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PHILIPPINE LONG DISTANCE TELEPHONE COMPANY AND SUBSIDIARIES

CONSOLIDATED FINANCIAL STATEMENTS

AS AT SEPTEMBER 30, 2012 (UNAUDITED) AND DECEMBER 31, 2011 (AUDITED) AND FOR THE NINE MONTHS ENDED SEPTEMBER 30, 2012 AND 2011 (UNAUDITED)

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PHILIPPINE LONG DISTANCE TELEPHONE COMPANY AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION As at September 30, 2012 and December 31, 2011 (in million pesos, except par value per share amounts and number of shares)

2012 (Unaudited) ASSETS Noncurrent Assets Property, plant and equipment (Notes 3, 5, 9, 12, 20 and 27) Investments in associates and joint ventures and deposit for future stock subscription (Notes 3, 4, 5, 10, 24 and 27) Available-for-sale financial assets (Notes 6, 10 and 27) Investment in debt securities – net of current portion (Notes 11 and 27) Investment properties (Notes 3, 6, 9, 12 and 27) Goodwill and intangible assets (Notes 3, 4, 5, 14, 21 and 27) Deferred income tax assets – net (Notes 3, 4, 7 and 27) Prepayments – net of current portion (Notes 3, 5, 18, 24, 25 and 27) Advances and other noncurrent assets – net of current portion (Note 27) Total Noncurrent Assets Current Assets Cash and cash equivalents (Notes 15 and 27) Short-term investments (Note 27) Trade and other receivables (Notes 3, 5, 16, 18, 24 and 27) Inventories and supplies (Notes 3, 4, 5, 17 and 27) Derivative financial assets (Note 27) Current portion of investment in debt securities (Notes 11 and 27) Assets held-for-sale (Notes 10 and 27) Current portion of prepayments (Notes 18 and 27) Current portion of advances and other noncurrent assets (Notes 19, 27 and 28) Total Current Assets TOTAL ASSETS EQUITY AND LIABILITIES Equity Preferred stock, Php10 par value per share, authorized - 822,500,000 shares; issued and outstanding - 36,002,970 shares as at September 30, 2012 and 441,912,370 shares as at December 31, 2011 (Notes 8, 19, 27 and 28) Common stock, Php5 par value per share, authorized - 234,000,000 shares;...