,121 P
=115,286,005
All officers and directors as a
group unnamed 187,324,651 3,000,000 1,425,000 191,749,651 172,850,653 146,773,330
The following are the five (5) highest compensated directors and/or executive officers of the Company:
1. Director, Chairman Emeritus James L. Go; 2. Director, Chairman Emeritus and Founder - John L.
Gokongwei, Jr.; 3. Director, Chairman - Lance Y. Gokongwei; 4. President and Chief Executive President
- Irwin C. Lee; and 5. Executive Vice President - Cornelio S. Mapa, Jr.
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Standard Arrangements
There are no standard arrangements pursuant to which directors of the Company are compensated, or are
to be compensated, directly or indirectly, for any services provided as a director for the last completed
year and the ensuing year.
Other Arrangements
There are no other arrangements pursuant to which directors of the Company are compensated, or are to
be compensated, directly or indirectly, for any services provided as a director for the last completed year
and the ensuing year.
Employment Contracts and Termination of Employment and Change-in-Control Arrangement
There are no special employment contracts between the Corporation and the named executive officers.
There are no compensatory plans or arrangements with respect to a named executive officer.
Warrants and Options Outstanding
There are no outstanding warrants or options held by the Corporation’s CEO, the named executive
officers and all officers and directors as a group.
Item 12. Security Ownership of Certain Beneficial Owners and Management
(1) Security Ownership of Certain Record and Beneficial Owners
As of December 31, 2018, URC knows no one who beneficially owns in excess of 5% of URC’s common
stock except as set forth in the table below.
Names and addresses of record Name of beneficial

Title of owners and relationship with the owner and relationship % to Total
Class Corporation with record owner Citizenship No. of Shares Held Outstanding
Common JGSHI
43/F Robinsons Equitable Tower, ADB
Avenue corner Poveda Street, Ortigas
Center, Pasig City Same as record owner
Filipino 1,215,223,061 55.13%
(stockholder) (See Note 1)
Common PCD Nominee Corporation
(Non-Filipino)
G/F Makati Stock Exchange Bldg. PCD Participants and
6767 Ayala Ave., Makati City their clients 704,513,078
(stockholder) (See Note 2) Non-Filipino (See Note 3) 31.96%
Common PCD Nominee Corporation (Filipino)
G/F Makati Stock Exchange Bldg.
6767 Ayala Ave., Makati City PCD Participants and
(stockholder) their clients 249,650,620
(See Note 2) Filipino (See Note 3) 11.33%
_________________________________________________________________________________________________________________
1. The Chairman and the President are both empowered under the By-Laws of JGSHI to vote any and all shares owned by JGSHI, except as
otherwise directed by the Board of Directors. The incumbent Chairman and Chief Executive Officer JGSHI are Mr. James L. Go and Mr.
Lance Y. Gokongwei, respectively.
2. PCD Nominee Corporation is the registered owner of the shares in the books of the Corporation’s transfer agent. PCD Nominee Corporation
is a corporation wholly-owned by Philippine Depository and Trust Corporation, Inc. (formerly the Philippine Central Depository) (“PDTC”),
- 36 -
whose sole purpose is to act as nominee and legal title holder of all shares of stock lodged in the PDTC. PDTC is a private corporation
organized to establish a central depository in the Philippines and introduce scripless or book-entry trading in the Philippines. Under the
current system of the PDTC, only participants (brokers and custodians) are recognized by PDTC as the beneficial owners of the lodged shares.
Each beneficial owner of shares through his participant is the beneficial owner to the extent of the number of shares held by such participant
in the records of the PCD Nominee.
3. Out of the PCD Nominee Corporation account, “The Hongkong and Shanghai Banking Corp. Ltd. - Clients’ Acct.” and “Deutsche Bank
Manila - Clients A/C” hold for various trust accounts the following shares of the Corporation as of December 31, 2018:
No. of shares % to Outstanding

The Hongkong and Shanghai Banking Corp. Ltd. - Clients’ Acct 380,116,928 17.68%
Deutsche Bank Manila - Clients A/C 227,940,857 10.34%
Voting instructions may be provided by the beneficial owners of the shares.
(2) Security Ownership of Management
Amount &
nature of
Title of Name of beneficial beneficial % to Total
Class Owner Position ownership Citizenship Outstanding
Named Executive Officers1

Common 1. John L. Gokongwei, Jr. 2 Director, Chairman 2,479,401 Filipino 0.11%
Emeritus and Founder
Common 2. James L. Go Director, Chairman 1 Filipino *
Emeritus
Common 3. Lance Y. Gokongwei Director, Chairman 500,001 Filipino 0.02%
- 4. Cornelio S. Mapa, Jr. Executive Vice President - Filipino -
Common 5. Irwin C. Lee Director, President and 1 Filipino *
Chief Executive Officer
Sub-Total 2,979,404 0.14%
Other Directors, Executive Officers and Nominees

Common 6. Patrick Henry C. Go Director, Vice President 45,540 Filipino *
Common 7. Johnson Robert G. Go, Jr. Director 1 Filipino *
Common 8. Robert G. Coyiuto, Jr. Director 1 Filipino *
Common 9. Wilfrido E. Sanchez Director (Independent) 1 Filipino *
Common 10. Cesar V. Purisima Director (Independent) 1 Filipino *
Common 11. Vincent Henry C. Go Vice President 45,540 Filipino *

Common 12. Anne Patricia C. Go Vice President 8,855 Filipino *
Sub-Total 99,939 *
3,079,343 0.14%
__________________________________________________________________________________
1. As defined under Part IV (B) (1) (b) of Annex “C” of SRC Rule 12, the “named executive officers” to be listed refer to the Chief Executive
Officer and those that are the four (4) most highly compensated executive officers as of December 31, 2018.
2. Sum of shares in the name of “John Gokongwei, Jr.” for one (1) share and “Elizabeth Y. Gokongwei and/or John Gokongwei, Jr.” for
2,479,400 shares.
* less than 0.01%
(3) Voting Trust Holders of 5% or more
There are no persons holding more than 5% of a class under a voting trust or similar agreement.
- 37 -
Item 13. Certain Relationships and Related Transactions
The Company, in its regular conduct of business, had engaged in transactions with its major stockholder,
JGSHI and its affiliated companies. See Note 34 (Related Party Transactions) of the Notes to
Consolidated Financial Statements (page 34) in the accompanying Audited Financial Statements filed as
part of this Form 17-A.
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PART IV - EXHIBITS AND SCHEDULES
Item 14. Exhibits and Reports on SEC Form 17-C
(a) Exhibits - See accompanying Index to Exhibits (page 45)
(b) Reports on SEC Form 17-C

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UNIVERSAL ROBINA CORPORATION

LIST OF CORPORATE DISCLOSURES/REPLIES TO SEC LETTERS
UNDER SEC FORM 17-C
JULY 1, 2018 TO DECEMBER 31, 2018
Date of Disclosure Description
July 30, 2018 Press Release entitled “URC growth accelerates in Q2 driven by
International and Agro-industrial Commodities Divisions”.
August 13, 2018 Change in designation of an officer
August 17, 2018 Change in number of issued shares
August 23, 2018 Press Release entitled “URC to acquire Roxas Holdings/Central
Azucarera Don Pedro sugar mill in Batangas”.
August 24, 2018 Disclosure on the acquisition of the milling and refinery assets in Brgy.
Lumbangan, Nasugbu, Batangas.
September 26, 2018 Acquisition of shares owned by Calbee, Inc. in Calbee-URC, Inc.
September 28, 2018 Acquisition of shares owned by ConAgra Grocery Products Company,
LLC in Hunt-Universal Robina Corporation.
October 1, 2018 Acquisition of shares owned by Calbee, Inc. in Calbee-URC, Inc.
[Amended-1]
October 18, 2018 Acquisition of shares owned by Calbee, Inc. in Calbee-URC, Inc.
[Amended-2]
October 25, 2018 Press Release entitled “URC continue to grow topline amidst a tougher
macroenvironment”.
November 12, 2018 Change in designation of an officer
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SUBSCRIBED AND SWORN to before me this ____ day of _______, 2019 affiants exhibiting to me
his/their Community Tax Certificates, as follows:
PLACE
NAMES DOCUMENT NO. DATE OF ISSUE OF ISSUE
Passport No.
Irwin C. Lee P8857404A 09.23.18 Manila
Passport No.
Francisco M. Del Mundo P9624564A 11.20.18 Manila
SSS ID No.
Rosalinda F. Rivera 33-2484959-1
Doc. No. ____;

Page No. ____;
Book No. ____;
Series of 2019.
- 42 -
UNIVERSAL ROBINA CORPORATION AND SUBSIDIARIES
INDEX TO FINANCIAL STATEMENTS AND SUPPLEMENTARY SCHEDULES
FORM 17- A, Item 7
Page No.
Consolidated Financial Statements
Statement of Management’s Responsibility for Financial Statements 44
Report of Independent Auditors 45
Consolidated Statements of Financial Position as of December 31, 2018 and 2017 51
Consolidated Statements of Income for each of the three years in the period ended
December 31, 2018 53
Consolidated Statements of Comprehensive Income for each of the three years in
the period ended December 31, 2018 54
Consolidated Statements of Changes in Equity for each of the three years in
the period ended December 31, 2018 55
Consolidated Statements of Cash Flows for each of the three years
in the period ended December 31, 2018 56
Notes to Consolidated Financial Statements 58
Supplementary Schedule
Report of Independent Auditors on Supplementary Schedules
A. Financial Assets 165
B. Amounts Receivable from Directors, Officers, Employees, Related Parties and
Principal Stockholders (Other than Related Parties) 166
C. Amounts Receivable from Related Parties which are Eliminated during the
Consolidation of Financial Statements 167
D. Intangible assets - other assets 168
E. Long-term Debt 169
F. Indebtedness to Related Parties (Long-term Loans from Related Parties)
Guarantees of Securities of Other Issuers 170
G. Guarantees of Securities and Other Issuers 171
H. Capital Stock 172
List of PFRS effective as of December 31, 2018 173

Organizational Chart 180
Schedule of Retained Earnings Available for Dividend Declaration 184
___
* Not applicable per section 1(b) (xii), 2(e) and 2 (I) of SRC Rule 68
** These schedules, which are required by Section 4(e) of SRC Rule 68, have been
omitted because they are either not required, not applicable or the information required
to be presented is included/shown in the related URC & Subsidiaries’ consolidated
financial statements or in the notes thereto.
Universal Robina Corporation
and Subsidiaries
Consolidated Financial Statements

As of December 31, 2018 and 2017
and for the years ended December 31, 2018,
December 31, 2017 and
three months ended December 31, 2016
and
Independent Auditor’s Report

SyCip Gorres Velayo & Co. Tel: (632) 891 0307 BOA/PRC Reg. No. 0001,
6760 Ayala Avenue Fax: (632) 819 0872 October 4, 2018, valid until August 24, 2021
1226 Makati City ey.com/ph SEC Accreditation No. 0012-FR-5 (Group A),
Philippines November 6, 2018, valid until November 5, 2021
- 45 -
- 45 -
INDEPENDENT AUDITOR’S REPORT
The Stockholders and the Board of Directors

8th Floor, Tera Tower, Bridgetowne
E. Rodriguez, Jr. Avenue (C5 Road)
Ugong Norte, Quezon City, Metro Manila
Opinion
We have audited the consolidated financial statements of Universal Robina Corporation and its
subsidiaries (the Group), which comprise the consolidated statements of financial position as at
December 31, 2018 and 2017, and the consolidated statements of income, consolidated statements of
comprehensive income, consolidated statements of changes in equity and consolidated statements of cash
flows for the years ended December 31, 2018 and 2017 and the period October 1, 2016 to
December 31, 2016, and the notes to the consolidated financial statements, including a summary of
significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects,
the consolidated financial position of the Group as at December 31, 2018 and 2017, and its consolidated
financial performance and its consolidated cash flows for the years ended December 31, 2018 and 2017
and the period October 1, 2016 to December 31, 2016 in accordance with Philippine Financial Reporting
Standards (PFRSs).
Basis for Opinion
We conducted our audits in accordance with Philippine Standards on Auditing (PSAs). Our
responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit
of the Consolidated Financial Statements section of our report. We are independent of the Group in
accordance with the Code of Ethics for Professional Accountants in the Philippines (Code of Ethics)
together with the ethical requirements that are relevant to our audit of the consolidated financial
statements in the Philippines, and we have fulfilled our other ethical responsibilities in accordance with
these requirements and the Code of Ethics. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our opinion.
Key Audit Matters
A key audit matter is one that, in our professional judgment, was of most significance in our audit of the
consolidated financial statements of the current period. The matter below was addressed in the context of
our audit of the consolidated financial statements as a whole, and in forming our opinion thereon, and we
do not provide a separate opinion on this matter. The description of how our audit addressed the matter is
provided in that context.
*SGVFS035342*
A member firm of Ernst & Young Global Limited
- 46 -
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Consolidated Financial Statements section of our report, including in relation to these matters.
Accordingly, our audit included the performance of procedures designed to respond to our assessment of
the risks of material misstatement of the consolidated financial statements. The results of our audit
procedures, including the procedures performed to address the matters below, provide the basis for our
audit opinion on the accompanying consolidated financial statements.
Recoverability of Goodwill and Intangible Assets
As of December 31, 2018, the Group’s goodwill attributable to the acquisition of Consolidated Snacks,
Pty. Ltd., Griffin’s Food Limited and other acquired entities amounted to P =31.2 billion. The Group’s
intangible assets with indefinite useful lives pertaining to trademarks and product formulation amounted
to =
P9.4 billion and =P0.4 billion, respectively. These items are significant to the consolidated financial
statements. Under PFRS, the Group is required to test annually the amount of goodwill and intangible
assets with indefinite useful lives for impairment. Accordingly, management has performed an
impairment test on its goodwill and other intangible assets with indefinite useful lives. In addition,
management’s assessment process requires significant judgment and is based on assumptions, specifically
revenue growth rate, discount rate and the long-term growth rate.
The Group’s disclosures about goodwill and intangible assets are included in Notes 3 and 15 to the
consolidated financial statements.
Audit response
We reviewed the value in use calculation prepared by management. We involved our internal specialist
in evaluating the methodologies and the assumptions used. These assumptions include revenue growth
rate, discount rate and the long-term growth rate. We compared the key assumptions used, such as
revenue growth rate against the historical performance of the cash generating unit (CGU),
industry/market outlook and other relevant external data. We tested the parameters used in the
determination of the discount rate against market data. We also reviewed the Group’s disclosures about
those assumptions to which the outcome of the impairment test is most sensitive, specifically those that
have the most significant effect on the determination of the recoverable amount of goodwill and
intangible assets with indefinite useful lives.
Adoption of PFRS 15, Revenue from Contracts with Customers
Effective January 1, 2018, the Group adopted the new revenue recognition standard, PFRS 15, Revenue
from Contracts with Customers, under the modified retrospective approach. The adoption of PFRS 15
resulted in significant changes in the Group’s revenue recognition policies, process, and procedures. The
adoption of PFRS 15 is significant to our audit because this involves application of significant
management judgment and estimation in the: (1) identification of the contract for sale of goods that would
meet the requirements of PFRS 15; (2) assessment of performance obligation and the probability that the
entity will collect the consideration from the buyer; (3) determining method to estimate variable
consideration and assessing the constraint; and (4) recognition of revenue as the Group satisfies the
performance obligation.
Refer to Notes 2 and 3 of the consolidated financial statements for the disclosure in relation to the
adoption of PFRS 15.
*SGVFS035342*
- 47 -
Audit response
We obtained an understanding of the Group’s process in implementing the new revenue recognition
standard. We reviewed the PFRS 15 adoption papers and accounting policies prepared by management,
including revenue streams identification and scoping, and contract analysis.
For significant revenue streams, we obtained sample contracts and reviewed whether the accounting
policies appropriately considered the five-step model and cost requirements of PFRS 15.
In addition, we reviewed sample contracts and checked whether management has identified and estimated
all components of the transaction price (variable consideration and consideration payable to a customer)
and applied the constraint on variable consideration. We evaluated management’s assumptions (historical
trend of volume discounts and rights of return) by comparing the historical experience of the Group with
the assumptions used in its estimates as it relates to variable consideration.
We also reviewed the application of the accounting policy in relation to the adoption of the new standard.
We also reviewed the disclosures related to the transition adjustments based on the requirements of
PFRS 15.
Estimation of fair value of biological assets
The Group’s biological assets consist of hog and poultry livestock which are carried at fair value less cost
to sell. The Group determines fair value based on the current market prices of livestock of similar age,
breed and genetic merit. As of December 31, 2018, the Group has biological assets amounting to
=
P1.11 billion, with fair value changes amounting to =P0.47 billion in the same year. This matter is
significant to our audit because the determination of fair value of biological assets involves significant
estimation.
Refer to Notes 2 and 3 of the consolidated financial statements for the relevant accounting policy and a
discussion of significant estimates, and Note 14 for the disclosure about the fair value of biological assets.
Audit response
We obtained an understanding of management’s fair value measurement methodology and their process
in valuing the biological assets. We tested the key assumptions used in the valuation, which include future
growing costs, estimated volume of production and gross margin, by comparing them to both external
data such as selling prices in the principal market and to historical information. We assessed the
composition of costs to sell and tested the reasonableness of allocations. We also assessed the
methodology used in estimating the fair value.
We also assessed the adequacy of the related disclosures on the assumptions underlying the measurement
of these biological assets.
Other Information
Management is responsible for the other information. The other information comprises the
SEC Form 17-A for the year ended December 31, 2018 (but does not include the consolidated financial
statements and our auditor’s report thereon), which we obtained prior to the date of this auditor’s report,
and the SEC Form 20-IS (Definitive Information Statement) and Annual Report for the year ended
December 31, 2018, which are expected to be made available to us after that date.
*SGVFS035342*
- 48 -
Our opinion on the consolidated financial statements does not cover the other information and we do not
and will not express any form of assurance conclusion thereon.
In connection with our audits of the consolidated financial statements, our responsibility is to read the
other information identified above and, in doing so, consider whether the other information is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the audits, or
otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of Management and Those Charged with Governance for the Consolidated
Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial
statements in accordance with PFRSs, and for such internal control as management determines is
necessary to enable the preparation of consolidated financial statements that are free from material
misstatement, whether due to fraud or error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s
ability to continue as a going concern, disclosing, as applicable, matters related to going concern and
using the going concern basis of accounting unless management either intends to liquidate the Group or to
cease operations, or has no realistic alternative but to do so.
Those charged with governance are responsible for overseeing the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a
whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with PSAs will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error and are considered material if, individually or in the
aggregate, they could reasonably be expected to influence the economic decisions of users taken on the
basis of these consolidated financial statements.
As part of an audit in accordance with PSAs, we exercise professional judgment and maintain
professional skepticism throughout the audit. We also:
∂ Identify and assess the risks of material misstatement of the consolidated financial statements,
whether due to fraud or error, design and perform audit procedures responsive to those risks, and
obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of
not detecting a material misstatement resulting from fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
*SGVFS035342*
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∂ Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the Group’s internal control.
∂ Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by management.
∂ Conclude on the appropriateness of management’s use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the consolidated financial statements or, if such disclosures are
inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to
the date of our auditor’s report. However, future events or conditions may cause the Group to cease
to continue as a going concern.
∂ Evaluate the overall presentation, structure and content of the consolidated financial statements,
including the disclosures, and whether the consolidated financial statements represent the underlying
transactions and events in a manner that achieves fair presentation.
∂ Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the consolidated financial statements.
We are responsible for the direction, supervision and performance of the audit. We remain solely
responsible for our audit opinion.
We communicate with those charged with governance regarding, among other matters, the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal
control that we identify during our audit.
We also provide those charged with governance with a statement that we have complied with relevant
ethical requirements regarding independence, and to communicate with them all relationships and other
matters that may reasonably be thought to bear on our independence, and where applicable, related
safeguards.
*SGVFS035342*
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From the matters communicated with those charged with governance, we determine those matters that
were of most significance in the audit of the consolidated financial statements of the current period and
are therefore the key audit matters. We describe these matters in our auditor’s report unless law or
regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we
determine that a matter should not be communicated in our report because the adverse consequences of
doing so would reasonably be expected to outweigh the public interest benefits of such communication.
The engagement partner on the audit resulting in this independent auditor’s report is Miguel U. Ballelos, Jr.
SYCIP GORRES VELAYO & CO.
Miguel U. Ballelos, Jr.

Partner
CPA Certificate No. 109950
SEC Accreditation No. 1566-AR-1 (Group A),
April 3, 2019, valid until April 2, 2022
Tax Identification No. 241-031-088
BIR Accreditation No. 08-001998-114-2019,
January 28, 2019, valid until January 27, 2022
PTR No. 7332525, January 3, 2019, Makati City
April 5, 2019
*SGVFS035342*
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CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
December 31
2018 2017
ASSETS
Current Assets
Cash and cash equivalents (Note 7) P
=13,023,101,912 =14,497,517,791
P
Financial assets at fair value through profit or loss (Note 8) 420,153,416 455,577,705
Receivables (Note 10) 14,405,323,971 16,116,493,339
Inventories (Note 11) 22,085,770,041 18,465,363,440
Biological assets (Note 14) 741,719,637 1,180,266,509
Other current assets (Note 12) 3,733,665,505 2,987,386,097
54,409,734,482 53,702,604,881
Noncurrent Assets
Property, plant and equipment (Note 13) 51,950,316,266 48,254,128,303
Biological assets (Note 14) 366,184,414 498,309,880
Goodwill (Note 15) 31,194,495,817 31,212,075,404
Intangible assets (Note 15) 11,730,260,354 11,810,036,032
Investments in joint ventures (Note 16) 520,917,509 552,226,288
Deferred income tax assets (Note 32) 195,485,985 216,916,334
Other noncurrent assets (Note 17) 1,568,318,583 1,394,502,377
97,525,978,928 93,938,194,618
TOTAL ASSETS P
=151,935,713,410 P
=147,640,799,499
LIABILITIES AND EQUITY
Current Liabilities
Accounts payable and other accrued liabilities (Note 19) P
=22,766,759,527 =21,571,118,556
P
Short-term debts (Notes 18 and 22) 2,461,385,106 2,009,317,911
Trust receipts payable (Notes 11 and 22) 6,019,613,469 3,155,187,680
Income tax payable 720,742,396 1,263,938,251
31,968,500,498 27,999,562,398
Noncurrent Liabilities
Long-term debts (Notes 20 and 22) 31,457,123,882 33,225,962,388
Deferred tax liabilities (Note 32) 4,228,752,279 4,261,515,625
Other noncurrent liabilities (Notes 16 and 21) 287,857,481 467,746,491
35,973,733,642 37,955,224,504
67,942,234,140 65,954,786,902
(Forward)
*SGVFS035342*
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December 31
2018 2017
Equity
Equity attributable to equity holders of the parent
Paid-up capital (Note 22) P
=23,422,134,732 = P23,083,782,043
Retained earnings (Note 22) 63,789,482,388 63,243,842,044
Other comprehensive income (Note 23) 2,334,566,528 492,151,622
Equity reserve (Note 22) (5,075,466,405) (5,075,466,405)
Treasury shares (Note 22) (679,489,868) (341,137,179)
83,791,227,375 81,403,172,125
Equity attributable to non-controlling interest (Notes 16 and 22) 202,251,895 282,840,472
83,993,479,270 81,686,012,597
TOTAL LIABILITIES AND EQUITY P

=151,935,713,410 P
=147,640,799,499
See accompanying Notes to Consolidated Financial Statements.
*SGVFS035342*
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CONSOLIDATED STATEMENTS OF INCOME
December 31,
December 31, December 31, 2016
2018 2017 (Three Months -
(One Year) (One Year) Note 2)
SALE OF GOODS AND SERVICES (Notes 24 and 34) P
=127,769,949,329 =125,007,824,013
P P30,940,237,745
=
COST OF SALES (Notes 24 and 34) 90,332,569,341 85,693,355,234 21,143,380,393
GROSS PROFIT 37,437,379,988 39,314,468,779 9,796,857,352
Selling and distribution costs (Note 25) (18,719,558,853) (19,250,876,212) (4,541,783,127)
General and administrative expenses (Note 26) (5,337,208,345) (5,111,425,807) (1,169,103,846)
OPERATING INCOME 13,380,612,790 14,952,166,760 4,085,970,379
Finance costs (Note 30) (1,661,700,393) (1,427,329,826) (338,591,320)
Finance revenue (Note 29) 359,281,191 225,582,853 49,947,558
Net foreign exchange gains (losses) (174,658,640) 154,190,672 (433,863,058)
Equity in net losses of joint ventures (Note 16) (132,407,965) (280,533,323) (49,411,584)
Provision for credit and impairment losses (Notes 10, 11 and 15) (45,001,536) (21,423,202) (2,773,188)
Market valuation gain (loss) on financial assets and liabilities at
fair value through profit or loss - net (Note 8) (35,424,289) 71,016,151 (4,514,684)
Other income (loss) - net (Notes 13, 16, 17 and 19) (145,821,109) 276,737,549 (89,650,692)
INCOME BEFORE INCOME TAX 11,544,880,049 13,950,407,634 3,217,113,411
PROVISION FOR INCOME TAX (Note 32) 2,082,093,827 2,797,486,301 767,495,099
NET INCOME P
=9,462,786,222 =11,152,921,333
P =2,449,618,312
P
NET INCOME ATTRIBUTABLE TO:

Equity holders of the parent (Note 33) P
=9,204,306,540 =10,888,080,693
P =2,402,116,084
P
Non-controlling interests (Note 16) 258,479,682 264,840,640 47,502,228
P
=9,462,786,222 =11,152,921,333
P =2,449,618,312
P
EARNINGS PER SHARE (Note 33)

Basic/diluted, for income attributable to equity
holders of the parent P
=4.18 =4.94
P =1.09
P
*SGVFS035342*
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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
December 31,
NET INCOME P
=9,462,786,222 P
=11,152,921,333 =2,449,618,312
P
OTHER COMPREHENSIVE INCOME (LOSS)
Items to be reclassified to profit or loss in subsequent
periods, net of tax:
Cumulative translation adjustments (Note 23) 1,630,309,574 (1,392,324,892) 1,200,565,078
Unrealized loss on cash flow hedge (Notes 9 and 23) (3,336,554) (11,359,659) 19,196,810
Unrealized gain on available-for-sale financial assets
(Notes 17 and 23) − 2,950,000 1,200,000
1,626,973,020 (1,400,734,551) 1,220,961,888
Item not to be reclassified to profit or loss in subsequent
periods:
Remeasurement gains on defined benefit
plans (Notes 23 and 31) 300,219,467 39,544,208 192,095,316
Income tax effect (90,065,840) (11,863,262) (57,628,595)
Unrealized gain on financial assets at fair value through
other comprehensive income (Notes 17 and 23) 4,320,000 − −
214,473,627 27,680,946 134,466,721
OTHER COMPREHENSIVE INCOME (LOSS) 1,841,446,647 (1,373,053,605) 1,355,428,609
TOTAL COMPREHENSIVE INCOME P
=11,304,232,869 =9,779,867,728
P =3,805,046,921
P
TOTAL COMPREHENSIVE INCOME

ATTRIBUTABLE TO:
Equity holders of the parent P
=11,046,721,446 =9,512,498,099
P =3,757,544,693
P
Non-controlling interests 257,511,423 267,369,629 47,502,228
P
=11,304,232,869 =9,779,867,728
P =3,805,046,921
P
*SGVFS035342*
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CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
Attributable to Equity Holders of the Parent

Paid-up Capital (Note 22) Retained Earnings (Note 22) Other Comprehensive Income (Loss) (Note 23)
Net Unrealized Equity
Gain on Unrealized Attributable to
Financial Assets Gain (Loss) on Remeasurement Non-controlling
Additional Total Unappropriated Appropriated Total Cumulative at FVOCI/ Cash Flow Losses Total Other Equity Treasury Interest
Capital Paid-in Paid-up Retained Retained Retained Translation AFS Investment Hedge on Defined Comprehensive Reserve Shares (Notes 16, 22
Stock Capital Capital Earnings Earnings Earnings Adjustments (Note 17) (Note 9) Benefit Plans Income (Note 22) (Note 22) Total and 23) Total Equity
Balances as at January 1, 2018, as previously
stated P
=2,227,638,933 P
=20,856,143,110 P
=23,083,782,043 P
=58,743,842,044 P
=4,500,000,000 P
=63,243,842,044 P
=850,642,705 P
=24,260,000 P
=7,936,673 (P
=390,687,756) P
=492,151,622 (P
=5,075,466,405) (P
=341,137,179)P
=81,403,172,125 P
=282,840,472 P
=81,686,012,597
Effect of adoption of new accounting standard –
PFRS 9 (Note 2) – – – (1,715,556,312) – (1,715,556,312) – – – – – – – (1,715,556,312) – (1,715,556,312)
Balances as at January 1, 2018, as restated 2,227,638,933 20,856,143,110 23,083,782,043 57,028,285,732 4,500,000,000 61,528,285,732 850,642,705 24,260,000 7,936,673 (390,687,756) 492,151,622 (5,075,466,405) (341,137,179) 79,687,615,813 282,840,472 79,970,456,285
Net income for the year – – – 9,204,306,540 – 9,204,306,540 – – − – – – – 9,204,306,540 258,479,682 9,462,786,222
Other comprehensive income (loss) – – – – – – 1,630,309,574 4,320,000 (3,336,554) 211,121,886 1,842,414,906 – – 1,842,414,906 (968,259) 1,841,446,647
Total comprehensive income – – – 9,204,306,540 – 9,204,306,540 1,630,309,574 4,320,000 (3,336,554) 211,121,886 1,842,414,906 – – 11,046,721,446 257,511,423 11,304,232,869
Cash dividends (Note 22) – – – (6,943,109,884) – (6,943,109,884) – – – − – – – (6,943,109,884) (338,100,000) (7,281,209,884)
Issuance of shares (purchase of treasury shares)
(Note 22) 2,521,257 335,831,432 338,352,689 – – – – – – – – – (338,352,689) − – --
Reversal of appropriation of retained earnings
(Note 22) – – – 2,500,000,000 (2,500,000,000) − – – – – – – – – – –
Balances as at December 31, 2018 P
=2,230,160,190 P
=21,191,974,542 P
=23,422,134,732 P
=61,789,482,388 P
=2,000,000,000 P=63,789,482,388 P
=2,480,952,279 P
=28,580,000 P
=4,600,119 (P
=179,565,870) P
=2,334,566,528 (P
=5,075,466,405) (P
=679,489,868)P
=83,791,227,375 P
=202,251,895 P
=83,993,479,270
Balances as at January 1, 2017 =2,227,638,933 P

P =20,856,143,110 P
=23,083,782,043 P56,298,871,235 P
= =3,000,000,000 P59,298,871,235 =
= P2,242,967,597 =21,310,000
P =19,296,332
P (P
=415,839,713) =
P1,867,734,216 (P
=5,075,466,405) (P
=341,137,179) P
=78,833,783,910 P15,470,843 =
= P78,849,254,753
Net income for the year – – – 10,888,080,693 – 10,888,080,693 – – − – – – – 10,888,080,693 264,840,640 11,152,921,333
Other comprehensive income (loss) – – – – – – (1,392,324,892) 2,950,000 (11,359,659) 25,151,957 (1,375,582,594) – – (1,375,582,594) 2,528,989 (1,373,053,605)
Total comprehensive income – – – 10,888,080,693 – 10,888,080,693 (1,392,324,892) 2,950,000 (11,359,659) 25,151,957 (1,375,582,594) – – 9,512,498,099 267,369,629 9,779,867,728
Cash dividends (Note 22) – – – (6,943,109,884) – (6,943,109,884) – – – − – – – (6,943,109,884) – (6,943,109,884)
Appropriation of retained earnings (Note 22) – – – (1,500,000,000) 1,500,000,000 − – – – – – – – – – –
Balances as at December 31, 2017 =2,227,638,933 P
P =20,856,143,110 P
=23,083,782,043 =58,743,842,044 P
P =4,500,000,000 =63,243,842,044
P P850,642,705
= =24,260,000
P =7,936,673
P (P
=390,687,756) = P492,151,622 (P
=5,075,466,405) (P
=341,137,179) P
=81,403,172,125 =282,840,472 P
P =81,686,012,597
Balances as at October 1, 2016 =2,227,638,933 P

P =20,856,143,110 P
=23,083,782,043 =
P53,896,755,151 P
=3,000,000,000 =
P56,896,755,151 P
=1,042,402,519 =20,110,000
P =99,522
P (P
=550,306,434) P =512,305,607 (P
=5,075,466,405) (P
=341,137,179) P
=75,076,239,217 =195,818,615 P
P =75,272,057,832
Net income for the period – – – 2,402,116,084 – 2,402,116,084 – – − – – – – 2,402,116,084 47,502,228 2,449,618,312
Other comprehensive income (loss) – – – – – – 1,200,565,078 1,200,000 19,196,810 134,466,721 1,355,428,609 – – 1,355,428,609 − 1,355,428,609
Total comprehensive income – – – 2,402,116,084 – 2,402,116,084 1,200,565,078 1,200,000 19,196,810 134,466,721 1,355,428,609 – – 3,757,544,693 47,502,228 3,805,046,921
Cash dividends (Note 22) – – – − – − – – – − – – – − (227,850,000) (227,850,000)
Balances as at December 31, 2016 =2,227,638,933 P
P =20,856,143,110 P
=23,083,782,043 P
=56,298,871,235 =
P3,000,000,000 P
=59,298,871,235 =
P2,242,967,597 =21,310,000
P =19,296,332
P (P
=415,839,713) =
P1,867,734,216 (P
=5,075,466,405) (P
=341,137,179) P
=78,833,783,910 =15,470,843 P
P =78,849,254,753
*SGVFS035342*
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CONSOLIDATED STATEMENTS OF CASH FLOWS
December 31,
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax P
=11,544,880,049 =13,950,407,634
P =3,217,113,411
P
Adjustments for:
Depreciation and amortization (Note 27) 6,369,775,844 6,104,063,359 1,506,918,564
Finance costs (Note 30) 1,600,072,501 1,427,329,826 338,591,320
Gain on sale/disposals of property, plant and equipment
(Note 13) (629,392,076) (239,361,566) (1,444,132)
Loss (gain) arising from changes in fair value less
estimated costs to sell of biological assets
(Note 14) 467,471,975 (118,841,072) 104,648,602
Finance revenue (Note 29) (359,281,191) (225,582,853) (49,947,558)
Net foreign exchange losses (gains) 174,658,640 (154,190,672) 433,863,058
Equity in net loss of joint ventures (Note 16) 132,407,965 280,533,323 49,411,584
Unamortized debt issue costs recognized as expense on
pretermination of long-term debt (Notes 20 and 30) 61,627,892 − −
Provision for credit and impairment losses
(Notes 10, 11 and 15) 45,001,536 21,423,202 2,773,188
Market valuation loss (gain) on financial assets at fair
value through profit or loss (Note 8) 35,424,289 (71,016,151) 4,514,684
Operating income before working capital changes 19,442,647,424 20,974,765,030 5,606,442,721
Decrease (increase) in:
Receivables (921,314,586) (933,282,952) (681,674,910)
Inventories (3,704,007,347) 185,447,755 (138,455,495)
Biological assets (272,030) (262,992,645) 6,113,503
Other current assets (634,703,473) (874,122,137) (104,245,020)
Increase (decrease) in:
Accounts payable and other accrued liabilities 1,443,040,708 1,090,362,231 1,663,345,144
Trust receipts payable 2,758,725,897 (1,390,608,195) (144,187,482)
Net cash generated from operations 18,384,116,593 18,789,569,087 6,207,338,461
Income taxes paid (2,558,923,595) (3,458,322,291) (237,863,655)
Interest paid (1,527,185,331) (1,308,340,934) (317,125,531)
Interest received 359,587,480 230,671,556 9,377,116
Net cash provided by operating activities 14,657,595,147 14,253,577,418 5,661,726,391
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisitions of:
Property, plant and equipment (Note 13) (8,641,730,098) (8,129,671,952) (2,132,474,840)
Intangible assets (Note 15) (11,234,200) (4,475,330) (12,651,126)
Derivatives designated as accounting hedge (Note 9) − − (7,470,393)
Financial assets at fair value through
profit or loss − (8,285) −
Investments in joint ventures (Note 16) (406,841,074) (349,776,367) (5,000,000)
Subsidiary, net of cash acquired (Note 16) (173,995,570) − −
Proceeds from:
Sale/disposals of property, plant and equipment 691,614,716 269,369,636 5,962,080
Settlement of derivatives (Note 9) − 4,595,140 −
Decrease (increase) in other noncurrent assets (170,240,967) (216,545,822) 106,550,609
Dividends received (Notes 8 and 16) 32,302,870 18,500,000 −
Net cash used in investing activities (8,680,124,323) (8,408,012,980) (2,045,083,670)
(Forward)
*SGVFS035342*
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December 31, December 31, December 31,

