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Annual Report 2009
01 Financial Highlights 02 Chairman’s Message 04 President’s Message 44 PSE Board of Directors 06 Stock Market Performance 46 Management Committee 08 Highlights of Operations 47 Department and Section Heads 49 Information Required by the Securities Regulation Code
48 SCCP Board of Directors and Officers
51 Report of the Market Integrity Board 52 Report of the Corporate Governance Committee 53 Report of the Audit Committee 54 Statement of Management’s Responsibility for Financial Statements 55 Independent Auditors’ Report 56 Financial Statements
Balance Sheets, Statements of Comprehensive Income, Statements of Changes in Equity, Statements of Cash Flows, Notes to the Financial Statements
101 Listed Issues as of Yearend 2009 IBC Corporate Information
104 List of Active Trading Participants
A premier exchange with world-class standards for trading securities and raising capital that serves as a strong engine for a robust economy
Offer products and services responsive to the needs of investors and other stakeholders Provide a facility for fair, accurate, complete and timely information about listed companies, while extending market education and awareness programs to investors
Professionalism in delivering quality service and in meeting the highest standards of excellence Integrity, transparency and accountability in implementing business programs and enforcing decisions Teamwork in working towards a common and favorable goal for the market Mutual respect in relating with fellow employees Inner strength in prioritizing the common good of the market instead of individual interest Corporate responsibility in promoting market growth hand in hand with community welfare
About the Cover
The Philippine Stock Exchange (PSE) continues to be invigorated even in a challenging market like a plant that can flourish in unforgiving territory such as soil and debris. Over time, the plant can send roots into the rock itself, splitting the rock and finally emerging onto the surface. With a foundation built over time, the PSE commits to revitalize itself as it grows confidently yet mindful that there is still room for improvement. We are committed to seek long-term initiatives aimed at boosting market activity and shoring up investor confidence.
Be a preferred venue for raising capital Practice and promote good governance within the Exchange and among listed companies and trading participants Operate efficiently to optimize shareholder value Adopt world-class systems and global best practices for an efficient, fair and orderly market Develop a highly motivated and professional workforce, committed to serve and excel
(in thousand pesos)
CONSOLIDATED 2009 2008 RESULTS OF OPERATIONS: TOTAL REVENUES Listing Fees, Maintenance & Processing Fees Trading Fees Service Fees Interest Income Others TOTAL OPERATING EXPENSES INCOME BEFORE INCOME TAX NET INCOME AFTER TAX YEAREND FINANCIAL CONDITION: TOTAL ASSETS Cash and Cash Equivalents Short-term Available-for-Sale Investments Long-term Available-for-Sale Investments Property and Equipment TOTAL LIABILITIES Current Liabilities Clearing and Trade Guaranty Fund EQUITY 2,542,094 393,731 315,898 610,473 509,184 626,679 166,390 455,396 1,915,415 2,439,853 132,489 367,633 841,401 452,186 532,810 124,488 402,289 1,907,043 622,259 202,092 139,283 177,576 86,830 16,478 344,520 281,292 207,743 729,112 340,548 112,306 136,404 110,703 29,151 301,187 423,911 291,479
PARENT 2009 2008
14.39 (33.64) (28.73)
308,402 236,773 207,666
273,325 501,175 407,394
12.83 (52.76) (49.03)
4.19 197.18 (14.07) (27.45) 12.60 17.62 33.66 13.20 0.44
1,999,541 325,470 200,111 585,900 507,764 141,621 141,621 1,857,920
1,959,868 60,133 313,480 801,554 450,581 110,847 108,374 1,849,021
2.02 441.25 (36.16) (26.90) 12.69 27.76 30.68
The Philippine Stock Exchange, Inc.
Annual Report 2009
(14.66) (40.66) 24.02 30.18 (21.56) (43.47)
545,175 202,092 139,283 79,748 124,052
774,500 340,548 112,306 102,761 218,886
(29.61) (40.66) 24.02 (22.39) (43.33)
The Philippine Stock Exchange, Inc.
Annual Report 2009
Dear Shareholders and Friends, When we look back at 2009, we see an investment environment consisting of two seemingly divergent realities – a struggling real economy coupled with a vibrant financial sector. On one hand, the real Philippine economy showed weakness. Under the weight of the recent global crisis, the economy was soft, and was dragged by a contraction in the manufacturing sector, the sharp slowdown in exports and weaker personal consumption. The Philippine economy slowed to a growth of 0.9 percent in 2009, compared with 3.8 percent in the previous year as it defied expectations of an economic contraction. On the production side, agricultural growth decelerated due to the impact of tropical storms “Ondoy” and “Pepeng” on crop production. The industrial sector, which also accounts for a third of the economy, contracted during the year, as it also reflected declines in manufacturing and electricity, gas and water output. On the expenditure side, contributing to the slowdown were: weaker personal consumption due to high prices of commodities; lower investments in capital formation mainly from a contraction of investments in durable equipment; and a steep contraction in exports as merchandise exports continued to shrink from reduced exports of garments, semiconductors and electric microcircuits, to name a few. There was the unusual trend in corporate earnings, which moved in the opposite direction of the macroeconomy. Corporate earnings rose by a remarkable 61 percent to P283.8 billion during the first nine months of 2009 from P176.5 billion a year ago. The upsurge in net income figures was largely driven by huge one-time gains from asset sales and a low-base effect when profits declined in 2008. The asset sales reinforced the view that valuations were too low to ignore and that stocks were worth picking up after the market hit bottom. If we adjust for these exceptional items, it would reflect an estimated core net profit growth of 29.5 percent for the first nine months of the year. The financial markets also showed a substantial recovery from the crisis of 2008. The Philippine Stock Exchange index (PSEi) closed the year with a spectacular gain not seen in 15 years as it ended 2009 at 3,052.68 points, posting an annual gain of 63 percent. Even the financials index demonstrated an increase of 46.6 percent. These indicators suggest that investor optimism discounted the signals in the real economy and had a direct correlation with earnings results. It was also a reflection of the high levels of locally generated liquidity that needed to be put to work in the form of active investments, as well as increased foreign buying.
By the end of the year, trading activity rebounded by as much as 32.3 percent to record an average daily turnover of P4.1 billion – or near the levels we have seen before the crisis. The low interest rate environment further underscored the attractiveness of the equities market. The 90-day T-bill offered by the government fetched an average yield of 4.2 percent, lower than its 5.4 percent yield in 2008. The peso appreciated against the US dollar in 2009, moving together with the appreciation of most currencies in the region. The peso closed at P46.20 per dollar, stronger than its P47.52 level against the greenback in 2008. Compared with our peers in the region, the Philippine stock market fared better in terms of growth in value turnover at 23 percent. Despite the impressive increase in trading activity, our Exchange still has the lowest market capitalization, value turnover levels and universe of listed companies and products to offer. This weighs on our capability to be competitive in the global market. Investors however saw value recovery in their investments as domestic market capitalization at the close of the year soared 61.4 percent to P3.99 trillion, its highest recorded growth. All PSE sector indices also posted gains in 2009, led by the mining & oil and the industrial sectors which surged 234.1 percent and 115.7 percent, respectively. While we saw a rebound in market capitalization, the environment for new equity issuances remained very challenging. A combination of the uncertainties in the global financial market, with relatively thin local liquidity and expected volatility, put a damper on new issues. Despite the recovery in market valuations, corporate issuers responded in a classical manner, with corporate debt issues reaching record levels compared with three listings in the stock market. This was due to the historically low interest rate environment. To illustrate, there were seven corporate bond issuances in 2009 amounting to P94.3 billion. With such challenges, your Exchange intensified and continued to pursue its
initiatives in preparation market activity in 2010.
With landmark pieces of legislation such as the Personal Equity and Retirement Account Act (PERA) and the Real Estate Investment Trust (REIT) Law, we are hopeful that the roster of Exchange-listed companies will continue to grow in 2010. We also began a number of corporate governance initiatives that would benefit the market. The ongoing projects include the upgrading of our listing and disclosure rules as we continue to align with international best practices. We are also pursuing the development of a corporate governance-based listing board called the “Maharlika Board” for listed companies that want to subject themselves to higher standards of corporate governance. Transparency helps investors make better, informed decisions and there is a body of evidence that this translates to higher corporate valuations.
the Exchange’s headquarters which are currently housed in two separate locations—Tektite Towers in Pasig City and Ayala Tower One along Ayala Avenue in Makati—shall be integrated into one main office. The project aims to increase the efficiency of the Exchange’s operations and reduce its operational costs. The target completion of the project is towards the second half of 2010. Recognizing the need for regional integration across markets, your Exchange deepened its collaboration with other ASEAN Exchanges by embarking on the development of a trading linkage in cooperation with the NYSE Euronext Technology SAS. We envision the ASEAN trading linkage to facilitate increased intraASEAN trading and allow the marketing of ASEAN as an asset class in the global market. Furthermore, the Exchange entered into strategic alliances with major bourses in the region such as the Shenzhen Stock Exchange, Ho Chi Minh Stock Exchange and The Korea Exchange, Inc. to explore mutual cooperation through information and experience sharing which will further promote the capital markets in the region. Despite the challenging market conditions, we welcomed three new listings on the stock market, namely: Ripple E-Business International, Inc. (RPL) which listed its shares through an initial public offering and AgriNurture, Inc. (ANI) and Century Peak Metals Holdings Corporation (CPM) which listed their shares by way of introduction. As we continue to face a number of challenges in both the domestic and global arena, your Exchange remains steadfast in pursuing reforms and initiatives that are geared towards improving investor confidence and enhancing shareholder value.
Our Amended Market Regulation Rules implemented changes to further improve the regulation of our trading participants (“TPs”). Among the salient provisions of the amended rules are the enhanced requirements for membership in the Market Integrity Board, the increase in the unimpaired paid-up capital of TPs and the classification of TP offenses. Investors should feel more confident in dealing with the TPs on an ongoing basis. We’ve had internal corporate governance reviews that affect our operational efficiency. The office integration initiative is one such example. Under this initiative,
Thank you very much.
HANS B. SICAT Chairman of the Board
The Philippine Stock Exchange, Inc.
“With such challenges, your Exchange intensified and continued to pursue its initiatives in preparation for renewed market activity in 2010.”
Annual Report 2009
The Philippine Stock Exchange, Inc.
Annual Report 2009
Dear Shareholders and Friends, We were hopeful at the start of the year that 2009 would serve as the turnaround year for the stock market and your Exchange following a very challenging 2008, perhaps one of the most difficult years in the bourse’s history. On hindsight, I believe we can now say that 2009 did not disappoint. At the start of the year, we stood on shaky ground as we saw first quarter figures recording an average daily turnover of below P2 billion and our main index, the Philippine Stock Exchange Index (PSEi) falling lower than the 1,900-point level. Investors remained cautious while waiting for signs that the global financial crisis that struck late in 2007 has reached the bottom. In no time, investors found out that they would not have to wait long. During the second quarter, our market started to pick up and from there, never looked back. And by the end of 2009, the PSEi had grown by 63 percent to post its biggest annual turnaround since 1994. The turnaround in prices helped our domestic market capitalization to grow at its fastest pace in the history of the stock market. The 61 percent increase in domestic market capitalization to P3.99 trillion by the end of 2009 from its yearend level of P2.47 trillion in 2008 is an alltime high. Helping boost the increase in the market’s size were the new listings of the shares of three companies. These were software developer Ripple E-Business International, Inc. which conducted an initial public offering; exporter AgriNurture, Inc. and mining company Century Peak Metals Holdings Corporation, which both listed their shares by way of introduction. Capital raised in 2009 also grew 23 percent to P38.77 billion while trading activity, as measured by the total value turnover, for the period jumped 30 percent to P994.15 billion. Our local investor base continued to buoy the stock market as domestic trades accounted for 67.6 percent of total trades for the year. Meanwhile, foreign investors were net buyers at P14.92 billion, reversing the P22.16 billion net foreign selling recorded in 2008. The recovery however was not enough to swing our net income figures higher than what we recorded in 2008. In 2009, we posted a consolidated net income of P208 million, 28.7 percent lower than what we posted in 2008. However, we managed to reach these figures despite only one additional listing on the main board, due in large part to increased trading activity and the efficient use of the company’s resources. Despite the challenging market, your Exchange was invigorated by the broad recovery in investor sentiment, the
partners. Value and enforce corporate governance standards. and the strong support of our local investor base. the turnaround in 2009 was a pleasant surprise after a tumultuous 2008. The past years. the passage of capital market-friendly laws. LEVEL UP stands for List more companies and securities. During this event. This is aimed at lifting ASEAN Exchanges to new heights amidst growing competition and consolidation of markets globally. The growth of the PSE depends significantly on how it positions itself vis-à-vis its peers in the region and globally. We need to keep building on the momentum that has been created by the market’s recovery. Enhance shareholder value. We also take great joy in the fact that the Exchange contributed to the passage of five capital market-related laws—namely: the Personal Equity and Retirement Account Act (PERA). which permanently exempts stock trades from the Documentary Stamp Tax (DST). Launch new products and services. FRANCISCO ED. trading system upgrade. Some of the exciting plans for this year include the launch of a new trading system. Finally. Expand and educate the investor base. On December 17. and employees.passage of capital market-friendly laws. market integrity. the President of the Republic of the Philippines signed into law Republic Act No. The PSE also continued to nurture a younger breed of investors through the continuous implementation and monitoring of CHED Memorandum Order (CMO) 39. This was followed by similar Memoranda of Understanding with the Ho Chi Minh Stock Exchange and The Korea Exchange. we are mindful that we still have a long way to go. Thank you very much and I wish you all the best. the implementation of our revised consolidated listing and disclosure rules. ASEAN Exchanges eventually selected no less than a global leader in NYSE Euronext Technology SAS to provide the technology solution for the ambitious ASEAN trading linkage project. Annual Report 2009 “Despite the challenging market. relish our victories in the past year. 2009. as much as we would like to These fundamental market reforms. LIM President and CEO The Philippine Stock Exchange. 2009. With the support of our board of directors. position the Exchange for further growth and development. and the launch of our Real Estate Investment Trust (REIT) product. we have made significant inroads through our LEVEL UP strategy as we followed through on the business plans we set out for 2009. the PSE hosted the Annual General Assembly of the Asian and Oceanian Stock Exchanges Federation (AOSEF) in Cebu on April 23. the PSE signed a Memorandum of Understanding with the Shenzhen Stock Exchange to explore mutual cooperation through information and experience sharing. the PSE continued to work with other ASEAN Exchanges in selecting a viable partner to implement the ASEAN trading linkage gateway. I would like to express my deepest gratitude to the PSE and our Board of Directors for having given me the distinct honor and privilege of serving as PSE President and CEO for more than five years. In keeping with its vision to become a premiere exchange in the region. on a more personal note. In this light. the launch of the Maharlika Board or the special corporate governance listing segment. the REIT Act of 2009 became a law. have been very fulfilling both professionally and personally. 2009. the office integration plan to merge our Ayala and Tektite offices. and the successful pilot testing of capital market topics as part of high school education in the country. and Partner with government and other stakeholders. further support our LEVEL UP agenda and push the Exchange to new heights. For most observers. However. and the strong support of our local investor base. 9648. On June 30. The year 2009 also marked the second year of our five-year “LEVEL UP” strategic agenda which aims to provide a long-term vision in operating your Exchange and to bring into fruition our goal of becoming a premiere bourse. REIT Act and the Financial Rehabilitation and Insolvency Act (FRIA). stakeholders. The PSE is also expected to benefit from the passage of two additional and major capital market-friendly laws passed by Congress in 2009. Your Exchange also remains confident that the new leadership following the 2010 elections will continue to carry on reforms that will further boost the development of the capital market. the Exchange has lined up key programs for the stock market to kick-off the new decade. while not exactly a “walk in the park”. Credit Information System Act (CISA). removal of the Documentary Stamp Tax (DST). in the first quarter of 2010. your Exchange has all the more reason to remain optimistic that we will continue to grow amid renewed investor confidence and a more favorable macroeconomic environment. your Exchange was invigorated by the broad recovery in investor sentiment. Inc.” As the global economy slowly picks up in 2010. Inc. With this in mind. and corporate governance reform. We have enlisted the help of Thomson Reuters to provide valuable market information using our outdoor video display along Ayala Avenue. which is widely anticipated to usher in fresh listings on the bourse upon its full implementation. Upgrade market infrastructure and human resources. together with our inroads in capital market education. 5 .
But when the dust of the turmoil has all but settled. In 2009. much higher than the P68 billion deficit recorded in 2008 and overshooting the programmed deficit of P250 billion for the full year 2009. which have been instrumental in helping the local economy weather the recent crisis. 2009. the government continued to help stimulate the economy by hiking its expenses in critical areas. The central bank’s policy actions over the last few years.20 against the greenback from last year’s finish of P47. The improvement in the profits of listed companies provided a strong basis for the gains of stock prices. along with a 3.3 percent average posted in 2008. Auctions for the 91-day Treasury bills fared much better in 2009 compared with the previous year. significantly lower than the 9.1 percent growth in aggregate revenues. the Philippine stock market once again showed its resilience and character and built a new momentum for growth. gained value from the weakening US dollar as it closed the year slightly up by P1.52 per US dollar. the government incurred a fiscal deficit of P299 billion by yearend. allowing the inflation rate to decelerate to a 22year low of 0. The headline inflation rate ended the year with an average of 3. This however. . The string of typhoons that left widespread damages in Luzon also slowed down production. This proved to be the highest annual gain of the main index since the local stock market adopted a single main index in 1994 under a unified Exchange. The continued inflows from overseas remittances also helped perk up the supply of dollars. along with other Asian currencies. It was a year that was marked with uncertainty considering the events that unfolded in the previous years such as the collapse of the US housing market and the eventual downward spiral of stock and financial markets around the world. The gradual recovery in the equities market allowed rates in lowrisk instruments to remain low. Major commodity groups continuously recorded slower price increases throughout the year. along with the declining inflation rate.83 points at the close of 2009 to finish the year at 3.9 percent in 2009.1 percent in August. The BSP reduced its overnight borrowing and lending rates five times during the first half of 2009. whose interim financial reports for the said period were submitted to the PSE as of November 23. The country’s financial sector remained stable behind the deliberate monetary policies of the Bangko Sentral ng Pilipinas (BSP). allowed the BSP to further ease its key interest rates early in the year.8 percent at P46. In anticipation of the challenging road to recovery.8 percent. After experiencing double-digit inflation levels in 2008.6 percent.00 percent and 6. 63. The combined net income of listed companies during the first nine months of the year increased by 60. with the average interest rate of the benchmark 91day short-term debt paper even declining to 4. and elected to keep the said rates low at 4.32 or 2.19 percent at the end of the year from an average of 5.119. the Philippine stock market recorded a remarkable turnaround in 2009 evidenced by the historic upsurge of the main index.2 percent. * This prevailing optimism and solid corporate fundamentals allowed the market to discount the lackluster performance of the Philippine economy that only managed to grow by less than one percent or 0. 2009.96 points on December 2.39 percent in 2008.0 percent higher than its close in 2008. respectively. the country’s headline inflation rate tapered off in 2009. The economy continued to reel from the sluggish performance of the exports sector which suffered consecutive double-digit monthly contractions as the economic slump in the US and other export partners of the Philippines continued to dampen demand for exported goods. and soaring government disbursements. Financial markets started the year on a sour note as investors were skeptical over the US$787 billion economic stimulus package enacted by the US government The Philippine Stock Exchange. 6 Annual Report 2009 *The figures were collated from 231 out of 246 domestic companies.68 points. particularly of agricultural products.00 percent. The PSEi surged by 1. puts a heavier burden on government’s efforts to manage the fiscal deficit. considering the relatively benign inflation rate and to help sustain economic activity. which grew by 11. which decreased by 6. The local stock market reflected the cautious but growing optimism about a successful recovery. A late surge allowed the benchmark index to hit its highest mark of 3.052.179.Stock Market Performance After suffering a major setback in 2008 amidst the global economic crisis. Inc. The year’s shortfall was aggravated by slower revenue collections. The Philippine peso.9 percent.
37 per barrel on October 21 before finishing the year at US$79.100 2.700 1.9 percent jump from their previous close of US$44.1%.60 per barrel in 2008.700 2. spurred by supply concerns and a declining US dollar. the US Federal Reserve (Fed) announced the purchase of longterm Treasury bonds. The local stock market tracked the resurgence of Wall Street by breaking the 3.047. and another US$100 billion worth of agency debt. Inc.900 2.096.25 points on March 27 OFW remittances in March reach new monthly record high DECEMBER Dubai World seeks to restructure its US$26 billion debt OCTOBER Gold prices reach an all-time high while oil prices record year-long highs PSEi closes the year 63 percent higher than the previous year’s close JUNE Imports record largest year-on-year percentage decline.300 2. announced that it is seeking a sixmonth reprieve from an estimated US$26 billion worth of debt payments.36 per barrel.900 1.4% to record its steepest monthly decline MAY GDP falls to 0. a 77.6% in 2009 from 7.428.100 1. Gold prices traded at the US Commodity Exchange reached new record highs in 2009 and peaked at US$1. recording an increase of 18. Wall Street began picking up the pieces by demonstrating its resiliency and potential to recover from one of the biggest economic crises in history. Dubai World. US crude oil futures traded at the New York Mercantile Exchange (NYMEX) went up to as high as US$81. causing the Dow Jones Industrial Average (DJIA) to plunge by 4.14 points to reach its highest level in 19 months. PSEi reaches 3.3 percent higher than its close the previous year. Aside from purchasing up to US$300 billion in longer-term Treasury securities over a six-month period.8% growth in 3rd quarter Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec The Philippine Stock Exchange. The Fed also maintained its target range for the federal funds rate at zero to 0.000-level Local economy records disappointing 0. 25. crude oil prices slowly worked their way back up in 2009. the Fed planned to purchase an additional US$750 billion of agency mortgage-backed securities.40 per ounce on December 3.000-level on November 11 at 3. Analysts expressed disappointment over the plan’s lack of detail on how the government would purge the financial system of its bad assets. closing at 2.4% in April APRIL The BSP reduces key interest rates for the third time in four months due to easing inflation IMF revises its GDP forecast for the Philippines to a 1 percent contraction AUGUST GDP records slower.500 2.8 percent to finish at 10. After falling to around the US$30 per barrel level towards the end of 2008.2% the previous year PSEi breaks through 2.040. dropping by 37. a move which the institution has not done in four decades. albeit not as pronounced as UAE’s. The news of another impending default sent shockwaves to the stock markets of the United Arab Emirates (UAE). While 2009 generally carried a theme of optimism among investors. On November 25. a governmentowned investment conglomerate which helped engineer Dubai’s economic surge. The DJIA ended 2009 with its best performance in six years. After being sidetracked by the muchpublicized failure of its financial system in 2008. with the DJIA surging to its own 13-month high on the same date.and the financial rescue plan rolled out by the US Treasury Department in February.5% in 2nd quarter SEPTEMBER Inflation rate drops to 0.500 Jan MARCH US government injects US$1 trillion in the economy to stabilize financial markets JANUARY The global economic crisis slows down GDP growth to 4.05 points. Philippine Stock Market Performance in 2009 3.6 percent or 381.99 points on February 10.25 percent to further support economic activity and hasten the improvement of market conditions. albeit better than expected growth of 1. its lowest in 22 years NOVEMBER Dow Jones hits 13-month high. 2009.4% growth in the 1st quarter JULY Moody’s upgrades the country’s credit rating as a result of a stable financial sector Annual Report 2009 7 .20 per ounce at the end of 2009. FEBRUARY Exports in December 2008 plunge by 40. and also had a negative effect on global stocks. To further bolster the US government’s program to revive its economy and spur optimism. Gold eventually settled at US$1. the Dubai World incident that happened towards the end of the year served as a reminder that the road to recovery has not yet been well paved. Figure 1.300 3.217.000-point level.
8 Annual Report 2009 LEVEL- list more companies and securities expand and educate the investor base value and enforce corporate governance standards enhance shareholder value launch new products and services U .partner with government and other stakeholders . The Exchange is guided by the LEVEL UP objectives in achieving its maximum potential as a preferred venue for raising capital and also as an institution that can contribute to the development of the local economy. Specifically. the strategic plan highlights the seven key objectives of the Exchange starting from 2008 until 2012.Highlights of Operations The LEVEL UP Strategic Plan The Exchange continues to implement its LEVEL UP agenda. Inc.upgrade market infrastructure and human resources P . The Philippine Stock Exchange. a fiveyear strategic plan that is focused on improving its operations and performance to be at par with international best practices.
Inc. Table 1. 9 .55 billion recorded the past year.579. Century Peak Metals Holdings Corporation TOTAL INITIAL PRIMARY OFFERING PROCEEDS TOTAL INITIAL SECONDARY OFFERING PROCEEDS TOTAL INITIAL OFFERING PROCEEDS *Listing by way of introduction **Listing price Code RPL Listing Date 03-Sep-09 Offer Price (in Php) 4.122 4. up by 22. Initial Public Offerings in 2009 Company Ripple E-Business International. Total capital raised in 2009 from initial public offerings. conducts the first IPO of the Exchange in 2009. A listing by way of introduction allowed companies to list without the conduct of a public offering prior to initial listing. Top: Department of Agriculture Secretary Arthur Yap graces AgriNurture. (ANI) and Century Peak Metals Holdings Corporation (CPM) listed their shares by way of introduction.010. Primary Offering AgriNurture.25** 1.763.00** The Philippine Stock Exchange. Inc.763.’s listing ceremony.77 billion. Above: Ripple E-Business International.763. The two other companies namely. (RPL) conducted the year’s sole initial public offering and was listed under the Small and Medium Enterprises Board. Inc. Ripple E-Business International. Inc.Capital raising grows 23% in 2009 amid challenging market L .010.579. Inc. Inc.010.14 ANI* CPM* 25-May-09 06-Oct-09 23. stock rights offerings and private placements amounted to P38.List more companies and securities New Listings and Capital Raised The Exchange welcomed three new companies to its roster of listed firms in 2009. Left:Century Peak Metals Holdings Corporation makes its listing debut on the stock exchange.122 NA NA Offer Proceeds (in Php) 20.37 No. Annual Report 2009 The investment landscape changed after the US subprime debacle. AgriNurture.763.14 20. Of Shares Offered 4.14 20. Inc.14 NA NA 20.9 percent from the P31.010. the first listing on the SME Board since 2003.
