COVER SHEET - 2Go

Passage business reduced by P41.1 million to register at P2.99 billion revenues (inclusive of auxiliary
income) from P3.03 billion in 2007. The average rate per passenger had gone down by 5% as it
continued to offer year-round promotional rates to drive up demand and face stiff competition from
the airlines. Similar to the freight business, ropax passage capacity remained at the same level as the
previous year with over 3.3 million passengers but with a much higher utilization rate at 70%, the
highest attained in 4 years.
For the year 2008, much of the Company’s efforts were geared towards developing its value-added
business where it believes much of its future will lie. Aboitiz One Distribution, Inc.’s new warehouse
with 22,000 pallet positions located in Taguig City has been operational since the beginning of 2009. In
addition, Aboitiz One, Inc. purchased in June of 2008, Scanasia, a company engaged in the business of
sales, marketing, warehousing and transportation of temperature-controlled and ambient food
products to its customers in the Philippines. These resulted in a 28% increase in service fees to P1.01
billion and 418% increase in sale of goods to P1.2 billion in 2008.
Total costs and expenses jumped 14% with fuel, its single biggest expense, being the highest
contributor to the rise in costs. Average fuel price for the year jumped 43% from the previous year.
ATS directed its efforts in minimizing the impact of rising fuel costs by using less expensive type of
fuel, lowering volume consumption and increasing freight rates. Cost of sales directly related to the
supply chain business also registered an increase with the acquisition of Scanasia.
ATS’ other income totaling P190.4 million is much lower than last year’s of P842.8 million. In 2007,
ATS reflected a P748.9 million gain on disposal of property and equipment generated mainly from the
sale of three vessels.
Despite the rising costs, earnings before interest, taxes, depreciation and amortization (EBITDA)
increased to 4% or P36 million versus December 31, 2007.
ATS registered P99.4 million in net income from continuing operations. ATS ended the year with net
income attributable to equity holders of parent of P82.8 million. This is lower compared to P420.0
million in 2007 since ATS registered after tax gain on disposal of three vessels of P405.0 million.
Earnings Per Share
Earnings per share for 2008 stood at P0.03/share. This is lower versus 2007 because of lower net
income.
Consolidated Balance Sheet and Cash Flow
Consolidated assets as of December 31, 2008, amounted to P9.4 billion. Its receivables of P2.0 billion
increased by 6% as a result of higher trade receivables by P113.6 million from last year. Property and
equipment is maintained at P4.2 billion. During the period in review, Goodwill of P256.5 million was
reflected in the books from the purchase of SOI.
Total liabilities reached P4.8 billion, 17% higher compared to 2007. The increase was a result of
higher Interest bearing debt amounted to P1.3 billion in 2008 versus P570.2 million in 2007. The funds
were utilized for the expansion of its supply-chain business, the purchase of a vessel under its Cebu
Ferries brand and fuel-efficient fast craft vessels under its SuperCat brand.
Stockholders’ Equity stood at P4.6 billion, a slight 2% increase over the previous year.
Cash generated from operations amounted to P1.1 billion. Total capital expenditures for the period
stood at P1.1 billion. The bulk of the capital expenditures were accounted for by the purchase of a
vessel under its Cebu Ferries brand and fuel-efficient fast craft vessels under its SuperCat brand.
Cash and cash equivalents at the end of the year was at P1.1 billion.
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