CHAPTER I

Products 1.1 Skin White Power Cream Powder Skin Whitening Deodorant

Power Whitening Face Cream Skinwhite Whitening Bath Soap

Power Whitening Lotion Power Whitening Face Solution

Skin White Milk Soap

Extract Extract Hand Body Lotion

Extract Papaya Calamansi Skin Whitening Deodorant Extract Soap

Extract Facial Clanser Exfoliation Maxi Facial Cleanser Maxi-Peel Exfoliant Soap Hair Maxi-Peel Exfoliant Maxi-Peel Neck and Body Exfoliant Lotion

Maxi-Peel Moisturizer Concealing Cream Whitening

Maxi-Peel Sunblock

Color Recharge Shampoo Color Recharge Conditioner Dual Conditioning Hair Color Shades Powe Hair Dry Vitress Vitress Cuticle Coat Vitress Hair Spa Vitress Hair Polish Vitress Setting Lotion Color Recharge Hot Oil Conditioner

Anti- Bacterial Anti-Bacterial Hand Gel Ethyl Alcohol Anti-Bacterial Hand Spray

Customers 1.2 The principal customer of Splash Corporation is by account group: The National Account Group (NAG) which is served directly by the company; Modern Trade; and General Trade which are serviced through distribution

Historical Background 1.3 Founded on 19885 and grow up from Php12,000 to Php4billion. Founders are Dr. Rolando B. Hortaleza and Dr. Rosalinda A. Hortaleza. The companys first product was repackaged acetone and cuticle remover. In 1987, the company started to sell hair care products and renamed their company from Hortaleza cosmetics to Splash Corporation. In September 30, 1991, Splash Corporation was incorporated and registered with the Philippine Stock Exchange (SEC). The Company established the Splash Research Institute in 1997. In 2002, the Company invested in a Php400 million state-of-the-art manufacturing complex in Canumay, Valenzuela City. In November 15, 2007 the company listed its stocks with the Philippine Stock and Exchange (PSE). To date, Splash has established market presence in over 30 countries through its distributors and local exporters. These countries include Algeria, Australia, Bahrain, Canada, Egypt, Hong Kong, India, Indonesia, Iran, Japan, Jordan, Korea, Kuwait, Lebanon, Malaysia, Nigeria, Oman, Pakistan, Qatar, Saudi Arabia, Singapore, Sudan, United Arab Emirates, Vietnam and the United States. Business Location 1.4 MainOffice: Splash Corporation 5F W Office Bldg., 11th Avenue cor. 28th Street, Bonifacio Global City, Taguig City 1634 Philippines Industrial Plant Area: F. Lazaro Street, West Canumay, Valenzuela City Benchmark 1.5 We choose the Johnson & Johnson Inc., Philippines as benchmark. Their products are categorized by: skin care, hair care, baby care, wound care, oral health care, womens health, nutritionals and vision care.

Ownership and Management Profile 1.6 List of top 20 shareholders as of March 31, 2011 NAME NO. OF SHARES HELD % TO TOTAL

OUTSTANDING 1. 2. 3. 4. 5. 6. 7. 8. 9. 10 AngHortaleza Corporation PCD Nominee Corp. (Fil) PCD Nominee Corp. (Non-Fil.) Alfredo M. Yao William T. Enrile BNC Ingredients Corporation Joy O. Go Paul L. Gotianse Benjamin S. Geli Winston L. Duy 435,518,054 244,321,717 7,705,300 599,000 320,000 200,000 180,000 100,000 60,000 50,000 50,000 50,000 50,000 50,000 41,000 40,000 29,021 27,000 66.61% 37.37% 00.12% 00.09% 00.05% 00.03% 00.03% 00.02% 00.01% 00.01% 00.01% 00.01% 00.01% 00.01% 00.01% 00.01% 00.00% 00.00% 00.00%

11. Annika Sherryn Yao. 12. David LimquecoKho 13. Nilo C. Zantua 14. Melani Dianne T. Chua 15. Eric Roel E. Domagas 16. Alfonso Iigo A. Hortaleza 17. Benjamin Luzod Angel 18. Margarito R. Miral

19. Alexander DeLa Paz & Rosanna C. 25,000 Rabang 20. Anna Karerina E. Reyes 23,000

00.00%

Members of the Board of Directors as of December 21, 2011. POSITION Chairman & Chief Executive Officer Vice Chairman

NAME Rolando B. Hortaleza, M.D. Rosalinda A. Hortaleza, M.D.