76 55.266. the Philippine stock market ranked third in value turnover in dollar terms among Asian stock markets and fourth among the 51 global stock exchanges that are members of the World Federation of Exchanges. Select PSE Market Indicators (in PhP billion) MARKET INDICATOR PSE Index (PSEi).87 -98.35 27.93 2. a significant turnaround from the P22.11 billion recorded in 2008.54 572.95 3.37 billion.74 2.49 629.91 71.60 1.13 -13. Due to the impressive rise in trading activity.75 6.83 22.17 48.76 90.52 1.63 0.23 2.88 29. Inc. Total market capitalization.096.06 5.23 19.97 30.79 236 234 2 309 307 2 2006 2. which includes foreign corporations Manulife Financial Corporation (MFC) and Sun Life Financial Inc.81 0. Foreign Trading Market Capitalization Domestic market capitalization at the close of the year bounced back in record fashion from last year’s decline as it went up by 61. Yearend Domestic Foreign No.710. while foreign selling transactions came in at P314. The financials sector had the biggest share of total market capitalization.99 trillion.29 percent increase from the P3.89 48.37 14.17 246 244 2 316 314 2 2009 3.37 percent from 48.28 billion. also improved by 48.352.037.129.03 trillion from P4. Total foreign buying figures amounted to P329.92 billion. Yearend close Total Value Traded (in Php billion) Average Daily Value Traded (in Php billion) Foreign Buying (in Php billion) Foreign Selling (in Php billion) Net Foreign Buying/(Selling) (in Php billion) Total Foreign (in Php billion) Share of Foreign Trading to Total Trading (in percent) Capital Raised (in Php billion) Initial Public Offerings (in Php billion) Additional Listings (in Php billion) Market Capitalization.11 billion.71 0.16) 744.77 0.982.11 329.00 0. of Listed Companies.65 32.53 390.32 348. accounting for 43.15 4.82 0.60 trillion.14 32.92 643.305.13 18. Trading activity picked up in 2009 with total value turnover narrowly missing the P1trillion mark as it surged by 30.15 billion. Average daily turnover also improved to P4. its highest recorded growth.02 38.96 167.97 280.79 244 242 2 314 312 2 2008 1.948.052.00 383.95 29.35 23. a 32.88 183.595.2 percent of the aggregate value as it finished the year with a market capitalization of P2.Table 2. Yearend (in Php billion) Domestic Firms (in Php billion) Foreign Firms (in Php billion) No. which went down to 32.68 994.37 38.19 3.96 57.04 383.64 0.56 206.16 billion net foreign selling figure recorded the previous year. (SLF). Foreign investors were net buyers for the year in the amount of P14.991.02 38.621.80 -17.16 percent to P6.25 5.15 248 246 2 318 316 2 2009 vs 2008 % change 63.818.23 7.84 239 237 2 313 311 2 2007 3.88 51.90 3.00 10 Annual Report 2009 The Philippine Stock Exchange.00 3.07 trillion in 2008.54 22.85 763.08 3.029.46 54. Yearend Domestic Foreign 2005 2.82 3.05 1.71 31.474.48 68.20 7.60 4.977.71 percent.29 -8.173.14 percent to P994.16 61.24 50.61 4.55 1.872.51 -33.33 624.069. The share of foreign investor trades to total market trades.00 30.48 680.57 1. . reflected the apprehension of foreign investors in emerging markets but also highlighted the improved participation of local investors in the market.17 (22. of Listed Issues.11 361.338.28 314.35 percent to P3. Trading Transactions Despite uncertainties still lingering from the aftermath of the global financial crisis. foreign investors began making their way back to the local equities market.09 48.820.63 2.
3 -43.26 151.1 42.0 151.15 50.04 11.1 -37.20 10.1 254.1 % share 8.22 738.85 32.37 8.3 1.6 -60.0 322.65 897.2 44. by 72.78 3.5 1. holding firms sector.08 75.2 0.69 1. and services sector.9 61.73 1.1 -39.Performance of Sector Indices Table 3.2 30.9 234.628.29 11.07 994.8 12.7 percent. The mining and oil sector had the largest turnaround.5 35.04 319.0 66.5 93.1 27.6 115.55 2009 1.13 44.2 0.3 74.3 18.81 -14.918.2 1.07 0.6 percent.64 669.65 39.7 48.1 1.49 25.91 2.1 227.12 355. Energy.02 167.15 6.8 0.46 87.35 4. Index All Shares Financials Industrial Holding Firms Property Services Mining and Oil 2008 1.9 0. Infrastructure & Allied Services Chemicals Diversified Industrials Holding Firms Sector Property Sector Services Sector Media Telecommunications Information Technology Transportation Services Hotel & Leisure Education Diversified Services Mining and Oil Sector Mining Oil SME Total Domestic Issues Domestic Issues Foreign Issues Total Market 2008 405.221. property sector.611.15 21.89 2.6 72. Power & Water Food.0 7.1 percent.0 453.9 4.75 552.5 12.1 0.6 percent.9 360.7 3.474.2 % share 14.62 726.3 10.32 1.143.57 240. Annual Report 2009 11 .51 22.46 35.4 0.11 7.04 29.52 1.991.26 8.57 120.99 456.1 26.0 100.0 0.6 31.75 0.51 8.2 13.63 104.02 994.57 1.92 67.90 Value Traded 2009 % change 79.0 4.0 100.0 0.7 0.1 -18.5 1.8 0. showing their resiliency after the previous year’s setback.67 50.09 17.7 79.46 459.80 0.5 131.48 996.05 2.05 1.93 631. Annual Growth Rate of Sector Indices All PSE sector indices registered gains in 2009. by 46.18 72.7 26.11 8.0 100.145.34 13.07 326.5 0.1 30.8 -84.62 81.991.2 17.0 2008 92.66 372.762.0 3.6 521.4 30.0 1.9 0.59 3.24 38.95 0.0 100.5 0.89 2.20 85.3 46. which improved by 115.89 4.7 -46.87 112.4 27.23 0.196.23 2.4 15.64 632.45 623.8 11.3 8.97 4.01 763.65 763.44 2.9 269.7 141.3 11.23 151.58 39.25 763.90 124.0 The Philippine Stock Exchange.84 % change 60.72 266. Inc. by 79.2 -67.93 3.85 6.26 10.6 30.62 3.029. by 31.474.9 percent.34 3.6 16.3 0. financials sector.93 2.93 590.10 196.7 8.08 994.74 229.1 29.65 12. Beverage & Tobacco Construction.07 0.0 7.2 0.8 139.33 3.9 56.2 1.3 -58.0 1. Domestic Market Capitalization and Trading Value by Sector (in Php billion) Financials Sector Banks Other Financial Institutions Industrial Sector Electricity.49 6.8 13.0 51.0 70.61 179. surging by 234.94 63.0 120. This was followed by the industrial sector.5 25.8 118.02 499.069.9 1.84 41.6 18.39 1.6 84.74 10.0 100.3 94.6 percent.15 89.0 0.77 0.11 33.24 -14.18 14.508.65 0.17 4.45 39.6 281.4 61.77 1.23 Market Capitalization 2009 % change 566.8 23.09 105.4 45.1 Table 4.2 51.95 82.2 0.04 0.23 161.0 0.8 -17.0 -21.076.595.88 40.109.21 187.92 10.43 -3.037.
898. 14 GMA Network. 8 Bank of the Philippine Islands 9 Energy Development (EDC) Corporation 10 First Gen Corporation 11 Filinvest Land. Manila Water Company.144. Code Value Traded (in Php) TEL 84. Inc.933. 4 Ayala Land.950 FGEN 13. Inc.410. 16 Jollibee Foods Corporation 17 Lepanto Consolidated Mining Company 18 Metropolitan Bank & Trust Company 19 Megaworld Corporation 20 Manila Electric Company 21 Manila Water Company.673. Inc.534.650 AGI 13.380. 15 International Container Terminal Services.500 FPH 17. 29 Philippine Long Distance Telephone Company “Common” 30 Universal Robina Corporation .650 RLC 10.162.722.335 EDC 37.150 SMPH 12.315 WEB 10.317.375 The Philippine Stock Exchange. Inc. Banco de Oro Unibank.850 ICT 8. 2009 Market Activity 12 Annual Report 2009 Sector No.475 ALI 24. 28 Philippine Long Distance Telephone Company “Common” 29 Universal Robina Corporation 30 Vista Land & Lifescapes. Inc.379.482. Inc.Table 6. Inc.279.550 MER 42.875 FLI 14.850 MWC 14. Inc.870.072.562.400 BDO 13.416.246.010. 5 Aboitiz Power Corporation 6 Banco de Oro Unibank. 22 The Philippine Stock Exchange. 2009 1 ABS-CBN Broadcasting Corporation 2 Ayala Corporation 3 Aboitiz Equity Ventures. Inc.520 MEG 28.309.764. Inc. Inc. Inc.500 BPC 10.991. SM Investments Corporation Bank of the Philippine Islands Metropolitan Bank & Trust Company Globe Telecom. 7 Bank of the Philippine Islands 8 DMCI Holdings. First Gen Corporation SM Prime Holdings. 5 Ayala Land.872.670 AC 24. 3 Alliance Global Group.079. Inc.242. Inc. 14 GMA Network. 16 Jollibee Foods Corporation 17 Lepanto Consolidated Mining Company 18 Metropolitan Bank & Trust Company 19 Megaworld Corporation 20 Manila Electric Company 21 Manila Water Company.169.336. As of November 3.972.838. Inc.203.460.225 AP 9.215. 12 First Philippine Holdings Corporation 13 Globe Telecom.100 SM 22. Inc. Inc.497.466. Inc. 15 International Container Terminal Services.892. Inc.108. Inc.412.517. 12 First Philippine Holdings Corporation 13 Globe Telecom. Inc. First Philippine Holdings Corporation Filinvest Land. Inc. Benpres Holdings Corporation Century Peak Metals Holdings Corporation Robinsons Land Corporation PhilWeb Corporation Aboitiz Power Corporation Metro Pacific Investments Corporation International Container Terminal Services.006. Alliance Global Group.477. Inc.575 BPI 20. Inc. 6 Aboitiz Power Corporation 7 Banco de Oro Unibank. Top 25 Companies by Value Traded (Regular Market) Table 5. Inc.750 MPI 9.150 GLO 20. Inc. Inc. Inc.874.238.737.950 MBT 20.458. 9 Energy Development (EDC) Corporation 10 First Gen Corporation 11 Filinvest Land. 22 Philex Mining Corporation 23 Rizal Commercial Banking Corporation 24 Robinsons Land Corporation 25 SM Investments Corporation 26 San Miguel Corporation 27 SM Prime Holdings.508. Inc.330. Table 7. PSEi Recomposition Results of Recomposition As of May 4.233. Inc.940 PX 39. 2009 1 Ayala Corporation 2 Aboitiz Equity Ventures. 23 Philex Mining Corporation 24 Robinsons Land Corporation 25 Security Bank Corporation 26 SM Investments Corporation 27 San Miguel Corporation 28 SM Prime Holdings. Inc.239.650 CPM 10. of Issues Actively Traded Gainers Losers Unchanged Financials 35 30 25 4 1 Industrial 76 57 49 7 1 Holding Firms 47 41 35 5 1 Property 44 37 29 9 0 Services 89 68 38 13 17 Mining & Oil 30 30 29 1 0 SME 2 2 0 1 0 Total Number of Issues 318 265 205 40 20 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Company Name Philippine Long Distance Telephone Company “Common” Manila Electric Company Philex Mining Corporation Energy Development (EDC) Corporation Megaworld Corporation Ayala Corporation Ayala Land.344.790. Inc. 4 Alliance Global Group.
82 340.70 0.00 1.36 0.00 288.50 2.00 0. Inc. Inc.00 -37.50 13.0030 3. Inc. Inc. Wellex Industries.00 11.03 -30.0260 6. Inc. MacroAsia Corporation Bogo-Medellin Milling Company. Inc.60 7.50 3. Inc.80 0.80 1. Arthaland Corporation Supercity Realty Development Corporation Aboitiz Transport System (ATSC) Corporation .70 102. Inc.70 0.05 -27.24 285.00 3. Inc.00 1.00 32.74 -19.00 0.29 -13.50 0.1450 0.1000 7.71 -34.00 (in Php) 2008 Close 2.35 -16.00 560.10 30. Inc.24 0.1050 1.70 1.26 9.64 1. Alsons Consolidated Resources. Annual Report 2009 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Issue Atok-Big Wedge Company. Manila Mining Corporation “A” Manila Mining Corporation “B” JG Summit Holdings. Inc.0600 3. Inc. Inc.63 3.00 0.00 260.2050 0.10 2. City & Land Developers.92 3. “B” PhilWeb Corporation PNOC Exploration Corporation “A” Paxys. “A” Macondray Plastics.00 6.50 25.00 272.240. Inc.90 2.56 -14. Philippine Estates Corporation Aboitiz Transport System (ATSC) Corporation Makati Finance Corporation Omico Corporation .22 % change -61.72 0. Top 25 Price Losers Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Issue Forum Pacific. Inc.40 3.54 -61. Code AB MRAY LIB ABB WEB PEC PAX PRIM ACR NI FED CPM LC PX AAI MA MAB JGS SEVN CAT DMC RLT BPC MRC PGPI (in Php) 2009 Close 101.1000 0.99 0.50 0. Inc. Liberty Telecoms Holdings.97 0.50 0.00 -22.00 12.00 300. Philippine Realty & Holdings Corporation Benpres Holdings Corporation MRC Allied Industries.1000 28.00 373.50 37.25 9. Inc.04 260.00 18.00 -28.00 -40.00 2. Inc. Information Capital Technology Ventures.18 1. NiHAO Mineral Resources International.00 1. Inc.48 The Philippine Stock Exchange.74 -39.00 9.40 2.20 0. Acesite (Philippines) Hotel Corporation Premiere Entertainment Philippines.00 333.08 (in Php) 2008 Close 0. Century Peak Metals Holdings Corporation Lepanto Consolidated Mining Company “A” Philex Mining Corporation Active Alliance.Table 8. Atok-Big Wedge Company. Inc.80 1.30 0.Warrants Primex Corporation Imperial Resources.00 4.1200 34. F & J Prince Holdings Corporation “A” Code FPI DHC PEP ALCO SRDC ATSP ECP ICTV RCI WIN PHES ATS MFIN OMW2 PRMX IMP PO CHTR UW FMIC RPL LAND MAC BMM FJP (in Php) 2009 Close 0.0065 0.50 % change 4.75 0.00 920. “A” Polar Property Holdings Corporation Chinatrust (Philippines) Commercial Bank Corporation Uniwide Holdings.2000 10.82 260. Inc.1600 0. Inc. Prime Media Holdings.98 260.1500 1.0260 0.39 -38.88 266.74 3. Prime Gaming Philippines.709.16 300.00 388.250.00 2.27 1.25 11.52 2.18 -15. Federal Resources Investment Group.0040 4.71 502.33 333. Roxas & Company.67 -16.00 13 . Inc.50 0.1000 3.50 1.50 1.14 -35. Inc. Philippine Seven Corporation “Common” Central Azucarera de Tarlac.95 2.25 0.00 58.51 -11.65 0.67 -16. Top 25 Price Gainers Table 9.68 460.50 1.60 0.80 2.82 2.00 0.46 -50. Inc.32 2.33 308. DMCI Holdings.00 400.0065 1.50 0.29 -14.50 2.44 0.20 11.55 -31. First Metro Investment Corporation Ripple E-Business International.24 2.50 3.36 27.90 1.Preferred EasyCall Communications Philippines. Inc.50 1.22 4.80 1.26 16.00 300.62 -21.69 -25. Inc.
000.816.062 30. First Philippine Holdings Corporation Benpres Holdings Corporation Philippine Long Distance Telephone Company “Common” Metro Pacific Investments Corporation Ayala Corporation Ayala Land.083.649 35.00 78.970. Inc.535 48.615 43. Inc.997.688. GEOGRACE Resources Philippines.261. Code MFC SLF TEL MER SM SMC BPI AC SMB AL SMPH GLO PLT BDO EDC MBT PX AP JFC MPI AEV PCOR PTC JGS ICT Market Capitalization (in Php) 1. Inc. PhilWeb Corporation Alliance Global Group.599 67.237. Inc.00 .461.582.585.283.912.997 36.820 56. International Container Terminal Services.00 63. of Trades) 108.592.907 42. Inc.20 43.936.476.464.508 44.00 145.737 47.040.376.080. Inc. Top 25 Companies by Market Capitalization (Common Shares) Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Company Name Manulife Financial Corporation Sun Life Financial Inc. Inc.00 149.425.256.00 91.440 32.627. Metropolitan Bank & Trust Company Lepanto Consolidated Mining Company Century Peak Metals Holdings Corporation Globe Telecom.125. Code MEG MER EDC PX FLI FGEN PAX FPH BPC TEL MPI AC ALI NI WEB AGI GEO MBT LC CPM GLO BPI MWC PNB VLL Trading Frequency (No.00 88.50 155. Petron Corporation Philippine Trust Company JG Summit Holdings. Table 11. Ayala Land.10 45. Philippine Long Distance Telephone Company “Common” Manila Electric Company SM Investments Corporation San Miguel Corporation Bank of the Philippine Islands Ayala Corporation San Miguel Brewery.796 41. NiHAO Mineral Resources International. Inc.640.265 58.00 49. Inc.600.00 81.403.327. First Gen Corporation Paxys.668 28. Energy Development (EDC) Corporation Metropolitan Bank & Trust Company Philex Mining Corporation Aboitiz Power Corporation Jollibee Foods Corporation Metro Pacific Investments Corporation Aboitiz Equity Ventures.219.890.669 78.834.Table 10.838. Inc.386 46.00 198.481. Philippine National Bank Vista Land & Lifescapes.217.120.00 50. SM Prime Holdings.651. Inc.389.466 29.664.861.645.599 25.750. Bank of the Philippine Islands Manila Water Company.815.696.096.00 231.844. Inc. Inc.25 130.893 35. Inc. Inc.822.151.726. Top 25 Companies by Trading Frequency (Regular Market) 14 Annual Report 2009 Rank 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Company Name Megaworld Corporation Manila Electric Company Energy Development (EDC) Corporation Philex Mining Corporation Filinvest Land.487.480.745.327. Globe Telecom.846.250.265 31. Inc.175 31.968 25.545.250.053.00 98.408. Inc.288.037.000.083.240.744.359 The Philippine Stock Exchange.545.20 121.897.766 100.00 44.315.20 56.971.936.000.350.918 47.350.00 157. Inc.00 489.80 49.110.00 150. Pilipino Telephone Corporation Banco de Oro Unibank.777.00 686.000.833.
as a self-regulatory organization. in its regular meeting on March 11. The Rules provide that as a condition for the A company listed by way of introduction need not raise capital upon listing. The PSE Board. or any securities with the Philippine Depository other entity duly authorized by the SEC. The amended rule took effect on April 6. the Exchange may (a) suspend the trading of the company’s securities. 2009. The amendments are in line with the Capital Market Development Plan of the Philippines and the international best practices on the issuance and transfer of securities. The Rules are applicable to applicant companies for initial listing starting July 1. 2009. approved the revised Listing Agreement (the “Agreement”). More importantly. the Rules shall apply starting July 1. the objective behind the changes is for the Exchange. if the company is legally mandated to publicly offer its securities. For existing listed companies. The company must also submit proof that it is not considered a “closely-held corporation” as such term is defined under Section 127 (B) of the National Internal Revenue Code of 1997. The extend period upon request by the company at least 60 calendar days prior to the lapse of the one-year period. Part A. the Exchange requires the company to conduct the public offering of its securities and attain the required Exchange minimum may public the ownership one-year within one year from its listing. The Philippine Stock Exchange. without any jumbo or mother certificate in compliance with the requirements of Section 43 of the Securities Regulation Code. 2008. Revised Listing Agreement Annual Report 2009 15 . particularly the entities registered with the Board of Investments and the Philippine Economic Zone Authority as well as congressional franchise grantees. 2009. The changes to the existing listing agreement aim to address the regulatory issues encountered by the Exchange. under the revised rule. Inc. listing and trading of the securities of an applicant company. However. The amended listing rule would encourage these corporations. (b) double its annual listing maintenance fees or impose such other sanctions as the Exchange may see fit. to maintain and preserve an efficient. 2010. to list their securities on the Exchange. and/or (c) require it to buy back its securities and delist the company. the amendments to the requirements on lodgment of securities under section 16. Revised Rule on Lodgment of Securities The SEC approved on February 26. fair and orderly market for the protection of the public interest.Revised Rules on Listing by Way of Introduction On September 26. The company must secure from the relevant government agency a clearance for its listing by way of introduction. the applicant company shall electronically lodge its registered and Trust Corporation (PDTC). If the company fails to publicly offer its securities within the prescribed period. Article III of the Revised Listing Rules (the “Rules”). the Exchange obtained the approval of the Securities and Exchange Commission (SEC) for the amended listing rule allowing the listing by way of introduction of corporations mandated by law to publicly offer their securities. 2009.
762 respectively based on event registration sheets.750 1.138 115 575 96 125 625 127 635 153 764 2. minimal resources and capitalizing primarily on partnerships with “multiplier” organizations.710 1.050 75 375 The Exchange signed in January a Memorandum of Agreement (MOA) with the Department of Education which paved the way for the successful integration of a capital markets segment in the high school curriculum.535 10.730 10.348 154 2. A successful pilot testing ensued on November 9.610 1.325 203 1.PSE makes significant inroads in market education.176 12.348 1.013 192 959 270 1.836 2. with a total of 337 market education events and projects.188 265 1. particularly in the 4th year economics subject.779 2. 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 OFs Professionals/Businessmen/Market Participants Students/Academe .42 million public and 1. where records show coverage of 33. This program will target 10.925 8.775 2. the Exchange directly reached 31 percent more individuals comparing 2009 with 2008.415 248 1. 2009 in Rizal High School in Pasig City. the enhanced 4th year economics subject will be ready for implementation and may already form part of the secondary school curriculum by school year 2010-2011. The chart (see figure no.066 public (5.816 16 Annual Report 2009 Integration of Capital Markets Topics in High School Curriculum 3.12 8 8.359) and private (4. A course outline is being drafted by the Exchange with the Bangko Sentral ng Pilipinas (BSP) and the Bankers’ Association of the Philippines which shall be presented to the Commission on Higher Education (CHED) in 2010.569 3. By harnessing limited manpower.099 900 8. inks strategic partnerships E . Reach of OF Campaign and Target Sector Program 14.000 3. Inc. 2) shows that more professionals and overseas Filipinos (OF) were reached in 2009 due to an enhanced OF campaign and target sector program. Figure 2. the biggest public high school in the Philippines.Expand and educate the investor base The Philippine Stock Exchange.238 371 5.465 Institutionalization of “Savings & Investments” Subject in College General Education The Exchange laid the groundwork to institutionalize a “Savings and Investments” subject in the college general education in 2009. After another pilot testing in a private high school and minimal revisions to a “Teacher’s Guide” completed in September.76 million (5.496 6. 481 1.34 million private) students. Market Education The Exchange’s market education activities showed a marked increase in 2009.707) high schools nationwide or approximately 6.831 and 25. The Exchange and the Department of Education sign a Memorandum of Agreement for the integration of a capital markets topics in the high school curriculum.686 3.
2. 3. to be completed within three or four trimesters. A summit conference for some 200 finance faculty from various universities and colleges was jointly organized by the Exchange. The Exchange has completed three runs of the PSE CSSC in 2009 plus one batch ongoing until 2010. Inc. Faculty development is also a big component of this program. Ateneo CCE 3rd Batch (August to December) – 21 students. regulations. The PSE CSSC is comprised of 12 modules (with two pre-requisite subjects) and covers an intensive learning process to ensure the participant’s understanding and appreciation of the course. valuation techniques. On February 6. PSE Certified Securities Specialist Course The PSE CSSC is envisioned to provide continuing education for market participants. Continuous expansion of faculty pool and partnerships with technology and information providers Thomson Reuters. a reference textbook is also being developed by the University of the Philippines College of Business Administration under a donation agreement with the Exchange. The program is targeted for pilot testing in 2010. Academic performance is measured through written examinations. A concept paper was then put together by the Exchange and the Lyceum of the Philippines University – Manila. The improved curriculum now includes additional course segments and hours and student activities such as on-site brokerage visits and observation sessions. Partnerships with other top universities and colleges such as the University of the Philippines.Implementation of CMO 39 The Exchange continued to implement CHED Memorandum Order (CMO) 39 which institutionalized a revitalized business administration curriculum that includes a “Capital Markets” subject for all financial management students and a “Basic Finance” subject. Institutionalization of MBA Specializing in Capital Markets The Exchange likewise explored the possibility of introducing an MBA program which will put emphasis on capital markets by initiating a survey to ascertain the appetite for such a program among market participants. 2009 at the AIM Conference Center. the PSE and Ateneo CCE likewise completed a curriculum review that aims to calibrate course modules to the ideal competencies of a successful graduate. Corporate and provincial runs with top private corporations and government financial institutions are also part of the future plans for this program. ethics. Graduate School of Business in September 2009 proposing an MBA with a 48-unit course conducted on weekends. distribute instructional materials and provide useful information in support of the implementation of the capital markets subject. in the country. an assemblage of 12 professional and academic organizations. To ensure its successful implementation. PSE issues promotional materials for the Certified Securities Specialist Course. It was developed by the Exchange and a team of academicians and market practitioners. Launched in December 2006. The program is proposed to give special credits to market participants with a considerable number of working years in the stock market and also to graduates of the PSE Certified Securities Specialist Course (CSSC). Incidentally. analysis. iAcademy 2nd Batch (November 2009 to March 2010) – 18 students Continuous course improvements have been undertaken jointly by the PSE and Ateneo CCE such as the installation of a fully automated testing center. and Technistock were also pursued to further enhance the course. The Philippine Stock Exchange. Annual Report 2009 17 . De La Salle University and the University of Asia and the Pacific are being pursued. and market dynamics. Ateneo Center for Continuing Education (CCE) 2nd Batch (April to August) – 32 students. The proposed venue for classes is the Lyceum campus in Makati City. management. efficient and quick publication of test results. and 4. the PSE CSSC is a 124-hour certification course on financial market theories. on February 12. which has ample discussions about the stock market for business administration students. and New Trading System seminars. the Exchange and CHED conducted monitoring and consultation visits in 15 universities and colleges nationwide in 2009. Below is the breakdown: 1. Global City Innovative College (GCIC) 2nd Batch (March to August) – 15 students. Bloomberg. CHED and the Business Education Industry Linkage. and a standard method of administering certification exams for the course. The summit aimed to conduct workshops. A total of 86 professionals and fresh graduates enrolled. This new facility allows the build-up of an extensive test bank. 2009.
