Bloombery Resorts Corporation (BLOOM) The start of something good

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1 WEDNESDAY, 02 JANUARY 2013 Bloombery Resorts Corporation (BLOOM) The start of something good A pure-play on the budding Philippine gaming market. Bloomberry is a pure-play on the growing Philippine gaming sector, being the first PAGCOR license holder to put up a hotel casino complex in PAGCOR City. Scheduled to open in March of 2013, Solaire Manila will be a high-end casino and hotel complex with 300 gaming tables, 1,200 slot machines, 500 hotel rooms, and six restaurants with a total seating capacity of 1,086 located on an 8.3-hectare lot on the bayside portion of Entertainment City. Once operations mature in 2015, we expect more than 90% of revenues to come from gaming sources, with the VIP segment accounting for 48% of revenues. In contrast, only 27.1% of revenues and 22.3% of attributable profits of AGI currently come from gaming. Philippine gaming sector to enter new growth phase. Economic growth in the Philippines is expected to remain strong in the next few years, driven by its resilient consumer sector and an expected pick up in investment spending. This should lead to higher disposable income among Filipinos for leisure activities including gaming. Meanwhile, the gaming sector should benefit from the development of PAGCOR City - the Philippines soon-to-be gaming and entertainment complex that will be built on an 8 sq km piece of property on the reclamation area of Manila Bay. Experienced management team and solid partner. Bloomberry has hired former casino executives from big groups such as Galaxy Macao, Wynn Resorts and Marina Bay Sands to head its management team. Bloomberry also signed a management services agreement with Global Gaming Asset Management LCC (GGAM), which has a long and successful track record of creating and operating world-class integrated resorts including The Venetian in Las Vegas, Four Seasons and City of Dreams in Macao, and The Marina Bay Sands in Singapore. GGAM also has direct customer relationships as well as relationships with regional junket operators, which should help BLOOM attract VIPs and junkets to Solaire. Strong revenues and income right at the onset. We forecast Bloomberry to start earning profits in the first year of operations. We forecast revenues to reach Php15.7 Bil in FY13 and to mature at Php41.8 Bil by FY15. Net profits are projected to reach Php2.29 Bil in FY13, growing to Php10.41 Bil in FY15. This would imply an attractive ROE of 31.6% by Favorable outlook already priced in. BLOOM s favorable earnings outlook is already priced in. Our 2013 fair value estimate for BLOOM at Php13.87 based on the DCF method. We used a WACC of 8.5% and assumed a terminal growth rate of 3%. BLOOM s current price of Php13.58 is almost at par with our FV estimate. Moreover, at Php13.58, BLOOM would be trading at 11.84X normalized FY15E EV/EBITDA, a premium to the average 11.09X FY13E EV/EBITDA of its gaming peers. This is not withstanding the larger operational risk given that BLOOM s Solaire is not yet operational. Forecast Summary (PhpMil) Year to December 31 (Php Bil) 2013E 2014E 2015E Revenues 15,736 34,193 41,774 % change y/y N/A 117.3% 22.2% EBITDA 4,282 10,249 13,018 % change y/y N/A 139.3% 27.0% EBITDA margin 27.2% 30.0% 31.2% EBIT 3,241 8,806 11,190 % change y/y N/A 171.7% 27.1% EBIT margin 20.6% 25.8% 26.8% Net profits 2,289 7,677 10,139 % change y/y N/A 235.4% 32.1% Net profit margin 14.5% 22.5% 24.3% EPS (cents) % change y/y N/A 235.4% 32.1% SHARE DATA Rating Ticker BLOOM Fair Value (Php) Current Price Upside (%) 1.03 ABSOLUTE PERFORMANCE MARKET DATA HOLD SHARE PRICE MOVEMENT Oct-12 2-Nov-12 2-Dec-12 2-Jan-13 BLOOM PSEi 1M 3M YTD BLOOM PSEi Market Cap 144,868.46MIl Outstanding Shares 10,589.80Mil 52 Wk Range Mo Ave Daily T/O Mil RICHARD LAÑEDA, CFA richard.laneda@colfinancial.com RELATIVE VALUE P/E (X) P/BV (X) ROE (%) 12.6% 33.1% 31.6% Source: BLOOM