Eric Roel E. Domagas AllueKrisanne A. Hortaleza Maurice P. Ligut Rafael C. Lopa Jimmy T. Yaokasin Rizalino Rivera

Director, President & Chief Operating Officer Director Director Independent Director Independent Director Independent Director

Rolando B. Hortaleza Mr.Rolando B. Hortaleza a scion of Hortaleza family, served as a director since 1991. He sits as Chairman of AngHortaleza Corp. and Vice-Chairman of HBC, Inc., World Partners Bank, and World Partners Finance Corporation. Graduated with a BS degree in Preparatory Medecine from the University of the East and obtain his degree in Medicine from Our Lady of Fatima University. Also attended the Owner and Presidents Management Program at the Harvard Business School.

Rosalinda Ang-Hortaleza The Chairman and CEO of HBC, Inc., AngHortaleza Foundation, World Partners Bank and World Partners Finance Corporation. Graduated with a BS degree in Medical Technology from University of Santo Thomas and obtained her degree in medicine from Our Lady of Fatima University.

Maurice P. Ligot Production Manager, Quality Assurance Manager and Total Quality Manager of Splash Corporation. Obtained her BS degree in Pharmacy from Centro Escolar University. Currently a trustee of Ninoy and Cory Aquino Center of Leadership.

AllueKrisanne A. Hortaleza Is the eldest daughter of Rolando and Rosalinda Hortaleza. Obtained her BS degree in Management from Ateneo De Manila University. Currently the Chief-of-Staff of the Chairman/ CEO of HBC, Inc.

Jimmy T. Yaokasin, Jr. Was elected to the Board of Splash Corporation on October 1, 2007. Former Chairman of the Board of Trustees of the Development Academy of the Philippines. Obtained his degree in Business Administration major in Accountancy from University of the Philippines. Obtained his MBA from Kellogg School of Management of Northwestern University.

Rafael C. Lopa

Currently Executive Director of the Philippine Business for Social Progress. President of Ninoy and Cory Aquino Foundation. Holds BA degree in Inter-Disciplinary Studies from Ateneo de Manila University. Rizalino D. Rivera He is in charge of Management Planning for Digital Alliance which is a group of companines involved in ICT and Broadcast. He is the President of Change Consultants Inc. Has a BA degree in Political Science from the University of the Philippines. Eric Roel E. Domagas He was previously the President and Managing Director of Rapp Collins Inc. He was also the VicePresident and Director of Non-Alcoholic Beverage business of San Miguel Corporation. He is a graduate of the University of the Philippines with a degree in Business Administration.

Organizational Structure 1.7

Office of the Chairman and CEO Strategic Business Office Office of the CFO/ Investor Relations Internal Audit

Corporate Finance

Startegic Procurement Office of the President and COO

Research and Supply Chain Managament Plant Operation and Logistic Department

SRI

Philippine Operations

Internal Operations

Direct Sales

Corporate Services
Information Technology

Human Resources and Management

RAD

Marketing and Brand Departmnent Customer Business Development Brand Activation

Quality System and Information Unit Customer Relations Management

CHAPTER II
Financial Highlights 2.1

In million peso Current Assets Total Assets Total Equity Sales Net Income
Financial Ratios 2.2 LIQUIDITY RATIOS:

2010 2,727 4,082 2,635 2,988 144

2009 3,148 4,102 2,600 2,721 23

2008 3,548 4,418 2,930 3,165 297

% Change 09-10 -13% -0.5% 1% 10% 509%

% Change 08-09 -11% -7% -11% -14% -92%

Current Ratio Acid-test Ratio Net Working Capital

2010 4.58 3.94 2.1 B

SPLASH 2009 5.06 4.58 2.5 B

2008 4.17 3.72 2.7 B

JOHNSON & JOHNSON 2010 2009 2008 1.38 1.24 1.21 1.09 546.6 M 385.3 M

The Splash liquidity ratios are good enough because its current ratio and acid-test ratio is higher than 1 which means the firm can cover its liabilities with its assets. Therefore, as we can see, it is on 2009 when Splash achieved high current and acid-test ratio. This was due to the decrease of current assets as a result of: purchase of hygienix brand; expenditures from IPO and cash dividends. Liabilities from 2008 to 2009 also decrease due to reduction in trade payables.But then, current and acid-test ratiowent back down in 2010 due to decrease again in current assets as results of decrease in cash and cash equivalents and improvement in receivables collection. Another thing, net working capital of Splash is higher than its benchmark with is good because this means that the firm has more opportunities to expand. Overall analysis, Splash is considered as more liquid than Johnson & Johnson.
ACTIVITY RATIOS:

Inventory Turnover Average Collection Period Total Asset Turnover

2010 3.57 93 0.73

SPLASH 2009 4.97 147 0.66

2008 3.94 125 0.72

JOHNSON & JOHNSON 2010 2009 2008 14 16 30 35 1.96 2.14

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These three ratios are the commonly used to measure how efficient the firm is in using its assets. In inventory turnover of splash, it means that the average of their inventory is 102, 73 and 93 (365/IT) days respectively. Compare to its benchmark, Johnson & Johnson has faster inventory turnover which is better. When it comes to average collection period, Splash also has longer periods to collect their receivables. It takes 3 to 4 months to collect unlike in J&J it takes just 1 month. Moving forward, total asset turnover of splash is below 1 compare to J&J which is higher than one is better. This only means that he Splash only earns 0.73, 0.66 and 0.72 cents for every one peso of their assets. Overall, in measuring activity ratios, J&J is better in managing its assets than Splash.
FINANCIAL LEVERAGE RATIOS:

Debt Ratio Time Interest Earned Ratio Fixed-Payment Ratio

2010 35% 2.40 3.36

SPLASH 2009 37% 0.04 1.26

2008 39% 2.68 4.09

JOHNSON & JOHNSON 2010 2009 2008 60% 69% 52.27 49.69 53.46 51.27

Debt ratio of Splash means that 35%, 37% and 39% of the firms assets is comes from debt.J&J seems to be highly leveraged than Splash that can result to higher ROE but may be risky in being unable to pay its debt. The time interest earned ratio of Splash means that it has 2.40, 0.04 and 2.68 pesos in EBIT for every one peso interest obligation they have. The reason behind low TIR in 2009 was due to low operating profit. The fixed coverage ratio of Splash means that it earns 3.36, 1.26 and 4.09 times its fixed charges. The greater the ratio, the lower the risk and the better the debt position of a firm.
PROFITABILITY RATIOS:

Gross profit margin Operating profit margin Net profit margin Earnings per share Return on Total Assets Return on Equity

2010 55% 5% 5% 0.21 4% 6%

SPLASH 2009 46% .11% 1% 0.03 1% 1%

2008 52% 8% 9% 0.40 7% 10%

JOHNSON & JOHNSON 2010 2009 2008 25% 28% 12% 13% 8% 8% 16% 39% 18% 56%

The GPM of Splash means that for every one peso that the firm earns, there are 0.55, 0.46 and 0.52 cents left after it pays for goods. For the past three years, it is on 2009 when Splash has a low GPM which is due to low introductory prices of new products. The higher ratio,
8

the better it becomes. Therefore, Splash is better than J&J.The OPM of Splash means that for every one peso that firm earns, there are 0.05, 0.0011 and 0.08 cents left after all the operating expenses are deducted. The lowest OPM is on 2009 also which is due to low gross profit margin.The NPM of Splash means that a company has 0.05, 0.01 and 0.09 cents of net income for every peso of sales. In 2009, Splash has a very low profit margin which due to low net sales during the year. Low net sales are the result of: a) performance of new product launches supported by marketing initiatives in 2008 was affected by the economic conditions; b) and the distributors were not able to support the Company in delivering these products to the market. Moreover, the NPM increase in 2010 from 2009 due to 10% increase in sales from direct selling mainly came from skin exfoliant and hair categories.The ROA of Splash means that the firm earned 0.04, 0.01 and 0.07 cents on each peso of asset investment. Since the Splash has lower asset turnover and net profit margin than J&J, the ROA results are the same. In return on equity, being highly leverage of J&J resulted to high ROE. Overall, J&J still seems better than Splash because of its higher ROA, ROE and even net profit margin.
MARKET RATIOS:

Price/Eranings Ratio Market book Ratio Book value per share

2010 11.53 0.60 4.03

SPLASH 2009 79.92 0.75 3.66

2008

4.24

CHAPTER III
Industry Profile 3.1

Personal care or toiletries is the industry which manufactures consumer products used for beautification and in personal hygiene. Personal care products are categorized into: Hair Care Skin Care Deodorants Color Cosmetics Bath and Shower Sun Care

Manufacturers expand consumer bases After struggling amidst the economic slowdown which hit the Philippines hard during 2009, beauty and personal care rebounded strongly in 2010. The improved economic performance and higher consumer and business optimism in the country brought about by the establishment of a new political administration engendered a conducive environment for more vibrant growth in beauty and personal care. Although per capita consumption failed to increase significantly, the number of Philippine consumers using beauty and personal care products increased slightly as manufacturers pursued new strategies aimed at developing market penetration. Beauty and personal care sees robust growth in 2010 In a quest to improve their footholds in the Philippines, beauty and personal care companies are enthusiastically expanding their consumer bases by offering a wider array of products aimed at boosting demand among both current and prospective consumers. The trend of young Philippine men adhering to the so-called metrosexual lifestyle is encouraging players to launch new lines of mens grooming products, while the increasing influence of teens and pre-teens in buying decisions is capturing the interest of key manufacturers. Furthermore, increasing demand for products with anti-aging properties across many beauty and personal care categories is enabling companies to offer something new to current consumers, thereby improving revenue per customer.
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Grocery retailers remain the most important distribution channel The dominance of mass market beauty and personal care brands and the increasing share of total beauty and personal care volume sales accounted for by products in small packaging sizes was instrumental in grocery retailers maintaining its position as the leading distribution channel for beauty and personal care products during 2010. The opening up of more convenience stores, neighbourhood supermarkets and sari-sari stores further increased the size of grocery retailers dominant distribution value share. Meanwhile, smaller packaging sizes in skin care, oral care and bath and shower improved the position of traditional sari-sari stores, categorised under small independent grocers.
Market Share 3.2

Philippine market shares of the Splash major brands and product line: BRAND/PRODUCT LINE Exfoliant Solution Maxi-peel Exfoliant Solution Exfoliant Soap Maxi-peel Exfoliant Soap Exfoliant Lotion Maxi-Peel Exfoliant Lotion Exfoliant Cream Maxi-peel Exfoliating cream Whitening Lotion Skin White Whitening Lotion Extract Whitening Lotion Total Whitening Lotion Whitening Soap Skin White Whitening Scientific Premium Hair Dye Kolours Premium Cuticle Coat Vitress MARKET SHARE 84.01% 67.94% 1.03% 3.18% 26.50% 6.45% 32.95% 39.36% 49.28% 63.7%

Splash Corporation brands continue to maintain their leadership and dominant positions in the categories where they compete, despite the influx of new, competitive brands and products.
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Skin White lotion remains the number one brand in a very highly contested skin whitening industry with its whitening lotion at 27% market share while its soap leads the scientific whitening segment at 39% market share. Maxi-Peel solution is able to maintain its dominance in the exfoliation solution segment with 84% share of the market. Capitalizing on its strong brand, Maxi-Peel introduced Rose Essence Exfoliant Soap, a new variant of its new soap line, catapulting the brand to a dominant 68% leadership position in the exfoliating soap segments. Maintaining its leadership position in the hair category are Vitress that continues to dominate with 64% share in the cuticle coat segment and Kolours leading the highly competitive hair dye segment with 49% share.
Major Competitors 3.3

All of the Splash product lines compete with both large and small companies in the Philippines and abroad. In order to succeed, the Splash competes by differentiating its product offerings through innovation. It therefore avoids head-to-head competition with large global companies by targeting market niches that it can profitably develop. Principal competitors considered by Splash are as follows: Unilever Philippines Inc. Colgate Palmolive Phils., Inc. Procter & Gamble Phils., Inc. LOreal Philippines, Inc. Beiersdorf AG Johnson & Johnson Phils., Inc. Avon Cosmetics, Inc.

