Professional Documents
Culture Documents
Current Assets
Cash and cash equivalents 3,963,912,683 4,706,090,063
Receivables 1,862,718,419 1,737,444,884
Financial assets at fair value through profit or loss - -
Expendable parts, fuel, materials and supplies 679,315,070 919,118,043
Other current assets 2,020,471,923 2,400,119,148
Total Current Assets 8,526,418,095 9,762,772,138
BALANCE 0 0
CAPEX
Total Revenue
EBITDA
EBIT
Earnings Before Tax
Tax Rate
EBIAT
Depreciation and Amortization
Accounts Receivable
Inventory (i.e if applicable)
Accounts payable and other accrued liabilities
CAPEX
Unlevered FCF
Discount Rate (WACC)
Present Value of Free Cash Flows
Sum of present values of FCFs 34,743,119,502
Terminal Value
Growth in Perptuity Method:
Long Term Growth Rate 1.60% retrieved from REUTERS
WACC 8.60%
Free Cash Flow (t+1) 9,566,829,544
Terminal Value 136,710,448,430
Present Value of Terminal Value in PHP 90,509,678,896
WACC
Share Price in PHP 108
Outstanding Shares 605,953,330
Cost of Debt 6.00% based from 2016 annual report
Tax Rate 30%
After-Tax Cost of Debt 4.20%
Cost of Equity 13.10%
WACC 8.60%
BUY
al Data Projected Annual Forecast
2016 2017F 2018F 2019F
1 2 3
61,899,278,892 63,039,168,274 64,200,048,979 65,382,307,568
0 0 0 0
5,596,086,221 5,596,086,221 5,596,086,221
Risk Free Rate from 10year Philippine Government Bond = 5.121% (from ADB Website) as of Nov 3, 2017
BETA = 0.95 as of Nov 3, 2017
Market Risk Premium = 8.4%
Rates of Return on Financial Assets in the Philippines
by R.C Ybanez (extended up to 2016)
nual Forecast
2020F 2021F
4 5
66,586,337,719 67,812,540,361
19,310,740,780 19,666,352,489
12,857,819,743 13,094,599,435
11,603,696,329 11,818,565,949
6,452,921,037 6,571,753,054
nual Forecast
2020F 2021F
4 5
10,600,004,182 10,111,274,536
2,324,220,611 2,376,376,974
- -
1,360,270,853 1,406,500,209
585,687,291 500,729,064
14,870,182,937 14,394,880,783
94,690,679,808 97,190,779,673
109,560,862,745 111,585,660,455
13,427,501,140 13,647,165,317
9,217,614,830 9,508,099,518
9,442,151,395 9,616,030,773
- -
45,522,229 46,360,531
24,152,000 24,151,999
32,156,941,595 32,841,808,139
75,453,585,240 76,945,224,866
34,107,277,505 34,640,435,590
109,560,862,745 111,585,660,455
0 0
5,596,086,221 5,596,086,221
nual Forecast
2020F 2021F
4 5
66,586,337,719 67,812,540,361
19,310,740,780 19,666,352,489
12,857,819,743 13,094,599,435
11,603,696,329 11,818,565,949
30.00% 30.00%
8,122,587,430 8,272,996,164
6,452,921,037 6,571,753,054
-51,011,643 -52,156,363
0 0
216,128,472 219,664,177
-5,596,086,221 -5,596,086,221
9,144,539,075 9,416,170,811
8.60% 8.60%
6,574,708,054 6,234,012,150
e) as of Nov 3, 2017
CEBU AIR, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
in PHP HISTORICAL DATA
Years Ended December 31
2014 2015
REVENUE
Sale of air transportation services
Passenger 40,188,445,623 42,681,069,939
Cargo 3,146,083,310 3,461,136,749
Ancillary revenues 8,665,489,377 10,359,447,828
52,000,018,310 56,501,654,516
EXPENSES
Flying operations 26,152,476,007 20,916,360,534
Aircraft and traffic servicing 4,805,212,489 5,847,099,305
Repairs and maintenance 4,432,437,982 5,240,478,648
Depreciation and amortization 4,281,525,018 5,111,543,724
Aircraft and engine lease 3,503,484,521 4,024,599,732
Reservation and sales 2,153,987,158 2,625,456,497
General and administrative 1,296,817,694 1,552,148,933
Passenger service 1,216,740,451 1,483,746,337
47,842,681,320 46,801,433,710
NET OPERATING PROFIT 4,157,336,990 9,700,220,806
4,157,336,990 9,700,220,806
OTHER INCOME (EXPENSES)
Hedging gains (losses) - net -2,314,241,984 -2,931,215,906
Equity in net income of joint ventures 96,326,091 35,418,498
