EDC 2014 SR (UPDATED)

EDC 2014 Performance Report
Fair Value Changes of Derivatives
The table below summarize the net movement in fair values of the Parent Company’s derivatives
as of December 31, 2014 and 2013.
2014 2013
Balance at beginning of the year ₱56,931,779 (₱238,675,102)
Net changes in fair value of derivatives:
Designated as accounting hedges (132,172,633) 244,634,426
Not designated as accounting hedges 7,517,980 14,243,178
(124,654,653) 258,877,604
Fair value of settled instruments:
Designated as accounting hedges 67,222,118 43,674,194
Not designated as accounting hedges (15,065,000) (6,944,917)
52,157,118 36,729,277
Balance at end of the year (₱15,565,756) ₱56,931,779
Presented as:
Derivative assets ₱154,169,144 ₱61,130,101
Derivative liabilities (169,734,900) (4,198,322)
(₱15,565,756) ₱56,931,779
The effective portion of the changes in the fair value of the NDCCS designated as accounting
hedges were deferred in equity under “Cumulative Translation Adjustment on Hedging
Transactions” account.
Capital Management
The primary objective of the Company’s capital management is to ensure that it maintains a
healthy capital ratio in order to comply with its financial loan covenants and support its business
operations.
The Company manages and makes adjustment to its capital structure as it deems necessary.
To maintain or adjust its capital structure, the Company may increase the levels of capital
contributions from its creditors and owners/shareholders through debt and new shares issuance,
respectively. No significant changes have been made in the objectives, policies and processes of
the Company from the previous years.
The Company monitors capital using the debt ratio, which is long-term liabilities divided by longterm
liabilities plus equity. The Company’s policy is to keep the debt ratio at not more than 70:30.
The Company’s long-term liabilities include both the current and long-term portions of long-term
debts. Equity includes all items presented in the equity section of the consolidated statement of
financial position.
The table below shows the total capital considered by the Company and its debt ratio as of
December 31, 2014 and 2013.
2014 2013
Long-term liabilities ₱69,462,241,673 ₱58,548,760,335
Equity 43,620,086,477 36,244,958,905
Total ₱113,082,328,150 ₱94,793,719,240
Debt ratio 61.4% 61.8%
248