The contest aimed to recognize theses written by college students and in due course encourage them to conduct more research and studies about the capital markets.434 participants in the minor competitions. The business plan found an opportunity to address the growing housing needs of the urban population in the country and the problem of deforestation caused by the demand for construction wood through the development of a “zero wood” material—cement fiber boards made of dayami or rice stalks. The contest aimed to recognize outstanding business plans written by college students and young entrepreneurs and also encourage them to include capital markets investments and capital-raising as part of their corporate financial planning. Stock Trading Tournaments Stock Trading Tournaments (STT) are three. PSE-Smartlink-PTC Future seafarers. 2009 in Philippine Transmaritime Corp. 2009 in Intramuros Manila (300 participants) e. midshipmen in the cities of Surigao del Norte. FibreTech Inc. the Exchange conducted the Best Business Plan Competition in partnership with the Junior Chamber International Manila. seafarers.” which was open only to current master of business administration students from various colleges and universities nationwide. cadets. and Misamis Oriental on August 25-27.Overseas Filipino Program The Exchange conducted the following seminars for land-based workers. valuation techniques and adherence to trading rules among others. Inc. and the Philippine Council of Deans and Educators in Business (PCDEB). October 10. This contest drew 46 participants. Briefing for Alberta (Canada) Energy Manpower Agency on May 22. was another major tournament. Pasig City. learn about the various markets. 2009 at the Cuneta Astrodome (7. PSE-Smartlink Love Ko Si Misis Super Caravan on: a.000 participants) 2. It aimed to provide participants with hands-on experience in stock trading where they may apply financial theories. 2009 in Stolt Nielsen Makati Office (150 participants) b. science and design majors from the Ateneo de Manila University under “FibreTech Inc. 2009 in Cebu City (200 participants) 5. 4. involving over 1. A nationwide tournament was also launched jointly with the Manila Times on May 21. Council of Economics Educators. (PTC) Makati Office (200 participants) c. The quiz contest was jointly undertaken with partner institutions such as the Philippine Council of Economics Students. 2009 in Cavite (100 participants) d. 2009.to six-month long individual or team competitions open to all students of state universities and colleges. respectively. and their Philippine-based beneficiaries as it stepped up its campaign for OF workers: 1. . 2009 at the PSE Centre Trading Floor in Tektite Towers. private higher education institutions and local universities and colleges and other organizations or institutions operating in the Philippines. Another major tournament was the PSE-Philippine Daily Inquirer Market Rider Challenge. September 19. 2009 in partnership with the Philippine Association of Collegiate Schools of Business (PACSB). Stock Trading Tournament Participation 2240 2250 31 1620 27 1515 1230 875 14 12 700 9 300 0 1 500 800 15 18 Annual Report 2009 The Philippine Stock Exchange. The “PSE-CitisecOnline MBA Challenge. clinched the first prize due to its proposed “green building materials” that discusses the development of cement fiber boards out of plant fiber. 2009 at BSP Complex (80 participants) Figure 3. The business plan. which mustered 120 participants. the Junior Philippine Economics Society and the National Broadcasting Network (NBN 4). wishes to achieve sustainable urban housing and forestry development in the Philippines by building stable homes for the Filipinos through agro-waste innovation. 2009 entitled “The PSE-Manila Times Equity Challenge. By forging winning partnerships with local government units and rice farmers. Best Business Plan Competition On June 15. 2009 (600 participants) Best Thesis Competition The Best Thesis Competition was likewise launched on December 4. Promotional Competitions: National Economics & Capital Markets Quiz Competition The Exchange also conducted the first ever nationwide Economics & Capital Markets Quiz Competition on December 4. The first prize went to the De La Salle University Economics Organization Team while the second and third prizes went to the University of the Philippines (UP) Economics Towards Consciousness Team and the UP Economics Society Team. practice investment strategies. 650 420 2003 2004 2005 2006 2007 2008 2009 The PSE with The Philippine Council of Economic Students and The Junior Philippine Economics Society hold the First Capital Markets Quiz Competition.” which drew 650 participants. written by business. with 20 university.”. Agusan del Sur.and college-based economics and finance student organizations from all over the Philippines participating. A total of 28 STTs were launched in 2009. November 21. The PSE-BSP Financial Literacy Campaign on July 1. September 26. 2009 at PSE Ayala 3. PSE-Smartlink Regional Maritime Symposium on March 12. August 8.
Capital Markets Institute of the Philippines. October 7 6. 12. January 27. February 25 11. the Exchange also carried out a program specifically meant for local institutions with investible funds. January 15 2. 2009 at La Majarica Hotel (200 participants) Baguio Roadshow on September 3. 2009 with around 200 students in attendance. Unionbank. 4. The Exchange partnered with Ferrier Hodgson. Quarterly briefings were also conducted for four different industries: 1. 3. January 29. 2009 (200 participants) Quezon City Rotary Clubs on December 10. 3. 2009 All briefings were conducted at the PSE Tektite trading floor with a total attendance of 493 market participants. A short course primer was likewise conducted exclusively for Economics students of the University of Santo Tomas College of Commerce on September 22. 2009 (40 participants) Financial consultants (members of International Association of Registered Financial Consultants) on March 4. The Mutual Fund Management Company of the Philippines. 9. January 28. May 12 9. 2009 (20 participants) Presidential Security Group officers on December 8. 2009 (15 participantts) Insurance agents of Philam Life on August 18. 11. Rosa (120 participants) Cebu Roadshow on June 22. The Philippine Stock Exchange. 2009 International Accounting Standards and Accounting Industry Briefing. 2. 7. 2009 (20 institutions) Carmelites on November 6. 2.29 5. 2. 2009 (25 participants) Lawyers on November 4. World Events. GSIS Investment Group on January 29. 4. 18. Philippine Navy Officers on June 5 and November 10. June 25. Training Center. 2009 Insurance Industry Briefing. March 26. 11. November 26. 8. stock market seminars were also conducted by the Exchange for the following: 1. June 30 and July 1 . which involved more than 500 participants broken down as follows: Laguna Roadshow on March 27. 4. 3. Trading participants with branch offices in roadshow destinations also conducted marketing activities and consultations sessions with prospective investors during the roadshows. 5. July 9. 3. and 25. December 7. The Pinnacle Group. March 19 – 20 10. Absolute Traders. 2009 at El Cielito Inn. September 29. Tsupitero.Impact Seminars: Short Course on Stock Market Investing The Exchange conducted a nine-hour intensive short course in partnership with GCIC on June 15-18. 2009 (25 participants) Members of the Junior Chamber International-Manila on October 24. 2009 Media Industry Briefing. 2009 (50 participants) IT engineers of Hewlett-Packard on August 12. 10. 2009 (30 and 20 participants respectively) Call Center Professionals of StarTek on July 28. 2. September 23. Local Roadshows 1. Seminars for Local Institutions Aside from retail accounts. 4. 2009 (60 participants) Insurance agents of Sun Life on May 8. Council of Economics Educators. Association of Securities Analysts of the Philippines 4. 6. 2009 at the Waterfront Hotel in Cebu City (100 participants) Tarlac Roadshow on September 1. Analysts-Equities Traders. 2009 at City Travel Hotel (75 participants) Special Seminars for Target Sectors Targeting specific investor grade professionals. The following seminars were conducted: 1. the Exchange conducted four major local roadshows. September 11. 2009 (25 participants) Members of the Chamber of Real Estate Brokers & Agents on August 8. 2009 (11 participants) Joint Projects with Trading Participants & Interest Groups A total of 19 seminars were successfully conducted by the Exchange in partnership with various market related organizations such as the: 1. PSE-BSP hold Mid Year Economic Briefing. Industry Briefings Annual Report 2009 19 . The PSE Foundation and the Philippine Daily Inquirer for these roadshows. May 26 . Sta. 2009 (20 participants) Metro Manila cooperatives on May 26. November 19 7. 2009 (25 participants) Insurance agents of Manulife on April 7 and August 12. Inc.com.087 prospective investors.2 8. 2009 (13 participants) The seminars were attended by high net worth individuals and businessmen. About 15 prospective investors enrolled. Export Industry Briefing. March 10 and March 11 These various events and seminars were attended by 1. 2009 (40 Metro Manilabased cooperatives) Luzon-based microfinance institutions on August 20. For 2009. CFA Society of the Philippines. December 14 3. 2009.
(NBN 4) to promote the Exchange’s initiatives and to disseminate information about the stock market to the investing public. Inc. notwithstanding the thousands of runners. Financial Executives Institute of the Philippines (FINEX). Iloilo Business Club (IBC). Chamber of Mines of the Philippines (COMP). 2009. 2009. The primer. The annual run was held last January 18. By the end of 2009.PSE Bull Run ‘09 The PSE Bull Run is an annual fun run to promote both health and stock market consciousness among Filipinos. Inc. “The Philippine Stock Exchange (5 Part Series)” . “Listing By Way of Introduction” . Bacolod Business Club. Cebu Furniture Industries Foundation..5 percent increase from the previous year’s Bull Run. investor rights. Department of Trade and Industry • PSE-COL launch the joint investor primer. NBN4 officials ring the opening bell prior to the MOA Signing with the PSE. “Disclosure Rules (4-Part Series)”. The PSE kicks off its Bull Run: Takbo Para sa Ekonomiya. PSE-COL Investor Primer The Exchange successfully launched the PSE Primer entitled. The event draws thousands of running enthusiasts. The following seminars. and interviews with the CEOs and chairpersons of publicly listed firms as well as Exchange roadshows and seminars. (COL). June 25. Federation of Filipino-Chinese Chambers of Commerce and Industry (FFCCCI). “BOARD OF INVESTMENTS ORIENTATION SEMINAR” This provided a firsthand glimpse of a rich reservoir of candidates for eventual public listing. corporations. “What Are the Advantages of Going Public?” . Inc. “The Responsibilities of Publicly Listed Firms” .” Among the key topics that have been shown in the segments were: “Why Do Private Companies Go Public?” . and guidelines. Oro Chamber. 2009 with the Philippine government’s television station. the National Broadcasting Network of the People’s Television Network. Cebu Business Club. universities. Marketing Services The Exchange signed a Memorandum of Agreement (MOA) on April 29. which was developed in partnership with CitisecOnline. institutions and other organizations. The huge turnout of participants. “What is an Initial Public Offering?” . . and the Investment Houses Association of the Philippines. and prominent personalities from government. Inc. forums and briefings were conducted by the Exchange with regards to listing and going public: Board of Investments. GenSan Chamber of Commerce and Industries. the Exchange successfully held joint forums with the Business Processing Association of the Philippines (BPAP). 20 Annual Report 2009 The Philippine Stock Exchange.700 registered runners. contains topics on how to invest in the stock market. Exchange Tours Tours of the Exchange premises in Tektite and Ayala were conducted for about 190 groups ranging from foreign and local colleges. accounted for a 17.com. 2009 with about 4. “Building Wealth with Stocks: A Basic Guide to Investing in the Philippine Stock Market” on December 4. and the diplomatic and business communities. The MOA allowed NBN 4 to show the PSE’s realtime ticker tape daily and to feature key PSE activities thrice a week (ex-weekend) from 11 AM to 12 noon on the television show “Money Matters” in a five minute segment called the “PSE Report. sports celebrities.
understanding financial markets. which counted Bangko Sentral ng Pilipinas Deputy Governor Diwa Guinigundo. the Hon. Inc. for an economic forum. 2009. fundamental Atty. “STAYING AHEAD OF THE MARKET” The talk allowed PSE officers and staff to gain knowledge on trend watching. This time it was the financial sector’s turn to learn from the mining sector and led to the re-acquaintance. Inc. and reeducating the local banks about the mining industry. Philippine Export-Import Credit Agency (PhilEXIM). Listing Anniversaries Annual Report 2009 analysis. Inc. Philippine Stock Exchange. UBS AG. August 6. 2009 Federation of Filipino-Chinese Chambers of Commerce and Industry. • April 17. “ALTERNATIVE FUNDING . Inc.AN ECONOMIC FORUM” The briefing. 2009. the Korea Exchange. Chamber of Mines of the Philippines • January 20-21. greater appreciation. “OPPORTUNITIES DURING A CRISIS . raising equity. commodity prices. • December 10. Albay. The Philippine Stock Exchange. 21 . Inc. 2009 • Manulife Financial Corporation’s 10th Listing Anniversary.Cebu Furniture Industry Foundation. Standard Chartered Bank.FINANCING THROUGH THE EQUITIES MARKET” This is the first of a series of forums to be conducted with the Cebu Furniture Industry Foundation. hedging. Economic Advisor and Governor of Manulife Financial Corporation celebrates its 10th listing anniversary at PSE Ayala. such as borrowing funds from the banks. particularly to the experience of the world’s number one derivatives market. • February 26-27. on behalf of the PSE. Korea Exchange. Economic Counsellor Wu Zheng Ping of the Embassy of the People’s Republic of China. PSE partners with the Federation of Filipino-Chinese Chamber of Commerce and Industry. Jose Salceda. • February 24. technical analysis 101 and the current economic picture. the International Finance Corporation. and eventual re-entry by the banks into the mining industry. Inc. • July 29. October 1. Philex Mining Corporation. Inc. The seminar created the needed awareness and understanding that funds could be raised through the Exchange so that this particular export sector need not rely on the traditional method of financing. and Aon Risk Services were gathered in a two-day forum that tackled points of interest of the mining sector regarding financing. West Landesbank. structured finance. Francis Lim receives a plaque of appreciation from the Cebu Furniture Industry Foundation. “THE DERIVATIVES MARKET AND RISK MANAGEMENT SYSTEMS FORUM” The forum exposed key PSE officers and staff to derivatives. Ernst & Young. and First Metro Investment Corporation President Francisco Sebastian as speakers. 2009. BDO Capital. “FORWARD THINKING: FUNDING AND FINANCING OPTIONS DURING CHALLENGING TIMES” Resource speakers from Deutsche Bank AG. as companies adopted a general austere attitude brought about by the recent financial crisis. sovereign guarantees. Hongkong Shanghai Banking Corporation. First Metro Investment Corporation. 2009. addressed the issues and concerns of the Filipino-Chinese business community brought about by the global financial crisis. Inc. Two companies availed of the recognition and fanfare sponsored by the Exchange on listing anniversaries. the Hon. KPMG. Inc. They were: • PetroEnergy Resources Corporation’s 5th Listing Anniversary. 2009. 2009. “BRIDGING THE KNOWLEDGE GAP BETWEEN THE MINING INDUSTRY AND THE FINANCIAL SECTOR” This forum continued the January undertaking.
5 percent of these retail investors were based in Metro Manila while another significant 34. Professionals and self-employed individuals comprised 36. Meanwhile. almost half or 43.394 accounts. online trades accounted for almost 20. the survey results which were released in 2009 revealed that there were 444.2% The Exchange. while investors aged 30 to 44 comprised 31. age group.4 percent and 34.680 total client accounts.8 percent ratio of active non-online accounts to total non-online accounts. profession. an annual study introduced in 2008.000 64. The PSE Weekly Market Watch provides information on the top gainers and losers on a weekly basis. . and local or foreign. which decreased by 6. was further enhanced in 2009 to take a more vivid snapshot of the type of investors participating in the Philippine stock market. Of the total 19.4 percent were in Luzon. while the PSE Quarterly Top 50 publishes the top performing companies in terms of income.039 or 22. Based on 2008 data. In 2008.7% Stock Market Investor Profile The Stock Market Investor Profile. More than half or 61. However. The PSE Quarterly Dividend Report provides a summary of cash dividend declarations of listed companies. P500. The survey gathered information on the gender. Figure 4.the weekly and monthly market reports. returns on assets and equity. the Exchange launched two new reports that could be accessed free of charge on the website: the “Stock Market Investor Profile” and the “PSE Quarterly Dividend Report”. almost two-thirds of investors earn less than P500. while those earning between P500. in terms of volume. Based on annual income.0 percent of total accounts at the Exchange. the Exchange also embarked on a new publication that addresses the need for dividend information of investors who put a premium on dividend payment history in making their investment decisions.PSE Publications The Exchange continues to provide investors with valuable and up-to-date market facts and figures through its regular publications .201 were classified as institutional accounts or accounts owned by corporations. and other key corporate financial information.5 percent. The report also contains the dividend history of a company in the past three years to give investors a better idea on the consistency of dividend payments of various listed companies. active accounts tallied at 98. Of the total accounts.0 percent of the total number of accounts.000 to P1 million 15. also conducted for the first time a retail investor survey. Profile of Retail Investors by Income Less Than P500. which may be accessed on the PSE website.479 were considered retail accounts or individual accounts while 4.9 percent from the previous year’s total of 105.000 annually. 93. The report ranks dividend declaring-companies based on their dividend yield within a four-quarter trailing period.8 percent of retail investors.8 percent of retail investors. with the cooperation of the trading participants. Local accounts comprised 99. The Exchange also provides free and processed information to guide the investing public in their decisions through the PSE Weekly Market Watch and the PSE Quarterly Top 50.3 percent of investors were aged 45 to 59. In 2009. and location of retail investors.1 percent of retail investors. income. Those earning more than P1 million and above comprised one-fifth of retail investors.1 percent from the previous year’s total of 435.3 percent or 19.1% Above P1 million 20. Inc. up by 2.000 and P1 million comprised 15. PSE Quarterly Dividend Report In 2009.358 accounts. the number of online trading accounts increased by 8.0 percent of the total trades in the market. The study also includes data on online trading as well as profiles of online and retail investors. 95. Online accounts represent only 4. and the PSE Fact Book.246 online accounts. The investor profile also provides more in-depth information on online investors.0 percent are active. Investor accounts are classified into retail or institutional. The key findings of the survey showed that in terms of age. which includes ex-dividend. much higher than the 18. 22 Annual Report 2009 The Philippine Stock Exchange. record and payment dates.7 percent or 425.3 percent of total stock market accounts. revenues. price performance.
through its Corporate Governance Committee. The Task Force has been working on a “Survey of Corporate Governance Systems. Enterprise Risk Management (ERM) and controls. It covers matters such as board attendance. The Exchange’s score likewise improved to 87 percent in 2009 from 73 percent in the previous year. Operations Manual The Exchange is now in the process of documenting and updating its systems and processes.Value and enforce corporate governance standards Corporate Governance The year 2009 marked the second year of the Exchange’s Corporate Governance Improvement Program (CGIP). The PSE Board. which. were collated by the Chief Risk Officer (CRO) and submitted to the Management Committee. All departments identified key activities and determined the risks attendant to such activities. together with the Tokyo Stock Exchange. stakeholder engagement. The CG Task Force was established to provide a mechanism to discuss and help address the current and emerging CG issues of member exchanges. Launched in 2007. Board structure and functioning Regional Benchmarking The Exchange. To further improve the identification and monitoring of its risks. the CGIP is a multi-year development initiative that is aimed at improving and strengthening the Exchange’s internal governance system. together with the departmentproposed risk management approach for each risk area. rationalize processes and introduce efficiencies. was elected to lead the Asian and Oceanian Stock Exchanges Federation (AOSEF) Task Force on Corporate Governance during its general membership meeting in April 2009. or any other matters that the PSE Board may deem necessary. access to and working relationship with senior management. performance management. The Protocol is a document that essentially outlines the practices that the board directors commit to following. were reported to the Corporate Governance Committee of the Board. sets up investor protection fund V . This initiative to revise the operations manual is expected to provide business continuity. time commitment to board matters and committee assignments. the Exchange has improved its ranking in the annual Institute of Corporate Directors (ICD) Corporate Governance Scorecard to 25th from 37th in 2008. This meeting was also an excellent platform for the Exchange to benchmark its CG programs against its peer exchanges. The Philippine Stock Exchange. The study report is intended for release during the 2010 AOSEF general membership meeting in Indonesia. and set clear responsibilities and accountabilities in the Exchange. thereby allowing the regular monitoring of risk management activities at the department level as well as the PSE’s risk profile at the enterprise level. under the PSE ERM framework. The following are the accomplishments for the year: The Exchange intends to further improve and strengthen its risk management system by engaging the services of an advisory firm in 2010. CG Scorecard Out of 169 companies in 2009. Board structure and functioning. the Exchange also developed a “PSE Risk Management Dash Board” which is a computer-based program that enables all PSE departments to upload their risk maps and strategies onto the PSE intranet. All the departments’ risk maps. transparency and disclosure. regional benchmarking. is evaluating for adoption the PSE Board Protocol. This system is targeted for full roll out in 2010. and special CG projects. Enterprise Risk Management (ERM) and Controls Risk Management The Exchange implemented its ERM program following the framework it developed and adopted in 2008. as well as building trust and confidence in the Exchange. constitutes the Risk Management Group (RMG).Exchange firms up CG reforms. Annual Report 2009 23 . They were then made to develop a “risk map” by plotting their assessment of the impact of the risks on their operations as well as the likelihood of occurrence of such risks. The program focuses on seven core development areas namely. executive sessions. Inc. The RMG then reviewed the risks as well as their management strategies and identified the “Top 10 Risks” which in turn. conflicts of interest. Practices and Issues” of its member exchanges. Various departments updated their own Standard Operating Procedures (SOP) in line with developments such as the new trading and accounting systems.
subject to inclusion in the Articles of Incorporation and By-laws of corporations listing on the Maharlika Board. The findings proved that investors value corporate governance practices as well as affirm the Exchange’s direction of promoting good corporate governance practices among listed companies. Gabionza & De Santos Law Offices wrote the study on the legalities of establishing the corporate governance board. The same working draft of the Maharlika Listings and Disclosure Rules was also submitted to different local and international stakeholders. No penalties will be imposed on companies that do not comply with these guidelines. 24 Annual Report 2009 The Philippine Stock Exchange. who is a well-known expert on corporate governance in the Asian region. on the other hand. The working draft of the Maharlika Listings and Disclosure Rules was submitted to Atty. Dr. Investor Rights and Obligations The Exchange has included in its Investor Primer a document compiling the rights and obligations of investors as provided in existing laws. from pre-investment up to termination of the investment. a joint project for an Investor Dialogue Series was organized. (Photo courtesy of ICD) PSE CG Guidelines for Listed Companies The CG Guidelines contain 10 guidelines with specific recommendations that a well-governed publicly-listed company should adopt. In 2009. The document sets forth 10 rights that deal with different aspects of any investment.” this segment shall be reserved for companies that voluntarily subscribe to higher corporate governance standards. As such. However. The Exchange believes that the standards reflected in the guidelines do not only conform to international best practices. This was developed after a careful review and assessment of internationally recognized corporate governance codes and best practices as well as a rigorous local and regional stakeholder engagement process. He concluded that since the Maharlika Board would be contractual. This document is included in the Investor Primer and can be downloaded from the website. The Exchange also engaged two experts to assist in the development of the Maharlika Board. in cooperation with the Asian Corporate Governance Association (ACGA). The guidelines are designed to aid listed companies as they endeavor to improve their corporate governance practices. the requirements of the Maharlika Board would be lawful provided it does not undermine existing laws. The participants during the consultations also made suggestions on topics such as the proxy voting and independent directors. gathering investment companies and fund managers from United States. Villanueva presented good results that support the establishment of the Maharlika Board. a “comply or explain” system shall be implemented. To be named as the “Maharlika Board. International CG experts who have committed to help the Exchange in the project are now reviewing the draft. The comments include their full support to the project as it is seen as innovative and can promote corporate governance among listed companies. Atty.Special Projects The Maharlika Board The Exchange through a grant from the UK government and assistance from the International Finance Corporation (IFC). was engaged to study the correlation of firm valuation and corporate governance. Several consultations were made in Hong Kong. The study of Dr. Europe and Asia. The Exchange conducted at least three working sessions to develop the rules for listing on the Maharlika Board and was fortunate to have two experts from the Global Corporate Governance Forum in Washington DC fly in and provide their expertise in the process. he opined that the rules comply with existing laws. Investor Dialogue Series The ICD has been a long-time institutional partner of the Exchange in its corporate governance initiatives. Atty. Two forums have been held to allow stakeholders to air their concerns. The guidelines are recommendations and not prescriptions. since the objective is to elevate listed companies’ corporate governance practices. companies will be required to report compliance with the guidelines or explain why they could not comply with them. These suggestions are now the subject of further study by the CGO. The aim of the Investor Rights and Obligations is primarily to inform and educate investors that they have legal rights with concomitant obligations in connection with their investments. Stephen Cheung. Villanueva and in his final report. The Dialogue Series is meant to become an avenue where issues can be discussed among the stakeholders and a better relationship among all parties concerned could be established. Inc. Meanwhile. Cesar Villanueva of the Villanueva. . Cheung and Atty. has been working together on a project that will establish a special CG listing segment in the Exchange. It shall be a basis for the benchmarking of practices and the monitoring of progress. The PSE co-hosted the OECD Asian Roundtable in September 2009. proposed several alternatives to allow the corporate governance provisions that should be in place in the Maharlika Board. Villanueva’s study. rules and regulations. but are also relevant and responsive to the Philippine business environment and culture.
2009. A compliance seminar was conducted on April 29. The product of this working session is the Guide on Fighting Abusive Related Party Transactions in Asia . 2009. each sharing their experience on their regulation of related party transactions. 2009 and were published on the Exchange’s website on June 18.The Annual Corporate Governance Scorecard Project is a continuing partnership between the PSE. The increase in the minimum UPC and surety bond requirements aims to further strengthen the financial standing of trading participants while the new Disciplinary Guidelines and Sanctions seek to ensure compliance by trading participants with the relevant rules and securities laws and to improve overall business standards in the securities market. 2009 and P30 million effective December 31. regulators and other international CG bodies. As of December 29. Compensation and Remuneration Committee. and the Exchange rules covered by the audit. Such proposed enhancements are currently for review and approval of the Board.. The Exchange also conducted monthly spot audits of active trading participants to verify their compliance with specific provisions of said laws and rules. the Exchange and to other trading participants of the Exchange and to the Securities Clearing Corporation of the Philippines. The Exchange completed its annual regulatory audit of 66 trading participants of which 19 were found to have fully complied with the relevant provisions of the Securities Regulation Code.a document increasingly being cited by experts. poison pills and change-of-control provisions. and Audit Committee). The PSE cohosted the Organization for Economic Cooperation and Development (OECD) Asian Task Force on Related Party Transactions Roundtable Discussion with representatives from various countries. of Directors and Board Committees (e. All trading participants are expected to fully adopt the new standard chart of accounts by the end of 2010 along with the revised Risk Based Capital Adequacy (RBCA) template which has yet to be finalized and submitted to the SEC for approval. The Exchange continues to enforce its disclosure rules among the listed companies in line with its initiative of promoting good governance and towards a fair and efficient market. The Exchange is in the process of revisiting the Revised Disclosure Rules. The Philippine Stock Exchange. One essential provision of the rule requires each trading participant to pledge its trading right to the extent of its full value to secure the payment of all debts and claims due its clients. Annual Report 2009 25 . The Exchange also obtained the approval from the SEC of the new standard chart of accounts for trading participants to comply with the Philippine Financial Reporting Standards and International Accounting Standards. their commitment to conduct business responsibility by exercising good judgment and applying high ethical standards at all times. The brokers are also required to have at least two independent directors who shall ensure that the principle of good governance is complied with. Moreover. The Exchange.g. through its annual regulatory examination conducted on brokers. and (3) the implementation of Disciplinary Guidelines and Sanctions which classify violations of the amended rules and securities laws based on the severity of the offenses. 2010. 2009. 2009. among others. The proposed revisions are targeted to be elevated to the SEC for approval in 2010. ICD and SEC. The manual shall promulgate the broker’s guidelines or criteria in electing its Board Market Regulation The Exchange’s Amended Market Regulation Rules were approved by the SEC and became effective on November 19. The Exchange continued to improve compliance among trading participants through the conduct of annual compliance seminars for trading participants and the annual publication of commonly violated rules and regulations together with appropriate recommendations to ensure compliance therewith. The Exchange also adopted corporate governance enhancements for the brokers. 2009. The proposed provisions are expected to enhance the role of independent directors as guardians of the rights of shareholders by requiring them to look more closely at related party transactions. The Exchange likewise successfully cohosted the OECD Asian Roundtable on Corporate Governance which was held for the first time in Manila last September 9 -10. The Exchange’s Rules Governing Trading Rights and Trading Participants which superseded the dated Membership Rules of the Exchange were approved by the SEC on May 28. the Exchange continued to intensify its campaign to educate and assist listed companies to strictly comply with the Disclosure Rules. (2) the increase in surety bonds from P5 million to P10 million for brokers and from P1 million to P2 million for dealers effective November 1. 98 trading participants had already executed and submitted their pledge agreements to the Exchange in compliance with the rule provision. Nomination Committee. (1) the increased minimum unimpaired paid-up capital (UPC) requirements for trading participants from P10 million to P20 million effective December 31. Transparency and Disclosure The Exchange proposed enhancements to the Listing and Disclosure Rules to further promote corporate governance among listed companies and also address shareholder protection and abusive related party transactions. This includes the requirement to maintain a Corporate Governance Manual stating. 2009. anti-takeover measures. Inc. Amendments to the rule include among others. its implementing rules and regulations. The aim of the enhancements is to fully inform the investors and allow them to make investment decisions with complete information. These provisions include a comprehensive disclosure of related party transactions. evaluates the latter’s compliance with the established manual. 2009 and a list of commonly violated rules and recommendations was published on the Exchange’s website on May 20. and other transactions that most likely affect the rights of shareholders and the value of their shares.