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Industry Profitability 3.4 Porters Five Forces of Competition 1. Industry Competitors This kind of force of competition is rated high because there are competitors who have the same type of product and it is listed in Chapter 1. Theres an intense competition between companies in terms of price because customers patronize health and beauty products with low cost. Also, Companies in this industry are engaged in the research and development for innovations in their product in order to maintain their dominance in the market. 2. Potential New Entrants This kind of force of competition is rated low because the entrance of new products is not wellknown to the customers and they are loyal to their product because it is tried & tested. The capital requirement needed by companies to manufacture health and beauty products is big. These products must be checked and approved by the Bureau of Food and Drugs and they must have certificate from BFAD. Also, they must have license from Department of Trade and Industry and after that they can be sent out to the market. 3. Threat of Substitute Products This kind of force of competition is rated low because the only possible substitute for health and beauty products is a natural products and the customer might not know if natural products can give same results like the manufacture or processed product. It is easier to buy and use health and beauty products that are sold in the market because the customer can know the raw materials and processes used by the company to manufacture that product. On the other hand, natural products must be processed first to be able for the customer to use it. 4. Bargaining Power of Suppliers This kind of force of competition is rated low because Splash Corporation sources its raw materials and packaging materials from 2 accredited local suppliers for them to ensure uninterrupted availability. Splash uses raw materials that are commonly and readily available. 5. Bargaining Power of Buyers This kind of force of competition is rated high because customers have the right to buy or not to buy the products. Also, the bargaining power of customers depends on their necessity and the demand for the product. 13

Industry Prospects 3.5 Heightened consumer awareness, bright economic prospects and smaller packaging sizes are all set to contribute to the rosy prospects for beauty and personal care in the Philippines during the forecast period. With these factors now firmly in place, manufacturers are will find it easier to promote their brands and boost penetration of their products, leading to a wider consumer base for beauty and personal care. Lower and middle income Philippine consumers will remain to the fastest growing consumer segments over the medium term. (http://www.euromonitor.com/beauty-and-personal-care-in-the-philippines/report)

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CHAPTER V
Specific Products 5.1 Line of Credit Letter of Credit Term Loans Lease Financing

Product Description 5.2 Line of Credit An arrangement between financial institutions, usually a bank and a customer that establishes a maximum loan balance that the bank will permit the borrower to maintain. The borrower can draw down on the line of credit at any time, as long as he or she does not exceed the maximum set in the agreement. Letter of Credit A standard, commercial letter of credit or LC is a document issued mostly by a financial institution, used primarily in trade finance, which usually provides an irrevocable payment u-undertaking. The letter of credit can also be payment for a transaction, meaning that redeeming the letter of credit pays an exporter. Letters of credit are used primarily in international trade transactions of significant value, for deals between a supplier in one country and a customer in another. Term Loans Term loans are loans with maturities over one year. Often they finance the purchase of fixed assets or the broad expansion of production capacity, but they may also be made to finance a change in company control or an acquisition or take out a revolving credit loan. Lease Financing Lease financing by banks is unique means of funding a firms need for capital equipment without actually lending to the firm. Leases typically give the lessee firm the use of an asset over the most of the assets and, in addition, include the right to purchase the asset at the expiration of the lease term.

19

Purpose of Bank Products (Mentioned in Specific Products) 5.3 Line of Credit The purpose why company use this of loan or agreement is because it helps them weather periods when cash flow concerns are challenging. It is flexible, renewable loan arrangements in which funds that company has repaid become available again for future borrowing. As a result, a company can borrow the same money again over time without having to apply for a new loan. Letter of Credit The purpose why company uses this is to facilitate international trade. It is because of this that the exporter and importer can come along because the bank serves as a major guarantor thus facilitating the whole trading process and the chances of default and risk is low. Moreover it is because of this letter of credit that the exporter gets prompt payment for his goods as he can negotiate with the negotiating bank and get his payment and on the other hand the importer remains satisfied that the exporter cannot breech the contract because he has a strong guarantor which allows the trust of the exporter in the business as well. Thus both are beneficial in the end and ultimately the purpose of a letter of credit is accomplished that it facilitates the trade between the two parties. Term Loans The reason why company use this term loan is because it helps retire high cost of debt for a business, to provide an impetus to the research and development activities of an entity, to shore up the net worth of a business, to build assets for a business, to help grow a business through strategic investments, and to strengthen the asset base. Lease Financing Leasing is a way for leases (customers) to conserve capital because, in effect, they obtain 100% financing. Depending on the structure of the lease, the risk of ownership can be transferred to the lessor. Tax benefits could be also transferred to the lessor, resulting in lower lease payments to the lessee. Operating leases are off-balance sheet, which may improve certain of the lessees financial ratios.

