2

MMEESSSSAAGGEE TTOO SSTTOOCCKKHHOOLLDDEERRSS

WWaarrmmeesstt ggrreeeettiinnggss ttoo oouurr AAbbaaCCoorree SSttoocckkhhoollddeerrss!!

We are pleased to inform you that in 2014, AbaCore formerly

Abacus Consolidated Resources and Holdings, Inc. posted a gross

income of P210.2 million, of which 98.4 million or roughly 47%

and 79.6 million or roughly 38% came from the gain on sale of

17,750,700 LOTO shares and gain on revaluation of investment

properties, respectively. Other large income items were from

our share in net earnings of Pacific Online Systems Corporation

(15.8 million or 8%) and dividends received from the same

(12.02 million or 6%).

Income from operations grew from 22.6 million in 2013 to

88.2 million in 2014. There were gains on fair value adjust-

ments on investment properties, contributing to 76.6 million in

other income, noting however that these were not as significant

as 2013 values. The company remains disciplined in managing

costs. Taking away the one-off expenses in 2013 relating to the

increase in AbaCore's authorized capital stock from 3 billion to

5 billion, expenses in 2014 have generally remained in line.

The company, thus, registered a consolidated net income of

140.6 million, 82% lower than the previous years figure, which

translates to a basic earnings per share of 0.0459 compared to

the previous years 0.3564. Assets rose from 6.50 billion in

2013 to P6.53 billion in 2014. From 5.10 billion in 2013, total

equity increased by 46.5 million to 5.11 billion in 2014.

Liabilities decreased by 21.7 million from 2013.

Notwithstanding the lower net income, the company ended the year with an

even stronger balance sheet, with its assets reaching 6.5 billion, current

liabilities at a mere 113 million, and equity at 5.11 billion. While

noncurrent liabilities totaled 1.30 billion, the bulk of this or 1.25 billion

consists of deferred tax provisions resulting from accumulated revaluation

gains on real properties.

For 2015, we continue to be optimistic about economic

prospects, noting that the Philippines positive momen-

tum is expected to continue in the medium term.

AbaCore and its subsidiaries will be focusing on two main lines of activity.

First, we shall further strengthen existing operating teams to enhance their

capability to bring our priority projects to full fruition and generate revenue

streams, and second, we shall continue laying the groundwork for liquidating

investments that have already appreciated due to increases in real estate

prices or in cash flow potential and goodwill of operating subsidiaries.

We intend to scale up our participation in the mining sector. The company will be pursuing deals in

order to commence operations in its gold mining properties with the goal of developing these

investments as sources of meaningful income and cash flows for the future. We continue to explore

partnership opportunities to be able to operate our coal mining properties.

3

For its real estate portfolio, cognizant of opportunities in emerging tourism and commercial and

retail growth sectors in Batangas, the company will be pursuing the completion of its projects in

Montemaria. We will be pursuing the sale or development of other real properties into leisure

condotels, agricultural farms lots and mixed use projects in line with regional development. Where

possible, we shall be undertaking these ventures jointly with other investors, both foreign and local.

The company will be able to provide the cash requirements from its existing cash balances, from

the sale of or dividends from its shares in Pacific Online Systems Corporation, and from term loans.

This will be augmented through the activities of its financial services subsidiaries and through

specific project contributions from existing and prospective operating and development partners.

Insofar as the assets accounts are concerned, the

significant changes are as follows:

Cash and cash equivalents decreased 36% due to the

partial payment of Philippine Business Bank loan and

advances to Montemaria for property development.

Trade and other receivables significantly increased

(68%) due to advances to a contractor by Omnicor

Industrial Estate & Realty Center, Inc., a real estate

subsidiary, for Montemaria projects in Batangas.

Prepaid expenses and others decreased 69% due to

the offsetting of VAT input tax against VAT output tax.

Investment in associates decreased 32% due to the

sale of LOTO shares.

Property and equipment decreased 44% due to the

unconsolidation of Montemaria Asia Pilgrims Inc.

(MAPI).

Advances to related parties increased eightfold due to

the advances to MAPI, also for the development of

Montemaria.

