BASIC INFORMATION

• Filinvest Land, Inc. (FLI) is one of the top residential property

developers in the country. Over the years, it has established
itself as a leader in residential housing development especially
in its core business of affordable and middle-income housing.
From its first middle-income residential subdivision in Cebu,
FLI never looked back, expanding steadily into various
locations where there was a need. Today, FLI is a full-range
property developer with an impressive portfolio scattered all
over the archipelago. From building houses, the company has
diversified into high-rise condominiums, medium-rise
developments, BPO office buildings, shopping centers and
leisure developments.
 BASIC INFORMATION
• Type of Business: Real Estate, Leasing &
Construction
• Filinvest was established in 1955 in the
Philippines by Andrew L. Gotianun Sr.
 BASIC INFORMATION
• MISSION
• The mission of Filinvest Land, Inc. is to fulfill every
Filipino’s dream of having his own home. The primary
responsibility of Filinvest is to the people that inhabit
the cities, communities and homes it has created.
Filinvest will continually contribute to the economic
development of society and will always be a good
corporate citizen.
 BASIC INFORMATION
• OBJECTIVE
• Filinvest shall provide its customers with universally competitive
products that are valued not only for quality but in terms of
affordability for all income levels. Only through research and
development, innovation and the use of appropriate technology
can high-quality services be provided. Affordable housing shall
always be a high priority in company endeavors. Coupled with
safeguarding and maximum utilization of company assets, this
long-term view (one of holding permanent the strategic health
of Filinvest) should lead to better and sounder returns for
stockholders. The continuous pursuit of this mission can only
result in industry leadership.
 BASIC INFORMATION
• SHARED VALUES
• In the delivery of service to its clients, high quality will be the
one and only standard. A singularity of interest exists between
the company and its employees. Providing good working
conditions, compensation based on performance, opportunity
for growth, and employment security are musts. The core
values of integrity, customer service, professionalism,
teamwork, innovation and cost-effectiveness are highly
valued. The highest standards of business and moral ethics
shall be exercised. The long-term strategic health of Filinvest
will always be paramount over short-term financial gains
ORGAZINATIONAL CHART
 BOARD OF DIRECTORS
Directors:
• Efren C. Guttierrez
• Michael Edward T. Gotianum
• Mercedes T. Gotianum
• Francis C. Gotianum

Chairman:
• Jonathan T. Gotianum
• Vice Chairman:
• Andrew T. Gotianum, Jr.