2 Initiating coverage on Bloomberry with a HOLD rating with a fair value estimate of Php13.72 Bloomberry Resorts Corp. is a pure-play on the promising Philippine gaming sector. It is the second PAGCOR license holder to put up a hotel casino complex in Manila and the first to open in PAGCOR City. With a focus on the VIP market, we believe Bloomberry will be able to capture a piece of the international VIP gaming market which is currently underserved in the Philippines. However, the positive outlook for Bloomberry is already priced in given the significant share price appreciation of its stock. At Php13.58, BLOOM is trading almost at par with our fair value estimate of Php13.72, and is trading at an EV/EBITDA multiple that is almost at par with its regional peers. This is not withstanding the larger operational risk given that BLOOM s Solaire is not yet operational. Thus, we are initiating coverage with a HOLD rating. Philippine gaming sector to enter new growth phase We have a positive outlook on the Philippine gaming sector. The country s favorable growth outlook as well as the government s plans to grow the gaming sector should allow companies such as Bloomberry to capitalize on Filipino s improving propensity to spend on leisure activities and to capture a share of Asia s lucrative gaming market. Favorable growth outlook of the local economy In contrast to the US and Europe, the Philippines has been growing at above average pace since Growth was primarily led by consumption spending, which increased by a CAGR of 4.3% during the past three years. During 9M12, it increased by 5.7%. We expect this trend to continue given resilient OFW remittances and the continuous growth in the BPO sector. Despite the negative developments in the global economy, OFW remittances grew by 5.8% during the first 10 months of the year. Meanwhile, after increasing by a CAGR of 20% during the past 6 years, the Business Processing Association of the Philippine (BPAP) forecasts BPO revenues to increase by a CAGR of 20% during the next five years. The growth outlook for investment spending is also highly favorable. Aside from huge opportunities in investments spending as implied by the country s low investment to GDP ratio of only 20% (vs. the average of 29% in other Asian countries), improving investor confidence and availability of cheap financing should help fuel growth in investment spending. After peaking at 10.9% during 2008, the 10- year t-bond yield is now only 4.46%. Meanwhile, banks remain highly liquid with loans to deposit ratio at 71% as of 9M12. More investments should lead to greater job creation and thus raise disposable income for consumption and leisure activities including gaming. PAGCOR City to change the game We believe the development of PAGCOR City will change the face of Philippine gaming as this would greatly expand the gaming capacity of the country, thus creating scale. This in turn will help the gaming industry attract more local and foreign players. page 2

3 Build it and they will come PAGCOR City or Entertainment City is the Philippines soon-to-be gaming and entertainment complex that will be built on an 8 sq km piece of property on the reclamation area of Manila Bay. All investments in PAGCOR City will come from private companies and could reach up to US$15 Bil or Php360 Bil. The first phase of the mega-project will be the casinos and hotels that the four PAGCORlicense holders are currently constructing. The four license holders are Bloomberry, Belle, Manila Bay Resorts and Travellers. Bloomberry will complete the first casino complex Solaire by 1Q13. This will be followed by Belle s Belle Grande casino by end Manila Bay Resorts of Japanese Billionaire Kazuo Okada is scheduled to operate in 2015, while Travellers, the operator of Resorts World Manila, will put up its second casino complex dubbed as Resorts World Bayshore, in Once the four groups complete their casino projects, the total number of gaming tables in the country will jump from 905 as of end 2012 to 2,475. PAGCOR City will aslo add 8,100 slot machines. The expected growth in number of tourists will also be supported by the 6,850 hotel rooms that will be built in PAGCOR City. Exhibit 1: PAGCOR City layout Source: Bloomberry Given the significant increase in gaming capacity as well as the amount of resources that will most likely be spent to promote Pagcor City, we anticipate a substantial growth in the country s gaming revenues. Philippine gaming revenues already showed a substantial growth from Php20.5 Bil in 2006 to Php50.21 Bil in 2011, largely driven by the opening of Resorts World Manila (RWM). The opening of RWM, with 300 tables and 1,800 slot machines, expanded the Philippine gaming market as it attracted local and foreign VIP players. It also attracted new mass-market players. In FY11, after only three years of operations, RWM already accounted for 50.6% of total gaming revenues. Contrary to expectations, the opening of RWM did not lead to the cannibalization of PAGCOR s business as the gaming market actually expanded. page 3