The proposed rules for the establishment and operation of the “PSE Special Prosecution Fund for Investors” were already approved by the MIB and the Board. The proposed “Rules on Additional Disclosure Obligation of Trading Participants” were already approved by the MIB and endorsed to the Board for approval. The cause of action is based on. Limitations on the use of the Fund: a. 100 percent of investor complaints filed have been resolved by the Exchange. No assistance shall also be granted where the criminal violation and/or the damage/loss to the investor(s) (a) is partly or wholly caused or influenced by acts directly attributable to the investor(s). or relative within the fourth degree of consanguinity or affinity of said director. 2008 for violation of the Exchange rules and securities laws. Pursuant to the mandate of the MIB. The actual civil claim of the investor against the trading participant shall not be less than P200. c. most of which have become final and executory. Creation of the Prosecution Fund 26 Annual Report 2009 The Philippine Stock Exchange.000. Inc. Applicant investor must be a natural person with a direct investment in any of the securities listed on the Exchange. c. its directors. The proposed Arbitration Rules for Investors and Trading Participants were submitted to the MIB and will later be endorsed to the Board for approval. . d. which was patterned after the disclosure rules for broker dealers in other jurisdictions. HK’s trading right was sold pursuant to the Takeover Order issued by the SEC last September 25. The Exchange likewise drafted a rule on the third-party custody of client funds and securities. or other agent of the relevant trading participant. Any grant shall be used only to pay the exclusive and direct fees of the lawyer. its directors. The prosecution fund was created to extend financial assistance in the form of a subsidy for legal costs to claimants of failed trading participants. officers.00. as suggested by the MIB to further enhance investor protection. children. The maximum amount of the grant for each applicant shall not exceed P100. Regulatory Authority or FINRA. d. officers.000. (HK) by public bidding last September 10. The Amended Rules on Public Bidding of the PSE Trading Right and Other Trade-Related Assets will be submitted to the Board for approval. Requirements and qualifications: a. patterned largely after the arbitration rules of the Financial Industry The Exchange revised the existing rules on public bidding to include additional qualification requirements for bidders with the aim of ensuring financial capacity and market integrity of participating bidders. b. in handling the prosecution of the criminal case. Proposed rules regarding trading participants Amendment to the Rules on Public Bidding of the PSE Trading Right The Exchange drafted a rule on additional disclosure obligations of trading participants. Inc. a violation of the Securities Regulation Code and its implementing rules and regulations. and have been appealed to and resolved by the Market Integrity Board (MIB) and/or the SEC. b. or (b) could have been prevented by the exercise of due diligence by the investor(s). and/or agents. or agent. Rules for the Establishment and Operation of the PSE Special Prosecution Fund Purpose: to provide financial assistance to individual stock market investors in filing and prosecuting criminal cases against a trading participant. or its affiliate or subsidiary. and e. in accordance with the suggestion of the MIB to address issues on transparency of brokers’ operations. 2009. The investor will jointly or collectively prosecute the case together with at least four other similarly situated investors. or (b) who is the spouse. officer. The proceeds of the sale will be distributed and allocated on a pro-rata basis to HK’s clients upon the approval of the sale by the PSE Board. The proposed Rules on Custody of Client Funds and Securities will be submitted to the MIB and later endorsed to the Board for approval. the Exchange also drafted a rule for arbitration between investors and trading participants. who must be acceptable to the Exchange. The case to be filed must be a criminal case against a trading participant. How to avail of the financial assistance: File a written request with the Exchange through the Market Regulation Division (MRD).00. It should be noted that the Exchange successfully auctioned the trading right of HK Securities.Timely resolution of Investor Complaints To date. patterned after the Custody Adopted Rules of Washington. and/or agents. No assistance shall be granted to any person (a) who is a director. or related to. officer.
regionallybased media groups. involved a combination of physical meetings in Hong Kong. It also provides paperless transactions as all of the approvals will be done online which is within the system’s capability. fixed assets and services in meeting the goal of improving overall profitability. The Philippine Stock Exchange.0. Easy monitoring and tracking of the inventory and purchase orders can also be done online. budget planning clearly specifies accountabilities. The consultations proved to be very helpful as it allowed the Exchange to: ferret out issues that prevent investors from investing in the Philippines.Enhance shareholder value Performance Management Budget Planning A system of evaluating projects for inclusion in the annual budget was adopted to improve the planning. fund managers. consulting firms. and establishes performance measures and deliverables for each project. More so. credit rating agencies. concerns and suggestions on how best the Exchange can help address the issues that these groups may have. The international consultation process Implementation of Purchase Order/Inventory Management Project The primary objective of the project is to improve the efficiency of Procurement and Inventory Management Processes by implementing the system using the Modules of Microsoft Dynamics AX 4. regulators and other market participants. The project enhances the need for accurate and timely availability of information regarding expenses pertaining to procured items. Quarterly Reviews The Exchange instituted quarterly reviews of the projects for the year to monitor their implementation and to address any problems that may come along the way. the Exchange met with institutional investors. companies. Locally. fund managers. officials of listed intermediaries. It was also an opportunity for the Exchange to inform these stakeholders about its current corporate governance initiatives and to solicit their support for these initiatives. Vietnam. multilateral agencies and a number of other internationally recognized and respected organizations whose views on governance and investment are influential. These quarterly meetings with all the departments provide a venue to manage performance and ensure alignment of strategy with execution. These sessions were done to reach out to the Exchange’s key stakeholders and draw from them insights. The project started last November 2009 and is expected for completion by March 2010. correct misconceptions about the market. The consultations made the stakeholders aware of the Exchange’s initiatives to promote corporate governance. The Exchange discussed stakeholder issues with large institutional investors. Thailand and Japan. implementation and monitoring processes of the Exchange. academic institutions. Singapore. Stakeholder Engagement The Exchange conducted a series of consultations with local and international stakeholders from April to November 2009. representatives market from pension funds. Annual Report 2009 27 . Inc.Exchange boosts stakeholder engagements E . sets the timeline. as well as telephone conferences with organizations based in North America and Europe. and gain goodwill and establish contact with key stakeholders.
By attracting these instruments to be traded in a formal exchange. with the number of terminals increasing to 381 only in the last quarter of 2009 from 367 of the previous year. Market Data Business Market data revenues continued to thrive against an otherwise volatile market by posting a modest growth of 12. causing prospective clients to hold off on integrating their systems with the old trading platform. 2009. This allows trading participants to employ any of the lending modes allowed by SEC Memorandum Circular No. On the other hand.2 million in 2008.02 of the PSE Rules on Securities Borrowing and Lending. Revenues from these subscriptions increased by 10. lessons learned and best practices of different Asian REIT markets and corporate governance issues were tackled during the panel discussions. law firms. This growth was primarily due to the introduction of a more rationalized pricing structure and the increase in number of clients to 47 from 40. investment banks. With respect to commodities trading. The increase in number of clients was however limited by the Exchange’s ongoing effort to migrate to a new trading system. 7 (2006) pending the issuance of the program guidelines that would ensure all trading participants’ compliance with all the requirements of SBL Rules issued by the SEC. securities and lending L . trading participants responded accordingly with the movement of the market. The REIT bill. Left: PSE hosts the REIT Asia Pacific forum 2009: Key to Philippine Capital Markets Growth. Manila.Exchange gears up for REIT listings. More than 100 participants from local and foreign property companies. In 2009 the Exchange laid down the necessary groundwork for the introduction of the Real Estate Investment Trust (REIT) and Securities Borrowing and Lending (SBL) in a continuing pursuit to introduce new products for the investing public. the study reveals the viability of developing a commodities exchange starting with select crops such as sugar.’’ was held on September 30.3 million in 2008. consultants and the media attended the conference. It also highlighted the relevant provisions of the then proposed REIT bill. revenues of P3.Launch new products and services 28 Annual Report 2009 The Philippine Stock Exchange. that the tax structure for the trading of derivative products needs to be reviewed to allow these hedging instruments to flourish in the market. REIT best practices and current property trends in the region. At present. 9856 or “An Act Providing the Legal Framework for Real Estate Investment Trust and for Other Purposes. Inc. however. the Bureau of Internal Revenue and the PSE. Securities Borrowing and Lending(SBL) The SEC approved the Exchange’s proposed amendment to Section 2.5 percent to P21.6 million in 2009 from P19. “REIT Asia Pacific Philippines 2009: Key to Philippine Capital Markets Growth. The Exchange shall use the inputs from the study in crafting the roadmap for expanding the menu of products available for trading at the Exchange. The study also revealed.4 percent to P14. these instruments can be better regulated and the risks associated with derivatives trading can be managed accordingly. The conference featured different structures of REITs in Asia.7 million in 2009 from P13. Business Development Feasibility Study on Developing a Derivatives and Commodities Exchange The CBM Group (CBM).” lapsed into law on December 17. The results of the study showed potential for developing a derivatives market in the Philippines particularly for index-based futures. This is again attributable to prospective clients deferring their decision pending the launch of the new trading system. there are no futures instruments traded in the stock exchange. and the outlook for the Philippine REIT market.4 million in 2008. a New York-based financial consultancy firm engaged by the Exchange in 2008. . 2009 at the Heritage Hotel. which is now Republic Act No. For the dealing terminals.5 million from dealing systems using the Communications Front End (CFE) data feed experienced minimal increase from P3. concluded their feasibility study on the development of a derivatives and commodities exchange in the Philippines. Right: An open forum commences after the main event. The competitive Asian REIT landscape. Real Estate Investment Trust (REIT) A REIT Conference entitled.
With the new business rules and requirements as a result of the New Trading Rules. The Exchange will also implement the use of aggregate accounts by trading participants when posting orders for clients. In line with the Exchange’s plan to ensure continuous trading despite the unavailability of the primary data center. Traders who have successfully passed the examination can request for their Trader ID to be used in accessing the trading system. The Exchange is maintaining a separate website for NTS. much effort has been exerted towards the preparation of the Exchange’s back-office systems to make all the systems compliant to the NTS which included the design and development of a universal interface that would cater to clearing and surveillance. the installation of 250 new Core2Duo trading terminals to replace terminals in the Ayala and Tektite trading floors. Finally. the Exchange facilitated the training and testing of a total of 604 trainees as of December 2009 using the PAM workstation or the trading terminal for the new trading system replacing MarketWorks. A new Precision Air Conditioning Unit and a Temperature and Humidity Monitoring device were likewise installed at the Ayala Data Center as part of the Exchange’s site preparation to ensure the proper temperature and humidity of the servers and other components. the Exchange still provides support in terms of MarketWorks installation. trading participants with dealer accounts are required to have a dedicated trader to handle such orders. Under the NTS. Both local and foreign sites are being considered for this co-location project. reliable and stable site. All NTS-related memos. The Philippine Stock Exchange. The NTS also tracks the foreign ownership The Exchange prepares the trading participants for the New Trading System through market rehearsals. Market survey and proof-of-concept activities have likewise started for a new email system to improve the messaging system of the Exchange. Inc. Trade Unbundling. among others. presentations. the study and use of appropriate client access security system. front-end installation at traders’ remote sites and a host of installation. Trade Amendments and Cancellations. The website is intended to inform the participants of any developments and updates in the NTS project. However. As of December 2009. infrastructure improvements include the upgrade of the Exchange’s internet connection from 2 megabits per second (mbps) to a high speed 10 mbps link. technical requirements. developments of new micro modules were undertaken and these include Client Code Generation. Consolidated Trade File. announcements. This entailed that account codes were standardized for all trading participants. testing and tuning activities all geared towards the smooth implementation of the NTS. New Trading System To further develop its infrastructure. In line with the implementation of the NTS. On the applications front.Upgrade market infrastructure and human resources Information Technology The Exchange continues to pursue the enhancement of its trading infrastructure through its New Trading System (NTS) project. The Exchange also introduced some changes in the course of trading operations which will be implemented with the launch of the NTS to promote operational efficiency and enhance transparency such as the submission of client codes. A data reconciliation and contingency module was also developed to mitigate untoward incidents and to ensure the release of accurate data at all times. facilitates trading participant’s request for CFE Certification and provides functional support to trading terminal users at the trading floor and offsite to name a few. the Exchange acquired the NTS to replace the existing MakTrade system.New Trading System primed for launch U . preliminary works have started to move the Disaster Recovery (DR) servers to a high security. documentations. Currently. training schedules and schedule of events are available on the said site. In 2009. and the End-of-Day Price File. a total of 418 trading accounts have been defined in the NTS. Annual Report 2009 29 . This was done in collaboration with the Market Operations Division. they will be required to submit to the Exchange at the end of each trading day the allocation made for any aggregate orders entered into the system. the Contract Management System was developed and implemented to assist the Exchange in the monitoring and management of contracts.
Figure 5. Broker Systems Support & Cert. Korea Capital Market Seminar sponsored by the Investment Association (“KOFIA”. Dept. Section Administration Section . These rules include: the Pre-Open Cancellation Rule. formerly Korea Financial Korea Securities 30 Annual Report 2009 The Philippine Stock Exchange. The Exchange likewise conducted in-house seminars such as the Corporate Image Seminar and Effective Business Writing Skills to enhance employees’ personality. and immersion/exposure training of Issuer Regulation Division (IRD) personnel at the Hong Kong Stock Exchange and Clearing Ltd. Oddlot trading will follow the same matching algorithm as the regular board that will allow partial matching of oddlot orders regardless of the number of shares posted under the NTS. Lastly. Accounting Dept. the determination of the closing price has been changed from the last transaction price prior to the run-off period to a closing price calculation depending on the volume and price posted during the pre-close period. certain sections of the existing Trading Rules were amended and implemented. Market Education Dept. PSE Foundation Corporate Services Division Corporate & External Affairs Department Corporate Planning & Research Section Public & Investor Relations Section Human Resources & Administration Department Human Resources Mgt. Technology Division Applications Development Department Infrastructure Systems Admin Deparment Market Data Business Department Database Administration Department Market Regulation Division Trading Participants Regulation Dept. Capital Markets Development Division Marketing Services Dept. Finance and Investments Division Budget & Treasury Dept. It is noteworthy that another employee passed the Level 1 Exam and qualified for the Level 2 Exam as a scholar. Stock Exchange Seminar for Asian Countries sponsored by the Japan International Cooperation Agency (JICA). With the assistance of the Chartered Financial Analyst (CFA) Philippines. Human Resources Capacity-Building Efforts The Exchange sent employees to the following foreign training programs as part of its capacity-building efforts: US Securities and Exchange Commission (SEC) International Institute for Securities Market Development. the rule on the Immediate Execution of Approved Block Sale. PSE Organizational Chart Stockholders Board of Directors Market Integrity Board Office of the President Corporate Governance Office Strategy Mgt.limit by preventing any incoming orders from foreign investors beyond the foreign ownership limit of the listed companies. which states the amended penalties for any violation of the pre-open cancellation rule. which aims to improve transparency and equality among participants. and Provisions for Lifting of Trading Band which was also approved by the Board last August 12. 2009 has been submitted to the SEC for approval. Market Surveillance Dept. Business Dev’t Dept. Prosecution & Enforcement Dept. Risk Mgt. In line with the Exchange’s program to promote good corporate governance. two employees were granted scholarships for Level 1 to Level 3 Exams. 2009 and implemented in October 2009. and was approved by the Board last August 12. Counsel Market Operations Division Trading Operations & Control Dept. and was approved by the Board last October 29. Trading Development Dept. Data Management Dept. Inc. Internal Audit NOMELEC Audit Committee Corporate Governance Committee Corporate Secretary Treasurer Board Secretariat COO SCCP Issuer Regulation Division Listings Department Disclosure Department Office of the Gen. 2008 and implemented in January 2009. oral and written communication skills. Dealers Association). 4th and 5th Asia Securities Forum Training Seminars sponsored by the Japan Securities Dealers Association (JSDA). (HKEx). Listed companies will be required to report to the Exchange on a regular basis any updates in the foreign ownable shares.
This is based on the Volume Weighted Average Price (VWAP) of PSE shares during the preceding month ending July 3. Renovation works will also be done to existing offices and other areas at PSE-Ayala to maximize the work spaces. Inc.760 ESPP shares that were unavailed of in 2008 were offered for sale to qualified employees or participants. where all the offices at PSE-Tektite will be transferred to PSE-Ayala. with a 10 percent discount.Employee Stock Purchase Plan (ESPP) The year 2009 marked the second offering of the Employee Stock Purchase Plan (ESPP) to qualified employees or participants with at least one year tenure in the Exchange and its subsidiary.02 per ESPP share. Top Right: Children of employees enjoy the Exchange’s quarterly socials with a halloween party theme. The Office Integration Project is targeted for completion by the second half of 2010. A total of 57. A total of 50. 2009. 66. Bottom Left and Far Right: Overhead and frontal shots of the Ayala trading floor reveal the preliminary structures that will house the integrated offices of the PSE. The exercise price. or the determined price during the time of offer. The main objective of the project is to increase the efficiency of the Exchange’s operations and reduce its occupancy and operational costs. The ESPP team of Administrators is composed of the Exchange’s Chief Operating Officer (COO) as the Chairman. and the Head of the Corporate Services Division and COO of the SCCP as members.748 ESPP shares were subscribed to as of the close of December 2009. Top: Employees battle it out at the court.000 shares with an additional 7. PSE Office Integration Project The Board has approved the implementation of the Office Integration Project in reference to Board Resolution No. The Philippine Stock Exchange. Right: It’s business as usual at the Ayala trading floor. Annual Report 2009 31 . Right: Employees take a break from the Bowling Tournament. is P238. A total of 80 trading booths next to the electronic board at the Ayala trading floor will be retained in line with the construction of additional office spaces. the Securities Clearing Corporation of the Philippines (SCCP). Series of 2009.
PERA assets shall not be considered as assets of the contributor for purposes of estate taxes. reportorial and disclosure requirements.000 and P200.000 per year. The PSE Board attends the signing of the Personal Equity and Retirement Account Act in Malacañang.000 per individual and P400. On October 21. The Exchange supported the passage of the PERA Law to promote capital market development and encourage voluntary personal savings and investments to provide for one’s retirement. . provides that the sale.000 per couple. 9243 took effect. as defined in the law. Section 199 (e) of the National Internal Revenue Code of 1997 (the “Tax Code”). Office of the Insurance Commissioner.a tax exemption for the income from the PERA investments and reinvestments. barter or exchange of shares of stock listed and traded through the local stock exchange is exempt from DST for a period of five years from March 20. 2004 when Republic Act No. the President of the Republic of the Philippines signed into law Republic Act No. as amended by Republic Act No. respectively.a tax credit equivalent to five percent of the member’s maximum annual PERA contribution. the maximum annual contribution goes up to P200. the REIT company must distribute at least 90 percent of its distributable income as dividends and maintain its status as a public and listed company. externally managed. Abolition of Documentary Stamp Tax (DST) on Secondary Trading On June 30. borrowings. a PERA contributor will enjoy the following benefits: . the Exchange supported the REIT Act of 2009 to encourage the establishment of REIT companies that will be incorporated solely for the purpose of owning income producing real estate and related assets. A REIT company is taxed on its gross income less allowable deductions and dividends distributed. of the shares of stock sold. the revenue regulations for the PERA Act have yet to be approved by the DoF and the BIR. Under the new law. 2009. Inc.a tax exemption for all distributions upon retirement or death. The PERA Law also helps provide greater financial security to the working population while at the same time aids in generating more tax revenues for the government in the form of turnover taxes. secondary trading of shares listed on the stock exchange was subjected to a DST of P0.75 for each P200. 2009.Exchange lauds MarketFriendly Laws P . provided that.00 par value. The law mandates that shares of stock in a real estate investment company must be listed on the stock exchange to make it easier to buy or sell shares and promote transparency in these companies. with at least 75 percent of its deposited property being income-producing property. If the contributor is an overseas Filipino. The Exchange was at the forefront of the successful passage of the Personal Equity and Retirement Account (PERA) law which was signed on August 22. However. the contributor has reached the age of 55 and made contributions for at least five years. Recognizing the significant contribution of real estate investment companies in various economies and capital markets around the world. In order to enjoy the corresponding corporate tax incentives. and should comply with requirements for interested party transactions. . 9648. to its shareholders in order to avail of the preferential tax treatment. Personal Equity and Retirement Account Act (PERA) 32 Annual Report 2009 The Philippine Stock Exchange. with retroactive effect to March 20. or a fractional part thereof. 2004. REIT companies will have to actually distribute dividends of at least 90 percent of taxable net income.Partner with government and other stakeholders Real Estate Investment Trust (REIT) The Real Estate Investment Trust (REIT) Act of 2009 lapsed into law on December 17. 2009. barter or exchange of shares of stock listed and traded through the stock exchange. . and the Bureau of Internal Revenue (BIR).a tax deduction for employers who contribute to the PERA account of their employees. The investment vehicle is required to be in the corporate form. Department of Finance (DoF). and . which exempts from DST the sale. the Securities and Exchange Commission. property development activities. 9243. Prior to March 20. allowable investments. Investment risks are minimized since the assets of a REIT company are managed professionally by an independent fund and property manager. in case of retirement. must observe limitations on ownership levels. 2009. Under the PERA Law. individual and married couples may contribute up to P100. the PERA implementing rules and regulations (IRR) were approved by the Bangko Sentral ng Pilipinas. . 2008.
such as: a. Cebu on April 23. Bursa Malaysia. Taiwan Stock Exchange. The pre-packaged Hosting of the 28th AOSEF General Assembly The Exchange successfully hosted the 28th Asian and Oceanian Stock Exchanges Federation (AOSEF) General Assembly in Mactan. or jointly with its creditors. Central. was founded 10 years ago. the rehabilitation shall have a “cram down effect” on all creditors. Philippine Stock Exchange. and Tokyo Stock Exchange. The liquidation order shall also contain a schedule of the liquidation of the assets of the debtor for the payment of the claims of the creditors. The liquidation order approved by the Court shall vest all title and control of the assets of the debtor on the liquidator. The Court shall have a maximum period of one year to confirm the approval of the rehabilitation plan. Stock Exchange of Thailand.” the focus of the assembly in 2009 was the critical response of member Exchanges to the financial crisis as well as the exploration of ASEAN trading links that will catapult the region into a bigger and more competitive asset class. transfer agents or other entities transacting securities in the capital market does not preclude the filing of any form of action by clients to recover or otherwise claim money and securities against the securities market participant as well as the filing of any action by the regulatory agency or self-regulatory organization to pay or settle such claims or liabilities. Shanghai Stock Exchange. the rehabilitation of securities market participants such as brokers. Ho Chi Minh Stock Exchange. Hong Kong Exchange. Court-supervised This proceeding may be initiated by either the debtor or the creditor and the approval of the rehabilitation plan by each class of creditors is required. Liquidation c. whether or not such creditors participated in the proceedings. trade and financial stability. Korea Exchange. National Stock Exchange of India. the out-of-court rehabilitation plan requires the agreement of the debtor and the approval of creditors representing at least 67 percent of the secured obligations. This was the second AOSEF general assembly conducted in the Philippines after AOSEF. South and East Asia and Oceania “to maximize growth. The Exchange invited Her Excellency. Mongolia Stock Exchange. 2010. b. underwriters. Top: PSE hosts the 28th AOSEF General Assembly. The Court shall have a maximum period of 120 days to approve the pre-packaged rehabilitation plan. Out-of-Court or Informal Restructuring Agreement or Rehabilitation Plan This remedy is available to both juridical and individual debtors. Annual Report 2009 Under this remedy. Aptly titled as “Facing Changes and Challenges in the Global Markets. Left: Cebu Government hosts dinner for AOSEF delegates. 33 . Osaka Securities Exchange. Bombay Stock Exchange. 2009. Mrs. The General Assembly highlights the yearly gathering of 19 member stock exchanges to discuss relevant issues affecting the market. Top left: AOSEF members pose during a recreation trip at Bohol. Arroyo expressed her support for AOSEF and the creation of an Asian economic community that will include the Middle East. FRIA aims to establish new and effective procedures in insolvency proceedings which are designed to maximize the chances for the survival of the business of a financially distressed company or individual by providing four different remedies. President Gloria MacapagalArroyo to be the keynote speaker during the AOSEF General Assembly. by itself. The rehabilitation plan is deemed to have been approved by a class of creditors if members of the said class holding more than 50 percent of the total claims of the said class votes in favor of the plan. The FRIA aims to update the outdated legal framework of the country’s insolvency proceedings under the century-old Insolvency Law of 1909 which proved to be inadequate and unresponsive to present day business issues. on February 2. Indonesia Stock Exchange. d. formerly the East Asian Oceania Stock Exchanges Federation. Inc.” AOSEF counts among its members the following Exchanges: Australian Securities Exchange. Congress adopted the Financial Rehabilitation and Insolvency Act of 2010. including secured creditors holding more than 50 percent of the total secured claims and unsecured creditors holding more than 50 percent of the total unsecured claims of the debtor. New Zealand Exchange. dealers. Rehabilitation rehabilitation plan is required to be approved by creditors holding at least 2/3 of the total liabilities of the debtor. The Philippine Stock Exchange. creditors representing 75 percent of the unsecured obligations and creditors holding at least 85 percent of total secured and unsecured liabilities of the debtor. Jasdaq Securities Exchange. Pre-packaged Rehabilitation This action may be instituted by the debtor. Singapore Exchange. Shenzhen Stock Exchange.Financial Rehabilitation and Insolvency Act (FRIA) Finally. Upon confirmation by the Court. The proceedings may be converted to liquidation if rehabilitation is not successful or is not feasible. Under the FRIA. Upon the termination of the proceedings. the Court shall declare the dissolution and liquidation of the juridical debtor or the discharge of the individual debtor from his liabilities.
Pursuant to this Agreement. PSE and Department of Agriculture sign an MOA for a commodities trading study. The Agreement was entered into by Bursa Malaysia. and later in September 2009. ASEAN Exchanges ink an MOA for an ASEAN trading linkage. DA. together with its attached agencies. The Stock Exchange of Thailand. The PSE-Insular electronic board flashes market data and news to motorists that ply through the busy intersection of Ayala Avenue and Paseo de Roxas in Makati. news and summaries on the PSE-Insular electronic display board in Makati City. the Exchange and DA shall work together in engaging various stakeholders and farmer groups to ensure that an appropriate structure is established for a commodities exchange. each ASEAN exchange will be electronically linked to each of the ASEAN exchanges thereby allowing investors from one ASEAN country to trade stocks listed on other ASEAN markets with practically the same ease as trading local stocks. the Ho Chi Minh Stock Exchange. and the Philippine Coconut Authority. PSE. Indonesia Stock Exchange. Under the Agreement. MOA Signing with Thomson Reuters The Exchange partnered with Thomson Reuters Philippines last August to provide investors real-time market prices. to showcase a more dynamic form that could deliver a stronger message that the stock market is a viable alternative investment instrument. This is in line with the goals of the ASEAN Economic Community Blueprint and to strengthen ASEAN capital market development and integration. PSE taps Thomson Reuters Philippines for the makeover of the PSE-Insular electronic billboard. Under the proposed structure. The assistance by the DA also extends to setting up the necessary infrastructure. The stock exchanges have agreed that mutual collaboration. Singapore Exchange. The Exchange also participated in the ASEAN Product Development Group that aims to develop new ASEAN products that will enhance the visibility of the ASEAN across the globe. Inc. The MOUs are expected to benefit the respective markets and assist in the maintenance of orderly financial markets in each jurisdiction. to explore mutual cooperation through information and experience sharing. The Exchange entered into separate Memorandum of Understanding (MOU) with Shenzhen Stock Exchange. The MOUs are subjected to the execution of definitive implementing agreements. 34 Annual Report 2009 The Philippine Stock Exchange. and Korea Exchange. shall also be extending assistance and support in setting up the necessary regulatory environment to facilitate the establishment of an organized commodities market. Sugar Regulatory Administration. . such as warehouses and farm-to-market roads. the National Food Authority. which measures about 30 meters in length and 1. Inc. For 2009. Thomson Reuters likewise modified the look of the electronic board.5 meters in height. the ASEAN exchanges agreed on the key principles and features of the proposed ASEAN trading linkage. Ho Chi Minh Stock Exchange.ASEAN Collaboration The ASEAN stock exchanges formally entered into a Memorandum of Agreement (MOA) in February 2009 to proceed with the discussions in developing an ASEAN trading linkage and in establishing an ASEAN Board. MOA with the Department of Agriculture to pave the way for a Philippine commodities exchange The Exchange and the Department of Agriculture (DA) signed an MOA to pursue the development of an organized commodities market in the Philippines. the Exchange actively participated in the discussions to develop an ASEAN trading linkage through the ASEAN CEO’s meetings and the ASEAN Strategy Development Working Group. cooperation and communication among the parties will facilitate the development and efficient operation of the securities markets. to ensure the efficient delivery of agriculture commodities.