Insofar as liabilities accounts are concerned,

the significant changes are as follows:

Accounts payable and accrued expenses

increased 18% due to the accrual of audit fees

and retirement benefits and recognition of the

balance for property purchase in Mataas na

Bayan, Lemery, Batangas.

Income tax payable decreased 85% due to the

decrease in taxable income for the current year

Current and Non-current portion of loans

payable decreased 15% due to the partial

payment made by AbaCore to Banco de Oro

Unibank, Inc. and Philippine Business Bank.

Advances from related parties decreased 64%

due to the payment made to Blue Stock

Development Holdings, Inc. (BSDHI) and

Hedge Integrated Management Group, Inc.

(HIMGI).

! !"#" $$$$#%$

!" ! "!& #%'( %( '"!$

!"#!" $") !)

!"#$#%"& %$ ) $"#)

#!"'"% !&&& #(#

!(")")$#%"&'"%* !%% !("

'+%(,!!"-"./ "%& $"# "% $& & %

1 parent and subsidiaries

2 net income / average total assets

3 net income / stockholders equity

4 current assets / current liabilities

5 total liabilities / stockholders equity

6 net worth minus intangible assets

AbaCores return on assets and return on equity decreased due to the decrease in net income. Our consolidated current ratio decreased from 1.38 to 0.67 due to the decrease in cash and cash equivalents and increased accounts payable and accrued expenses and current portion of loans payable. Our debt-to-equity ratio slightly decreased due to the decrease in advances from related parties and the payment of the non-current portion of loans payable.

Let us continue our unfailing support for AbaCore in the coming year, an opportunity of for us to

incubate and develop truly worthy projects which hold great promise of returns.

Thank you for your abiding trust in us. May our enterprise be more blessed in 2015.

ABACUSCAPITAL HOLDINGS, INC.

PPRRIIOORRIITTYY PPRROOJJEECCTTSSThrough its subsidiaries, AbaCore is presently involved in eight priority projects, with more in the pipeline. Details and updates are available separately. These eight are as follows:

MONTEMARIA WORLD SANCTUARY. This is a 117-hectare mixed develop-ment project located in Barangays Pagkilatan and Mabacong, south of Bat-angas City. It is envisioned to become a world sanctuary with two major attractions: a spiritual sanctuary and an ecological sanctuary. Both sanctua-ries will offer facilities for a wide range of activities. The focal point will be the tallest monument to the Blessed Virgin Mary in the world, which will

house a conference center to promote peace. The full development will include a commercial center, park-ing areas, residential and townhouse subdivisions, villas and condotels, wellness and healing centers, food establishments, two 500-room resort hotels for pilgrims and eco-tourists, seminar and retreat facilities, and fun camps. The residences will serve both local and foreign visitors and retirees. AbaCore through its subsidiaries Omnicor, Montemaria Asia Pilgrims Inc (MAPI), and Verde Island Passage Marine Sanctuary Inc(VIPMSI) remains open to joint venture partnerships with interested local and foreign investors.

LOCAL GOVERNMENT UNIT (LGU) ADVOCACY. Under the lead-ership of Ambassador Jose V. Romero, has an ongoing advocacy campaign to convince the National Government to pay the share of National Internal Revenue Taxes (NIRT) to the Local Govern-ment Units. Article X, Section 6 of the 1987Constitution mandates: Local government units shall have a just share, as determined by law, in the national taxes which shall be automatically released to them (emphasis ours). That just share is called the Internal Revenue Allotment, or IRA. The Local Government Code deter-mines the share of every LGU.

Unfortunately, it has been the practice of the National Government not to duly remit to LGUs taxes collected by the Bureau of Cus-toms, an agency of the BIR, thus depriving LGUs of much needed funds, and hindering the march of progress in provinces all over the Philippines.

SUNFIELDS DORMITORY ESTATES. This is a 6.5-hectare large-scale dormitory development project located in Barangay Inosluban, Lipa City, near the Lima Park complex. It will address the needs of industrial workers in technoparks and eco-nomic zones in Batangas and nearby areas and will include 36 dormitory build-ings, a BPO area, integrated with commercial facilities and recreational amenities. This is a joint venture project with Corporate Holdings Management Inc. (CHMI). The first phase of construction is scheduled to begin on the third quarter of 2015. Sunfields guarantees the

company a recurring income in the coming years.