Independent Director:
• Val Antonio B. Suarez
• Lamberto U. Ocampo
CUREENT FINANCIAL SITUATION
CURRENT FINANCIAL SITUATION
 FINANCIAL STATEMENT ANALYSIS
• The Horizontal Analysis represents how the company perform over a
period of time. On the Filinvest Land Inc.’s Balance Sheet, their assets,
liabilities and equities on the year 2017 are higher than the previous year.
Their total current assets on 2017 gained ₱53,556,326, while on 2016 on
gain ₱42,070,833 which have a 21.4% increase on 2017. Their total non-
current assets of 2017 gained ₱91,565,593, while on 2016 gain
₱87,354,399 which gained a 4.6%. Their total current liabilities gained
₱18,168,714 on 2017 and on 2016 gained ₱12,013,474 with a 33.9%.
Their total non-current liabilities got ₱63,452,162 on 2017 and
₱57,988,848 on 2016 that gained 8.6%. Their total liabilities on 2017 have
₱81,620,876 and ₱70,012,595 on 2016 with a 14.2%. The total equities of
the company have gain a ₱63,501,043 on 2017 and ₱59,412,637 on 2016
which gained a total of 6.4%. The total assets and liabilities & equities
have gain a ₱145,121,919 on 2017, while ₱129,425,323 on 2016 which
has a 10.8%.
 FINANCIAL STATEMENT ANALYSIS
• On the Income Statement of the company, they earned a total
of ₱20,269,651 on 2017 and ₱19,500,586 on 2016 which has a
percentage of 3.7% on their revenues. And then, on their
expenses, they have a ₱12,974,494 on 2017 and ₱12,646,185
on 2016 which have a 2.5%. Their Income before Income Tax
has gain ₱7,295,457 on 2017 and ₱6,854,401 on 2016 with a
result of 6.0%, and on their Provision for Income Tax has a
₱1,460,976 on 2017 and ₱1,503,615 on 2016 with a result of
-2.9%. The company’s Net Income has a ₱5,834,181 on 2017
and ₱5,350,786 with a result of 8.3%. And then, on their total
comprehensive income has gain ₱5,837,818 on 2017 and
₱5,314,161 on 2016 which has a result of 8.9%.
 FINANCIAL STATEMENT ANALYSIS
This is the Vertical analysis of Filinvest Land Inc. and Subsidiaries for the year 2017.
For the assets, Investment in associates contributed the highest with 30. 54% while Deferred
income tax had the lowest with 0.03%, Real Estate Inventories have 23.05%, Land and land
Development have 13%, Contracts Receivable – net of current portion gained 8.74% then Cash
and Cash Equivalents have 5.22%, Other current Assets have 4.20%, Goodwill have 3.14% while
Contracts Receivable have 3.12%, Investment Associates gained 2.89%, Other Non-current Assets
have 2.38%, Property and Equipment have 2.34% and Other receivables have 1.29% in total of
100% for Assets. For the Liabilities and Equity, Equity Attributable to Equity holders of the Parent
have the highest percentage of 43.58% while Revaluation reserve on financial assets at fair value
through other comprehensive income had the lowest with a negative 0.0018%, Bonds Payable
gained 23.96%, Retained earnings have 22.80%, Common stock have 16.86%, Loans Payable – net
of current portion have 13.35% next is Accounts Payable and Accrued Expenses with 9.82%,
Additional Paid-In Capital with 3.90%, Deferred Income Tax Liabilities – net with 3.65%, Current
Portion of Loans Payable have 2.52% close is Other Non-Current Liabilities with 2.21% next is Net
Retirement Liabilities with 0.35%, Share with other components of equity in an associate with
0.24% while Non-Controlling Interest have 0.17%, Due to Related Parties have 0.13%, Preferred
Stock have 0.05% close is Income Tax Payable with 0.03%, Remeasurement losses on retirement
plan – net of tax have negative 0.10% and Treasury Stocks have negative 0.15% in total of 100%
for Liabilities and Equity.
 FINANCIAL STATEMENT ANALYSIS
• For Revenue, Real Estate Sales gained highest with 67.82% while
Equity in net Earnings of Associates have the lowest percentage with
1.72%, Rental and Related Services have 21.77%, Interest Income
have 4.61% and Others – net have 4.05% in total of 100% for the
Revenue. Total Expenses have 64.01% while Remeasurement gains
(losses) on retirement plan, net of tax have 0.02%, Real Estate Sales
have 39.72%, Income before Income tax have 35.99%, Other
comprehensive income (loss) not to be reclassified as profit or loss
have and Net income with 28.78% close is Equity Holders of the
Parent with 28.04%, next is General and Administrative Expenses
with 9.27%, Provision for Income tax with 7.20%, Rental and Related
Services have 4.92%, Selling and Marketing Expenses have 4.84% and
Noncontrolling Interest with 0.73%
 FINANCIAL RATIOS
•  
Financial Ratios: *Times Interest Earned
• Liquidity Ratio
 

The company can pay their interest 7.86 times.

 
For every P1.00 of liability, you have a capability to pay P2.94  
Profitability Ratio

There is P1.10 of assets that can be easily converted to cash.

The gross profit is 55% of the overall net sales.
 
 
• Leverage Ratio

The operating margin is 41% of the overall net sales.

56.24% of the company’s total assets came from their liabilities.
 
 

The net profit is 28% of the overall net sales.

47.75% of the company’s total assets came from the investments or
owner’s equity.
 