2018 2017 2016
(One Year) (One Year) (Three Months)
CASH FLOWS FROM FINANCING ACTIVITIES
Repayments of:
Short-term debts (Note 37) (P
= 4,050,000,000) (P
=3,850,000,000) (P
=4,438,588,016)
Long-term debts (Note 37) (15,356,761,921) − −
Proceeds from availments of:
Short-term debts 4,650,000,000 4,284,475,807 −
Long-term debt 14,226,028,915 − −
Cash dividends paid (Note 22) (6,943,109,884) (7,170,959,884) −
Increase in other noncurrent liabilities 21,956,187 40,735,510 50,620,673
Net cash used in financing activities (7,451,886,703) (6,695,748,567) (4,387,967,343)
NET DECREASE IN CASH AND
CASH EQUIVALENTS (1,474,415,879) (850,184,129) (771,324,622)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF PERIOD 14,497,517,791 15,347,701,920 16,119,026,542
CASH AND CASH EQUIVALENTS AT
END OF PERIOD P
=13,023,101,912 =14,497,517,791
P =15,347,701,920
P
*SGVFS035342*
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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Corporate Information
Universal Robina Corporation (hereinafter referred to as “the Parent Company” or “URC”) was
incorporated on September 28, 1954 and domiciled in the Republic of the Philippines, and is listed in
the Philippine Stock Exchange. On October 28, 2002, the Parent Company’s corporate life was
extended for another 50 years or until September 28, 2054. The registered office address of the
Parent Company is at 8th Floor Tera Tower, Bridgetowne, E. Rodriguez, Jr. Avenue (C5 Road),
Ugong Norte, Quezon City, Metro Manila.
The Parent Company is a majority owned subsidiary of JGSHI (“the Ultimate Parent Company” or
“JGSHI”).
The Parent Company and its subsidiaries (hereinafter referred to as “the Group”) is one of the largest
branded food products companies in the Philippines and has a strong presence in ASEAN markets.
The Group is involved in a wide range of food-related businesses which are organized into three
(3) business segments: (a) the branded consumer food segment which manufactures and distributes a
diverse mix of salty snacks, chocolates, candies, biscuits, packed cakes, beverages, instant noodles
and pasta; (b) the agro-industrial segment which engages in hog and poultry farming, production and
distribution of animal health products and manufacture and distribution of animal feeds, glucose and
soya bean products; and (c) the commodity food segment which engages in sugar milling and
refining, flour milling and pasta manufacturing and renewable energy development. The Parent
Company also engages in the manufacture of bi-axially oriented polypropylene (BOPP) films for
packaging companies and flexible packaging materials to cater various URC branded products. The
Parent Company’s packaging business is included in the branded consumer food segment.
On April 29, 2016, the Board of Directors (BOD) approved the Parent Company’s change in
accounting period from “Fiscal Year which begins on the first day of October and ends on the last day
of September of the following year” to “Calendar Year which shall begin on the first day of January
and end on the last day of December of the same year” to be implemented effective January 1, 2017.
The Parent Company filed its amended by-laws with the Philippine Securities and Exchange
Commission (SEC) in connection with the change in accounting period, which was approved by the
Philippine SEC on June 20, 2016 (see Note 2). The Parent Company, likewise, filed the request for
change in accounting period with the Bureau of Internal Revenue (BIR), which was approved by the
BIR on December 5, 2016.
On January 15, 2016 and March 9, 2016, the BOD and the Stockholders of the Parent Company,
respectively, approved the amendment to the Articles of Incorporation (AOI) of the Parent Company
to change the principal office address of the Parent Company from 110 E. Rodriguez Avenue,
Bagumbayan, Quezon City, Metro Manila to 8th Floor, Tera Tower, Bridgetowne, E. Rodriguez, Jr.
Avenue (C5 Road), Ugong Norte, Quezon City, Metro Manila. On May 16, 2016, the Philippine SEC
approved the amendment to the principal office address.
The operations of certain subsidiaries are registered with the Board of Investments (BOI) as preferred
pioneer and nonpioneer activities. Under the terms of the registrations and subject to certain
requirements, the Parent Company and certain subsidiaries are entitled to certain fiscal and non-fiscal
incentives, including among others, an income tax holiday (ITH) for a period of three (3) years to
seven (7) years from respective start dates of commercial operations (see Note 35).
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The Group is also subject to certain regulations with respect to, among others, product composition,
packaging, labeling, advertising and safety.
The principal activities of the Group are further described in Note 6.
2. Summary of Significant Accounting Policies
Basis of Preparation
The accompanying consolidated financial statements of the Group have been prepared on a historical
cost basis, except for financial assets at fair value through profit or loss (FVTPL), available-for-sale
(AFS) financial assets/financial assets at fair value through other comprehensive income (FVOCI)
and derivative financial instruments that have been measured at fair value, inventories that have been
measured at lower of cost and net realizable value (NRV) and biological assets and agricultural
produce that have been measured at fair value less estimated costs to sell.
The consolidated financial statements of the Group are presented in Philippine Peso. The functional
and presentation currency of the Parent Company and its Philippine subsidiaries is the Philippine
Peso. All values are rounded to the nearest peso except when otherwise stated.
The functional currencies of the Group’s consolidated foreign subsidiaries follow:
Country of Functional
Subsidiaries Incorporation Currency
URC Asean Brands Co. Ltd. (UABCL) British Virgin Islands US Dollar -
Hong Kong China Foods Co. Ltd. (HCFCL) - do - - do -
URC International Co. Ltd. (URCICL) - do - - do -
URC Oceania Co. Ltd. (URC Oceania) - do - - do -
Shanghai Peggy Foods Co., Ltd.
(Shanghai Peggy) China Chinese Renminbi
URC China Commercial Co. Ltd. (URCCCL) - do - - do -
Xiamen Tongan Pacific Food Co., Ltd. - do - - do -
Guangzhou Peggy Foods Co., Ltd. - do - - do -
Shantou SEZ Shanfu Foods Co., Ltd. - do - - do -
Jiangsu Acesfood Industrial Co., Ltd. - do - - do -
Shantou Peggy Co. Ltd. - do - - do -
URC Hong Kong Company Limited Hong Kong Hong Kong Dollar
PT URC Indonesia Indonesia Indonesian Rupiah
URC Snack Foods (Malaysia) Sdn. Bhd.
(URC Malaysia) Malaysia Malaysian Ringgit
Ricellent Sdn. Bhd. - do - - do -
URC Foods (Singapore) Pte. Ltd. Singapore Singapore Dollar
Acesfood Network Pte. Ltd. - do - - do -
Acesfood Holdings Pte. Ltd. - do - - do -
Acesfood Distributors Pte. Ltd. - do - - do -
Advanson International Pte. Ltd. (Advanson) - do - - do -
URC (Thailand) Co., Ltd. Thailand Thai Baht
Siam Pattanasin Co., Ltd. - do - - do -
URC (Myanmar) Co. Ltd. Myanmar Myanmar Kyat
URC Vietnam Co., Ltd. Vietnam Vietnam Dong
URC Hanoi Company Limited - do - - do -
URC Central Co. Ltd. - do - - do -
URC New Zealand Holding Co. Ltd.
(URC NZ HoldCo) New Zealand New Zealand Dollar
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Country of Functional
Subsidiaries Incorporation Currency
URC New Zealand Finance Co. Ltd.
(URC NZ FinCo) New Zealand New Zealand Dollar
Griffin’s Food Limited (Griffin’s) - do - - do -
Nice and Natural Limited - do - - do -
URC Australia Holding Company Ltd.
(URC AU HoldCo) Australia Australian Dollar
URC Australia Finance Company Ltd.
(URC AU FinCo) - do - - do -
Consolidated Snacks Pty Ltd. (CSPL) - do - - do -
Snack Brands Australia Partnership - do - - do -
The consolidated financial statements as at December 31, 2016 and for the period October 1 to
December 31, 2016 were prepared because of the change in the Group’s accounting period
(see Note 1).
The amounts presented for the period October 1 to December 31, 2016 in the consolidated statements
of income, consolidated statements of comprehensive income, consolidated statements of changes in
equity and consolidated statements of cash flows and the related notes are for the three months, and
accordingly, are not comparable to the calendar years ended December 31, 2018 and 2017.
Statement of Compliance
The consolidated financial statements of the Group have been prepared in compliance with Philippine
Financial Reporting Standards (PFRSs).
Basis of Consolidation
The consolidated financial statements include the financial statements of the Parent Company and the
following wholly and majority owned subsidiaries as of December 31, 2018 and 2017.
Place of Effective Percentages of Ownership

Subsidiaries Incorporation 2018 2017
CFC Corporation Philippines 100.00 100.00
Bio-Resource Power Generation Corporation and a
Subsidiary (BRPGC) - do - 100.00 100.00
Calbee – URC, Inc. (CURCI)* - do - 100.00 50.00
Hunt – URC (HURC)* - do - 100.00 50.00
Nissin – URC (NURC) - do - 51.00 51.00
CFC Clubhouse Property, Inc. (CCPI) - do - − 100.00
URC Philippines, Ltd. (URCPL) British Virgin Islands 100.00 100.00
URCICL and Subsidiaries** - do - 100.00 100.00
Universal Robina (Cayman), Ltd. (URCL) Cayman Islands 100.00 100.00
URCCCL China 100.00 100.00
* Accounted for as joint ventures under equity method until September 30, 2018
** Subsidiaries are located in Thailand, Singapore, Malaysia, Vietnam, Indonesia, China, Hong Kong, Myanmar, New Zealand and
Australia.
Acquisition of CURCI
In September 2018, the Parent Company entered into a share purchase agreement with its joint
venture partner, Calbee, Inc., to purchase the latter’s 50% equity interest in CURCI. As a result of
the sale, CURCI became a wholly-owned subsidiary of URC (see Note 16).
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Acquisition of HURC
venture partner, ConAgra Grocery Products Company, LLC., to purchase the latter’s 50% equity
interest in HURC. As a result of the sale, HURC became a wholly-owned subsidiary of URC
(see Note 16).
Merger of CCPI
On March 10, 2015 and May 27, 2015, the BOD and stockholders of the Parent Company,
respectively, approved the plan to merge CCPI with the Parent Company. On April 25, 2017 and
June 28, 2017, the BOD and stockholders of the Parent Company approved the revised Plan of
Merger and Articles of Merger between the Company and the Parent Company. On April 24, 2018,
the SEC approved the merger (see Notes 16 and 22).
Control
Control is achieved when the Group is exposed, or has rights to variable returns from its involvement
with the investee and has the ability to affect those returns through its power over the investee.
Specifically, the Group controls an investee if and only if the Group has:
∂ Power over the investee (i.e., existing rights that give it the current ability to direct the relevant
activities of the investee);
∂ Exposure, or rights, to variable returns from its involvement with the investee; and
∂ The ability to use its power over the investee to affect its returns.
When the Group has less than a majority of the voting or similar rights of an investee, the Group
considers all relevant facts and circumstances in assessing whether it has power over an investee,
including:
∂ The contractual arrangement with the other vote holders of the investee;
∂ Rights arising from other contractual arrangements; and
∂ The Group’s voting rights and potential voting rights.
The Group re-assesses whether or not it controls an investee if facts and circumstances indicate that
there are changes to one or more of the three elements of control. Consolidation of a subsidiary
begins when the Parent Company obtains control over the subsidiary and ceases when the Parent
Company loses control of the subsidiary. Assets, liabilities, income and expenses of a subsidiary
acquired or disposed of during the year are included in the consolidated statement of comprehensive
income from the date the Parent Company gains control until the date it ceases to control the
subsidiary.
Profit or loss and each component of other comprehensive income (OCI) are attributed to the equity
holders of the Parent of the Group and to the non-controlling interests, even if this results in the non-
controlling interest having deficit balance. When necessary, adjustments are made to the financial
statements of subsidiaries to bring the accounting policies used in line with those used by the Group.
All intragroup transactions, balances, income and expenses are eliminated in the consolidation.
Non-controlling interests in the net assets of consolidated subsidiaries are identified separately from
the Group’s equity therein. The interest of non-controlling shareholders may be initially measured at
fair value or at the non-controlling interest’s proportionate share of the acquiree’s identifiable net
assets. The choice of measurement basis is made on an acquisition-by-acquisition basis. Subsequent
to acquisition, non-controlling interests consist of the amount attributed to such interests at initial
recognition and the non-controlling interest’s share of changes in equity since the date of the
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combination.
Changes in the Group’s ownership interest in subsidiary that do not result in a loss of control are
accounted for as equity transactions. Any difference between the amount by which the non-
controlling interests are adjusted and the fair value of the consideration paid or received is recognized
directly in equity and attributed to the equity holders of the Parent Company.
If the Group loses control over a subsidiary, it:
∂ derecognizes the assets (including goodwill) and liabilities of the subsidiary;

∂ derecognizes the carrying amount of any non-controlling interest;
∂ derecognizes the related other comprehensive income recorded in equity and recycles the same to
profit or loss or retained earnings;
∂ recognizes the fair value of the consideration received;
∂ recognizes the fair value of any investment retained;
∂ recognizes any surplus or deficit in the consolidated statement of income; and
∂ reclassifies the Parent Company’s share of components previously recognized in other
comprehensive income to profit or loss or retained earnings, as appropriate, as would be required
if the Group had directly disposed of the related assets or liabilities.
The financial statements of the subsidiaries are prepared for the same reporting period as the Parent
Company, using consistent accounting policies. Some of the Group's subsidiaries have a local
statutory accounting reference date of September 30. These are consolidated using management
prepared information on a basis coterminous with the Group's accounting reference date.
Below are the subsidiaries with a different accounting reference date from that of the Parent
Company:
Subsidiaries* Year-end
Bio-resource Power Generation Corporation September 30
Southern Negros Development Corporation -do-
*Dormant/non-operating subsidiaries
Business Combinations
Business combinations are accounted for using the acquisition method. The cost of an acquisition is
measured at the aggregate of the fair values, at the date of exchange, of assets given, liabilities
incurred or assumed, and equity instruments issued by the Group in exchange for control of the
acquiree. This policy also covers purchase of assets that constitutes acquisition of a business. For
each business combination, the Group elects whether to measure the non-controlling interests in the
acquiree at fair value or at the proportionate share of the acquiree’s identifiable net assets.
Acquisition-related costs are recognized in profit or loss in the consolidated statement of income as
incurred.
Where appropriate, the cost of acquisition includes any asset or liability resulting from a contingent
consideration arrangement, measured at its acquisition-date fair value. Subsequent changes in such
fair values are adjusted against the cost of acquisition where they qualify as measurement period
adjustments. All other subsequent changes in the fair value of contingent consideration classified as
an asset or liability are accounted for in accordance with relevant PFRSs. Changes in the fair value of
contingent consideration classified as equity are not recognized.
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If the initial accounting for a business combination is incomplete by the end of the reporting period in
which the combination occurs, the Group reports provisional amounts for the items for which the
accounting is incomplete. Those provisional amounts are adjusted during the measurement period, or
additional assets or liabilities are recognized, to reflect new information obtained about facts and
circumstances that existed as of the acquisition date that if known, would have affected the amounts
recognized as of that date. The measurement period is the period from the date of acquisition to the
date the Group receives complete information about facts and circumstances that existed as of the
acquisition date and is subject to a maximum period of one year.
If the business combination is achieved in stages, the Group’s previously-held interests in the
acquired entity are remeasured to fair value at the acquisition date (the date the Group attains control)
and the resulting gain or loss, if any, is recognized in the consolidated statement of income. Amounts
arising from interests in the acquiree prior to the acquisition date that have previously been
recognized in other comprehensive income are reclassified to profit or loss, where such treatment
would be appropriate if that interest were disposed of.
Combinations of Entities Under Common Control

Where there are business combinations involving entities that are ultimately controlled by the same
ultimate parent (i.e., Controlling Shareholders) before and after the business combination and that the
control is not transitory (“business combinations under common control”), the Group accounts for
such business combinations in accordance with the guidance provided by the Philippine
Interpretations Committee Q&A No. 2011-02, PFRS 3.2 - Common Control Business Combinations.
The purchase method of accounting is used, if the transaction was deemed to have substance from the
perspective of the reporting entity. In determining whether the business combination has substance,
factors such as the underlying purpose of the business combination and the involvement of parties
other than the combining entities such as the non-controlling interest, shall be considered. In cases
where the transaction has no commercial substance, the business combination is accounted for using
the pooling of interest method.
In applying the pooling-of-interests method, the Group follows the Philippine Interpretations
Committee Q&A No. 2012-01, PFRS 3.2 - Application of the Pooling of Interest Method for Business
Combinations of Entities under Common Control in Consolidated Financial Statements, which
provides the following guidance:
∂ The assets and liabilities of the combining entities are reflected in the consolidated financial
statements at their carrying amounts. No adjustments are made to reflect fair values, or recognize
any new assets or liabilities, at the date of the combination. The only adjustments that are made
are those adjustments to harmonize accounting policies.
∂ No new goodwill is recognized as a result of the combination. The only goodwill that is
recognized is any existing goodwill relating to either of the combining entities. Any difference
between the consideration paid or transferred and the equity acquired is reflected within equity as
other equity reserve, i.e., either contribution or distribution of equity.
∂ The consolidated statement of income reflects the results of the combining entities for the full
year, irrespective of when the combination took place.
Goodwill
Goodwill arising on the acquisition of a subsidiary is recognized as an asset at the date the control is
acquired (the acquisition date). Goodwill is measured as the excess of the sum of the consideration
transferred, the amount of any non-controlling interest in the acquiree and the fair value of the
acquirer’s previously-held interest, if any, in the entity over the net fair value of the identifiable net
assets recognized.
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If after reassessment, the Group’s interest in the net fair value of the acquiree’s identifiable net assets
exceeds the sum of consideration transferred, the amount of any non-controlling interest in the
acquiree and the fair value of the acquirer’s previously-held equity interest, if any, the excess is
recognized immediately in the consolidated statement of income as a gain on bargain purchase.
After initial recognition, goodwill is measured at cost less accumulated impairment losses. Goodwill
is not amortized, but is reviewed for impairment at least annually. Any impairment loss is recognized
immediately in profit or loss and is not subsequently reversed.
On disposal of a subsidiary, the attributable amount of goodwill is included in the determination of

the profit or loss on disposal.
Changes in Accounting Policies and Disclosures

The accounting policies adopted are consistent with those of the previous financial years, except that
the Group has adopted the following PFRSs and Philippine Accounting Standards (PAS) and
Philippine Interpretations beginning January 1, 2018. The adoption of the new and amended
standards and interpretations did not have any impact on the consolidated financial statements of the
Group unless otherwise indicated.
∂ Amendments to PFRS 2, Share-based Payment, Classification and Measurement of Share-based

Payment Transactions
The amendments to PFRS 2 address three main areas: the effects of vesting conditions on the
measurement of a cash-settled share-based payment transaction; the classification of a share-
based payment transaction with net settlement features for withholding tax obligations; and the
accounting where a modification to the terms and conditions of a share-based payment
transaction changes its classification from cash-settled to equity-settled. Entities are required to
apply the amendments to: (1) share-based payment transactions that are unvested or vested but
unexercised as of January 1, 2018, (2) share-based payment transactions granted on or after
January 1, 2018 and to (3) modifications of share-based payments that occurred on or after
January 1, 2018. Retrospective application is permitted if elected for all three amendments and if
it is possible to do so without hindsight.
∂ PFRS 9, Financial Instruments

PFRS 9 replaces PAS 39, Financial Instruments: Recognition and Measurement, for annual
periods beginning on or after January 1, 2018, bringing together all three aspects of the
accounting for financial instruments: classification and measurement; impairment; and hedge
accounting.
The Group applied PFRS 9 using the modified retrospective approach, with an initial application
dated January 1, 2018. The Group has not restated the comparative information, which continues
to be reported under PAS 39. Restatements and differences in the carrying amounts of financial
instruments arising from the adoption of PFRS 9 have been recognized in the 2018 opening
balances of retained earnings as if the Group had always applied PFRS 9.
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The Group adopted the classification and measurement, impairment and hedge accounting
requirements of the standard as follows:
Classification and measurement

Financial assets are measured at FVTPL unless these are measured at FVOCI or at amortized
cost. The classification and measurement provisions of PFRS 9 require that all debt financial
assets that do not meet the “solely payment of principal and interest” (SPPI) test, including those
that contain embedded derivatives, be classified at initial recognition as financial assets at
FVTPL. The intent of the SPPI test is to ensure that debt instruments that contain non-basic
lending features, such as conversion options and equity linked pay-outs, are measured as financial
assets at FVTPL. Subsequent measurement of instruments classified as financial assets at
FVTPL under PFRS 9 operates in a similar manner to financial instruments held for trading under
PAS 39.
All equity financial assets are required to be classified at initial recognition as at FVTPL unless
an irrevocable designation is made to classify the instrument as financial asset at FVOCI for
equities. Unlike AFS for equity securities under PAS 39, the FVOCI for equities category results
in all realized and unrealized gains and losses being recognized in the consolidated statement of
comprehensive income with no recycling to profit or loss. Only dividends will continue to be
recognized in the consolidated statement of income.
As at January 1, 2018, the Group has reviewed and assessed all of its existing financial
instruments. The following table shows the Group’s financial instruments from their previous
classification and measurement category in accordance with PAS 39 to their new classification
and measurement categories upon transition to PFRS 9 on January 1, 2018:
Classification and Measurement

Financial Assets Under PAS 39 Under PFRS 9
Cash and cash equivalents Loans and receivables Amortized cost
Receivables Loans and receivables Amortized cost
Equity instruments at FVTPL Financial assets at FVPL Financial assets at FVTPL
Equity instruments at OCI AFS investments Financial assets at FVOCI
Derivatives under hedge accounting FVOCI FVOCI
Impairment
PFRS 9 requires recording of expected credit losses (ECL) for all debt securities not classified as
at FVPL, together with receivables. ECL represents credit losses that reflect an unbiased and
probability-weighted amount which is determined by evaluating a range of possible outcomes, the
time value of money and reasonable and supportable information about past events, current
conditions and forecasts of future economic conditions. In comparison, the incurred loss model
under PAS 39 recognizes lifetime credit losses only when there is objective evidence of
impairment. The ECL model eliminates the loss event required under the incurred loss model,
and lifetime ECL is recognized earlier under PFRS 9.
PFRS 9 provides some operational simplifications for receivables, by introducing an alternative

simplified approach. Under the simplified approach, there is no more requirement to determine at
reporting date whether a credit exposure has significantly increased in credit risk or not. Credit
exposures under the simplified approach will be subject only to lifetime ECL. In addition,
PFRS 9 allows the use of a provision matrix approach or a loss rate approach as a practical
expedient when measuring ECL for certain short-term financial assets, so long as these
methodologies reflects a probability-weighted outcome, the time value of money and reasonable
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and supportable information that is available without undue cost or effort at the reporting date,
about past events, current conditions and forecasts of future economic conditions.
Under PFRS 9, the level of provision for credit and impairment losses has generally increased
due to the incorporation of a more forward-looking approach in determining provisions. Further,
since the implementation of PFRS 9, all financial assets except those measured at FVTPL and
equity instruments at FVOCI, are assessed for at least 12-month ECL and the population of
financial assets to which the lifetime ECL applies is larger than the population for which there is
objective evidence of impairment in accordance with PAS 39.
The adoption of PFRS 9 changed the Group’s accounting for impairment losses for receivables to
ECL approach. The adoption of PFRS 9 as at January 1, 2018 resulted in a reduction of retained
earnings and receivables by =
P1.7 billion.
Hedge accounting
The new hedge accounting model under PFRS 9 aims to simplify hedge accounting, align the
accounting for hedge relationships more closely with an entity’s risk management activities and
permit hedge accounting to be applied more broadly to a greater variety of hedging instruments
and risks eligible for hedge accounting.
∂ Amendments to PFRS 4, Applying PFRS 9 Financial Instruments with PFRS 4 Insurance

Contracts
The amendments address concerns arising from implementing PFRS 9, the new financial
instruments standard before implementing the new insurance contracts standard. The
amendments introduce two options for entities issuing insurance contracts: a temporary
exemption from applying PFRS 9 and an overlay approach. The temporary exemption is first
applied for reporting periods beginning on or after January 1, 2018. An entity may elect the
overlay approach when it first applies PFRS 9 and apply that approach retrospectively to financial
assets designated on transition to PFRS 9. The entity restates comparative information reflecting
the overlay approach if, and only if, the entity restates comparative information when applying
PFRS 9.
∂ PFRS 15, Revenue from Contracts with Customers

PFRS 15 supersedes PAS 11, Construction Contracts, PAS 18, Revenue, and related
interpretations and it applies to all revenue arising from contracts with customers, unless those
contracts are in the scope of other standards. PFRS 15 establishes a five-step model that will
apply to revenue arising from contracts with customers. The five-step model is as follows:
∂ Identify the contract(s) with a customer;

∂ Identify the performance obligations in the contract;
∂ Determine the transaction price;
∂ Allocate the transaction price to the performance obligations in the contract; and
∂ Recognize revenue when (or as) the entity satisfies a performance obligation.
Under PFRS 15, revenue is recognized at an amount that reflects the consideration to which an
entity expects to be entitled in exchange for transferring goods or services to a customer. The
standard requires entities to exercise judgment, taking into consideration all of the relevant facts
and circumstances when applying each step of the model to contracts with customers. The
standard also specifies the accounting for the incremental costs of obtaining a contract and the
costs directly related to fulfilling a contract.
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With the effectivity of PFRS 15 on January 1, 2018, as approved by the Financial Reporting
Standards Council (FRSC), the Philippine Interpretations Committee (PIC) issued PIC Q&A
2019-3, Revenue Recognition Guidance for Sugar Millers, to assist the companies operating in
the sugar industry in the adoption of PFRS 15. The interpretation states that a miller should
recognize revenue arising from its sugar milling operation under either an output sharing
agreement or cane purchase agreement, and that providing free storage constitutes a separate
performance obligation in the case of an output sharing agreement.
In response to concerns raised by the sugar industry on the implementation and adoption of the
PIC Q&A, the SEC issued MC No. 06 on April 4, 2019, deferring the application of the
provisions of the above-mentioned PIC Q&A for a period of one (1) year.
Effective January 1, 2019, the Philippine sugar millers will adopt PIC Q&A No. 2019-3 and any
subsequent amendments thereto retrospectively or as the SEC will later prescribe.
The Group availed of the deferral of adoption of the above specific provisions. Had these
provisions been adopted, it would have affected retained earnings as at January 1, 2018 and
revenue from milling, cost of sales, cost of milling and raw sugar inventories for 2018.
Currently, revenue is recognized upon sale of raw sugar arising from the output sharing
agreements.
With the deferral of the implementation of certain provisions of PIC Q&A 2019-3, the adoption
of PFRS 15 for sugar milling did not have any significant impact to the consolidated financial
statements.
The Group adopted PFRS 15 using the modified retrospective method of adoption with the date
of initial application of January 1, 2018. Under this method, the standard can be applied either to
all contracts at the date of initial application or only to contracts that are not completed at this
date. The Group elected to apply the standard to all contracts that are not completed as at the date
of initial application.
Set out below are the amounts by which each financial statement line item is affected as at and
for the year ended December 31, 2018 as a result of the adoption of PFRS 15. The adoption of
PFRS 15 did not have an impact on the Group’s other comprehensive income or on its operating,
investing and financing cash flows. There were no adjustments recognized to the opening
balances of retained earnings as at January 1, 2018 upon the adoption of PFRS 15.
(in thousands) Under PAS 18 Adjustment Under PFRS 15

Revenue from contracts with
customers
Sale of goods and services =129,515,091
P (P
=1,745,142) =127,769,949
P
Selling and distribution expense 20,464,701 (1,745,142) 18,719,559
The nature of the adjustment as at January 1, 2018 and the reasons for the significant changes in
the consolidated statement of income for the year ended December 31, 2018 as presented in the
above table are described below:
a) The Group has determined that, except in the case of milling revenue, all contracts under
PAS 18 still qualify as contracts under PFRS 15. Under PAS 18, milling contracts entered
into by the Group with the planters for the conversion of the planters’ sugar cane into raw
sugar through an output-sharing arrangement is not considered as a revenue contract, but is
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now within the scope of PFRS 15. Planters are considered customers under this arrangement
and the Group provides service to the planters in the form of conversion processes of
sugar cane to raw sugar.
b) Other than the sale of goods and services, no other performance obligations were identified
except in the case of milling revenue discussed in the preceding paragraph.
c) The Group pays various consideration payable to customers and accounts for each type of
consideration separately either treated as contra-revenue (discount) or an expense under the
old revenue standard. Under PFRS 15, the Group shall account for a consideration payable to
customer as a reduction in revenue unless the payment to the customer is in exchange for a
distinct good or service that the customer transfer to the entity wherein the consideration
payable to the customer shall be treated as an expense. As a result, certain expenses were
reclassified as contra-revenue amounting to = P1.7 billion for the year ended
December 31, 2018.
∂ Amendments to PAS 28, Investments in Associates and Joint Ventures, Measuring an Associate
or Joint Venture at Fair Value (Part of Annual Improvements to PFRSs 2014 - 2016 Cycle)
The amendments clarify that an entity that is a venture capital organization, or other qualifying
entity, may elect, at initial recognition on an investment-by-investment basis, to measure its
investments in associates and joint ventures at fair value through profit or loss. They also clarify
that if an entity that is not itself an investment entity has an interest in an associate or joint
venture that is an investment entity, the entity may, when applying the equity method, elect to
retain the fair value measurement applied by that investment entity associate or joint venture to
the investment entity associate’s or joint venture’s interests in subsidiaries. This election is made
separately for each investment entity associate or joint venture, at the later of the date on which
(a) the investment entity associate or joint venture is initially recognized; (b) the associate or joint
venture becomes an investment entity; and (c) the investment entity associate or joint venture first
becomes a parent. Retrospective application is required.
∂ Amendments to PAS 40, Investment Property, Transfers of Investment Property

The amendments clarify when an entity should transfer property, including property under
construction or development into, or out of investment property. The amendments state that a
change in use occurs when the property meets, or ceases to meet, the definition of investment
property and there is evidence of the change in use. A mere change in management’s intentions
for the use of a property does not provide evidence of a change in use. Retrospective application
of the amendments is not required and is only permitted if this is possible without the use of
hindsight.
∂ Philippine Interpretation IFRIC-22, Foreign Currency Transactions and Advance Consideration

The interpretation clarifies that, in determining the spot exchange rate to use on initial recognition
of the related asset, expense or income (or part of it) on the derecognition of a non-monetary asset
or non-monetary liability relating to advance consideration, the date of the transaction is the date
on which an entity initially recognizes the nonmonetary asset or non-monetary liability arising
from the advance consideration. If there are multiple payments or receipts in advance, then the
entity must determine the date of the transaction for each payment or receipt of advance
consideration. Retrospective application of this interpretation is not required.
Since the Group’s current practice is in line with the clarifications issued, these do not have any
impact on the Group’s consolidated financial statements.
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Significant Accounting Policies
Current versus Noncurrent Classification

The Group presents assets and liabilities in the consolidated statement of financial position based on
current or noncurrent classification.
An asset is current when it is:

∂ Expected to be realized or intended to be sold or consumed in normal operating cycle;
∂ Held primarily for the purpose of trading;
∂ Expected to be realized within twelve months after the reporting period; or
∂ Cash or cash equivalents, unless restricted from being exchanged or used to settle a liability for at
least twelve months after the reporting period.
All other assets are classified as noncurrent.
A liability is current when:

∂ It is expected to be settled in normal operating cycle;
∂ It is held primarily for the purpose of trading;
∂ It is due to be settled within twelve months after the reporting period; or
∂ There is no unconditional right to defer the settlement of the liability for at least twelve months
after the reporting period.
All other liabilities are classified as noncurrent.
Deferred tax assets and liabilities are classified as noncurrent assets and liabilities.
Fair Value Measurement

The Group measures certain financial instruments and nonfinancial assets at fair value at each
reporting date. Fair values of financial instruments measured at amortized cost and investment
properties carried at cost are disclosed in Note 5.
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly
transaction between market participants at the measurement date. The fair value measurement is
based on the presumption that the transaction to sell the asset or transfer the liability takes place
either:
∂ In the principal market for the asset or liability, or

∂ In the absence of a principal market, in the most advantageous market for the asset or liability
The principal or the most advantageous market must be accessible to the Group.
The fair value of an asset or a liability is measured using the assumptions that market participants
would use when pricing the asset or liability, assuming that market participants act in their economic
best interest.
A fair value measurement of a non-financial asset takes into account a market participant’s ability to
generate economic benefits by using the asset in its highest and best use or by selling it to another
market participant that would use the asset in its highest and best use.
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The Group uses valuation techniques that are appropriate in the circumstances and for which
sufficient data are available to measure fair value, maximizing the use of relevant observable inputs
and minimizing the use of unobservable inputs.
All assets and liabilities for which fair value is measured or disclosed in the financial statements are
categorized within the fair value hierarchy, described as follows, based on the lowest level input that
is significant to the fair value measurement as a whole:
∂ Level 1 - Quoted (unadjusted) market prices in active markets for identical assets or liabilities
∂ Level 2 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is directly or indirectly observable
∂ Level 3 - Valuation techniques for which the lowest level input that is significant to the fair
value measurement is unobservable.
For assets and liabilities that are recognized in the financial statements on a recurring basis, the Group
determines whether transfers have occurred between levels in the hierarchy by re-assessing
categorization (based on the lowest level input that is significant to the fair value measurement as a
whole) at the end of each reporting date.
Cash and Cash Equivalents

Cash includes cash on hand and in banks. Cash equivalents are short-term, highly liquid investments
that are readily convertible to known amounts of cash with original maturities of three months or less
from dates of placement, and that are subject to insignificant risk of changes in value.
Financial Instruments (Upon Adoption of PFRS 9 beginning January 1, 2018)

A financial instrument is any contract that gives rise to a financial asset of one entity and a financial
liability or equity instrument of another entity.
a) Financial assets
Initial recognition and measurement
Financial assets are classified at fair value at initial recognition and subsequently measured at
amortized cost, FVOCI, and FVTPL.
The classification of financial assets at initial recognition depends on the financial asset’s contractual
cash flow characteristics and the Group’s business model for managing them. With the exception of
trade receivables that do not contain a significant financing component or for which the Group has
applied the practical expedient, the Group initially measures a financial asset at its fair value plus, in
the case of a financial asset not at FVTPL, transaction costs. Trade receivables that do not contain a
significant financing component or for which the Group has applied the practical expedient are
measured at the transaction price determined under PFRS 15.
In order for a financial asset to be classified and measured at amortized cost or FVOCI, it needs to
give rise to cash flows that are ‘solely payments of principal and interest (SPPI)’ on the principal
amount outstanding. This assessment is referred to as the SPPI test and is performed at an
instrument level.
The Group’s business model for managing financial assets refers to how it manages its financial
assets in order to generate cash flows. The business model determines whether cash flows will result
from collecting contractual cash flows, selling the financial assets, or both.
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Purchases or sales of financial assets that require delivery of assets within a time frame established
by regulation or convention in the market place (regular way trades) are recognized on the trade date,
i.e., the date that the Group commits to purchase or sell the asset.
Subsequent measurement
For purposes of subsequent measurement, financial assets are classified in four categories:
∂ Financial assets at amortized cost (debt instruments)
∂ Financial assets at FVOCI with recycling of cumulative gains and losses (debt instruments)
∂ Financial assets designated at FVOCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments)
∂ Financial assets at FVTPL
The financial assets of the Group as of December 31, 2018 consist of financial assets at amortized
cost, financial assets designated at FVOCI with no recycling of cumulative gains and losses upon
derecognition (equity instruments), derivative assets at FVOCI and financial assets at FVTPL
(equity instruments).
Financial assets at amortized cost (debt instruments)

The Group measures financial assets at amortized cost if both of the following conditions are met:
∂ The financial asset is held within a business model with the objective to hold financial assets in
order to collect contractual cash flows; and
∂ The contractual terms of the financial asset give rise on specified dates to cash flows that are
solely payments of principal and interest on the principal amount outstanding.
Financial assets at amortized cost are subsequently measured using the effective interest (EIR)
method and are subject to impairment. Gains and losses are recognized in profit or loss when the
asset is derecognized, modified or impaired.
The Group’s financial assets at amortized cost include cash and cash equivalents and receivables.
Financial assets designated at FVOCI (equity instruments)

Upon initial recognition, the Group can elect to classify irrevocably its equity investments as equity
instruments designated at FVOCI when they meet the definition of equity under PAS 32, Financial
Instruments: Presentation, and are not held for trading. The classification is determined on an
instrument-by-instrument basis.
Gains and losses on these financial assets are never recycled to profit or loss. Dividends are
recognized as other income in the consolidated statements of income when the right of payment has
been established, except when the Group benefits from such proceeds as a recovery of part of the
cost of the financial asset, in which case, such gains are recorded in OCI. Equity instruments
designated at FVOCI are not subject to impairment assessment.
The Group elected to classify irrevocably its investments in club shares under this category.
Financial assets at FVTPL (equity instruments)

Financial assets at FVTPL include financial assets held for trading, financial assets designated upon
initial recognition at FVTPL, or financial assets mandatorily required to be measured at fair value.
Financial assets are classified as held for trading if they are acquired for the purpose of selling or
repurchasing in the near term. Derivatives, including separated embedded derivatives, are also
classified as held for trading unless they are designated as effective hedging instruments. Financial
assets with cash flows that are not solely payments of principal and interest are classified and
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measured at FVTPL, irrespective of the business model. Notwithstanding the criteria for debt
instruments to be classified at amortized cost or at FVOCI, as described above, debt instruments may
be designated at FVTPL on initial recognition if doing so eliminates, or significantly reduces, an
accounting mismatch.
Financial assets at FVTPL are carried in the consolidated statements of financial position at fair value
with net changes in fair value recognized in the consolidated statements of income.
This category includes equity instruments held for trading and currency options.
A derivative embedded in a hybrid contract, with a financial liability or non-financial host, is

separated from the host and accounted for as a separate derivative if: the economic characteristics and
risks are not closely related to the host; a separate instrument with the same terms as the embedded
derivative would meet the definition of a derivative; and the hybrid contract is not measured at fair
value through profit or loss. Embedded derivatives are measured at fair value with changes in fair
value recognized in profit or loss. Reassessment only occurs if there is either a change in the terms of
the contract that significantly modifies the cash flows that would otherwise be required or a
reclassification of a financial asset out of the fair value through profit or loss category.
Derecognition
A financial asset (or, where applicable, a part of a financial asset or part of a group of similar
financial assets) is primarily derecognized (i.e., removed from the Group’s consolidated statement of
financial position) when:
∂ The rights to receive cash flows from the asset have expired, or
∂ The Group has transferred its rights to receive cash flows from the asset or has assumed an
obligation to pay the received cash flows in full without material delay to a third party under a
‘pass-through’ arrangement; and either (a) the Group has transferred substantially all the risks and
rewards of the asset, or (b) the Group has neither transferred nor retained substantially all the
risks and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, it evaluates if, and to what extent, it has retained the risks and rewards of
ownership. When it has neither transferred nor retained substantially all of the risks and rewards of
the asset, nor transferred control of the asset, the Group continues to recognize the transferred asset to
the extent of its continuing involvement. In that case, the Group also recognizes an associated
liability. The transferred asset and the associated liability are measured on a basis that reflects the
rights and obligations that the Group has retained.
Continuing involvement that takes the form of a guarantee over the transferred asset is measured at
the lower of the original carrying amount of the asset and the maximum amount of consideration that
the Group could be required to repay.
Impairment of financial assets

The Group recognizes an allowance for ECLs for all debt instruments not held at FVTPL. ECL
represents credit losses that reflect an unbiased and probability-weighted amount which is determined
by evaluating a range of possible outcomes, the time value of money and reasonable and supportable
information about past events, current conditions and forecasts of future economic conditions. The
ECL allowance is based on the credit losses expected to arise over the life of the asset (the lifetime
ECL), unless there has been no significant increase in credit risk since origination, in which case, the
allowance is based on the 12-month ECL. The 12-month ECL is the portion of lifetime ECL that
results from default events on a financial instrument that are possible within the 12 months after the
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reporting date. Lifetime ECL are credit losses that results from all possible default events over the
expected life of a financial instrument.
For trade receivables, installment contracts receivable and contract assets, the Group applies a
simplified approach in calculating ECLs. Therefore, the Group does not track changes in credit risk,
but instead recognizes a loss allowance based on lifetime ECLs at each reporting date. The Group
has established a provision matrix that is based on historical credit loss experience, adjusted for
forward-looking factors specific to the debtors and the economic environment.
For other financial assets such nontrade receivable, loans receivable, due from related parties and
other receivables, ECLs are recognized in two stages. For credit exposures for which there has not
been a significant increase in credit risk since initial recognition, ECLs are provided for credit losses
that result from default events that are possible within the next 12-months (a 12-month ECL). For
those credit exposures for which there has been a significant increase in credit risk (SICR) since
initial recognition, a loss allowance is required for credit losses expected over the remaining life of
the exposure, irrespective of the timing of the default (a lifetime ECL).
For cash and cash equivalents and short-term investments, the Group applies the low credit risk
simplification. The probability of default and loss given defaults are publicly available and are
considered to be low credit risk investments. It is the Group’s policy to measure ECLs on such
instruments on a 12-month basis. However, when there has been a significant increase in credit risk
since origination, the allowance will be based on the lifetime ECL. The Group uses the ratings from
reputable credit rating agencies to determine whether the debt instrument has SICR and to estimate
ECLs.
The Group considers a debt investment security to have low credit risk when its credit risk rating is
equivalent to the globally understood definition of ‘investment grade’.
The key inputs in the model include the Group’s definition of default and historical data of three years
for the origination, maturity date and default date. The Group considers trade receivables and
contract assets in default when contractual payment are 90 days past due, except for certain
circumstances when the reason for being past due is due to reconciliation with customers of payment
records which are administrative in nature which may extend the definition of default. However, in
certain cases, the Group may also consider a financial asset to be in default when internal or external
information indicates that the Group is unlikely to receive the outstanding contractual amounts in full
before taking into account any credit enhancements held by the Group.
Determining the stage for impairment