4 In our forecasts, we assumed that Philippine gaming revenues will grow to Php113.1 Bil or US$2.7 Bil by Although this is a big jump from Php50.2 Bil in 2011, it is small compared to the gaming revenues of other regional gaming centers. For example, in 2011, Macau s gaming revenues reached US$35 Bil while Singapore s gaming revenues already totaled US$5.1 Bil despite having only two casinos. We believe that the regional gaming market is big enough to accommodate added capacity from the Philippines. Exhibit 2: Philippine gaming revenues Php Bil PAGCOR Travellers Source: PAGCOR, Travellers Exhibit 3: Casinos and hotels in PAGCOR City Opening date # of room # of slot machines # of tables Solaire (Bloomberry) 1Q , Belle Grande (Belle) 4Q , Manila Bay Resorts (Aruze) ,050 3, Resorts World Bayshore (Travellers) ,500 2, Total 6,850 8,100 1,500 Source: Bloomberry, Bloomberg, Belle, COL estimates page 4

5 Exhibit 4: Gaming tables in the Philippines E 2013E 2014E 2015E 2016E Resorts World Bayshore Manila Bay Resorts Belle Grande Solaire Resorts World Manila PAGCOR Source: Bloomberry, Bloomberg, COL research, COL estimates Competitive tax structure One of the reasons why we believe that the Philippines will succeed in gaining a bigger share of the regional gaming market is the country s attractive tax structure. This gives gaming companies greater leeway in luring junket operators. Under the current license given by PAGCOR, gaming operators are required to pay 15% of its VIP gaming revenues and 25% of mass table revenues to PAGCOR. In return, gaming operators are exempt from paying corporate income tax on gaming revenues. In contrast, casino operators in Macau pay a tax of 39% on all gaming revenues both VIP and mass market alike and 12% on net profit. Singapore offers the lowest tax rate for casino operators at just 5% for VIP revenues and 15% for mass market revenues. However, Singapore has so far issued licenses to only two junket operators, and these junket operators are only allowed to bring gamblers to Resorts World, not Marina Bay Sands. Given the conservative approach of the Singaporean government, it is not expected to grant a lot of junket licenses in the future. The lower tax structure of Philippine casino operators provides them with greater flexibility in offering higher commissions to junket operators. This in turn should encourage junket operators to bring business to the Philippines. Exhibit 5: Tax structure in the region VIP tables Mass Mkt Goods & Services Tax Macau 39% 39% 12% n/a Singapore 5% 15% 17% 7% Philippines 15% 25% 0% n/a Source: COL research page 5

6 Growth in tourism to give gaming a boost Part of the government s priorities is to develop the tourism sector. With the entry of more budget airlines and improvement of airports and other infrastructure, visitor capacity will grow, making the Philippines more visitor-friendly. A number of local airports are being improved while expressways are being built to improve traffic in the city. Exhibit 6: PPP infrastructure projects Project name Php Bil New Bohol Airport Development 8 Mactan-Cebu Airport Passenger Terminal O&M of Laguindiangan Airport 1.8 O&M of Puerto Princesa Airport N/A NAIA Expressway Project (Phase 2) NLEX-SLEX Connector Road Total 55.9 Source: PPP Center, COL estimates Tourism Secretary Ramon Jimenez Jr. believes that with the developments taking place in the Philippines, foreign tourist arrivals will reach at least 10 Mil in This implies a CAGR of 21.9% from 3.71 Mil visitors in The tourism secretary also expects tourism revenues to reach Php2 Tril. The positive outlook for tourism arrivals and tourism spending should also benefit the gaming sector in the country. Bloomberry Company background Bloomberry Resorts Corporation (BLOOM) indirectly owns 100% of Bloomberry Resorts and Hotels, Inc., which is one of the groups granted a provisional license to develop an integrated casino hotel within Entertainment City in 2009 by PAGCOR. Bloomberry Resorts listed in the Philippine Stock Exchange in 2012 after its principal owner, Enrique Razon, acquired listed-company Active Alliance (AAI) and did a back door listing. Enrique Razon indirectly owns 80% of Bloomberry through his companies Prime Metroline Transit, Quasar Holdings, and Falcon Investco Holdings. page 6

