Exhibit 2
2021
FIRST QUARTER RESULTS
◾ Stock Listing Information
Philippine Stock Exchange
Ticker: CHP
◾ Investor Relations
+ 632 8849 3600
E-Mail:
chp.ir@cemex.com
Operating and Financial Highlights | ![]() |
January - March | First Quarter | |||||||||||||||||||||||
2021 | 2020 | % var | 2021 | 2020 | % var | |||||||||||||||||||
Net sales | 5,202 | 5,630 | (8 | %) | 5,202 | 5,630 | (8 | %) | ||||||||||||||||
Gross profit | 2,023 | 2,354 | (14 | %) | 2,023 | 2,354 | (14 | %) | ||||||||||||||||
as % of net sales | 39 | % | 42 | % | (3pp | ) | 39 | % | 42 | % | (3pp | ) | ||||||||||||
Operating earnings before other expenses, net | 474 | 521 | (9 | %) | 474 | 521 | (9 | %) | ||||||||||||||||
as % of net sales | 9 | % | 9 | % | 0pp | 9 | % | 9 | % | 0pp | ||||||||||||||
Controlling Interest Net Income (Loss) | 205 | 89 | 131 | % | 205 | 89 | 131 | % | ||||||||||||||||
Operating EBITDA | 1,026 | 1,082 | (5 | %) | 1,026 | 1,082 | (5 | %) | ||||||||||||||||
as % of net sales | 19.7 | % | 19.2 | % | 0.5pp | 19.7 | % | 19.2 | % | 0.5pp | ||||||||||||||
Free cash flow after maintenance capital expenditures | 1,266 | 312 | 306 | % | 1,266 | 312 | 306 | % | ||||||||||||||||
Free cash flow | 580 | (1,140 | ) | N/A | 580 | (1,140 | ) | N/A | ||||||||||||||||
Net debt1 | 6,089 | 7,147 | (15 | %) | 6,089 | 7,147 | (15 | %) | ||||||||||||||||
Total debt1 | 12,153 | 13,481 | (10 | %) | 12,153 | 13,481 | (10 | %) | ||||||||||||||||
Earnings per share2 | 0.02 | 0.01 | 51 | % | 0.02 | 0.01 | 51 | % |
In millions of Philippine Pesos, except percentages and earnings per share
1 | U.S. dollar debt converted using end-of-period exchange rate. See Debt Information on page 4 and Exchange Rates on page 7 for more detail. |
2 | In Philippine Pesos |
Net sales decreased, year-over-year, by 8% during the first quarter of 2021 due to lower volumes and prices.
Total cost of sales was lower by 3% year-over-year during the first quarter, in line with the decrease in our sales volumes.
Total fuel cost was 18% lower on a year-over-year basis mainly due to the use of a more cost-efficient fuel mix.
Total power cost was 14% higher on a year-over-year basis mainly due to higher electricity rates, and a rebate from the wholesale electricity spot market received in the prior year.
Operating expenses, as a percentage of sales, was 30% during the first quarter of 2021, compared with 33% in the same period of 2020.
Distribution expenses was 16% of sales during the first quarter, a decrease of 3 pp year-over-year. This was mainly driven by lower delivered volumes and initiatives to increase efficiency.
Selling and administrative expenses, as a percentage of sales, was flat year-over-year at 14% during the first quarter of 2021. Total selling and administrative expenses decreased by 6% year-over-year during the quarter mainly due to lower fees related to royalties, and CHP’s Stock Rights Offering, which was concluded during the first quarter of 2020.
Operating EBITDA for the first quarter of 2021 decreased by 5% year-over-year due to lower sales.
Operating EBITDA margin increased by 0.5 pp to 19.7% for the first quarter of 2021, compared with 19.2% in the same period of last year.
Controlling interest net income was PHP 205 million for the first quarter of 2021, 131% higher on a year-over-year basis, mainly due to a 78% decrease in financial expenses.
