COVER SHEET - 2Go

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Material changes (+/- 5% or more) in the financial statements Income Statement • 9% increase in freight revenues is largely due to higher average freight rates and increased revenues from its subsidiary companies Zoom in Packages and Aboitiz One, Inc. • 4% decrease in passage revenues is due to lower volume and average passenger rates • 418% higher revenues from sale of goods generated by its value added businesses, Scanasia, a company purchased by Aboitiz One, Inc. in June 2008 and Aboitiz One Distribution, Inc. • 28% higher service fees revenues from logistics, warehousing and sales merchandise. • 37% increase in other revenues is due to overall higher passage auxiliary revenues. • 25% increase in total revenues largely from the increase in freight revenues. • 8% increase in operating expenses primarily due to 28% rise in fuel costs • 20% increase in terminal expenses largely due to the 125% increase in transportation and delivery costs which comprises the bulk of the company’s terminal expenses. • 414% increase in cost of sales because of Scanasia, a company acquired in June 2008. • 88% reduction on gain on disposal of property and equipment primarily because of the sale of three vessels in 2007. • 18% lower net finance costs due to lower interest bearing debt for the year. • 141% lower net foreign exchange gain is due to the weakening of the peso against the dollar throughout the year. • 1963% higher equity in net losses of associates is due to the Company’s share in MCC Philippines’ net loss. • 42% higher other income is largely attributable to management fee income rendered to third party entities. • 74% lower income tax principally because of lower taxable income. • 80% lower net income attributable to equity holders of parent largely because of vessel sales in 2007. Balance Sheet • 6% higher net receivables due to higher trade receivables • 39% higher inventories because of higher materials, parts and supplies and higher fuel inventory. • 220% increase in loans payable mainly to finance the expansion of its supply-chain business • 5% higher accounts payable and other current liabilities largely due to higher trade payables All of these material changes were explained in detail in the management’s discussion and analysis of financial condition and results of operations stated above. Other Information Other material events and uncertainties known to management that would address the past and would have an impact on ATS’ future operations are discussed below. i. Total fuel/lubes expense is a major component of ATS’ total cost and expenses. Fuel prices continue to rise amidst turmoil in the Middle East and Africa. Fuel oil MTD May 2011 is US$105/barrel. ATS is constantly looking for ways to reduce fuel consumption to lessen the impact of the increasing fuel prices on the bottom line. ii. Except as disclosed in the management discussion and notes to the financial statements, there are no other known events that will trigger direct or contingent financial obligation that is material to ATS, including any default or acceleration of an obligation. There are also no other known trends, events or uncertainties that have had or that are reasonably expected to have a material favorable or unfavorable impact on revenues or income from operations. 28
iii. iv. All significant elements of income or loss from continuing operations are already discussed in the management discussion and notes to financial statements. Likewise any significant elements of income or loss that did not arise from ATS’ continuing operations are disclosed either in the management discussion or notes to financial statements. There is no material off-balance sheet transaction, arrangement, obligation, and other relationships of ATS with unconsolidated entities or other persons created during the reporting period. v. Seasonal aspects of the business are considered in ATS’ financial forecast. vi. ATS does not expect any liquidity or cash problem within the next twelve months. Capital expenditures are funded through cash generated from operations and additional borrowings. Outlook With its full fleet now in operation, focus will be on maximizing earnings. We aim to continue providing value added services at the lowest cost. Super Ferry vessels, with lower cost per slot can command higher service margins from its frequency, speed, reliability and overall better service. The strengthening of the Peso will help keep the company competitive. We are experiencing a thriving economy, with freight and passenger market growing at 9% and 14% respectively during the period in review. With no scheduled dry-docking in 2011, ATS is poised and ready to capitalize on the growth. Furthermore, ATS, jointly with NENACO, is expected to be a better and stronger company, creating greater value to shareholders. IV. BRIEF DESCRIPTION OF THE GENERAL NATURE AND SCOPE OF THE BUSINESS OF THE REGISTRANT AND ITS SUBSIDIARIES ATS is the only integrated transport solutions provider in the country. Its principal business units are engaged in the movement of people operating under brand names ‘SuperFerry’, ‘SuperCat’, and ‘Cebu Ferries’ and the movement of cargos operating under the brand name ‘2GO’. ATS’ array of services geared towards cargo movements includes containerization, RoRo services, logistics and supply chain solutions. As of December 31, 2010, ATS has a total fleet of 23 operating vessels, of which 19 are company-owned ships. ATS’ was formed and organized in May 26, 1949 under the corporate name William Lines, Inc. It is majority owned by NENACO, one of the oldest domestic shipping companies in the Philippines. Many companies work together to bring the brands of ATS to life. They enable us to deliver on our brand promises. There are instances when two or more companies work together to provide the products and service offered by a single brand, such as the case of 2GO, which has evolved into a total supply chain solutions provider. In 2010, ATS has 9 operating subsidiaries and affiliates, Aboitiz One, Inc. (AONE), Supercat Fast Ferry Corp. (SFFC), Zoom in Packages, Inc. (ZIP), Reefer Van Specialists, Inc., Aboitiz Jebsen Bulk Transport Corporation (ABOJEB), Aboitiz Jebsen Manpower Solutions, Inc. (AJMSI), Jebsen Maritime Inc. (JMI), Jebsen Management (BVI) Limited and MCC Transport Philippines, Inc (MCCP). However, ZIP and RVSI were merged into ATS by way of a statutory merger in July and September 2010, respectively. Further, in December of the same period, the Board of ATS approved to sell its 62.5% equity stake in ABOJEB, AJMSI and JMI to AEV. The Board also approved the sale 50% ownership in JMBVI to ACO. Both sales were a result of the implementation of the terms and conditions for the acquisition by NENACO of AEV’s and ACO’s shares in ATS. 29
Page 1 and 2: COVER SHEET 4 4 0 9 SEC Registratio
Page 3 and 4: Dear Stockholder: ABOITIZ TRANSPORT
Page 5 and 6: INFORMATION STATEMENT (SEC FORM 20-
Page 7 and 8: Section 6 of the Corporation Code w
Page 9 and 10: Voting trust holders of 5% or More
Page 11 and 12: ehabilitation proceedings under the
Page 13 and 14: new composition of the Company’s
Page 15 and 16: Committee and Risk Management Commi
Page 17 and 18: C. OTHER MATTERS Item 8. MERGERS, C
Page 19 and 20: viii. approval for treasury matters
Page 21 and 22: SIGNATURE PAGE After reasonable inq
Page 23 and 24: Consolidated Aboitiz One, Inc and S
Page 25 and 26: docking costs of vessels are being
Page 27 and 28: The figures above are in P’MM exc
Page 29 and 30: Cashflow Statement Total capital ex
Page 31: Passage business reduced by P41.1 m
Page 35 and 36: Kerry - Aboitiz Logistics Inc. (KAL
Page 37 and 38: 19. Iker Aboitiz 20. Francisco Bene
Page 39 and 40: This committee is likewise is respo
Page 41 and 42: Total compensation paid/accrued for
Page 43 and 44: Under the new management, there is
Page 45 and 46: Passage and Shipmanagement. It is a
Page 47 and 48: Noteworthy, in compliance with corp

COVER SHEET - 2Go

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