Danre E.

Bonghanoy BSA-2 MWF 3:00 – 4:00 PM

Finance 8
CORPORATE CEBU AIR, INC. BENGUET
PROFILE CORPORATION
Identity of company’s Cebu Air, Inc. (CEB), which is an airline company that BC is engaged primarily in
major products and operates under the trade name "Cebu Pacific Air," mining and mineral
services, current was incorporated on August 26, 1988. Its common exploration. The Company
position in industry, and stock was listed with the Philippine Stock Exchange currently produces and
on October 26, 2010. CEB currently operates a fleet markets gold, silver, nickel
history
of 57 aircraft which comprises of four Airbus A319, 36 ore and limestone. Benguet
Airbus A320, eight ATR 72-500, seven Airbus A330, Corporation (BC) was
and two ATR 72-600 aircrafts. It operates its Airbus established as sociedad
aircraft on both domestic and international routes. anonima on August 12,
The average aircraft age of the Group’s fleet is 1903 under its original
approximately 4.91 years as of December 31, 2016. name of Benguet
Consolidated Mining
Company. Its name was
changed to Benguet
Consolidated, Inc. in 1956
and finally to its present
corporate name in 1980.
The Company listed on the
Philippine Stock Exchange
on January 4, 1950.
Composition of sales
Product life-cycle
stages/experience curve
effects
Research &
development activities
Past and planned capital
expenditures
Board structure, Chairman Ricardo J. Romulo  Daniel Andrew G.
RomualdezChairman
composition, electoral Director Lance Y. Gokongwei
 Benjamin Philip G.
system, anti-takeover Director John L. Gokongwei, Jr. RomualdezVice Chairman, President &
provisions, and other Director James L. Go
Chief Executive Officer

corporate governance 
Director Jose F. Buenaventura
 Chuchi C. del PradoVice President-
issues Director Robina Gokongwei-Pe Human Resources & Administration

Director Frederick D. Go  Nilo Thaddeus P. RodriguezVP-

Project Control & Corporate Services
Independent Director Antonio L. Go 
Independent Director Wee Khoon Oh  Leopoldo S. SisonSenior Vice
President-Nickel Operations
President and Chief Executive Officer Lance Y. Gokongwei
 Dennis A. PadernalDirector
Senior Vice President - Chief Strategist and
Compliance Officer
Bach Johann M.
Sebastian

 Jesse H. T. AndresDirector

Chief Financial Officer Andrew L. Huang
Jose Raulito E. ParasDirector
Vice President Robin C. Dui

Vice President Samuel S. Avila II  Jennelyn F. GoDirector
Vice President Rosita D. Menchaca  Maria Remedios R.
PompidouNon-Executive Director
Antonio Jose L.
Vice President
Rodriguez 
Vice President Joseph G. Macagga  Luis Juan L. VirataNon-Executive
Director
Danre E. Bonghanoy BSA-2 MWF 3:00 – 4:00 PM
Finance 8
Vice President
Jose Alejandro B.  Max D. ArceñoVice President-
Reyes Accounting & Treasurer

Vice President Alexander G. Lao 

Candice Jennifer A.
 Lina G. FernandezSVP-Finance,
Vice President Comptroller, Nickel & Marketing
Iyog
 Dale A. TongcoAssistant Vice
Vice President Rhea M. Villanueva President-Internal Audit

Paterno S. Mantaring,
Vice President
Jr  Anna G. Vicedo-MontesAssistant
Vice President-Corporate Communications
Vice President Michael Ivan S. Shau
 Reynaldo P. MendozaSenior VP-
Chief Information Officer Laureen M. Cansana Public Affairs & Legal

Treasurer
Ma. Elynore J. 
Villanueva  Hermogene H. RealSecretary
Corporate Secretary Rosalinda F. Rivera  Reginald S. VelascoIndependent
Director
Assistant Corporate Secretary William S. Pamintuan

 Rhodora L. DapulaIndependent
Director
 Bernardo Malvar
VillegasIndependent Director

Management strengths,
weaknesses,
compensation, turnover,
and corporate culture
Benefits, retirement
Insurance, Health & Wellness
plans, and their
influence on shareholder
 CheckmarkHealth Care & Insurance (3)
value  Life Insurance
 Disability Insurance
 Dental Insurance
 Vision Insurance

Financial & Retirement

 Pension Plan
 Stock Options or Equity
 Retirement Plan
 Performance Bonus

Family & Parenting

 Work From Home

 Maternity & Paternity Leave
 Childcare
 Reduced or Flexible Hours
 Unpaid Extended Leave

Vacation & Time Off

 CheckmarkVacation & Paid Time Off (8)

 CheckmarkSick Leave (3)
 Bereavement Leave
Danre E. Bonghanoy BSA-2 MWF 3:00 – 4:00 PM
Finance 8
Perks & Benefits