7 Solaire Manila opening in 1Q13 Solaire Manila is Bloomberry flagship project and will be the first casino-hotel complex to open in PAGCOR City in the first quarter of Solaire will be a high-end casino and hotel complex with 300 gaming tables, 1,200 slot machines, 500 hotel rooms, and six restaurants with a total seating capacity of 1,086. It is being constructed on an 8.3-hectare lot on the bayside portion of Entertainment City. Total project cost is estimate at US$721 Mil (Php30 Bil). Around 47% will be funded by equity and 53% will be funded by debt. In April 2012, Bloomberry raised around Php9.3 Bil through an equity offering, to partly fund the construction of Solaire Manila. Premium gaming experience Solaire aims to cater to the underserved local and foreign VIP players while capturing a good share of the mass market. Solaire looks to offer players a premium gaming experience through its efficient layout and design. Solaire will have 18,500sqm of uninterrupted gaming area, one third of which is allocated to VIP players. The entire first floor will be allocated to the mass market segment, with a portion for VIP players. A portion of the first floor will also be for the restaurants. The second floor will be entirely for VIPs. The casino complex will have minimal retail shops to give players less distraction. To support the gaming operations of Solaire, Bloomberry is already constructing the expansion of the first Phase of Solaire. Phase1A will have a 300-room all-suite hotel, a 2,000-seat theater, 5,000-6,000sqm of retail space, and a few restaurants. Experienced management team Bloomberry has hired former casino executives to head up management team. For example, its COO is Michael French, a former Senior VP of Macao s City of Dreams. Its CFO is Xingyu (Ed) Chen, a former Financial Controller of Wynn Resorts. Its VP of IT is Gregory Dauenhauer, a former IT director of Marina Bay Sands. Bloombery s experienced management team will help shorten the company s learning curve, notwithstanding its first foray into gaming. Taking on a solid partner Aside from hiring former casino executives, Bloomberry signed a management services agreement with Global Gaming Asset Management LCC (GGAM) through Global Gaming Philippines LLC for a term of five years plus five. We believe that Bloomberry s partnership with GGAM will enhance the value of the company. As a background, GGAM has a long and successful track record of creating and operating world-class integrated resorts. Led William Weidner (former president of Las Vegas Sands), Bradley Stone (former president of Global Operations and Construction of Las Vegas Sands) and Garry Saunders (former chief operating officer of Melco Crown), GGAM was involved in the development of projects such as The Venetian Las Vegas, The Venetian Macao, The Sands Macao, The Four Seasons Macao, The City of Dreams Macao, and The Marina Bay Sands in Singapore. page 7

8 Under its agreement with GGAM, GGAM will provide management services through a management team nominated by GGAM and approved by Bloomberry. GGAM will be compensated based on certain percentage (2-6%) of the EBITDA generated by the Solaire Manila facilities including the EBITDA generated by local high roller table games. Aside from management services, GGAM can also help Bloomberry attract VIP players given GGAM s direct customer relationships as well as relationships with regional junket operators. GGAM also has an incentive to attract VIP players since it is entitled to earn an additional graduated fee (6-40%) for achieving certain EBITDA thresholds with respect to the EBITDA generated by foreign high roller tables and foreign junket players each fiscal year. Bloomberry to take its own piece of the pie We forecast BLOOM s gaming revenues to reach Php15.1 Bil in This is expected to more than double to Php31.46 Bil in 2014, its first full year of operations, and to reach Php38.43 Bil by FY15, when operations mature. By FY15, around 48% of revenues will come from the VIP segment. Only 5-8% of revenues are projected to come from non-gaming operations such as the hotel and restaurants as these exist only to support gaming operations. Exhibit 7: Assumptions for gross gaming revenues FY13E FY14E FY15E VIP Junket # of tables average daily net wins (US$) 5,600 13,000 16,000 Premium direct # of tables average daily net wins (US$) 2,500 5,800 7,300 Mass market # of tables average daily net wins (US$) 1,900 4,000 4,500 Slots # of machines 1,200 1,200 1,200 average daily net wins (US$) Source: COL estimates Exhibit 8: Gaming revenue breakdown 100% 90% 80% 70% % 50% 40% 30% 20% % 0% FY13 FY14 FY15 FY16 VIP Mass market Source: COL estimates page 8

