MESSAGE TO STOCKHOLDERS

Warmest greetings to our AbaCore Stockholders!

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 adjustments 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 momentum 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.

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:

Insofar as liabilities 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.

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).

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current assets / current liabilities

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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 noncurrent 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.

ABACUS
CAPITAL HOLDINGS, INC.

PRIORITY PROJECTS

Through 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 development project located in Barangays Pagkilatan and Mabacong, south of Batangas City. It is envisioned to become a world sanctuary with two major
attractions: a spiritual sanctuary and an ecological sanctuary. Both sanctuaries 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, parking 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 leadership 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 Government 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 determines 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 Customs, 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 economic zones in Batangas and nearby areas and will include 36 dormitory buildings, 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 development
project 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 15hectare 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 station, 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 generally 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 immediately 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 informal 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 Regional 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 by
the company, located in Barangay Simlong, Batangas City. The property 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 infrastructure for the Philippines to eventually use natural gas as an effective fuel and clean energy source.