Financial expenses for the first quarter of 2021 declined 78%, reflecting lower debt levels and interest rates.
Income tax for the first quarter of 2021 was 77% higher mainly due to a one-time expense from the revaluation of deferred tax assets pursuant to income tax rates reduction related to the Corporate Recovery and Tax Incentives for Enterprises or the CREATE Act, which was approved into law on March 26, 2021.
Total debt at the end of March 2021 was at PHP 12,153 million, of which PHP 10,252 million pertained to debt owed to BDO Unibank, Inc.
2021 Fourth Quarter Results | Page 2 |
Operating Results | ![]() |
Domestic Gray Cement | January - March | First Quarter | First Quarter 2021 | |||||||||
2021 vs. 2020 | 2021 vs. 2020 | vs. Fourth Quarter 2020 | ||||||||||
Volume | (4 | %) | (4 | %) | 14 | % | ||||||
Price in PHP | (4 | %) | (4 | %) | 0 | % |
Our domestic cement volumes decreased by 4% year-over-year during the first quarter, amidst the ongoing COVID-19 pandemic and its impact on economic activity.
On a sequential basis, our domestic cement volumes increased by 14%, as the fourth quarter of 2020 was heavily affected by adverse weather conditions.
Our domestic cement prices remained flat quarter-on-quarter.
Year-over-year, the movement in our domestic cement prices mainly driven by a higher proportion of pick-up sales.
Net of freight charges, our domestic cement prices decreased by 1% year-over-year due to subdued activity and competitive market dynamics.
2021 First Quarter Results | Page 3 |
Operating EBITDA, Free Cash Flow and Debt Information | ![]() |
Operating EBITDA and Free Cash Flow
January - March | First Quarter | |||||||||||||||||||||||
2021 | 2020 | % var | 2021 | 2020 | % var | |||||||||||||||||||
Operating earnings before other income, net | 474 | 521 | (9 | %) | 474 | 521 | (9 | %) | ||||||||||||||||
+ Depreciation and operating amortization | 552 | 562 | 552 | 562 | ||||||||||||||||||||
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Operating EBITDA | 1,026 | 1,082 | (5 | %) | 1,026 | 1,082 | (5 | %) | ||||||||||||||||
- Net financial expenses | 63 | 280 | 63 | 280 | ||||||||||||||||||||
- Maintenance capital expenditures | 32 | 49 | 32 | 49 | ||||||||||||||||||||
- Change in working capital | (323 | ) | 332 | (323 | ) | 332 | ||||||||||||||||||
- Income taxes paid | 27 | 122 | 27 | 122 | ||||||||||||||||||||
- Other cash items (net) | (38 | ) | (12 | ) | (38 | ) | (12 | ) | ||||||||||||||||
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Free cash flow after maintenance capital expenditures | 1,266 | 312 | 306 | % | 1,266 | 312 | 306 | % | ||||||||||||||||
- Strategic capital expenditures | 686 | 1,452 | 686 | 1,452 | ||||||||||||||||||||
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Free cash flow | 580 | (1,140 | ) | N/A | 580 | (1,140 | ) | N/A | ||||||||||||||||
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In millions of Philippine Pesos
Debt Information
First Quarter | Fourth Quarter | |||||||||||||||
2021 | 2020 | % var | 2020 | |||||||||||||
Total debt(1)(2) | 12,153 | 13,481 | (10 | %) | 12,853 | |||||||||||
Short term | 5 | % | 5 | % | 6 | % | ||||||||||
Long term | 95 | % | 95 | % | 94 | % | ||||||||||
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Cash and cash equivalents | 6,064 | 6,334 | (4 | %) | 6,139 | |||||||||||
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Net debt | 6,089 | 7,147 | (15 | %) | 6,714 | |||||||||||
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Leverage Ratio(3) | 2.95 | 3.20 | 3.08 | |||||||||||||
Coverage Ratio(3) | 6.47 | 4.08 | 5.95 |
First Quarter | ||||||||
2021 | 2020 | |||||||
Currency denomination | ||||||||
U.S. dollar | 3 | % | 4 | % | ||||
Philippine peso | 97 | % | 96 | % | ||||
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Interest rate | ||||||||
Fixed | 60 | % | 56 | % | ||||
Variable | 40 | % | 44 | % | ||||
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In millions of Philippine Pesos, except percentages
(1) | U.S. dollar debt converted using end-of-period exchange rate. See Exchange Rates on page 7 for more detail. |
(2) | Includes leases, in accordance with Philippine Financial Reporting Standards (PFRS). |
(3) | Based on BDO Loan Facility financial covenants which we are required to comply commencing on June 30, 2021. |
2021 First Quarter Results | Page 4 |
Financial Results | ![]() |
Income Statement & Balance Sheet Information
CEMEX Holdings Philippines, Inc.