 CheckmarkEmployee Discount (8)

 Free Lunch or Snacks
 Employee Assistance Program
 Gym Membership
 Company Car

Professional Support

 Diversity Program
 Job Training & Tuition
 Apprenticeship Program

Labor relations
Insider ownership levels
and changes
Legal actions and the
company’s state of
preparedness
Other special strengths
or weaknesses

INDUSTRY CHARACTERISTICS CEBU AIR, INC. BENGUET CORPORATION

Stage in its life cycle
Business-cycle sensitivity or
economic characteristics
Typical product life cycles in the
industry ( short and marked by
technological obsolescence or
long, such as pharmaceuticals
protected by patents)
Brand loyalty, customer
switching costs, and intensity of
competition
Entry and exit barriers
Industry supplier considerations
(concentration of sources, ability
to switch suppliers or enter
supplier’s business)
Number of companies in the
industry and whether it is, as
determined by market shares,
fragmented or concentrated
Opportunity to differentiate
product/services and relative
product/service price, cost, and
quality
Danre E. Bonghanoy BSA-2 MWF 3:00 – 4:00 PM
Finance 8
advantages/disadvantages
Technologies used
Government Regulation
State and history of labor
relations
Other industry
problems/opportunities

ANALYSIS OF DEMAND FOR CEBU AIR, INC. BENGUET CORPORATION

PRODUCTS/SERVICES
Sources of Demand
Product differentiation
Past record, sensitivities, and
correlations with social,
demographic, economic, and
other variables
Outlook—short, medium, and
long term, including new product
and business opportunities

ANALYSIS OF SUPPLY OF CEBU AIR, INC. BENGUET CORPORATION

PRODUCTS/SERVICES
Sources (concentration,
competition, and substitutes)
Industry capacity outlook—
short, medium, and long-term
Company’s capacity and cost
structure
Import/export considerations
Proprietary products or
trademarks

ANALYSIS OF PRICING CEBU AIR, INC. BENGUET CORPORATION

Past relationships among
demand, supply, and prices
Significance of raw material and
labor costs and the outlook for
their costs and availability
Outlook for selling prices,
demand, and profitability based
on current and anticipated
future trends
Danre E. Bonghanoy BSA-2 MWF 3:00 – 4:00 PM
Finance 8
ACTIVITY RATIOS CEBU AIR, INC. BENGUET CORPORATION
Days of sales outstanding (DSO) 8.53 days 182.58 days
Days of inventory on hand (DOH) 9.82 days 74.84 days
Days of payables outstanding 29.17 days 376.06 days
(DPO)

LIQUIDITY RATIOS CEBU AIR, INC. BENGUET CORPORATION

Current ratio 0.74 1.11
Quick ratio 0.64 0.74
Cash ratio 0.55 0.04
Cash conversion cycle (DOH + -10.82 -118.65
DSO –DPO)

SOLVENCY RATIOS CEBU AIR, INC. BENGUET CORPORATION

2.25 7.21
Net debt to EBITDA (earnings
before interest, taxes,
depreciation, and amortization)
Net debt to capital 50.74 15.48
Debt to assets 36.73 10.10
Debt to capital (at book and 103.01 18.32
market values)
Financial leverage ratio (Average 2.74% 1.79%
total equity)
Cash flow to debt
Interest coverage ratio
Off-balance-sheet liabilities and
contingent liabilities
Non-arm’s length financial
dealings

IV. PROFITABILITY RATIOS CEBU AIR, INC. BENGUET CORPORATION

Gross profit margin 18.00 31.17
Operating profit margin 14.90 -2.34
Pretax profit margin 12.07 3.19
Net profit margin 11.62 1.47
Return on invested capital ROIC 12.90 0.58
(Net operating profits after
tax/Average invested capital)
Return on assets or ROA (Net 7.35 032
income/ Average total assets)
Return on equity (Net income/ 21.58 0.58
Average total equity)
Danre E. Bonghanoy BSA-2 MWF 3:00 – 4:00 PM
Finance 8
V. FINANCIAL STATISTICS CEBU AIR, INC. BENGUET CORPORATION
AND RELATED
CONSIDFERATIONS
Growth rate of net sales 9.90% -4.65%
Growth rate of gross profit -12.94% -16.29%
EBITDA 18,183 94
Net income 7,908 21
Operating cash flow
EPS 13.05 0.03
Operating cash flow per share
Operating cash flow in relation 17,920 22,983
to maintenance and total capital
expenditures
Expected rate of return on
retained cash flow
Debt maturities and ability of
company to refinance and/or
repay debt
Dividend payout ratio (Common
dividends/Net income available
to common shareholders)
Off-balance-sheet liabilities and
contingent liabilities
Non-arm’s-length financial
dealings