Consolidated Statements of Cash Flows

For the years ended December 31, 2020, 2019 and 2018
(In thousands pesos)

		2020		2019		2018
Cash flows from operating activities:
Consolidated net income for the year	$	813,811	$	3,089,599	$	3,933,403
Adjustments not requiring (providing) cash:
Income tax recognized in net income		260,685		1,349,506		1,445,060
Depreciation and amortization		1,829,322		2,163,081		2,092,264
Impairment of property		(25,641)		18,916		(23,175)
Disposal cost of property, machinery and equipment		258,101		-		-
(Gain) loss on sale of property, machinery and equipment		(3,113)		(2,604)		112,151
Provisions		48,727		466		3,557
Gain arising on changes in fair value of investment properties		44,750		(91,718)		(91,652)
Interest expense		711,502		703,010		630,113
Equity in income of associates		194,239		(116,825)		(187,088)
Interest income		(3,856,852)		(4,271,348)		(4,066,064)
		275,531		2,842,083		3,848,569

Items related to operating activities:
(Increase) decrease in:
Accounts and documents receivable		2,306,591		(206,303)		306,671
Recoverable taxes		1,937		(92,371)		(234,618)
Interest received from operating activities		3,654,537		3,970,601		3,461,938
Inventories		1,984,394		(190,496)		(1,553,140)
Prepaid expenses		(20,111)		3,234		76,527
Other assets		(115,144)		(74,605)		(63,967)
Long-term accounts receivable		190,932		89,559		154,618
Employee benefits		(712,472)		(355,599)		(108,350)
(Decrease) increase in:
Trade accounts payable		(323,129)		(430,559)		1,609,533
Other accounts payable and accrued liabilities		(2,288,229)		2,114,302		(634,677)
Due to related parties		51,923		(649,593)		278,795
Direct employee benefits		(213,322)		25,244		5,498
Income taxes paid		(910,673)		(1,937,696)		(1,607,139)
Net cash flows provided by operating activities		3,882,765		5,107,801		5,540,258

Cash flows from investing activities:
Purchase of property, machinery and equipment		(466,739)		(895,183)		(1,418,350)
Sales of property, machinery and equipment		8,548		45,199		27,501
Dividends received from associates		725,900		-		-
Acquisition of associate shares		(33,272)		(1,134,584)		-
Cash loans to associate		(12,053)		(153,793)		-
Interest received		94,985		68,803		81,837
Net cash flows used in investing activities		317,369		(2,069,558)		(1,309,012)

Cash flows from financing activities:
Repurchase of shares		(63,763)		(81,531)		(300,967)
Bank loans		9,030,000		-		-
Payments of loans		(9,030,000)		-		-
Interest paid		(530,098)		(733,819)		(481,944)
Payments of lease liabilities		(810,234)		(782,154)		(759,141)
Dividends paid to controlling interest and non-controlling interest		(508,279)		(2,220,758)		(2,136,772)
Net cash flows used in financing activities		(1,912,374)		(3,818,262)		(3,678,824)
Effects of exchange rate changes on cash and cash equivalents		12,636		(7,463)		635
Net decrease in cash and cash equivalents		2,300,396		(787,482)		553,057
Cash and cash equivalents at beginning of the year		1,690,176		2,477,658		1,924,601
Cash and cash equivalents at end of the year	$	3,990,572	$	1,690,176	$	2,477,658

See accompanying notes to consolidated financial statements.