The Exchange takes pride in leading by example the pursuit of active stakeholdership for economic growth after receiving an award from the Bangko Sentral ng Pilipinas (BSP). through the donation from different organizations such as the PSE Foundation. Total donations and projects funded by the Foundation in 2009 amounted to P1. 2009 at the Shangri-la Mactan Island Resorts and Spa in Cebu City. PSE Heralded for Contribution to Monetary Policy Making Towards partnering for the development of the capital market. It was attended by 80 representatives from 15 countries. residents along Estero de Paco have contributed to the Pasig River’s rehabilitation through proper waste management. The meeting was held from April 22 to 25.16 million for the victims of the typhoon “Ondoy. PSE clinches 2009 BSP Stakeholders Award. cash assistance to PSE and SCCP employees as well as service providers like janitors and security guards who were seriously affected by the typhoon.8 million for charitable acts and environment greening. Other special projects undertaken by the Foundation in 2009 were the reprint of 3. the Foundation took out from the fund P1. the Foundation contributed to the PSE’s hosting of the 28th General Assembly and Working Committee Meeting of the Asian and Oceanian Stock Exchanges Federation (AOSEF). As a meaningful response. the Foundation is the resource agency for the roadshows conducted by the PSE Market Education Department. and for assistance to child development through the Children’s Joy Foundation.2 million for capital market development and P1.. “Building Wealth with Stocks: A Basic Guide to Investing in the Philippine Stock Market” and a sponsorship for the annual PSE “Bull Run: Takbo Para sa Ekonomiya” held in January. Since then. On a regular basis. 2009.The Pasig River connects key areas of Metro Manila. Inc.” to prevent flooding in Metro Manila and to relocate residents affected by the typhoon. particularly for a reliable domestic stock market base. for the maintenance of the secretariat of the Capital Market Development Council (CMDC) operated under the auspices of the Financial Executives of the Philippines (FINEX).0 Million as donation for the clean-up of the 24-kilometer Pasig River. Corporate Social Responsibility Annual Report 2009 35 . Inc. The PSE Foundation. making it more susceptible to waste that hamper its rehabilitation. set up a special fund worth P2. (Photo courtesy of ABS-CBN Foundation) The Philippine Stock Exchange. together with the PSE and the SCCP. during the awarding ceremony and appreciation lunch for the 2009 BSP Stakeholders held last July 14. the ABS-CBN Foundation. began community-based strategies for residents along the riverbanks beginning with the Estero de Paco near the Paco Market and Quirino Highway.” This fund was disbursed through rice donations to the Pasig City campaign for its constituents. coursed through the ABS-CBN Foundation “Kapit Bisig sa Ilog Pasig Clean Project. The Exchange was awarded the Special Recognition for Source of Information for Monetary Policy. This collage of photos shows the past and present situation of Estero de Paco.000 copies of the educational primer. Research Entity category. Likewise.
Risk Management and Monitoring Risk management and monitoring continued to be given top priority during the entire 2009. tasked to set up the depository for SCCP. After receiving the approval of the Board. 2010.” “Haircut on Pledged Securities Collateral. since the SCCP is one of the recipients of the trade feed for end-of-trading data validation and uploading. the SCCP purchased its own production and back up database servers and the necessary Oracle software in order to migrate its clearing and settlement system from the PSE database server to its own database server. During the year 2009. registered a 39 percent increase in net income to P104. Moreover. the SCCP participated in the NTS market rehearsals facilitated by the Exchange. volume and value changes as part of its daily functions. full-cycle processing of settlement instructions and pledging/uplifting of securities as collateral.2 million in favor of stockholders on record as of March 2. 2009 in the amount P80. This was known as “Project Clearing House”. the SCCP Board declared cash dividends on two occasions: one on February 25. the SCCP had engaged the services of The CBM Group. to undertake a study on clearing house equity market risk management and institutionalize the SCCP’s risk management procedures and become at par with global standards and practices. SCCP Depository Project In early 2009. The SCCP consistently implemented its risk management procedures on “Highly Unusual Settlement Obligations. a whollyowned subsidiary of The Philippine Stock Exchange. In addition to creating efficiency. As we had previously reported. PDTC’s Migration from Fintracs to eCS system The SCCP took active participation in the activities conducted by the Philippine Depository & Trust Corp. Inc. 2009. 2009. the SCCP did not need to tap its credit facility with any of its settlement banks to cover a potential cash fail. which are expected to be affected when the New Trading System (NTS) is launched. the team presented to the SCCP Board of Directors the proposed market structure as well as the financial and organizational plan for establishing the depository. Clearing and Settlement Operations For the year 2009.95 percent for the delivery of their securities and cash obligations by the 12:00 noon deadline on T+3.” and “Designated Stocks” or stocks that exhibit unusual price. hence. USA.86 million in 2008.. and these were paid on March 6. (3) provided preview sessions for the clearing members on the Depository module of the CCCS system. and (4) trained with a major Depository overseas who . the SCCP aims to reduce the friction costs of its clearing members and ultimately. the Depository Project Team (1) drafted the proposed depository rules and operating procedures. Meanwhile.58 million from P136. the end-investors. the SCCP created a Depository Project Team composed of officers of the Exchange and SCCP.Subsidiary Securities Clearing Corporation of the Philippines The Securities Clearing Corporation of the Philippines. (2) presented to the Securities and Exchange Commission (SEC) the proposed depository rules and operating procedures as well as the proposed market set-up. Inc.0 million in favor of stockholders on record as of December 31. Testing of the new database servers is ongoing and the SCCP expects to effect the planned migration within the first quarter of 2010. There were no overnight settlement fails experienced during the year. (PDTC) prior to the live implementation of their new depository system (eCS system) in mid 2009. a management consulting firm based in New York. The SCCP likewise closely monitored whether each clearing member was adequately capitalized to meet its daily average netted obligations. This includes the SCCP’s participation in the market-wide testing providing support to the participants and ensuring the integrity of the connectivity and interface between the CCCS and eCS systems. the service fees earned by SCCP increased by 30 percent to P177. Clearing Members continued to maintain a very satisfactory compliance rate of 99.40 million in 2008.12 million for 2009 from P74. Prior to the kick-off of this project. 36 Annual Report 2009 The Philippine Stock Exchange. The Depository project of the SCCP aims to provide the equities market participants with a central system performing both the depository and clearing and settlement functions. also provided the team with exposure on the operations of a major Custodian Bank and Share Registry. Inc. 2009 and these were paid on February 22. As part of the SCCP’s infrastructure enhancement and in line with its objective of improving settlement processing and releasing cash and securities entitlements at an earlier time. and the other on December 15. the SCCP’s Settlement Banks have automated the crediting of due broker proceeds from the clearing members’ settlement accounts directly to their working accounts. 2009 in the amount of P28. This would enable the SCCP to be at par with the practices of most Exchanges where the clearinghouse and the depository are operated by one entity which is under the direct regulation of the Exchange.. PSE New Trading System Project The SCCP worked closely with the PSE-Information Technology Division for the revision of processes needed to be done in extracting trade and closing prices data. in consultation with the PSE-Market Regulation Division as well as market participants. Additional trainings and exposures are underway to prepare the SCCP staff in providing depository services for the equities market. Moreover.
but at the end of the netting process. regardless of whether the trade was done by a local or a foreign client and regardless of whether it is a client or proprietary trade. Inc. The implementation of Margin Requirement would shift the SCCP’s approach from a Clearing Fund-driven to a Clearing Member-driven risk management thereby placing more responsibility on the clearing members for the risks they bring to the clearing system and at the same time. As a backgrounder. real-time calculations using the last available trading price. implementation of full netting will result in the (1) reduction in the outstanding obligations of the clearing members due for settlement. A clearing member may have executed many transactions on a single issue with any number of clearing members. as mentioned earlier. The CBM Group presented its final report to the joint Board of Directors of the PSE and the SCCP. The system automatically offsets “buy” and “sell” transactions on a per issue and a per flag basis to arrive at a per flag net receipt or a net All cash debits and credits are also netted into a single net cash position for each clearing member. 2009. the reduction in the overall volume on average will be by as much as 54 percent if the SCCP applies full netting. The CBM Group recommends that the SCCP move to a full netting process rather than netting by flags. In the review of The CBM Group. The Philippine Stock Exchange. Presently. the end-investors. client/proprietary). being the best practice approach.” as opposed to the current practice where all trading participants are automatically eligible to apply as clearing members. or an entitlement to receive securities or cash. The CBM Group recommends that the SCCP require its members to post Margin Collateral designed to cover for replacement risk to a 95 percent Value at Risk ( VaR) standard. The recommendations of The CBM Group are as follows: Introduction of Two-Tiered Clearing Membership The CBM Group recommends that access to the clearinghouse be made selective and restricted to counterparties that meet significant capital requirements and risk management standards. Migration to Full Netting of Trades The CBM Group recommends that the SCCP move to a full multilateral netting process rather than netting by flags (foreign/local. multilateral netting is defined as a netting system in which all trades are netted to arrive at a final long or short cash and securities position for each participant. delivery security position for each clearing member. multilateral netting is done by the SCCP on a per flag basis. The CBM Group recognizes that real-time Mark-toMarket processing will require the implementation of the Collateral Management module of the clearing system (CCCS).Project Clearing House On November 11. which assumes normal market conditions. as well as a “real time” link with the new trading system (or at least frequent uploading of trade data between the trading system and the clearing system). expressed through a “clearing member rating scale. unlike other clearinghouses around the globe which simply offset “buy” transactions against “sell” transactions of the same security. In addition. The process of multilateral netting starts as soon as trades done in the Exchange are uploaded to the clearing and settlement system of the SCCP. protecting the Clearing and Trade Guaranty Fund (CTGF). Adoption of Real-time Mark-toMarket Collateral Deposit System The CBM Group recommends that the SCCP move toward an intra-day Mark-to-Market calculation and subsequently. it will be left with one single obligation to deliver securities or cash. and (2) increased productivity due to lesser transactions for processing which would further result in faster and more efficient clearing and settlement processing and earlier crediting of entitlements to the clearing members and ultimately. Imposition of Margin Requirements In addition to the Mark-to-Market collateral requirement which covers for the price fluctuation risks. Annual Report 2009 37 .
the SCCP will ensure the sufficiency of the collateral guaranteed by the Borrower by performing a daily valuation of the collateral deposits based on the market against the value of the loan. In the event of a default however. which is equivalent to a Deemed Sale. thereby exposing the SCCP to unlimited number of days at risk if the Alternative Cash Settlement is not triggered. The SCCP will use the Collateral Management module of the CCCS system. or (c) its Due Clearing obligations to SCCP are more than the current level of the CTGF. which was recently approved by the SEC. The trading limit will serve as the SCCP’s credit limit to its clearing members such that the inability of a clearing member to post margins on its trade obligations would cause the SCCP to restrict said clearing member from creating additional risks on the clearing system. (3) Delivery of cash or securities collateral. After conducting the preview sessions to Clearing Members. The trading limit should be imposed on a clearing member in the event that its (a) Margin collateral is less than the Margin Requirement of SCCP. The SCCP will also guarantee the settlement of the loan transaction by executing Alternative Cash Settlement. and (6) Monitoring by SCCP of delivery of collaterals by the Clearing Members. As a Central Counterparty Lending Agent. Inc. (4) Execution of early delivery instructions. Alternative Cash Settlement The CBM Group recommends that the SCCP implement the Alternative Cash Settlement earlier than T+7 in the event of a security fail. As of year-end 2009. the Borrower or even the SCCP. Participating clearing members would only need to execute a one-time Multilateral MSLA which would already allow them to become Borrowers or Lenders in the SBL program of SCCP. collateral posted and any line of credit provided by its settlement bank. Collateral Management The Securities and Exchange Commission (SEC) approved on November 18. the SCCP management was in the process of evaluating the impact of the above recommendations on the operations of the Company and the market participants. These then would become the SCCP’s basis for formulating its proposed Risk Management Framework which are to be presented to the SCCP Board in the following board meeting. (5) Generation of corresponding reports. The SCCP will also allow Manual Recall which would enable the Lender. . 2009 the SCCP’s application to implement the customized Collateral Management Module of CCCS and the corresponding amendments to its Rules and Operating Procedures. one of the highlights of the SCCP’s SBL facility is the execution of the Multilateral Master Securities Lending Agreement (Multilateral MSLA). the daily mark-to-market procedures will be fully automated and Clearing Members and the SCCP will only have to use the CCCS System for (1) Marking to Market of the Clearing Members’ unsettled trades and collateral deposits. to recall the securities earlier than the agreed duration. This is particular to the securities which are highly illiquid and would take days before a failed trade on such security will be unwound. Implementation of Trading Limits The CBM Group recommends that the SCCP introduce risk-based trading limits. Lenders will only need to deposit the securities for lending in the Lending Pool where the SCCP will be the Pool Operator. When implemented. In addition to the above.Implementation of “Super Margins” The CBM Group recommends that the SCCP require the clearing members to post “Super Margins” when they create exceptionally large exposures exceeding the coverage offered by the CTGF and posted Margin Collaterals. Securities Borrowing and Lending The SCCP awaits the approval of the SEC to be a Lending Agent for Securities Borrowing and Lending (SBL) transactions where the SCCP as Lending Agent will play the role of a Central Counterparty. for risk management purposes. the SCCP will charge the defaulting Borrower a Compensation Value which shall then be credited to the Lender. for the marking to market of the collateral deposits and the loaned securities. the Collateral Management Module will be tested for production and is expected to be implemented within the first half of 2010. in the event of a default by the Borrower. (2) Notification of collateral requirements / refund to all concerned clearing members. 38 Annual Report 2009 The Philippine Stock Exchange. It is necessary for the SCCP to stand as a Central Counterparty because the CCCS system adopts a “screen and pool concept” where the participants will lend and borrow the securities in a completely anonymous way. This is to protect the CTGF from being fully impaired in the event that any of the clearing members defaults on its obligations. (b) Super Margin collateral is less than the Super Margin Requirement of SCCP.
ph www.edu. Inc.com www.citylandcondo.com.ph www.globe.ipeople.com www.macondray.alliancetuna. Leisure and Resorts World Corporation Lepanto Consolidated Mining Company Liberty Telecoms Holdings. Export and Industry Bank. Inc.waterfronthotels. ATN Holdings.citylandcondo.com www. Inc.com. Inc.mabuhayholdingscorp.com.jollibee.com www.com.ayala.com www.com www. Inc.ph www.com www.pharmaindustries.boulevardholdings.com www. inc.ir.com.apexmining.) Commercial Bank Corp. ISM Communications Corporation JG Summit Holdings. Cebu Holdings.ph www.com www. Inc..ayalaland.basicenergy.centurypeakmetals.com www.dfnn.wi-tribe..com www.abs-cbnpdr.com www. Integrated Micro-Electronics. Inc.firstmetro.bellecorp.com.benpres-holdings.mbcsales.chinatrust.com www.com www.empire-east.anglophil.atsc.apcaragorn. Inc. Manila Broadcasting Company Manila Bulletin Publishing Corporation Manila Electric Company Manila Jockey Club. City & Land Developers.cac.com. IP E-Game Ventures.com www.com http://filsyncorp.com www. DMCI Holdings. Apex Mining Co. Inc. Filinvest Development Corporation Filinvest Land. Inc.ph www. Inc.com www. Incorporated AgriNurture.myiremit.ph www.ph www.activeallianceinc.com www.abs-cbn. Banco Filipino Savings & Mortgage Bank Bank of the Philippine Islands Bankard.com www. Grand Plaza Hotel Corporation Highlands Prime. F & J Prince Holdings Corporation Far Eastern University. Soriano Corporation Abacus Consolidated Resources and Holdings.com www.com www.ph www.asianterminals..lorenzoshipping.anscor. Inc.anchorlandholdings.com.Listed Companies with Websites Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 63 64 65 A Brown Company.benguetcorp.ismcomm.ph www. Incorporated Cebu Property Ventures and Development Corp. Jollibee Foods Corporation Jolliville Holdings Corporation JTH Davies Holdings. MacroAsia Corporation Manchester International Holdings Unlimited Corp. Inc.ph www.interportresources. GMA Network. Anglo Philippine Holdings Corporation APC Group. Inc.etonpropertiesphilippines. Inc. Inc.com. MEDCO Holdings.com.meralco.com www.manilawater.mb.com.edu. Inc.ph The Philippine Stock Exchange.com.com www.com. Concrete Aggregates Corporation Cosmos Bottling Corporation DFNN Inc. Arthaland Corporation Asian Terminals.com.com www. Inc.ph www. International Container Terminal Services.) Hotel Corporation Active Alliance.com.ph www.mpic.com www.ph www.com www.com www.chemphil. Inc.com www.ph www.abacusconsolidated.ph www.com.com www.easycall. Chemrez Technologies. Inc.com www.com www.bcii.com www.lrwc.com. Inc.ph www.ph www. Atlas Consolidated Mining and Development Corp. House of Investments.fil-estateland.bpiexpressonline.ph www.ph www. China Banking Corporation Chinatrust (Phils. Basic Energy Corporation BDO Leasing and Finance.com www. Inc.atokbigwedge.com www.ph www. Aboitiz Power Corporation Aboitiz Transport System (ATSC) Corporation ABS-CBN Broadcasting Corporation ABS-CBN Holdings Corporation Acesite (Phils. Banco de Oro Unibank.com www.macroasiacorp. Inc.com.ph www. Inc.net www.com www. Inc.com www. Inc.com www.com www.ph www.ph www.com www.atnholdings. LMG Chemicals Corp. Inc.acr.eei. Belle Corporation Benguet Corporation Benpres Holdings Corporation BHI Holdings.ph www.com.gmanetwork.com. Inc. Inc.grandplazahotelcorp.com www.filinvestland.com.ph www.com.com. Information Capital Technology Ventures.com www. Inc.com www.ceu.com www.com www.keppelphilippinesmarineinc.arthaland.com www. Inc. GMA Holdings.com www.com.ginebrasanmiguel.com.lodestarinvestment.ph www.com www.exportbank.aboitiz.com.ph www.com.highlandsprime.net www. Inc. Inc. Island Information & Technology.fjprince.citiseconline.com www.ph http://ir. Inc.com.com.iiti.ani.com www.com www.ph www.com www. Keppel Philippines Properties.net Holdings. Manila Mining Corporation Manila Water Company. Inc. Inc.com www.feu.ph www.ph www.lepantomining.com www. Euro-Med Laboratories Phil. Inc.ph www.com www. Inc. Fil-Estate Corporation Fil-Estate Land. Inc. East Asia Power Resources Corporation EasyCall Communications Philippines. Atok-Big Wedge Co. Interport Resources Corporation Ionics.com.manilajockey. Inc.com.cpvdc.atlasphilippines.ph www.ictsi.jgsummit.ph www. Inc. Inc.hoi.alcorngold. CitisecOnline.com www. IPVG Corporation I-Remit.federalchemicals.mariwasa.fil-estatecorp.imiphil. Incorporated Cityland Development Corporation Citystate Savings Bank.bhi-holdings.ph 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 125 126 127 128 129 130 Company Empire East Land Holdings.cosmosbottling. Alaska Milk Corporation Alcorn Gold Resources Corporation Alliance Global Group.ph www.mvc. Inc. Manulife Financial Corporation Mariwasa SIAM Holdings.ph www.com www.ictv.atrkimengfinancial. Inc.aboitizpower.jthdavies.bankard.com www. Inc. Inc. Ginebra San Miguel.chemphil. Globe Telecom.com www.manilamining.aranetaproperties. Araneta Properties.filinvestgroup.com. Bacnotan Consolidated Industries. Holcim Philippines.digitel.fphc. EEI Corporation Website www.ajonet.com.com. Inc. Inc.com. Inc.cebuholdings.cat-luisita..com www.holcim. Central Azucarera de Tarlac. Annual Report 2009 39 .ph www.com www.com.com www. Lodestar Investment Holdings Corporation Lorenzo Shipping Corporation Mabuhay Holdings Corporation Mabuhay Vinyl Corporation Macondray Plastics.dmciholdings. Inc.e-games. Inc.xavierestates. Anchor Land Holdings.firstgen. Incorporated Federal Resources Investment Group.megaworldcorp.chemrez.com www. Inc. A.com www.powr.com www.com www. Megaworld Corporation Metro Pacific Investments Corporation Website www.joh.energy. Inc.com.ph www.keppelland. Energy Development (EDC) Corporation Eton Properties Philippines. Centro Escolar University Century Peak Metal Holdings Corporation Chemical Industries of the Philippines.com www.com.geograce.alaskamilk. Allied Banking Corporation Alsons Consolidated Resources.allianceglobalinc.asiatrustbank.ph www.chinabank.com www. Inc. AsiaTrust Development Bank.com www. iPeople.ph www.alliedbank.leasing. Inc. Aboitiz Equity Ventures. Inc. Inc.com.gmanetwork.ionicsgroup.bancofilipino. Inc. Inc.com www.bdo.firstabacusfinancial. Keppel Philippines Marine.ph www.medco.com www.com www.com. Filsyn Corporation First Abacus Financial Holdings Corporation First Gen Corporation First Metro Investment Corporation First Philippine Holdings Corporation GEOGRACE Resources Philippines. Digital Telecommunications Phils.manulife. Boulevard Holdings.com www.ph www. Inc.com www. Inc.ph www.ph www.ph http://ipvg.ph www.com www. ATR KimEng Financial Corporation Ayala Corporation Ayala Land.sg www.com www.ph www. Alliance Tuna International.com. Inc.euromedlab.citystatesavings. AJO.com.bdo. Inc. Inc.com www.
ph www.com. Inc.com.ph www.zeusholdingsinc.ph www.philexmining.pepinc.vitarich.nihaometals. Inc. Inc.com www.ph www. Inc. Website www.sanmiguel.com www.splash.ph www. Tanduay Holdings.rhi-cadp.ph www.pnoc-ec.net. as of March 31.webs.net www. Incorporated Wellex Industries.ph www.supercity.ivantage. Vantage Equities.uni-wide. Solid Group.com.nrcp.petron.waterfronthotels.ph www. Inc.seafrontresources. Inc. San Miguel Corporation San Miguel Properties.com.ph www.rcbc.securitybank. Inc.ph www.suntrusthomedevelopers.pepsiphilippines.tbgi.ph www.com.com.ph www. Inc.com www. Inc.com www.ph www.com.metrobank.musxcorp.ph www.ph www.com www.smdevelopment. Pepsi-Cola Products Philippines. Oriental Petroleum and Minerals Corporation Pacific Online Systems Corporation PAL Holdings.7-eleven.com www. Supercity Realty Development Corporation Swift Foods. Inc.rfmfoods. Vitarich Corporation Vulcan Industrial and Mining Corporation Waterfront Philippines. 2010 .tkcsteel.santa-ana-park.ph www.ph www.com.ph www.ptfc-brc.com www.com.tanduay.unitedparagon. SM Development Corporation SM Investments Corporation SM Prime Holdings.philweb. South China Resources. The Philippine Stock Exchange.com.ph www.repglass.psbank.ph www. Inc.ph www. Inc.ph www. Inc. Panasonic Manufacturing Philippines Corporation Pancake House.com Company 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 Robinsons Land Corporation Roxas and Company.ph www. PetroEnergy Resources Corporation Petron Corporation Philcomsat Holdings Corporation Philex Mining Corporation Philippine Bank of Communications Philippine Estates Corporation Philippine Long Distance Telephone Company Philippine National Bank Philippine National Construction Corporation Philippine Racing Club.sanmiguelbrewery.philcomsat. Lucia Land. Prime Orion Philippines.ptt.com http://philrealtycorp.vistaland.com.ph www.orientalpeninsula. Inc.com.com www.com.com.vulcanminingandpetroleum.com www.com.phes.com.com.sanmiguelpurefoods.ph www.com. Union Bank of the Philippines.ph www.com www.philippineairlines.com www. Paxys.panasonic. Rizal Commercial Banking Corporation Website www.polar. Inc.roxascompany.com www.pse.ph www.com www.com www.com. Victorias Milling Company.com 40 Annual Report 2009 The Philippine Stock Exchange. Seafront Resources Corporation Security Bank Corporation Semirara Mining Corporation Shang Properties.ph www.ph www.ph www. Inc.net www. Sun Life Financial Inc.com www.ph www.com www.com www.com www. Inc. Southeast Asia Cement Holdings.pancakehouse. Inc.com www.com. Incorporated Zeus Holdings.ph www. Inc.ph www.lafarge. Prime Gaming Philippines.com www.sunlife.paxys. Inc.com www.ph www.pbcom. Inc.opmc.Company 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 Metropolitan Bank & Trust Company MIC Holdings Corporation MUSX Corporation National Reinsurance Corporation of the Philippines NiHao Mineral Resources International.com.net www.pncc.net.com www.com www. Inc.stalucialand.com.shangproperties.sanmiguelproperties.robinsonsland.com www.urc. Philippine Trust Company PhilWeb Corporation Phoenix Petroleum Philippines. Inc. Inc.piltel.ph www. Transpacific Broadband Group International Inc.pldt.ph www. Inc.phoenixphilippines.smprime.com.pgpi.unionbankph. Inc.philodrill.com.philtrustbank.com www.semiraramining. Inc.com www.com.com.pnb.com www.ph www.com www. Pilipino Telephone Corporation PNOC Exploration Corporation Polar Property Holdings Corporation Premiere Entertainment Philippines. United Paragon Mining Corporation Universal Robina Corporation Uniwide Holdings.myswiftfoods.micholdings.com. Republic Glass Holdings Corporation RFM Corporation Ripple E-Business International. Vista Land & Lifescapes.com.iripple.com www.com.com www.com.wellex. The Philodrill Corporation TKC Steel Corporation Trans-Asia Oil and Energy Development Corp.ph www.primeorion. San Miguel Pure Foods Company.sminvestments. Inc. Inc. Philippine Realty and Holdings Corporation Philippine Savings Bank Philippine Seven Corporation Philippine Telegraph and Telephone Corporation Philippine Tobacco Flue-Curing and Redrying Corp.transasia-energy.com.ph www. Suntrust Home Developers.ph www. Roxas Holdings.com. Inc. Inc.victoriasmilling. San Miguel Brewery.com www. Splash Corporation Sta.ph www.loto.com.com.com www. Inc.com. Inc.ph www. Inc.com www. Oriental Peninsula Resources Group.com.com.com www.com.petroenergy.southchinaresourcesinc.solidgroup.