Interest income 79,927,272 83,006,926
Loss on sale of aircraft -80,267,191
Interest Expense -1,013,241,353 -1,073,109,693
Foreign exchange losses - net -127,471,032 -2,205,258,151
-3,278,701,006 -6,171,425,517
PROVISION FOR (BENEFIT FROM) INCOME TAX (Note 25) 25,137,768 -858,430,586
EXPENSES
Flying operations 26,152,476,007 20,916,360,534
Cost Ratio 50.29% 37.02%
Aircraft and traffic servicing 4,805,212,489 5,847,099,305
Cost Ratio 9% 10.35%
Repairs and maintenance 4,432,437,982 5,240,478,648
Cost Ratio 9% 9.27%
Depreciation and amortization 4,281,525,018 5,111,543,724
Cost Ratio 8% 9.05%
Aircraft and engine lease 3,503,484,521 4,024,599,732
Cost Ratio 7% 7.12%
Reservation and sales 2,153,987,158 2,625,456,497
Cost Ratio 4% 4.65%
General and administrative 1,296,817,694 1,552,148,933
Cost Ratio 2% 2.75%
Passenger service 1,216,740,451 1,483,746,337
Cost Ratio 2% 3%
47,842,681,320 46,801,433,710
1,587,708,081
178,308,842
113,672,171
-962,608,741
-1,170,181,141 -1,190,624,706 -1,211,425,428 -1,232,589,548
-2,281,932,689
-2,535,033,477
-37,971,487 30%
11,211,184
3,363,357
7,847,827
9,761,984,023
16
1 2 3
CAGR
46,592,511,272 1.77% 47,416,804,542 48,255,680,830 49109398131.1954
1.77% 1.77% 1.77%
3,563,752,865 0.59% 3,584,638,324 3,605,646,183 3626777159.62978
0.59% 0.59% 0.59%
11,743,014,755 2.54% 12,041,156,649 12,346,868,029 12660341076.5326
2.54% 2.54% 2.54%
61,899,278,892 1.84% 63,039,168,274 64,200,048,979 65382307567.8382
1.84% 1.84% 1.84%
1,587,708,081
178,308,842
113,672,171
-962,608,741
-1,170,181,141 -1,190,624,706 -1,211,425,428 -1,232,589,548
-1.89% 1.75% 1.75% 1.75% 1.75%
-2,281,932,689
-2,535,033,477
AST
2020 2021
49,978,219,006 50,862,410,660
3,648,031,974 3,669,411,353
12,981,772,851 13,311,365,415
66,586,337,719 67,812,540,361
21,185,619,255 21,575,757,280
7,076,074,640 7,206,382,173
7,025,378,808 7,154,752,766
6,452,921,037 6,571,753,054
4,575,819,419 4,660,084,181
3,454,888,071 3,518,510,625
1,950,328,460 1,986,244,204
2,007,488,287 2,044,456,643
53,728,517,976 54,717,940,926
12,857,819,743 13,094,599,435
-1,254,123,414 -1,276,033,486
11,603,696,329 11,818,565,949
8,122,587,430 8,272,996,164
4 5
49978219005.8631 50862410659.6684
1.77% 1.77%
3648031974.38824 3669411353.49972
0.59% 0.59%
12981772850.7425 13311365415.0011
2.54% 2.54%
66586337719.2541 67812540361.3552
1.84% 1.84%
21,185,619,255 21,575,757,280
31.82% 31.82%
7,076,074,640 7,206,382,173
10.63% 10.63%
7,025,378,808 7,154,752,766
10.55% 10.55%
6,452,921,037 6,571,753,054
9.69% 9.69%
4,575,819,419 4,660,084,181
6.87% 6.87%
3,454,888,071 3,518,510,625
5.19% 5.19%
1,950,328,460 1,986,244,204
2.93% 2.93%
2,007,488,287 2,044,456,643
3.01% 3.01%
53,728,517,976 54,717,940,926
-1,254,123,414 -1,276,033,486
1.75% 1.75%
CEBU AIR, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION
HISTORICAL DATA
2014 2015
ASSETS
Current Assets
Cash and cash equivalents 3,963,912,683 4,706,090,063
Receivables 1,862,718,419 1,737,444,884
Financial assets at fair value through profit or loss 0 0
Expendable parts, fuel, materials and supplies 679,315,070 919,118,043
Other current assets 2,020,471,923 2,400,119,148
Total Current Assets 8,526,418,095 9,762,772,138
Noncurrent Assets
Property and equipment 65,227,125,368 72,075,821,013
Investments in joint ventures 591,339,486 525,623,987
Goodwill 566,781,533 566,781,533
Deferred tax assets - net 876,296,996
Other noncurrent assets 1,150,594,326 1,021,286,522
Total Noncurrent Assets 67,535,840,713 75,065,810,051
Current Liabilities
Accounts payable and other accrued liabilities 10,668,437,651 11,602,989,706
Unearned transportation revenue 6,373,744,740 6,971,754,698