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CHAPTER VI
Learning Experiences

Conducting a research study and writing business report provides us as researchers a potential method for learning, progressing and exploring a topic of interest. Obtaining new knowledge and making smart decisions trough this knowledge. Furthermore the researchers learned that doing a research study requires time, effort and sometimes money to have the evidence that the researcher needs to make a sound decision. And realized that the research gathered will have impact in the future decisions. In terms of Personal Selling the most learned experienced of the researcher is that it takes so much effort to have a prospect, make an appointment and meet objections. Why? Because base on the researchers experience there are prospect who are good in nature who will entertain researchers like us knowing that the prospects will not benefit nothing from us but there is also a prospect who are too busy and very impossible to make an appointment. So personal selling is for us the researchers are the most difficult part of this study. And made us realized that making objectives are easy but meeting and doing actions to make that objectives are the difficult part. Financial Statement Analysis gave also the researchers lessons that numbers are just numbers unless people know its meaning and explanation. Furthermore making an analysis is a factor for the researcher to provide insights on how effectively management is controlling. It enhances also the researchers patience, skills and talent to further study numbers not on what the researcher see it but reading behind the lines of those numbers to generate the most significant knowledge and details.

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ACKNOWLEDGEMENT
The researchers would like to express gratitude to all those who gave the possibility to complete this research. First the researchers want to thank professor Lilian V. Bunuan whose help, stimulating suggestions and encouragement helped the researchers in all the time of research for and writing of this research. Moreover the researchers want to thank the whole team who patiently work for this thesis who devotes time, money and effort. And lastly to our Lord who everyday guides us, gave us strength, knowledge and support to be able to accomplish this research.

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BIBLIOGRAPHY http://www.splash.com.ph http://pse.com.ph/stockMarket/home.html http://www.euromonitor.com/beauty-and-personal-care http://business.inquirer.net http://www.manilatimes.net http://www.philstar.com Bank Management by Hempel Financial Management by Keown

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ANNEX 1 Products Description

WHITENING DESCRIPTION Moisturizes the skin as a Cream and magically transforms itself into a powder. Light and non-sticky coverage is as good as face powder as it instantly hides blemishes and dark spots. Combines Vitamins B5, B3, B6, C & E to nourish & moisturize skin. It has SPF10 that protects you from harmful rays of the sun. Available in 20g and 8g Brings you skinwhite powerwhitening bath soap. Its exclusive and advances Tripower technology gives you the power of whitening. Whitens in as fast as 7 days. Vitanourish formula that combines Vitamins B5, B3 and E. In 65g, 90g and 135g sizes. Incredibly lightens dark spots. Provides skin clarity. Gives skin a moisture-surge. Can be used as a make-up base. In 10ml, 25g and 40g. Promotes fairer, whiter, more vibrant, healthy glowing skin in as early as 2 weeks. SPF protects skin from sun-damage caused by prolonged sun exposure. In 50ml, 100ml, 200ml and 350ml bottle. Each bar of Skinwhite Milk Bath Soap supplements the nourishment that your skin needs for a whiter and healthier look and feel. Its Milk proteins and Vitamin E lathers into a rich cream that moisturizes and softens skin. Available in 65g and 90g. Antiperspirant and deodorant for beautiful and dry underarms. Promotes smoother and whiter underarm in as early as 2 weeks. With refreshing scents that last all day. In stick and roll-on formats. Thoroughly cleanses skin, leaving it soft and smooth. Enriched with vitamins and natural moisturizers to nourish skin. With delicate scent that exudes vibrant freshness after every use. In 65g, 90g and 135g sizes Gently removes deep-seated dirt, clears and refines pores. Helps regulate pimples, blackheads and whiteheads formation Formulated with moisturizers to nourish your skin. In 30ml and 60ml bottle. Quick absorbing and deeply penetrates to naturally whiten skin. SPF 8 sunscreen protects skin from harmful UVA and UVB that damages and darkens skin. In 45ml, 90ml and 180ml bottles Antiperspirant and deodorant. 24

