Financial Analysis on PAL Holdings

1. PAL HOLDINGS, INC.
Abejaron Fernandez Mohamed

2. Company profile
 PAL Holdings, Inc. (the Company or PHI) was incorporated in the
Philippines on May 10, 1930. The Company’s purpose is to engage in the
business of a holding company. On October 5, 1979, the Company applied
and was granted an extension of its corporate life by the Philippine
Securities and Exchange Commission (SEC) for another 50 years from
May 1980.
 The Company and its subsidiaries are primarily engaged in air transport of
passengers and cargo within the Philippines and between the Philippines
and several international destinations. The Group operates through its
major subsidiaries: Philippine Airlines, Inc., the Philippine national flag
carrier, and Air Philippines Corporation, a subsidiary under common control
that was indirectly acquired through Zuma Holdings Management
Corporation in 2017.
 The Company is a subsidiary of Trustmark Holdings Corporation
(Trustmark), a domestic corporation and is part of the Lucio Tan Group of

3. Company history
 May 10, 1930
 PAL Holdings, Inc. (PHI) was originally incorporated as Baguio Gold
Mining Company.
 September 23, 1996
 The Securities and Exchange Commission (SEC) approved the change
in the Company's name to Baguio Gold Holdings Corporation and the
change in its primary purpose to that of a holding company.
 January 19, 2007
 The SEC approved the change in Company’s name from Baguio Gold
Holdings Corporation to PAL Holdings, Inc.
 April 2012
 San Miguel Equity Investments Inc. (SMEII), a wholly owned subsidiary
of San Miguel Corporation, acquired 49% equity interest in Trustmark.

4. Company history
 October 23, 2014
 Buona Sorte Holdings, Inc. (BSHI) and Horizon Global Investments
Limited (HGIL) acquired 9% and 40%, respectively, the 49% stake of
SMEII in Trustmark.
 December 21, 2017
 The SEC approved the acquisition of Zuma Holdings Management
Corporation (ZUMA), the holding company of Air Philippines Corporation
(APC), through share swap transaction.
 February 1, 2019
 ANA Holdings, Inc., the parent company of All Nippon Airways, acquired
a 9.5% equity interest in PHI.

5. Organizational Chart

6. Organizational Structure

7. Shareholdings Structure

8. Board of Directors

9. Financial Crisis

10. The Asian Financial Crisis of 97-98
 September 23, 1998
1997-1998 financial
crisis. After the
debilitating effect of the
Asian economic crisis,
PAL’s temporarily closed
its operations at midnight
after 57 years of
uninterrupted service.
The airline operated its
last flight out of Manila
for Los Angeles and from
Cebu to Manila.

11. The Asian Financial Crisis of 97-98
The company had
lost $US338 million
over the last four
years and has
suspended
payments on its $2.1
billion in debts

12. The Asian Financial Crisis of 97-98
Some 300 workers staged a noisy protest outside Manila airport's
domestic passenger terminal to call on the government to keep PAL
running. At PAL offices around the country, airline workers attended
prayer rallies and protests.

13. The Asian Financial Crisis of 97-98
PAL resumed operations on October 7, 1998, after an
agreement between PAL employees and top management

14. The Asian Financial Crisis of 97-98
The plan also
required the infusion
of US$200 million in
new equity, with
40% to 60% coming
from financial
investors and
translating to no
less than 90%
ownership of PAL

15. Other Milestones
 September 1 2000
On September 1, 2000, PAL formally handed over its ownership of its
maintenance and engineering division to German-led joint venture
Lufthansa Technik Philippines (LTP), the world's largest provider of aircraft
maintenance services in accordance with the provisions of its rehabilitation
plan, which mandates the disposal of the airline's non-core assets

16. Other Milestones

17. Financial Statements

24. Financial Ratios

26. Reference:
 https://phi.com.ph/
 https://edge.pse.com.ph/companyInformation/f
orm.do?cmpy_id=20
 https://www.bloomberg.com/quote/PAL:PM