Current portion of long-term debt 4,712,465,291 5,423,699,184
Financial liabilities at fair value through PnL 2,260,559,896 2,443,495,138
Due to related parties 39,909,503 38,115,803
Income tax payable 5,831,638 20,038,200
Total Current Liabilities 24,060,948,719 26,500,092,729
Noncurrent Liabilities
Long-term debt - net of current portion (Notes 13 and 18) 29,137,197,374 31,165,286,307
Deferred tax liabilities - net (Notes 7 and 25) 129,160,379 0
Pension liability (Note 24) 385,665,449 546,480,714
Other noncurrent liabilities (Note 19) 810,482,700 1,661,527,283
Total Noncurrent Liabilities 30,462,505,902 33,373,294,304
Total Liabilities 54,523,454,621 59,873,387,033
Equity
Common stock (Note 20) 613,236,550 613,236,550
Capital paid in excess of par value 8,405,568,120 8,405,568,120
Treasury stock -529,319,321 -529,319,321
Other comprehensive loss (Notes 9 and 24) -131,968,292 -193,873,203
Retained earnings (Note 14) 13,181,287,130 16,659,583,010
Total Equity 21,538,804,187 24,955,195,156
COMPUTAT
2016 % allocation
Property and equipment 81,890,303,497 99.31%
Goodwill 566,781,533 0.69%
82,457,085,030 100%
2016
Depreciation and amortization Expense 5,998,695,417
Depreciation 5,957,462,456
Amortization 41,232,961
PPE depreciation rate 7.27%
2014 2015
Investments in joint ventures 591,339,486 525,623,987
Long-term debt - net of current portion (Notes 13 and 18) 29,137,197,374 31,165,286,307
2014 2015
Retained earnings (Note 14) 13,181,287,130 16,659,583,010
BEG. BALANCE
NET INCOME BEFORE TAX
DECLARED DIVIDEND
Appropriation of RE
Treasury stock -529,319,321 -529,319,321
END BALANCE
COMPUTATIONS
GROSS NET
87,847,765,953 ###
608,014,494 ###
0 0 0 0 0
2016 CAGR
19,126,054,236 7.17% 5,596,086,221 5,596,086,221 5,596,086,221 5,596,086,221
41.36%
5,596,086,221
2021
10,111,274,536
2,376,376,974
0
1,406,500,209
500,729,064
14,394,880,783
93,041,212,886
1,235,323,857
566,781,533
1,315,081,035
1,032,380,360
97,190,779,673
111,585,660,455
13,647,165,317
9,508,099,518
9,616,030,773
0
46,360,531
24,151,999
32,841,808,139
41,055,489,205
0
591,966,972
2,455,960,549
44,103,416,727
76,945,224,866
613,236,550
8,405,568,120
-529,319,321
-178,495,223
26,329,445,463
34,640,435,590
111,585,660,455
2021
6,571,753,054
0
2021
1,235,323,857
8.92%
1,315,081,035
4.14%
1,032,380,360
0.11%
93,041,212,886
2.59%
6,768,683,335
86,272,529,551
591,966,972
0.80%
2,455,960,549
-11.34%
-178,495,223
-0.82%
41,055,489,205
2.79%
2021
25,797,768,620
8,272,996,164
-606,000,000
-6,606,000,000
-529,319,321
26,329,445,463
5,596,086,221
HISTORICAL DATA
2014
TOTAL REVENUE 52,000,018,310
OPERATING EXPENSES 47,842,681,320
Net Operating Income (Loss) 4,157,336,990
CURRENT ASSETS
Current Assets
Cash and cash equivalents 3,963,912,683
Receivables 1,862,718,419
Financial assets at fair value through profit or loss 0
Expendable parts, fuel, materials and supplies 679,315,070
Other current assets 2,020,471,923
Total Current Assets 8,526,418,095
Current Liabilities
Accounts payable and other accrued liabilities 10,668,437,651
Unearned transportation revenue 6,373,744,740
Current portion of long-term debt 4,712,465,291
Financial liabilities at fair value through profit or loss 2,260,559,896
Due to related parties 39,909,503
Income tax payable 5,831,638
Total Current Liabilities 24,060,948,719
0 441,773,905 0 0
0.71% 0.71% 0.71% 0.71%
11,516,274,539 11,310,664,066
4,706,090,063 10,296,242,304 11.85% -1.79%
FORECASTS
2019 2020 2021
65,382,307,568 66,586,337,719 67,812,540,361
52,756,986,010 53,728,517,976 54,717,940,926
12,625,321,558 12,857,819,743 13,094,599,435
0 0 0
0.71% 0.71% 0.71%