AP RENEWABLES, INC.

Financial Statements
For the year ended December 31, 2011
(In partial fulfillment of the subject Financial Accounting 3
under Mrs. Jocelyn Buenafe)

SUBMITTED BY: Jessa Camille M. Lacsamana

AP RENEWABLES, INC.
(A Wholly Owned Subsidiary of Aboitiz Renewables, Inc.).___________________________
BALANCE SHEETS

____________________________________________________

December 31____

_________________________________________________________2011_________

2010__

ASSETS

Current Assets
Cash and cash equivalents (Note 5)

P 2,238,674,150

P 578,776,073

1,667,179,269

1,470,213,895

Inventories (Note 7)

146,139,022

161,282,639

Prepayments and other current assets (Note 8)

608,023,993

277,283,030

Total Current Assets_______________________________ 4,660,016,434

2,487,555,637

Trade and other receivables (Note 6)

Noncurrent Assets
Property, plant and equipment (Note 9)
Deferred income tax assets net (Note 17)
Other noncurrent assets (Note 10)

21,481,040,118

19,929,665,359

17,885,209

33,162,804

541,375,778

505,136,861

Total Noncurrent Assets__________________________ 22,040,301,105____ 20,467,965,024

TOTAL ASSETS

P 26,700,317,539

P 22,955,520,661

_____________________________________________________________________________

LIABILITIES AND EQUITY

Current Liabilities
Trade and other payables (Note 11)

P 1,056,068,573

P 1,086,971,247

5,945,133,015

P 1,056,068,573

7,032,104,262

Customers` deposits- net of current portion

20,812,141

30,537,000

Pension liability (Note 13)

23,006,000

11,891,900

Total Noncurrent Liabilities

43,818,414

42,428,900

Amounts owed to related parties (Note 12)

Total Current Liabilities

Noncurrent Liabilities

Equity
Capital stock P 1 par value (Note 18)
Common stock

226,680,570

57,005,000

Preferred stock

2,040,080,123

513,000,000

20,400,801,237

5,130,000,000

2,932,868,622

10,180,982,499

25,600,430,552

15,880,987,499

P 26,700,317,539

P 22,955,520,661

Additional paid-in capital

Retained earnings (Note 18)
Total Equity

TOTAL LIABILITIES AND EQUITY

______________________________________________________________________________
See accompanying Notes to Financial Statements

AP RENEWABLES, INC.
(A Wholly Owned Subsidiary of Aboitiz Renewables, Inc.).___________________________
STATEMENT OF INCOME

_________________________________________________

Years Ended December 31____

______________________________________________________ 2011_________

SALES OF POWER ( Notes 20 and 24)

2010___

P 14,720,533,621

P 16,383,306,237

5,614,629,422

5,590,502,944

230,906,681

162,092,997

COST OF SALES
Plant operations and m maintenance (Notes 14 and 23)
Purchased power (Notes 20 and 24)
.

5,845,536,103

5,752,595,941

GROSS PROFIT

8,874,997,518

10,630,710,296

291,232,090

448,136,376

17,773,684

21,216,277

(11,869)

(612,360)

(2,911,016)

(11,820,109)

(31,729,829)

(51,089,482)

(16,879,030)

(42,305,674)

(3,482,806)

309,916

(14,985)

-_

(3,497,791)

309,916

8,563,388,607

10,140,578,162

GENERAL AND ADMINISTRATIVE EXPENSES (Note 15)

FINANCIAL INCOME (EXPENSES)

Interest income (Notes 5 an d 6)

Interest expense (Notes 4 and 12)
Mark-to-market loss on forward currency contracts
Other financing charges

OTHER INCOME (EXPENSES)

Foreign exchange gains (losses) net (Note 21)
Loss on disposal of asset

INCOME BEFORE INCOME TAX

PROVISION FOR (BENEFIT FROM) INCOME TAX
(Note 17)
Current

6,008,266

Deferred

15,277,595

(40,404,337)

21,285,861

(40,404,337)

P 8,542,102,746

P 10,180,982,499

NET INCOME

See accompanying Notes to Financial Statements

AP RENEWABLES, INC.
(A Wholly Owned Subsidiary of Aboitiz Renewables, Inc.).___________________________
STATEMENT OF COMPREHENSIVE INCOME