At each reporting date, the Group assesses whether there has been a SICR for financial assets since
initial recognition by comparing the risk of default occurring over the expected life between the
reporting date and the date of initial recognition. The Group considers reasonable and supportable
information that is relevant and available without undue cost or effort for this purpose. This includes
quantitative and qualitative information and forward-looking analysis.
An exposure will migrate through the ECL stages as asset quality deteriorates. If, in a subsequent
period, asset quality improves and also reverses any previously assessed SICR since origination, then
the loss allowance measurement reverts from lifetime ECL to 12-months ECL.
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b) Financial liabilities
Initial recognition and measurement
Financial liabilities are classified, at initial recognition, as financial liabilities at FVTPL, loans and
borrowings, payables, or as derivatives designated as hedging instruments in an effective hedge, as
appropriate.
All financial liabilities are recognized initially at fair value and, in the case of loans and borrowings
and payables, net of directly attributable transaction costs.
Subsequent measurement
The measurement of financial liabilities depends on their classification, as described below:
Financial liabilities at FVTPL

Financial liabilities at FVTPL include financial liabilities held for trading and financial liabilities
designated upon initial recognition as at FVTPL.
Financial liabilities are classified as held for trading if they are incurred for the purpose of
repurchasing in the near term. This category also includes derivative financial instruments entered
into by the Group that are not designated as hedging instruments in hedge relationships as defined by
PFRS 9. Separated embedded derivatives are also classified as held for trading unless they are
designated as effective hedging instruments.
Gains or losses on liabilities held for trading are recognized in the consolidated statements of income.
Financial liabilities designated upon initial recognition at FVTPL are designated at the initial date of
recognition, and only if the criteria in PFRS 9 are satisfied.
The Group does not have financial liabilities at FVTPL as of December 31, 2018.
Other financial liabilities

This category pertains to financial liabilities that are not held for trading or not designated as at
FVTPL upon the inception of the liability. These include liabilities arising from operations and
borrowings.
After initial measurement, other financial liabilities are measured at amortized cost using the EIR
method. Amortized cost is calculated by taking into account any discount or premium on the
acquisition and fees or costs that are an integral part of the EIR. Gains and losses are recognized in
profit or loss when other financial liabilities are derecognized, as well as through the EIR
amortization process.
This category applies to the Group’s accounts payable and accrued expenses (excluding advances
from customers, advances from third parties, statutory and taxes payables), short-term debt and trust
receipts payable and long-term debt.
Derecognition
A financial liability is derecognized when the obligation under the liability is discharged or cancelled
or expires. When an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as the derecognition of the original liability and the recognition of
a new liability. The difference in the respective carrying amounts is recognized in profit or loss.
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c) Offsetting of financial instruments

Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
statements of financial position if there is a currently enforceable legal right to offset the recognized
amounts and there is an intention to settle on a net basis, to realize the assets and settle the liabilities
simultaneously.
Financial Instruments (Prior to Adoption of PFRS 9)
Date of recognition
The Group recognizes a financial asset or a financial liability in the consolidated statement of
financial position when the Group becomes a party to the contractual provisions of the instrument.
Purchases or sales of financial assets that require delivery of assets within the time frame established
by regulation or convention in the marketplace are recognized on the settlement date. Derivatives are
recognized on a trade date basis.
Initial recognition of financial instruments

All financial instruments are recognized initially at fair value. Except for financial instruments
valued at FVPL, the initial measurement of financial assets includes transaction costs. The Group
classifies its financial assets into the following categories: financial assets at FVPL, held-to-maturity
(HTM) investments, AFS financial assets, loans and receivables or as derivatives designated as
hedging instruments in effective hedge, as appropriate. The Group classifies its financial liabilities
into financial liabilities at FVPL and other financial liabilities at amortized cost.
The classification depends on the purpose for which the investments were acquired and whether they
are quoted in an active market. Management determines the classification of its investments at initial
recognition and, where allowed and appropriate, re-evaluates such designation at every reporting
date.
As of December 31, 2017, the Group has no HTM investments and financial liabilities at FVPL.
‘Day 1’ difference
Where the transaction price in a non-active market is different from the fair value based on other
observable current market transactions in the same instrument or based on a valuation technique
whose variables include only data from an observable market, the Group recognizes the difference
between the transaction price and fair value (a ‘Day 1’ difference) in profit or loss in the consolidated
statement of income. In cases where variables used are made of data which is not observable, the
difference between the transaction price and model value is only recognized in the consolidated
statement of income when the inputs become observable or when the instrument is derecognized.
For each transaction, the Group determines the appropriate method of recognizing the ‘Day 1’
difference amount.
Financial assets and financial liabilities at FVPL

Financial assets and financial liabilities at FVPL include financial assets and financial liabilities held
for trading purposes, derivative financial instruments, or those designated upon initial recognition at
FVPL when any of the following criteria are met:
a. Financial assets and liabilities are classified as held for trading if they are acquired for the
purpose of selling and repurchasing in the near term.
b. Derivatives, including separate embedded derivatives, are also classified under financial assets or
liabilities at FVPL, unless they are designated as hedging instruments in an effective hedge
c. Financial assets or liabilities may be designated by management on initial recognition as at FVPL
when any of the following criteria are met:
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∂ the designation eliminates or significantly reduces the inconsistent treatment that would
otherwise arise from measuring the assets or liabilities or recognizing gains or losses on them
on a different basis;
∂ the assets and liabilities are part of a group of financial assets, financial liabilities or both
which are managed and their performance are evaluated on a fair value basis, in accordance
with a documented risk management or investment strategy; or
∂ the financial instrument contains an embedded derivative, unless the embedded derivative
does not significantly modify the cash flows or it is clear, with little or no analysis, that it
would not be separately recorded.
Financial assets and financial liabilities at FVPL are recorded in the consolidated statement of
financial position at fair value. Changes in fair value are reflected in profit or loss in the consolidated
statement of income. Interest earned or incurred is recorded in interest income or expense,
respectively, while dividend income is recorded in other operating income according to the terms of
the contract, or when the right of the payment has been established.
The Group’s financial assets at FVPL consist of equity securities and currency options (see Note 8
and 9).
Derivatives classified as FVPL

The Group uses derivative financial instruments such as currency forwards and currency options to
hedge the risks associated with foreign currency and interest rate fluctuations. Such derivative
financial instruments are initially recorded at fair value on the date at which the derivative contract is
entered into and are subsequently remeasured at fair value. Any gains or losses arising from changes
in fair values of derivatives (except those accounted for as accounting hedges) are taken directly in
the consolidated statement of income. Derivatives are carried as assets when the fair value is positive
and as liabilities when the fair value is negative.
The fair values of the Group’s derivative instruments are calculated using certain standard valuation
methodologies.
Derivatives designated as accounting hedges

For the purpose of hedge accounting, hedges are classified primarily as either: (a) a hedge of the fair
value of an asset, liability or a firm commitment (fair value hedge); (b) a hedge of the exposure to
variability in cash flows attributable to an asset or liability or a forecasted transaction (cash flow
hedge); or (c) a hedge of a net investment in a foreign operation (net investment hedge). Hedge
accounting is applied to derivatives designated as hedging instruments in a fair value, cash flow or net
investment hedge provided certain criteria are met.
Hedge accounting
At the inception of a hedging relationship, the Group formally designates and documents the hedge
relationship to which the Group wishes to apply hedge accounting and risk management objective and
its strategy for undertaking the hedge. The documentation includes identification of the hedging
instrument, the hedged item or transaction, the nature of the risk being hedged and how the entity will
assess the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged
item’s fair value or cash flows attributable to the hedged risk. Such hedges are expected to be highly
effective in achieving offsetting changes in fair value or cash flows and are assessed on an ongoing
basis that they actually have been highly effective throughout the financial reporting periods for
which they were designated.
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Cash flow hedge

Cash flow hedges are hedges of the exposure to variability in cash flows that are attributable to a
particular risk associated with a recognized asset, liability or a highly probable forecast transaction
and could affect the profit or loss. The effective portion of changes in the fair value of derivatives
that are designated and qualified as cash flow hedges is recognized as ‘Unrealized gains (losses) on
cash flow hedge’ in other comprehensive income. Any gain or loss in fair value relating to an
ineffective portion is recognized immediately in profit or loss.
Amounts accumulated in other comprehensive income are recycled to profit or loss in the periods in
which the hedged item will affect profit or loss.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss recognized in other comprehensive income is eventually
recycled in profit or loss.
Hedge effectiveness testing

To qualify for hedge accounting, the Group is required that at the inception of the hedge and
throughout its life, each hedge must be expected to be highly effective (prospective effectiveness),
and demonstrate actual effectiveness (retrospective effectiveness) on an ongoing basis.
The documentation of each hedging relationship sets out how the effectiveness of the hedge is
assessed. The method that the Group adopts for assessing hedge effectiveness will depend on its risk
management strategy.
For prospective effectiveness, the hedging instrument must be expected to be highly effective in
offsetting changes in fair value or cash flows attributable to the hedged risk during the period for
which the hedge is designated. The Group applies the dollar-offset method using hypothetical
derivatives in performing hedge effectiveness testing. For actual effectiveness to be achieved, the
changes in fair value or cash flows must offset each other in the range of 80 to 125 percent. Any
hedge ineffectiveness is recognized in profit or loss.
Embedded derivatives
An embedded derivative is separated from the host contract and accounted for as a derivative if all of
the following conditions are met: a) the economic characteristics and risks of the embedded derivative
are not closely related to the economic characteristics and risks of the host contract; b) a separate
instrument with the same terms as the embedded derivative would meet the definition of a derivative;
and c) the hybrid or combined instrument is not recognized at FVPL.
Subsequent reassessment is prohibited unless there is a change in the terms of the contract that
significantly modifies the cash flows that otherwise would be required under the contract, in which
case reassessment is required. The Group determines whether a modification to cash flows is
significant by considering the extent to which the expected future cash flows associated with the
embedded derivative, the host contract or both have changed and whether the change is significant
relative to the previously expected cash flow on the contract.
Current versus noncurrent classification

Derivative instruments that are not designated as effective hedging instruments are classified as
current or noncurrent or separated into a current and noncurrent portion based on an assessment of the
facts and circumstances (i.e., the underlying contracted cash flows).
∂ Where the Group will hold a derivative as an economic hedge (and does not apply hedge
accounting) for a period beyond 12 months after the reporting date, the derivative is classified as
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noncurrent (or separated into current and noncurrent portions) consistent with the classification of
the underlying item.
∂ Embedded derivatives that are not closely related to the host contract are classified consistent
with the cash flows of the host contract.
Derivative instruments that are designated as, and are effective hedging instruments, are classified
consistently with the classification of the underlying hedged item. The derivative instrument is
separated into a current portion and a noncurrent portion only if a reliable allocation can be made.
Loans and receivables

Loans and receivables are nonderivative financial assets with fixed or determinable payments and
fixed maturities that are not quoted in an active market. After initial measurement, loans and
receivables are subsequently carried at amortized cost using the effective interest rate (EIR) method
less any allowance for impairment. Amortized cost is calculated taking into account any discount or
premium on acquisition and includes fees that are an integral part of the EIR and transaction costs.
The amortization is included under ‘Finance revenue’ in the consolidated statement of income. Gains
and losses are recognized in profit or loss in the consolidated statement of income when the loans and
receivables are derecognized or impaired, as well as through the amortization process. Loans and
receivables are included in current assets if maturity is within 12 months from the reporting date.
Otherwise, these are classified as noncurrent assets.
This accounting policy applies primarily to the Group’s cash and cash equivalents and receivables
(see Notes 7 and 10).
AFS financial assets

AFS financial assets are those nonderivative investments which are designated as such or do not
qualify to be classified or designated as financial assets at FVPL, held-to-maturity investments or
loans and receivables. They are purchased and held indefinitely, and may be sold in response to
liquidity requirements or changes in market conditions.
After initial measurement, AFS financial assets are subsequently measured at fair value. The
unrealized gains and losses arising from the fair valuation of AFS financial assets are excluded from
reported earnings and are reported under the ‘Unrealized gain on AFS financial assets’ section of the
consolidated statement of comprehensive income.
When the security is disposed of, the cumulative gain or loss previously recognized in equity is
recognized in profit or loss in the consolidated statement of income. Interest earned on holding AFS
financial assets are reported as interest income using the EIR method. Where the Group holds more
than one investment in the same security, these are deemed to be disposed of on a first-in, first-out
basis.
Dividends earned on holding AFS financial assets are recognized in the consolidated statement of
income, when the right to receive payment has been established. The losses arising from impairment
of such investments are recognized under ‘Provision for Credit and impairment losses’ in the
consolidated statement of income.
Other financial liabilities

Issued financial instruments or their components, which are not designated at FVPL are classified as
other financial liabilities where the substance of the contractual arrangement results in the Group
having an obligation either to deliver cash or another financial asset to the holder, or to satisfy the
obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed
number of own equity shares.
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All loans and borrowings are initially recognized at the fair value of the consideration received less
directly attributable debt issuance costs. Debt issuance costs are amortized using the EIR method and
unamortized debt issuance costs are offset against the related carrying value of the loan in the
consolidated statement of financial position.
After initial measurement, other financial liabilities are subsequently measured at amortized cost
using the EIR method. Amortized cost is calculated by taking into account any discount or premium
on the issue and fees that are an integral part of the EIR.
When a loan is paid, the related unamortized debt issuance costs at the date of repayment are charged
against current operations. Gains and losses are recognized in the consolidated statement of income
when the liabilities are derecognized or impaired, as well as through the amortization process.
This accounting policy applies primarily to the Group’s short-term (see Note 18) and long-term debts
(see Note 20), accounts payable and other accrued liabilities (see Note 19) and other obligations that
meet the above definition (other than liabilities covered by other accounting standards, such as
pension liabilities or income tax payable).
Debt Issuance Costs

Debt issuance costs are amortized using EIR method and unamortized debt issuance costs are
included in the measurement of the related carrying value of the loan in the consolidated statement of
financial position. When the loan is repaid, the related unamortized debt issuance costs at the date of
repayment are charged to the consolidated statement of income.
Classification of Financial Instruments Between Debt and Equity

A financial instrument is classified as debt if it provides for a contractual obligation to:
∂ deliver cash or another financial asset to another entity; or

∂ exchange financial assets or financial liabilities with another entity under conditions that are
potentially unfavorable to the Group; or
∂ satisfy the obligation other than by the exchange of a fixed amount of cash or another financial
asset for a fixed number of own equity shares.
If the Group does not have an unconditional right to avoid delivering cash or another financial asset
to settle its contractual obligation, the obligation meets the definition of a financial liability.
The components of issued financial instruments that contain both liability and equity elements are
accounted for separately, with the equity component being assigned the residual amount after
deducting from the instrument as a whole the amount separately determined as the fair value of the
liability component on the date of issue.
Reclassification of Financial Assets

A financial asset is reclassified out of the FVPL category when the following conditions are met:
∂ the financial asset is no longer held for the purpose of selling or repurchasing it in the near term;
and
∂ there is a rare circumstance.
A financial asset that is reclassified out of the FVPL category is reclassified at its fair value on the
date of reclassification. Any gain or loss already recognized in the consolidated statement of income
is not reversed. The fair value of the financial asset on the date of reclassification becomes its new
cost or amortized cost, as applicable.
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The Group evaluates its AFS investments whether the ability and intention to sell them in the near
term is still appropriate. When the Group is unable to trade these financial assets due to inactive
markets and management’s intention to do so significantly changes in the foreseeable future, the
Group may elect to reclassify these financial assets in rare circumstances. Reclassification to loans
and receivables is permitted when the financial assets meet the definition of loans and receivables and
the Group has the ability and intention to hold these assets for the foreseeable future or until maturity.
Reclassification to the HTM category is permitted only when the entity has the ability and intention to
hold the financial asset to maturity.
For a financial asset reclassified out of the AFS category, any previous gain or loss on that asset that
has been recognized in equity is amortized to profit or loss over the remaining life of the investment
using the effective interest method. Any difference between the new amortized cost and the expected
cash flows is also amortized over the remaining life of the asset using the effective interest method.
If the asset is subsequently determined to be impaired, then the amount recorded in equity is
reclassified to profit or loss.
Impairment of Financial Assets

The Group assesses at each reporting date whether there is objective evidence that a financial asset or
group of financial assets is impaired. A financial asset or a group of financial assets is deemed to be
impaired if, and only if, there is objective evidence of impairment as a result of one or more events
that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and that loss event
(or events) has an impact on the estimated future cash flows of the financial asset or the group of
financial assets that can be reliably estimated. Evidence of impairment may include indications that
the borrower or a group of borrowers is experiencing significant financial difficulty, default or
delinquency in interest or principal payments, the probability that they will enter bankruptcy or other
financial reorganization and where observable data indicate that there is a measurable decrease in the
estimated future cash flows, such as changes in arrears or economic conditions that correlate with
defaults.
Financial assets carried at amortized cost

The Group first assesses whether objective evidence of impairment exists individually for financial
assets that are individually significant, or collectively for financial assets that are not individually
significant. If there is objective evidence that an impairment loss on financial assets carried at
amortized cost (i.e., receivables) has been incurred, the amount of the loss is measured as the
difference between the asset’s carrying amount and the present value of estimated future cash flows
discounted at the asset’s original EIR. The carrying amount of the asset is reduced through the use of
an allowance account. The loss is recognized in the consolidated statement of income as ‘Provision
for credit and impairment losses’. The asset, together with the associated allowance accounts, is
written off when there is no realistic prospect of future recovery.
If it is determined that no objective evidence of impairment exists for an individually assessed

financial asset, whether significant or not, the asset is included in a group of financial assets with
similar credit risk characteristics and that group of financial assets is collectively assessed for
impairment. Those characteristics are relevant to the estimation of future cash flows for groups of
such assets by being indicative of the debtor’s ability to pay all amounts due according to the
contractual terms of the assets being evaluated. Assets that are individually assessed for impairment
and for which an impairment loss is or continues to be recognized are not included in a collective
assessment of impairment.
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If, in a subsequent period, the amount of the impairment loss decreases and the decrease can be
related objectively to an event occurring after the impairment was recognized, the previously
recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is recognized
in the consolidated statement of income to the extent that the carrying value of the asset does not
exceed its amortized cost at the reversal date.
The Group performs a regular review of the age and status of its trade and other receivables, designed
to identify receivables with objective evidence of impairment and provide the appropriate allowance
for impairment loss. The review is accomplished using a combination of specific and collective
assessment approaches, with the impairment loss being determined for each risk grouping identified
by the Group (see Note 10).

The Group assesses at each reporting date whether there is objective evidence that a financial asset or
group of financial assets is impaired.
In the case of equity investments classified as AFS financial assets, objective evidence would include
a significant or prolonged decline in the fair value of the investments below its cost. The
determination of what is significant and prolonged is subject to judgment. ‘Significant’ is to be
evaluated against the original cost of the investment and ‘Prolonged’ against the period in which the
fair value has been below its original cost. The Group treats ‘significant’ generally as 20% and
‘prolonged’ as greater than 12 months for quoted equity instruments. Where there is evidence of
impairment, the cumulative loss - measured as the difference between the acquisition cost and the
current fair value, less any impairment loss on that financial asset previously recognized in the
consolidated statement of income - is removed from equity and recognized in the consolidated
statement of income. Impairment losses on equity investments are not reversed through the
consolidated statement of income. Increases in fair value after impairment are recognized directly as
part of other comprehensive income.
In the case of debt instruments classified as AFS financial assets, impairment is assessed based on the
same criteria as financial assets carried at amortized cost. Future interest income is based on the
reduced carrying amount and is accrued based on the rate of interest used to discount future cash
flows for the purpose of measuring impairment loss. Such accrual is recorded under interest income
in the consolidated statement of income. If, in subsequent year, the fair value of a debt instrument
increases, and the increase can be objectively related to an event occurring after the impairment loss
was recognized in the consolidated statement of income, the impairment loss is reversed in the
Financial guarantee contracts

Financial guarantee contracts issued by the Group are those contracts that require a payment to be
made to reimburse the holder for a loss it incurs because the specified debtor fails to make a payment
when due in accordance with the terms of a debt instrument. Financial guarantee contracts are
recognized initially as a liability at fair value, adjusted for transaction costs that are directly
attributable to the issuance of the guarantee. Subsequently, the liability is measured at the higher of
the best estimate of the expenditure required to settle the present obligation at the reporting date and
the amount recognized less cumulative amortization.
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Derecognition of Financial Instruments

Financial assets
A financial asset (or, where applicable a part of a financial asset or part of a group of financial assets)
is derecognized when:
∂ the rights to receive cash flows from the asset have expired;
∂ the Group retains the right to receive cash flows from the asset, but has assumed an obligation to
pay them in full without material delay to a third party under a “pass-through” arrangement; or
∂ the Group has transferred its rights to receive cash flows from the asset and either (a) has
transferred substantially all the risks and rewards of ownership and retained control of the asset,
or (b) has neither transferred nor retained the risk and rewards of the asset but has transferred the
control of the asset.
Where the Group has transferred its rights to receive cash flows from an asset or has entered into a
pass-through arrangement, and has neither transferred nor retained substantially all the risks and
rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of the
Group’s continuing involvement in the asset. Continuing involvement that takes the form of a
guarantee over the transferred asset is measured at the lower of original carrying amount of the asset
and the maximum amount of consideration that the Group could be required to repay.
Financial liabilities
A financial liability is derecognized when the obligation under the liability is discharged or cancelled
or has expired. Where an existing financial liability is replaced by another from the same lender on
substantially different terms, or the terms of an existing liability are substantially modified, such an
exchange or modification is treated as a derecognition of the original liability and the recognition of a
new liability, and the difference in the respective carrying amounts is recognized in the consolidated
statement of income.
Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount reported in the consolidated
statement of financial position if, and only if, there is a currently enforceable legal right to offset the
recognized amounts and there is an intention to settle on a net basis, or to realize the asset and settle
the liability simultaneously. The Group assesses that it has a currently enforceable right of offset if
the right is not contingent on a future event, and is legally enforceable in the normal course of
business, event of default, and event of insolvency or bankruptcy of the Group and all of the
counterparties.
Inventories
Inventories, including goods-in-process, are valued at the lower of cost and NRV. NRV is the
estimated selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale. NRV for materials, spare parts and other supplies
represents the related replacement costs.
When the inventories are sold, the carrying amounts of those inventories are recognized under ‘Cost
of sales’ in the consolidated statement of income in the period when the related revenue is
recognized.
Costs incurred in bringing each product to its present location and conditions are accounted for as
follows:
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Finished goods, goods-in-process, raw materials, containers and packaging materials, and spare
parts and supplies
Cost is determined using the weighted average method. Finished goods and goods-in-process include
direct materials and labor, and a proportion of manufacturing overhead costs based on actual goods
processed and produced, but excluding borrowing costs.
Materials in-transit
Cost is determined using the specific identification basis.
Biological Assets
The biological assets of the Group are divided into two major categories with sub-categories as
follows:
Swine livestock - Breeders (livestock bearer)

- Sucklings (breeders’ offspring)
- Weanlings (comes from sucklings intended to be breeders or to be sold
as fatteners)
- Fatteners/finishers (comes from weanlings unfit to become breeders;
intended for the production of meat)
Poultry livestock - Breeders (livestock bearer)

- Chicks (breeders’ offspring intended to be sold as breeders)
Biological assets are measured on initial recognition and at each reporting date at its fair value less
estimated costs to sell. The fair values are determined based on current market prices of livestock of
similar age, breed and genetic merit. Costs to sell include commissions to brokers and dealers,
nonrefundable transfer taxes and duties. Costs to sell exclude transport and other costs necessary to
get the biological assets to the market.
Agricultural produce is the harvested product of the Group’s biological assets. A harvest occurs
when agricultural produce is either detached from the bearer biological asset or when a biological
asset’s life processes cease. A gain or loss arising on initial recognition of agricultural produce at fair
value less estimated costs to sell is recognized in the consolidated statement of income in the period
in which it arises. The agricultural produce in swine livestock is the suckling that transforms into
weanling then into fatteners/finishers and meats, while the agricultural produce in poultry livestock is
the hatched chick and table eggs.
A gain or loss on initial recognition of a biological asset at fair value less estimated costs to sell and
from a change in fair value less estimated costs to sell of a biological asset are included in the
consolidated statement of income in the period in which it arises.
Property, Plant and Equipment

Property, plant and equipment, except land, are carried at cost less accumulated depreciation and
amortization and impairment losses, if any.
The initial cost of an item of property, plant and equipment comprises its purchase price and any cost
attributable in bringing the asset to its intended location and working condition. Cost also includes:
(a) interest and other financing charges on borrowed funds used to finance the acquisition of
property, plant and equipment to the extent incurred during the period of installation and
construction; and
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(b) asset retirement obligation relating to property, plant and equipment installed/constructed on
leased properties, if any, for the corresponding liability.
Land is stated at cost less any impairment in value.
Subsequent costs are capitalized as part of the ‘Property, plant and equipment’ in the consolidated
statement of financial position, only when it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can be measured reliably. Cost of repairs and
maintenance are expensed when incurred.
Foreign exchange differentials arising from foreign currency borrowings used for the acquisition of
property, plant and equipment are capitalized to the extent that these are regarded as adjustments to
interest costs.
Depreciation and amortization of property, plant and equipment commence once the property, plant
and equipment are available for use and are computed using the straight-line method over the
estimated useful life (EUL) of the assets regardless of utilization.
The EUL of property, plant and equipment of the Group follow:
Years
Land improvements 5 to 10
Buildings and improvements 10 to 30
Machinery and equipment 10
Transportation equipment 5
Furniture, fixtures and equipment 5
Leasehold improvements are amortized over the shorter of their EUL or the corresponding lease
terms. The residual values, useful lives and methods of depreciation and amortization of property,
plant and equipment are reviewed periodically and adjusted, if appropriate, at each reporting date to
ensure that the method and period of depreciation and amortization are consistent with the expected
pattern of economic benefits from items of property, plant and equipment. Any change in the
expected residual values, useful lives and methods of depreciation are adjusted prospectively from the
time the change was determined necessary.
Construction-in-progress and equipment in transit are stated at cost. This includes the cost of
construction and other direct costs. Borrowing costs that are directly attributable to the construction
of property, plant and equipment are capitalized during the construction period. Construction in-
progress and equipment in transit are not depreciated until such time as the relevant assets are
completed and put into operational use.
Construction in-progress and equipment in transit are transferred to the related ‘Property, plant and
equipment’ in the consolidated statement of financial position when the construction or installation
and related activities necessary to prepare the property, plant and equipment for their intended use are
completed, and the property, plant and equipment are ready for service.
Major spare parts and stand-by equipment items that the Group expects to use over more than one
period and can be used only in connection with an item of property, plant and equipment are
accounted for as property, plant and equipment. Depreciation and amortization on these major spare
parts and stand-by equipment commence once these have become available for use (i.e., when it is in
the location and condition necessary for it to be capable of operating in the manner intended by the
Group).
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An item of property, plant and equipment is derecognized upon disposal or when no future economic
benefits are expected to arise from the continued use of the asset. Any gain or loss arising on
derecognition of the property, plant and equipment (calculated as the difference between the net
disposal proceeds and the carrying amount of the item) is included in the consolidated statement of
income, in the period the item is derecognized.
Fully depreciated property, plant and equipment are retained in the accounts until these are no longer
in use.
Investment Properties
Investment properties consist of properties that are held to earn rentals or for capital appreciation or
both, and those which are not occupied by entities in the Group. Investment properties, except for
land, are carried at cost less accumulated depreciation and any impairment loss, if any. Land is
carried at cost less any impairment loss, if any. The carrying amount includes the cost of replacing
part of an existing investment property at the time that cost is incurred if the recognition criteria are
met, and excludes the cost of day-to-day servicing of an investment property.
Investment properties are measured initially at cost, including transaction costs. Transaction costs
represent nonrefundable taxes such as capital gains tax and documentary stamp tax that are for the
account of the Group. An investment property acquired through an exchange transaction is measured
at fair value of the asset acquired unless the fair value of such an asset cannot be measured, in which
case, the investment property acquired is measured at the carrying amount of asset given up.
The Group’s investment properties consists solely of buildings and building improvements and are
depreciated using the straight-line method over their EUL ranging from 10 to 30 years (see Note 17).
The depreciation and amortization method and useful life are reviewed periodically to ensure that the
method and period of depreciation and amortization are consistent with the expected pattern of
economic useful benefits from items of investment properties.
Investment properties are derecognized when either they have been disposed of or when they are
permanently withdrawn from use and no future economic benefit is expected from their disposal.
Any gains or losses on the retirement or disposal of investment properties are recognized in the
consolidated statement of income in the year of retirement or disposal.
Transfers are made to investment property when, and only when, there is a change in use, evidenced
by the end of owner occupation, commencement of an operating lease to another party or by the end
of construction or development. Transfers are made from investment property when, and only when,
there is a change in use, evidenced by commencement of owner occupation or commencement of
development with a view to sale.
For a transfer from investment property to owner-occupied property or inventories, the cost of
property for subsequent accounting is its carrying amount at the date of change in use. If the property
occupied by the Group as an owner-occupied property becomes an investment property, the Group
accounts for such property in accordance with the policy stated under Property, plant and equipment
account up to the date of change in use.
Goodwill
Goodwill represents the excess of the cost of the acquisition over the fair value of identifiable net
assets of the investee at the date of acquisition which is not identifiable to specific assets.
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Goodwill acquired in a business combination from the acquisition date is allocated to each of the
Group’s cash-generating units, or groups of cash-generating units that are expected to benefit from
the synergies of the combination, irrespective of whether other assets or liabilities of the Group are
assigned to those units or groups of units.
Each unit or group of units to which the goodwill is allocated:

∂ represents the lowest level within the Group at which the goodwill is monitored for internal
management purposes; and
∂ is not larger than a segment based on the Group’s operating segments as determined in
accordance with PFRS 8, Operating Segments.
Following initial recognition, goodwill is measured at cost, less any accumulated impairment losses,
if any. Goodwill is reviewed for impairment annually or more frequently, if events or changes in
circumstances indicate that the carrying value may be impaired (see further discussion under
Impairment of nonfinancial assets).
Where goodwill forms part of a cash-generating unit and part of the operation within that unit is
disposed of, the goodwill associated with the operation disposed of is included in the carrying amount
of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of
in this circumstance is measured based on the relative values of the operation disposed of and the
portion of the cash-generating unit retained.
Intangible Assets
Intangible assets (other than goodwill) acquired separately are measured on initial recognition at cost.
The cost of intangible asset acquired in a business combination is its fair value as at the acquisition
date. Following initial recognition, intangible assets are measured at cost less any accumulated
amortization and impairment losses, if any. Internally generated intangibles, excluding capitalized
development costs, are not capitalized and the related expenditure is reflected in profit or loss in the
period in which the expenditure is incurred.
The EUL of intangible assets are assessed to be either finite or indefinite.
The useful lives of intangible assets with a finite life are assessed at the individual asset level.
Intangible assets with finite lives are amortized on a straight line basis over the asset’s EUL and
assessed for impairment, whenever there is an indication that the intangible assets may be impaired.
The amortization period and the amortization method for an intangible asset with a finite useful life
are reviewed at least at each reporting date.
Changes in the EUL or the expected pattern of consumption of future economic benefits embodied in
the asset is accounted for by changing the amortization period or method, as appropriate, and treated
as changes in accounting estimates. The amortization expense on intangible assets with finite useful
lives is recognized in the consolidated statement of income in the expense category consistent with
the function of the intangible asset.
Intangible assets with indefinite useful lives are tested for impairment annually, either individually or
at the cash-generating unit level (see further discussion under Impairment of nonfinancial assets).
Such intangibles are not amortized. The useful life of an intangible asset with an indefinite useful life
is reviewed annually to determine whether indefinite life assessment continues to be supportable. If
not, the change in the useful life assessment from indefinite to finite is made on a prospective basis.
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A gain or loss arising from derecognition of an intangible asset is measured as the difference between
the net disposal proceeds and the carrying amount of the asset and is recognized in the consolidated
statement of income when the asset is derecognized.
A summary of the policies applied to the Group’s intangible assets follows:
Internally generated
EUL Amortization method used or acquired
Product Formulation Indefinite No amortization Acquired
Trademarks/Brands Indefinite No amortization Acquired
Trademarks Finite (4 years) Straight line amortization Acquired
Software Costs Finite (10 years) Straight line amortization Acquired
Customer Relationship Finite (35 years) Straight line amortization Acquired
Investment in Joint Ventures

The Group has interests in joint ventures. A joint venture is a contractual arrangement whereby two
or more parties who have joint control over the arrangement have rights to the net assets of the
arrangements.
The Group’s investment in joint venture is accounted for using the equity method of accounting.
Under the equity method, the investment in a joint venture is carried in the consolidated statement of
financial position at cost plus post-acquisition changes in the Group’s share in the net assets of the
joint venture. The consolidated statement of income reflects the Group’s share in the results of
operations of the joint venture. Where there has been a change recognized directly in the investees’
equity, the Group recognizes its share of any changes and discloses this, when applicable, in the other
comprehensive income in the consolidated statement of changes in equity. Profits and losses arising
from transactions between the Group and the joint ventures are eliminated to the extent of the interest
in the joint ventures.
The Group discontinues applying the equity method when its investments in investee companies are
reduced to zero. Accordingly, additional losses are not recognized unless the Group has guaranteed
certain obligations of the associates or joint venture. When the investees subsequently report net
income, the Group will resume applying the equity method but only after its equity in the net income
equals the equity in net losses of associates and joint venture not recognized during the period the
equity method was suspended.
The investee company’s accounting policies conform to those used by the Group for like transactions
and events in similar circumstances.
Impairment of Nonfinancial Assets

This accounting policy applies primarily to the Group’s property, plant and equipment (see Note 13),
investment properties (see Note 17), investment in joint ventures (see Note 16), goodwill and
intangible assets (see Note 15).
Except for goodwill and intangible assets with indefinite useful lives which are tested for impairment
annually, the Group assesses at each reporting date whether there is an indication that its nonfinancial
assets may be impaired. When an indicator of impairment exists or when an annual impairment
testing for an asset is required, the Group makes a formal estimate of recoverable amount.
Recoverable amount is the higher of an asset’s (or cash-generating unit’s) fair value less costs to sell
and its value in use and is determined for an individual asset, unless the asset does not generate cash
inflows that are largely independent of those from other assets or groups of assets, in which case the
recoverable amount is assessed as part of the cash-generating unit to which it belongs. Where the
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carrying amount of an asset (or cash generating unit) exceeds its recoverable amount, the asset (or
cash-generating unit) is considered impaired and is written-down to its recoverable amount.
In assessing value in use, the estimated future cash flows are discounted to their present value using a
pre-tax discount rate that reflects current market assessments of the time value of money and the risks
specific to the asset (or cash-generating unit).
Impairment losses are recognized under ‘Provision for credit and impairment losses’ in the
The following criteria are also applied in assessing impairment of specific assets:
Property, plant and equipment, investment properties, intangible assets with definite useful lives
For property, plant and equipment, investment properties, intangible assets with definite useful lives,
an assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment losses may no longer exist or may have decreased. If such indication exists,
the recoverable amount is estimated. A previously recognized impairment loss is reversed only if
there has been a change in the estimates used to determine the asset’s recoverable amount since the
last impairment loss was recognized. If that is the case, the carrying amount of the asset is increased
to its recoverable amount. That increased amount cannot exceed the carrying amount that would have
been determined, net of depreciation and amortization, had no impairment loss been recognized for
the asset in prior years. Such reversal is recognized in the consolidated statement of income. After
such a reversal, the depreciation and amortization expense is adjusted in future years to allocate the
asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining
useful life.
Goodwill
Goodwill is reviewed for impairment, annually or more frequently, if events or changes in
circumstances indicate that the carrying value may be impaired.
Impairment is determined by assessing the recoverable amount of the cash-generating unit (or group
of cash-generating units) to which the goodwill relates. Where the recoverable amount of the cash-
generating unit (or group of cash-generating units) is less than the carrying amount to which goodwill
has been allocated, an impairment loss is recognized. Where goodwill forms part of a cash-
generating unit (or group of cash-generating units) and part of the operations within that unit is
disposed of, the goodwill associated with the operation disposed of is included in the carrying amount
of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of
in this circumstance is measured on the basis of the relative fair values of the operation disposed of
and the portion of the cash-generating unit retained.
Impairment losses relating to goodwill cannot be reversed in future periods.
Intangible assets with indefinite useful lives

Intangible assets with indefinite useful lives are tested for impairment annually as of reporting date
either individually or at the cash-generating unit level, as appropriate.
Investments in joint ventures

After application of the equity method, the Group determines whether it is necessary to recognize
additional impairment losses on the Group’s investments in joint ventures. If this is the case, the
Group calculates the amount of impairment as being the difference between the fair value of the joint
ventures and the acquisition cost and recognizes the amount under ‘Provision for credit and
impairment losses’ in the consolidated statement of income.
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Revenue Recognition (Upon adoption of PFRS 15 beginning January 1, 2018)

Revenue from contracts with customers is recognized when control of the goods or services are
transferred to the customer at an amount that reflects the consideration to which the Group expects to
be entitled in exchange for those goods or services. The Group has concluded that it is the principal
in its revenue arrangements because it controls the goods or services before transferring them to the
customer.
Sale of goods and services

Revenue from sale of goods and services is recognized at the point in time when control of the asset
is transferred to the customer, generally on delivery of the goods and services. The Group considers
whether there are other promises in the contract that are separate performance obligations to which a
portion of the transaction price needs to be allocated. In determining the transaction price for the sale
of goods and services, the Group considers the effects of variable consideration, the existence of
significant financing components, noncash consideration, and consideration payable to the customer,
if any.
Sale of sugar
Sale of raw sugar is recognized upon (a) endorsement and transfer of quedans for quedan-based sales
and (b) shipment or delivery and acceptance by the customers for physical sugar sales. Sale of
refined sugar and alcohol is recognized upon shipment of delivery and acceptance by the customers.
Sale of molasses warehouse receipts, which represents ownership title over the molasses inventories.
Rendering of tolling services

Revenue derived from tolling activities is recognized as revenue at the point in time when the related
services have been rendered.
Revenue Recognition (Prior to adoption of PFRS 15)

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reliably measured. Revenue is measured at the fair value of the
consideration received, excluding discounts, rebates and other sales taxes or duties. The Group
assesses its revenue arrangements against specific criteria in order to determine if it is acting as
principal or agent. The Group has concluded that it is acting as principal in all of its revenue
arrangements.
Sale of goods
Revenue from sale of goods is recognized upon delivery, when the significant risks and rewards of
ownership of the goods have passed to the buyer and the amount of revenue can be measured reliably.
Revenue is measured at the fair value of the consideration received or receivable, net of any trade
discounts, prompt payment discounts and volume rebates.
Rendering of tolling services

Revenue derived from tolling activities is recognized as revenue when the related services have been
rendered.
Revenue outside the scope of PFRS 15:

Dividend income
Dividend income is recognized when the shareholder’s right to receive the payment is established.
Rent income
Rent income arising on investment properties is accounted for on a straight-line basis over the lease
term on ongoing leases.
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Interest income
Interest income is recognized as it accrues using the EIR method under which interest income is
recognized at the rate that exactly discounts estimated future cash receipts through the expected life of
the financial instrument to the net carrying amount of the financial asset.
Provisions
Provisions are recognized when: (a) the Group has a present obligation (legal or constructive) as a
result of a past event; (b) it is probable (i.e., more likely than not) that an outflow of resources
embodying economic benefits will be required to settle the obligation; and (c) a reliable estimate can
be made of the amount of the obligation. Provisions are reviewed at each reporting date and adjusted
to reflect the current best estimate. If the effect of the time value of money is material, provisions are
determined by discounting the expected future cash flows at a pre-tax rate that reflects current market
assessment of the time value of money and, where appropriate, the risks specific to the liability.
Where discounting is used, the increase in the provision due to the passage of time is recognized as
interest expense under ‘Finance cost’ in the consolidated statement of income. Where the Group
expects a provision to be reimbursed, the reimbursement is recognized as a separate asset but only
when the reimbursement is probable.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements but disclosed in the
notes to the consolidated financial statements unless the possibility of an outflow of resources
embodying economic benefits is remote.
Contingent assets are not recognized in the consolidated financial statements but disclosed in the
notes to the consolidated financial statements when an inflow of economic benefits is probable.
Pension Costs
The net defined benefit liability or asset is the aggregate of the present value of the defined benefit
obligation at the end of the reporting period reduced by the fair value of plan assets, if any, adjusted
for any effect of limiting a net defined benefit asset to the asset ceiling. The asset ceiling is the
present value of any economic benefits available in the form of refunds from the plan or reductions in
future contributions to the plan.
The cost of providing benefits under the defined benefit plans is actuarially determined using the
projected unit credit method.
Defined benefit costs comprise the following:

∂ Current service cost
∂ Net interest on the net defined benefit liability or asset
∂ Remeasurements of net defined benefit liability or asset
Service costs which include current service costs, past service costs and gains or losses on non-
routine settlements are recognized as expense in profit or loss.
Past service costs are recognized when plan amendment or curtailment occurs. These amounts are
calculated periodically by independent qualified actuaries.
Net interest on the net defined benefit liability or asset is the change during the period in the net
defined benefit liability or asset that arises from the passage of time which is determined by applying
the discount rate based on government bonds to the net defined benefit liability or asset.
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Net interest on the net defined benefit liability or asset is recognized as expense or income in the
Remeasurements comprising actuarial gains and losses, return on plan assets and any change in the
effect of the asset ceiling (excluding net interest on defined benefit liability) are recognized
immediately in other comprehensive income in the period in which they arise. Remeasurements are
not reclassified to consolidated statement of income in subsequent periods.
Plan assets are assets that are held by a long-term employee benefit fund or qualifying insurance
policies. Plan assets are not available to the creditors of the Group, nor can they be paid directly to
the Group. Fair value of plan assets is based on market price information. When no market price is
available, the fair value of plan assets is estimated by discounting expected future cash flows using a
discount rate that reflects both the risk associated with the plan assets and the maturity or expected
disposal date of those assets (or, if they have no maturity, the expected period until the settlement of
the related obligations). If the fair value of the plan assets is higher than the present value of the
defined benefit obligation, the measurement of the resulting defined benefit asset is limited to the
present value of economic benefits available in the form of refunds from the plan or reductions in
future contributions to the plan.
The Group’s right to be reimbursed of some or all of the expenditure required to settle a defined
benefit obligation is recognized as a separate asset at fair value when and only when reimbursement is
virtually certain.
Termination benefit
Termination benefits are employee benefits provided in exchange for the termination of an
employee’s employment as a result of either an entity’s decision to terminate an employee’s
employment before the normal retirement date or an employee’s decision to accept an offer of
benefits in exchange for the termination of employment.
A liability and expense for a termination benefit is recognized at the earlier of when the entity can no
longer withdraw the offer of those benefits and when the entity recognizes related restructuring costs.
Initial recognition and subsequent changes to termination benefits are measured in accordance with
the nature of the employee benefit, as either post-employment benefits, short-term employee benefits,
or other long-term employee benefits.
Employee leave entitlement

Employee entitlements to annual leave are recognized as a liability when they are accrued to the
employees. The undiscounted liability for leave expected to be settled wholly before twelve months
after the end of the annual reporting period is recognized for services rendered by employees up to
the end of the reporting period.
Income Taxes
Current tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected
to be recovered from or paid to the taxation authorities.
The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted at the reporting date.
Deferred tax
Deferred tax is provided using the balance sheet liability method on all temporary differences, with
certain exceptions, at the reporting date between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes.
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Deferred tax liabilities are recognized for all taxable temporary differences, except:
∂ When the deferred tax liability arises from the initial recognition of goodwill or an asset or
liability in a transaction that is not a business combination and, at the time of the transaction,
affects neither the accounting profit nor taxable profit or loss; and
∂ In respect of taxable temporary differences associated with investments in subsidiaries, associates
and interests in joint ventures, where the timing of the reversal of the temporary differences can
be controlled and it is probable that the temporary differences will not reverse in the foreseeable
future.
Deferred tax assets are recognized for all deductible temporary differences, carryforward benefits of
unused tax credits from unused minimum corporate income tax (MCIT) over the regular corporate
income tax (RCIT) and unused net operating loss carryover (NOLCO), to the extent that it is probable
that future taxable income will be available against which the deductible temporary differences, and
the carryforward benefits of unused tax credits from excess MCIT and unused NOLCO can be
utilized, except:
∂ Where the deferred tax asset relating to the deductible temporary difference arises from the initial
recognition of an asset or liability in a transaction that is not a business combination and, at the
time of the transaction, affects neither the accounting profit nor future taxable profit or loss; and
∂ In respect of deductible temporary differences associated with investments in subsidiaries,

associates and interests in joint ventures, deferred tax assets are recognized only to the extent that
it is probable that the temporary differences will reverse in the foreseeable future and future
taxable profit will be available against which the temporary differences can be utilized.
The carrying amounts of deferred tax assets are reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient taxable income will be available to allow all or part
of the deferred tax assets to be utilized. Unrecognized deferred tax assets are reassessed at each
reporting date, and are recognized to the extent that it has become probable that future taxable income
will allow the deferred tax assets to be recognized.
Deferred tax relating to items recognized outside profit or loss is recognized outside profit or loss in
the consolidated statement of comprehensive income. Deferred tax items are recognized in
correlation to the underlying transaction either in other comprehensive income or directly in equity.
Deferred tax assets and liabilities are measured at the tax rate that is expected to apply to the period
when the asset is realized or the liability is settled, based on tax rates (and tax laws) that have been
enacted or substantively enacted as of the reporting date.
Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off
current tax assets against current tax liabilities and the deferred taxes relate to the same taxable entity
and the same taxation authority.
Value-added Tax (VAT)

Revenues, expenses, and assets are recognized net of the amount of VAT, if applicable.
When VAT from sale of goods and/or services (output VAT) exceeds VAT passed on from purchases
of goods or services (input VAT), the excess is recognized as payable in the consolidated statement of
financial position. When VAT passed on from purchases of goods or services (input VAT) exceeds
VAT from sale of goods and/or services (output VAT), the excess is recognized as an asset in the
consolidated statement financial position to the extent of the recoverable amount.
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The net amount of VAT recoverable from, or payable to, the taxation authority is included as part of
“Other current assets” or “Accounts payable and other accrued liabilities” in the consolidated statement
of financial position.
Borrowing Costs
Interest and other finance costs incurred during the construction period on borrowings used to finance
property development are capitalized to the appropriate asset accounts. Capitalization of borrowing
costs commences when the activities to prepare the asset are in progress, and expenditures and
borrowing costs are being incurred. The capitalization of these borrowing costs ceases when
substantially all the activities necessary to prepare the asset for sale or its intended use are complete.
If the carrying amount of the asset exceeds its recoverable amount, an impairment loss is recorded.
Capitalized borrowing cost is based on the applicable weighted average borrowing rate. Borrowing
costs which do not qualify for capitalization are expensed as incurred.
Interest expense on loans is recognized using the EIR method over the term of the loans.
Leases
The determination of whether an arrangement is, or contains a lease, is based on the substance of the
arrangement at inception date, and requires an assessment of whether the fulfillment of the
arrangement is dependent on the use of a specific asset or assets and the arrangement conveys a right
to use the asset or assets, even if that right is not explicitly specified in an arrangement.
A reassessment is made after inception of the lease only if one of the following applies:
a) there is a change in contractual terms, other than a renewal or extension of the arrangement;
b) a renewal option is exercised or an extension granted, unless that term of the renewal or extension
was initially included in the lease term;
c) there is a change in the determination of whether fulfillment is dependent on a specified asset; or
d) there is a substantial change to the asset.
Where a reassessment is made, lease accounting shall commence or cease from the date when the
change in circumstances gave rise to the reassessment for scenarios a, c or d above, and at the date of
renewal or extension period for scenario b.
Group as a lessee
A lease is classified at the inception date as finance lease or an operating lease.
Finance leases, which transfer to the Group substantially all the risks and benefits incidental to
ownership of the leased item, are capitalized at the commencement of the lease at the fair value of the
leased property or, if lower, at the present value of the minimum lease payments. Lease payments are
apportioned between finance charges and reduction of the lease liability so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance charges are recognized in ‘Finance
costs’ in the consolidated statement of income.
A leased asset is depreciated over the EUL of the asset. However, if there is no reasonable certainty
that the Group will obtain ownership by the end of the lease term, the asset is depreciated over the
shorter of the EUL of the asset and the lease term.
Leases where the lessor retains substantially all the risks and benefits of ownership of the asset are
classified as operating leases. Operating lease payments are recognized as an expense in the
consolidated statement of income on a straight-line basis over the lease term.
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Group as a lessor
Leases where the Group does not transfer substantially all the risks and benefits of ownership of the
assets are classified as operating leases. Initial direct costs incurred in negotiating operating leases
are added to the carrying amount of the leased asset and recognized over the lease term on the same
basis as the rental income. Contingent rents are recognized as revenue in the period in which they are
earned.
Cost and Expenses

Cost and expenses are decreases in economic benefits during the accounting period in the form of
outflows or decrease of assets or incurrence of liabilities that result in decreases in equity, other than
those relating to distributions to equity participants. Cost and expenses are recognized when incurred.
Foreign Currency Translation/Transactions

The functional and presentation currency of the Parent Company and its Philippine subsidiaries is the
Philippine Peso. Each entity in the Group determines its own functional currency and items included
in the consolidated financial statements of each entity are measured using that functional currency.
Transactions and balances

Transactions in foreign currencies are initially recorded in the functional currency rate prevailing at
the date of the transaction. Monetary assets and liabilities denominated in foreign currencies are
retranslated at the functional currency rate of exchange prevailing at the reporting date. All
differences are taken to the consolidated statement of income. Tax charges and credits attributable to
exchange differences on those borrowings are also dealt with in statement of income. Nonmonetary
items that are measured in terms of historical cost in a foreign currency are translated using the
exchange rate as at the date of initial transaction. Nonmonetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was
determined.
Group companies
As of reporting date, the assets and liabilities of the subsidiaries are translated into the presentation
currency of the Group at the rate of exchange prevailing at reporting date and their respective
statements of income are translated at the weighted average exchange rates for the year. The
exchange differences arising on the translation are taken directly to a separate component of equity as
‘Cumulative translation adjustments’ under ‘Other comprehensive income’. On disposal of a foreign
entity, the deferred cumulative amount recognized in equity relating to that particular foreign
operation shall be recognized in the consolidated statement of income.
Common Stock
Capital stocks are classified as equity and are recorded at par. Proceeds in excess of par value are
recorded as ‘Additional paid-in capital’ in the consolidated statement of changes in equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Retained Earnings
Retained earnings represent the cumulative balance of periodic net income (loss), dividend
distributions, prior period adjustments and effect of changes in accounting policy and capital
adjustments.
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Other Comprehensive Income

Other comprehensive income comprises items of income and expenses (including items previously
presented under the consolidated statements of changes in equity) that are not recognized in the
consolidated statement of income for the year in accordance with PFRSs.
Treasury Shares
Treasury shares are recorded at cost and are presented as a deduction from equity. Any consideration
paid or received in connection with treasury shares are recognized directly in equity.
When the shares are retired, the capital stock account is reduced by its par value. The excess of cost
over par value upon retirement is debited to the following accounts in the order given: (a) additional
paid-in capital to the extent of the specific or average additional paid-in capital when the shares were
issued, and (b) retained earnings. When shares are sold, the treasury share account is credited and
reduced by the weighted average cost of the shares sold. The excess of any consideration over the
cost is credited to additional paid-in capital.
Transaction costs incurred such as registration and other regulatory fees, amounts paid to legal,
accounting and other professional advisers, printing costs and stamp duties (net of any related income
tax benefit) in relation to issuing or acquiring the treasury shares are accounted for as reduction from
equity, which is disclosed separately.
No gain or loss is recognized in the consolidated statement of income on the purchase, sale, issue or
cancellation of the Group’s own equity instruments.
Dividends on Common Stocks

Dividends on common shares are recognized as a liability and deducted from equity when approved
by BOD of the Parent Company in the case of cash dividends, and the BOD and shareholders of the
Parent Company in the case of stock dividends.
Earnings Per Share (EPS)

Basic EPS is computed by dividing consolidated net income attributable to equity holders of the
Parent Company (consolidated net income less dividends on preferred shares) by the weighted
average number of common stocks issued and outstanding during the year, adjusted for any
subsequent stock dividends declared.
Diluted EPS amounts are calculated by dividing the consolidated net income attributable to equity
holders of the Parent Company by the weighted average number of ordinary shares outstanding
during the year plus the weighted average number of ordinary shares that would be issued on the
conversion of all the dilutive potential ordinary shares into ordinary shares.
Segment Reporting
The Group’s operating businesses are organized and managed separately according to the nature of
the products and services provided, with each segment representing a strategic business unit that
offers different products and serves different markets. Financial information on business segments is
presented in Note 6 to the consolidated financial statements.
Events after Reporting Date

Any post year-end event up to the date of approval of the BOD of the consolidated financial
statements that provides additional information about the Group’s position at reporting date (adjusting
event) is reflected in the consolidated financial statements. Any post year-end event that is not an
adjusting event is disclosed in the notes to the consolidated financial statements, when material.
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Standards Issued but not yet Effective

Pronouncements issued but not yet effective are listed below. Unless otherwise indicated, the Group
does not expect that the future adoption of the said pronouncements will have a significant impact on
its consolidated financial statements. The Group intends to adopt the following pronouncements
when they become effective.
Effective beginning on or after January 1, 2019

∂ Amendments to PFRS 9, Prepayment Features with Negative Compensation
Under PFRS 9, a debt instrument can be measured at amortized cost or at fair value through other
comprehensive income, provided that the contractual cash flows are ‘solely payments of principal
and interest on the principal amount outstanding’ (the SPPI criterion) and the instrument is held
within the appropriate business model for that classification. The amendments to PFRS 9 clarify
that a financial asset passes the SPPI criterion regardless of the event or circumstance that causes
the early termination of the contract and irrespective of which party pays or receives reasonable
compensation for the early termination of the contract. The amendments should be applied
retrospectively and are effective from January 1, 2019, with earlier application permitted.
∂ PFRS 16, Leases

PFRS 16 sets out the principles for the recognition, measurement, presentation and disclosure of
leases and requires lessees to account for all leases under a single on-balance sheet model similar
to the accounting for finance leases under PAS 17, Leases. The standard includes two
recognition exemptions for lessees – leases of ’low-value’ assets (e.g., personal computers) and
short-term leases (i.e., leases with a lease term of 12 months or less). At the commencement date
of a lease, a lessee will recognize a liability to make lease payments (i.e., the lease liability) and
an asset representing the right to use the underlying asset during the lease term (i.e., the right-of-
use asset). Lessees will be required to separately recognize the interest expense on the lease
liability and the depreciation expense on the right-of-use asset.
Lessees will be also required to remeasure the lease liability upon the occurrence of certain events
(e.g., a change in the lease term, a change in future lease payments resulting from a change in an
index or rate used to determine those payments). The lessee will generally recognize the amount
of the remeasurement of the lease liability as an adjustment to the right-of-use asset.
Lessor accounting under PFRS 16 is substantially unchanged from today’s accounting under
PAS 17. Lessors will continue to classify all leases using the same classification principle as in
PAS 17 and distinguish between two types of leases: operating and finance leases.
PFRS 16 also requires lessees and lessors to make more extensive disclosures than under PAS 17.
A lessee can choose to apply the standard using either a full retrospective or a modified
retrospective approach. The standard’s transition provisions permit certain reliefs.
The Group is currently assessing the impact of adopting PFRS 16.
∂ Amendments to PAS 19, Employee Benefits, Plan Amendment, Curtailment or Settlement

The amendments to PAS 19 address the accounting when a plan amendment, curtailment or
settlement occurs during a reporting period. The amendments specify that when a plan
amendment, curtailment or settlement occurs during the annual reporting period, an entity is
required to:
∂ Determine current service cost for the remainder of the period after the plan amendment,
curtailment or settlement, using the actuarial assumptions used to remeasure the net
defined benefit liability (asset) reflecting the benefits offered under the plan and the plan
assets after that event.
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∂ Determine net interest for the remainder of the period after the plan amendment,
curtailment or settlement using: the net defined benefit liability (asset) reflecting the
benefits offered under the plan and the plan assets after that event; and the discount rate
used to remeasure that net defined benefit liability (asset).
The amendments also clarify that an entity first determines any past service cost, or a gain or loss
on settlement, without considering the effect of the asset ceiling. This amount is recognized in
profit or loss. An entity then determines the effect of the asset ceiling after the plan amendment,
curtailment or settlement. Any change in that effect, excluding amounts included in the net
interest, is recognized in other comprehensive income.
The amendments apply to plan amendments, curtailments, or settlements occurring on or after the
beginning of the first annual reporting period that begins on or after January 1, 2019, with early
application permitted. These amendments will apply only to any future plan amendments,
curtailments, or settlements of the Group.
∂ Amendments to PAS 28, Long-term Interests in Associates and Joint Ventures

The amendments clarify that an entity applies PFRS 9 to long-term interests in an associate or
joint venture to which the equity method is not applied but that, in substance, form part of the net
investment in the associate or joint venture (long-term interests). This clarification is relevant
because it implies that the ECL model in PFRS 9 applies to such long-term interests.
The amendments also clarified that, in applying PFRS 9, an entity does not take account of any
losses of the associate or joint venture, or any impairment losses on the net investment,
recognized as adjustments to the net investment in the associate or joint venture that arise from
applying PAS 28, Investments in Associates and Joint Ventures.
The amendments should be applied retrospectively and are effective from January 1, 2019, with
early application permitted. Since the Group does not have such long-term interests in its
associate and joint venture, the amendments will not have an impact on its consolidated financial
statements.
∂ Philippine Interpretation IFRIC-23, Uncertainty over Income Tax Treatments

The interpretation addresses the accounting for income taxes when tax treatments involve
uncertainty that affects the application of PAS 12, Income Taxes, and does not apply to taxes or
levies outside the scope of PAS 12, nor does it specifically include requirements relating to
interest and penalties associated with uncertain tax treatments.
The interpretation specifically addresses the following:

∂ Whether an entity considers uncertain tax treatments separately
∂ The assumptions an entity makes about the examination of tax treatments by taxation
authorities
∂ How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused
tax credits and tax rates
∂ How an entity considers changes in facts and circumstances
An entity must determine whether to consider each uncertain tax treatment separately or together
with one or more other uncertain tax treatments. The approach that better predicts the resolution
of the uncertainty should be followed.
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Annual Improvements to PFRSs 2015-2017 Cycle

∂ Amendments to PFRS 3, Business Combinations, and PFRS 11, Joint Arrangements,
Previously Held Interest in a Joint Operation
The amendments clarify that, when an entity obtains control of a business that is a joint
operation, it applies the requirements for a business combination achieved in stages,
including remeasuring previously held interests in the assets and liabilities of the joint
operation at fair value. In doing so, the acquirer remeasures its entire previously held interest
in the joint operation.
A party that participates in, but does not have joint control of, a joint operation might obtain
joint control of the joint operation in which the activity of the joint operation constitutes a
business as defined in PFRS 3. The amendments clarify that the previously held interests in
that joint operation are not remeasured.
An entity applies those amendments to business combinations for which the acquisition date
is on or after the beginning of the first annual reporting period beginning on or after
January 1, 2019 and to transactions in which it obtains joint control on or after the beginning
of the first annual reporting period beginning on or after January 1, 2019, with early
application permitted. These amendments are currently not applicable to the Group but may
apply to future transactions.
∂ Amendments to PAS 12, Income Tax Consequences of Payments on Financial Instruments

Classified as Equity
The amendments clarify that the income tax consequences of dividends are linked more
directly to past transactions or events that generated distributable profits than to distributions
to owners. Therefore, an entity recognizes the income tax consequences of dividends in
profit or loss, other comprehensive income or equity according to where the entity originally
recognized those past transactions or events.
An entity applies those amendments for annual reporting periods beginning on or after
January 1, 2019, with early application is permitted. These amendments are not relevant to
the Group because dividends declared by the Group do not give rise to tax obligations under
the current tax laws.
∂ Amendments to PAS 23, Borrowing Costs, Borrowing Costs Eligible for Capitalization
The amendments clarify that an entity treats as part of general borrowings any borrowing
originally made to develop a qualifying asset when substantially all of the activities necessary
to prepare that asset for its intended use or sale are complete.
An entity applies those amendments to borrowing costs incurred on or after the beginning of
the annual reporting period in which the entity first applies those amendments. An entity
applies those amendments for annual reporting periods beginning on or after January 1, 2019,
with early application permitted.
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∂ Amendments to PFRS 3, Definition of a Business
The amendments to PFRS 3 clarify the minimum requirements to be a business, remove the
assessment of a market participant’s ability to replace missing elements, and narrow the
definition of outputs. The amendments also add guidance to assess whether an acquired process
is substantive and add illustrative examples. An optional fair value concentration test is
introduced which permits a simplified assessment of whether an acquired set of activities and
assets is not a business.
An entity applies those amendments prospectively for annual reporting periods beginning on or
after January 1, 2020, with earlier application permitted.
These amendments will apply on future business combinations of the Group.
∂ Amendments to PAS 1, Presentation of Financial Statements, and PAS 8, Accounting Policies,

Changes in Accounting Estimates and Errors, Definition of Material
The amendments refine the definition of material in PAS 1 and align the definitions used across
PFRSs and other pronouncements. They are intended to improve the understanding of the
existing requirements rather than to significantly impact an entity’s materiality judgements.
An entity applies those amendments prospectively for annual reporting periods beginning on or
after January 1, 2020, with earlier application permitted.

∂ PFRS 17, Insurance Contracts
PFRS 17 is a comprehensive new accounting standard for insurance contracts covering
recognition and measurement, presentation and disclosure. Once effective, PFRS 17 will replace
PFRS 4, Insurance Contracts. This new standard on insurance contracts applies to all types of
insurance contracts (i.e., life, non-life, direct insurance and re-insurance), regardless of the type of
entities that issue them, as well as to certain guarantees and financial instruments with
discretionary participation features. A few scope exceptions will apply.
The overall objective of PFRS 17 is to provide an accounting model for insurance contracts that
is more useful and consistent for insurers. In contrast to the requirements in PFRS 4, which are
largely based on grandfathering previous local accounting policies, PFRS 17 provides a
comprehensive model for insurance contracts, covering all relevant accounting aspects. The core
of PFRS 17 is the general model, supplemented by:
∂ A specific adaptation for contracts with direct participation features (the variable fee
approach)
∂ A simplified approach (the premium allocation approach) mainly for short-duration
contracts
PFRS 17 is effective for reporting periods beginning on or after January 1, 2021, with
comparative figures required. Early application is permitted.
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Deferred effectivity
∂ Amendments to PFRS 10, Consolidated Financial Statements, and PAS 28, Sale or Contribution
of Assets between an Investor and its Associate or Joint Venture
The amendments address the conflict between PFRS 10 and PAS 28 in dealing with the loss of
control of a subsidiary that is sold or contributed to an associate or joint venture. The
amendments clarify that a full gain or loss is recognized when a transfer to an associate or joint
venture involves a business as defined in PFRS 3. Any gain or loss resulting from the sale or
contribution of assets that does not constitute a business, however, is recognized only to the
extent of unrelated investors’ interests in the associate or joint venture.
On January 13, 2016, the Financial Reporting Standards Council deferred the original effective
date of January 1, 2016 of the said amendments until the International Accounting Standards
Board (IASB) completes its broader review of the research project on equity accounting that may
result in the simplification of accounting for such transactions and of other aspects of accounting
for associates and joint ventures.
3. Significant Accounting Judgments and Estimates
The preparation of the consolidated financial statements in compliance with PFRSs requires the
Group to make estimates and assumptions that affect the reported amounts of assets, liabilities,
income and expenses and disclosure of contingent assets and contingent liabilities. Future events
may occur which will cause the assumptions used in arriving at the estimates to change. The effects
of any change in estimates are reflected in the consolidated financial statements as they become
reasonably determinable.
Judgments and estimates are continually evaluated and are based on historical experience and other
factors, including expectations of future events that are believed to be reasonable under the
circumstances.
Judgments
In the process of applying the Group’s accounting policies, management has made the following
judgments, apart from those involving estimations, which have the most significant effect on the
amounts recognized in the consolidated financial statements:
a. Revenue recognition on sale of goods and services

Revenue recognition under PFRS 15 involves the application of significant judgment and
estimation in the: (a) identification of the contract for sale of goods that would meet the
requirements of PFRS 15; (b) assessment of performance obligation and the probability that the
entity will collect the consideration from the buyer; (c) determining method to estimate variable
consideration and assessing the constraint; and (d) recognition of revenue as the Group satisfies
the performance obligation.
i. Existence of a contract
The Group enters into a contract with customer through an approved purchase order which
constitutes a valid contract as specific details such as the quantity, price, contract terms
and their respective obligations are clearly identified. In the case of sales to key accounts
and distributors, the combined approved purchase order and trading terms
agreement/exclusive distributorship agreement constitute a valid contract. In addition,
part of the assessment process of the Group before revenue recognition is to assess the
probability that the Group will collect the consideration to which it will be entitled in
exchange for the goods sold that will be transferred to the customer.
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ii. Identifying performance obligation

The Group identifies performance obligations by considering whether the promised goods
or services in the contract are distinct goods or services. A good or service is distinct
when the customer can benefit from the good or service on its own or together with other
resources that are readily available to the customer and the Group’s promise to transfer the
good or service to the customer is separately identifiable from the other promises in the
contract.
Based on management assessment, other than the sale of goods and services, no other
performance obligations were identified except in the case of milling revenue.
iii. Recognition of revenue as the Group satisfies the performance obligation

The Group recognizes its revenue for all revenue streams at a point in time, when the
goods are sold and delivered and when services are already rendered.
b. Contingencies
The Group is currently involved in various legal proceedings. The estimate of the probable costs
for the resolution of these claims has been developed in consultation with outside counsel
handling the defense in these matters and is based upon an analysis of potential results. The
Group currently does not believe these proceedings will have a material effect on the Group’s
financial position. It is possible, however, that future results of operations could be materially
affected by changes in the estimates or in the effectiveness of the strategies relating to these
proceedings.
Estimates
The key assumptions concerning the future and other sources of estimation uncertainty at the
financial position date that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities within the next financial year are discussed below.
a. Assessment for ECL on trade receivables

The Group, applying the simplified approach in the computation of ECL, initially uses a
provision matrix based on historical default rates for trade receivables. The provision matrix
specifies provision rates depending on the number of days that a trade receivable is past due. The
Group also uses appropriate groupings if its historical credit loss experience show significantly
different loss patterns for different customer segments. The Group then adjusts the historical
credit loss experience with forward-looking information on the basis of current observable data
affecting each customer segment to reflect the effects of current and forecasted economic
conditions.
The Group adjusts historical default rates to forward-looking default rate by determining the
closely related economic factor affecting each customer segment. The Group regularly reviews
the methodology and assumptions used for estimating ECL to reduce any differences between
estimates and actual credit loss experience.
The determination of the relationship between historical default rates and forecasted economic
conditions is a significant accounting estimate. Accordingly, the provision for ECL on trade
receivables is sensitive to changes in assumptions about forecasted economic conditions.
The Group has assessed that the ECL on trade receivables is not material because substantial
amount of receivables are normally collected within one year. The carrying amount of trade
receivables is P
=12.1 billion and P
=13.7 billion as at December 31, 2018 and 2017, respectively
(see Note 10).
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b. Assessment for ECL on Other Financial Assets at Amortized Cost

The Group determines the allowance for ECL using general approach based on the probability-
weighted estimate of the present value of all cash shortfalls over the expected life of financial
assets at amortized cost. ECL is provided for credit losses that result from possible default events
within the next 12-months unless there has been a significant increase in credit risk since initial
recognition in which case ECL is provided based on lifetime ECL.
When determining if there has been a significant increase in credit risk, the Group considers
reasonable and supportable information that is available without undue cost or effort and that is
relevant for the particular financial instrument being assessed such as, but not limited to, the
following factors:
∂ Actual or expected external and internal credit rating downgrade;

∂ Existing or forecasted adverse changes in business, financial or economic conditions; and,
∂ Actual or expected significant adverse changes in the operating results of the borrower.
The Group also considers financial assets that are more than 90 days past due to be the latest
point at which lifetime ECL should be recognized unless it can demonstrate that this does not
represent a significant risk in credit risk such as when non-payment was an administrative
oversight rather than resulting from financial difficulty of the borrower.
The Group has assessed that the ECL on other financial assets at amortized cost is not material
because the transactions with respect to these financial assets were entered into by the Group only
with reputable banks and companies with good credit standing and relatively low risk of defaults.
Accordingly, no provision for ECL on other financial assets at amortized cost was recognized in
2018.
c. Determination of fair values less estimated costs to sell of biological assets

The fair values of biological assets are determined based on current market prices of livestock of
similar age, breed and genetic merit. Costs to sell include commissions to brokers and dealers,
nonrefundable transfer taxes and duties. Costs to sell exclude transport and other costs necessary
to get the biological assets to the market. The fair values are reviewed and updated if
expectations differ from previous estimates due to changes brought by both physical change and
price changes in the market. It is possible that future results of operations could be materially
affected by changes in these estimates brought about by the changes in factors mentioned.
As of December 31, 2018 and 2017, the Group’s biological assets carried at fair values less
estimated costs to sell amounted to P=1.1 billion and P
=1.7 billion, respectively (see Note 14). For
the years ended December 31, 2018 and 2017, the Group recognized changes in the fair value less
costs to sell of biological assets amounting to =
P467.5 million loss and =P118.8 million gain,
respectively. For the three-month period ended December 31, 2016, the Group recognized losses
from fair value changes of = P104.6 million (see Note 14). Changes in fair value of biological
assets are recognized in the consolidated statement of income.
d. Impairment of goodwill and intangible assets with indefinite useful lives

The Group performed its annual impairment test on its goodwill and other intangible assets with
indefinite useful lives as of reporting date. The recoverable amounts of the intangible assets were
determined based on value in use calculations using cash flow projections from financial budgets
approved by management covering a five-year period. The pre-tax discount rates applied to cash
flow projections range from 7.80% to 10.80% and 3.40% to 12.67% for the years ended
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December 31, 2018 and 2017, respectively. The following assumptions were also used in
computing value in use:
Growth rate estimates - growth rates include long-term and terminal growth rates that are based
on experiences and strategies developed for the various subsidiaries. The prospect for the
industry was also considered in estimating the growth rates.
Discount rates - discount rates were estimated based on the industry weighted average cost of
capital, which includes the cost of equity and debt after considering the gearing ratio.
Value-in-use is most sensitive to changes in discount rate and growth rate.
As of December 31, 2018 and 2017, the balance of the Group’s goodwill and intangible assets with
indefinite useful lives, net of accumulated depreciation, amortization and impairment loss follow:
2018 2017
Goodwill (Note 15) P
=31,194,495,817 =
P31,212,075,404
e. Assessment of impairment of nonfinancial assets

The Group assesses the impairment of its nonfinancial assets (i.e., property, plant and equipment,
investment properties, investment in joint venture and intangible assets with finite useful lives)
whenever events or changes in circumstances indicate that the carrying amount of an asset may
not be recoverable.
The factors that the Group considers important which could trigger an impairment review include
the following:
∂ Market interest rates or other market rates of return on investments have increased during the
period, and those increases are likely to affect the discount rate used in calculating the asset’s
value in use and decrease the asset’s recoverable amount materially;
∂ Significant underperformance relative to expected historical or projected future operating
results;
∂ Significant changes in the manner of use of the acquired assets or the strategy for overall
business; and
∂ Significant negative industry or economic trends.
The Group determines an impairment loss whenever the carrying amount of an asset exceeds its
recoverable amount, which is the higher of its fair value less costs to sell and its value in use.
The fair value less costs to sell calculation is based on available data from binding sales
transactions in an arm’s length transaction of similar assets or observable market prices less
incremental costs for disposing of the asset. The value in use calculation is based on a discounted
cash flow model. The cash flows are derived from the budget for the next five years and do not
include restructuring activities that the Group is not yet committed to or significant future
investments that will enhance the asset base of the cash-generating unit being tested. The
recoverable amount is most sensitive to the discount rate used for the discounted cash flow model
as well as the expected future cash inflows and the growth rate used for extrapolation purposes.
For the year ended December 31, 2018, the Group recognized impairment losses on its goodwill
and property, plant and equipment amounting to P
=17.6 million and =P1.7 million, respectively. No
impairment was recognized for its investment property and other intangibles. For the year ended
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December 31, 2017 and the three-month period ended December 31, 2016, the Group did not
recognize any impairment losses on its property, plant and equipment (see Note 13), investment
properties (Note 17), goodwill and its other intangible assets (see Note 15).
As of December 31, 2018 and 2017, the balances of the Group’s nonfinancial assets with finite
useful lives, excluding biological assets, net of accumulated depreciation, amortization and
impairment losses follow:
2018 2017
Property, plant and equipment (Note 13) P
=51,950,316,266 =
P48,254,128,303
Investment in joint ventures (Note 16) 520,917,509 552,226,288
Investment properties (Note 17) 36,384,879 45,288,139
f. Determination of the fair value of intangible assets and property, plant and equipment acquired
in a business combination
The Group measures the identifiable assets and liabilities acquired in a business combination at
fair value at the date of acquisition.
The fair value of the intangible assets acquired in a business combination is determined based on
the net sales forecast attributable to the intangible assets, growth rate estimates and royalty rates
using comparable license agreements. Royalty rates are based on the estimated arm’s length
royalty rate that would be paid for the use of the intangible assets. Growth rate estimate includes
long-term growth rate and terminal growth rate applied to future cash flows beyond the projection
period.
The fair value of property, plant and equipment acquired in a business combination is determined
based on comparable properties after adjustments for various factors such as location, size and
shape of the property. Cost information and current prices of comparable equipment are also
utilized to determine the fair value of equipment.
The Group’s acquisitions are discussed in Note 15 to the consolidated financial statements.
g. Estimation of pension and other benefits costs

The determination of the obligation and cost of pension and other employee benefits is dependent
on the selection of certain assumptions used in calculating such amounts. Those assumptions
include, among others, discount rates and salary increase rates (see Note 31). Actual results that
differ from the Group’s assumptions are accumulated and amortized over future periods and
therefore, generally affect the recognized expense and recorded obligation in such future periods.
The present value of the defined benefit obligation is determined by discounting the estimated
future cash outflows using interest rates of Philippine government bonds with terms consistent
with the expected employee benefit payout as of reporting date.
The mortality rate is based on publicly available mortality tables for the specific country and is
modified accordingly with estimates of mortality improvements. Future salary increases and
pension increases are based on expected future inflation rates for the specific country.
As of December 31, 2018 and 2017, the balance of the Group’s present value of defined benefit
obligations and other benefits is shown in Note 31 to the consolidated financial statements.
*SGVFS035342*
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h. Recognition of deferred income tax assets

The Group reviews the carrying amounts of its deferred income taxes at each reporting date and
reduces the deferred tax assets to the extent that it is no longer probable that sufficient taxable
income will be available to allow all or part of the deferred tax assets to be utilized. However,
there is no assurance that the Group will generate sufficient taxable income to allow all or part of
the deferred tax assets to be utilized.
As of December 31, 2018 and 2017, the Group recognized net deferred tax assets amounting to
=195.5 million and =
P P216.9 million, respectively (see Note 32), as the Group believes sufficient
taxable income will allow these deferred tax assets to be utilized.
Net deferred tax liabilities amounted to P

=4.2 billion and =
P4.3 billion as of December 31, 2018 and
2017, respectively (see Note 32).
As of December 31, 2018 and 2017, the Group has certain subsidiaries which are under ITH. As
such, no deferred tax assets were set up on certain gross deductible temporary differences that are
expected to reverse or expire within the ITH period (see Note 35).
The recognized and unrecognized deferred tax assets for the Group are disclosed in Note 32.
4. Financial Risk Management Objectives and Policies
The Group’s principal financial instruments, other than derivative financial instruments, comprise
cash and cash equivalents, financial assets at FVTPL, financial assets at FVOCI/AFS financial assets,
and interest-bearing loans and other borrowings. The main purpose of these financial instruments is
to finance the Group’s operations and related capital expenditures. The Group has various other
financial assets and financial liabilities, such as trade receivables and payables which arise directly
from its operations. One of the Group’s subsidiaries is a counterparty to derivative contracts. These
derivatives are entered into as a means of reducing or managing their respective foreign exchange and
interest rate exposures.
The BOD of the Parent Company and its subsidiaries review and approve policies for managing each
of these risks and they are summarized below, together with the related risk management structure.
Risk Management Structure

The Group’s risk management structure is closely aligned with that of the Ultimate Parent Company.
The BOD of the Parent Company and the respective BODs of each subsidiary are ultimately
responsible for the oversight of the Group’s risk management processes that involve identifying,
measuring, analyzing, monitoring and controlling risks.
The risk management framework encompasses environmental scanning, the identification and
assessment of business risks, development of risk management strategies, design and implementation
of risk management capabilities and appropriate responses, monitoring risks and risk management
performance, and identification of areas and opportunities for improvement in the risk management
process.
The BOD has created the board-level Audit Committee (AC) to spearhead the managing and
monitoring of risks.
AC
The AC shall assist the Group’s BOD in its fiduciary responsibility for the over-all effectiveness of
*SGVFS035342*
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risk management systems, and both the internal and external audit functions of the Group.
Furthermore, it is also the AC’s purpose to lead in the general evaluation and to provide assistance in
the continuous improvements of risk management, control and governance processes.
The AC also aims to ensure that:
a. financial reports comply with established internal policies and procedures, pertinent accounting
and auditing standards and other regulatory requirements;
b. risks are properly identified, evaluated and managed, specifically in the areas of managing credit,
market, liquidity, operational, legal and other risks, and crisis management;
c. audit activities of internal and external auditors are done based on plan and deviations are
explained through the performance of direct interface functions with the internal and external
auditors; and
d. the Group’s BOD is properly assisted in the development of policies that would enhance the risk
management and control systems.
Enterprise Risk Management Group (ERMG)

The ERMG was created to be primarily responsible for the execution of the enterprise risk
management framework. The ERMG’s main concerns include:
a. recommending risk policies, strategies, principles, framework and limits;

b. managing fundamental risk issues and monitoring of relevant risk decisions;
c. providing support to management in implementing the risk policies and strategies; and
d. developing a risk awareness program.
Corporate Governance Compliance Officer

