COMPUTATION OF RATIO

Profitability ratio

- net profit margin

- return on equity

- earnings per share

Liquidity ratio

- current ratio

- receivables turnover

Solvency ratio

- debt to assets ratio

- times interest earned ratio

Which company performs better in terms of profitability, liquidity, and solvency? Which company is more profitable, more liquid, and more solvent? Explain your answer.

Years Ended December 31 2020 2019 2018 REVENUE (Note 20) Real estate sales (Notes 20 and 30) P85,965,453 P157,848,573 P155,954,816 Interest income from real estate sales (Notes 7 and 20) 8,602,775 7,890,972 7,042,078 Equity in net earnings of associates and joint ventures (Notes 11 and 20) 586,502 965,787 749,924 95,154,730 166,705,332 163,746,818 Interest and investment income (Notes 6, 21 and 25) 394,701 930,445 958,236 Other income (Notes 21 and 24) 723,268 1,157,935 1,540,717 1,117,969 2,088,380 2,498,953 96,272,699 168,793,712 166,245,771 COSTS AND EXPENSES Cost of real estate sales (Note 22) 56,673,184 94,751,939 101,079,130 General and administrative expenses (Notes 22, 26 and 28) 8,011,813 9,367,359 9,101,328 Interest and other financing charges (Note 22) 12,745,720 12, 199,758 9,594,003 Other expenses (Note 22) 3,786,771 1,644,982 1,270,281 81,219,468 117,964,038 121,044,742 INCOME BEFORE INCOME TAX 15,053,211 50,829,674 45,201,029 PROVISION FOR INCOME TAX (Note 23) Current 4,687,956 12,455,010 13,390,637 Deferred (628,983) 859,633 (1,406,197) 4,058,973 13,314,643 11,984,440 NET INCOME P10.994.238 P37,515,031 P33,216,589 Net income attributable to: Equity holders of Ayala Land, Inc. (Note 27) P8,727,155 P33.188,399 P29,240,880 Non-controlling interests 2,267,083 4,326,632 3,975,709 P10,994,238 P37,515,031 P33,216,589 Earnings Per Share (Note 27) Net income attributable to equity holders of Ayala Land, Inc.: Basic and diluted 20.59 P2.25 P1.98Years Ended December 31 2020 2019 2018 NET INCOME P10,994,238 P37,515,031 P33,216,589 Other comprehensive income (loss) Item that may be reclassified to profit or loss in subsequent years: Cumulative translation adjustment (237,531) (617,831) 451,195 Items that will not be reclassified to profit or loss in subsequent years: Fair value reserve of financial assets at FVOCI (Note 10) (426,088) (3,220) 71,938 Remeasurement gain on pension liabilities (Note 26) (686,987) (167,754) (85,381) Income tax effect 206,096 50,326 25,614 (1,144,510) (738,479) 463,366 TOTAL COMPREHENSIVE INCOME P9,849,728 P36,776,552 P33,679,955 Total comprehensive income attributable to: Equity holders of of Ayala Land, Inc. P7,872,357 P32,449,920 P29,701,637 Non-controlling interests 1,977,371 4,326,632 3,978,318 P9,849,728 P36,776,552 P33,679,955December 31 2020 2019 ASSETS Current Assets Cash and cash equivalents (Notes 4 and 29) P17,037,347 P20,413,041 Short-term investments (Notes 5 and 29) 358,120 617,149 Financial assets at fair value through profit or loss (Notes 6 and 29) 965.171 485,436 Accounts and notes receivable (Notes 7 and 29) 101,145,909 105,039,306 Inventories (Note 8) 146,743,592 120,287,686 Other current assets (Note 9) 58,020,962 48,591,632 Total Current Assets 324,271.101 295,434,250 Noncurrent Assets Noncurrent accounts and notes receivable (Notes 7 and 29) 46,021,255 45,563,869 Financial assets at fair value through other comprehensive income (FVOCI) (Notes 10 and 29) 1,511,443 1,529,179 Investments in associates and joint ventures (Note 11) 26,601,254 25,317,581 Right-of-use assets (Note 33) 13,008,175 13,564,472 Investment properties (Note 12) 222,684,850 243,043,448 Property and equipment (Note 13) 43,446.968 43,062,357 Deferred tax assets - net (Note 23) 12,121,515 11,527,645 Other noncurrent assets (Notes 14 and 26) 31,827,813 34,880,477 Total Noncurrent Assets 397,223,273 418,489,028 P721.494.374 P713,923,278 LIABILITIES AND EQUITY Current Liabilities Short-term debt (Notes 16 and 29) P9. 131,325 P18,032,830 Accounts and other payables (Notes 15 and 29) 144,625,922 162,979,169 Income tax payable 1,455,612 2,123,379 Current portion of lease liabilities (Note 33) 466,801 724,859 Current portion of long-term debt (Notes 16 and 29) 18,732,401 17,250,706 Deposits and other current liabilities (Note 17) 25,317,246 25,472,581 Total Current Liabilities 199,729.307 226,583,524 Noncurrent Liabilities Long-term debt - net of current portion (Notes 16 and 29) 184,087,192 175,813,345 Pension liabilities (Note 26) 3,020,797 1,987,605 Lease liabilities - net of current portion (Note 33) 17,289,042 16,738,846 Deferred tax liabilities - net (Note 23) 7,148,534 6,090,754 Deposits and other noncurrent liabilities (Notes 18 and 29) 50,040,170 44,003,636 Total Noncurrent Liabilities 261,585,735 244,634, 186 Total Liabilities 461,315,042 471,217,7102020 2019 Equity (Note 19) Equity attributable to equity holders of Ayala Land, Inc. Paid-in capital P62,953,585 P62,772,446 Retained eamings 161,660,724 156,940,236 Stock options outstanding (Note 28) 42,279 Remeasurement loss on defined benefit plans (Note 26) (818,101) (337,210) Fair value reserve of financial assets at FVOCI (Note 10) (748,220) (457,358) Cumulative translation adjustments 167.395 250,440 Equity reserves (Note 1) 585.256 (7,056,459) Treasury stock (1,260,780) (1, 104,353) 222,539,859 211,050,021 Non-controlling interests (Note 19) 37,639.473 31,655,547 Total Equity 260,179.332 242,705,568 P721,494,374 P713,923,278