_________________________________________________

Years Ended December 31____

______________________________________________________ 2011_________

NET INCOME

OTHER COMPREHENSIVE INCOME

TOTAL COMPREHENSIVE INCOME

P 8,542,102,746

P 8,542,102,746

2010___

P 10,180,982,499

-_____

P 10,180,982,499

______________________________________________________________________________
See accompanying Notes to Financial Statements

AP RENEWABLES, INC.
(A Wholly Owned Subsidiary of Aboitiz Renewables, Inc.).___________________________
STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED DECEMBER 31, 2011 AND 2010
Deposit for
Capital stock

Additional paid-

future stock

Retained

(Note 18)

in capital

subscription

earnings

Common

Preferred

(Note 18)

(Note 18)

(Note 18)

Total

P5000

P---

P---

P570,000,000

P2,064,481,518

P2,364,486,518

10,180,982,499

10,180,982,499

10,180,982,499

10,180,982,499

57,000,000

513,000,00

5,130,000,000

(570,000,000)

5,130,000,000

(2,064,481,518)

(2,064,481,518)

57,005,000

513,000,000

5,130,000,000

10,180,982,499

15,880,987,499

8,542,102,746

8,542,102,746

8,542,102,746

8,542,102,746

169,675,570

1,572,080,123

15,270,801,237

16,967,556,930

(15,790,216,623)

(15,790,216,623)

P226,680,570

P2,040,080,123

P20,400,801,237

P-

P2,932,868,622

P25,600,430,552

Balances at
December 31,
2009
Net income for
the year
Other
comprehensive
income
Total
comprehensive
income
Issuance of
capital stock
(Note 18)
Cash dividends
at P3.62 per
share (Note 18)
Balances at
December 31,
2010
Net income for
the year
Other
comprehensive
income
Total
comprehensive
income
Issuance of
capital stock
(Note 18)
Cash dividends
at P27.70 per
share (Note 18)
Balances at
December 31,
2011

See accompanying Notes to Financial Statements

AP RENEWABLES, INC.
(A Wholly Owned Subsidiary of Aboitiz Renewables, Inc.).___________________________
STATEMENTS OF CASH FLOWS

_________________________________________________

Years Ended December 31____

______________________________________________________ 2011_________

2010___

CASH FLOWS FROM OPERATING ACTIVITIES

Income before income tax

P 8,563,388,607 P 10,140,578,162

Adjustments for
1,039,348,947

1,110,405,865

other receivables

(86,849,572)

170,271,120

Other financing charges

31,729,829

51,089,482

Interest income (Notes 5 and 6)

(17,773,684)

(21,216,277)

Amortization of software and licenses (Note 10)

2,867,270

2,542,816

Mark-to market loss on forward currency contracts

2,911,016

11,820,109

Unrealized foreign exchange losses

1,053,035

6,809,185

309,282

53,108,377

Depreciation (Note 9)
Provision for (reversal of) impairment losses of trade and

Provision for inventory obsolescence (Note 7)

Loss on disposal of asset

14,985

Interest expense

11,869

612,360

9,537,011,584

11,526,021,199

Operating income before working capital changes

Decrease (increase) in:

Trade and other receivables

(110,013,331)

(310,955,728)

Prepayments and other current assets

(334,582,506)

(210,679,136)

Inventories

14,834,335

5,361,787

Trade and other payables (Note 25)

(28,982,261)

79,279,970

Customers` deposits

(11,644,999)

20,831,414

11,114,100

7,602,100

9,077,736,922

11,117,461,606

Interest income received

17,773,684

21,216,277

Income taxes paid

(2,166,723)

Increase (decrease) in:

Pension liability
Net cash generated from operations

Net cash flows from operating activities

9,093,343,883

(12,093,706)
11,126,584,177

CASH FLOWS FROM INVESTING ACTIVITIES

Additions to property, plant and equipment (Note 9)
Increase in other noncurrent assets (Note 25)
Cash flows used in investing activities

(2,590,841,162) (1,146,715,351)
(39,106,187)

(43,065,893)

(2,629,947,349) (1,189,781,244)

CASH FLOWS FROM FINANCING ACTIVITIES

Payments of advances from related parties

(6,845,133,015) (9,865,340,429)

Proceeds from issuance of capital stock

3,252,038,450

Dividends paid

(1,174,698,143)

Other financing charges

Mark-to-market loss on forward currency contracts
Interest paid
Net cash flows used in financing activities

(Forward)

(31,729,829)

(51,089,482)

(2,911,016)

(11,820,109)

(11,869)

(612,360)

(4,802,445,422) (9,928,862,380)