EDC PR 2016 (FS section)

Financial Statement
The following table shows the Company’s reconciliation of EBITDA to the consolidated net
income for the years ended December 31, 2016, 2015 and 2014.
2016 2015 2014
EBITDA ₱20,735,633,268 ₱18,680,237,352 ₱17,922,104,956
Add (deduct):
Depreciation and amortization (Notes 12, 13, 21 and 22) (5,698,840,026) (5,154,836,697) (4,079,299,297)
Interest expense (Notes 17, 24 and 31) (4,503,290,214) (4,558,747,688) (3,754,010,722)
Provision for income tax (Note 28) (1,673,923,736) (880,673,397) (1,222,589,401)
Proceeds from insurance claims (Note 32) 1,512,129,674 1,172,802,874 539,212,484
Foreign exchange losses - net (Notes 25 and 31) (653,486,476) (1,365,523,827) (102,531,122)
Interest income (Notes 6, 11, 24 and 31) 282,807,903 294,729,203 184,691,655
Provision for doubtful accounts (Notes 7, 15 and 22) (70,225,399) (96,829,805) (59,627,889)
Reversal of (provision for) impairment of parts
and supplies inventories (Notes 3, 10 and 22) (58,441,169) (70,988,228) 25,340,773
Provision for impairment of property, plant and
equipment (Notes 12 and 22) – (23,322,433) –
Reversal of previously impaired property, plant and
equipment (Notes 3 and 12) – – 2,051,903,642
Miscellaneous income (charges) - net (Note 26)* (156,781,264) (137,475,367) 312,813,949
Consolidated net income ₱9,715,582,561 ₱7,859,371,987 ₱11,818,009,028
*Excludes reversal of impairment of damaged assets due to Typhoon Yolanda amounting to ₱16.8 million and ₱53.4 million in 2015
and 2014, respectively, and loss on direct write-off of exploration and evaluation assets amounting to ₱11.3 million in 2015.
In the normal course of business, entities within the Company engage in intercompany sale and
purchase of steam and electricity. Intersegment revenues are all eliminated in consolidation.
Segment information is measured in conformity with the accounting policies adopted for
preparing and presenting the consolidated financial statements. Intersegment revenues are made at
normal commercial terms and conditions.
Unallocated expenses pertain to expenses of the corporate, technical and administrative support
groups, while unallocated corporate assets and liabilities, which include among others certain cash
and cash equivalents, property, plant and equipment, parts and supplies inventories, trade and
other payables and retirement and post-retirement benefits, pertain to the Head Office and are
managed on a group basis.
In 2014, the Company reversed previously recognized impairment loss related to the NNGP
Project which is part of NIGBU segment amounting to ₱2,051.9 million (see Note 12).
6. Cash and Cash Equivalents
2016 2015
Cash on hand and in banks ₱1,086,990,926 ₱2,389,289,290
Cash equivalents 9,512,839,915 15,224,632,601
₱10,599,830,841 ₱17,613,921,891
Cash in banks earn interest at the respective bank deposit rates. Cash equivalents consist of
money market placements, which are made for varying periods of up to three months depending
on the immediate cash requirements of the Company. Total interest earned on cash and cash
equivalents, net of final tax, amounted to ₱241.6 million, ₱283.5 million and ₱159.0 million in
2016, 2015 and 2014, respectively (see Note 24).
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