1. Identify the problems that the company may face based on the horizontal analysis 1. what are ypur recommendations or possible solutions on the problems identified using horizontal analysis?

1. Horizontal Analysis - Increase (Derecase) % Change Ayala Corporation and Subsidiaries Consolidated Statement of Income (Amounts in Thousands, Except Earnings per share figure 2018 2017 Revenue Sale of goods and rendering of services 274,881,486 242,227,640 Share in net profits of associates and joint ventures 20,459,804 18,494,458 Interest income from real estate 7,042,078 5,409,944 Dividend Income 106,803 653,721 302,490,171 266,785,763 32,653,846 1,965,346 1,632,134 (546,918) 35,704,408 13.48% 10.63% 30.17% -83.66% 13.38% Cost of Expenses Cost of Sales and Services General and administrative expenses 196,607,561 29,822,058 226,429,619 175,674,469 25,213,100 200,887,569 20,933,092 4,608,958 25,542,050 11.92% 18.28% 12.71% Other income (Charges) - Net Interest Income Other Income Interest and other financing charges Other Charges 2,705,648 20,181,693 (19,101,077) (9,661,977) (5,875,713) 1,403,537 20,938,274 (14,441,334) (11,672,137) (3,771,660) 1,302,111 (756,581) (4,659,743) 2,010, 160 (2,104,053) 92.7796 -3.61% 32.27% -17.22% 55.79% Income before Income Tax 70,184,839 62,126,534 8,058,305 12.97% Provision for Income Tax Current Deferred 16,330,821 (1,211,096) 15,119,725 14,629,398 (2,369,639) 12,259,759 1,701,423 1,158,543 2,859,966 11.63% -48.89% 23.33% - 55,065,114 49,866,775 5,198,339 10.42% Net Income Net Income Attributable to: Owners of the Parent Company Non Controlling interest 31,817,721 23,247,393 55,065,114 30,263,842 19,602,933 49,866,775 1,553,879 3,644,460 5,198,339 5.13% 18.59% 10.42%