Compliance with the principles of good corporate governance is also one of the primary objectives of
the BOD. To assist the BOD in achieving this purpose, the BOD has designated a Compliance
Officer who shall be responsible for monitoring the actual compliance with the provisions and
requirements of the Corporate Governance Manual and other requirements on good corporate
governance, identifying and monitoring control compliance risks, determining violations and
recommending penalties on such infringements for further review and approval of the BOD, among
others.
Day-to-day risk management functions

At the business unit or company level, the day-to-day risk management functions are handled by
four (4) different groups, namely:
a. Risk-taking personnel. This group includes line personnel who initiate and are directly
accountable for all risks taken.
b. Risk control and compliance. This group includes middle management personnel who perform
the day-to-day compliance check to approved risk policies and risk mitigation decisions.
c. Support. This group includes back office personnel who support the line personnel.
d. Risk management. This group pertains to the business unit’s Management Committee which
makes risk mitigating decisions within the enterprise-wide risk management framework.
Enterprise Resource Management (ERM) Framework

The Parent Company’s BOD is also responsible for establishing and maintaining a sound risk
management framework and is accountable for risks taken by the Parent Company. The Parent
Company’s BOD also shares the responsibility with the ERMG in promoting the risk awareness
program enterprise-wide.
*SGVFS035342*
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The ERM framework revolves around the following eight interrelated risk management approaches:
a. Internal Environmental Scanning. It involves the review of the overall prevailing risk profile of
the business unit to determine how risks are viewed and addressed by management. This is
presented during the strategic planning, annual budgeting and mid-year performance reviews of
the Group.
b. Objective Setting. The Group’s BOD mandates the business unit’s management to set the overall
annual targets through strategic planning activities, in order to ensure that management has a
process in place to set objectives which are aligned with the Group’s goals.
c. Event Identification. It identifies both internal and external events affecting the Group’s set
targets, distinguishing between risks and opportunities.
d. Risk Assessment. The identified risks are analyzed relative to the probability and severity of
potential loss which serves as a basis for determining how the risks should be managed. The
risks are further assessed as to which risks are controllable and uncontrollable, risks that require
management’s attention, and risks which may materially weaken the Group’s earnings and
capital.
e. Risk Response. The Group’s BOD, through the oversight role of the ERMG, approves the
business unit’s responses to mitigate risks, either to avoid, self-insure, reduce, transfer or share
risk.
f. Control Activities. Policies and procedures are established and approved by the Group’s BOD
and implemented to ensure that the risk responses are effectively carried out enterprise-wide.
g. Information and Communication. Relevant risk management information are identified, captured
and communicated in form and substance that enable all personnel to perform their risk
management roles.
h. Monitoring. The ERMG, Internal Audit Group, Compliance Office and Business Assessment
Team constantly monitor the management of risks through risk limits, audit reviews, compliance
checks, revalidation of risk strategies and performance reviews.
Risk management support groups

The Group’s BOD created the following departments within the Group to support the risk
management activities of the Parent Company and the other business units:
a. Corporate Security and Safety Board (CSSB). Under the supervision of ERMG, the CSSB
administers enterprise-wide policies affecting physical security of assets exposed to various forms
of risks.
b. Corporate Supplier Accreditation Team (CORPSAT). Under the supervision of ERMG, the
CORPSAT administers enterprise-wide procurement policies to ensure availability of supplies
and services of high quality and standards to all business units.
c. Corporate Management Services (CMS). The CMS is responsible for the formulation of
enterprise-wide policies and procedures.
d. Corporate Planning (CORPLAN). The CORPLAN is responsible for the administration of
strategic planning, budgeting and performance review processes of business units.
e. Corporate Insurance Department (CID). The CID is responsible for the administration of the
insurance program of business units concerning property, public liability, business
interruption, money and fidelity, and employer compensation insurances, as well as, in the
procurement of performance bonds.
*SGVFS035342*
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Risk Management Policies

The main risks arising from the use of financial instruments are credit risk, liquidity risk and market
risks such as foreign currency risk, equity price risk and interest rate risk. The Group’s policies for
managing the aforementioned risks are summarized below.
Credit risk
Credit risk is the risk that one party to a financial instrument will fail to discharge an obligation and
cause the other party to incur a financial loss. The Group trades only with recognized and
creditworthy third parties. It is the Group’s policy that all customers who wish to trade on credit
terms are subject to credit verification procedures. The Credit Management Division (CMD) of the
Group continuously provides credit notification and implements various credit actions, depending on
assessed risks, to minimize credit exposure. Receivable balances of trade customers are being
monitored on a regular basis and appropriate credit treatments are executed for overdue accounts.
Likewise, other receivable balances are also being monitored and subjected to appropriate actions to
manage credit risk.
With respect to credit risk arising from the other financial assets of the Group, which comprise cash
and cash equivalents, financial assets at FVTPL, financial assets at FVOCI/AFS financial assets and
certain derivative financial instruments, the Group’s exposure to credit risk arises from default of the
counterparty with a maximum exposure equal to the carrying amount of these instruments.
a. Credit risk exposure
With respect to credit risk arising from financial assets of the Group, which comprise cash and
cash equivalents, receivables, financial assets at FVTPL and financial assets at FVOCI/AFS
financial assets, the Group’s maximum exposure to credit risk is equal to its carrying amount as
of December 31, 2018 and 2017, except for the Group’s trade receivables as of as of
December 31, 2018 and 2017 with carrying value of P =12.1 billion and =P13.7 billion, respectively,
and collateral with fair value amounting to P =2.8 billion as of both dates, resulting to net exposure
of =
P9.3 billion and =P10.9 billion, respectively.
The collateral securities related to the Group’s trade receivables consist of standby letters of
credit. The Group holds no other collateral or guarantee that would reduce the maximum
exposure to credit risk.
b. Risk concentrations of the maximum exposure to credit risk
Concentrations arise when a number of counterparties are engaged in similar business activities
or activities in the same geographic region or have similar economic features that would cause
their ability to meet contractual obligations to be similarly affected by changes in economic,
political or other conditions. Concentrations indicate the relative sensitivity of the Group’s
performance to developments affecting a particular industry or geographical location. Such credit
risk concentrations, if not properly managed, may cause significant losses that could threaten the
Group's financial strength and undermine public confidence.
In order to avoid excessive concentrations of risk, identified concentrations of credit risks are
controlled and managed accordingly.
*SGVFS035342*
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i. Concentration by geographical location
The Group’s credit risk exposures as of December 31, 2018 and 2017 before taking into
account any collateral held or other credit enhancements are categorized by geographic
location follows:
2018
Philippines Asia New Zealand Australia United States Others Total
Amortized cost:
Cash and cash equivalents*
(Note 7) =6,778,173,501
P =3,485,633,654
P = 1,518,874,359 P
P =1,164,705,153 =–
P =– P
P =12,947,386,667
Receivables (Note 10):
Trade receivables 4,092,400,288 4,919,980,265 1,110,640,137 1,900,543,956 20,255,518 40,568,500 12,084,388,664
Due from related
parties 716,143,819 129,657,810 – – – – 845,801,629
Advances to officers
and employees 130,111,597 15,033,683 – – – – 145,145,280
Interest receivable 9,690,349 – – – – – 9,690,349
Non-trade and other
receivables 1,097,107,751 205,845,576 17,344,722 – – – 1,320,298,049
Total financial assets at
amortized cost 12,823,627,305 8,756,150,988 2,646,859,218 3,065,249,109 20,255,518 40,568,500 27,352,710,638
Financial assets at FVTPL:
Equity securities (Note 8) 420,153,416 – – – – – 420,153,416
Derivative assets designated as
accounting hedge (Note 12) – – 6,389,048 – – – 6,389,048
Financial assets at FVOCI:
Equity securities (Note 17) 50,300,000 – – – – – 50,300,000
= 13,294,080,721
P =8,756,150,988
P =2,653,248,266 P
P =3,065,249,109 =20,255,518
P =40,568,500 P
P = 27,829,553,102
* Excludes cash on hand
2017
Philippines Asia New Zealand Australia United States Others Total
Loans and receivables:
Cash and cash equivalents*
(Note 7) =8,349,277,554
P =3,496,585,008
P =1,442,324,015
P =1,106,004,723
P =–
P =−
P =14,394,191,300
P
Trade receivables 6,214,144,707 4,548,383,778 1,069,665,700 1,804,757,697 21,092,431 25,609,047 13,683,653,360
Due from related
parties 309,779,040 611,414,576 − − − 475,046,014 1,396,239,630
Advances to officers
and employees 99,243,981 15,086,141 − − − − 114,330,122
Interest receivable 42,299,508 − − − − − 42,299,508
Non-trade and other
receivables 742,625,821 120,874,339 16,470,559 − − − 879,970,719
Total loans and receivable 15,757,370,611 8,792,343,842 2,528,460,274 2,910,762,420 21,092,431 500,655,061 30,510,684,639
Financial assets at FVPL:
Equity securities (Note 8) 455,577,705 − − − − − 455,577,705
accounting hedge (Note 12) − − 11,023,146 − − − 11,023,146
AFS financial assets:
Equity securities (Note 17) 45,980,000 − − − − − 45,980,000
=16,258,928,316
P =8,792,343,842
P =2,539,483,420
P =2,910,762,420
P =21,092,431
P =500,655,061
P =31,023,265,490
P
* Excludes cash on hand
*SGVFS035342*
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ii. Concentration by industry
The tables below show the industry sector analysis of the Group’s financial assets as of
December 31, 2018 and 2017 before taking into account any collateral held or other credit
enhancements.
2018
Financial Tele-
Manufacturing Intermediaries Petrochemicals Communication Others* Total
Amortized cost:
Cash and cash equivalents**
(Note 7) =–
P =12,947,386,667
P =–
P =–
P =–
P =12,947,386,667
P
Trade receivables 11,791,998,739 – 316,057 – 292,073,868 12,084,388,664
Due from related parties 44,910,646 28,646,754 – – 772,244,229 845,801,629
Advances to officers and
employees 125,797,555 – – – 19,347,725 145,145,280
Interest receivable – 9,690,349 – – – 9,690,349
Non-trade and other receivables 1,068,474,296 21,576,156 7,884,799 19,046,448 203,316,350 1,320,298,049
Total financial assets at amortized cost 13,031,181,236 13,007,299,926 8,200,856 19,046,448 1,286,982,172 27,352,710,638
Financial assets at FVTPL:
Equity securities (Note 8) – – – – 420,153,416 420,153,416
Derivative assets designated as accounting
hedge (Note 12) 6,389,048 – – – – 6,389,048
Equity securities (Note 17) – – – – 50,300,000 50,300,000
=13,037,570,284
P =13,007,299,926
P =8,200,856
P =19,046,448
P =1,757,435,588
P =27,829,548,6122
P
*Includes real estate, agriculture, automotive, mining and electrical industries.
**Excludes cash on hand
2017
Financial Tele-
Manufacturing Intermediaries Petrochemicals Communication Others* Total
Cash and cash equivalents**
(Note 7) =−
P =14,394,191,300
P =−
P =−
P =−
P =14,394,191,300
P
Trade receivables 13,394,985,650 − , − 288,667,710 13,683,653,360
Due from related parties 585,335,992 39,861,018 − − 771,042,620 1,396,239,630
employees 88,505,126 − − − 25,824,996 114,330,122
Interest receivable 35,189,797 7,109,711 − − − 42,299,508
Non-trade and other receivables 534,611,441 30,477,362 12,221,888 19,548,753 283,111,275 879,970,719
Total loans and receivables 14,638,628,006 14,471,639,391 12,221,888 19,548,753 1,368,646,601 30,510,684,639
Financial assets at FVPL:
Equity securities (Note 8) − − − − 455,577,705 455,577,705
Derivative assets designated as accounting
hedge (Note 12) 11,023,146 − − − − 11,023,146
Equity securities (Note 17) − − − − 45,980,000 45,980,000
=14,649,651,152
P =14,471,639,391
P =12,221,888
P =19,548,753
P =1,870,204,306
P =31,023,265,490
P
*Includes real state, agriculture, automotive, mining and electrical industries.
**Excludes cash on hand
c. Credit quality per class of financial assets
The tables below show the credit quality by class of financial assets as of December 31, 2018 and
2017, gross of allowance for credit losses:
2018
Neither Past Due Nor Impaired Past Due or
Substandard Individually
High Grade Standard Grade Grade Impaired Total
Amortized cost:
Cash and cash equivalents* (Note 7) P
=12,947,386,667 P
=− P
=− P
=− P
=12,947,386,667
Trade receivables 9,501,989,205 − − 2,728,573,462 12,230,562,667
Due from related parties 845,801,629 − − − 845,801,629
Advances to officers and employees 12,472,463 36,386,918 7,194,732 108,737,849 164,791,962
Interest receivable 9,541,911 148,438 9,690,349
Non-trade and other receivables 737,541,761 303,517,633 − 468,562,349 1,509,621,743
Total financial assets at amortized cost 24,054,733,636 339,904,551 7,194,732 3,306,022,098 27,707,855,017
Financial assets at FVTPL (Note 8):
Equity securities 420,153,416 − − − 420,153,416
Derivative assets designated as accounting hedge
(Note 12) 6,389,048 − − − 6,389,048
Equity securities (Note 17) 50,300,000 − − − 50,300,000
P
=24,531,576,100 P
=339,904,551 P
=7,194,732 P
=3,306,022,098 P
=28,184,697,481
*Excludes cash on hand
*SGVFS035342*
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2017
Neither Past Due Nor Impaired Past Due or
Substandard Individually
High Grade Standard Grade Grade Impaired Total
Cash and cash equivalents* (Note 7) =
P14,394,191,300 =
P− =
P− =
P− =
P14,394,191,300
Trade receivables 11,564,013,104 − − 2,287,192,070 13,851,205,174
Due from related parties 1,396,239,630 − − − 1,396,239,630
Advances to officers and employees 12,140,446 89,948,384 1,253,952 30,634,022 133,976,804
Interest receivable 7,109,711 – – 35,189,797 42,299,508
Non-trade and other receivables 458,963,605 126,302,166 – 484,028,642 1,069,294,413
Total loans and receivables 27,832,657,796 216,250,550 1,253,952 2,837,044,531 30,887,206,829
Financial assets at FVPL (Note 8):
Equity securities 455,577,705 − − − 455,577,705
Derivative assets designated as accounting hedge
(Note 12) 11,023,146 − − − 11,023,146
Equity securities (Note 17) 45,980,000 − − − 45,980,000
=28,345,238,647
P =216,250,550
P =1,253,952
P =2,837,044,531
P =31,399,787,680
P
*Excludes cash on hand
High grade cash and cash equivalents are short-term placements and working cash fund placed,
invested, or deposited in foreign and local banks belonging to the top ten (10) banks, including an
affiliated bank, in the Philippines in terms of resources and profitability.
Other high grade accounts are accounts considered to be high value. The counterparties have a
very remote likelihood of default and have consistently exhibited good paying habits.
Standard grade accounts are active accounts with minimal to regular instances of payment
default, due to ordinary/common collection issues. These accounts are typically not impaired as
the counterparties generally respond to credit actions and update their payments accordingly.
Substandard grade accounts are accounts which have probability of impairment based on
historical trend. These accounts show propensity to default in payment despite regular follow-up
actions and extended payment terms.
d. Aging analysis
An aging analysis of the Group’s past due or individually impaired receivables as of

December 31, 2018 and 2017 are as follows:
2018
Past Due But Not Impaired Impaired
Less than 30 to 60 60 to 90 Over 90 Financial
30 Days Days Days Days Assets Total
Trade receivables P
= 1,696,079,869 P
= 204,326,180 P
= 116,597,861 P
= 565,395,549 P
= 146,174,003 P
= 2,728,573,462
Advances to officers and employees 3,788,295 130,182 1,659,548 83,513,142 19,646,682 108,737,849
Others 231,517,066 6,950,793 2,038,714 38,880,520 189,323,694 468,710,787
Balances at end of year P
= 1,931,385,230 P
= 211,407,155 P
= 120,296,123 P
= 687,789,211 P
= 355,144,379 P
= 3,306,022,098
2017
Past Due But Not Impaired Impaired
Less than 30 to 60 60 to 90 Over 90 Financial
30 Days Days Days Days Assets Total
Trade receivables =1,276,951,666
P =184,160,218
P =43,328,542
P =615,199,830
P =167,551,814 =
P P2,287,192,070
Advances to officers and employees 2,209,641 385,001 1,604,516 6,788,182 19,646,682 30,634,022
Others 248,823,866 3,790,310 3,531,426 73,749,143 189,323,694 519,218,439
Balances at end of year =1,527,985,173
P =188,335,529
P =48,464,484
P =695,737,155
P =376,522,190 P
P =2,837,044,531
*SGVFS035342*
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Liquidity risk
Liquidity risk is the risk of not being able to meet funding obligation such as the repayment of
liabilities or payment of asset purchases as they fall due. The Group’s liquidity management involves
maintaining funding capacity to finance capital expenditures and service maturing debts, and to
accommodate any fluctuations in asset and liability levels due to changes in the Group’s business
operations or unanticipated events created by customer behavior or capital market conditions. The
Group maintains a level of cash and cash equivalents deemed sufficient to finance its operations. It
also maintains a portfolio of highly marketable and diverse financial assets that assumed to be easily
liquidated in the event of an unforeseen interruption of cash flow. The Group also has committed
lines of credit that it can access to meet liquidity needs. As part of its liquidity risk management, the
Group regularly evaluates its projected and actual cash flows. It also continuously assesses
conditions in the financial markets for opportunities to pursue fund raising activities. Fund raising
activities may include obtaining bank loans and capital market issues both onshore and offshore.
Maturity Profile of Financial Liabilities

The tables below summarize the maturity profile of the Group’s financial liabilities as of
December 31, 2018 and 2017 based on the remaining undiscounted contractual cash flows.
2018
1 to 3 3 to 12 1 to 5
On Demand Months Months Years Total
Financial liabilities at amortized cost:
Accounts payable and other accrued
liabilities:
Trade payable and accrued
expenses** P
= 7,555,767,195 P
= 14,483,455,869 P
= 389,153,647 =
P− P
= 22,428,376,711
Due to related parties 164,624,582 − − − 164,624,582
Short-term debts* − 2,464,651,336 − − 2,464,651,336
Trust receipts payable* − 6,038,711,014 − − 6,038,711,014
Long-term debts* − 261,685,556 785,056,667 34,675,088,951 35,721,831,174
P
= 7,720,391,777 P
= 23,248,503,775 P
= 1,174,210,314 P
= 34,675,088,951 P
= 66,818,194,817
*Includes future interest
**Excludes statutory liabilities
2017
1 to 3 3 to 12 1 to 5
On Demand Months Months Years Total
Financial liabilities at amortized cost:
Accounts payable and other accrued
liabilities:
Trade payable and accrued
expenses** =7,130,314,295
P =13,051,428,395
P =419,532,782
P P−
= =20,601,275,472
P
Due to related parties 106,452,798 − − − 106,452,798
Short-term debts* − − 2,010,859,525 − 2,010,859,525
Trust receipts payable* − 3,158,622,472 − − 3,158,622,472
Long-term debts* − 277,235,968 831,707,904 35,707,074,219 36,816,018,091
=7,236,767,093
P =16,487,286,835
P =3,262,100,211
P =35,707,074,219
P =62,693,228,358
P
*Includes future interest
**Excludes statutory liabilities
Market risk
Market risk is the risk of loss to future earnings, to fair value or future cash flows of a financial
instrument as a result of changes in its price, in turn caused by changes in interest rates, foreign
currency exchange rates, equity prices and other market factors.
Foreign currency risk

Foreign currency risk arises on financial instruments that are denominated in a foreign currency other
than the functional currency in which they are measured.
The Group has transactional currency exposures. Such exposures arise from sales and purchases in
currencies other than the entities’ functional currency. For the years ended December 31, 2018 and
2017, and the three-month period ended December 31, 2016, approximately 34.8%, 34.3% and 34.2%
of the Group’s total sales, respectively, are denominated in currencies other than the functional
*SGVFS035342*
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currency. In addition, 3.0% and 4.3% of the Group’s debt is denominated in US Dollars as of
December 31, 2018 and 2017, respectively.
The Group estimates a reasonably possible change of +5.00 in the US Dollar to Philippine Peso
exchange rate would have an impact of approximately P=81.4 million and =
P161.3 million on income
before income tax for the years ended December 31, 2018 and 2017, respectively. An equal change
in the opposite direction would have decreased income before income tax by the same amount.
The impact of the range of reasonably possible changes in the exchange rates of the other currencies
against the Philippine Peso on the Group’s income before income tax as of December 31, 2018 and
2017 are deemed immaterial.
The exchange rates used to restate the US dollar-denominated financial assets and liabilities were
=52.58 to US$1.00 and =
P P49.93 to US$1.00 as of December 31, 2018 and 2017, respectively.
Equity price risk

Equity price risk is the risk that the fair values of equities will change as a result of changes in the
levels of equity indices and the value of individual stocks.
The table below shows the effect on equity as a result of a change in the fair value of equity
instruments held as financial assets at FVPL investments due to reasonably possible changes in equity
indices:
2018 2017
Changes in PSEi 21.20% (21.20%) 12.33% (12.33%)
Change in trading gain (loss) at equity portfolio P
= 59,232,482 (P
= 59,232,482) P
=21,906,081 (P
=21,906,081)
As a percentage of the Parent Company’s trading
gain for the year (59.81%) 59.81% (324.18%) 324.18%
The Group’s investment in golf shares designated as financial assets at FVOCI/AFS financial assets
are susceptible to market price risk arising from uncertainties about future values of the investment
security. The Group’s estimates an increase of 1.00% would have an impact of approximately
=0.5 million on equity for the year ended December 31, 2018 and 2017. An equal change in the
P
opposite direction would have decreased equity by the same amount.
Interest rate risk

The Group’s exposure to market risk for changes in interest rates relates primarily to the subsidiaries’
long-term debt obligations which are subject to floating rate. The Group’s policy is to manage its
interest cost using a mix of fixed and variable rate debt.
*SGVFS035342*
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The following tables show information about the Group’s financial instruments that are exposed to interest rate risk and presented by maturity profile:
2018
Debt
Issuance
Total Costs Carrying Value
(in Philippine (in Philippine (in Philippine
<1 year >1-<2 years >2-<3 years >3-<4 years >4-<5 years Total Peso) Peso) Peso)
Liabilities:
Foreign currencies:
Floating rate
Australian Dollar loan AU$13,625,723 AU$13,700,180 AU$494,387,449 AU$– AU$– AU$521,713,352 P
= 17,922,355,336 P
= 179,697,514 P
= 17,742,657,822
Interest rate:
BBSY Bid+1.25%
New Zealand Dollar loans NZ$12,753,563 NZ$12,580,750 NZ$12,649,875 NZ$12,615,313 NZ$407,511,625 NZ$458,111,126 13,924,974,927 210,508,867 13,714,466,060
Interest rate:
NZ BKBM+1.10%
P
= 31,847,330,263 P
= 390,206,381 P
= 31,457,123,882
2017
Debt
Total Issuance Costs Carrying Value
(in Philippine (in Philippine (in Philippine
<1 year >1-<2 years >2-<3 years >3-<4 years >4-<5 years Total Peso) Peso) Peso)
Liabilities:
Foreign currencies:
Floating rate
Australian Dollar loan AU$13,251,758 AU$13,179,542 AU$13,215,650 AU$494,081,575 AU$, AU$533,728,525 P
=18,772,656,535 P
=250,622,686 P
=18,522,033,849
Interest rate:
BBSY Bid+1.25%
New Zealand Dollar loans NZ$16,205,992 NZ$435,180,958 NZ$, NZ$, NZ$, NZ$451,386,950 14,808,699,804 104,771,265 14,703,928,539
Interest rate:
NZ BKBM+1.60%
=33,581,356,339
P =355,393,951
P =33,225,962,388
P
*SGVFS035342*
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The following table demonstrates the sensitivity to a reasonably possible change in interest rates on
the long-term debts. With all other variables held constant, the Group’s income before tax is affected
through the impact on floating rate borrowings, as follows:
Effect on income
Change in basis points before tax
2018 +100 (P
= 320,970,394)
-100 320,970,394
2017 +100 (P
=323,797,776)
-100 323,797,776
5. Fair Value Measurement
The following methods and assumptions were used to estimate the fair value of each asset and
liability for which it is practicable to estimate such value:
Cash and cash equivalents, receivables (except amounts due from and due to related parties),
accounts payable and other accrued liabilities, short-term debts and trust receipts payable.
Carrying amounts approximate their fair values due to the relatively short-term maturities of these
instruments.
Amounts due from and due to related parties

Carrying amounts of due from and due to related parties which are payable and due on demand
approximate their fair values.
Financial assets at FVTPL, derivatives and financial assets at FVOCI/AFS investments

Fair values of quoted equity securities are based on quoted prices published in markets.
Biological assets
Biological assets are measured at their fair values less costs to sell. The fair values of Level 2
biological assets are determined based on current market prices of livestock of similar age, breed and
genetic merit while Level 3 are determined based on adjusted commercial farmgate prices. Costs to
sell include commissions to brokers and dealers, nonrefundable transfer taxes and duties. Costs to
sell exclude transport and other costs necessary to get the biological assets to the market.
The Group has determined that the highest and best use of the sucklings and weanlings is finishers
while for other biological assets is their current use.
Investment properties
Fair value of investment properties is based on market data (or direct sales comparison) approach.
This approach relies on the comparison of recent sale transactions or offerings of similar properties
which have occurred and/or offered with close proximity to the subject property.
The fair values of the Group’s investment properties have been determined by appraisers in 2017,
including independent external appraisers, on the basis of the recent sales of similar properties in the
same areas as the investment properties and taking into account the economic conditions prevailing at
the time of the valuations are made.
The Group has determined that the highest and best use of the property used for the land and building
is its current use.
Long-term debts
*SGVFS035342*
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The fair value of long-term debts are based on the discounted value of future cash flows (interests and
principal) using market rates plus a certain spread.
Fair Value Measurement Hierarchy for Assets and Liabilities
December 31, 2018

Carrying Value Level 1 Level 2 Level 3 Total Fairvalue
Assets measured at fair value
Financial assets
Financial assets at FVTPL
(Note 8):
Quoted equity securities P
= 420,153,416 P
= 420,153,416 P
=− P
=− P
= 420,153,416
accounting hedge (Note 12) 6,389,048 6,389,048 − − 6,389,048
Financial assets at FVOCI
Quoted equity securities
(Note 17) 50,300,000 − 50,300,000 − 50,300,000
P
= 476,842,464 P
= 426,542,464 P
= 50,300,000 P
=− P
= 476,842,464
Non-financial assets
Biological assets (Note 14) P
= 1,107,904,051 P
=− P
= 137,522,046 P
= 970,382,005 P
= 1,107,904,051
Assets for which fair values are
disclosed
(Note 17) P
= 36,384,879 P
=− P
=− P
= 324,572,000 P
= 324,572,000
Liabilities for which fair values
are disclosed
Long-term debts (Note 20) P
= 31,457,123,882 P
=− P
=− P
= 31,585,901,825 P
= 31,585,901,825
December 31, 2017

Carrying Value Level 1 Level 2 Level 3 Total Fair value
Assets measured at fair value
Financial assets
Financial assets at FVPL (Note 8):
Quoted equity securities P
=455,577,705 P
=455,577,705 =
P− =
P− P
=455,577,705
accounting hedge (Note 12) 11,023,146 11,023,146 − − 11,023,146
Quoted equity securities
(Note 17) 45,980,000 − 45,980,000 − 45,980,000
P
=512,580,851 P
=466,600,851 P
=45,980,000 =
P− P
=512,580,851
Non-financial assets
Biological assets (Note 14) P
=1,678,576,389 =
P− P
=477,232,582 P
=1,201,343,807 P
=1,678,576,389
Assets for which fair values are
disclosed
(Note 17) =45,288,139
P =–
P =–
P =337,579,000
P =337,579,000
P
Liabilities for which fair values
are disclosed
=33,225,962,388 =
P– =
P− P
=33,402,588,509 P
=33,402,588,509
For the years ended December 31, 2018 and 2017, there were no transfers between Level 1 and
Level 2 fair value measurements. Non-financial assets determined under Level 3 include investment
properties and biological assets. No transfers between any level of the fair value hierarchy took place
in the equivalent comparative period.
*SGVFS035342*
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Descriptions of significant unobservable inputs to valuation of biological assets and investment

properties under level 3 of the fair value category follow:
Significant Unobservable
Account Valuation Technique Inputs
Biological assets Adjusted commercial farmgate Commercial farmgate prices
prices
Investment properties Market data approach and Price per square meter, size,
Cost approach shape, location, time element,
replacement cost and
depreciation for improvements
Significant increases (decreases) in reasonable profit margin applied would result in a significantly
higher (lower) fair value of the biological assets.
Significant unobservable inputs
Size Size of lot in terms of area. Evaluate if the lot size of property
or comparable conforms to the average cut of the lots in the area
and estimate the impact of the lot size differences on land value.
Shape Particular form or configuration of the lot. A highly irregular
shape limits the usable area whereas an ideal lot configuration
maximizes the usable area of the lot which is associated in
designing an improvement which conforms with the highest and
best use of the property.
Location Location of comparative properties whether on a main road, or
secondary road. Road width could also be a consideration if
data is available. As a rule, properties located along a main
road are superior to properties located along a secondary road.
Time element An adjustment for market conditions is made if general property
values have appreciated or depreciated since the transaction
dates due to inflation or deflation or a change in investor’s
perceptions of the market over time. In which case, the current
data is superior to historic data.
Replacement cost Estimated amount of money needed to replace in like kind and
in new condition an asset or group of assets, taking into
consideration current prices of materials, labor, contractor’s
overhead, profit and fees, and all other attendant costs
associated with its acquisition and installation in place without
provision for overtime or bonuses for labor, and premiums for
materials.
Depreciation Depreciation as evidenced by the observed condition in
comparison with new units of like kind tempered by
consideration given to extent, character, and utility of the
property which is to be continued in its present use as part of a
going concern but without specific relations to earnings.
Adjusted commercial Fair value based on commercial farmgate prices, adjusted by
farmgate prices considering the age, breed and genetic merit
*SGVFS035342*
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6. Business Segment Information
The Group’s operating segments are organized and managed separately according to the nature of the
products and services provided, with each segment representing a strategic business unit that offers
different products and serves different markets. The Group has four (4) reportable operating
segments as follows:
∂ The branded consumer food products segment manufactures and distributes a diverse mix of salty
snacks, chocolates, candies, biscuits, bakery products, beverages, instant noodles and pasta. This
segment also includes the packaging division, which manufactures BOPP films primarily used in
packaging; and its subsidiary, which manufactures flexible packaging materials for the packaging
requirements of various branded food products. Its revenues are in their peak during the opening
of classes in June and Christmas season.
∂ The agro-industrial products segment engages in hog and poultry farming, manufacturing and
distribution of animal feeds, glucose and soya products, and production and distribution of animal
health products. Its peak season is during summer and before Christmas season.
∂ The commodity food products segment engages in sugar milling and refining, and flour milling
and pasta manufacturing and renewable energy. The peak season for sugar is during its crop
season, which normally starts in November and ends in April while flour and pasta’s peak season
is before and during the Christmas season.
∂ The corporate business segment engages in bonds and securities investment and fund sourcing
activities.
No operating segments have been aggregated to form the above reportable operating business
segments.
Management monitors the operating results of business segments separately for the purpose of
making decisions about resource allocation and performance assessment. The measure presented to
manage segment performance is the segment operating income (loss). Segment operating income
(loss) is based on the same accounting policies as consolidated operating income (loss) except that
intersegment revenues are eliminated only at the consolidation level. Group financing (including
finance costs and revenues), market valuation gain and loss, foreign exchange gains or losses, other
revenues and expenses and income taxes are managed on a group basis and are not allocated to
operating segments. Transfer prices between operating segments are on an arm’s length basis in a
manner similar to transactions with third parties.
The following tables present the financial information of each of the operating segments in
accordance with PFRSs except for Earnings before interest, income taxes and depreciation/
amortization (EBITDA) and Earnings before interest and income taxes (EBIT) as of and for the years
ended December 31, 2018 and 2017, and the three-month period ended December 31, 2016.
*SGVFS035342*
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The Group’s business segment information follows (amounts in thousands):
As of and for the year ended December 31, 2018

Branded Commodity Corporate
Consumer Food Agro-Industrial Food Business Eliminations Total
Sale of Goods and Services
Third party P
=102,537,877 P
=11,693,453 P
=13,538,619 P
=– P
=– P
=127,769,949
Inter-segment 17,266,362 63,901 5,353,541 – (22,683,804) –
P
=119,804,239 P
=11,757,354 P
=18,892,160 P
=– (P
= 22,683,804) P
=127,769,949
Result
Earnings before interest, income taxes and depreciation/amortization (EBITDA) P
=15,674,743 P
=1,237,539 P
=4,487,433 (P
=1,649,326) P
=– P
=19,750,389
Depreciation and amortization (Note 27) (4,756,491) (419,526) (948,368) (245,391) – (6,369,776)
Earnings before interest and income tax (EBIT) P
=10,918,252 P
=818,013 P
=3,539,065 (P
= 1,894,717) P
=– 13,380,613
Finance revenue (Note 29) P
=208,796 P
=102 P
=23,931 P
=126,452 P
=– 359,281
Finance costs (Note 30) (P
= 1,419,134) (P
= 66,536) (P
= 84,784) (P
= 91,246) P
=– (1,661,700)
Equity in net loss of joint ventures (Note 16) P
=– P
=– P
=– (P
= 132,408) P
=– (132,408)
Market valuation gain on financial assets and liabilities at FVTPL (Note 8) P
=– P
=– P
=– (P
= 35,424) P
=– (35,424)
Provision for credit and impairment losses (Notes 10, 11 and 15) (P
= 45,002) P
=– P
=– P
=– P
=– (45,002)
Other expenses* (320,480)
Income before income tax 11,544,880
Provision for income tax (Note 32) (2,082,094)
Net income P
=9,462,786
Other Information
Total assets P
=117,089,788 P
=7,846,913 P
=21,713,667 P
=5,285,345 P
=– P
=151,935,713
Total liabilities P
=59,813,702 P
=4,598,732 P
=5,882,522 (P
= 2,352,722) P
=– P
=67,942,234
Capital expenditures P
=5,468,991 P
=696,640 P
=2,191,679 P
=284,420 P
=– P
=8,641,730
Non-cash expenses other than depreciation and amortization:
Credit and impairment losses on:
Receivables (Note 10) (P
= 17,774) P
=– P
= P
=– P
=– (P
= 17,774)
Property, plant and equipment (1,700) – – – – (1,700)
Goodwill (Note 15) (17,580) – – – – (17,580)
Inventories (Note 11) (7,948) – – – – (7,948)
(P
= 45,002) P
=– P
=– P
=– P
=– (P
= 45,002)
* Include net foreign exchange losses and other revenues (expenses).
*SGVFS035342*
- 120 -

Third party =103,095,968
P =10,110,653
P =11,801,203
P P−
= =−
P =125,007,824
P
Inter-segment 15,303,639 122,304 6,189,868 − (21,615,811) −
=118,399,607
P =10,232,957
P =17,991,071
P =−
P (P
=21,615,811) =125,007,824
P
Result
Earnings before interest, income taxes and depreciation/amortization (EBITDA) =16,608,493
P =2,178,990
P P3,930,971
= (P
=1,662,224) P−
= =21,056,230
P
Depreciation and amortization (Note 27) (4,480,403) (398,721) (1,014,338) (210,601) − (6,104,063)
Earnings before interest and income tax (EBIT) =12,128,090
P =1,780,269
P =2,916,633
P (P
=1,872,825) =−
P 14,952,167
Finance revenue (Note 29) =108,162
P =179
P =11,469
P =105,773
P =−
P 225,583
=1,298,675) (P
=44,056) (P
=51,249) (P
=33,350) =−
P (1,427,330)
Equity in net loss of joint ventures (Note 16) =−
P =−
P =−
P (P
=280,533) =−
P (280,533)
Market valuation gain on financial assets and liabilities at FVPL (Note 8) =−
P =−
P =−
P =71,016
P =−
P 71,016
Provision for credit and impairment losses (Notes 10 and 11) (P
=21,423) =−
P =−
P =−
P =−
P (21,423)
Other expenses* 430,927
Provision for income tax (Note 32) (2,797,486)
Net income =11,152,921
P
Other Information
Total assets P112,007,686
= P6,558,891
= P18,536,399
= P10,537,823
= =
P− P147,640,799
=
Total liabilities =57,021,889
P =3,225,428
P =4,420,186
P =1,287,284
P =−
P =65,954,787
P
Capital expenditures =4,436,763
P =761,141
P =2,630,024
P =301,744
P =
P− =8,129,672
P
Receivables (Note 10) (P
=18,553) P−
= P−
= P−
= P−
= (P
=18,553)
Inventories (Note 11) (2,870) − − − − (2,870)
(P
=21,423) =−
P =−
P =−
P =−
P (P
=21,423)
* Include net foreign exchange losses and other revenues (expenses).
*SGVFS035342*
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As of and for the three-month period ended December 31, 2016

Third party =25,725,086
P =2,373,929
P P2,841,223
= P−
= =−
P =30,940,238
P
Inter-segment 3,958,902 30,504 1,535,214 − (5,524,620) −
=29,683,988
P =2,404,433
P =4,376,437
P =−
P (P
=5,524,620) =30,940,238
P
Result
Earnings before interest, income taxes and depreciation/amortization (EBITDA) P4,565,914
= P284,008
= =1,176,762
P (P
=433,796) P−
= P5,592,888
=
Depreciation and amortization (Note 27) (1,092,811) (101,319) (256,427) (56,361) − (1,506,918)
Earnings before interest and income tax (EBIT) =3,473,103
P =182,689
P =920,335
P (P
= 490,157) =−
P 4,085,970
Finance revenue (Note 29) =17,690
P =65
P =16
P =32,177
P =−
P 49,948
=316,702) (P
=7,809) (P
=10,305) (P
=3,775) =−
P (338,591)
Equity in net loss of joint ventures (Note 16) =−
P =−
P =−
P (P
=49,412) =−
P (49,412)
Market valuation gain on financial assets and liabilities at FVPL (Note 8) =−
P =−
P =−
P (P
=4,515) =−
P (4,515)
Provision for credit and impairment losses (Notes 10 and 11) (P
=2,773) =−
P =−
P =−
P =−
P (2,773)
Other expenses (523,514)
Provision for income tax (Note 32) (767,495)
Net income =2,449,618
P
Other Information
Total assets P107,420,050
= P5,484,690
= P16,888,975
= P12,871,692
= =
P− P142,665,407
=
Total liabilities =54,849,692
P =3,528,691
P =4,192,196
P =1,245,573
P =−
P =63,816,152
P
Capital expenditures =1,752,007
P =105,356
P =245,653
P =29,459
P =
P− =2,132,475
P
Receivables (Note 10) =2,102
P P−
= P−
= P−
= P−
= =2,102
P
Inventories (Note 11) 671 − − − − 671
=2,773
P =−
P =−
P =−
P =−
P =2,773
P
*SGVFS035342*
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Inter-segment Revenues
Inter-segment revenues are eliminated at the consolidation level.
Segment Results
Segment results pertain to the net income (loss) of each of the operating segments excluding the
amounts of market valuation gains and losses on financial assets at FVPL, foreign exchange gains and
losses and other revenues and expenses which are not allocated to operating segments.
Segment Assets
Segment assets are resources owned by each of the operating segments excluding significant
inter-segment transactions.
Segment Liabilities
Segment liabilities are obligations incurred by each of the operating segments excluding significant
inter-segment transactions. The Group also reports to the chief operating decision maker the
breakdown of the short-term and long-term debts of each of the operating segments.
Capital Expenditures
The components of capital expenditures reported to the chief operating decision maker are the
additions to investment property and property plant and equipment during the period.
Geographic Information
The Group operates in the Philippines, Thailand, Malaysia, Indonesia, China, Hong Kong, Singapore,
Vietnam, Myanmar, New Zealand and Australia.
The following table shows the distribution of the Group’s consolidated revenues to external
customers by geographical market, regardless of where the goods were produced:

(In Thousands)
Domestic P
=84,566,692 =82,137,541
P =20,372,269
P
Foreign 43,203,257 42,870,283 10,567,969
P
=127,769,949 =125,007,824
P =30,940,238
P
The Group has no customer which contributes 10% or more of the consolidated revenues of the
Group.
The table below shows the Group’s carrying amounts of noncurrent assets per geographic location
excluding noncurrent financial assets, deferred tax assets and pension assets:

(In Thousands)
Domestic P
=33,507,048 =30,500,080
P =27,795,757
P
Foreign 63,757,555 63,175,218 62,227,710
P
=97,264,603 =93,675,298
P =90,023,467
P
*SGVFS035342*
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7. Cash and Cash Equivalents

This account consists of:
2018 2017
Cash on hand P
=75,715,245 P103,326,491
=
Cash in banks (Note 34) 3,895,390,938 3,948,475,487
Short-term investments (Note 34) 9,051,995,729 10,445,715,813
P
=13,023,101,912 =14,497,517,791
P
Cash in banks earn interest at the prevailing bank deposit rates. Short-term investments represent
money market placements that are made for varying periods depending on the immediate cash
requirements of the Group and earn interest ranging from 0.05% to 6.80%, from 0.05% to 6.50% and
from 0.01% to 6.50% for foreign currency-denominated money market placements for the years
ended December 31, 2018 and 2017, and the three-month period ended December 31, 2016,
respectively. Peso-denominated money market placements, on the other hand, earn interest ranging
from 1.50% to 5.50%, from 1.20% to 3.40% and from 1.10% to 2.75% for the years ended
December 31, 2018 and 2017, and the three-month period ended December 31, 2016.
Interest earned on cash and cash equivalents amounted to P

=327.0 million, P
=212.7 million and
P49.9 million for the years ended December 31, 2018 and 2017, and the three-month period ended
=
December 31, 2016, respectively (see Note 29).
8. Financial Assets at Fair Value Through Profit or Loss
This account consists of investments held-for-trading amounting to P

=420.2 million and
P455.6 million as of December 31, 2018 and 2017, respectively. Investments held-for-trading consist
=
of quoted equity securities issued by certain domestic entities.
Market valuation on financial instruments at fair value though profit and loss amounted to
=
P35.4 million loss, =
P71.0 million gain and =
P4.5 million loss for the years ended December 31, 2018
and 2017 and the three-month period ended December 31, 2016, respectively.
The Group received dividends from its quoted equity securities amounting to P
=32.3 million,
=12.9 million and nil for the years ended December 31, 2018 and 2017 and for the three-month
P
period ended December 31, 2016, respectively (see Note 29).
9. Derivative Financial Instruments

Derivatives designated as accounting hedge
As part of its asset and liability management, the Group uses derivatives, particularly currency option,
as cash flow hedges in order to reduce its exposure to market risks.
The Group entered into currency options with a total notional amount of NZ$28.2 million and initial
fair value of =
P7.5 million. The Group recognized unrealized loss (presented under ‘Other
comprehensive income’) amounting to = P3.3 million and P
=11.4 million for the years ended
December 31, 2018 and 2017, and unrealized gain of P =19.2 million for the three-month period ended
December 31, 2016 (see Note 23). The Group made a settlement of = P4.6 million in 2017 for the
related derivatives.
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The Group’s currency options have a positive fair value of =

P6.4 million and =
P11.0 million as of
December 31, 2018 and 2017, respectively (see Note 12).
10. Receivables

2018 2017
Trade receivables (Note 34) P
=12,230,562,667 =13,851,205,174
P
Non-trade receivables 980,754,057 871,056,230
Due from related parties (Note 34) 845,801,629 1,396,239,630
Advances to officers and employees 164,791,962 133,976,804
Interest receivable (Note 34) 9,690,349 42,299,508
Others 528,867,686 198,238,183
14,760,468,350 16,493,015,529
Less allowance for credit losses 355,144,379 376,522,190
P
=14,405,323,971 =16,116,493,339
P
Allowance for Credit Losses on Receivables

Changes in allowance for impairment losses on receivables follow:
2018
Collective
Individual Assessment Assessment
Trade Other Trade
Receivables Receivables Receivables Total
Balances at beginning of the period =153,990,523
P =208,970,376
P =13,561,291
P =376,522,190
P
Provision for credit losses 12,194,872 − 5,579,236 17,774,108
Others (39,151,919) – − (39,151,919)
Balances at end of the period =127,033,476
P =208,970,376
P =19,140,527
P =355,144,379
P
2017
Collective
Individual Assessment Assessment
Trade Other Trade
Receivables Receivables Receivables Total
Balances at beginning of the period =157,563,135
P =188,697,554
P =13,561,291
P =359,821,980
P
Provision for credit losses 18,553,155 − − 18,553,155
Others (22,125,767) 20,272,822 − (1,852,945)
Balances at end of the period =153,990,523
P =208,970,376
P =13,561,291
P =376,522,190
P
Allowance for credit losses on other receivables includes credit losses on nontrade receivables,
advances to officers and employees and other receivables. Allowance for credit losses on advances to
officers and employees amounted to P =19.6 million as of December 31, 2018 and 2017. Allowance
for credit losses on other receivables amounted to =P189.3 million as of December 31, 2018 and 2017.
*SGVFS035342*
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11. Inventories
This account consists of inventories at cost as follows:
2018 2017
Raw materials P
=8,573,783,243 =6,639,193,504
P
Finished goods 6,153,119,351 5,247,036,948
Spare parts and supplies 4,140,804,017 3,720,707,970
Containers and packaging materials 2,111,369,788 1,969,926,603
Goods in-process 1,106,693,642 888,498,415
P
=22,085,770,041 =18,465,363,440
P
Under the terms of the agreements covering liabilities under trust receipts totaling =
P6.0 billion and
=3.2 billion as of December 31, 2018 and 2017, respectively, certain inventories which approximate
P
the trust receipts payable, have been released to the Group under trust receipt agreement with the
banks. The Group is accountable to these banks for the trusteed merchandise or their sales proceeds.
Inventory obsolescence included in ‘Cost of sales’, amounted to P

=749.0 million, =
P638.4 million and
=185.2 million for the years ended December 31, 2018 and 2017, and the three-month period ended
P
December 31, 2016, respectively.
The Group recognized impairment losses on its inventories amounting to =

P7.9 million, =
P2.9 million
and =
P0.7 million for the years ended December 31, 2018 and 2017, and the three-month period ended
12. Other Current Assets
2018 2017
Input value-added tax (VAT) P
=1,599,204,239 =1,249,413,458
P
Advances to suppliers 1,517,145,432 1,266,652,930
Prepaid insurance 262,671,126 204,878,838
Prepaid taxes 147,684,689 85,055,881
Prepaid rent 42,096,258 51,421,481
Derivatives designated as accounting hedge
(Note 9) 6,389,048 11,023,146
Other prepaid expenses 158,474,713 118,940,363
P
=3,733,665,505 =2,987,386,097
P
Advances to suppliers include advance payments for the acquisition of raw materials, spare parts,
packaging materials and other supplies. Also included in the account are advances made to
contractors related to construction activities. These are applied against progress billings which occur
within one year from the date the advances arose.
Other prepaid expenses include prepayments of advertising and office supplies.
*SGVFS035342*
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13. Property, Plant and Equipment
The rollforward of this account follows:

Land Buildings and Machinery and
Land Improvements Improvements Equipment Sub-total
Cost
Balance at beginning of year P
=3,727,711,355 P
=1,704,819,183 P
=16,605,754,803 P
=69,703,010,941 P
=91,741,296,282
Additions − 127,631,305 1,671,216,410 3,356,378,331 5,155,226,046
Additions from acquisition of subsidiaries (Note 16) − − − 115,275,827 115,275,827
Disposals, reclassifications and other adjustments 20,382,166 188,477,584 31,975,458 12,513,461 253,348,669
Balance at end of year 3,748,093,521 2,020,928,072 18,308,946,671 73,187,178,560 97,265,146,824
Accumulated Depreciation and Amortization
Balance at beginning of year − 670,717,018 7,516,009,094 46,464,498,911 54,651,225,023
Depreciation and amortization (Note 27) − 84,943,231 806,054,484 4,610,183,001 5,501,180,716
Disposals, reclassifications and other adjustments − (1,091,293) 55,980,784 (169,586,394) (114,696,903)
Balance at end of year − 754,568,956 8,378,044,362 50,905,095,518 60,037,708,836
Net Book Value P
=3,748,093,521 P
=1,266,359,116 P
=9,930,902,309 P
=22,282,083,042 P
=37,227,437,988

Transportation Furniture, Fixtures Construction Equipment
Equipment and Equipment In-progress In-transit Total
Cost
=2,476,588,603 P
=4,868,933,076 P
=5,882,128,787 P
=3,169,822,628 P
=108,138,769,376
Additions 181,992,862 573,199,933 1,770,790,472 960,520,785 8,641,730,098
Additions from acquisition of subsidiaries (Note 16) 2,021,293 274,742 55,718 − 117,627,580
Disposals, reclassifications and other adjustments (15,587,527) (138,688,771) 179,648,506 739,815,612 1,018,536,489
Balance at end of the year 2,645,015,231 5,303,718,980 7,832,623,483 4,870,159,025 117,916,663,543
Balance at beginning of year 1,831,800,835 3,401,615,215 , , 59,884,641,073
Depreciation and amortization (Note 27) 209,519,017 455,481,200 − − 6,166,180,933
Disposals, reclassifications and other adjustments 20,166,049 10,056,125 − − (84,474,729)
Balance at end of year 2,061,485,901 3,867,152,540 − − 65,966,347,277
Net Book Value P
=583,529,330 P
=1,436,566,440 P
=7,832,623,483 P
=4,870,159,025 P
=51,950,316,266
*SGVFS035342*
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Land Buildings and Machinery and
Land Improvements Improvements Equipment Sub-total
Cost
Balance at beginning of period P
=3,431,016,024 P
=1,640,367,292 P
=15,715,575,721 P
=66,093,113,234 P
=86,880,072,271
Additions 214,731,551 49,404,956 471,575,891 2,131,770,696 2,867,483,094
Disposals, reclassifications and other adjustments 81,963,780 15,046,935 418,603,191 1,478,127,011 1,993,740,917
Balance at end of period 3,727,711,355 1,704,819,183 16,605,754,803 69,703,010,941 91,741,296,282
Balance at beginning of period − 578,902,619 6,514,023,632 42,194,166,937 49,287,093,188
Depreciation and amortization (Note 27) − 84,419,460 751,947,125 4,408,672,415 5,245,039,000
Disposals, reclassifications and other adjustments − 7,394,939 250,038,337 (138,340,441) 119,092,835
Balance at end of period − 670,717,018 7,516,009,094 46,464,498,911 54,651,225,023
Net Book Value P
=3,727,711,355 P
=1,034,102,165 P
=9,089,745,709 P
=23,238,512,030 P
=37,090,071,259

Transportation Furniture, Fixtures Construction Equipment
Equipment and Equipment In-progress In-transit Total
Cost
=2,370,685,859 P
=4,089,123,064 P
=3,504,041,899 P
=1,794,350,119 P
=98,638,273,212
Additions 134,481,808 691,914,896 2,785,889,642 1,531,857,139 8,011,626,579
Disposals, reclassifications and other adjustments (28,579,064) 87,895,116 (407,802,754) (156,384,630) 1,488,869,585
Balance at end of the period 2,476,588,603 4,868,933,076 5,882,128,787 3,169,822,628 108,138,769,376
Balance at beginning of period 1,637,136,526 2,706,625,749 , , 53,630,855,463
Depreciation and amortization (Note 27) 196,356,912 475,586,168 , , 5,916,982,080
Disposals, reclassifications and other adjustments (1,692,603) 219,403,298 − − 336,803,530
Balance at end of period 1,831,800,835 3,401,615,215 − − 59,884,641,073
Net Book Value P
=644,787,768 P
=1,467,317,861 P
=5,882,128,787 P
=3,169,822,628 P
=48,254,128,303
*SGVFS035342*
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In July 2018, CFC Corporation executed a Memorandum of Agreement and Deed of Absolute Sale
with a related party, selling its parcel of land costing =
P3.4 million at =
P584.9 million selling
price. Gain on disposal attributable to sale was = P581.5 million, which was recognized under ‘Other
income (loss) - net’ in the consolidated statements of income.
In May 2017, Century Pacific Food Inc. (CNPF) entered into an asset purchase agreement with the
Parent Company to purchase the machineries and equipment used in manufacturing the Hunt’s
branded products for a total consideration of P
=145.1 million, net of tax. As of date of sale, the net
book value of these assets amounted to P=28.1 million. The Group recognized gain on disposal
amounting to =
P117.0 million, under ‘Other income (loss) - net’ in the consolidated statements of
income. The sale was completed on August 31, 2017.
CNPF also entered into a Compensation Agreement with the Parent Company to acquire the
exclusive right to manufacture and sell Hunt’s branded products amounting to P
=214.2 million which
the Group recognized in the consolidated statements of income.
In January 2017, the Parent Company executed a Memorandum of Agreement and Deed of Absolute
Sale with a related party, selling its three parcels of land costing =
P1.0 million for a total consideration
of P
=111.3 million. Gain on disposal attributable to the sale amounted to P =110.3 million, which was
recognized under ‘Other income (loss) - net’ in the consolidated statements of income.
Borrowing Costs
For the years ended December 31, 2018 and 2017, and the three-month period ended
December 31, 2016, no borrowing costs have been incurred related to property, plant and equipment
under construction.
Depreciation
The breakdown of consolidated depreciation and amortization of property, plant and equipment
follows:
2018 2017 2016
Cost of sales (Note 24) =5,444,705,459
P =5,270,962,412
P =1,300,783,837
P
Selling and distribution costs
(Note 25) 219,016,116 162,600,854 37,436,876
General and administrative expenses
(Note 26) 502,459,358 483,418,814 116,437,087
=6,166,180,933
P =5,916,982,080
P =1,454,657,800
P
Collateral
As of December 31, 2018 and 2017, the Group has no property and equipment that are pledged as
collateral.
*SGVFS035342*
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14. Biological Assets
Total biological assets shown in the consolidated statements of financial position follow:
2018 2017
Current portion P
=741,719,637 =1,180,266,509
P
Noncurrent portion 366,184,414 498,309,880
P
=1,107,904,051 =1,678,576,389
P
These biological assets consist of:
2018 2017
Swine livestock
Commercial P
=709,045,374 =1,137,959,568
P
Breeder 278,316,362 435,698,306
Poultry livestock
Commercial 32,674,263 42,306,941
Breeder 87,868,052 62,611,574
P
=1,107,904,051 =1,678,576,389
P
The rollforward analysis of this account follows:
2018 2017
=1,678,576,389 P1,383,379,248
=
Additions 3,200,666,651 3,115,220,274
Disposals (3,303,867,014) (2,938,864,205)
Gain (loss) arising from changes in fair value
less estimated costs to sell (467,471,975) 118,841,072
Balance at end of year P
=1,107,904,051 =1,678,576,389
P
The Group has 232,724 and 239,438 heads of swine livestock and 731,177 and 435,946 heads of
poultry livestock as of December 31, 2018 and 2017, respectively.
15. Goodwill and Intangible Assets
The movements of goodwill follow:
2018 2017
Cost
Balance at beginning and end of year P
=31,460,215,108 =31,460,215,108
P
Accumulated impairment losses
Balance at beginning of year 248,139,704 248,139,704
Additional impairment during the year 17,579,587 −
Balance at end of year 265,719,291 248,139,704
Net book value at end of year P
=31,194,495,817 =31,212,075,404
P
*SGVFS035342*
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The Group’s goodwill pertains to the following:
2018 2017
Acquisition of CSPL in September 2016 P
=16,492,854,332 =16,492,854,332
P
Acquisition of NZSFHL in November 2014 13,913,396,261 13,913,396,261
The excess of the acquisition cost over the
fair values of the net assets acquired by
UABCL in 2000 775,835,598 775,835,598
Acquisition of Balayan Sugar Mill in
February 2016 12,409,626 12,409,626
Acquisition of Advanson in December 2007 − 17,579,587
P
=31,194,495,817 =31,212,075,404
P
As of December 31, 2018, the goodwill from the acquisition of Advanson amounting to =
P17.6 million
was fully impaired.
The composition and movements of intangible assets follow:

Trademarks/ Product Software Customer
Brands Formulation Costs Relationship Total
Cost
Balances at beginning of period P
= 9,564,461,252 P
= 425,000,000 P
= 79,955,581 P= 2,201,281,173 P
= 12,270,698,006
Additions − − 11,234,200 − 11,234,200
Disposal/others − − (12,411) − (12,411)
9,564,461,252 425,000,000 91,177,370 2,201,281,173 12,281,919,795
Accumulated Amortization and
Impairment Losses
Balances at beginning of period 201,524,581 − 60,900,396 198,236,997 460,661,974
Amortization during the period
(Note 27) – – 17,973,401 78,862,555 96,835,956
Disposal/others − − (626,217) (5,212,272) (5,838,489)
201,524,581 – 78,247,580 271,887,280 551,659,441
Net Book Value at End of Period P
= 9,362,936,671 P
= 425,000,000 P
= 12,929,790 P= 1,929,393,893 P= 11,730,260,354

Trademarks/ Product Software Customer
Brands Formulation Costs Relationship Total
Cost
Balances at beginning of year =9,564,461,252
P =425,000,000
P =73,812,234
P =2,201,281,173 =
P P12,264,554,659
Additions − − 4,475,330 − 4,475,330
Disposal/others − − 1,668,017 − 1,668,017
9,564,461,252 425,000,000 79,955,581 2,201,281,173 12,270,698,006
Accumulated Amortization and
Impairment Losses
Balances at beginning of year 201,524,581 − 40,904,256 118,520,921 360,949,758
Amortization during the period
(Note 27) – – 19,404,935 77,381,982 96,786,917
Disposal/others − − 591,205 2,334,094 2,925,299
201,524,581 – 60,900,396 198,236,997 460,661,974
Net Book Value at End of Year P
=9,362,936,671 P
=425,000,000 P
=19,055,185 P
=2,003,044,176 P
=11,810,036,032
Trademarks and product formulation were acquired from General Milling Corporation in 2008.
Total intangible assets acquired from the acquisition of CSPL and NZSFHL in 2016 and 2014 were
composed of brands of P =9.3 billion, customer relationships of =
P2.2 billion and software costs of
=
P56.3 million.
*SGVFS035342*
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The Group performed its annual impairment test on its goodwill and other intangible assets with
indefinite useful lives as of December 31, 2018 and 2017. The recoverable amounts of goodwill and
other intangible assets were determined based on value in use calculations using cash flow projections
from financial budgets approved by management covering a five-year period. The pre-tax discount
rates applied to cash flow projections range from 7.80% to 10.80% and from 3.40% to 12.67% for the
years ended December 31, 2018 and 2017, respectively. The following assumptions were also used
in computing value in use:
Growth rate estimates - growth rates include long-term and terminal growth rates that are based on
experiences and strategies developed for the various subsidiaries. The prospect for the industry was
also considered in estimating the growth rates. Growth rates used in computing the projected future
cash flows ranged from 2.0% to 12.1% as of December 31, 2018 and 2017.
Discount rates - discount rates were estimated based on the industry weighted average cost of capital,
which includes the cost of equity and debt after considering the gearing ratio.
Management believes that no reasonably possible changes in any of the above key assumptions would
cause the carrying values of goodwill and intangible assets arising from the Group’s acquisitions to
materially exceed their recoverable amounts.
16. Investments in Joint Ventures
The rollforward analysis of this account follows:
2018 2017
Acquisition Cost
=1,147,543,071 =746,250,000
P
Additional investments 324,341,074 401,293,071
Reclassification to investment in subsidiaries
due to step-up acquisition (328,250,000) –
Balance at end of year 1,143,634,145 1,147,543,071
Accumulated Equity in Net Earnings
Balance at beginning of year (596,122,551) (444,667,941)
Equity in net losses during the year (132,407,965) (132,954,610)
Dividends received – (18,500,000)
Reclassification to investment in subsidiaries
due to step-up acquisition 105,478,327 −
Balance at end of year (623,052,189) (596,122,551)
Cumulative Translation Adjustments 335,553 805,768
Net Book Value at End of Year P
=520,917,509 =552,226,288
P
Proper Snack Foods Ltd.

On June 30, 2017, Griffins purchased 50.1% of the shares in Proper Snack Foods Ltd. (PSFL) (a
Nelson based business with the 49.9% shareholder being an individual) for a total consideration of
approximately NZ$7.8 million (P=275.3 million), which includes deferred consideration amounting to
NZ$1.5 million (P
=51.5 million) recorded in the consolidated statement of financial position.
*SGVFS035342*
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Vitasoy-URC, Inc.
On October 4, 2016, the Parent Company entered into a joint venture agreement with Vita
International Holdings Limited, a corporation duly organized in Hong Kong to form Vitasoy - URC
(VURCI), a corporation duly incorporated and organized in the Philippines to manufacture and
distribute food products under the “Vitasoy” brand name, which is under exclusive license to VURCI
in the Philippines.
On January 31, 2018, the Parent Company made an additional subscription to the unissued authorized
capital stock of VURCI consisting of 29,000,000 common shares for a total cost of =
P290.0 million.
On May 31, 2017, the Parent Company made additional subscriptions to the unissued authorized
capital stock of VURCI consisting of 12,600,000 common shares for a total cost of =
P126.0 million.
Danone Universal Robina Beverages, Inc.

On May 23, 2014, the Parent Company entered into a joint venture agreement with Danone Asia
Holdings Pte. Ltd., a corporation duly organized in the Republic of Singapore to form Danone
Universal Robina Beverages, Inc. (DURBI), a corporation duly incorporated and organized in the
Philippines to manufacture and distribute food products under the “B’lue” brand name, which is
under exclusive license to DURBI in the Philippines.
In 2018, the Parent Company made additional subscriptions to the unissued authorized capital stock
of DURBI consisting of 5,000,000 common shares for a total cost of = P82.5 million. The capital
infusion was not presented as additional investment but was applied to the 2017 excess of the share in
net loss over the investment.
Equity in net losses in the 2017 consolidated statement of income amounting to =

P280.5 million
includes the excess of the share in net loss over the investment in DURBI amounting to
=
P147.6 million presented in ‘Other noncurrent liabilities.’
Calbee-URC, Inc.
On January 17, 2014, the Parent Company entered into a joint venture agreement with Calbee, Inc., a
corporation duly organized in Japan to form Calbee-URC, Inc. (CURCI), a corporation duly
incorporated and organized in the Philippines to manufacture and distribute food products under the
“Calbee Jack ‘n Jill” brand name, which is under exclusive license to CURCI in the Philippines.
venture partner, Calbee, Inc., to sell the latter’s 50% equity interest in CURCI for a total
consideration of =
P171.0 million, which approximates the fair values of identifiable net assets
acquired. The purchase of the additional 50% shares will allow the Parent Company to have full
control of CURCI, consistent with its agenda of driving an aligned and scalable snacking category
growth. As a result of the sale, CURCI became a wholly-owned subsidiary of the Parent Company.
Calbee-URC Malaysia
On August 23, 2017, URC Malaysia entered into a joint venture agreement with Calbee, Inc., a
corporation duly organized in Japan to form Calbee-URC Malaysia Sdn Bhd (CURM), a corporation
registered with the Companies Commission of Malaysia organized to manufacture savoury snack
products. Total consideration amounted to MYR2.7 million (P=34.3 million).
*SGVFS035342*
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Hunt-Universal Robina Corporation

The Parent Company has an equity interest in Hunt-Universal Robina Corporation (HURC), a
domestic joint venture which is a jointly controlled entity. HURC manufactures and distributes food
products under the “Hunt’s” brand name, which is under exclusive license to HURC in the
Philippines.
In 2017, the Parent Company entered into certain agreements with CNPF to sell its rights, title and
interest in the assets used in manufacturing the hunt’s business, as well as pre-termination of the right
to manufacture, sell and distribute Hunt’s products (see Note 13). Subsequent to the sale, HURC
remains to exist as a jointly controlled entity.
On January 11, 2017, HURC’s BOD declared cash dividends amounting to P =13.20 per share to
stockholders of record as of September 30, 2016. Total dividends declared amounted to
=37.0 million, which was paid on the third quarter of calendar year 2017.
P
venture partner, ConAgra Grocery Products Company, LLC., to sell the latter’s 50% equity interest in
HURC for a total consideration of = P3.2 million, which approximates the fair values of identifiable net
assets acquired. A loss of =P55.6 million was recognized under “Other income (loss) - net” account in
the 2018 consolidated statement of income as a result of the remeasurement of the 50% previously
held interest in HURC. The acquisition of the HURC shares of ConAgra will result in the Parent
Company having full control of HURC and will allow URC to integrate and simplify its business
operations as part of its Philippine business portfolio. As a result of the sale, HURC became a
wholly-owned subsidiary of URC.
As of December 31, 2018 and 2017, the Parent Company has the following percentage of ownership
of shares in its joint ventures and its related equity in the net assets are summarized below:
Place of Percentage of Ownership Equity in Net Assets (in MM)

Business 2018 2017 2018 2017
VURCI Philippines 50.00 50.00 P
=199.0 =31.6
P
DURBI -do- 50.00 50.00 − −
PSFL New Zealand 50.10 50.10 293.3 279.6
CURM Malaysia 50.00 50.00 34.7 −
HURC* Philippines 100.00 50.00 − 56.8
CURCI* -do- 100.00 50.00 − 184.2
* No 2018 equity in net assets presented as both HURC and CURCI are subsidiaries of the Parent Company as of December 31, 2018
Summarized financial information in respect of the Group’s joint ventures as of December 31, 2018
and 2017 are presented below (in thousands).
CURM DURBI VURCI PSFL HURC* CURCI*

2018 2017 2018 2017 2018 2017 2018 2017 2017 2017
Current assets P
= 120,611 =
P− P = 427,870 P
=248,267 P
= 577,131 P
=255,324 P = 113,092 P =83,147 P
=326,815 P=513,301
Noncurrent assets 9,637 − 10,940 13,022 550,599 3,692 586,249 563,253 7,221 141,918
Current liabilities 60,946 − 789,169 555,490 729,019 195,816 79,672 46,160 218,504 285,425
Noncurrent liabilities − − 3,440 2,271 − − 33,103 41,028 1,932 1,394
Revenue 64,080 − 466,261 665,620 242,359 203,453 413,870 261,343 406,496 227,322
Costs and expenses 63,837 − 717,032 904,293 496,388 403,949 387,001 240,617 444,998 330,374
Net income (loss) (5,092) − (222,791) (239,234) (243,806) (198,798) 26,868 11,998 (36,159) (93,891)
* No 2018 financial information presented as both HURC and CURCI are subsidiaries of the Parent Company as of December 31, 2018
The summarized financial information presented above represents amounts shown in the joint
ventures’ financial statements prepared in accordance with PFRSs.
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The joint venture companies are private companies and there are no quoted prices available for their
shares.
The Group received dividends from its joint ventures amounting to P

=18.5 million for the year ended
December 31, 2017. No dividends were declared and received for the year ended December 31, 2018
and for the three-month period ended December 31, 2016.
As of December 31, 2018 and 2017, there were no agreements entered into by the joint ventures that
may restrict dividends and other capital distributions to be paid, or loans and advances to be made or
repaid to or from the Group. In addition, the Group has no share on commitments and contingencies
of its joint ventures.
Investments in Subsidiaries
The summarized financial information (before inter-company eliminations) of NURC, a subsidiary
with material non-controlling interest follows (in thousands):
2018 2017
Current assets P
=1,388,075 =1,712,589
P
Noncurrent assets 1,193,411 973,148
Current liabilities 1,769,632 1,789,532
Noncurrent liabilities 20,512 14,488
Revenue 5,755,858 5,102,875
Costs and expenses 4,935,042 4,334,291
Net income 601,600 559,264
The equity interest held by non-controlling interest in NURC, a subsidiary with material non-
controlling interest is 49.0% as of December 31, 2018 and 2017.
The accumulated non-controlling interest as of December 31, 2018 and 2017 amounted to
=
P202.3 million and =
P282.8 million, respectively.
The profit allocated to non-controlling interest for the years ended December 31, 2018 and 2017, and
the three-month period ended December 31, 2016 amounted to = P258.5 million, =
P264.8 million and
=
P47.5 million, respectively.
17. Other Noncurrent Assets
2018 2017
Deposits P
=766,539,097 =576,377,057
P
Input VAT 634,328,645 666,011,121
Financial assets at FVOCI 50,300,000 −
AFS financial assets − 45,980,000
Investment properties 36,384,879 45,288,139
Pension asset (Note 31) 15,589,696 –
Others 65,176,266 60,846,060
P
=1,568,318,583 =1,394,502,377
P
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Deposits
Deposits pertain to the Group’s deposits made in connection with the installation of power water
meters, deposits on returnable containers and security deposits for operating leases of plants,
warehouses and office buildings.
Input VAT
Input tax pertains to VAT from purchases and/or importations of various parts, supplies, equipment,
machineries and or capital goods, which will be claimed as credit against output tax liabilities in a
manner prescribed by pertinent revenue regulations.
Financial Assets at FVOCI/AFS Financial Assets

As of December 31, 2018 and 2017, financial assets at FVOCI/AFS financial assets consists of equity
securities with the following movement:
2018 2017
=45,980,000 =43,030,000
P
Changes in fair value during the period 4,320,000 2,950,000
Balance at end of period P
=50,300,000 =45,980,000
P
Fair value changes of financial assets at FVOCI/AFS financial assets are presented as components of
‘Other comprehensive income’ in Equity (see Note 23).
Investment Properties
The rollforward analysis of investment properties follows:
2018 2017
Cost
=107,947,364 =107,947,364
P
Reclassification to property, plant and equipment (13,392,698) −
Balance at end of period 94,554,666 107,947,364
Accumulated depreciation
Balance at beginning of period 62,659,225 59,001,439
Depreciation (Notes 26 and 27) 3,286,562 3,657,786
Reclassification to property, plant and equipment (7,776,000) −
Balance at end of period 58,169,787 62,659,225
Net book value at end of period P
=36,384,879 =45,288,139
P
The investment properties consist of buildings and building improvements which are leased out to
related and third parties (see Notes 34 and 36).
Total rental income earned from investment properties (included under ‘Other income (loss) - net’ in
the consolidated statements of income) amounted to P
=61.2 million, P
=57.9 million and P
=19.2 million
for years ended December 31, 2018 and 2017 and the three-month period ended December 31, 2016,
respectively.
Direct operating expenses (included under ‘General and administrative expenses’ in the consolidated
statements of income) arising from investment properties amounted to P
=0.8 million for the years
ended December 31, 2018 and 2017, and nil for the three-month period ended December 31, 2016.
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Collateral
As of December 31, 2018 and 2017, the Group has no investment properties that are pledged as
collateral.
18. Short-term Debts
2018 2017
Thai Baht denominated loans - unsecured with
interest ranging from 2.16% to 2.40% and
from 2.10% to 2.25% for the years ended
December 31, 2018 and 2017, respectively P
=1,467,098,720 =1,629,389,107
P
Peso-denominated loan - unsecured with interest
of 5.55% 600,000,000 –
Malaysian Ringgit denominated loan -
unsecured with interest at 4.62% and 4.43%
for the years ended December 31, 2018 and
2017, respectively 394,286,386 379,928,804
P
=2,461,385,106 =2,009,317,911
P
Accrued interest payable on the Group’s short-term debts (included under ‘Accounts payable and
other accrued liabilities’ in the consolidated statements of financial position) amounted to
=
P5.7 million and =
P2.4 million as of December 31, 2018 and 2017, respectively. Interest expense from
the short-term debts amounted to P =134.9 million, =
P66.6 million and = P14.0 million for the years ended
December 31, 2018 and 2017, and the three-month period ended December 31, 2016, respectively
(see Note 30).
19. Accounts Payable and Other Accrued Liabilities
2018 2017
Trade payables (Note 34) P
=13,531,720,134 =12,344,609,082
P
Accrued expenses 7,159,227,021 7,532,671,219
VAT payable 758,822,733 680,883,835
Customers’ deposits 496,197,812 398,004,745
Advances from stockholders (Note 34) 247,216,898 243,600,509
Withholding taxes payable 236,709,093 186,762,222
Due to related parties (Note 34) 164,624,582 106,452,798
Others 172,241,254 78,134,146
P
=22,766,759,527 =21,571,118,556
P
Trade payables are noninterest-bearing and are normally settled on 30-60 day terms. Trade payables
arise from purchases of inventories which include raw materials and indirect materials
(i.e., packaging materials) and supplies, for use in manufacturing and other operations.
Customers’ deposits represent downpayments for the sale of goods or performance of services which
will be applied against accounts receivables upon delivery of goods or rendering of services.
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The accrued expenses account consists of:
2018 2017
Advertising and promotions P
=3,988,888,494 =4,656,850,277
P
Personnel costs 958,392,371 1,006,743,561
Freight and handling costs 341,656,474 251,248,221
Utilities 335,649,820 296,217,865
Contracted services 278,581,376 384,401,569
Rent 252,144,351 366,344,003
Professional and legal fees 121,959,369 9,056,533
Others 881,954,766 561,809,190
P
=7,159,227,021 =7,532,671,219
P
Customers’ deposits represent downpayments for the sale of goods or performance of services which
will be applied against accounts receivables upon delivery of goods or rendering of services.
Accrued professional and legal fees include fees or services rendered by third party consultants for
the review of the Group's brand portfolio in 2018. The related expense recognized under 'Other
income (expense) - net' in the 2018 consolidated statement of income amounted to P =341.5 million.
Others include accruals for taxes and licenses, interest expense and other benefits.
20. Long-term Debts
2018 2017
Unamortized Unamortized
debt issuance debt issuance
Principal cost Net Principal cost Net
URC AU FinCo Loan P
= 17,922,355,336 P
= 179,697,514 P= 17,742,657,822 =18,772,656,535
P =250,622,686 =
P P18,522,033,849
URC NZ FinCo Loan 13,924,974,927 210,508,867 13,714,466,060 14,808,699,804 104,771,265 14,703,928,539
P
= 31,847,330,263 P
= 390,206,381 P= 31,457,123,882 P
=33,581,356,339 =
P355,393,951 P
=33,225,962,388
URC AU FinCo Loan due 2021

On September 30, 2016, URC AU FinCo entered into a syndicated term loan facility agreement
guaranteed by the Parent Company payable in five years, amounting to AU$484.2 million
(P
=17.9 billion), with various banks for payment of acquisition costs and to refinance certain
indebtedness of an acquired company, CSPL. The loan obtained bears a market interest rate plus a
certain spread, payable quarterly, maturing on September 30, 2021.
URC NZ FinCo NZ$395 Million Term Loan due 2023

On October 22, 2018, URC NZ FinCo entered into a term loan facility agreement guaranteed by the
Parent Company payable in five years, amounting to NZ$395.0 million (P =14.4 billion), with various
banks for payment of the NZ$420 million term loan due in 2019. The loan obtained bears a market
interest rate plus a certain spread, payable quarterly, and maturing on October 22, 2023.
URC NZ FinCo NZ$420 Million Term Loan due 2019

On November 13, 2014, URC NZ FinCo entered into a term loan facility agreement guaranteed by
the Parent Company payable in five years, amounting to NZ$420.0 million (P =12.6 billion), with
various banks for payment of acquisition costs and to refinance certain indebtedness of an acquired
*SGVFS035342*
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company, NZSFHL. The loan obtained bears a market interest rate plus a certain spread, payable
quarterly, and maturing on November 13, 2019.
In October 2018, URC NZ FinCo prepaid its 5-year term loan under Clause 7.1 of the underlying
Facility Agreement at face value plus accrued interest. Total payment amounted to NZ$423.8 million
(approximately =P15.5 billion), which includes accrued interest. The prepayment resulted in the
recognition of the unamortized debt issue costs of US$1.7 million (approximately P =61.6 million) as
expense presented under ‘Finance costs’ which represents the difference between the settlement
amount and the carrying value of the loan at the time of settlement (see Note 30).
These long-term loans have no collateral but are all guaranteed by the Parent Company.
For the URC NZ FinCo and URC AU FinCo loans, the Group is required to maintain consolidated
debt to equity ratio of not greater than 2.5 to 1.0. The Group has complied with all of its debt
covenants as of December 31, 2018 and 2017.
21. Other Noncurrent Liabilities
2018 2017
Net pension liability (Note 31) P
=21,967,651 =170,807,825
P
Miscellaneous (Note 16) 265,889,830 296,938,666
P
=287,857,481 =467,746,491
P
Miscellaneous includes asset retirement obligation and other noncurrent liabilities.
Asset retirement obligation arises from obligations to restore the leased manufacturing sites,
warehouses and offices of CSPL at the end of the respective lease terms. These provisions are
calculated as the present value of the estimated expenditures required to remove any leasehold
improvements. These costs are currently capitalized as part of the cost of the plant and equipment
and are amortized over the shorter of the lease term and the useful life of assets.
As of December 31, 2018 and 2017, the carrying value of asset retirement obligation amounted to
=91.3 million and =
P P94.7 million, respectively. The amortization of this asset retirement obligation
(included under ‘Finance costs’ in the consolidated statement of income) amounted to P=3.5 million,
=
P3.4 million and =
P0.5 million for the years ended December 31, 2018 and 2017, and the three months
period ended December 31, 2016, respectively (see Note 30).
*SGVFS035342*
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22. Equity
The details of the Parent Company’s common stock as of December 31, 2018 and 2017 follows:
2018 2017
Authorized shares 2,998,000,000 2,998,000,000
Par value per share P
=1.00 =1.00
P
Issued shares:
Balance at beginning of year 2,227,638,933 2,227,638,933
Issuance during the year 2,521,257 −
Balance at end of year 2,230,160,190 2,227,638,933
Outstanding shares 2,204,161,868 2,204,161,868
The paid-up capital of the Parent Company consists of the following:
2018 2017
Common stock P
=2,230,160,190 =2,227,638,933
P
Additional paid-in capital 21,191,974,542 20,856,143,110
Total paid-up capital P
=23,422,134,732 =23,083,782,043
P
Capital Management
The primary objective of the Group’s capital management is to ensure that it maintains healthy capital
ratios in order to support its business and maximize shareholder value. The Group manages its
capital structure and makes adjustments to these ratios in light of changes in economic conditions and
the risk characteristics of its activities. In order to maintain or adjust the capital structure, the Group
may adjust the amount of dividend payment to shareholders, return capital structure or issue capital
securities. No changes have been made in the objective, policies and processes as they have been
applied in previous years.
The Group monitors its use of capital structure using a debt-to-capital ratio which is gross debt
divided by total capital. The Group includes within gross debt all interest-bearing loans and
borrowings, while capital represents total equity.
Following is a computation of the Group’s debt-to-capital ratio:

2018 2017 2016
(a) Short-term debts (Note 18) =2,461,385,106
P =2,009,317,911
P =1,431,890,655
P
Trust receipts payable (Note 11) 6,019,613,469 3,155,187,680 4,554,101,456
Long-term debts (Note 20) 31,457,123,882 33,225,962,388 31,366,592,785
=39,938,122,457
P =38,390,467,979
P =37,352,584,896
P
(b) Capital =83,993,479,270
P =81,686,012,597
P =78,849,254,753
P
(c) Debt-to-capital ratio (a/b) 0.48:1 0.47:1 0.47:1
The Group’s policy is to not exceed a debt-to-capital ratio of 2:1. The Group considers its total
equity as capital.
*SGVFS035342*
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Cumulative Redeemable Preferred Shares

The Group’s authorized preferred shares of stock are 12.00% cumulative, nonparticipating, and
nonvoting. In case of dissolution and liquidation of the Parent Company, the holders of the preferred
shares shall be entitled to be paid an amount equal to the par value of the shares or ratably insofar as
the assets of the Parent Company may warrant, plus accrued and unpaid dividends thereon, if any,
before the holders of the common shares of stock can be paid their liquidating dividends. The
authorized preferred stock is 2,000,000 shares at par value of =
P1.00 per share. There have been no
issuances of preferred stock as of December 31, 2018 and 2017.
Retained Earnings
Accumulated equity in net earnings of the subsidiaries
A portion of the Group’s retained earnings corresponding to the undistributed net earnings of the
subsidiaries and joint ventures amounting to P =53.2 billion and P
=49.9 billion as of December 31, 2018
and 2017, respectively, is not available for dividend declaration. This becomes available for dividend
declaration upon dividend distribution by the investees.
Dividends
Details of the Group’s dividend declarations follow:
Parent Company
Dividend
Year Date of declaration per share Total dividends Date of record Date of payment
2018 February 5, 2018 P
=3.15 P
=6.9 billion February 26, 2018 March 22, 2018
2017 February 15, 2017 =3.15
P =6.9 billion
P March 1, 2017 March 27, 2017
2016 February 9, 2016 =3.15
P =
P6.9 billion February 29, 2016 March 28, 2016
On February 28, 2019, the Parent Company’s BOD declared regular cash dividends amounting to
=
P1.50 per share to stockholders of record as of March 14, 2019. On the same date, the Parent
Company’s BOD declared special cash dividends amounting to = P1.65 per share to stockholders of
record as of July 1, 2019. Total dividends declared amounted to P
=6.9 billion. On March 28, 2019,
the regular cash dividend was paid amounting to P=3.3 billion.
NURC
On March 23, 2018, NURC’s BOD approved the declaration of cash dividends amounting to
=690.00 million (P
P =3.65 per share) to stockholders of record as of December 31, 2017 payable on or
before September 30, 2018.
There were no dividend declarations and dividend payments to stockholders of NURC for the year
ended December 31, 2017. For the year ended December 31, 2016:
Dividend
Year Date of declaration per share Total dividends Date of record Date of payment
2016 December 22, 2016 =1.06
P =200.0 million
P September 30, 2016 March 30, 2017
2016 December 22, 2016 =1.40
P =265.0 million
P September 30, 2016 September 30, 2017
The Group intends to maintain an annual cash dividend payment ratio of 50.0% of the Group’s
consolidated net income from the preceding fiscal year, subject to the requirements of the applicable
laws and regulations and the absence of circumstances which may restrict the payment of such
dividends. The BOD may, at any time, modify such dividend payment ratio.
*SGVFS035342*
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Appropriation of retained earnings

On December 18, 2018, the BOD approved the reversal of the appropriation of retained earnings in
the aggregate amount of P
=2.5 billion, which was approved by the BOD in its resolutions adopted on
September 27, 2016 and December 15, 2017.
On December 15, 2017, the BOD approved the additional appropriation of retained earnings
amounting to =
P1.5 billion for capital expenditure commitments to expand capacities in the snack
foods and beverage businesses across branded consumer food operations, which are expected to be
completed within the next two years.
On September 27, 2016, the BOD approved the reversal of appropriated retained earnings amounting
to =
P1.0 billion, which was used to fund the completion of various snack foods and beverage business
projects across branded foods group. On the same date, the BOD approved the additional
appropriation of retained earnings amounting to P
=2.0 billion for capital expenditure commitments to
expand capacities across branded consumer and commodity foods businesses, which are expected to
be completed within the next two years.
Treasury Shares
Under the Articles and Plan of Merger of CCPI with and into the Parent Company which was
approved by the SEC on April 24, 2018, the Parent Company has issued 2,521,257 common shares to
the stockholders of CCPI. Since CCPI is a wholly-owned subsidiary of URC, these issued shares
were consequently classified as treasury shares amounting to P
=338.4 million.
On September 27, 2016, the Parent Company’s BOD approved the sale of 22.7 million common
shares previously held as treasury shares by way of block sale at a selling price of =
P193.45 per share,
with a total gross selling proceeds amounting to P =4.4 billion. The net cash proceeds amounting to
=4.4 billion is net of transaction costs incurred amounting to =
P P27.2 million. The proceeds of the said
sale was used in relation to the acquisition of CSPL. The excess of the total consideration received
over the cost amounting to = P4.1 billion was treated as additional paid-in capital.
The Parent Company has outstanding treasury shares of 26.0 million shares (P
=679.5 million) and
23.5 million shares (P
=341.1 million) as of December 31, 2018 and 2017, respectively, restricting the
Parent Company from declaring an equivalent amount from unappropriated retained earnings as
dividends.
Equity Reserve
In December 2014, URC entered into a share purchase agreement with Nissin Foods (Asia) Pte. Ltd.
to sell 14.0% of its equity interest in NURC for a total consideration of =
P506.7 million. As a result of
the sale, the equity interest of URC changed from 65.0% to 51.0%. The excess of the consideration
received over the carrying amount of the equity transferred to NCI amounting to P =481.1 million is
presented under “Equity reserve” in the consolidated statements of financial position.
In August 2012, the Parent Company acquired 23.0 million common shares of URCICL from
International Horizons Investment Ltd for P
=7.2 billion. The acquisition of shares represented the
remaining 23.00% interest in URCICL. As a result of the acquisition, the Parent Company now holds
100.00% interest in URCICL. The Group charged equity reserve from the acquisition amounting to
about =
P5.6 billion presented under “Equity reserve” in the consolidated statements of financial
position.
*SGVFS035342*
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Record of Registration of Securities with SEC

Summarized below is the Parent Company’s track record of registration of securities under the Securities Registration Code:
Authorized Issued and

No. of shares Par Offer number of Outstanding
Date of offering Type of offering offered value price shares Shares
1,998,000,000
February 17, 1994 Registration of authorized capital stock – =1.00
P =–
P common shares –
2,000,000
preferred shares
February 23, 1994 Initial public offering

Subscribed and fully paid common 929,890,908 1.00 1.00 – 929,890,908
shares
New common shares 309,963,636 1.00 21.06 – 309,963,636
July 21, 1995 20.00% stock dividend 247,970,907 – – – 247,970,907
October 15, 2001 10.00% stock dividend 148,782,542 – – – 148,782,542
June 20, 2003 Property-for-share swap [the

Parent Company shares in
exchange for property of
Robinsons Supermarket
Corporation (RSC)] 49,871,556 – – – 49,871,556
December 16, 2005 Increase in authorized capital stock – – – 1,000,000,000 252,971,932

(payment by way of 15.00% common shares
stock dividend)
(Forward)
*SGVFS035342*
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Authorized Issued and

No. of shares Par Offer number of Outstanding
Date of offering Type of offering offered value price shares Shares
February 7, 2006 New share offering for common
shares:
a. Primary shares 282,400,000 =1.00
P =17.00
P – 282,400,000
b. Secondary shares 352,382,600
c. Over-allotment shares 95,217,400
November 14, 2007 Acquisition of Parent Company’s – – – – (75,104,200)

to October 20, 2008 shares under the share buy-back
program
April 21, 2009 Issuance of shares to JGSHI – – – – 5,787,452
December 8, 2009 Acquisition of Parent Company’s

to January 27, 2011 shares under the share buy-back
program – – – – (91,032,800)
June 14, 2012 Sale of treasury shares – – – – 120,000,000
September 30, 2016 Sale of treasury shares , , , , 22,659,935
April 24, 2018 Issuance of shares to stockholders – – – – 2,521,257
April 24, 2018 Re-purchase of shares issued to stockholders – – – – (2,521,257)
2,204,161,868
*SGVFS035342*
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The table below provides information regarding the number of stockholders of the Parent Company:

2018 2017 2016
Common shares 1,012 1,017 1,026
23. Components of Other Comprehensive Income
The breakdown and movement of other comprehensive income attributable to equity holders of the
Parent Company follows:

Items to be reclassified to profit or loss in subsequent
periods, net of tax:
Cumulative translation adjustments P
=2,480,952,279 =850,642,705
P =2,242,967,597
P
Net unrealized gain on AFS financial assets
Balance at beginning of period 24,260,000 21,310,000 20,110,000
Reclassification due to PFRS 9 (24,260,000) − −
Change in fair value during the period
(Note 17) − 2,950,000 1,200,000
Balance at end of period − 24,260,000 21,310,000
Net unrealized gain (loss) on cash flow hedges:
Balance at beginning of period 7,936,673 19,296,332 99,522
(Note 9) (3,336,554) (11,359,659) 19,196,810
Balance at end of period 4,600,119 7,936,673 19,296,332
2,485,552,398 882,839,378 2,283,573,929
Item not to be reclassified to profit or loss in
subsequent periods:
Net unrealized gain on financial assets at FVOCI
Reclassification due to PFRS 9 24,260,000 − −
(Note 17) 4,320,000 − −
Balance at end of period 28,580,000 − −
Remeasurement losses on defined benefit
Plans, gross of tax:
Balance at beginning of period (558,125,366) (594,056,733) (786,152,049)
Remeasurement gains on defined
benefit plans during the period (Note 31) 301,602,694 35,931,367 192,095,316
Balance at end of period (256,522,672) (558,125,366) (594,056,733)
Income tax effect 76,956,802 167,437,610 178,217,020
Balance at end of period (179,565,870) (390,687,756) (415,839,713)
(150,985,870) (390,687,756) (415,839,713)
P
=2,334,566,528 =492,151,622
P =1,867,734,216
P
The Group does not recognize income tax on cumulative translation adjustments.
*SGVFS035342*
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The breakdown and movement of other comprehensive income attributable to non-controlling

interests follows:

Item not to be reclassified to profit or loss in
subsequent periods:
Remeasurement losses on defined benefit
Plans, gross of tax:
Balance at beginning of period (P
= 953,725) (P
=4,566,566) (P
=4,566,566)
Remeasurement gain on defined
benefit plans during the period (Note 31) (1,383,227) 3,612,841 –
Balance at end of period (2,336,952) (953,725) (4,566,566)
Income tax effect 701,086 286,118 1,369,970
(P
= 1,635,866) (P
=667,607) (P
=3,196,596)
24. Sale of Goods and Services/Cost of Sales
Sale of goods and services include revenue from tolling services amounting to P
=241.8 million,
P P35.6 million for the years ended December 31, 2018 and 2017, and the three-
month period ended December 31, 2016, respectively.
Cost of sales account consists of:

Raw materials used P
=61,935,144,153 =58,991,536,243
P =14,179,507,687
P
Direct labor 6,229,393,398 5,788,350,160 1,298,162,777
Overhead costs 23,292,309,420 20,862,774,466 5,495,527,685
Total manufacturing costs 91,456,846,971 85,642,660,869 20,973,198,149
Goods in-process (218,195,227) 3,638,910 25,170,993
Cost of goods manufactured 91,238,651,744 85,646,299,779 20,998,369,142
Finished goods (906,082,403) 47,055,455 145,011,251
P
=90,332,569,341 =85,693,355,234
P =21,143,380,393
P
The Group’s raw materials used include raw materials and container and packaging materials
inventory.
Overhead costs are broken down as follows:

Utilities P
=7,898,234,689 =7,576,345,534
P =2,143,711,872
P
Depreciation and amortization (Note 27) 5,548,177,852 5,377,003,923 1,333,371,293
Personnel expenses (Note 28) 3,344,085,895 3,112,919,756 693,833,436
Repairs and maintenance 2,943,488,316 2,548,246,214 767,279,515
Security and other contracted services 722,503,684 649,866,606 152,542,298
Rental expense 523,104,472 513,373,944 123,876,139
Insurance 192,985,628 198,832,730 53,887,701
Handling and delivery charges 176,880,414 185,825,028 43,430,837
Research and development 86,766,264 82,323,639 23,745,975
Others 1,856,082,206 618,037,092 159,848,619
P
=23,292,309,420 =20,862,774,466
P =5,495,527,685
P
Others include excise taxes amounting to =

P1.2 billion for the year ended December 31, 2018 and nil
for the year ended December 31, 2017 and three-month period ended December 31, 2016.
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25. Selling and Distribution Costs

Freight and other selling expenses P
=8,640,063,341 =8,836,677,237
P =2,030,121,733
P
Advertising and promotions 7,105,834,748 7,602,693,478 1,793,559,907
Personnel expenses (Note 28) 2,475,786,677 2,333,202,923 593,189,775
Depreciation and amortization (Note 27) 219,016,116 239,982,836 56,195,739
Repairs and maintenance 131,244,077 96,269,637 28,527,609
Others 147,613,894 142,050,101 40,188,364
P
=18,719,558,853 =19,250,876,212
P =4,541,783,127
P
26. General and Administrative Expenses

Personnel expenses (Note 28) P
=2,882,430,173 =2,946,018,579
P =626,564,581
P
Depreciation and amortization (Note 27) 602,581,876 487,076,600 117,351,532
Security and contractual services 285,204,116 263,010,037 30,137,131
Taxes, licenses and fees 256,080,911 245,171,407 30,797,104
Repairs and maintenance 243,392,263 142,522,762 51,275,075
Rental expense (Note 36) 236,787,812 214,483,196 68,745,299
Professional and legal fees 217,085,528 201,415,585 93,634,485
Travel and transportation 150,412,629 160,850,872 35,127,969
Communication 122,195,855 140,911,147 25,701,864
Utilities 60,836,183 57,251,993 17,512,494
Stationery and office supplies 30,784,674 29,591,597 8,955,946
Donations and contributions 29,603,765 7,233,729 2,009,503
Others 219,812,560 215,888,303 61,290,863
P
=5,337,208,345 =5,111,425,807
P =1,169,103,846
P
Others expenses include insurance, memberships, and representation and entertainment related to
general and administrative functions.
27. Depreciation and Amortization
The breakdown of consolidated depreciation and amortization follows:

Cost of sales (Notes 13 and 24) P
=5,548,177,852 =5,377,003,923
P =1,333,371,293
P
Selling and distribution costs
(Notes 13 and 25) 219,016,116 239,982,836 56,195,739
(Notes 13, 15, 17 and 26) 602,581,876 487,076,600 117,351,532
P
=6,369,775,844 =6,104,063,359
P =1,506,918,564
P
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28. Personnel Expenses

Salaries and wages P
=6,278,052,294 =5,902,127,792
P =1,391,539,768
P
Other employee benefits 2,247,665,666 2,322,941,873 476,834,683
Pension expense (Note 31) 176,584,785 167,071,593 45,213,341
P
=8,702,302,745 =8,392,141,258
P =1,913,587,792
P
The breakdown of personnel expenses follows:

Cost of sales (Note 24) P
=3,344,085,895 =3,112,919,756
P =693,833,436
P
Selling and distribution costs (Note 25) 2,475,786,677 2,333,202,923 593,189,775
(Note 26) 2,882,430,173 2,946,018,579 626,564,581
P
=8,702,302,745 P8,392,141,258
= =1,913,587,792
P
29. Finance Revenue

Bank interest income (Note 7) P=326,978,321 =212,661,705
P =49,947,558
P
Dividend income (Note 8) 32,302,870 12,921,148 −
P=359,281,191 =225,582,853
P =49,947,558
P
30. Finance Costs
This account consists of finance costs arising from:

=1,354,936,980 =1,239,928,198
P =274,309,463
P
Short-term debts (Note 18) 134,922,658 66,560,687 13,967,106
Net interest on net pension liability
(Note 31) 8,751,555 9,068,871 3,285,987
Others (Notes 20 and 21) 163,089,200 111,772,070 47,028,764
P
=1,661,700,393 =1,427,329,826
P =338,591,320
P
Others include unamortized debt issue costs recognized as expense on pretermination of NZD loan,
interests incurred on liabilities under trust receipts, amortization of asset retirement obligation and
other financing charges.
*SGVFS035342*
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31. Pension Costs
The Group has a funded, noncontributory defined benefit retirement plan covering all its employees.
The pension funds are being administered and managed through JG Summit Multi-Employer
Retirement Plan, with Robinsons Bank Corporation (RBC) as Trustee. The plan provides for
retirement, separation, disability and death benefits to its members. The Group, however, reserves
the right to discontinue, suspend or change the rates and amounts of its contributions at any time on
account of business necessity or adverse economic conditions. The retirement plan has an Executive
Retirement Committee that is mandated to approve the plan, trust agreement, investment plan,
including any amendments or modifications thereto, and other activities of the Plan. Certain
members of the BOD of the Ultimate Parent Company are represented in the Executive Retirement
Committee. RBC manages the funds based on the mandate as defined in the trust agreement.
Under the existing regulatory framework, Republic Act (RA) 7641, the Philippine Retirement Pay
Law, requires a provision for retirement pay to qualified private sector employees in the absence of
any retirement plan in the entity, provided however that the employee’s retirement benefits under any
collective bargaining and other agreements shall not be less than those provided under law. The law
does not require minimum funding of the plan. The Parent Company and all of its subsidiaries meet
the minimum retirement benefit under RA 7641.
Net pension asset (liability) included in the consolidated statements of financial position follow:
2018 2017
Pension asset (Note 17) P
=15,589,696 =–
P
Pension liability (Note 21) (21,967,651) (170,807,825)
(P
=6,377,955) (P
=170,807,825)
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Changes in net defined benefit liability of funded funds of the Group are as follows:
2018
Net benefit cost in consolidated statements of income Remeasurements in other comprehensive income
Return on
plan assets Actuarial Actuarial
(excluding changes Actuarial changes
amount arising from changes arising from
Current included in changes in arising from changes in Asset and
January 1, service cost Finance cost net interest experience demographic financial Liabilities December 31,
2018 (Note 28) (Note 30) Subtotal Benefits paid cost) adjustments assumptions assumptions Subtotal Contributions Acquired 2018
Present value of defined
benefit obligation P
= 2,250,032,759 P
= 176,584,785 P
= 121,634,967 P
= 298,219,752 (P
= 145,747,035) =
P− (P
= 62,574,266) P
= 466,322 (P
= 283,129,138) (P
= 345,237,082) (P
= 213,268) P
= 3,551,880 P
= 2,060,607,006
Fair value of plan assets (2,079,224,934) – (112,883,412) (112,883,412) 145,747,035 45,017,615 – – – 45,017,615 (51,363,797) (1,521,558) (2,054,229,051)
P
= 170,807,825 P
= 176,584,785 P
= 8,751,555 P
= 185,336,340 =
P− P
= 45,017,615 (P
= 62,574,266) P
= 466,322 (P
= 283,129,138) (P
= 300,219,467) (P
= 51,577,065) P
= 2,030,322 P
= 6,377,955
2017
Net benefit cost in consolidated statements of income Remeasurements in other comprehensive income
Return on
plan assets Actuarial Actuarial
(excluding changes Actuarial changes
amount arising from changes arising from
Current included in changes in arising from changes in Asset and
January 1, service cost Finance cost net interest experience demographic financial Liabilities December 31,
2017 (Note 28) (Note 30) Subtotal Benefits paid cost) adjustments assumptions assumptions Subtotal Contributions Acquired 2017
Present value of defined
benefit obligation P
=2,268,007,023 P
=167,071,593 P
=114,314,355 P
=281,385,948 (P
= 269,870,853) =
P− P
=30,095,758 P
=29,621,518 (P
= 89,206,635) (P
= 29,489,359) =
P− =
P– P
=2,250,032,759
Fair value of plan assets (2,100,343,966) − (105,245,484) (105,245,484) 269,870,853 (10,054,849) − − − (10,054,849) (133,451,488) – (2,079,224,934)
P
=167,663,057 P
=167,071,593 P
=9,068,871 P
=176,140,464 =
P− (P
= 10,054,849) P
=30,095,758 P
=29,621,518 (P
= 89,206,635) (P
= 39,544,208) (P
= 133,451,488) =
P– P
=170,807,825
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The fair value of net plan assets of the Group by each classes as at the end of the reporting period are
as follows:
2018 2017
Assets
Cash and cash equivalents (Note 34) =445,167,836
P =661,849,930
P
Loans receivable 240,570,000 −
Financial assets at FVOCI 872,101,658 –
AFS investments – 379,861,432
Investments at amortized cost 336,285,640 −
HTM investments − 887,146,600
Interest receivable 16,307,541 7,135,297
Prepaid taxes 759,980 197,391
Land 143,201,000 143,201,000
2,054,393,655 2,079,391,650
Liabilities
Accrued trust and management fees 164,603 166,716
=2,054,229,052
P =2,079,224,934
P
The costs of defined benefit pension plan as well as the present value of the pension obligation are
determined using actuarial valuations. The actuarial valuation involves making various assumptions.
The principal assumptions used in determining pension for defined benefit plans are as follows:
Parent Company NURC HURC CCPI
2018 2017 2018 2017 2018 2017 2018 2017
Discount rate 7.33% 5.71% 7.31% 5.76% 7.40% – – 5.23%
Salary increase 5.70% 5.70% 5.70% 5.70% 5.70% – – 5.70%
The overall expected rate of return on assets is determined based on the market expectation prevailing
on that date, applicable to the period over which the obligation is to be settled.
The sensitivity analysis below has been determined based on reasonably possible changes of each
significant assumption on the defined benefit obligation as of the reporting period, assuming all other
assumptions were held constant:
Parent Company NURC HURC CCPI
Increase
(Decrease) 2018 2017 2018 2017 2018 2017 2018 2017
Discount rate 1.00% (P
=143,013,836) (P
=167,993,526) (P
=2,452,824) (P
=2,635,011) (P
= 328,428) =–
P =
P– (P
=2,836,472)
(1.00%) 163,812,150 194,071,843 2,798,885 3,078,561 390,430 – – 3,446,967
Salary increase 1.00% 177,988,158 206,528,263 3,022,258 3,246,644 419,502 – – 3,564,423

(1.00%) (157,768,850) (181,862,773) (2,688,918) (2,824,060) (357,295) – – (2,982,661)
The Group expects to contribute P

=170.5 million in the pension fund in 2019.
Shown below is the maturity analysis of the Group’s expected (undiscounted) benefit payments:
2018 2017
Less than one year P172,255,639
= P200,075,413
=
More than one year to five years 947,528,189 815,130,976
More than five years to 10 years 1,409,906,313 1,452,708,067
More than 10 years to 15 years 1,711,149,123 1,523,945,706
More than 15 years to 20 years 1,814,430,836 1,662,775,069
More than 20 years 5,100,579,845 4,718,097,211
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Shown below is the average duration of the defined benefit obligation at the end of the reporting
period:
2018 2017
(Years)
Parent Company 18 18
NURC 17 17
HURC 21 –
CCPI – 23
32. Income Taxes
Provision for income tax consists of:

Current P
=2,004,462,439 =2,584,562,832
P =533,905,331
P
Deferred 77,631,388 212,923,469 233,589,768
P
=2,082,093,827 =2,797,486,301
P =767,495,099
P
Components of the Group’s net deferred tax assets and liabilities follow:
Net deferred tax assets Net deferred tax liabilities

2018 2017 2018 2017
Deferred tax assets on:
Net unrealized foreign
exchange loss P
=– =21,534,393
P P
=– =−
P
Pension liabilities 79,085,718 67,546,081 144,652,177 128,290,055
Nondeductible accruals – − 214,771,891 219,029,961
Leases 147,408 , 11,525,815 13,857,605
Impairment losses on trade
receivables and property
and equipment 100,852,134 100,852,134 – −
Past service cost – 75,505,520 – −
Inventory write-downs 27,377,429 27,377,429 5,961,639 4,634,232
Foreign subsidiaries 100,068,558 33,866,361 – 15,900,394
Unearned revenue – , 22,726,694 22,726,694
NOLCO 36,499,802 41,745,235 – −
MCIT 34,312 – – –
Others – 4,242,256 – 12,083,956
344,065,361 372,669,409 399,638,216 416,522,897
Deferred tax liabilities on:
Gain arising from changes in
fair value less estimated
point-of-sale costs of
swine stocks 10,973,879 151,215,472 – −
Borrowing costs 1,977,244 4,537,603 – −
Accelerated depreciation – − 506,773,573 543,986,501
Intangibles – − 2,965,938,522 2,987,529,285
Undistributed income of
foreign subsidiaries – − 708,771,887 651,315,255
Foreign subsidiaries 468,328 − 446,906,513 495,207,481
Net unrealized foreign
exchange gain 135,159,925 – – –
148,579,376 155,753,075 4,628,390,495 4,678,038,522
Net deferred tax assets (liabilities) P
=195,485,985 =216,916,334
P (P
= 4,228,752,279) (P
=4,261,515,625)
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As of December 31, 2018 and 2017, the Group’s subsidiaries did not recognize deferred tax assets
amounting to =
P231.6 million and P=434.6 million, respectively, since management believes that future
taxable income will not be available to allow all or part of the deferred tax assets to be utilized.
Reconciliation between the Group’s statutory income tax rate and the effective income tax rate
follows:

Statutory income tax rate 30.00% 30.00% 30.00%
Increase (decrease) in tax rate resulting from
Income exempt from tax (2.64) (1.42) (1.96)
Interest income subjected to final tax (0.31) (0.23) (0.30)
Nondeductible interest expense 0.13 0.09 0.12
Equity in net income of a joint venture (0.34) (0.60) (0.46)
Net income of subsidiaries with
different tax rate (8.26) (8.95) (5.57)
Change in value of financial assets
at FVPL 0.09 (0.15) 0.04
Others (0.64) 1.31 1.99
Effective income tax rate 18.03% 20.05% 23.86%
Under Philippine tax laws, the Group is subject to income taxes, as well as other taxes (presented as
‘Taxes and licenses’ in the consolidated statements of income). Other taxes paid consist principally
of documentary stamp taxes, real estate taxes and municipal taxes.
Income taxes include the minimum corporate income tax (MCIT), regular corporate income tax
(RCIT), final tax paid at the rate of 20.0% for peso deposits and 7.5% for foreign currency deposits
on gross interest income from bank deposits and short-term investments.
Current tax regulations provide that the RCIT rate shall be 30.0% and interest allowed as a deductible
expense is reduced by 33.0% of interest income subjected to final tax beginning January 1, 2009.
Current tax regulations also provide for rules on the imposition of a 2.0% MCIT on the gross income
as of the end of the taxable year beginning on the fourth taxable year immediately following the
taxable year in which the Group commenced its business operations. Any excess MCIT over the
RCIT can be carried forward on an annual basis and credited against the RCIT for the three
immediately succeeding taxable years. In addition, NOLCO is allowed as a deduction from taxable
income in the next three years from the date of inception.
Current tax regulations further provides that an OSD equivalent to 40.0% of gross income may be
claimed as an alternative deduction in computing for the RCIT. For the years ended
December 31, 2018 and 2017, and the three-month period ended December 31, 2016, the Group did
not claim the OSD in lieu of the itemized deductions.
Entertainment, Amusement and Recreation (EAR) Expenses

Current tax regulations define expenses to be classified as EAR expenses and set a limit for the
amount that is deductible for tax purposes. EAR expenses are limited to 0.5% of net sales for sellers
of goods or properties or 1.0% of net revenue for sellers of services. For sellers of both goods or
properties and services, an apportionment formula is used in determining the ceiling on such
expenses. The Group recognized EAR expenses (included under ‘General and administrative
expenses’ in the consolidated statements of income) amounting to P =57.5 million, P=61.9 million and
P
*SGVFS035342*
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MCIT
An MCIT of 2.0% on modified gross income is computed and compared with the RCIT. Any excess
of the MCIT over RCIT is deferred and can be used as a tax credit against future income tax liability
for the next three years.
33. Earnings Per Share
The following reflects the income and share data used in the basic/dilutive EPS computations:

Net income attributable to
equity holders of the parent P
=9,204,306,540 =10,888,080,693
P =2,402,116,084
P
Weighted average number
of common shares 2,204,161,868 2,204,161,868 2,204,161,868
Basic/dilutive EPS P
=4.18 =4.94
P =1.09
P
The weighted average number of common shares excludes the treasury shares acquired during the
year. There have been no other transactions involving ordinary shares or potential ordinary shares
between the reporting date and the date of completion of these consolidated financial statements.
There were no potential dilutive shares for the years ended December 31, 2018 and 2017, and the
three-month period ended December 31, 2016.
34. Related Party Transactions
The Group, in the regular conduct of its business, has entered into transactions with JGSHI, its
ultimate parent, and other related parties principally consisting of sales, purchases, advances and
reimbursement of expenses, regular banking transactions, leases and, management and administrative
service agreements. Transactions with related parties are generally settled in cash.
*SGVFS035342*
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Intercompany transactions with subsidiaries are eliminated in the accompanying consolidated financial statements. Details of related party transactions are as follows:
December 31, 2018

Trade Non-trade
Receivable Receivable
Cash and (Payable) - net (Payable) - net
Amount/ Cash Equivalents (Notes 10 (Notes 10
Related Party Category/Transaction Volume (Note 7) and 19) and 19) Terms Conditions
Ultimate Parent Company Advances P
=− P
=− P
=− P
= 298,465,468 On demand; Unsecured;
non-interest bearing no impairment
Rental expense 191,681,600 − − −
Entity under common control

Due from related parties Advances − − − 547,336,161 On demand; Unsecured;
Sales 1,120,358,698 − 103,086,078 −
On demand; Unsecured;
Rental income 37,327,677 − − −
Engineering services 12,918,430 − − −
Contracted services 116,083,484 − − −
Due to related parties − − − (164,624,582) On demand Unsecured
Cash and cash equivalents Cash in bank 145,020,946 335,598,449 − − Interest-bearing at Unsecured;
prevailing market rate; no impairment
due and demandable
Money market placements (1,832,041,774) 2,216,003,012 − − Interest-bearing at Unsecured;
due from 7 to 90 days; with
interest ranging from
1.5% to 5.5%
Interest income 75,013,989 − 3,616,138 − Due from 7 to 90 days Unsecured;
no impairment
Subsidiaries −
Due from related parties Sales 819,324,713 − 124,600,418 − On demand; Unsecured;
Rental income 20,934,624 − − − non-interest bearing no impairment
−
Due to related parties Purchases 5,927,521,672 − (583,395,154) − On demand Unsecured
−
Joint Venture Purchases 1,045,752,811 − (82,456,142) − 1 to 30 days; Unsecured
Sales 47,496,986 − 7,316,815 − non-interest bearing
Rental income 917,280 − − −
*SGVFS035342*
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December 31, 2017

Trade Non-trade
Ultimate Parent Company Advances =
P− =
P− =
P− P
=439,409,131 On demand; Unsecured;

Sales 995,485,756 − 77,348,339 − On demand; Unsecured;
Contracted services 103,675,870 − − −
Due to related parties , − − (106,452,798) On demand Unsecured
Cash and cash equivalents Cash in bank (205,215,801) 190,577,503 − − Interest-bearing at Unsecured;
due and demandable
Money market placements 1,512,724,554 4,048,044,786 − − Interest-bearing at Unsecured;
1.2% to 3.4%
Interest income 30,148,933 , 3,401,689 , Due from 2 to 40 days Unsecured;
no impairment
Subsidiaries
Rental income 17,126,605 − − − non-interest bearing no impairment
Due to related parties Purchases 5,102,874,725 − (339,334,405) − On demand Unsecured
Joint Venture Purchases 1,384,805,724 − (69,986,122) − 1 to 30 days; Unsecured

*SGVFS035342*
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December 31, 2016

Trade Non-trade
Ultimate Parent Company Advances =
P− =
P− =
P− P
=833,498,102 On demand; Unsecured;

Sales 172,923,852 − 154,694,305 − On demand; Unsecured;
Due to related parties , − − (75,161,893) On demand Unsecured
Cash and cash equivalents Cash in bank 206,671,389 395,793,304 − − Interest-bearing at Unsecured;
due and demandable
Money market placements 1,952,052,684 2,535,320,232 − − Interest-bearing at Unsecured;
1.5% to 2.0%
Interest receivable 2,524,928 , 3,254,609 , Due from 3 to 87 days Unsecured;
no impairment
Subsidiaries
Dividend income 237,150,000 − 237,150,000 − non-interest bearing no impairment
Rental income 3,973,435 − −
Due to related parties Purchases 1,231,915,708 − − (310,594,994) On demand Unsecured
Joint Venture Purchases 1,474,555,268 − − (249,252,030) 1 to 30 days; Unsecured

*SGVFS035342*
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The Group maintains savings and current accounts and time deposits with an entity under common
control which is a local commercial bank. Cash and cash equivalents earns interest at the prevailing
bank deposit rates.
As of December 31, 2018 and 2017, the Group has advances from stockholders amounting to
P P243.6 million, respectively (see Note 19). These advances are non-interest
bearing and payable on demand.
Transactions with the retirement plan

The Parent Company entered into an agreement to lease the land of the retirement plan for a period of
one (1) year, renewable annually. Rentals incurred amounted to =
P25.3 million and =P25.3 million for
the years ended December 31, 2018 and 2017, respectively. Terms are unsecured, noninterest-
bearing and payable on demand.
Included in the Parent Company’s retirement plan assets are special savings deposits with RBC.
In December 31, 2018 and 2017, special savings deposit with RBC amounting to = P445.2 million
and =
P657.5 million bears annual interest rates ranging from 1.5% to 5.8% and 10.0% to 3.5%,
respectively.
Compensation of Key Management Personnel

The compensation of the Group’s key management personnel by benefit type follows:

Short-term employee benefits P=291,597,774 =256,914,335
P =55,934,152
P
Post-employment benefits 81,989,490 70,445,960 17,611,490
P=373,587,264 =327,360,295
P =73,545,642
P
There are no agreements between the Group and any of its directors and key officers providing for
benefits upon termination of employment, except for such benefits to which they may be entitled
under the Group’s pension plans.
35. Registration with the BOI
Certain operations of the Parent Company are registered with the BOI as preferred pioneer and
nonpioneer activities. As registered enterprises, these entities are subject to some requirements and
are entitled to certain tax and non-tax incentives which are considered in the computation of the
provision for income tax.
Sugar Millsite - Tolong

On January 14, 2015, Sugar Millsite Tolong was registered with the BOI as an expanding producer of
raw sugar.
Under the terms of the registration and subject to certain requirements, Parent Company is entitled to
the following fiscal and non-fiscal incentives: (a) ITH for a period of three (3) years from February
2015 (as an expanding producer raw sugar) or actual start of commercial operations, whichever is
earlier but in case earlier than the date of registration; (b) importation of capital equipment, spare
parts and accessories at zero (0) duty from the date of effectivity of Executive Order (EO) No. 70 and
its implementing rules and regulations for a period of five (5) years reckoned from the date its
registration or until the expiration of EO No. 70 whichever is earlier; (c) additional deduction from
taxable income of fifty percent (50%) of the wages corresponding to the increment in number of
*SGVFS035342*
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direct labor for skilled and unskilled workers in the year of availment as against the previous year, if
the project meets the prescribed ratio of capital equipment to the number of workers set by the Board.
This may be availed of for the first five (5) year from date of registration but not simultaneously with
ITH; (d) importation of consigned equipment for a period of ten (10) years from the date of
registration, subject to posting of re-export bond; (e) tax credit equivalent to national internal revenue
taxes and duties paid on raw materials and supplies and semi-manufactured products used in
producing its export product and forming part thereof for a period of ten (10) years from start of
commercial operations; (f) exemption from wharfage dues, and any export tax, duty, impost and fee
for period of ten (10) years from the date of registration; (g) employment of foreign nationals; (h)
simplifications of customs procedures for the importation of equipment, spare parts, raw materials
and supplies.
The ITH entitlement has ended last February 14, 2018.
Sugar Millsite - Sonedco

On June 29, 2018, Sugar Millsite Sonedco was registered with the BOI as an expanding producer of
refined sugar and its by-product (molasses).
the following fiscal and non-fiscal incentives: (a) ITH for a period of three (3) years from September
2018 (as an expanding producer of refined sugar and its by-product) or actual start of commercial
operation, whichever is earlier but availment shall in no case be earlier than the data of registration;
(b) importation of capital equipment, spare parts and accessories at zero (0) duty under EO No. 22
and its implementing rules; (c) exemption from taxes and duties on imported spare parts and
consumable supplies for export producers with Customs Bonded Manufacturing Warehouse (CBMW)
exporting at least seventy percent (70%) of production; (d) additional deduction for labor expense for
a period of five (5) years from registration an amount equivalent to fifty percent (50%) of the wages
corresponding to the increment in number of direct labor for skilled and unskilled workers in the year
of availment as against the previous year, if the project meets the prescribed ratio of capital
equipment to the number of workers set by the Board. This may be availed of for the first five (5)
years from the date of registration but not simultaneously with ITH; (e) importation of consigned
equipment for a period of ten (10) years from date of registration, subject to posting of re-export
bond; (f) employment of foreign nationals; (g) simplification of customs procedures for the
importation of equipment, spare parts, raw materials and supplies; (h) exemption from wharfage dues,
and export tax duty, impost and fee for a period of ten (10) years from the data of registration; (i)
access to CBMW subject to the BOC rules and regulations, and additional deduction from taxable
income equivalent to 100% of expenses incurred in the development of necessary and major
infrastructure facilities.
The said expansion started commercial operation on November 27, 2018.
Sugar Millsite - Balayan

