Investments in Associates and Joint Ventures (Tables)

As at December 31, 2017 and 2016, this account consists of:

	2017		2016
	(in million pesos)
Carrying value of investments in associates:
MediaQuest PDRs		10,835		12,647
Digitel Crossing, Inc., or DCI		510		238
Phunware		384		384
Appcard		234		234
Asia Outsourcing Beta Limited, or Beta		78		855
AF Payments, Inc., or AFPI		—		407
ACeS International Limited, or AIL		—		—
Asia Netcom Philippines Corp., or ANPC		—		—
		12,041		14,765
Carrying value of investments in joint ventures:
VTI, Bow Arken and Brightshare		32,550		26,962
Philippines Internet Holding S.à.r.l., or PHIH		1,539		1,538
Beacon Electric Asset Holdings, Inc., or Beacon		—		13,593
ECommerce Pay Holding S.à.r.l., or Ecommerce Pay		—		—
		34,089		42,093
Total carrying value of investments in associates and joint ventures		46,130		56,858

Changes in the cost of investments for the years ended December 31, 2017 and 2016 are as follows:

	2017			2016
	(in million pesos)
Balance at beginning of the year		57,465			41,150
Additions during the year		5,633			27,993
Disposals		(11,612	)		(11,692	)
Translation and other adjustments		1			14
Balance at end of the year		51,487			57,465

Changes in the accumulated impairment losses for the years ended December 31, 2017 and 2016 are as follows:

	2017		2016
	(in million pesos)
Balance at beginning of the year		1,892		1,888
Additional impairment		2,225		—
Translation and other adjustments		1		4
Balance at end of the year		4,118		1,892

Changes in the accumulated equity share in net earnings (losses) of associates and joint ventures for the years ended December 31, 2017 and 2016 are as follows:

	2017			2016
	(in million pesos)
Balance at beginning of the year		1,285			9,441
Realized portion of deferred gain on the transfer of Beacon and Manila Electric Company, or Meralco, shares		4,962			4,962
Equity share in net earnings (losses) of associates and joint ventures:		2,906			1,181
Beta		2,050			396
Beacon		886			2,089
DCI		71			62
VTI, Bow Arken and Brightshare		55			(1,027	)
PHIH		1			(58	)
MediaQuest PDRs		(27	)		(102	)
AFPI		(130	)		(127	)
ECommerce Pay		—			(52	)
Reversal of impairment		201			—
Share in the other comprehensive loss of associates and joint ventures accounted for using the equity method		(312	)		(91	)
Dividends		(791	)		(4,389	)
Disposals		(9,610	)		(9,617	)
Translation and other adjustments		120			(202	)
Balance at end of the year		(1,239	)		1,285

Sale of PCEV’s Beacon Common and Preferred Shares to MPIC

PCEV has entered to the following Share Purchase Agreement with MPIC:

Date	Number of Shares Sold	Selling Price		Deferred Gain Realized
	(in millions)
June 6, 2012	282 Preferred Shares	Php3,563		Php2,012
May 30, 2016	646 Common shares and 458 Preferred Shares		26,200		4,962
June 13, 2017	646 Common shares and 458 Preferred Shares		21,800		4,962

The table below presents the summarized financial information of VTI as at December 31, 2017 and 2016, for the year ended December 31, 2017 and for the seven months ended December 31, 2016:

	2017		2016
	(in million pesos)
Statements of Financial Position:
Noncurrent assets		77,694		76,127
Current assets		2,807		3,126
Noncurrent liabilities		11,373		13,003
Current liabilities		1,936		12,327
Equity		67,192		53,923
Carrying amount of interest in VTI		32,550		26,962
Additional Information:
Cash and cash equivalents		1,961		2,182
Current financial liabilities*		—		—
Noncurrent financial liabilities*		—		—

Excluding trade, other payables and provisions.

	2017			2016
	(in million pesos)
Income Statements:
Revenues		2,352			1,189
Depreciation and amortization		1,168			842
Interest income		28			18
Interest expense		—			2
Provision for (benefit from) income tax		(42	)		158
Net income (loss)		110			(2,055	)
Other comprehensive income		—			—
Total comprehensive income (loss)		110			(2,055	)
Equity share in net income (loss) of VTI		55			(1,027	)

The table below presents the summarized financial information of our individually immaterial investments in joint ventures as at December 31, 2017 and 2016 and for the years ended December 31, 2017, 2016 and 2015:

	2017		2016
	(in million pesos)
Statements of Financial Position:
Noncurrent assets		1		—
Current assets		145		378
Equity		146		377
Noncurrent liabilities		—		—
Current liabilities		—		1

	2017		2016			2015
	(in million pesos)
Income Statements:
Revenues		—		—			—
Net income (loss)		—		(164	)		9
Other comprehensive income		—		—			—
Total comprehensive income (loss)		—		(164	)		9

Since 2010, PCEV made the following investments in Beacon:

Date	Transaction	Number of Shares	Total Consideration
		(in millions)	(in millions)
March 30, 2010	PCEV subscription to Beacon Common Shares	1,157 Beacon Common Shares	Php23,130⁽¹⁾
October 25, 2011	PCEV transfer of remaining Meralco Common Shares to Beacon⁽²⁾	69 Meralco Common Shares		15,136
	PCEV subscription to Beacon Preferred Shares	1,199 Beacon Class “A” Preferred Shares		15,136
January 20, 2012	PCEV subscription to Beacon Common Shares	135 Beacon Common Shares		2,700
May 30, 2016	PCEV subscription to Beacon Class “B” Preferred Shares	277 Beacon Class “B” Preferred Shares		3,500
September 9, 2016	Beacon redemption of Class “B” Preferred Shares held by PCEV	198 Beacon Class “B” Preferred Shares		2,500
April 20, 2017	Beacon redemption of Class “B” Preferred Shares held by PCEV	79 Beacon Class “B” Preferred Shares		1,000

⁽¹⁾

PCEV transferred 154 million Meralco shares at a price of Php150.00 per share or an aggregate amount of Php23,130 million on May 12, 2010.

