2014 Financial Statement
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EDC <strong>2014</strong> Performance Report<br />
The Company recognized expense for termination benefits amounting to ₱605.2 million in 2012.<br />
No such expense was incurred in 2013 and <strong>2014</strong>.<br />
The sensitivity analysis below has been determined based on reasonably possible changes of each<br />
significant assumption on the defined benefit obligation as of December 31, <strong>2014</strong> and 2013,<br />
assuming if all other assumptions were held constant:<br />
<strong>2014</strong><br />
Increase/Decrease in<br />
Percentage Point<br />
Effect on Present Value of<br />
Defined Benefit Obligation<br />
Discount rate +1% (₱391,199,634)<br />
-1% 453,337,628<br />
Future salary increases +1% ₱437,942,768<br />
-1% (388,112,431)<br />
Medical costs trend +1% ₱4,775,824<br />
-1% (4,160,167)<br />
2013<br />
Increase/Decrease in<br />
Percentage Point<br />
Effect on Present Value of<br />
Defined Benefit Obligation<br />
Discount rate +1% (₱454,165,935)<br />
-1% 454,165,935<br />
Future salary increases +1% ₱441,700,936<br />
-1% (441,700,936)<br />
Medical costs trend +1% ₱6,321,694<br />
-1% (6,321,694)<br />
The estimated weighted average duration of benefit payment is 17 to 14 years in <strong>2014</strong> and 16 to<br />
17 years in 2013.<br />
Following are the information about the maturity profile of the defined benefit obligation as of<br />
December 31, <strong>2014</strong> and 2013:<br />
<strong>2014</strong> 2013<br />
Within the next 12 months 1% 2%<br />
Between 2 and 5 years 13% 11%<br />
Between 5 and 10 years 25% 22%<br />
Between 10 and 15 years 33% 33%<br />
Beyond 15 years 28% 32%<br />
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