2014 Financial Statement
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EDC <strong>2014</strong> Performance Report<br />
The fair value of plan assets by each class at end of the reporting period follows:<br />
<strong>2014</strong> 2013<br />
Investments quoted in active market<br />
Quoted equity investments (by industry)<br />
Industrial - electricity, energy, power and<br />
water ₱320,803,238 ₱344,262,751<br />
Holding firms 173,366,100 211,131,750<br />
<strong>Financial</strong>s - banks 139,333,719 89,303,374<br />
Property 73,789,171 89,160,229<br />
Industrial - food, beverage, and tobacco 71,227,647 50,792,123<br />
Services - telecommunications 20,531,800 37,897,190<br />
Services - casinos and gaming 17,932,620 3,433,520<br />
Transportation services 16,954,910 28,467,894<br />
Industrial - construction, infrastructure and<br />
allied services 14,167,442 15,337,140<br />
Golf country club 3,176,667 –<br />
Retail 8,053,267 16,878,765<br />
Mining 1,420,000 –<br />
860,756,581 886,664,736<br />
Investments in debt instruments<br />
Government securities 581,773,734 611,213,174<br />
Corporate bonds 365,293,503 219,628,619<br />
947,067,237 830,841,793<br />
Unquoted investments<br />
Quoted equity investments (by industry) 588,326,766 409,052,687<br />
Receivables and other assets 26,262,360 32,247,589<br />
614,589,126 441,300,276<br />
Fair value of plan assets ₱2,422,412,944 ₱2,158,806,805<br />
Cash and cash equivalents include savings and time deposits. Quoted equity investments pertain<br />
to listed shares in PSE. The classification by industry of quoted shares presented above is based<br />
on sector classification published by the PSE. Government securities pertain to ROP bonds while<br />
corporate bonds are debt instruments issued by domestic companies rated Aaa based on the latest<br />
credit rating published by Philippine Rating Services Corporation (PhilRatings) in <strong>2014</strong>.<br />
Government securities and corporate bonds are both traded in PDEx.<br />
The Company expects to contribute ₱230.0 million to its defined benefit retirement plan in 2015.<br />
The principal actuarial assumptions used in determining retirement and other post-employment<br />
benefits as of December 31 of each year are as follows:<br />
<strong>2014</strong> 2013<br />
EDC GCGI FG Hydro BGI EDC GCGI FG Hydro BGI<br />
Discount rate 4.30% 4.16% 5.65% 4.29% 4.34% 4.35% 5.01% 4.27%<br />
Future salary increase<br />
rate 5.00% 5.00% 10.00% 5.00% 5.00% 5.00% 12.00% 5.00%<br />
Medical costs trend rate 7.00% 7.00% – 7.00% 7.00% 7.00% – 7.00%<br />
The assumption on the discount rate is based on the long-term government bond rates<br />
approximating the expected average remaining working life of the employees.<br />
100
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