SKINWHITE Power Cream Powder

SkinWhite Power Whitening Soap

Power Whitening Face Cream Power Whitening Lotion Skin White Milk Soap

SkinWhite Whitening Deodorant SkinWhite Whitening Bath Soap Power Whitening Face Solution EXTRACT Extract Hand Body Lotion

Extract Papaya

Calamansi Skin Whitening Deodorant Extract Facial Cleanser Extract Soap

Gives all day protection from sweat and body odor. Helps smoothen underarms Gently removes deep-seated dirt, clears and refines pores. Refreshes and rejuvenates tired skin to reveal its natural glow. Infused with natural moisturizers. Gently cleanses for softer and smoother skin. With natural moisturizers to replenish skin's moisture. Non-drying. In 90g and 125g sizes/ In 100ml bottle

EXFOLIATION DESCRIPTION Cleans and lifts away deep-seated dirt. Helps dry up pimples & acne and remove blemishes, blackheads and whiteheads. Removes dead skin cells. Whiter skin in 2 weeks. Nourishes skin with Vitamins B3, B5, B6, C and E.

MAXI-PEEL Maxi-Peel Facial Cleanser Maxi-Peel Exfoliant Maxi-Peel Moisturizer Maxi-Peel Sun Block Maxi-Peel Exfoliant Soap Maxi-Peel Neck and Body Exfoliant Soap Concealing Cream Whitening

HAIR DESCRIPTION Helps protect color-treated hair. Penetrates deeply to moisturize each hair strand. Available in Silky Black, Brilliant Brown, Radiant Red Thoroughly cleanses and gently dissolves impurities. Special hydrating system makes hair soft and manageable with exceptional richness and shine. Available in Silky Black, Brilliant Brown, Radiant Red Specifically formulated for the unique color and texture of Asian hair. Deeply penetrates hair's cortex, giving superb color coverage from root to tip. Infused with Vitamins E and B5 that gives you a more vibrant and healthy hair. Hot oil benefits with the convenience of conditioner use. No heat, No wait. 25

KOLOURS Color Recharge Conditioner Color Recharge Shampoo

Dual Conditioning Hair Color Color Recharge

Hot Oil Conditioner

With color deposition properties that extends the color vibrancy of your black/brown hair, without changing its original color. Special hydrating system keeps hair soft, smooth, shiny and smelling fresh all day. With UV sunscreens that protect colored hair from sun damage and fading. Available in 2 variants: 12ml & 100ml Non-metallic formula that does not cause brittleness and dryness. Vitamin enriched for stronger, softer and shinier hair. Does not stain hands, scalp, and hair line heavily. NO ammonia and NO harsh odors. ONLY SRP 56.00. Available in: Black, Brown Black & Medium Brown [9g]. Smoothens dry, dull and hard-to-manage hair. Gives hair glossy shine. Enriched with moisturizers to nourish hair. Style straight or curly. Light, non-greasy hairstyling cream. Tame frizz and smoothens down fly-away hair without the sticky feeling Deeply penetrates each layer of hair strand for intense moisturization Leaves a glossy, silky shine hair In 50ml and 100ml tubes. Home-use hair spa treatment cream infused with aromatic scents. Revitalizes hair making it soft and smooth. Deeply penetrates to intensely moisturize each strand of hair. Nourishes scalp. In 30ml, 60ml and 120ml tubes. Non-sticky & non-flaking. Formulated with D-Panthenol that lock-in moisture to hair. In 125g, 250g and 500g bottles. Strong hold gels that keep any hairstyle in place. Non-sticky, Non-flaking. Tames hair with a sleek and wet finish. Non-sticky, Non-flaking. Light, non-greasy hairstyling cream. Prevents tangles and keeps hair silky soft, smooth and manageable. Tames frizz and smoothens fly-away hair without sticky feeling. In 50g tube [PHP 21.00],100g tube [ PHP 35.00], and 150g jar [PHP 50.00].

