PSE Circular for Brokers No. 1002-99

May 6, 1999 PSE CIRCULAR FOR BROKERS NO. 1002-99 PHILIPPINE STOCK EXCHANGE, INC. Exchange Road, Ortigas Center, Metro Manila Attention: Ms . Grace De Guia Asst . Manager - Disclosure Dept . Gentlemen : We are pleased to report the 1999 first quarter results for Aboitiz Equity Ventures. Compared to the same period in 1998, the company's income before Extraordinary gains for the first quarter of 1999 increased 14% from 266 million to 302 million pesos. Total earnings for the quarter, inclusive of the gain from the sale of our investment in Jardine Aboitiz Insurance Brokers, were 358 million pesos. This translates to earning per share for the quarter of 7 centavos. Aboitiz Power Corporation, representing AEV's electricity business interests, certificated 171 million pesos, 71% more than in 1998. Financial services added 90 million, while our portfolio investments contributed 27 million. Net earnings of 13 million at the parent company level provided the balance. aisadc Revenues for the first quarter of 1999 improved 17% to 1,388 million from 1,186 million for the same period in 1998. From year-end 1998 to March 31, 1999, Total Assets were up 2.6% to 13.74 billion, and Stockholders' Equity up 3% to 11.27 billion pesos. Total Liabilities declined slightly to 2.47 billion. Attached are summary schedules of the first quarter financial results. Very truly yours, (SGD.) JUAN ANTONIO E. BERNAD Senior Vice President & CEO Corporate Information Officer ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS AS AT MARCH 31, 1999 AND DECEMBER 31, 1998 (Amounts In Thousands) (UNAUDITED) MAR 1998 DEC 1998 ASSETS Property, Plant, and Equipment - net 2,445,227 2,446,021 Investments and Advances 7,610,706 7,509,975 Other Assets 235,255 223,503 Current Assets Cash and cash equivalents 794,838 726,034 Short-term cash investments 343,200 93,000 Marketable equity securities 504,880 504,264 Funds held in trust 410 262 Receivables, net of allowance for doubtful accounts 1,370,135 1,289,303 Inventories 399,161 570,159 Prepayments and other current assets 35,658 24,386 Total Current Assets 3,448,282 3,207,408 13,739,470 13,366,907 STOCKHOLDERS' EQUITY AND LIABILITIES Stockholders' Equity 11,269,958 10,916,278 Minority Interest 1,431 1,324 Long-term Debt - net of current portion 613,108 624,540 Customers' Deposits 527,141 524,956 Current Liabilities Bank Loans 730,146 687,525 Acceptances Payable 50,000 219,917 Accounts payable and accrued expenses 402,311 311,991 Income tax payable 87,554 53,506 Current portion of long-term debt 57,823 66,870 Total Current Liabilities 1,327,834 1,319,809 13,739,470 13,386,907 ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND RETAINED EARNINGS FOR THE PERIODS ENDED MARCH 31, 1999 AND 1998 (Amounts In Thousands) (UNAUDITED) 1999 1998 GROSS INCOME FROM OPERATIONS 1,259,746 1,065,309 COST AND EXPENSES 1,041,338 909,341 INCOME FROM OPERATIONS 218,408 155,968 OTHER INCOME (EXPENSES) Equity in net earnings of investees 127,859 121,718 Interest - net (3,168) 26,921 Minority Interest in earnings of consolidated subsidiaries (101) (668) Others 74,259 371,924 198,851 519,895 417,259 675,863 PROVISION FOR INCOME TAX 58,304 37,621 NET INCOME 358,955 638,242 RETAINED EARNINGS AT BEGINNING OF PERIOD 4,534,607 3,504,058 RETAINED EARNINGS AT END OF PERIOD 4,893,562 4,142,300 EARNINGS PER SHARE 0.07 0.12 ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES CONSOLIDATED CASH FLOW STATEMENTS FOR THE PERIODS ENDED MARCH 31, 1999 AND 1998 (Amounts in Thousands) (UNAUDITED) JAN-MAR/99 JAN-MAR/98 CASH FLOWS FROM OPERATING ACTIVITIES: Net Income for the period 358,955 638,242 Adjustments to reconcile net Income to net cash used in operating activities: Depreciation 44,185 39,160 Amortization of deferred retirement cost Unrealized foreign exchange gain - net of losses 2,883 35,808 Provision for deferred Income tax (801) (12,455) Provision for doubtful accounts 13,975 Provision for decline in marketable securities (618) 83,533 Equity in net earnings of affiliates (127,856) (121,718) Cash Dividends Received 18,250 9,008 Income applicable to minority Interest 101 868 Gain on sale of Investments (57,866) - Gain on sale of marketable equity securities - (551.313) Changes in: Decrease (Increase) in operating current assets 64,919 221,108 Increase (decrease) in operating current liabilities (51,810) 29,632 Net cash provided by operating activities 264,482 371,672 CASH FLOWS FROM INVESTING ACTIVITIES: Additions to property, plant and equipment - net (43,371) (76,417) Additions to investments in shares of stock and advances (3,256) (1,125,295) Proceeds from sale of investment 70,000 - Decrease (increase) in short-term cash investments (250,200) 259,333 Disposal (acquisition) of marketable equity securities - 1,023,859 Decrease (increase) in: Funds held in trust (147) 114,879 Other assets (11,752) (85,029) Net cash flows provided (used) by investing activities (238,727) 111,330 CASH FLOWS FROM FINANCING ACTIVITIES: Proceeds from (payments of) long-term debt (11,434) - Proceeds from (payments of) loans payable 62,621 257,024 Increase (decrease) in minority interest 6 (647) Purchase of treasury shares (5,275) (3,264) Net cash provided by financing activities 45,918 253,113 Effect of foreign exchange rate changes (2,869) (61,554) NET INCREASE IN CASH AND CASH EQUIVALENTS 68,804 674,561 CASH AND CASH EQUIVALENTS AT BEGINNING OF PERIOD 726,034 493,965 CASH AND SHORT-TERM INVESTMENTS AT END OF PERIOD 794,833 1,168,526