(Thousands of Philippine Pesos in nominal terms, except per share amounts)
January - March | First Quarter | |||||||||||||||||||||||
INCOME STATEMENT | 2021 | 2020 | % var | 2021 | 2020 | % var | ||||||||||||||||||
Net sales | 5,202,237 | 5,629,916 | (8 | %) | 5,202,237 | 5,629,916 | (8 | %) | ||||||||||||||||
Cost of sales | (3,179,297 | ) | (3,275,817 | ) | 3 | % | (3,179,297 | ) | (3,275,817 | ) | 3 | % | ||||||||||||
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Gross profit | 2,022,940 | 2,354,099 | (14 | %) | 2,022,940 | 2,354,099 | (14 | %) | ||||||||||||||||
Selling and Administrative expenses | (719,201 | ) | (767,455 | ) | 6 | % | (719,201 | ) | (767,455 | ) | 6 | % | ||||||||||||
Distribution expenses | (829,894 | ) | (1,065,804 | ) | 22 | % | (829,894 | ) | (1,065,804 | ) | 22 | % | ||||||||||||
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Operating earnings before other expenses, net | 473,845 | 520,840 | (9 | %) | 473,845 | 520,840 | (9 | %) | ||||||||||||||||
Other income (expenses), net | 38,073 | 12,094 | 215 | % | 38,073 | 12,094 | 215 | % | ||||||||||||||||
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Operating earnings (loss) | 511,918 | 532,934 | (4 | %) | 511,918 | 532,934 | (4 | %) | ||||||||||||||||
Financial expenses, net | (62,578 | ) | (279,540 | ) | 78 | % | (62,578 | ) | (279,540 | ) | 78 | % | ||||||||||||
Foreign exchange gain (loss), net | (71,043 | ) | (66,411 | ) | (7 | %) | (71,043 | ) | (66,411 | ) | (7 | %) | ||||||||||||
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Net income (loss) before income taxes | 378,297 | 186,983 | 102 | % | 378,297 | 186,983 | 102 | % | ||||||||||||||||
Income tax benefit (expenses) | (172,813 | ) | (97,861 | ) | (77 | %) | (172,813 | ) | (97,861 | ) | (77 | %) | ||||||||||||
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Consolidated net income (loss) | 205,484 | 89,122 | 131 | % | 205,484 | 89,122 | 131 | % | ||||||||||||||||
Non-controlling interest net income (loss) | 8 | 9 | (11 | %) | 8 | 9 | (11 | %) | ||||||||||||||||
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Controlling Interest net income (loss) | 205,492 | 89,131 | 131 | % | 205,492 | 89,131 | 131 | % | ||||||||||||||||
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Operating EBITDA | 1,026,033 | 1,082,436 | (5 | %) | 1,026,033 | 1,082,436 | (5 | %) | ||||||||||||||||
Earnings per share | 0.02 | 0.01 | 51 | % | 0.02 | 0.01 | 51 | % | ||||||||||||||||
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as of March 31 | as of December 31 | |||||||||||||||||||
