FINANCIAL REPORT

STATEMENT OF INCOME AND EXPENSE

For the Years Ended December 31, 2009 and 2008

2009 2008

REVENUES

Leases 954,725,487 975,107,298

Port Services 501,669,763 388,522,191

Tourism Services 7,669,975 13,625,777

Other Operating Income 208,705,489 196,913,585

TOTAL REVENUES 1,672,770,715 1,574,168,852

EXPENSES Personal Services 412,044,483 415,298,852

Maintenance and Other Operating Expenses 854,593,410 800,119,256

TOTAL EXPENDITURES 1,266,637,893 1,215,418,108

INCOME (LOSS) FROM OPERATIONS 406,132,822 358,750,744

OTHER INCOME (EXPENSES)

Interest Income 75,298,624 134,425,400

Dividend Income - 24,006,507

Interest on Loans (172,100,584) (187,350,274)

Guarantee Fee and Other Charges (102,476,933) (87,951,890)

206,853,929 241,880,488

Depreciation Expense (755,641,019) (765,424,393)

Gain (Loss) on Foreign Exchange 137,088,198 (2,013,090,671)

INCOME (LOSS) BEFORE INCOME TAX (411,698,893) (2,536,634,577)

INCOME TAX 5,681,346 3,312,884

NET INCOME (LOSS) (417,380,238) (2,539,947,461)

Certified correct: Noted by:

Signed Signed

EMILIA S. CANONIZADO ARMAND C. ARREZAManager, Accounting Department Administrator and CEO

INCOME (LOSS) FROM OPERATIONS BEFORE FOREX GAIN/ LOSS ,

DEPRECIATION & TAX

CY 2009: Result of Operation Revenues for 2009 amounted to Php1.673 billion, an increase of 63% or Php 98.6 million from Php 1.574 billion in 2008. Majority of the increase can be attributed to income from port operations, due to increase in non-containerized cargoes and wharfage fees and

related Import Export (IMPEX) processing fees, as well as increase in fees from lay-up of vessels in SBF.

CY 2009: Result of Operation Expenses increased by 2% or Php 41.436 million, from Php 1.981 billion in 2008 to Php 2.022 billion in 2009. This was due to payment for repairs/maintenance of road/bridges contract , subsidy to SCAD Council, consultancy services, and for other services. The net result of operation registered a net loss of Php 417.4 million in 2009 or a favorable turn-over of Php 2.122 billion from 2008 net loss of Php 2.54 billion due to foreign exchange difference in 2008 and 2009. The depreciation expense amounting to Php755.6 million for the year 2009 and Php765.4 million for 2008, created a great impact on the reported net loss of SBMA. Before depreciation, SBMA registered a net income of Php 206.8 million for 2009 and Php 241.8 million for 2008. Large amount of the depreciation expense are attributable to properties turned over by the US gov't to SBMA and not actually acquired by SBMA.