9 We forecast gaming EBITDA to reach Php4.28 Bil in FY13 and Php10.25 Bil in FY14, implying an EBITDA margin of 27.2% in FY13 and 30.0% in FY14. In FY15, we forecast gaming EBITDA to reach Php13.02 Bil and EBITDA margin to reach 31.2%. Net income is forecast to reach Php2.29 Bil in FY13, Php7.68 Bil in FY14 and Php10.14 Bil in FY15, translating to an earnings per share of Php0.22, Php0.72, and Php0.96 for the said years respectively. ROE is expected to reach a very healthy 31.6% by FY15. Exhibit 9: Philippine gaming revenues Php Bil E 2014E 2013E 2012E PAGCOR Travellers Bloomberry Source: COL estimates Although our forecast assumptions are largely based on the guidance of BLOOM s management, we believe that our numbers are reasonable. Our forecasts for revenues and profits are comparable to that of Travellers which currently operates 307 tables and 1,800 slots. During 9M12, Travellers generated Php23.58 Bil in gaming revenues and Php3.54 Bil in profits. EBITDA margin reached 25.7%. Moreover, as discussed earlier, we assumed that the opening of Solaire will lead to the expansion of Philippine gaming revenues. As such, there will be no cannibalization of market share from both Travellers and PAGCOR. Exhibit 10: Bloomberry financial highlights in Php Mil 2013E 2014E 2015E 2016E Total revenues 15,736 34,193 41,774 48,533 EBITDA 4,282 10,249 13,018 15,207 EBITDA margin 27.2% 30.0% 31.2% 31.3% EBIT 3,241 8,806 11,190 12,994 EBIT margin 20.6% 25.8% 26.8% 26.8% Net profit after tax 2,289 7,677 10,139 12,005 Source: COL estimates Balance sheet to strengthen after 2013 Bloomberry s balance sheet will be heavily levered in 2013 given the huge capital expenditure for the construction of Solaire. Based on our estimates, net debt-to-equity ratio will reach 0.50X in However, we forecast net debt-to-equity ratio to ease to 0.27X in 2014 and for the company to be in a net cash position by From 2013 to 2015, we forecast Bloomberry s operating cash flow to be more than enough to fund cover its capex requirement. During the said period, cash flow from operations is projected to reach Php26 Bil. This is more than enough to cover the Php18.2 Bil capex that will be spent, including the US$250 Mil capex for the Phase 1A expansion. page 9

10 Valuations rich We set our end 2013 fair value estimate for BLOOM at Php13.72 based on the DCF model. We used a WACC rate of 8.5% and assumed a terminal growth rate of 3%. Our FV estimate implies an EV/EBITDA of 15.21X for FY14E. Although this is a premium compared to regional peers, it should narrow to 11.97X in FY15 once EBITDA matures. The said multiple is closer to its regional peers. Exhibit 11: WACC assumptions Cost of Equity 11.5% Equity as % of capital 42% Cost of Debt 9.0% Debt as % of capital 58% WACC 8.5% Source: COL estimates Exhibit 12: Fair value assumptions in Php Mil Net present value of cash flow 155,884.5 Net debt 10,570.8 FV estimate 145,313.7 Outstanding number of shares 10,589.8 FV estimate per share in Php Source: COL estimates Exhibit 13: Relative valuation of regional peers 2013E Company Symbol EV/EBITDA Las Vegas Sands LVS US Wynn Resorts WYNN US 9.13 MGM Resorts International MGM US 9.96 Genting Singapore GENS SP Galaxy Entertainment 27 HK 12.4 SJM Holdings 880 HK 9.89 Wynn Macau 1128 HK Sands China 1928 HK MGM China 2282 HK 9.41 Average Source: Bloomberg page 10

11 Although the prospects of the Philippine gaming sector are attractive, this is already reflected in BLOOM s current share price. At Php13.58, BLOOM is trading almost at par with our FV estimate. Moreover, at the said price, BLOOM is trading at a FY15 EV/EBITDA of 11.84, already at a premium relative to its regional peers, which are trading at 11.09X FY13E EV/EBITDA. Risks Operational Risk. Solaire will only begin to operate in March of As such, our estimates are largely based on assumptions, not actual numbers. Although we believe that our assumptions are reasonable, there is a possibility that the actual numbers (wins per table and hold rate) would disappoint, especially if the gaming market fails to grow as fast as we expect. Political Risk. The existing tension between the Philippines and China could negatively affect Solaire s gaming revenues. Note that we assumed that more than 45% of revenues will come from VIP players, while China is one of the biggest markets for VIP players. During 9M12, BLOOM s competitor Travellers already suffered a drop in VIP foot traffic due to the growing tension between the Philippines and China, brought about by the existing territorial dispute. Appendix 1: Income Statement In PhpMil 2013E 2014E 2015E 2016E Gaming Revenues 15,106 31,457 38,432 44,650 Hotel, restaurant, and other revenues 629 2,735 3,342 3,883 Gaming license fee 3,325 6,744 8,216 9,541 Commssions 3,134 7,274 8,989 10,474 Depreciation 1,041 1,444 1,829 2,214 Other operating expences 4,994 9,925 11,551 13,311 Interest Expense 1,097 1,097 1,097 1,097 Interest Income Net income before tax 2,329 7,850 10,349 12,249 Income tax Net profit after tax 2,289 7,677 10,139 12,005 page 11