SHADES Power Hair Dye

VITRESS Vitress Cuticle Coat

Vitress Hair Polish

Vitress Hair Spa

Vitress Setting Lotion CONTROL Styling Gels Setting Lotions Hair Polish

ANTIBACTERIAL DESCRIPTION

HYGIENIX Anti-Bacterial Hand Gel

Effectively sanitizes hands while keeping it nourished and refreshed. It has a preferred scent and feel on skin. 26

Anti-Bacterial Hand Spray

Ethyl Alcohol

Available in 55ml and 100ml. Is packed in a unique handy spray bottle formulated with moisturizers to keep hands soft and smooth. It has dual-scent technology that is cool and refreshing. Available in 20ml and 55ml. Effectively kills germs and disinfects while soothing the skin. It has a non-drying formula and mild fragrance. Available in 60ml

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ANNEX 2
DUPONT ANALYSIS (2010)

Splash Corporation

Return on Common Equity (ROE) 6%

X
Return On Total Assets (ROA) 4% Financial Leverage Multiplier (FLM) 1.54

X
Net Profit Margin 4.84% Total Assets Turnover 0.73 Total Assets 4,082,153,525

Common Stock Equity 2,635,654,254

Earnings Available for Common Stockholder's 144,654,140

Sales 2,988,298,426

Sales 2,988,298,426

Total Assets 4,082,153,525

Total Liabilities 1,446,499,271

Stockholder's Equity 2,635,654,254

Splash low Return on Equity (ROE) is primarily because of high Total Assets resulted from high other current assets such as advances to suppliers, supplies inventory, and prepaid expenses, etc. High Total Assets slowed the Total Asset Turnover (ATO) that makes the ROA low as well as ROE. To improve ATO, Splash needs to increase production efficiency or price levels or reduce current or noncurrent assets.

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ANNEX 4 News Article

Splash to go into Food Business by Doris C. Dumlao August 5th, 2011 Personal care product manufacturer Splash Corp. is diversifying into food manufacturing with a deal to acquire 80 percent of Barrio Fiesta Manufacturing Corp. for P472 million. Splash plans to launch various food products in the next one to two years as part of its plan for the company to be a major player in the food industry. Splash net profits down in 3 quarter By: Paolo G. Montecillo November 17th, 2011 Splash Corp. has reported that its third-quarter profits went down, due to intense market competition. Splash posted a net income of P10.7 million in the third quarter of the year, down from P11.9 million a year ago. Domestic operations posted a drop in operating income for the first nine months amid strong competition but this was offset by the increase in income from the international operations and direct selling business, the company said. Splash raising P1.12B to repay debt, fund food expansion By: Doris C. Dumlao December 12th, 2011 Personal care products manufacturer Splash Corp. is raising P1.12 billion from the issuance of debt notes to selected institutional investors to boost its diversification into the food business and refinance maturing debts.

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In a disclosure to the Philippine Stock Exchange on Friday, Splash said it has signed an agreement on a corporate notes facility with Security Bank Corp., Robinsons Bank and Security Bank Corp. trust division. The arranger of the facility is SB Capital Investment Corp. The company, which bought an 80-percent stake in the food manufacturing unit of Barrio Fiesta last September, is upbeat on its foray into the food business. By next year, Hortaleza said the company would spend about P500 million for capital outlay, P200 million would go to the renovation and upgrade of its existing plant in Valenzuela and P300 million for advertising and promotion. Splash Corp. gears for major expansion By: Krista Angela Montealegre March 20, 2012

The distribution unit of Splash Corp. will increase its capitalization as it gears up for a major expansion drive this year.

In a disclosure to the Philippine Stock Exchange, the homegrown personal care manufacturer said that it has obtained board approval to hike the authorized capital stock of wholly owned subsidiary Prime Global Distribution Corp. to P100 million.

Splash will subscribe to 25 percent of the increase in authorized capital stock. Formerly Acceleron Distribution Corp., Prime Global distributes certain Splash brands to large-scale supermarkets in the Philippines.

This is in preparation for its expansion as a full blown distribution service provider starting this year, Splash said.

In the first nine months, Splashs earnings rose by 9 percent year-on-year to P66.63 million from P60.66 million on improved sales from its international and direct selling operations, as well as the recognition of additional revenues from its newly established food business Barrio Fiesta Manufacturing Corp. 34

The company has increased its capital expenditure budget to P426 million this year to finance the expansion of plant capacity, improvement of facilities and enhancement of management information systems for international and direct selling operations.

Splash shares finished at P1.91 each on Monday, up 2 centavos or 1.1 percent from its previous close of P1.89 apiece.

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