MALINIS TOWNSHIP. This is a 36.6-hectare long-term township developmentproject with four major components meant to fully exploit the potentials of the site and its strategic location . The property is located in Barangay Malinis, Lemery, served by a national road, near a major intersection, and adjacent to a river. It is approximately 25 km from Batangas City and 100 km from Manila via the Lemery-Tagaytay route. The company is presently seeking investors

and co-developers for this project.

The town center which will include malls, commercial buildings, a food terminal, parking spaces and an area for large public assemblies will be built on a 5.5-hectare lot east of Ilustre Avenue, the national road.

A high-end gated residential subdivision with a perimeter fence, clubhouse, swimming pool, and park will be built on a 12.2-hectare lot west of the national road. A medium-rise condotel complex will be built on a 3.7-hectare portion of the property located north of the commercial center. Finally, a water park and spa resort with a variety of water sports and comprehensive wellness facilities will be developed on a 15-hectare lot, southwest of the property, adjacent to the Pansipit River. Township investors and residents will enjoy the privilege of owning rights to the resort facilities through club membership.

LIPA PEOPLES MALL. This is a four-storey mini-mall commercial building in Barangay Mojica, Poblacion, the heart of old Lipa City, on a 3,225 square meter lot owned by Abacus Global Technovisions, an affiliate of AbaCore. It will include a basement and will have a total floor area of roughly 15,000 square meters, of which 10,500 sqm will be available for lease to interested locators.

OMNILINES LOGISTICS CENTER. This is a cargo handling facility in a three-hectare property owned by the company, and located in Barangay San Juan, Mabini. It includes warehouses and storage facilities, a refueling sta-tion, diner, convenience store, and a motorist inn. An office building, motor

pool, guardhouse, perimeter fence and lighting, road pavement, and other basic facilities and utilities will be built to effectively and efficiently serve the entire complex. Vehicular parking areas will be designed and sized ensuring smooth traffic circulation and providing adequate capacity. All open spaces will be planted with fruit bearing trees. The project scope is considered non-critical and will be located in what is general-ly zoned as an industrial area.

BERBA-PNR CARGO LOGISTICS COMPLEX. This will be a joint venture project between Omnilines and other parties under the Batangueo Port Services, Inc., a joint venture company, to develop the Berba property and the PNR property leased by the said JVC into a cargo logistics complex. It involves the combined adjacent properties of the partners, 2.38 hectares im-mediately north of the Batangas Port Authority.

The BERBA-PNR Complex in the Batangas port area will include a passenger terminal with needed parking areas, container yard with moving/lifting equipment for trucks and trains, a mini-mall, office buildings, a hostel, restaurants, condominiums, and a landscaped garden walk.

This project will inevitably include socialized housing, since the railways are presently occupied by infor-mal settlers not only along da riles, but also on top of da riles. To resolve this housing problem, BERBA will propose to develop socialized housing communities on PNR railway land in Batangas, on a 25-year lease basis.

SIMLONG LIQUEFIED NATURAL GAS LOGISTICS. This will be a joint venture between the Philippine Re-gional Investment Development Corporation (PRIDE), through its subsidiary Simlong Energy Corporation, and an LNG supplier. The receiving and regasification terminal and cryogenic storage facilities will be built by the LNG supplier on a 45-hectare property owned bythe company, located in Barangay Simlong, Batangas City. The prop-erty has a 220-meter sea frontage along Batangas Bay.

The Philippine National Oil Company (PNOC), the corporate arm of the Department of Energy will procure the natural gas and operate the distribution network, including the pipelines. PRIDE will also enter into the business of gas distribution. This project will be part of the proposed natural gas development program of the Philippines through the DOE, with PNOC as implementing agency. It seeks to establish the infrastruc-ture for the Philippines to eventually use natural gas as an effective fuel and clean energy source.