BALANCE SHEET | 2021 | 2020 | % Var | 2020 | % Var | |||||||||||||||
Total Assets | 63,459,461 | 64,327,987 | (1 | %) | 63,760,347 | (0 | %) | |||||||||||||
Cash and Temporary Investments | 6,064,369 | 6,334,330 | (4 | %) | 6,139,411 | (1 | %) | |||||||||||||
Derivative Asset | 47,297 | 0 | 24,039 | 97 | % | |||||||||||||||
Trade Accounts Receivables | 896,670 | 1,112,654 | (19 | %) | 700,162 | 28 | % | |||||||||||||
Other Receivables | 36,694 | 53,497 | (31 | %) | 47,512 | (23 | %) | |||||||||||||
Insurance Claims and Premium Receivables | 0 | 92,662 | (100 | %) | 87,569 | (100 | %) | |||||||||||||
Inventories | 2,206,582 | 2,995,714 | (26 | %) | 2,349,966 | (6 | %) | |||||||||||||
Assets Held for Sale | 0 | 0 | 0 | |||||||||||||||||
Other Current Assets | 1,590,611 | 1,515,138 | 5 | % | 1,825,209 | (13 | %) | |||||||||||||
Current Assets | 10,842,223 | 12,103,995 | (10 | %) | 11,173,868 | (3 | %) | |||||||||||||
Fixed Assets | 21,921,009 | 20,947,637 | 5 | % | 21,699,377 | 1 | % | |||||||||||||
Investments in an Associate and Other Investments | 14,097 | 14,097 | 0 | % | 14,097 | 0 | % | |||||||||||||
Other Assets and Noncurrent Accounts Receivables | 826,580 | 882,515 | (6 | %) | 782,399 | 6 | % | |||||||||||||
Advances to Contractors | 1,057,699 | 1,458,603 | (27 | %) | 1,142,685 | (7 | %) | |||||||||||||
Deferred Income Taxes—net | 938,159 | 1,061,446 | (12 | %) | 1,088,227 | (14 | %) | |||||||||||||
Goodwill | 27,859,694 | 27,859,694 | 0 | % | 27,859,694 | 0 | % | |||||||||||||
Other Assets | 30,696,229 | 31,276,355 | (2 | %) | 30,887,102 | (1 | %) | |||||||||||||
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Total Liabilities | 20,245,687 | 21,939,209 | (8 | %) | 20,849,759 | (3 | %) | |||||||||||||
Current Liabilities | 8,131,166 | 8,383,230 | (3 | %) | 8,169,894 | (0 | %) | |||||||||||||
Long-Term Liabilities | 10,038,102 | 11,152,261 | (10 | %) | 10,566,642 | (5 | %) | |||||||||||||
Deferred Tax Liability | 847 | 1,624 | (48 | %) | 853 | (1 | %) | |||||||||||||
Other Liabilities | 2,075,572 | 2,402,094 | (14 | %) | 2,112,370 | (2 | %) | |||||||||||||
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Consolidated Stockholders’ Equity | 43,213,774 | 42,388,778 | 2 | % | 42,910,588 | 1 | % | |||||||||||||
Non-controlling Interest | 142 | 162 | (12 | %) | 150 | (5 | %) | |||||||||||||
Stockholders’ Equity Attributable to Controlling Interest | 43,213,632 | 42,388,616 | 2 | % | 42,910,438 | 1 | % |
2021 First Quarter Results | Page 5 |
Financial Results | ![]() |
Income Statement & Balance Sheet Information
CEMEX Holdings Philippines, Inc.