On September 8, 2017, Sugar Millsite Balayan was registered with the BOI as an expanding producer
of raw sugar and its by-product (molasses).
the following fiscal and non-fiscal incentives: (a) ITH for a period of three (3) years from November
2018 (as an expanding producer of raw sugar and its by-product) or actual start of commercial
operation, whichever is earlier but in no case be earlier than the data of registration; (b) importation of
capital equipment, spare parts and accessories at zero (0) duty under EO No. 22 and its implementing
rules. Only equipment directly needed and exclusively use in its operation shall be entitled to capital
equipment incentives; (c) additional deduction from taxable income of fifty percent (50%) of the
*SGVFS035342*
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wages corresponding to the increment in number of direct labor for skilled and unskilled workers in
the year of availment as against the previous year, if the project meets the prescribed ratio of capital
equipment to the number of workers set by the Board. This may be availed of for the first five (5)
years from the date of registration but not simultaneously with ITH; (d) importation of consigned
equipment for a period of ten (10) years from date of registration, subject to posting of re-export
bond; (e) employment of foreign nationals; and (f) simplification of customs procedures for the
importation of equipment, spare parts, raw materials and supplies. The said expansion will start
commercial operation early of 2019.
Cogeneration
On September 26, 2014, Cogeneration was registered with the BOI as a Renewable Energy (RE)
developer of Bagasse-fired power plant.
Under the terms of the registration and subject to certain requirements, the Parent Company is entitled
to the following fiscal and non-fiscal incentives: (a) ITH for a period of seven (7) years at which the
RE plant generated the first kilowatt-hour energy after commissioning or testing, or two months from
date of commissioning, whichever is earlier; (b) duty-free importation of RE machinery, equipment,
and materials including control and communication equipment; (c) tax exemption of carbon credits;
(d) special realty tax rates on equipment and machinery, (e) NOLCO during the first three years from
the start of commercial operation shall be carried over as a deduction from the gross income as
defined in the National Internal Revenue Code (NIRC) for the next seven (7) years immediately
following the year of such loss; (f) after availment of the ITH, the enterprise shall pay a corporate tax
of 10% on its taxable income as defined in the NIRC, provided that it shall pass on the savings to the
end users in the form of lower power rates; (g) the plant, machinery, and equipment that are
reasonably needed and actually used for the exploration, development, and utilization of RE resources
may be depreciated using a rate not exceeding twice the rate which would have been used had the
annual allowance been computed in accordance with the rules and regulations prescribed by the
Department of Finance and the provisions of the NIRC; (h) the sale of fuel or power generated by the
enterprise from renewable sources of energy such as biomass as well as its purchases of local supply
of goods, properties, and services needed for the development, construction, and installation of its
plant facilities, and the whole process of exploration and development of RE sources up to its
conversion into power shall be subject to zero percent VAT pursuant to NIRC; (i) tax credit
equivalent to 100% of the value of VAT and custom duties that would have been paid on the purchase
of RE machinery, equipment, materials and parts had these items been imported shall be given to the
enterprise that purchases machinery, equipment, materials and parts from a domestic manufacturer.
Distillery
On August 28, 2013, Distillery was registered with the BOI as a manufacturer of bio-ethanol (fuel
grade ethanol).
Under the terms of the registration and subject to certain requirements, the Parent Company is
entitled to the following fiscal and non-fiscal incentives: (a) ITH for a period of seven (7) years from
March 2014 or date of commissioning, whichever is earlier; (b) duty-free importation of RE
machinery, equipment, and materials including control and communication equipment; (c) tax
exemption of carbon credits; (d) special realty tax rates on equipment and machinery (e) NOLCO
during the first three years from the start of commercial operation shall be carried over as a deduction
from the gross income as defined in the NIRC for the next seven (7) years immediately following the
year of such loss; (f) after availment of the ITH, the enterprise shall pay a corporate tax of 10.0% on
its taxable income as defined in the NIRC, provided that it shall pass on the savings to the end users
in the form of lower power rates; (g) the plant, machinery, and equipment that are reasonably needed
and actually used for the exploration, development, and utilization of RE resources may be
depreciated using a rate not exceeding twice the rate which would have been used had the annual
*SGVFS035342*
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allowance been computed in accordance with the rules and regulations prescribed by the Department
of Finance and the provisions of the NIRC. The enterprise that applies for accelerated depreciation
shall no longer be eligible to avail of the ITH; (h) the sale of fuel or power generated by the
enterprise from renewable sources of energy such as biomass as well as its purchases of local supply
of goods, properties, and services needed for the development, construction, and installation of its
plant facilities, and the whole process of exploration and development of RE sources up to its
conversion into power shall be subject to zero percent VAT pursuant to NIRC; (i) tax credit
equivalent to 100.0% of the value of VAT and custom duties that would have been paid on the
purchase of RE machinery, equipment, materials and parts had these items been imported shall be
given to the enterprise that purchases machinery, equipment, materials and parts from a domestic
manufacturer.
Robina Farms (RF) - Poultry

On July 23, 2018, RF - Poultry was registered as an expanding producer of table eggs for the new
commercial layer houses, with a non-pioneer status.
RF- Poultry is eligible to the grant of the following incentives: (a) ITH for three (3) years from July
2018 or actual start of commercial operations, whichever is earlier but shall not be earlier than the
date of registration. Income qualified for ITH shall be limited to the income directly attributable to
the eligible revenue generated from registered project; (b) exemption from taxes and duties on
imported spare parts and consumable supplies with Customs Bonded Manufacturing Warehouse
(CBMW) exporting at least seventy percent (70%) of production; (c) additional deduction for a
period of five (5) years from registration an amount equivalent to fifty percent (50%) of wages
corresponding to the increment in number of direct labor for skilled and unskilled workers in the year
of availment as against the previous year; (d) importation of consigned equipment for a period of ten
(10) years from date of registration subject to posting of re-export bond; (e) employment of foreign
nationals; (f) simplification of customs procedures for the importation of equipment, spare parts, raw
materials and supplies; (g) exemption from wharfage dues, and any export tax, duty, impost and fee
for a period of ten years from date of registration; (h) access to CBMW subject to customs rules and
regulations; and (i) additional deduction from taxable income equivalent to 100% of expenses
incurred in the development of necessary and major infrastructure facilities.
On January 30, 2008, RF - Poultry was registered with the BOI as an expanding producer of parent
stock day-old chicks. On June 4 of the same year, it was registered as a new producer of table eggs
and its by-products. Both activities are on a nonpioneer status.
Under the terms of the registration and subject to certain requirements, RF - Poultry is entitled to the
following fiscal and non-fiscal incentives: (a) ITH for a period of three (3) years from October 2008
(as an expanding producer of parent stock day-old chicks) and for a period of four (4) years from
October 2009 (as a new producer of table eggs and its by-products); (b) additional deduction from
taxable income on wages subject to certain terms and conditions; (c) employment of foreign
nationals; (d) tax credit equivalent to the national internal revenue taxes and duties paid on raw
materials and supplies and semi-manufactured products used in producing its export product and
forming part thereof for a period of ten (10) years from start of commercial operations;
(e) simplification of customs procedures for the importation of equipment, spare parts, raw materials
and supplies; (f) access to CBMW subject to Custom rules and regulations, provided firm exports at
least 70.0% of production output; (g) exemption from wharfage dues, any export tax, duty, impost
and fees for a period of ten (10) years from date of registration; (h) importation of consigned
equipment for a period of ten (10) years from the date of registration, subject to the posting of re-
export bond; (i) exemption from taxes and duties on imported spare parts and consumable supplies
for export producers with CBMW exporting at least 70.0% of production; (j) tax and duty exemption
on the imported breeding stocks and genetic materials within ten (10) years from the date of
*SGVFS035342*
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registration; and (k) tax credit on tax and duty portion of domestic breeding stocks and genetic
materials within ten (10) years from the date of registration.
Robina Farms (RF) - Hogs

On January 30, 2008, RF - Hogs was registered with the BOI as an expanding producer of finisher
hogs in RF 11, Antipolo City and RF 12, Bulacan on a nonpioneer status. Under the terms of the
registration and subject to certain requirements, RF - Hogs is entitled to the following fiscal and non-
fiscal incentives: (a) ITH for a period of three (3) years from October 2009 but only from the sales
generated from the registered projects; (b) additional deduction from taxable income on wages
subject to certain terms and conditions; (c) employment of foreign nationals; (d) tax credit equivalent
to the national internal revenue taxes and duties paid on raw materials and supplies and semi-
manufactured products used in producing its export product and forming part thereof for a period of
ten (10) years from start of commercial operations; (e) simplification of customs procedures for the
importation of equipment, spare parts, raw materials and supplies; (f) access to Customs Bonded
Manufacturing Warehouse (CBMW) subject to Custom rules and regulations, provided firm exports
at least 70% of production output; (g) exemption from wharfage dues, any export tax, duty, impost
and fees for a period of ten (10) years from date of registration; (h) importation of consigned
equipment for a period of ten (10) years from the date of registration, subject to the posting of re-
export bond; (i) exemption from taxes and duties on imported spare parts and consumable supplies
for export producers with CBMW exporting at least 70% of production; (j) tax and duty exemption on
the imported breeding stocks and genetic materials within ten (10) years from the date of registration;
and (k) tax credit on tax and duty portion of domestic breeding stocks and genetic materials within
ten (10) years from the date of registration.
36. Commitments and Contingencies
Milling Contracts
Milling contracts with various planters provide for a 60%-70% share to the planters (including related
parties) and 30%-40% share to the Group of sugar and molasses produced from sugar canes
milled. The Sugar Industry Development Act of 2015 provides that, to ensure the immediate
payment of farmers and secure their income from sugarcane, farmers may enter into any payment
method with the sugar mill.
Sugar under Custody but not owned

As of December 31, 2018 and 2017, the Group has in its custody sugar owned by several quedan
holders with volume of 502,051 Lkg and 460,835 Lkg, respectively. The said volume of sugar is not
reflected in the statement of financial position since this is not owned by the Group. The Group is
accountable to both quedan holders and sugar traders for the value of these trusteed sugar or their
sales proceeds.
Operating Lease Commitments - Group as a Lessor

The Group has entered into (1) one-year renewable, noncancellable leases with various related parties
covering certain land and buildings where office spaces are located. Future minimum rentals
receivable under noncancellable operating leases amounted to P =73.3 million, =
P63.7 million and
P
*SGVFS035342*
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Operating Lease Commitments - Group as a Lessee

The Group leases land where certain of its facilities are located. The operating lease agreements are
for periods ranging from one to five years from the date of the contracts and are renewable under
certain terms and conditions. The Group’s rentals incurred on these leases (included under ‘Selling
and distribution costs’ and ‘General and administrative expenses’ in the consolidated statements of
income) amounted to P =937.6 million, P
=976.1 million and = P228.5 million for the years ended
December 31, 2018 and 2017, and the three-month period ended December 31, 2016, respectively.
Future minimum rentals payable under noncancellable operating leases follow:

Within one year P=752,048,217 =792,639,232
P =283,789,390
P
After one year but not more than
five years 1,362,757,872 1,708,022,477 1,010,214,435
Five (5) years or more 464,770,770 506,731,716 436,059,899
P
=2,579,576,859 =3,007,393,425
P =1,730,063,724
P
Finance Lease Commitments - Group as a Lessee

Some of the Group’s subsidiaries were granted land usage rights from private entities. The land
usage right represents the prepaid amount of land lease payments. The right is currently being
amortized by the Group on a straight-line basis over the term of the right ranging from 30 to 50 years.
The amortization on these leases (included under ‘General and administrative expenses’ in the
consolidated statements of income) amounted to = P2.5 million, =
P2.4 million and =P0.6 million for the
years ended December 31, 2018 and 2017, and the three-month period ended December 31, 2016,
respectively.
Others
The Group has various contingent liabilities arising in the ordinary conduct of business which are
either pending decision by the courts, under arbitration or being contested, the outcome of which are
not presently determinable. In the opinion of management and its legal counsel, the eventual liability
under these lawsuits or claims, if any, will not have a material or adverse effect on the Group’s
financial position and results of operations. The information usually required by PAS 37, Provisions,
Contingent Liabilities and Contingent Assets, is not disclosed on the grounds that it can be expected
to prejudice the outcome of these lawsuits, claims, arbitration and assessments.
37. Supplemental Disclosure to Cash Flow Statements
The Group’s noncash activities are as follows:

Cumulative translation adjustment (Note 23) = 1,630,309,574
P (P
=1,392,324,892) =1,200,565,078
P
Accrued earn-out of PSFL (Note 16) − (51,516,704) −
Reclassifications between accounts considered in the preparation of cash flow statement for the year
ended December 31, 2018 include: (a) from investment properties to property, plant and equipment
with book value of =P5.6 million (see Note 17); and (b) from investment in joint ventures to
investment in subsidiaries amounting to P
=222.8 million (see Note 16).
*SGVFS035342*
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The table below provides for the changes in liabilities arising from financing activities:
Total liabilities from

Short-term debt Long-term debt financing activities
January 1, 2018 =2,009,317,911
P =33,225,962,388
P =35,235,280,299
P
Cash flows from availment 4,650,000,000 14,226,028,915 20,476,028,915
Cash flows from settlement (4,050,000,000) (15,356,761,921) (21,006,761,921)
Foreign exchange movement/CTA (147,932,805) (462,062,230) (609,995,035)
Others – (176,043,270) (176,043,270)
December 31, 2018 =2,461,385,106
P =31,457,123,882
P =33,918,508,988
P
38. Approval for the Release of the Financial Statements
The accompanying consolidated financial statements of the Group were authorized for issue by the
AC and the BOD on April 5, 2019.
*SGVFS035342*
SyCip Gorres Velayo & Co. Tel: (632) 891 0307 BOA/PRC Reg. No. 0001,
6760 Ayala Avenue Fax: (632) 819 0872 October 4, 2018, valid until August 24, 2021
1226 Makati City ey.com/ph SEC Accreditation No. 0012-FR-5 (Group A),
Philippines November 6, 2018, valid until November 5, 2021
- 164 -
INDEPENDENT AUDITORS’ REPORT

ON SUPPLEMENTARY SCHEDULE
The Stockholders and the Board of Directors

8th Floor, Tera Tower, Bridgetowne
E. Rodriguez, Jr. Avenue (C5 Road)
Ugong Norte, Quezon City, Metro Manila
We have audited, in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Universal Robina Corporation and Subsidiaries (the Group) as at December 31, 2018 and
2017, for the years ended December 31, 2018 and 2017 and for the period October 1, 2016 to
December 31, 2016, included in this Form 17-A and have issued our report thereon dated April 5, 2019.
Our audits were made for the purpose of forming an opinion on the basic consolidated financial
statements taken as a whole. The schedules listed in the Index to Consolidated Financial Statements and
Supplementary Schedules are the responsibility of the Group’s management. These schedules are
presented for purposes of complying with Securities Regulation Code Rule 68, As Amended (2011) and
are not part of the basic consolidated financial statements. These schedules have been subjected to the
auditing procedures applied in the audit of the basic consolidated financial statements and, in our opinion,
fairly state, in all material respects, the information required to be set forth therein in relation to the basic
consolidated financial statements taken as a whole.
SYCIP GORRES VELAYO & CO.
Miguel U. Ballelos, Jr.

Partner
CPA Certificate No. 109950
SEC Accreditation No. 1566-AR-1 (Group A),
April 3, 2019, valid until April 2, 2022
Tax Identification No. 241-031-088
BIR Accreditation No. 08-001998-114-2019,
January 28, 2019, valid until January 27, 2022
PTR No. 7332525, January 3, 2019, Makati City
April 5, 2019
*SGVFS035342*
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Universal Robina Corporation and Subsidiaries

Schedule A - Financial Assets
December 31, 2018
Name of Issuing Entity and Number of Shares or Amount Shown in Valued Based on Income Received and
Description of Each Issue Principal Amount of the Balance Sheet/ Market Quotations at Accrued (including
Bonds and Notes Notes Balance Sheet Date Dividends Received)
Various/Equity Securities =470,453,416

P =470,453,416
P =32,302,870
P
See Note 8 of the Consolidated Financial Statements.
*SGVFS035342*
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Schedule B - Amounts Receivable from Directors, Officers, Employees, Related Parties
and Principal Stockholders (Other than Related Parties)
December 31, 2018
Balance at Balance at End of Period

Name of Debtor Beginning of Additions Collections Current Non-Current Total
Period

employees =110,231,826
P =31,975,041
P =–
P =142,206,867
P =–
P =142,206,867
P
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Schedule C - Amounts Receivable from Related Parties Which are Eliminated
During the Consolidation of Financial Statements
December 31, 2018
Name and Balance at Amounts Amounts Balance at End of Period

Designation of Debtor Beginning of Additions Collected Others Written Off Current Non-Current Total
Period
Calbee URC =–
P =661,281
P =–
P =–
P =–
P =661,281
P =–
P =661,281
P
Hunt-Universal Robina –
Corporation – – (341,878,993) – – (341,878,993) (341,878,993)
CFC Corporation 171,199,593 – (13,194,081) – – 158,005,512 – 158,005,512
CFC Clubhouse
Property, Inc. (249,973,452) – – 249,973,452 – – – –
URC International
Company, Ltd. and
its Subsidiaries 3,609,052,525 270,634,171 – – – 3,879,686,696 – 3,879,686,696
Nissin - Universal
Robina Corporation 144,522,794 32,522,295 – – – 177,045,089 – 177,045,089
=3,674,801,460
P =303,817,747
P (P
=355,073,074) =249,973,452
P =– P
P =3,873,519,585 =– P
P =3,873,519,585
*SGVFS035342*
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Schedule D - Intangible Assets - Other Assets
December 31, 2018
Deductions/Amortizations Other Charges–

Description Beginning Additions Charged to cost Charged to Additions Ending
Balance at Cost and Expenses Other Accounts (Deductions) Balance
Goodwill =31,212,075,404
P =–
P (P
=17,579,587) =–
P =– P
P =31,194,495,817
Trademark 9,362,936,671 – – – 9,362,936,671
Customer relationship 2,003,044,176 – (78,862,555) – 5,212,272 1,929,393,893
Product formulation 425,000,000 – – 425,000,000
Software costs 19,055,185 11,234,200 (17,973,401) – 613,806 12,929,790
Intangible Assets =43,022,111,436
P =11,234,200
P (P
=114,415,543) =−
P =5,826,078 P
P =42,924,756,171
*SGVFS035342*
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Schedule E - Long-Term Debt
December 31, 2018
Name of Issuer and Amount Authorized Amount Shown Amount Shown

Type of Obligation By Indenture as Current as Long-term Total
Various foreign banks Not applicable =

P =31,457,123,882
P =31,457,123,882
P
See Note 20 of the Consolidated Financial Statements
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Schedule F - Indebtedness to Related Parties (Long-Term Loans from Related Companies)
December 31, 2018
Name of Related Party Balance at Beginning of Period Balance at End of Period
NONE TO REPORT
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Schedule G - Guarantees of Securities and Other Issuers
December 31, 2018
Name of Issuing Entity of Title of Issue of Total Amount Amount Owned by

Securities Guaranteed by the Company Each Class of Guaranteed and Person for which this Nature of
for which this Statement is Filed Securities Guaranteed Outstanding Statement is Filed Guarantee
NONE TO REPORT
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Schedule H - Capital Stock
December 31, 2018
Number of Shares Number of Shares

Number of Issued and Reserved for Number of Shares Held by
Title of Issue Shares Outstanding Options, Directors,
Warrants,
Authorized (Net of Treasury Conversions and Affiliates Officers and Others
Shares) Other Rights Employees
Preferred stock
-=
P1 par value 2,000,000 None – – – –
Common stock
-=
P1 par value 2,998,000,000 2,204,161,868 – 1,217,841,260 14,779,343 971,541,265
*SGVFS035342*
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SCHEDULE OF ALL THE EFFECTIVE STANDARDS

UNDER PFRS IN COMPLIANCE WITH SRC RULE 68, AS AMENDED
DECEMBER 31, 2018
List of Philippine Financial Reporting Standards (PFRS) [which consist of PFRSs and Philippine
Accounting Standards (PAS)] effective as of December 31, 2018:
PHILIPPINE FINANCIAL REPORTING STANDARDS AND

Not Early Not
INTERPRETATIONS Adopted
Adopted Applicable
Effective as of December 31, 2018
Framework for the Preparation and Presentation of Financial
Statements 
Conceptual Framework Phase A: Objectives and qualitative characteristics
PFRS Practice Statement Management Commentary 
Philippine Financial Reporting Standards
PFRS 1 First-time Adoption of Philippine Financial Reporting
(Revised) Standards

Amendments to PFRS 1 and PAS 27: Cost of an
Investment in a Subsidiary, Jointly Controlled Entity or 
Associate
Amendments to PFRS 1: Additional Exemptions for First-
time Adopters 
Amendment to PFRS 1: Limited Exemption from
Comparative PFRS 7 Disclosures for First-time Adopters 
Amendments to PFRS 1: Severe Hyperinflation and
Removal of Fixed Date for First-time Adopters 
Amendments to PFRS 1: Government Loans 
PFRS 2 Share-based Payment 
Amendments to PFRS 2: Vesting Conditions and
Cancellations 
Amendments to PFRS 2: Group Cash-settled Share-based
Payment Transactions 
Amendments to PFRS 2: Definition of Vesting Condition 
Amendments to PFRS 2: Share-based Payment,
Classification and Measurement of Share-based Payment 
Transactions
PFRS 3 Business Combinations 
(Revised)
Amendment to PFRS 3: Accounting for Contingent
Consideration in a Business Combination 
Amendment to PFRS 3: Scope Exceptions for Joint
Arrangements 
- 174 -

Not Early Not
Adopted Applicable
PFRS 4 Insurance Contracts 
Amendments to PAS 39 and PFRS 4: Financial Guarantee
Contracts

Amendments to PFRS 4: Insurance Contracts, Applying

PFRS 9, Financial Instruments, with PFRS 4
PFRS 5 Non-current Assets Held for Sale and Discontinued
Operations 
Amendments to PFRS 5: Changes in Methods of Disposal 
PFRS 6 Exploration for and Evaluation of Mineral Resources 
PFRS 7 Financial Instruments: Disclosures 
Amendments to PAS 39 and PFRS 7: Reclassification of
Financial Assets

Financial Assets - Effective Date and Transition

Amendments to PFRS 7: Improving Disclosures about
Financial Instruments

Amendments to PFRS 7: Disclosures - Transfers of
Financial Assets

Amendments to PFRS 7: Disclosures - Offsetting Financial
Assets and Financial Liabilities

Amendments to PFRS 7: Mandatory Effective Date of
PFRS 9 and Transition Disclosures 
Amendments to PFRS 7: Additional hedge accounting
disclosures (and consequential amendments) resulting from 
the introduction of the hedge accounting chapter in PFRS 9
Amendments to PFRS 7: Applicability of the Amendments
to PFRS 7 to Condensed Interim Financial Statements 
Amendments to PFRS 7: Disclosures - Servicing Contracts 
PFRS 8 Operating Segments 
Amendments to PFRS 8: Aggregation of Operating
Segments and Reconciliation of the Total of the 
Reportable Segments Assets to the Entity’s Assets
PFRS 9 PFRS 9, Financial Instruments 
Amendments to PFRS 9, Prepayment Features with
Negative Compensation 
PFRS 10 Consolidated Financial Statements 
Amendments to PFRS 10: Transition Guidance 
Amendments to PFRS 10: Investment Entities 
- 175 -

Not Early Not
Adopted Applicable
PFRS 10 Amendments to PFRS 10 and PAS 28: Sale or
(cont’d) Contribution of Assets Between an Investor and its 
Associate or Joint Venture
Amendments to PFRS 10, PFRS 12 and PAS 28
Investment Entities: Applying the Consolidation Exception 
PFRS 11 Joint Arrangements 
Amendments to PFRS 11: Joint Arrangements -
Accounting for Acquisitions of Interests in Joint 
Operations
PFRS 12 Disclosure of Interests in Other Entities 
Amendments to PFRS 12: Transition Guidance 
Amendment to PFRS 12, Clarification of the Scope of the
Standard 
PFRS 13 Fair Value Measurement (2013 Version) 
Amendment to PFRS 13: Short-term Receivables and
Payables 
Amendment to PFRS 13: Portfolio Exception 
PFRS 14 Regulatory Deferral Accounts 
PFRS 15 Revenue from Contracts with Customers 
PFRS 16 Leases 
Philippine Accounting Standards
PAS 1 Presentation of Financial Statements 
(Revised)
Amendments to PAS 32 and PAS 1: Puttable Financial
Instruments and Obligations Arising on Liquidation 
Amendments to PAS 1: Presentation of Items of Other
Comprehensive Income 
Amendment to PAS 1: Presentation of Financial
Statements – Disclosure Initiative 
PAS 2 Inventories 
PAS 7 Statement of Cash Flows 
Amendment to PAS 7: Disclosure Initiative 
PAS 8 Accounting Policies, Changes in Accounting Estimates and
Errors 
PAS 10 Events after the Reporting Date 
PAS 11 Construction Contracts 
- 176 -

Not Early Not
Adopted Applicable
PAS 12 Income Taxes 
Amendment to PAS 12 - Deferred Tax: Recovery of
Underlying Assets

Amendment to PAS 12: Recognition of Deferred Tax
Assets for Unrealized Losses 
PAS 16 Property, Plant and Equipment 
Amendment to PAS 16: Revaluation Method -
Proportionate Restatement of Accumulated Depreciation 
Amendments to PAS 16 and PAS 38: Clarification of
Acceptable Methods of Depreciation and Amortization 
Amendments to PAS 16 and PAS 41: Bearer Plants 
PAS 17 Leases 
PAS 19 Employee Benefits 
(Revised)
Amendments to PAS 19: Defined Benefit Plans:
Employee Contributions 
Regional Market Issue regarding Discount Rate 
PAS 20 Accounting for Government Grants and Disclosure of
Government Assistance 
PAS 21 The Effects of Changes in Foreign Exchange Rates 
Amendment: Net Investment in a Foreign Operation 
PAS 23 Borrowing Costs
(Revised) 
PAS 24 Related Party Disclosures 
(Revised)
Amendments to PAS 24: Key Management Personnel 
PAS 26 Accounting and Reporting by Retirement Benefit Plans 
PAS 27 Separate Financial Statements 
(Amended)
Amendments to PAS 27: Investment Entities 
Amendments to PAS 27: Equity Method in Separate
Financial Statements 
PAS 28 Investments in Associates and Joint Ventures 
(Amended)
Amendments to PFRS 10, PFRS 12 and PAS 28
Investment Entities: Applying the Consolidation Exception 
Amendments to PFRS 10 and PAS 28: Sale or
Contribution of Assets Between an Investor and its 
Associate or Joint Venture
- 177 -

Not Early Not
Adopted Applicable
PAS 28 Amendments to PAS 28: Measuring an Associate or Joint

(Amended) Venture at Fair Value
(cont’d)
Amendments to PAS 28, Long-term Interests in Associates

and Joint Ventures
PAS 29 Financial Reporting in Hyperinflationary Economies 
PAS 32 Financial Instruments: Disclosure and Presentation 
Amendments to PAS 32 and PAS 1: Puttable Financial
Instruments and Obligations Arising on Liquidation 
Amendment to PAS 32: Classification of Rights Issues 
Amendments to PAS 32: Offsetting Financial Assets and
Financial Liabilities 
PAS 33 Earnings per Share 
PAS 34 Interim Financial Reporting 
Disclosure of Information ‘Elsewhere in the Interim
Financial Report’ 
PAS 36 Impairment of Assets 
Amendments to PAS 36: Recoverable Amount
Disclosures for Non-Financial Assets 
PAS 37 Provisions, Contingent Liabilities and Contingent Assets 
PAS 38 Intangible Assets 
Amendments to PAS 38: Revaluation Method –
Proportionate Restatement of Accumulated Amortization 
Amendments to PAS 16 and PAS 38: Clarification of
Acceptable Methods of Depreciation and Amortization 
PAS 39 Financial Instruments: Recognition and Measurement 
Amendments to PAS 39: Transition and Initial Recognition
of Financial Assets and Financial Liabilities 
Amendments to PAS 39: Cash Flow Hedge Accounting of
Forecast Intragroup Transactions 
Amendments to PAS 39: The Fair Value Option 
Amendments to PAS 39 and PFRS 4: Financial Guarantee
Contracts

Financial Assets

Financial Assets - Effective Date and Transition 
Amendments to Philippine Interpretation IFRIC - 9 and
PAS 39: Embedded Derivatives

- 178 -

Not Early Not
Adopted Applicable
PAS 39 Amendment to PAS 39: Eligible Hedged Items 
(cont’d)
Amendment to PAS 39: Novation of Derivatives and
Continuation of Hedge Accounting

PAS 40 Investment Property 
Amendment to PAS 40: Investment Property: Clarifying
the relationship between PFRS 3 and PAS 40 when
classifying property as investment property or owner- 
occupied property
Amendments to PAS 40: Investment Property, Transfers of

Investment Property
PAS 41 Agriculture 
Amendment to PAS 16 and PAS 41: Bearer Plants 
Philippine Interpretations
IFRIC 1 Changes in Existing Decommissioning, Restoration and
Similar Liabilities 
IFRIC 2 Members' Share in Co-operative Entities and Similar
Instruments 
IFRIC 4 Determining Whether an Arrangement Contains a Lease 
IFRIC 5 Rights to Interests arising from Decommissioning,
Restoration and Environmental Rehabilitation Funds 
IFRIC 6 Liabilities arising from Participating in a Specific Market -
Waste Electrical and Electronic Equipment 
IFRIC 7 Applying the Restatement Approach under PAS 29
Financial Reporting in Hyperinflationary Economies 
IFRIC 8 Scope of PFRS 2 
IFRIC 9 Reassessment of Embedded Derivatives 
Amendments to Philippine Interpretation IFRIC - 9 and
PAS 39: Embedded Derivatives

IFRIC 10 Interim Financial Reporting and Impairment 
IFRIC 11 PFRS 2- Group and Treasury Share Transactions 
IFRIC 12 Service Concession Arrangements 
IFRIC 13 Customer Loyalty Programmes 
IFRIC 14 The Limit on a Defined Benefit Asset, Minimum Funding
Requirements and their Interaction 
Amendments to Philippine Interpretations IFRIC- 14,
Prepayments of a Minimum Funding Requirement 
IFRIC 15 Agreements for the Construction of Real Estate 
IFRIC 16 Hedges of a Net Investment in a Foreign Operation 
IFRIC 17 Distributions of Non-cash Assets to Owners 
- 179 -

Not Early Not
Adopted Applicable
IFRIC 18 Transfers of Assets from Customers 
IFRIC 19 Extinguishing Financial Liabilities with Equity Instruments 
IFRIC 20 Stripping Costs in the Production Phase of a Surface Mine 
IFRIC 21 Levies 
IFRIC-22 Foreign Currency Transactions and Advance Consideration 
IFRIC-23 Philippine Interpretation IFRIC-23, Uncertainty over
Income Tax Treatments

SIC-7 Introduction of the Euro 

SIC-10 Government Assistance - No Specific Relation to
Operating Activities

SIC-12 Consolidation - Special Purpose Entities 

Amendment to SIC - 12: Scope of SIC 12 
SIC-13 Jointly Controlled Entities - Non-Monetary Contributions
by Venturers

SIC-15 Operating Leases - Incentives 

SIC-21 Income Taxes - Recovery of Revalued Non-Depreciable
Assets

SIC-25 Income Taxes - Changes in the Tax Status of an Entity or

its Shareholders

SIC-27 Evaluating the Substance of Transactions Involving the

Legal Form of a Lease

SIC-29 Service Concession Arrangements: Disclosures. 

SIC-31 Revenue - Barter Transactions Involving Advertising
Services

SIC-32 Intangible Assets - Web Site Costs 

- 180 -
MAP OF THE RELATIONSHIPS OF THE COMPANIES WITHIN THE GROUP
JG SUMMIT HOLDINGS,
INC. & SUBSIDIARIES
JG SUMMIT HOLDINGS,
INC. (Parent)
100%
Universal Robina Robinsons Land JG Summit

CP Air Holdings, Inc. & Express Holdings, Inc. JG Summit (Cayman), JG Petrochemical JG Summit Olefins Unicon Insurance Brokers
Corporation & Corporation & Philippines, Ltd. & Merbau Corporation
Subsidiaries & Subsidiaries Ltd. Corporation Corporation Corporation
Subsidiaries Subsidiaries Subsidiaries
55.25% 60.97% 100.00% 100% 100% 100% 100% 100% 100% 100%
Batangas Agro-Industrial
JG Summit Capital Services JG Summit Infrastructure
Development Corporation &
Corporation & Subsidiaries Holdings Corporation
Subsidiaries
100% 100% 100%
Global Business Manila Electric Oriental Petroleum

Power Corporation Company and Minerals Corp.
30.00% 29.56% 19.40%
NOTE: Please see separate sheets for the organizational structures of the various consolidation groups.
LEGEND:
Subsidiary
Associate
Joint Venture
- 181 -
MAP OF THE RELATIONSHIPS OF THE COMPANIES WITHIN THE GROUP
Universal Robina
Corporation &
Subsidiaries
Bio-Resource Universal URC Nissin Hunt

CFC Calbee-URC,
Power Robina Philippines, Universal Universal
Corporation Inc.
Generation (Cayman), Ltd. Robina Robina
100% 100% 100% 100% 51% 100% 100%
Universal Robina URC China Southern URC

Corporation Commercial Negros International
(Parent) Co., Ltd. Development Co., Ltd &
100% 100% 94% 100%
Danone Shantou Hong Kong - URC URC Asean Acesfood URC Oceania
Vitasoy-
Universal Peggy Co. China Foods Co., International Brands Co., Ltd. Network Pte Company Ltd.
URC, Inc.
Robina Ltd. Ltd and Co., Ltd (Parent) & Subsidiaries Ltd. & and Subsidiaries
50% 50% 100% 100% 100% 100% 96.08% 100.00%
A B C
URC Hong Xiamen Shanghai Guangzhou Advanson

Hong Kong China
Kong Co., Tongan Peggy Peggy International
Foods (Parent)
Ltd Pacific Foods Co., Foods Co., Pte. Ltd &
100% 100% 100% 100% 90% 100%
LEGEND:
Subsidiary Advanson
Jiangsu
Associate Internationa
Aces
Joint Venture l Pte. Ltd.
100% 100%
- 182 -
URC Asean Brands Co.,

Ltd. & Subsidiaries
100%
URC Asean URC URC Foods URC Snack URC

Ricellent URC Hanoi PT URC URC Central
Brands Co., Vietnam (Singapore) Foods (Thailand)
Sdn. Bhd Co., Ltd. Indonesia Co., Ltd.
Ltd. Co., Ltd. Pte. Ltd. (Malaysia) Co., Ltd.
100% 100% 100% 53.49% 91.52% 100% 100% 100% 100%
Calbee-URC URC Siam

Malaysia Myanmar Pattanasin
Sdn Bhd Co., Ltd. Co. LTd
50% 95% 49%
Acesfood Network Pte

Ltd & Subsidiaries
100.00%
Acesfood Acesfood Shantou

Holdings Network Pte SEZ Shanfu
Pte Ltd Ltd. Foods Co.
100% 100% 100%
LEGEND:
Subsidiary Acesfood Acesfood
Associate Distributors Holdings
Joint Venture Pte Ltd. Pte Ltd.
100% 100%
- 183 -
URC Oceania Company Ltd. and

Subsidiaries
100.00%
URC Oceania Company Ltd.

(Parent)
100%
URC New Zealand Holding URC Australia Holding Company

Company Ltd. Pty Ltd.
100% 100%
URC New Zealand Finance URC Australia Finance Company

Company Ltd. Pty Ltd.
100% 100%
Griffin's Food Limited Consolidated Snacks Pty Ltd.
100% 100%
Nice and Natural Limited Proper Snack Foods Ltd.

Consolidated Snacks Finance Pty
Snack Foods Pty Ltd. Snack Foods Pty Ltd. Windsor Chips Pty Ltd.
100% 50.10% Ltd.
100% 100% 100% 100%
The Real McCoy Snackfood Co.,

The Kettle Chip Co., Pty Ltd.
Pty Ltd.
100% 100%
Australian Natural Snack

Lips Chips Pty Ltd.
Company
100% 100%
LEGEND:
Subsidiary
Associate
Snack Brands Industries Pty Ltd. Snack Brands Foods Pty Ltd.
Joint Venture
100% 100%
- 184 -
UNIVERSAL ROBINA CORPORATION

SUPPLEMENTARY SCHEDULE OF RETAINED EARNINGS
AVAILABLE FOR DIVIDEND DECLARATION
The table below present the retained earnings available for dividend declaration as at
December 31, 2018:
Unappropriated retained earnings as at December 31, 2017 =8,829,542,786

P
Adjustments:
Transition impact of adopting new accounting standard –
PFRS 9 (P
=417,785,935)
Fair value adjustment on financial assets at FVTPL (390,912,159)
Fair value less estimated cost to sell adjustment on biological
assets (118,841,072)
Deferred tax assets, excluding those arising from
remeasurements 68,189,238 (859,349,928)
Unappropriated retained earnings, as adjusted as at
December 31, 2017 7,970,192,858
Net income actually earned/realized during the period
Net income during the period 4,646,572,833
Add: Non-actual/unrealized loss
Loss arising from changes in fair value less
estimated costs to sell of swine stocks 467,471,975
Movements of deferred tax assets, excluding those
arising from remeasurements 11,406,181 5,125,450,989
Sub-total 13,095,643,847
Less: Dividend declarations during the year (6,943,109,884)
Reversal of appropriations during the year 2,500,000,000
Treasury shares (679,489,868)
Total retained earnings available for dividend declaration as at
December 31, 2018 =7,973,044,095
P

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- 44 -

SEC Registration Number

PRINCIPAL OFFICE ( No. / Street / Barangay / City / Town / Province )

N/A 516-9888 N/A

1,012 Last Wednesday of May 12/31

CONTACT PERSON INFORMATION

CONTACT PERSON’s ADDRESS

SEC FORM 17-A

ANNUAL REPORT PURSUANT TO SECTION 17

1. For the year ended December 31, 2018

2. SEC Identification Number 9170

3. BIR Tax Identification No. 000-400-016-000

4. Exact name of issuer as specified in its charter Universal Robina Corporation

5. Quezon City, Philippines

6. Industry Classification Code: (SEC Use Only)

7. 8th Floor, Tera Tower, Bridgetowne, E. Rodriguez, Jr. Avenue

8. (632) 633-7631 to 40 / (632) 516-9888

Number of Shares of Common Stock

Common Shares, P1.00

12. Check whether the issuer:

The aggregate market value of the voting stock held by non-affiliates is P

APPLICABLE ONLY TO ISSUERS INVOLVED IN

DOCUMENTS INCORPORATED BY REFERENCE

a) Any annual report to security holders; None

b) Any proxy or information statement filed pursuant to SRC Rule 20 and

c) Any prospectus filed pursuant to SRC Rule 8.1-1 None

PART I - BUSINESS AND GENERAL INFORMATION

PART II - OPERATIONAL AND FINANCIAL INFORMATION

PART III - CONTROL AND COMPENSATION INFORMATION

PART IV - EXHIBITS AND SCHEDULES

INDEX TO FINANCIAL STATEMENTS AND

No material reclassifications, merger, consolidation, or purchase or sale of significant amount of assets

December 31, 2016 December 31, 2017 December 31, 2018

December 31, 2016 December 31, 2017 December 31, 2018

Distribution, Sales and Marketing

Enhancement and Development of New Products

Patents, Trademarks, Licenses, Franchises, Concessions or Labor Contract

Effects of Existing or Probable Governmental Regulations on the Business

Research and Development

Transactions with Related Parties

Costs and Effects of Compliance with Environmental Laws

Employees and Labor

Business Company or Division Number

4) Food Safety Concerns

6) Intellectual Property Rights

7) Weather and Catastrophe

8) Environmental Laws and Other Regulations

The Company operates the manufacturing/farm facilities located in the following:

Location (Number of facilities) Type of Facility Owned/Rented Condition

Location (Number of facilities) Type of Facility Owned/Rented Condition

Item 3. Legal Proceedings

Item 4. Submission of Matters to a Vote of Security Holders

List of Top 20 Stockholders of Record

Recent Sales of Unregistered Securities

The Company paid dividends as follows:

Item 6. Management’s Discussion and Analysis or Plan of Operation

Calendar Year Calendar Year Calendar Year Fiscal Year

Calendar Year 2018 Compared to Calendar Year 2017