12 Appendix 2: Balance Sheet in Php Mil FY13E FY14E FY15E FY16E Current Assets Cash and cash equivalents 4,049 6,185 13,958 26,074 Current portion of restricted cash Receivables 1,101 2,393 2,924 3,397 Due from a shareholder Prepayments and other current assets Total current assets 5,553 8,980 17,285 29,874 Noncurrent Assets Restricted cash - net of current portion Project development costs 4,000 8, Property and equipments 24,204 24,761 34,932 34,719 Deferred tax assets - net Other noncurrent assets 3,294 3,294 3,294 3,294 Total noncurrent assets 31,539 36,100 38,276 38,067 Current Liabilities Accrued expenses and other current liabilties 2,157 2,372 2,609 2,870 Noncurrent Liabilities Long-term debt 14,620 14,620 14,620 14,620 Other noncurrent liabilities 949 1,043 1,148 1,263 Total noncurrent Liabilities 15,569 15,663 15,768 15,883 Equity Capitl stock 9,899 9,899 9,899 9,899 Additional paid-in capital 7,926 7,926 7,926 7,926 Equity reserves Deficit 1,542 9,219 19,358 31,363 Total Equity 19,367 27,044 37,183 49,188 page 12

13 Appendix 3: Statement of Cash Flow in Php Mil FY13E FY14E FY15E FY16E Cash flow from operating activities Profit before tax 2,329 7,850 10,349 12,249 Adjustments for: Interest expense 1,097 1,097 1,097 1,097 Depreciation 1,041 1,444 1,829 2,214 Operating cash flow before WC changes 4,467 10,390 13,274 15,559 changes in current assets (1,157) (1,292) (531) (473) changes in current liabilities Income tax expense (40) (172) (211) (245) Cash flow from operations 3,466 9,141 12,770 15,103 Cash flow from investing activities Capital expenditures (8,213) (6,000) (4,000) (2,000) change in restricted cash 2, change in deferred tax assets (4) (4) (4) (5) change in other noncurrnet assets (659) Cash flow from investing (6,674) (6,004) (4,004) (2,005) Cash flow from financing activities Proceeds from new loans Interest paid (1,097) (1,097) (1,097) (1,097) Interest income Change in other noncurrent assets Proceeds from issuance of new shares Cash flow from financing (1,010) (1,002) (992) (982) (4,218) 2,135 7,774 12,116 cash at the beginning of period 8,267 4,049 6,185 13,958 cash at the end of period 4,049 6,185 13,958 26,074 page 13

14 Investment Rating Definitions BUY HOLD SELL Stocks that have a BUY rating have attractive fundamentals and valuations, based on our analysis. We expect the share price to outperform he market in the next six to twelve months. Stocks that have a HOLD rating have either 1.) attractive fundamentals but expensive valuations; 2.) attractive valuations but near term earnings outlok might be poor or vulnerable to numerous risks. Given the said factors, the share price of the stock may perform merely inline or underperform the market in the next six to twelve months. We dislike both the valuations and fundamentals of stocks with a SELL rating. We expect the share price to underperform in the next six to twelve months. Important Disclaimers Securities recommended, offered or sold by COL Financial Group, Inc.are subject to investment risks, including the possible loss of the principal amount invested. Although information has been obtained from and is based upon sources we believe to be reliable, we do not guarantee its accuracy and it may be incomplete or condensed. All opinions and estimates constitute the judgment of COL s Equity Research Department as of the date of the report and are subject to change without notice. This report is for informational purposes only and is not intended as an offer or solicitation for the purchase or sale of a security. COL Financial ans/or its employees not involved in the preparation of this report may have investments in securities or derivatives of securities of securities of the companies mentioned in this report, and may trade them in ways different from those discussed in this report B East Tower, Philippine Stock Exchange Centre, Exchange Road, Ortigas Center, Pasig City, 1605 Philippines Tel: Fax: Website: page 14