(Thousands of U.S. Dollars, except per share amounts)
January - March | First Quarter | |||||||||||||||||||||||
INCOME STATEMENT | 2021 | 2020 | % var | 2021 | 2020 | % var | ||||||||||||||||||
Net sales | 107,484 | 110,767 | (3 | %) | 107,484 | 110,767 | (3 | %) | ||||||||||||||||
Cost of sales | (65,688 | ) | (64,451 | ) | (2 | %) | (65,688 | ) | (64,451 | ) | (2 | %) | ||||||||||||
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Gross profit | 41,796 | 46,316 | (10 | %) | 41,796 | 46,316 | (10 | %) | ||||||||||||||||
Selling and Administrative Expenses | (14,860 | ) | (15,100 | ) | 2 | % | (14,860 | ) | (15,100 | ) | 2 | % | ||||||||||||
Distribution expenses | (17,147 | ) | (20,969 | ) | 18 | % | (17,147 | ) | (20,969 | ) | 18 | % | ||||||||||||
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Operating earnings before other expenses, net | 9,789 | 10,247 | (4 | %) | 9,789 | 10,247 | (4 | %) | ||||||||||||||||
Other income (expenses), net | 787 | 238 | 231 | % | 787 | 238 | 231 | % | ||||||||||||||||
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Operating earnings (loss) | 10,576 | 10,485 | 1 | % | 10,576 | 10,485 | 1 | % | ||||||||||||||||
Financial expenses, net | (1,293 | ) | (5,500 | ) | 76 | % | (1,293 | ) | (5,500 | ) | 76 | % | ||||||||||||
Foreign exchange gain (loss), net | (1,468 | ) | (1,307 | ) | (12 | %) | (1,468 | ) | (1,307 | ) | (12 | %) | ||||||||||||
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Net income (loss) before income taxes | 7,815 | 3,678 | 112 | % | 7,815 | 3,678 | 112 | % | ||||||||||||||||
Income tax benefit (expenses) | (3,571 | ) | (1,925 | ) | (86 | %) | (3,571 | ) | (1,925 | ) | (86 | %) | ||||||||||||
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Consolidated net income (loss) | 4,244 | 1,753 | 142 | % | 4,244 | 1,753 | 142 | % | ||||||||||||||||
Non-controlling interest net income (loss) | 0 | 0 | 0 | 0 | ||||||||||||||||||||
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Controlling Interest net income (loss) | 4,244 | 1,753 | 142 | % | 4,244 | 1,753 | 142 | % | ||||||||||||||||
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Operating EBITDA | 21,199 | 21,297 | (0 | %) | 21,199 | 21,297 | (0 | %) | ||||||||||||||||
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as of March 31 | as of December 31 | |||||||||||||||||||
BALANCE SHEET | 2021 | 2020 | % Var | 2020 | % Var | |||||||||||||||
Total Assets | 1,307,633 | 1,269,297 | 3 | % | 1,327,705 | (2 | %) | |||||||||||||
Cash and Temporary Investments | 124,961 | 124,987 | (0 | %) | 127,843 | (2 | %) | |||||||||||||
Derivative Asset | 975 | 0 | 501 | 95 | % | |||||||||||||||
Trade Accounts Receivables | 18,477 | 21,954 | (16 | %) | 14,580 | 27 | % | |||||||||||||
Other Receivables | 756 | 1,056 | (28 | %) | 989 | (24 | %) | |||||||||||||
Insurance Claims and Premium Receivables | 0 | 1,828 | (100 | %) | 1,823 | (100 | %) | |||||||||||||
Inventories | 45,468 | 59,110 | (23 | %) | 48,934 | (7 | %) | |||||||||||||
Assets Held for Sale | 0 | 0 | 0 | |||||||||||||||||
Other Current Assets | 32,776 | 29,896 | 10 | % | 38,007 | (14 | %) | |||||||||||||
Current Assets | 223,413 | 238,831 | (6 | %) | 232,677 | (4 | %) | |||||||||||||
Fixed Assets | 451,700 | 413,331 | 9 | % | 451,854 | (0 | %) | |||||||||||||
Investments in an Associate and Other Investments | 290 | 278 | 4 | % | 294 | (1 | %) | |||||||||||||
Other Assets and Noncurrent Accounts Receivables | 17,031 | 17,414 | (2 | %) | 16,292 | 5 | % | |||||||||||||
Advances to Contractors | 21,795 | 28,781 | (24 | %) | 23,795 | (8 | %) | |||||||||||||
Deferred Income Taxes—net | 19,332 | 20,944 | (8 | %) | 22,661 | (15 | %) | |||||||||||||
Goodwill | 574,072 | 549,718 | 4 | % | 580,132 | (1 | %) | |||||||||||||