 FINANCIAL GOALS
Filinvest Land Inc. has an extensive real-estate properties, land banks,
high-rise condominiums, and even malls, but their inventory is quite
high and to fix that problem we have decided on three (3) possible
projects that may be of help to Filinvest Land Inc.
There are quite a bit of flaws in Filinvest, as seen on their financial
statements. The company’s current assets are only one-third of their
total assets which means there are only a small portion of assets that
can be easily converted to cash and their inventory is high. Another thing
to take notice is how they penetrate a new market or how they maintain
a steady publicity on an existing market. They can also spend some
attention on their revenues since their net income is just about 25% of
their overall revenues. These are some projects that may give them an
idea on how they will improve certain aspects of their company.
 FINANCIAL GOALS
1.) BUILD COST-EFFECTIVE HOUSES
This is a housing alternative to the standard societal trap of renting and giving somebody
else your hard-earned cash, or getting an expensive mortgage you'd be enslaved to, for a
stereotypical western home which could require a lot of maintenance, i.e. that it could be a
money pit.
2.) SELL HOUSES FOR LOWER PRICE
There are families who are dreaming to have their own houses. It is a way to help the
families who are not financially capable building their own home. Since inventory covers
about 60% of our current assets, we must lessen the inventories to at least acquire its
breakeven point. Selling houses at a lower price will encourage people to buy, thus it will
help the company to move its inventories and get the cash conversion moving.
3.) PUBLICITY
Both the cost of production and the cost of the actual TV spot vary greatly from location to
location. For the production of the ad for Filinvest we will use the marketing team and as
much as possible make the work efficient. For the cost of the TV spots, it depends on what
time the commercials will air. Initially, we will buy filler spaces, but buy some primetime
spots as well and test both to see if the cost per lead makes sense.
ALTERNATIVE WAYS TO ACHIEVE FINANCIAL
GOALS
1.) COST EFFECTIVE HOUSES
Advantages: Disadvantages:
• Cost • Location
• Efficiency • Availability
• Most people are more
• Preserving
knowledgeable and aware
infrastructure of those that were built in
• High ROI rates standard materials.
• Source of Funds
 ALTERNATIVE WAYS TO ACHIEVE FINANCIAL
GOALS
2.) SELL HOUSES AT A LOWER PRICE
Advantages: Disadvantages:
• Once the hammer has been dropped, the • There is no guarantee that the property will reach its
reserve price or sell at all. In this eventuality the company
property is sold, so buyers can’t back out at may have to relist it which will incur further costs. If they are
the last minute. If they do change their relying on the proceeds of an auction to buy another
mind, there are legal procedures in place to property immediately it may make the process difficult or
impossible.
protect the company. •  The price the company receive may not fully satisfy the
•  If we don’t sell because our reserve price is expectations. If it only just reaches slightly over the reserve
too high, there is always the potential to price we may be disappointed. However, by then it will be
too late.
negotiate with any interested parties after • The costs of selling at auction may exceed those of using an
the auction has finished. estate agent, and company have to pay the auctioneer’s fees
• The auction house will assist the company regardless of whether the property is sold or not.
•  Another factor: the cost of borrowing is going up. While
with setting a guide price but it’s in its own interest rates are still relatively low, the fact they are
best interests to do some research to increasing is causing the market to slow.
discover exactly what similar properties in • Banks are willing to lend, but rates have gone up. When it
goes up a point, that’s a substantial amount of money.
your area are selling for so that it can make
 
an informed decision.
 ALTERNATIVE WAYS TO ACHIEVE FINANCIAL
GOALS
 3.) PUBLICITY
 Advantages: Disadvantages:
• Filinvest will set a marketing • Risks
budget equal to 10% of
commission income.. • Increased costs
• Although digital marketing is • Wrong Medium
quickly catching up to • Too Much Business
traditional marketing
effectiveness, real estate
agents should still devote
some of their budget
towards the more traditional
forms of communication.
 FINANCIAL PLANS
SELL HOUSES/ RENTAL UNITS AT A LOWER PRICE
S - In recent years, FLI has expanded its residential business to include other income
segments (high-end) and themed residential projects with a leisure component, such as
farm estates and developments anchored by sports and resort clubs. But this only lead
the company to have too much inventories of houses and rental apartments/buildings
stocked and unmoved. To be able to at least earn its costs and meet its breakeven point,
our company will offer these properties at a lower price maximum of 10%.
A lot of families and couples are also looking for a decent house in a safe environment to
live and Filinvest Land will be the best and most affordable place for them.

M – We came up with this proposal as we have set a goal to minimize our inventories
and increase revenues and receivables form our financial statement. Having more of
these accounts will help the company to build and make more projects that will help for
its development and accomplish financial objectives. This proposal can be implemented
right at the time it will be approved, and shall last for
 FINANCIAL PLANS
A – In line with the proposal we are presenting, to achieve this goal, Filinvest should make an ad,
a flyer or any marketing strategy to let the public know about the mark down we will implement.
This will encourage them to buy a property and/or spread the word to everyone else they know.
The goal we want to be accomplished is to sell more properties and rental units, move inventories
and earn profit from these instead of keeping them stored as an inventory.

R - By lessening the inventory, the company will gain back what they’ve spent. After this project,
the Filinvest Company will resume to its proper function and make another projects with enough
money that might be helpful for implementing another new sets of ideas. Filinvest has numbers
on its asset accounts but these numbers are mostly from non-current assets because of the
unmoved inventories. This project will be suitable to solve the said problem.

T – This project will be good to go and implemented a month after it will be approved. This month
will be used as an adjustment period and publicity of the project. It will be going for the next 6
months to ensure that houses will be sold and there will be enough money for new projects.
 FINANCIAL PLAN
1. The Company's
Current Financial
Situation

5. Create and
2. Develop
Implement the Financial Goals
Financial Action

4. Advantage and 3. Alternate Ways or

Disadvantage Projects
 GROUP 1
MEMBERS:
• TUAZON, Nicole Andrea
• NORONA, Shahida Rodney
• FABELA, Jonalyn
• RIVA, Johnric
• MATARONDO, Kim Allen
• REYES, Ausline Raine
• LEGADA, Aerian Nico