COVER SHEET - 2Go

Fiscal Year 2010 vs. 2009
Consolidated Income Statement
Aboitiz Transport System (ATSC) Corporation (ATS), for the most part of 2010, operated on limited
capacity as most of its fleet was on scheduled dry-docking and maintenance.
Consolidated revenues increased by P1.1 billion compared to the previous year to reach P11.6 billion.
Revenue from supply chain solutions, specifically trading, contributed to higher revenues overall.
Local freight business also registered an increase of 1%, contributing a total of P5.3 billon in 2010.
The market was being served by chartering freighter vessels in the absence of its own vessels that
were on drydock and maintenance. Freight utilization reached 94% on SuperFerry vessels.
2GO has fully integrated its total supply chain solutions business, the objective of which is to provide a
more seamless solution to clients. Both Zoom in Packages (ZIP) and Reefer Van Specialists (RVSI)
have been merged with ATS. ZIP’s business focus is on full container load (FCL) and loose container
load (LCL) cargo while RVSI focuses on the cold chain business, which involves the transport of frozen
and perishable goods. Merging these companies is seen to result in cost efficiencies and better
synergies and ultimately serving customers better.
Passenger business, inclusive of auxiliary revenues, reduced by P59 million or 3% to register at P2.18
billion revenues from P2.24 billion in 2009. It was able to however, maximize its limited operating
capacity achieving load factors of 79%.
Total cost and expenses reached P12.2 billion, 21% higher than 2009. This is largely brought about by
higher fuel expense as a result of rising average fuel prices. Given the uncertain fuel price behavior,
ATS continues to undertake various initiatives to mitigate its negative impact including the use of less
expensive type of fuel. Terminal expenses increased due higher outside services costs. The
expanding trading business also contributed to higher cost of sales.
ATS registered a P808.7 million Net Loss Attributable to Holders of the Parent. ATS booked a onetime
Impairment loss on ships in operation of P778.8 million. Finance costs of P228.8 million are
substantially higher versus last year from increased interest bearing loans. ATS borrowed funds to
finance the purchase of three roll-on roll-off passenger vessels and two fast crafts. ATS also
benefited from deferred income tax of P472.7 million.
In December 2010, ATS principal shareholders, Aboitiz Equity Ventures, Inc. (AEV) and Aboitiz and
Company (ACO), sold their combined shareholdings of 93.2% in ATS to Negros Navigation (NENACO)
for a price of P1.8813 per share or a total of P4.3 billion. The sale however excluded the Aboitiz Jebsen
group of companies, which includes international freight chartering, ship management and manpower
businesses. The Company sold its 62.5% equity stake in each of Aboitiz Jebsen Bulk Transport
Corporation, Aboitiz Jebsen Manpower Solutions, Inc. and Jebsen Maritime Inc. to AEV for a total price
of P 355.9 million. .It also sold its 50% equity stake in Jebsen Management (BVI) Limited to AEV for P
44.0 million. Buyers AEV and ACO paid the full price last January 2011. ATS recognized a net gain of
P213 million from this sale. During the period, ATS recorded P305.4 million in net income from
discontinued operations generated from the Aboitiz Jebsen group.
Earnings Per Share
Earnings Per Share is computed by dividing Net Income Attributable to Equity Holders of the Parent
over weighted average number of common shares outstanding for the year. Earnings per share for
2010 stood at (P0.33)/share. This is lower versus 2010 because of the net loss generated.
22