S i l ve r M i n e s . I n c. I n c. Ma ka t i F i n a n c e C o r p o r a t i o n Ma r s t e e l C o n s o l i d a t e d . Libe r t y F l o u r M i l l s . I n c Annual Report 2009 41 . Nex t S t a g e . I n c. Met r o A l l i a n c e H o l d i n g s & E q u i t i e s C o r p . .M e d e l l i n M i l l i n g C o m p a n y . Fili p i n o F u n d . For u m Pa c i f i c . I n c. I n c. I n c. Imp e r i a l R e s o u r c e s .G o t e s c o R e s o u r c e s a n d H o l d i n g s . Kep p e l P h i l i p p i n e s H o l d i n g s . Pri m e t ow n P r o p e r t y G r o u p. Omi c o C o r p o r a t i o n Pac i f i c a . I n c. Abr a M i n i n g a n d I n d u s t r i a l C o r p o r a t i o n AGP I n d u s t r i a l C o r p o r a t i o n Asia A m a l g a m a t e d H o l d i n g s C o r p o r a t i o n Bog o . Uni ve r s a l R i g h t f i e l d P r o p e r t y H o l d i n g s . I n c. I n c. Inc. I n c. Viv a n t C o r p o r a t i o n Wis e H o l d i n g s . 2010 The Philippine Stock Exchange. Uni o i l R e s o u r c e s & H o l d i n g s C o m p a n y . I n c. Cyb e r B a y C o r p o r a t i o n Diz o n C o p p e r . I n c. Eve r . I n c. Crow n E q u i t i e s . I n c.Listed Companies without Websites Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 as of March 31. PIC O P R e s o u r c e s . I n c. Pri m ex C o r p o r a t i o n Pry c e C o r p o r a t i o n Rep u b l i c C e m e n t C o r p o r a t i o n San i t a r y Wa r e s M a n u f a c t u r i n g C o r p o r a t i o n Sin o p h i l C o r p o r a t i o n SPC Powe r C o r p o r a t i o n Ste n i e l M a n u f a c t u r i n g C o r p o r a t i o n UEM D eve l o p m e n t P h i l s . Met r o Pa c i f i c To l l w a y s C o r p o r a t i o n Min e r a l e s I n d u s t r i a s C o r p o r a t i o n MJ C I n ve s t m e n t s C o r p o r a t i o n Mo n d r a g o n I n t e r n a t i o n a l P h i l i p p i n e s . I n c. I n c o r p o r a t e d MR C A l l i e d I n d u s t r i e s . I n c. I n c. I n c. Got e s c o L a n d . I n c. Pri m e M e d i a H o l d i n g s .
Inc.com. Inc. EEI Corporation Empire East Land Holdings. Cebu Holdings. Euro-Med Laboratories Phil. Inc. Inc. Filsyn Corporation First Abacus Financial Holdings Corporation First Gen Corporation First Metro Investment Corporation First Philippine Holdings Corporation Forum Pacific. Dizon Copper-Silver Mines. Inc.net Holdings.. AJO. Inc. Inc. Inc. Inc. Energy Development (EDC) Corporation Eton Properties Philippines. Inc. GEOGRACE Resources Philippines. Grand Plaza Hotel Corporation Highlands Prime. Cyber Bay Corporation DFNN Inc. Export and Industry Bank. Arthaland Corporation Asia Amalgamated Holdings Corporation Asian Terminals. Globe Telecom. East Asia Power Resources Corporation EasyCall Communications Philippines. iPeople. Inc. Belle Corporation Benguet Corporation Benpres Holdings Corporation BHI Holdings. Inc. Incorporated Federal Resources Investment Group. Inc. ATR KimEng Financial Corporation Ayala Corporation Ayala Land. F & J Prince Holdings Corporation Far Eastern University. Inc. Inc. Filipino Fund. Soriano Corporation Abacus Consolidated Resources and Holdings. Digital Telecommunications Phils. Inc. Inc. Jollibee Foods Corporation Jolliville Holdings Corporation JTH Davies Holdings. Allied Banking Corporation Alsons Consolidated Resources. International Container Terminal Services. Inc. Inc. Inc. Keppel Philippines Marine. Centro Escolar University Century Peak Metals Holdings Corporation Chemical Industries of the Philippines. Inc. inc. Aboitiz Power Corporation Aboitiz Transport System (ATSC) Corporation Abra Mining and Industrial Corporation ABS-CBN Broadcasting Corporation ABS-CBN Holdings Corporation Acesite (Phils. Inc. GMA Holdings. Inc. Ginebra San Miguel. Inc. Inc. Apex Mining Co. Filinvest Development Corporation Filinvest Land.Listed Companies’ Certifications on Compliance with Corporate Governance Manuals (CGMs) Company 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37 38 39 40 41 42 43 44 45 46 47 48 49 50 51 52 53 54 55 56 57 58 59 60 61 62 A Brown Company. Island Information & Technology.. Atlas Consolidated Mining and Development Corporation ATN Holdings.. Inc. Inc. A. Inc. Inc. Inc. Inc. Inc. Aboitiz Equity Ventures. Inc. Ever-Gotesco Resources and Holdings. Inc. IPVG Corporation I-Remit. Araneta Properties. Inc. Anchor Land Holdings.. Inc. Inc. Inc. Inc. GMA Network. AsiaTrust Development Bank.) Hotel Corporation Active Alliance. Inc. Alaska Milk Corporation Alcorn Gold Resources Corporation Alliance Global Group. Inc. Inc. Banco Filipino Savings & Mortgage Bank Bank of the Philippine Islands Bankard. Fil-Estate Corporation Fil-Estate Land. Inc. Incorporated Cityland Development Corporation Citystate Savings Bank. Integrated Micro-Electronics. Chemrez Technologies. Information Capital Technology Ventures. ISM Communications Corporation JG Summit Holdings. Inc. Inc. Atok-Big Wedge Co. Incorporated Cebu Property Ventures and Development Corporation Central Azucarera de Tarlac. Keppel Philippines Holdings. Keppel Philippines Properties. Banco de Oro Unibank. Inc. Imperial Resources. Inc. House of Investments. Inc. Inc. Basic Energy Corporation BDO Leasing and Finance. City & Land Developers. Bogo-Medellin Milling Company. Inc. Inc. Inc. AGP Industrial Corporation AgriNurture. Inc. Interport Resources Corporation Ionics. Inc. Inc. Inc. DMCI Holdings. Inc. . Inc. With Submission Without Submission 42 Annual Report 2009 The Philippine Stock Exchange. Concrete Aggregates Corporation With Submission Without Submission 63 64 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83 84 85 86 87 88 89 90 91 92 93 94 95 96 97 98 99 100 101 102 103 104 105 106 107 108 109 110 111 112 113 114 115 116 117 118 119 120 121 122 123 124 Company Cosmos Bottling Corporation Crown Equities. Inc. Inc. Inc. China Banking Corporation Chinatrust (Phils. Inc. Inc. Leisure & Resorts World Corporation Lepanto Consolidated Mining Company Liberty Flour Mills. Inc. Holcim Philippines. Liberty Telecoms Holdings. Inc. Boulevard Holdings. Inc. Alliance Tuna International. Bacnotan Consolidated Industries. Inc. Gotesco Land. Anglo Philippine Holdings Corporation APC Group. Inc.) Commercial Bank Corporation CitisecOnline. Inc.
Oriental Petroleum and Minerals Corporation Pacific Online Systems Corporation Pacifica. MacroAsia Corporation Makati Finance Corporation Manchester International Holdings Unlimited Corporation Manila Broadcasting Company Manila Bulletin Publishing Corporation Manila Electric Company Manila Jockey Club. Vista Land & Lifescapes. Inc. Inc. Inc. United Paragon Mining Corporation Universal Rightfield Property Holdings. Inc. Inc. Manila Mining Corporation Manila Water Company. Tanduay Holdings. Incorporated Wise Holdings. Unioil Resources & Holdings Company. Inc. Inc. Prime Gaming Philippines. San Miguel Pure Foods Company. Inc. Inc. Inc.. Incorporated Wellex Industries. Inc. Inc. Inc.Company 125 126 127 128 129 130 131 132 133 134 135 136 137 138 139 140 141 142 143 144 145 146 147 148 149 150 151 152 153 154 155 156 157 158 159 160 161 162 163 164 165 166 167 168 169 170 171 172 173 174 175 176 177 178 179 180 181 182 183 184 185 186 187 188 189 190 191 192 193 194 195 196 With Submission Without Submission 197 198 199 200 201 202 203 204 205 206 207 208 209 210 211 212 213 214 215 216 217 218 219 220 221 222 223 224 225 226 227 228 229 230 231 232 233 234 235 236 237 238 239 240 241 242 243 244 245 246 247 248 249 250 251 Company With Submission Without Submission LMG Chemicals Corp. The Philippine Stock Exchange. Panasonic Manufacturing Philippines Corporation Pancake House. Inc. SPC Power Corporation Splash Corporation Sta. Inc. The Philodrill Corporation TKC Steel Corporation Trans-Asia Oil and Energy Development Corp. Inc. Inc. Vantage Equities. Inc. Rizal Commercial Banking Corporation Robinsons Land Corporation Roxas and Company. Sinophil Corporation SM Development Corporation SM Investments Corporation SM Prime Holdings. Marsteel Consolidated. Inc. Inc. MUSX Corporation National Reinsurance Corporation of the Philippines NextStage. Solid Group. Inc. Inc. PAL Holdings. Inc. PICOP Resources. San Miguel Corporation San Miguel Properties. The Philippine Stock Exchange. Inc. Pepsi-Cola Products Philippines. South China Resources. Inc. Prime Orion Philippines. Supercity Realty Development Corporation Swift Foods. Incorporated MRC Allied Industries. Inc. San Miguel Brewery. PetroEnergy Resources Corporation Petron Corporation Philcomsat Holdings Corporation Philex Mining Corporation Philippine Bank of Communications Philippine Estates Corporation Philippine Long Distance Telephone Company Philippine National Bank Philippine National Construction Corporation Philippine Racing Club. Inc. Victorias Milling Company. Prime Media Holdings. Inc. Sanitary Wares Manufacturing Corporation Seafront Resources Corporation Security Bank Corporation Semirara Mining Corporation Shang Properties. Inc. Inc. Inc. Inc. Megaworld Corporation Metro Alliance Holdings & Equities Corp. Inc. Inc. Inc. Inc. Inc. Roxas Holdings. Vitarich Corporation Vivant Corporation Vulcan Industrial & Mining Corporation Waterfront Philippines. Inc. Primetown Property Group. NiHao Mineral Resources International. Transpacific Broadband Group International. Zeus Holdings. Inc. Suntrust Home Developers. Union Bank of the Philippines. Inc. Inc. MEDCO Holdings. Manulife Financial Corporation Mariwasa SIAM Holdings. Southeast Asia Cement Holdings. Steniel Manufacturing Corporation Sun Life Financial Inc. Metro Pacific Investments Corporation Metro Pacific Tollways Corporation Metropolitan Bank & Trust Company MIC Holdings Corporation Minerales Industrias Corporation MJC Investments Corporation Mondragon International Philippines. Philippine Realty and Holdings Corporation Philippine Savings Bank Philippine Seven Corporation Philippine Telegraph and Telephone Corporation Philippine Tobacco Flue-Curing & Redrying Corporation Philippine Trust Company PhilWeb Corporation Phoenix Petroleum Philippines. Lodestar Investment Holdings Corporation Lorenzo Shipping Corporation Mabuhay Holdings Corporation Mabuhay Vinyl Corporation Macondray Plastics. Primex Corporation Pryce Corporation Republic Cement Corporation Republic Glass Holdings Corporation RFM Corporation Ripple E-Business International. Inc. Inc. Annual Report 2009 43 . Paxys. Inc. Inc. Inc. Inc. Inc. Lucia Land. Universal Robina Corporation Uniwide Holdings. Inc. Inc. Inc. Pilipino Telephone Corporation PNOC Exploration Corporation Polar Property Holdings Corporation Premiere Entertainment Philippines. Omico Corporation Oriental Peninsula Resources Group. UEM Development Phils.
Inc.PSE Board of Directors 44 Annual Report 2009 The Philippine Stock Exchange. Lim1 President and Chief Executive Officer Director and Treasurer Alejandro T. Tanco Director Member. Hans B. Gobing Director Director Member. David Ismael G. Cruz Director Eddie T. Corporate Governance Committee Eduardo L. Audit Committee Eusebio H. Tiangco2 Estrella C. Sicat Chairman Chairman. Elamparo3 Director . Audit and Corporate Governance Committees Omelita J. Yu Independent Director Member. Corporate Governance Committee Francisco Ed.
November 11. Panlilio Independent Director Chairman. 2010 to present 4. May 13. August 9. Chua Independent Director Member. March 10. 2009 5. Audit Committee Wilfred D. 2006 to March 10. Bernas Member. Son Keng Po Director Ma. 2009 to October 30. Vivian Yuchengco Director Member. 2010 2. Iliscupidez Director Anabelle L. May 13. Audit and Corporate Governance Committees John Aloysius S. September 16. Audit Committee Director Member. Audit and Corporate Governance Committees Vicente L. Encarnacion Assistant Corporate Secretary 4 Corporate Secretary 5 Corporate Secretary 6 The Philippine Stock Exchange. Audit and Corporate Governance Committees 1.Amor C. 2009 William L. Annual Report 2009 45 . Chua Director Amor C. 2010 3. Ang Atty. Inc. 2009 to October 30. 2009 to present 6. Governance Committee Corporate Audit and Governance Committees David O. Corporate Member. 2004 to February 15. Aissa V. Iliscupidez Director Member.
San Pedro (not in photo) VP and Head. Alora Marsha Matilde R. Technology Division Chief Technology Officer Susan L. 2007 to September 30. Suarez3 Senior Vice President and Chief Operating Officer President and Chief Executive Officer Francisco Ed.Management Committee 46 Annual Report 2009 The Philippine Stock Exchange. Refran Roy Joseph M. 4. Capital Markets Development Division Concurrent Head. 2004 to February 15. Tan Vice President and Head. 5. Market Regulation Division Assistant Vice President and Head. 2010 to present January 13. 6. Inc. Rubio Assistant Vice President and Head. 2010 *Joseph P. 2. Val Antonio B. Moreno5 Vice President and Head. Blanch 1. Corporate Governance Office Chief Risk Officer Marietta U. Lim1 Roel A. 3. Issuer Regulation Division 4 Jonathan DC. Rafols2 Senior Vice President and Chief Operating Officer Vice President and General Counsel Concurrent Head. 2010 October 1. 2007 to October 1. Corporate Services Division Enrico M. Trinidad Vice President and Head. 2010 March 19. Pepino6 Assistant Vice President and Internal Audit Officer Rachelle C. 2009 . Finance and Investments Division SCCP Chief Operating Officer Renee D. Market Regulation Division May 16. 2010 to present November 1. 2007 to February 28. Trading Participants Regulation Department OIC. 2009 January 18. Market Operations Division Jinky A. Serad Vice President and Head. 2007 to February 28. September 16.
Infrastructure and System Administration Jhoanna Maria Roxanne S. Trading Operations. Public and Investor Relations Section Head. Inc. Arellano Head. Modesto Tristan G. Bautista Head. Trading Operations. Oliveros Marie Grace A. Benavidez Head. Luarte Head. Prosecution and Enforcement Department Head. Listings Department The Philippine Stock Exchange. Annual Report 2009 OIC. Tektite Carlos C. Lacson Leonardo G. Human Resources Management Section Assistant Vice President and Head. Ayala Josielyn S. Gillego Precilla S. Rodriguez Head. Sandoval Assistant Vice President and Head. Disclosure Department Eliza S. Mamañgun Head. Accounting Department Elisa L. Human Resources and Administration Department 47 . Marketing Services Department Jo Ann G. Budget and Treasury Department Marsha Angelyn M. Arturo Head. Vilar Head. Market Surveillance Department OIC. Business Development Department Janet A. Encarnacion Head. Santos John Benette B. Corporate Planning and Research Section Elizabeth S. Quinitio Head.Department & Section Heads Officers-in-Charge Armando T. Resurreccion Head. Market Data Business Department Edwin G. Market Education Department Jose Antonio S.
Tiangco2 Director Director 1. Bautista Director The Philippine Stock Exchange. Bernas Director Eddie T. Inc. Gobing Director Estrella C. Atendido Director Alejandro T. 2009 to March 9. Director Jose C. Vitug Chairman Francisco Ed. Rubio Atty. 2004 to February 15. Son Keng Po Director and Treasurer Roberto A. Elamparo3 Cornelio T. 2010 2. Aissa V. Chua Director John Aloysius S. Peralta Omelita J. 2010 3. Encarnacion Corporate Secretary . September 16. 2010 to present Chief Operating Officer Renee D. March 9. July 1. Yu Director Anabelle L. Lim1 President and Chief Executive Officer Wilfred D.SCCP Board of Directors and Officers 48 Annual Report 2009 Emmanuel O.
Information Required by the Securities Regulation Code
General Nature and Scope of Business of Registrant and its Subsidiaries
The Philippine Stock Exchange, Inc. was incorporated on July 14, 1992 as a non-stock corporation. The Company became a stock corporation on August 3, 2001. On December 15, 2003, pursuant to the demutualization mandate of Republic Act No. 8799, or the Securities Regulation Code, the Company’s outstanding capital stock was listed by way of introduction. On February 18, 2004, the Company sold 6,077,505 shares from its unissued stock to five strategic investors by way of private placement that was approved by the Securities and Exchange Commission. The strategic investors were the PLDT Beneficial Trust Fund, SMC Retirement Fund, Government Service Insurance System, Kim Eng Investment, Ltd., and KE Strategic Pte. Ltd. The Company’s revenues are primarily derived from listing-related fees. The Company charges listing fees for initial public offerings and additional listings, and for annual listing maintenance. Other sources of revenue are membership, transaction, data feed, and miscellaneous fees, which include service fees. Membership and transaction fees are charged to trading participants while date feed fees are collected from data vendors. In addition, over a seven-year period beginning January 2005, the outstanding shares of Crescent West Development Corporation (CWDC), a subsidiary of Fort Bonifacio Development Corporation (FBDC) and the registered owner of a 2,182 square meter lot in Bonifacio Global City, will be transferred to the Company. In June 2007, the donation of all remaining CWDC shares was deferred pending negotiations among the Company, FBDC and Ayala Land, Inc. for the joint development of an iconic office building in Bonifacio Global City for the relocation of the and unified operations in equities and securities for the National Capital Region.
The Company is the registered owner of offices at the PSE Centre in Ortigas Center, Pasig City, and the PSE Plaza along Ayala Avenue, Makati City.
Principal market where the registrant’s common equity is traded: The common stock of the Company is listed on The Philippine Stock Exchange, Inc.
Subsidiary and Affiliates
The Securities Clearing Corporation of the Philippines (SCCP) is a wholly-owned PSE subsidiary organized primarily as a clearance and settlement agency for SCCP-eligible trades executed through the facilities of the PSE. SCCP is responsible for (a) synchronizing the settlement of funds for transactions of clearing members and the transfer of securities through Delivery versus Payment (DVP) clearing; (b) the administration of the Clearing and Trade Guaranty Fund (CTGF) and guaranteeing the settlement of trade though the implementation of its Fails Management System in the event of a Trading Participant’s default; and (c) performance of Risk Management and Monitoring to ensure final and irrevocable settlement. The Company is also a shareholder of the Philippine Dealing System Holdings Corporation (PDSHC), the holding company of the Philippine Dealing & Exchange Corporation (PDEX), otherwise known as the Fixed Income Exchange (FIE), the Philippine Depository & Trust Corp. (PDTC) and the Philippine Securities Settlement Corporation (PSSC). As of December 31, 2009, the Company is a stockholder of record of 1,311,439 shares, or 20.98 percent, of all of the issued and outstanding shares of PDSHC.
The high and low prices of the Company’s shares in the stock exchange for each quarter of fiscal years 2008 and 2009 are as follows:
2009 Q1 Q2 Q3 Q4 2008 Q1 Q2 Q3 Q4
High P174.00 P320.00 P350.00 P357.50 High P515.00 P372.00 P400.00 P360.00
Low P116.00 P170.00 P255.00 P300.00 Low P275.00 P275.00 P290.00 P109.00
The high and low prices of the Company’s shares in January March 2010 are P320.00 and P242.00, respectively. The stock price of the Company closed at P310.00 on March 11, 2010.
The Philippine Stock Exchange, Inc.
Annual Report 2009
Company’s headquarters, majority of the management offices
The number of shareholders of record as of February 26, 2010 is 249. Total shares outstanding as of February 26, 2010 is 30,555,005 shares with a par value of P1.00. The top 20 holders as of February 26, 2010 are as follows:
Annual Report 2009
Stockholder PCD Nominee Corp. PCD Nominee Corp. G.D. Tan & Company, Inc Ansaldo Godinez & Company, Inc. HSBC Securities (Phils.), Inc. A.T. De Castro Sec. Corp. Christfund Securities (Phils.), Inc. Rashid Hussain Securities (Phils.), Inc. Nomura Securities Phils., Inc. Sincere Securities Corporation BDO Securities Corporation Phil-Progress Securities Corporation Mandarin Securities Corp. Highland Securities, Phils., Inc. CLSA Philippines, Inc. Koo Kiao Go Chong, Jose Chan, Vicky l. Chia Kim Teck Chilip, Christopher L.
Nationality No. of Shares Amount Percentage Filipino 20,242,886 20,242,886.00 66.2506 Other Alien 4,043,139 4,043,139.00 13.2323 Fililpino 100,300 100,300.00 0.33 Filipino 100,000 100,000.00 0.33 Dutch 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33 Other Alien 100,000 100,000.00 0.33 Other Alien 100,000 100,000.00 0.33 Dutch 100,300 100,300.00 0.33 Filipino 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33 Dutch 100,300 100,300.00 0.33 Filipino 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33 Singaporean 100,000 100,000.00 0.33 Filipino 100,000 100,000.00 0.33
The Philippine Stock Exchange, Inc.
Dividends per Share: P8.80 in 2007. P20.00 in 2008. P8.00 in 2009. P10.00 in 2010, broken down as P3.40 regular dividend and P6.60 special cash dividend to stockholders of record as of March 25, 2010 and payable on April 21, 2010.
The Company adopts a policy for the declaration of a regular cash dividend out of the unrestricted retained earnings equivalent to 50 percent of the Company’s audited net income. The declaration of dividends is dependent on the cash flow and financial condition of the Company.
Recent Sale of Unregistered/Exempt Securities
On December 2, 2008, pursuant to the PSE Employee Stock Purchase Plan, the Company offered 50,000 shares to eligible employees. A total of 42,240 shares were actually subscribed by the employees. For the year 2009, the Company offered 57.760 shares to eligible employees, of which, 57,748 were availed of. To date, a total of 99,988 shares were actually subscribed by the employees.
Report of the Market Integrity Board
The Market Integrity Board (“MIB”) is pleased to report to the stockholders of the Exchange the results of its oversight of the regulatory functions of the Market Regulation Division (“MRD”). The MIB is the Exchange’s independent body exercising oversight authority and supervision over the regulatory activities of the MRD, including the promulgation of rules relating to audit, compliance and surveillance, adaptation for local conditions of best practices on governance among trading participants, and such other measures necessary to strengthen the self-regulatory functions of the Exchange. As an autonomous body, the decisions and actions of the MIB are not subject to review by the Exchange’s board of directors but may be appealed directly to the Securities and Exchange Commission (“SEC”). It has five regular members, including the chairman and the vice chairman, three of whom are not affiliated with the trading participants and include an independent director of the Exchange. The remaining two members are trading participant representatives who are not directors of the Exchange. Except for the chairman, all MIB members have alternates. In the year that just passed, the MIB successfully approved and endorsed to the Exchange’s board of directors as well as to the SEC, rules designed to further enhance investor protection and promote market transparency. These included rules for additional disclosure obligation of trading participants, as well as the rules for prosecution fund assistance to claimants of failed trading participants, the latter intended to extend financial assistance to claimants in the form of subsidy for legal costs. The MIB also resolved 29 cases, upon appeal by the relevant party. These included appeals on the regular audit findings of the MRD, investor complaints, and cases of unusual trading activities and trading irregularities. It was noted that the rules frequently violated by trading participants were on books and records, segregation of broker and dealer function, order ticket, the code of conduct and professional ethics for traders and salesmen, and the rules governing the trading of PSE shares. Except for the hiatus in the MIB during October of last year, brought about by the expiration of the term of the members thereof and a change in its composition, the MIB remained true to its mandate, carrying out its supervisory authority and enforcing the relevant rules and regulations of the Exchange. Nevertheless, the MIB continues to acknowledge the need to monitor and oversee the MRD in its regulation of the market, especially in these times of uncertainty. In continuing its mandate, the MIB once more commits itself, as it has always done so unfalteringly ever since its creation, to raise the bar for investor protection and to promote and preserve the market’s integrity. The year 2009 also saw the MIB spearheading the move for a possible spin-off of the regulatory functions of the Exchange, currently undertaken by the MRD, into a separate company to further ensure the regulatory independence of the Exchange’s audit, surveillance and compliance unit. In moving for the spin-off, the MIB recognized the need to establish the independence of the regulatory function of the Exchange thereby allowing the Exchange to devote more time in managing its trading and business functions.
CORNELIO T. PERALTA
The Philippine Stock Exchange, Inc.