Other Assets | 632,520 | 617,135 | 2 | % | 643,174 | (2 | %) | |||||||||||||
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Total Liabilities | 417,178 | 432,896 | (4 | %) | 434,163 | (4 | %) | |||||||||||||
Current Liabilities | 167,549 | 165,415 | 1 | % | 170,125 | (2 | %) | |||||||||||||
Long-Term Liabilities | 206,843 | 220,053 | (6 | %) | 220,033 | (6 | %) | |||||||||||||
Deferred Tax Liability | 17 | 32 | (47 | %) | 18 | (6 | %) | |||||||||||||
Other Liabilities | 42,769 | 47,396 | (10 | %) | 43,987 | (3 | %) | |||||||||||||
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Consolidated Stockholders’ Equity | 890,455 | 836,401 | 6 | % | 893,542 | (0 | %) | |||||||||||||
Non-controlling Interest | 3 | 3 | 0 | % | 3 | 0 | % | |||||||||||||
Stockholders’ Equity Attributable to Controlling Interest | 890,452 | 836,398 | 6 | % | 893,539 | (0 | %) |
2021 First Quarter Results | Page 6 |
Definitions of Terms and Disclosures | ![]() |
Methodology for translation, consolidation, and presentation of results
CEMEX Holdings Philippines, Inc. (“CHP”) reports its consolidated financial statements under Philippine Financial Reporting Standards (“PFRS”). When reference is made in 2021 and 2020 to consolidated financial statements, it means CHP financial information together with its subsidiaries.
For the purpose of presenting figures in U.S. dollars, the consolidated balance sheet as of March 31, 2021 has been converted at the end of period exchange rate of 48.53 Philippine pesos per US dollar while the consolidated income statement for the three-month period ended March 31, 2021 has been converted at the January to March 2021 average exchange rate of 48.40 Philippine pesos per US dollar.
Definition of terms
PHP refers to Philippine Pesos.
pp equals percentage points.
Prices all references to pricing initiatives, price increases or decreases, refer to our prices for our products.
Operating EBITDA equals operating earnings before other expenses, net, plus depreciation and operating amortization.
Free cash flow equals operating EBITDA minus net interest expense, maintenance and strategic capital expenditures, change in working capital, taxes paid, and other cash items (net other expenses less proceeds from the disposal of obsolete and/or substantially depleted operating fixed assets that are no longer in operation).
Maintenance capital expenditures investments incurred for the purpose of ensuring the company’s operational continuity. These include capital expenditures on projects required to replace obsolete assets or maintain current operational levels, and mandatory capital expenditures, which are projects required to comply with governmental regulations or company policies.
Strategic capital expenditures investments incurred with the purpose of increasing the company’s profitability. These include capital expenditures on projects designed to increase profitability by expanding capacity, and margin improvement capital expenditures, which are projects designed to increase profitability by reducing costs.
Change in Working capital in the Free cash flow statements only include trade receivables, trade payables, receivables and payables from and to related parties, other current receivables, inventories, other current assets, and other accounts payable and accrued expense.
Net debt equals total debt minus cash and cash equivalents.
Exchange Rates | January -March | First Quarter | January - March | |||||||||||||||||||||
2021 average | 2020 average | 2021 average | 2020 average | 2021 End of period | 2020 End of period | |||||||||||||||||||
Philippine peso | 48.40 | 50.83 | 48.40 | 50.83 | 48.53 | 50.68 |
Amounts provided in units of local currency per US dollar
2021 First Quarter Results | Page 7 |