⁽²⁾

The transfer of the Meralco shares were implemented through a special block sale/cross sale in the PSE.

A summary of Beacon’s dividend declarations are shown below:

Date of Declaration

Date of Payment

Holders

Amount

Share of

PCEV

(in millions)

March 6, 2017

March 10, 2017

Class “A”

Preferred

Php945

Php236

April 20, 2017

April 25, 2017

Class “A”

Preferred

945

236

April 20, 2017

April 25, 2017

Class “B”

Preferred

192

June 13, 2017

July 31, 2017

Class “A”

Preferred

1,273

318

Total dividends declared as at December 31, 2017

Php3,355

Php833

March 31, 2016

July 29, 2016

Class “A”

Preferred

Php945

Php473

June 30, 2016

July 29, 2016

Class “A”

Preferred

1,485

743

July 14, 2016

July 29, 2016

Common

6,056

3,028

August 12, 2016

August 30, 2016

Common

289

144

September 9, 2016

September 30, 2016

Class “B”

Preferred

Total dividends declared as at December 31, 2016

Php8,796

Php4,409

Sale of Beacon’s Meralco Shares to MPIC

Beacon has entered into the following Share Purchase Agreements with MPIC:

Date

Number

of Shares

Sold

% of Meralco

Shareholdings

Sold

Price Per

Total Price

Deferred

Gain

Realized⁽¹⁾

(in millions)

June 24, 2014

56.35

Php235.00

Php13,243

Php1,418

April 14, 2015

112.71

10%

235.00

26,487

2,838

⁽¹⁾

Since Beacon sold the shares to an entity not included in the PLDT Group, PCEV realized portion of the deferred gain which was recognized when the Meralco shares were transferred to Beacon.

The table below presents the summarized financial information of Satventures as at December 31, 2017 and 2016, and for the years ended December 31, 2017, 2016 and 2015:

	2017		2016
	(in million pesos)
Statements of Financial Position:
Noncurrent assets		20,055		21,295
Current assets		2,820		2,296
Noncurrent liabilities		3,292		4,645
Current liabilities		5,253		4,620
Equity		14,330		14,326
Carrying amount of interest in Satventures		9,171		9,169
Additional Information:
Cash and cash equivalents		1,211		374
Current financial liabilities*		397		393
Noncurrent financial liabilities*		2,097		2,357

Excluding trade, other payables and provisions.

	2017		2016			2015
	(in million pesos)
Income Statements:
Revenues		6,650		5,925			5,211
Depreciation and amortization		772		1,217			1,332
Interest income		3		2			2
Interest expense		249		259			207
Provision for (benefit from) income tax		71		(46	)		(534	)
Net income (loss)		4		(344	)		(290	)
Other comprehensive income		—		—			—
Total comprehensive income (loss)		4		(344	)		(290	)
Equity share in net income (loss) of Satventures		3		(220	)		(186	)

The table below presents the summarized financial information of Hastings as at December 31, 2017 and 2016, and for the years ended December 31, 2017 and 2016 and for the seven months ended December 31, 2015:

	2017		2016
	(in million pesos)
Statements of Financial Position:
Noncurrent assets		1,803		6,891
Current assets		2,360		2,251
Noncurrent liabilities		151		506
Current liabilities		336		1,748
Equity		2,377		4,969
Carrying amount of interest in Hastings		1,664		3,478
Additional Information:
Cash and cash equivalents		1,304		1,128
Current financial liabilities*		—		500
Noncurrent financial liabilities*		—		—

Excluding trade, other payables and provisions.

	2017			2016		2015
	(in million pesos)
Income Statements:
Revenues		2,129			2,394		1,580
Depreciation and amortization		153			153		89
Interest income		12			18		10
Interest expense		19			19		11
Provision for income tax		22			70		69
Net income (loss)		(43	)		169		157
Other comprehensive income		—			—		—
Total comprehensive income (loss)		(43	)		169		157
Equity share in net income (loss) of Hastings		(30	)		118		110

The following tables present the summarized financial information of our individually immaterial investments in associates as at December 31, 2017 and 2016, and for the years ended December 31, 2017, 2016 and 2015:

	2017		2016
	(in million pesos)
Statements of Financial Position:
Noncurrent assets		349		1,905
Current assets		595		584
Equity		799		2,063
Noncurrent liabilities		66		278
Current liabilities		79		148

	2017			2016		2015
	(in million pesos)
Income Statements:
Revenues		107			1,960		2,059
Net income		59			526		81
Other comprehensive loss		(1	)		—		—
Total comprehensive income		58			526		81