Annual Report 2009
The Committee will carefully monitor that these risks be reviewed regularly and that the Exchange shall manage its risks effectively. and smoother linkages across operating units. The Corporate Governance Committee also approved proposed The Committee acknowledges that there are challenges to be addressed and a lot of work still needs to be done. the Committee approved and monitored the implementation of some internal systems and measures that will improve the delivery of services to all our stakeholders. The Committee believes that a strong governance structure. The work on the integrated work manual is a complementary step to minimizing operational risks and improving efficiencies within the PSE. 52 Annual Report 2009 amendments to the Listing and Disclosure Rules and the Corporate Governance Guidelines. Once completed and implemented. Over the past year. SICAT Chairman . the IFC. the OECD. In conducting its work. the Committee supported and approved the participation of the Exchange in several international conferences such as the OECD Asian Roundtable on Corporate Governance and Towards this end. One of these initiatives is the creation of the Maharlika Board which has gained a lot of support. The Corporate Governance Committee also approved the draft Board Protocol and the List of Matters Reserved for the Board to serve as a manual for the conduct of the Board.Report of the Corporate Governance Committee The Philippine Stock Exchange. it should also ensure consistency of processes. HANS B. I am pleased to report the steps undertaken by this Committee to further strengthen the Philippine Stock Exchange as an institution and promote good governance to all of its stakeholders. These documents are now under review by the Board. These conferences will help toward increasing confidence in the Exchange by providing information to the public about the Exchange’s initiatives in improving the stock market environment. These proposals aim to provide more relevant information to enable investors to come up with wellinformed investment decisions. the CGO submitted the top risks facing the company with corresponding measures to address these risks. the World Bank. Inc. the Asian and Oceanian Stock Exchanges Federation (AOSEF) Task Force on Corporate Governance during its general membership meeting in April 2009. the review of existing rules and proposed changes and the implementation of quarterly reviews. the Committee instructed the Corporate Governance Office (CGO) to review the risk management system of the Exchange. The committee also worked with the Audit Committee in initiating a review and update of the PSE’s integrated work manual. Coming out of the financial crisis. both locally and internationally. the Committee is guided by the goals of improving efficiency in operations. Committee”). finding the means necessary to increase confidence of investors and adding value for all its stakeholders through promoting good governance practices. On behalf of the Corporate Governance Committee (“The The Committee is also pleased to report that the approved quarterly review system has been effective in achieving its goal of improving the efficiency of the operations of the Exchange. and international fund managers. This system allowed departments to work more closely and coordinate well to implement the projects. AGCA. coupled with good working relationships with our stakeholders. These measures include risk management. These conferences allowed the Exchange to build good relationships with international entities such as other exchanges. After discussions with the different departments. is the key to achieving its goals.
and subject to the limitations on our roles and responsibilities referred to above. Annual Report 2009 53 . BERNAS Member VICENTE L. Based on the reviews and discussions undertaken. The Committee had eleven (11) meetings during the year. including Management’s Discussion and Analysis of Financial Condition and Results of Operations as of and for the year ended December 31. including consideration of management’s recommendation. VIVIAN YUCHENGCO Member OMELITA J. CHUA Member EUSEBIO H. The Committee also discussed the results of their audits and their assessment of the Company’s internal controls and the overall quality of the financial reporting process. ILISCUPIDEZ Member MA. These activities were performed in the following context: • Management has the primary responsibility for the financial statements and the reporting process. Inc. and its subsidiary.Report of the Audit Committee For the Year Ended December 31. PANLILIO Committee Chair ANABELLE L. April 5. TIANGCO Member The Philippine Stock Exchange. based on the review of their performance and qualifications. with management and SGV & Co. An independent director chairs the Audit Committee. 2009. TANCO Member AMOR C. The Committee recommended to the Board of Directors the re-appointment of SGV & Co. 2009 The Audit Committee reports the following: 1. 2009 in the Company’s Annual Report to the Stockholders and for filing with the Securities and Exchange Commission. SCCP. more than majority of the members were present in all these meetings. the Audit Committee recommended to the Board of Directors the inclusion of the Company’s audited consolidated financial statements as of and for the year ended December 31. JOHN ALOYSIUS S. The Committee reviewed and discussed the annual audited consolidated financial statements of the Exchange. 3. • The Committee discussed and approved the overall scope and the respective audit of SGV & Co. 2010. 4. • SGV & Co. as independent external auditor for 2009. 2. is responsible for expressing an opinion on the conformity of the Company’s annual audited consolidated financial statements with Philippine Financial Reporting Standards.
54 Annual Report 2009 .Statement of Management’s Responsibility for Financial Statements The Philippine Stock Exchange. Inc.
Inc. whether due to fraud or error. and their financial performance and their cash flows for each of the three years in the period ended December 31. Pasig City We have audited the accompanying financial statements of The Philippine Stock Exchange. Philippine Stock Exchange Centre Exchange Road. 2009 and 2008. This responsibility includes: designing. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management. 102-085-577 PTR No. Inc. the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances. whether due to fraud or error. and Subsidiary (the Group) and of The Philippine Stock Exchange. 2087532. as well as evaluating the overall presentation of the financial statements. Makati City March 10. Inc. (the Parent Company). and the consolidated and the parent company statements of comprehensive income. Inc. which comprise the consolidated and the parent company balance sheets as at December 31. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Opinion In our opinion. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement. 2009 in accordance with Philippine Financial Reporting Standards. but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. and a summary of significant accounting policies and other explanatory notes. In making those risk assessments. implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement. 2010. the financial statements present fairly. SYCIP GORRES VELAYO & CO. January 4. selecting and applying appropriate accounting policies. and making accounting estimates that are reasonable in the circumstances. in all material respects. including the assessment of the risks of material misstatement of the financial statements. Ramon D. Ortigas Center. the consolidated and the parent company statements of changes in equity and the consolidated and the parent company statements of cash flows for each of the three years in the period ended December 31. 46047 SEC Accreditation No. 55 The Philippine Stock Exchange. Annual Report 2009 Auditors’ Responsibility Our responsibility is to express an opinion on these financial statements based on our audits. Dizon Partner CPA Certificate No. 2009. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standards. the financial position of the Group and of the Parent Company as of December 31. 0077-AR-2 Tax Identification No.Independent Auditors’ Report The Stockholders and the Board of Directors The Philippine Stock Exchange. 2009 and 2008. The procedures selected depend on the auditor’s judgment. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. 2010 . We conducted our audits in accordance with Philippine Standards on Auditing.
637.393 112.676 P1.317.803 2.793 402.300.472.818.287 – – – 141.287 30.094.719 166.891 1.679.692 P100.000.481 674.Balance Sheets THE PHILIPPINE STOCK EXCHANGE.077 28.959.541.867 56 Annual Report 2009 P2.447 69.353.753.288.413.555.685.794.907.337.186.net (Note 12) Total Noncurrent Assets 2009 P393.621.328.899 509.000 16.340 28.857.541.270.056. Inc.527 30.789 P96.536 101. 5 and 7) Property and equipment (Notes 3 and 9) Investment in a subsidiary (Note 10) Investment in an associate (Note 10) Investments of clearing and trade guaranty fund (Note 11) Retirement asset (Note 21) Other assets .145 1.771.091.723 507. 4.283 = = = = See accompanying Notes to Financial Statements.735.881.730.196 1.414 = – 12.969 23.647 – – 37.349 487.868.637.000.000.545.855.465. 5 and 13) Income tax payable Deferred fees (Note 14) Total Current Liabilities Noncurrent Liability Retirement liability (Notes 21 and 26) Due to clearing and trade guaranty fund (Note 11) Total Noncurrent Liabilities Total Liabilities EQUITY Capital stock (Notes 1 and 16) Additional paid-in capital (Notes 16 and 26) Treasury stock (Note 16) Deposit for future stock subscription (Note 16) Retained earnings: Unappropriated (Note 16) Donated capital (Notes 15 and 16) Appropriated (Note 16) Net unrealized gain on available-for-sale investments (Note 7) Total Equity P108. 5 and 8) Other current assets Total Current Assets Noncurrent Assets Long-term available-for-sale investments (Notes 3.893.647 402.814 460.899.283 = = = = LIABILITIES AND EQUITY LIABILITIES Current Liabilities Accounts payable.897.651.401.845 P2.612 48.581.337 610.422.042.653 65.349 429.095.761.488 1.273 (68.395.621.852.632. 5 and 6) Short-term available-for-sale investments (Notes 4.422 69.915.000.459 19.607 408.373.000.389 108.317.635 110.439.786.240 450.393 106.470. .651.676 P1.289.332. accrued expenses and other current liabilities (Notes 4.999.000 15.356 – 106.434 451.814 10.261 387.206.881.488. 4.321.499.032.008) 5.584 6.414.400 532.130 P2.950. AND SUBSIDIARY BALANCE SHEETS December 31 Consolidated ASSETS Current Assets Cash and cash equivalents (Notes 4.607 – 52.191.422.022 = 9.488.542.719 141.285 452.007) 736.703.844.881 – 116.439.008) 5.766 626.377.585 71.784.993 (68.132.849.761 4.918 999.952 455.585 71.575 584.546.491 = 12.809.550 – 10.288.099.479.173 12.890 1.000 41.155 585.764.959.612 38.915.441 = 200.000 41.077.020.919.389.759 23.076 P1.603 P102.555.445.545.271 19.000.389 791.473. Parent Company 2009 P325.769 = 313.511 841.111.993 (68.824.702 = 29.130 P2.585 71.824 = 367.416 801.605 57.509 387.637.658.984 30.434 394.821.784.270 1.840 494.584 = 315.786.597.635 – 2.441 387.024 976.183.685.473.325.852.438 30.094.375.868.000.098. INC.585 71.000.525.999.264 125.012 387.554.076 P1.750.024 976. 5 and 7) Receivables (Notes 3.434.395.818.273 (68.824 455.555.244.007) 736.921 2008 P60.165 The Philippine Stock Exchange.763 1.637.542.165 1.847.793 2008 P132.918 999.389 124.
289.725 4.333 993.460.038) (20.582 – 437.297 21.591 309.530 8.990 3.258.154.000 5.388 38.666.390 = = = P6.615.197.738 73.294) P233.950 – 187.833 1.029 15.760.978.572.044 13.861.533 18.348 33.935 33.996 2.979.000 1.278 110.044 15.119 16.571 12. Inc.826 216.764 9.405.721.832.558 9.812.049 29.036 102.161.391 12.624.727 3.105.701.271.420.397.581.000 – 66.064 7.254 6.423 108.602 29.859 10.565.234 5.624.275 8.750 – 112.830.325.424 19.565.586.538 4.754.697.851 P358.080.394.455.190.784 7.514 14.696 433.494 238.752.972.418.405.553.105.694 17.591 127. AND SUBSIDIARY STATEMENTS OF COMPREHENSIVE INCOME 2009 OPERATING REVENUES Listing-related fees Listing Listing maintenance Processing Service fees Trading-related fees (Note 23) Transaction Block sales Data feed Subscription Other revenues (Notes 11 and 23) OTHER INCOME Interest (Notes 17 and 23) Dividend income Foreign exchange gain .599.638 128.796 (4.837.346 30.263) 14.037 144.565 9.270 4.170 11.587 112.807.665 97.662 15.872 21.207 4.701.643.702.678.201.912 3.243.071 3.368 – 236.000 1.391 12.Statements of Comprehensive Income THE PHILIPPINE STOCK EXCHANGE.345 = = 166.933 3.952 66.280.net TOTAL REVENUES EXPENSES Compensation and other related staff costs (Notes 18.404.910.638 116.760.536 7.000 2.452.851 37. 8 and 10) Other expenses EQUITY IN NET INCOME (LOSS) OF AN ASSOCIATE (Note 10) INCOME BEFORE INCOME TAX PROVISION FOR INCOME TAX (Note 20) NET INCOME OTHER COMPREHENSIVE INCOME Net gain (loss) on available-for-sale investments (Note 7) TOTAL COMPREHENSIVE INCOME Basic/Diluted Earnings Per Share (Note 22) See accompanying Notes to Financial Statements.120.446.112.874.250 3.810 38.375 601.291.579.492.041.934.014.552.062 343.000.411 10.533 18.849 27.426 30.500.155 774.701.920 P66.200.250 16.491.431.148.080.023 93.328.521.297 21.432.455 9.115 5.614 86.714 177.579.956.423.479.200.694 17.900 16.214.368 22.656.466 8.503 11.290.754.656.390 10.380 – 4.168 – 501.467 273.171.703 9.200.344.600.005.191 111.820.630.600.120.752.102.072.413 640.028 34.044.872 21.904.783.583 26.433.155.000 7.605.395 1.210.627 465.913 28.520.714 – – 58.747.691 – 2.245.074.452.875.453 755.773.411 3.364.837.029 15.418.000 7.545 153.398 25.000 1.011.262 4.531.062.000 2.728 33. Consolidated 2008 Years Ended December 31 Parent Company 2009 2007 2008 2007 P66.071 3.887.094 – 650.334 41.363.205.943.510 18.716 41.697.248 1.833 1.296 622.690.307.879.875 17.81 = P9.106. 166.780.607 535.812. 21 and 23) Occupancy costs (Note 19) Professional fees Depreciation (Note 9) Repairs and maintenance Telecommunication Taxes and licenses Amortization of computer software (Note 12) Travel and transportation Office expenses Membership development Foreign exchange loss .373 545.750 – 115.417 P172.037 131.097 166.973 4.386.647.175.743.270 5.397.664 190.922.197 297.161.274 281.684 = (41.864.491.446 3.927 38.902.318.395 1.146.279 344.792.965.18 = P365.851 P358.665 97.430 4.301.360 9.044 79.367.050 = 134.950 – 86.403 (41.680.545 38.568.514 16.451.662 15.384 291.000 3.490 207.100 17.210.157 318.097 1.910 58.186.698 P412.372.140 33.072.373 P277.042 301.536.544.760.387.783.342 9.402.961.904.104 = = The Philippine Stock Exchange.175.249.130 (4.119 15.651 P250.999 308.384 16.832.724 106.567 – 6.004 – 8.981 729.545 Annual Report 2009 57 .959.400.190.595 139.643.080.903.344 27.206.689) 423.725 5.165.263) 16.207 4.548.563 136.255 P233.552.050 P172.575.348 33.522.214.171.1249.156 29.243.701. INC.55 = P14.525.281.491.424 19.986 5.426.070.875 17.754.429 5.345 = = = 134.200.315.337.600 357.647.230.419.715.384 16.324 881.748.455.259 111.703.423.177 (4.483.000 3.245.692) (20.620 207.243.614.740) 25.774 132.680.009.032.net Donation and contributions Market development Provision for (recovery of) impairment losses (Notes 7.196.612 407.945.368 22.691 – 2.921.
466 – – 946.554.434 Share-based payment – – 1 Reissuance of treasury stock – – – Cash dividends – – – – Balances at December 31.261 = P285.603 = = P57.000.651.921 (5. THE PHILIPPINE STOCK EXCHANGE.506.359 736.692 = = – 25.702.513 = See accompanying Notes to Financial Statements.150.414.051 – – P976.582.698 = = .698 – (68.692) 250.349) Issuance of capital stock – 210.637.434.555.554.000.894 22.349 = (P2) = – (68.178.577.881.000.442.558.044) P– = P584.000 – – – P71.506.419.044.550.513 = – – – P15.042.544.434 = Unappropriated (Note 16) P487.277.000 = P16.000.000.434.442.637.000.942 = – – – P976.509 = P584.180 P2.585 = – – – – – P976.098) (15.480 = 291.585 = P71.206.277.000.008) = = = P5.735.488 P1. Statements ofAND SUBSIDIARY Changes in Equity STATEMENTS OF CHANGES IN EQUITY Additional Deposit for Paid-in Future Stock Treasury Subscription Capital Stock Capital Stock (Notes 1 (Notes 16 (Notes 16 and 16) and 26) (Note 16) and 26) Balances at January 1.883.400 – (305.000) – (305.585 = P387.637.422.390 – (1) – (134. INC.743.422.353 = = (20.993 (P68.637.277.024.000) P451.277.891 P1.024 P976.000 = P3.585 = – – – – – – P387.488 P1.942 = (P2) = (P1) = – (1) – P– = – – – (P68.874.008) = P5.024.582. 2007 P15.585 = P387.000 = Donated Capital (Notes 15 and 16) P387.942 = – – – 280.042.651 17.480 = P387. 2008 P30.000.024 = Balances at January 1.403 233.277.000 = – – 68.098) – – P16.150.511) P487.000.000. 2009 P30.606.000 = – – – P3. 2007 Total comprehensive income Acquisition of treasury stock Cash dividends Balances at December 31.585 = – – – P387.637.506.006) – – – 5.273 (P68.692 = = P78.918 P999.000.044) P57.007) = = = P736.000.555.422.920 P1.390 – (68.637.000.422.349 – – P15.786.301.740) 412.206. Annual Report 2009 Consolidated Retained Earnings Net Unrealized Gain on Available for-Sale Appropriated Investments Total (Note 16) (Note 7) P71.907.511 Balances at January 1.746.698 = = (41.479.394 = 433.349 = – – – – Total comprehensive income 96.606.915.513 = – – – – – 15.58 The Philippine Stock Exchange.000 = P3.006) – – – – P– = – – – 5.307. 2009 P30.180 P2.248 – – – (243.261 = 207.000) – – P41.771. 2008 Total comprehensive income Acquisition of treasury stock Appropriation during the year Share-based payment Cash dividends Stock dividends Balances at December 31.786.550. Inc.907.178.130 – (134.793 – – 1 – – (243.993 = P976.171.
222 P1.789 = P15.857.637.585 = – – P387.851.637.883.942 = (P2) = P– = (P1) = – (1) – P– = – – – (P68.349 – – (P2) = – (68.349 = – – – – Total comprehensive income 96.349 = – – – 5.349) Issuance of capital stock – 210.637.-2Parent Company Retained Earnings Additional Deposit for Paid-in Future Stock Treasury Subscription Capital Stock Capital Stock (Notes 1 (Notes 16 (Notes 16 and 16) and 26) (Note 16) and 26) Balances at January 1.277.513 = See accompanying Notes to Financial Statements.212 = 407.000.000.585 = P387.786. 2008 Total comprehensive income Acquisition of treasury stock Appropriation during the year Share-based payment Cash dividends Stock dividends Balances at December 31.000 = – – – – – – – – – – P41.012 = 207.038) 365.277.511 P3.703.441 = P411.858.255 233.000 = P3.558.398 – (134.000) (305.422.006) – – – 5.277.858.890 = P1.942 = – – – P976.585 = P71.000) P394.000.918 P999.703.277.921 – (5.191.637.786.000.674.008) = = = P5.000 – – – P71.943.000 = – – – P3.020.000.905.434 = Unappropriated (Note 16) P429.245.008) = P5.000 = P57.651.000.942 = – – 280.422.000 = Donated Capital (Notes 15 Appropriated and 16) (Note 16) P387.506.417.277.993 (P68.119 = = (20.434 Share-based payment – – 1 – Reissuance of treasury stock – – – – Cash dividends Balances at December 31. 2009 P30. 59 Annual Report 2009 .684 – 17.394.145 = P976.585 = P387.708.915.104 – (1) – (134.359 – 736.373 – (68.550. 2008 P30.555. 2007 P15. 2007 Total comprehensive income Acquisition of treasury stock Cash dividends Balances at December 31.555.024 P976.513 = – – – – 15.637.000.000.894 22.294) 277.890 P1.506.849.411 – (68. The Philippine Stock Exchange.821.442.178.044) P411.702.585 = – – – P387.100) – – P15.178 = Balances at January 1.000.571.849.429 – – – (243.928 = P1.422.289.851.637.466 – 946.845 = P78.903.012 = P247.000) P1.400 – (305.007) = = = P736.511) P429.044) P57.000 = – – 68.136.915.919.506.000.993 = P976.417.000.513 = – – – Balances at January 1.100) (15.881.020.585 = P71.550.000.273 (P68.614.845 = = 25.136.051 – – P976.000.442.666.006) P– = – – Net Unrealized Gain on Available for-Sale Investments Total (Note 7) P15.178 = = (41.928 P1.178.212 = – – – P387.793 – 1 – (243. 2009 P30.148.422.451.858 = 297.024 = P15. Inc.
344 493.827 Share-based payment expense (Note 26) Equity in net loss (income) of an (3.857.536 5.125.945.641) 126.96.36.1991) (93.595 = = (102.291.830.544.349 – 14.448 Interest received (53.350.120.048.454.237.544.237.454.457.000) (228.762) (294.536.700.655.530.186 4.969 – (84.301) and equipment Realized gain on sale of available-for (49.966.044.139) – 249.449.760 132.672 60.622 106.004 (17.132.533) (133.112) 5.405) (151.957.092.045) (372.954.396.611) 189.700.027.423) 33.214.251) – – (14.998 = = See accompanying Notes to Financial Statements.170 285.441 = 5.503 29.115 – 5.470.178.543 (19.047 – 422.000.337.003 changes Changes in operating assets and liabilities: Decrease (increase) in: 10.808) (112.156.000) – (309.583) 29.533) (133.368.278.636.940.450) P236.075. accrued expenses and 21.535 (133.454.280.407 186.680.862.447) 36.700.325.848 (68.263) 4.527.904) (108.147.214.053 570.769 P325.764) – – (13.728) (119.731 462.023 P437.077 (45.972.754 – 354.746 113.475.261.234 347.701.301) (17.754 – 433.878.229) 149.534 – (207.882) (133.760.132.814) Other current assets Increase (decrease) in accounts payable.044.864 Net cash generated from operations 82.540 150. Inc.015.183.422.116) (128.311.859 250.581.910.454.432.730) (223.750.292.408 114.200 346.578.000) – (7.725 1 (243.488.274) associate (Note 10) Loss (gain) on disposal of property (207.689 422.140) (112.826 = = (110.895 357.250) (171.525) (285.000.125.531.Statements of Cash Flows STATEMENTS OF CASH FLOWS Years Ended December 31 2009 CASH FLOWS FROM OPERATING ACTIVITIES P281.388 = = P60.175.975.176.056 P132.396.000.900 2.959.824 P185.646.257 9.109.493.438.530 1.478.330 104.000) (228.452.350.357) 14.025.971.845.904) (170.912.045) (89.273) (319.685 (85.769 P149.386.352.729.142.274) 261.550.000) – (566.112 312.773.343.388 34.011.783 65.116) – (312.169.243 (34.732.051 (44.543) 244.120.551) 14.701.659 873.014.051.484) – 203.774 P650.286) 60 Annual Report 2009 The Philippine Stock Exchange.900) 38.251 74.940.049 = (79.055.958 Receivables (4.000) 12.725 1 (243.295 2.312.947.473.584 = 5.612 873.267.000 338.427 312.254 10.271.969 – (185.311 (11.824 P393.058) (4. .730.701.332.346) Interest income 34.631 374.892.488.887.710.466 118.419.764 27.096.753) (33.738 = Income before income tax Adjustments for: (86.660.989 Net cash provided by operating activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale/maturities of: Available-for-sale investments (Note 7) Property and equipment (Note 9) Short-term investments Acquisitions of: Available-for-sale investments (Note 7) Property and equipment (Note 9) Computer software (Note 12) Short-term cash investments Decrease (increase) in other assets Additional investment in an associate (Note 10) Net cash provided by (used in) investing activities CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from share-based payment (Note 26) Acquisition (reissuance) of treasury stock (Note 16) Dividend payments (Note 16) Net cash used in financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR CASH AND CASH EQUIVALENTS AT END OF YEAR Consolidated 2008 2007 2009 Parent Company 2008 2007 P423.234 3.752) – 10.176.138 (34.942 82.045) (52.044 – – – – 582.882) (133.190) (33.044 – – – – 369.263) losses (Notes 7 and 8) 4.700.723.249.712 P501.085 – (659.671) 392.530.290.344.736.553.380.005.000) – (309.599 (11.571 Depreciation (Note 9) Amortization of computer 5.703) 28.748.696 3.422.801.230.489 (113.066) (4.337.441.000) (1.372.487) sale investments Operating income before working capital 229.969.926.792) 327.229.350.538 software (Note 12) Provision for (reversal of) impairment (4.000 361.045) (372.245) (92.564) 185.160.998 66.045 542.085 – 439.558 – (4.586.621.288) – – – (312.717 other current liabilities 257.081) (4.703.940.427 312.781.349 – (68.410. (113.851.274) 265.323) Income taxes paid 286.966.642.664) (106.
(the Parent Company or the Exchange) was incorporated in the Philippines on July 14. b. Securities Clearing Corporation of the Philippines (SCCP). SCCP was given a temporary license to operate by the SEC and started its commercial operations on January 3. and (3) risk monitoring and management. 2002. Inc. On January 28.077. = Annual Report 2009 Issuance of trading rights to brokers in recognition of the existing seat ownership by the brokers. The salient features of the demutualization plan approved by the SEC on August 3. the Parent Company’s shares of stock were listed by way of introduction of its outstanding shares to comply with the requirements mandated by the SRC. 8799 entitled “Securities Regulation Code” (SRC) and pursuant to a conversion plan approved by the Securities and Exchange Commission (SEC). The accompanying financial statements were authorized for issue by the BOD on March 10. 2003. e. To ensure compliance of clearing members.Notes to the Financial Statements THE PHILIPPINE STOCK EXCHANGE. On August 8. 2000. 2004. among others. 1992 as a non-stock corporation primarily to provide and maintain a convenient and suitable market for the exchange. Expenses related to the offering amounting to P21. Exchange Road. 2010. a 100% owned subsidiary of the Exchange. c. Corporate Information The Philippine Stock Exchange. On January 15. The Philippine Stock Exchange. the following: a. Pasig City. inclusive of additional paid-in capital of P720.4 million shall be treated as additional paid-in capital.00 per share as prescribed = = by Republic Act (RA) No. Gross proceeds from the private placement offering amounted to P726. The remaining balance of the Membership = Contributions account of P277. purchase and sale of all types of securities and other instruments. is a domestic corporation organized to carry out and strictly implement the following functions: (1) Delivery-versus-Payment trade settlement.8 million divided into 36.2 million representing premium = = over the par value of the common stock.” The registered office address of the Parent Company is Philippine Stock Exchange Centre. Ortigas Center. Subscription of each member of 50. Conversion of the Parent Company into a stock corporation by amending its Articles of Incorporation and by-laws.00 per share.505 unissued shares to the private sector as part of on-going efforts to comply with SRC’s mandate regarding the ownership of an Exchange (see Note 15). 2001.000 shares at P1. INC. Inc. Separation of ownership of shares and right to operate as a trading participant in the Exchange. the Parent Company was converted from a non-stock corporation to a stock corporation (demutualization) with an authorized capital stock of P36.1 million were recorded as a = reduction of the additional paid-in capital. AND SUBSIDIARY NOTES TO FINANCIAL STATEMENTS 1. d. SCCP is authorized by the SEC to impose fines and penalties and other sanctions as approved by SCCP’s board of directors (BOD).3 million. On December 15. 61 . the SEC approved SCCP’s request for a permanent license as a clearing agency subject to its compliance with the requirements of Section 42 of the SRC entitled “Registration of Clearing Agency. (2) fails management and administration of the Clearing and Trade Guaranty Fund (CTGF). The trading rights shall be transferable without time limitation. and Imposition of a moratorium on the issuance of the new trading rights. particularly the conversion of the Parent Company into a stock corporation.8 million shares at a par value of P1. 2001 include. the Parent Company offered 6.
The financial statements are presented in Philippine Peso (P).2. Customer Loyalty Programmes Philippine Interpretation IFRIC 16.Improving Disclosures about Financial Instruments. income and expenses and profits and losses resulting from intra-group transactions are eliminated in full in the consolidation. with non-owner changes in equity presented in a reconciliation of each component of equity. except for the following new and amended PFRS and Philippine Interpretations which the Group has adopted starting January 1. Subsidiaries are fully consolidated from the date of acquisition. for all financial instruments recognized at fair value. All significant intra-group balances. In addition. Embedded Derivatives Improvements to PFRSs (2008) 62 Annual Report 2009 The Philippine Stock Exchange. SCCP. and are prepared for the same reporting year as the Parent Company. . as well as significant transfers between levels in the fair value hierarchy. Hedges of a Net Investment in a Foreign Operation Philippine Interpretation IFRIC 18. 2009: PAS 1. Basis of Preparation The accompanying financial statements have been prepared on a historical cost basis. Control is achieved where the Group has the power to govern the financial and operating policies of an entity so as to obtain benefit from its activities. The amendments also clarify the requirements for liquidity risk disclosures with respect to derivative transactions and financial assets used for liquidity management. Inc. Transfers of Assets from Customers PAS 32 and PAS 1 Amendments . Changes in Accounting Policies and Disclosures The accounting policies adopted are consistent with those of the previous financial year. separates owner and non-owner changes in equity.Puttable Financial Instruments and Obligations Arising on Liquidation PFRS 1 and PAS 27 Amendments . being the date on which the Group obtains control. Summary of Significant Accounting Policies Statement of Compliance The consolidated financial statements of the Parent Company and SCCP (collectively referred to as the Group) and of the Parent Company have been prepared in compliance with Philippine Financial Reporting Standards (PFRS). Presentation of Financial Statements.Cost of an Investment in a Subsidiary. The fair value measurement disclosures are presented in Note 5. by class. either in one single statement. using consistent accounting policies. or in two linked statements. Borrowing Costs (Revised) PFRS 8. The Group has elected to present one single statement comprehensive income. Operating Segments Philippine Interpretation IFRIC 13. the standard introduces the statement of comprehensive income: it presents all items of recognized income and expense. The statement of changes in equity includes only details of transactions with owners. Jointly Controlled Entity or Associate PFRS 2 Amendment . transactions. PFRS 7 Amendments . except for available-for-sale (AFS) investments and the investments of CTGF that have been measured at fair value. require additional disclosures about fair value measurement and liquidity risk. Presentation of Financial Statements (Revised) PAS 23. a reconciliation between the beginning and ending balance for level 3 fair value measurements is now required. and continue to be consolidated until the date that such control ceases. Standards or interpretations that have been adopted and that are deemed to have an impact on the financial statements or performance of the Group are described below: PAS 1.Vesting Conditions and Cancellations PFRS 7 Amendments . In addition. which is also the presentation and functional currency of the Parent Company.Improving Disclosures about Financial Instruments Philippine Interpretation IFRIC 9 and PAS 39 Amendments. Fair value measurements related to items recorded at fair value are to be disclosed by source of inputs using a three level fair value hierarchy. = Basis of Consolidation The consolidated financial statements include the financial statements of the Parent Company and its wholly owned subsidiary.
Annual Report 2009 63 . clarifies that the contribution of a business on formation of a joint venture and combinations under common control are not within the scope of PFRS 2 even though they are out of scope of PFRS 3 (Revised). the initial recognition and subsequent measurement of a contingent consideration and business combinations achieved in stages. Construction Contracts. The amendments are effective for annual periods beginning January 1. It requires that revenue on construction of real estate be recognized only upon completion. PFRS 2. adopts a full management approach to reporting segment information. amendments to standards and improvements to standards issued but not effective up to the date of issuance of the Group’s financial statements are listed below. Hence. This also covers the designation of inflation as a hedged risk or portion in particular situations. The changes by PFRS 3 (Revised) and PAS 27 (Amended) will affect future acquisitions or loss of control of subsidiaries and transactions with non-controlling interests. adoption of this standard did not have any effect on the financial statements of the Group.Group Cash-settled Share-based Payment Transactions. except when such contract qualifies as construction contract to be accounted for under PAS 11. 2009. Consolidated and Separate Financial Statements (Amended). Improvements to PFRSs The omnibus amendments to PFRSs issued in 2009 were issued primarily with a view to removing inconsistencies and clarifying wording. The information reported would be that which management uses internally for evaluating the performance of operating segments and allocating resources to those segments. or involves rendering of services in which case revenue is recognized based on stage of completion. Furthermore. Changes affect the valuation of non-controlling interest. 2009. the reported results in the period that an acquisition occurs and future reported results. is effective for annual periods beginning on or after July 1. and when to derecognize the asset and liability. PFRS 3 (Revised) will be applied prospectively while PAS 27 (Amended) will be applied retrospectively with a few exceptions. Business Combinations (Revised) and PAS 27. Philippine Interpretation IFRIC 15. is effective for annual periods beginning on or after January 1. It clarifies that an entity is permitted to designate a portion of the fair value changes or cash flow variability of a financial instrument as a hedged item. Inc. These changes will impact the amount of goodwill recognized. interpretations. The interpretation clarifies when to recognize a liability. PAS 39 Amendment . replaces PAS 14. The Philippine Stock Exchange.Eligible Hedged Items. nor will it give rise to a gain or loss. Operating Segments. Standards. There are separate transitional provisions for each standard. Therefore. PFRS 3 (Revised) introduces significant changes in the accounting for business combinations occurring after this date. 2009 with early application permitted. PAS 27 (Amended) requires that a change in the ownership interest of a subsidiary (without loss of control) is accounted for as a transaction with owners in their capacity as owners. Philippine Interpretation IFRIC 17. 2009. 2010. It provides guidance on how to account for non-cash distributions to owners. The omnibus amendments to PFRSs issued in 2008 were issued primarily with a view to removing inconsistencies and clarifying wording. such transactions will no longer give rise to goodwill. It clarifies the scope and the accounting for group cash-settled share-based payment transactions. The Group determined that the operating segments under PFRS 8 are similar to the business segments previously identified under PAS 14. is effective for annual periods beginning on or after July 1. PFRS 2 Amendments . It covers accounting for revenue and associated expenses by entities that undertake the construction of real estate directly or through subcontractors. is effective for annual periods beginning on or after July 1. PFRS 8. The amendment is effective for financial years on or after July 1. Improvements to PFRSs (2008). The adoption of the improvements resulted in changes in accounting policies but did not have any impact on the financial position or performance of the Group. is effective for annual periods beginning on or after January 1. Segment Reporting. 2010 except as otherwise stated. Interpretations and Amendments to Standards PFRS 3. 2012. Share-based Payment. the accounting for transaction costs. how to measure it and the associated assets. Agreement for Construction of Real Estate. Distributions of Non-Cash Assets to Owners. Standards Issued but not yet Effective Standards. the amended standard changes the accounting for losses incurred by the subsidiary as well as the loss of control of a subsidiary. Contracts involving provision of services with the construction materials and where the risks and reward of ownership are transferred to the buyer on a continuous basis will also be accounted for based on stage of completion.
states that. PAS 39. 64 Annual Report 2009 The Philippine Stock Exchange. Prior to the amendment. clarifies that the largest unit permitted for allocating goodwill. clarifies the following: a. The disclosure requirements of other PFRS only apply if specifically required for such non-current assets or discontinued operations. documentation and effectiveness requirements of PAS 39 that relate to a net investment hedge are satisfied. as long as the designation. Presentation of Financial Statements. . PAS 7. Noncurrent Assets Held for Sale and Discontinued Operations. The amendments will be applied retrospectively. PAS 38. that a prepayment option is considered closely related to the host contract when the exercise price of a prepayment option reimburses the lender up to the approximate present value of lost interest for the remaining term of the host contract. Inc. b. acquired in a business combination. explicitly states that only expenditure that results in a recognized asset can be classified as a cash flow from investing activities. Philippine Interpretation IFRIC 16. PAS 1. and not derivative contracts where further actions by either party are still to be taken. to embedded derivatives in contracts acquired in a business combination between entities or businesses under common control or the formation of joint venture. Intangible Assets. Also clarifies that the valuation techniques presented for determining the fair value of intangible assets acquired in a business combination that are not traded in active markets are only examples and are not restrictive on the methods that can be used. the acquirer may recognize the group of intangible assets as a single asset provided the individual assets have similar useful lives. clarifies that if an intangible asset acquired in a business combination is identifiable only with another intangible asset. clarifies that segment assets and liabilities need only be reported when those assets and liabilities are included in measures that are used by the chief operating decision maker. PFRS 8. Operating Segments. removes the specific guidance on classifying land as a lease. amendments to standards and improvements to standards to have a significant impact on its financial statements. at anytime. PAS 36. in its settlement by the issuance of equity instruments at the option of the counterparty do not affect its classification. Hedge of a Net Investment in a Foreign Operation. PAS 17. is the operating segment as defined in PFRS 8 before aggregation for reporting purposes. leases of land were classified as operating leases. The amendment now requires that leases of land are classified as either ‘finance’ or ‘operating’ in accordance with the general principles of PAS 17. that the scope exemption for contracts between an acquirer and a vendor in a business combination to buy or sell an acquiree at a future date applies only to binding forward contracts. PFRS 5. Reassessment of Embedded Derivatives. clarifies that it does not apply to possible reassessment at the date of acquisition. in a hedge of a net investment in a foreign operation. Philippine Interpretation IFRIC 9. and that gains or losses on cash flow hedges of a forecast transaction that subsequently results in the recognition of a financial instrument or on cash flow hedges of recognized financial instruments should be reclassified in the period that the hedged forecast cash flows affect profit or loss. Leases. The Group does not expect the adoption of these new standards. including the foreign operation itself. c. clarifies that the disclosures required in respect of non-current assets and disposal groups classified as held for sale or discontinued operations are only those set out in PFRS 5. qualifying hedging instruments may be held by any entity or entities within the group. Impairment of Assets. Financial Instruments: Recognition and Measurement. clarifies that the terms of a liability that could result. Statement of Cash Flows. interpretations.
Financial assets and liabilities are recognized initially at fair value. the Group recognizes the difference between the transaction price and fair value (a Day 1 difference) in the statement of comprehensive income unless it qualifies for recognition as some other type of asset.Initial Recognition and Subsequent Measurement Date of Recognition. without any deduction for transaction costs. the fair value is determined by using appropriate valuation techniques. and AFS investments. The classification depends on the purpose for which the investments were acquired and whether they are quoted in an active market. For each transaction. The Group determines the classification at initial recognition and. the entity becomes a party to the contractual provisions of the instrument. and other relevant valuation models. Financial assets and liabilities at FVPL include financial assets or liability held for trading and financial assets and liabilities designated upon initial recognition as at FVPL. Where the transaction price in a non-active market is different from the fair value based on other observable current market transactions in the same instrument or based on a valuation technique whose variables include only data from observable market. An embedded derivative is a component of a hybrid (combined) instrument that also includes a non-derivative host contract with the effect that some of the cash flows of the combined instrument vary in a way similar to a stand-alone derivative. Regular way purchases and sales are purchases or sales of financial assets that require delivery of assets within period generally established by regulation or convention in the market place. The Group recognizes a financial asset or a financial liability on its balance sheet when. Financial assets or liabilities are classified as held for trading if they are acquired or incurred for the purpose of selling or repurchasing in the near term. Transaction costs are included in the initial measurement of all financial assets and liabilities. the difference between the transaction price and model value is recognized in the statement of comprehensive income only when the inputs become observable or when the instrument is derecognized. Annual Report 2009 65 The Philippine Stock Exchange. highly liquid investments that are readily convertible to known amounts of cash with original maturities of three months or less from dates of placement and are subject to an insignificant risk of change in value. re-evaluates this designation at every reporting date. Initial Recognition. the price of the most recent transaction provides evidence of the current fair value as long as there has not been a significant change in economic circumstances since the time of the transaction. Financial assets are classified into the following categories: financial asset at fair value through profit or loss (FVPL). Financial Assets and Liabilities at FVPL. In cases where use is made of data which is not observable. or (c) the financial asset and liability contains an embedded derivative that would need to be separately recorded. comparison to similar instruments for which market observable prices exist. For all other financial instruments not listed in an active market. The fair value for financial instruments traded in active markets at the balance sheet date is based on their quoted market price or dealer price quotations. the Group determines the appropriate method of recognizing the Day 1 difference amount. options pricing models. Determination of Fair Value. loans and receivables. All regular way purchases and sales of financial assets are recognized on the trade date. Day 1 Difference. Cash equivalents are short-term. in accordance with a documented risk management strategy. Financial assets and liabilities are designated at initial recognition as at FVPL if any of the following criteria are met: (a) the designation eliminates or significantly reduces the inconsistent treatment that would otherwise arise from measuring the assets or liabilities or recognizing gains or losses on them on a different basis. or (b) the assets or liabilities are part of a group of financial assets or a group of financial liabilities which are managed and their performance evaluated on a fair value basis. which is the date that the Group commits to purchase the asset. held-tomaturity (HTM) investments.Summary of Significant Accounting Policies Cash and Cash Equivalents Cash includes cash on hand and in banks. When current bid and asking prices are not available. where allowed and appropriate. Financial Instruments . Financial liabilities are classified either as financial liabilities at FVPL or other financial liabilities at amortized cost. Inc. and only when. Valuation techniques include net present value techniques. except for financial assets and liabilities measured at FVPL. .
Other Financial Liabilities. these are classified as noncurrent assets. Included under this category are the Group’s investments in government securities and investment in golf club shares. Otherwise. A separate instrument with the same terms as the embedded derivative would meet the definition of a derivative. and may be sold in response to liquidity requirements or changes in market conditions. On derecognition or impairment. Included under this category are the Group’s cash and cash equivalents. As of December 31. AFS investments are subsequently measured at fair value. The Philippine Stock Exchange. the Group has no financial assets and liabilities classified as financial assets and liabilities at FVPL. Gains and losses are recognized in the statement of comprehensive income when the loans and receivables are derecognize and impaired. Loans and Receivables. They are not entered into with the intention of immediate or short-term resale and are not classified or designated as AFS financial assets or financial assets at FVPL. and The hybrid or combined instrument is not recognized at FVPL. Where the Group sells other than an insignificant amount of HTM investments. 2009 and 2008. AFS investments are those which are designated as such or do not qualify to be classified or designated as financial assets at FVPL.The Group assesses whether embedded derivatives are required to be separated from the host contracts when the Group first becomes a party to the contract. Embedded derivatives that are bifurcated from the host contracts are accounted for as financial assets at FVPL. accrued interest receivable. Issued financial instruments or their components. the cumulative fair value gains and losses previously reported in equity are transferred to the statement of comprehensive income. these are classified as noncurrent assets. Amortized cost is calculated by taking into account any discount or premium on acquisition and fees that are an integral part of the effective interest rate. Loans and receivables are non-derivative financial assets with fixed or determinable payments and are not quoted in an active market. Inc. HTM investments or loans and receivables. as well as through the amortization process. As of December 31. less impairment in value. 2009 and 2008. HTM investments are quoted non-derivative financial assets with fixed or determinable payments and fixed maturities for which the Group’s management has the positive intention and ability to hold to maturity. Reassessment only occurs if there is a change in the terms of the contract that significantly modifies the cash flows that would otherwise be required. After initial measurement. Gains and losses are recognized in the statement of comprehensive income when the HTM investments are derecognized and impaired. AFS investments are classified as current assets if management intends to sell all these financial assets within 12 months from balance sheet date. dividends receivable and other receivables. Changes in fair values are included in the statement of comprehensive income. Fair value gains and losses are reported as a separate component in equity until the investment is derecognized or the investment is determined to be impaired at which time the cumulative gain or loss previously reported in equity is recognized in the statement of comprehensive income. the Group has no financial assets classified as HTM investments. receivables. the entire category would be tainted and reclassified as AFS investments. Amortization is determined using the effective interest method and is included under interest income in the statement of comprehensive income. Otherwise. which are not designated at FVPL are classified as other financial liabilities. An embedded derivative is bifurcated/separated from the host financial or non-financial asset contract and accounted for as a derivative if all of the following conditions are met: The economic characteristics and risks of the embedded derivative are not closely related to the economic characteristic of the host contract. They are purchased and held indefinitely. After initial measurement. Loans and receivables are classified as current assets if maturity is within 12 months from balance sheet date. HTM Investments. Such assets are carried at cost or amortized cost in the balance sheet. as well as through the amortization process. AFS Investments. these investments are subsequently measured at amortized cost using the effective interest rate method. where the substance of the contractual arrangement results in the Group having an obligation either 66 Annual Report 2009 .
to deliver cash or another financial asset to the holder. the fair value of a debt instrument increased and the increase can be objectively related to an event occurring after the impairment loss was recognized in the statement of comprehensive income. if any. The amount of the reversal is recognized in the statement of comprehensive income. accrued expenses and other current liabilities. other financial liabilities are subsequently measured at amortized cost using the effective interest rate method. If a future write-off is later recovered. The amount of the loss is charged to the statement of comprehensive income. Amortized cost is calculated by taking into account any related premium. A financial asset or a group of financial asset is deemed to be impaired. Increases in fair value after impairment are recognized directly in equity. the reversal is recognized in the statement of comprehensive income under Other income account. Where there is evidence of impairment. this would include a significant or prolonged decline in the fair value of the investments below its cost. If. Impairment of Financial Assets The Group assesses at each balance sheet date whether a financial asset or a group of financial assets is impaired. If in a subsequent year. the probability that they will enter bankruptcy or other financial reorganization and where observable data indicate that there is measurable decrease in the estimated future cash flows. default or delinquency in interest or principal payments. Future interest income is based on the reduced carrying amount and is accrued based on the rate of interest used to discount future cash flows for the purpose of measuring impairment loss. If subsequently. After initial measurement. has been realized or has been transferred to the Group. In case of equity investments. whether significant or not. Any subsequent reversal of an impairment loss is recognized in the statement of comprehensive income under Provision for (reversal of) impairment losses account. or to satisfy the obligation other than by the exchange of a fixed amount of cash or another financial asset for a fixed number of own equity shares. in a subsequent period. Inc. Evidence of impairment may include indications that the borrower or a group of borrowers is experiencing significant financial difficulty. Annual Report 2009 67 . Included under this category are the Group’s accounts payable (excluding taxes payables). the amount of the impairment loss decreases and the decrease can be related objectively to an event occurring after the impairment was recognized. In the case of debt instruments. discount and any directly attributable transaction costs. Impairment losses on equity investments are not reversed through the statement of comprehensive income. the previously recognized impairment loss is reversed by adjusting the allowance account. the previously recognized impairment loss is increased or reduced by adjusting the Allowance for impairment losses account. The Philippine Stock Exchange. If there is objective evidence that an impairment loss on loans and receivables has been incurred. Loans together with the associated allowance are written off when there is no realistic prospect of future recovery and all collateral. less any impairment loss on that financial asset previously recognized in the statement of comprehensive income – is removed from equity and recognized in the statement of comprehensive income. impairment is assessed based on the same criteria as financial assets carried at amortized cost. such as changes in arrears or economic conditions that correlate with defaults. the impairment loss is reversed through the statement of comprehensive income. Interest income continues to be accrued on the reduced carrying amount based on the original effective interest rate of the asset. there is objective evidence of impairment as a result of one or more events that has occurred after the initial recognition of the asset (an incurred loss event) and that loss event has an impact on the estimated future cash flows of the financial asset or a group of financial assets that can be reliably estimated. AFS Investments. if and only if. it includes the asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for impairment. the amount of the loss is measured as the difference between the carrying amount and the present value of estimated future cash flows (excluding future credit losses that have not been incurred) discounted at the current market rate of return for a similar financial asset. Loans and receivables that are individually assessed for impairment and for which an impairment loss is or continues to be recognized are not included in the collective assessment of impairment. the cumulative loss – measured as the difference between the acquisition cost and the current fair value. The Group first assesses individually whether objective evidence of impairment exists individually for financial assets that are individually significant or collectively for financial assets that are not individually significant. If the Group determines that no objective evidence of impairment exists for an individually assessed financial asset. The carrying amount of the asset is reduced through the use of an allowance account. Financial Assets Carried at Amortized Cost. to the extent that the carrying value of the asset does not exceed its amortized cost at the reversal date. Such accrual is recorded as part of interest income in the statement of comprehensive income. the amount of the estimated impairment loss increases or decreases because of an event occurring after the impairment was recognized.
Investments in government securities are recorded and accounted for as AFS investments and are carried at fair value. The assets of the funds are invested in government securities. Income and expenses related to the funds are credited to or charged against the fund balances. there is a currently enforceable legal right to offset the recognized amounts and there is an intention to settle on a net basis. (c) the Group has transferred its rights to receive cash flows from the asset and either has transferred substantially all the risks and rewards of the asset. and the difference in the respective carrying amounts is recognized in the statement of comprehensive income. The EUL of the depreciable assets are as follows: Buildings Building improvements 25 years 10 years 68 Annual Report 2009 . This is not generally the case with master netting agreements. but has transferred control of the asset. the fund assets and the corresponding fund liabilities are shown under the assets and liabilities sections. Offsetting of Financial Instruments Financial assets and financial liabilities are offset and the net amount is reported in the balance sheet if. and has neither transferred nor retained substantially all the risks and rewards of the asset nor transferred control of the asset. Inc. Expenditures incurred after the property and equipment have been put into operation. where the related assets and liabilities are presented gross in the balance sheet. The initial cost of property and equipment comprises of its purchase price and any directly attributable costs of bringing the asset to its working condition and location for its intended use. and only if. Depreciation is calculated on the straight-line method over the estimated useful life (EUL) of the depreciable assets. cancelled or expires. such an exchange or modification is treated as a derecognition of the original liability and the recognition of a new liability. respectively. are charged against current operations. such as repairs and maintenance. In situations where it can be clearly demonstrated that the expenditures have resulted in an increase in the future economic benefits expected to be obtained from the use of an item of property and equipment beyond its originally assessed standard of performance. or has neither transferred nor retained substantially all the risks and rewards of the asset. Financial liabilities are derecognized when the obligations under the liability is discharged.Derecognition of Financial Assets and Liabilities Financial assets are derecognized when (a) the rights to receive cash flows from the asset have expired. the asset is recognized to the extent of the Group’s continuing involvement in the asset. The unrealized gains and losses arising from the fair valuation of AFS investments are excluded from reported earnings and reported as a separate component of accumulated income of due to CTGF. An item of property and equipment is derecognized upon disposal or when no future economic benefits are expected from its use or disposal. Where the Group has transferred its rights to receive cash flows from an asset or has entered into a pass-through arrangement. For financial statements presentation. The Philippine Stock Exchange. The CTGF is a risk management tool designed to protect the market against the settlement risks of clearing members. Where an existing financial liability is replaced by another from the same lender on substantially different terms. which are held for the purpose of investing in liquid funds. Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal proceeds and the carrying amount of the asset) is included in the statement of comprehensive income in the year the asset is derecognized. (b) the Group retains the right to receive cash flows from the asset. or to realize the asset and settle the liability simultaneously. of the balance sheet. Continuing involvement that takes the form of a guarantee over the transferred asset is measured at the lower of the original carrying amount of the asset and the maximum amount of consideration that the Group could be required to repay. the expenditures are capitalized as an additional cost of property and equipment. but has assumed an obligation to pay them in full without material delay to a third party under a pass-through arrangement or. Property and Equipment Property and equipment are stated at cost less accumulated depreciation and any impairment in value. or the terms of an existing liability are substantially modified. The funds are held in trust by SCCP for the account of the clearing participants. Investments of CTGF The CTGF represents contributions of the Exchange and the clearing members as well as interest income earned thereon.
the asset’s recoverable amount is estimated. when applicable. the Group determines whether it is necessary to recognize an additional impairment loss on the Group’s investment in the associate. Annual Report 2009 69 The Philippine Stock Exchange. The Group determines at each balance sheet date whether there is any objective evidence that the investment in the associate is impaired. The statement of comprehensive income reflects the share of the results of operations of the associate. Unrealized gains and losses resulting from transactions between the Group and the associate are eliminated to the extent of the interest in the associate. This is the profit (loss) attributable to equity holders of the associate and therefore is profit (loss) after tax and minority interests in the subsidiaries of the associates. Computer software development costs recognized as assets are amortized using the straight-line method over their EUL. Computer Software Costs associated with developing or maintaining computer software programs are recognized as expense when incurred. After application of the equity method. and investment in subsidiary and associate. or whether there is any indication that an impairment loss previously recognized for an asset in prior years may no longer exist or may have decreased. adjustments are made to bring the accounting policies in line with those of the Group. the investment in an associate is carried in the balance sheet at cost plus post acquisition changes in the Group’s share of net assets of the associate. Where there has been a change recognized directly in the equity of the associate. If this is the case. Where necessary. less any impairment in value. in the statement of changes in equity. Investment in an Associate The investment in an associate is accounted for using the equity method of accounting in the consolidated financial statements and accounted for at cost less any impairment in value in the parent company financial statements. the Group calculates the amount of impairment as the difference between the recoverable amount of the associate and its carrying value and recognizes the amount in the statement of comprehensive income. The share of profit (loss) of associates is shown on the face of the statement of comprehensive income. An associate is an entity in which the Group has significant influence. Inc. Goodwill relating to the associate is included in the carrying amount of the investment and is not amortized or separately tested for impairment. If any such indication exists. Impairment of Nonfinancial Assets An assessment is made at each balance sheet date as to whether there is any indication of impairment of any property and equipment. Investment in a Subsidiary Investment in SCCP in the parent company financial statements is carried at cost. Costs that are directly associated with identifiable and unique software controlled by the Group and will generate economic benefits exceeding costs beyond one year. are recognized as intangible assets. The financial statements of the associate are prepared for the same reporting period as the Parent Company. An asset’s recoverable amount is calculated as the higher of the asset’s value in use or its net selling price. computer software. the Group recognizes its share of any changes and discloses this. but not exceeding a period of seven (7) years. Expenditure which enhances or extends the performance of computer software programs beyond their original specifications is capitalized and added to the original cost of the software. fixtures and communication equipment Utilities and others 5 years 3 years 3 to 5 years 2 to 5 years 2 years The depreciation method and EUL are reviewed periodically to ensure that the method and period of depreciation are consistent with the expected pattern of economic benefits from items of property and equipment.Transportation equipment Trading system equipment Computer hardware and peripherals Office furniture. An impairment loss is charged against operations in the year in which it arises. An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable amount. Under the equity method. .
Revenue is recognized when the services are rendered or when penalties or fines are charged. late submission of requirements. The Group recognizes immediately the net actuarial losses or gains of the current year and past service cost or reduction in the past service cost of the current year to the extent that they exceed any reduction or increase in the present value of the economic benefits.A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the recoverable amount of an asset. Trading-related and Service Fees. administered by trustees. Revenue Recognition Revenue is recognized to the extent that it is probable that the economic benefits will flow to the Group and the revenue can be reliably measured. Interest Income. Any reversal of an impairment loss is credited to current operations. Processing. listing maintenance fees and data feed fees which are billed and collected but not yet earned as of balance sheet date. The defined benefit obligation is calculated annually by an independent actuary. The present value of the defined benefit obligation is determined by discounting the estimated future cash outflows using interest rates of government bonds that are denominated in the currency in which the benefits will be paid. The additional listing fees are recognized upon the listing of new securities issued by an applicant. Revenue is recognized when the related services are rendered. Dividend income is recognized when the Group’s or the Parent Company’s right to receive the dividend payment is established. Interest income includes the amortization of any discount or premium or other differences between the initial carrying amount of an interest bearing instrument and its amount at maturity calculated on an effective interest rate basis. The annual listing fees are recognized on an accrual basis based on an agreement. This account is reversed and recognized as revenue when services are rendered. The following specific recognition criteria must also be met before revenue is recognized: Listing Fees. Listing fees for initial public offering are recognized upon listing of an applicant. the recoverable amount is determined for the cash generating units to which the asset belongs. and that have terms to maturity approximating the terms of the related retirement liabilities. Dividend Income. Interest income is recognized in the statement of comprehensive income as it accrues. In assessing value in use. reduced by past-service cost not yet recognized and the fair value of plan assets out of which the obligations are to be settled directly. Actuarial gains and losses are recognized as income or expense when the net cumulative 70 Annual Report 2009 . For an asset that does not generate largely independent cash inflows. Deferred Fees Deferred fees represent listing fees. covering their permanent employees. noncompliance and nondisclosure of listed companies. The defined benefit liability is the aggregate of the present value of the benefits obligation and actuarial gains or losses not recognized. This would not result in a gain being recognized as a result of an actuarial loss or past service cost in the current year or in a loss being recognized as a result of an actuarial gain in the current year. taking into account the effective yield of the asset. The Group’s retirement cost is actuarially determined using the projected unit credit method. but not to an amount higher than the carrying amount that would have been determined (net of any depreciation and amortization) had no impairment loss been recognized for the asset in prior years. the asset is measured at the lower of such aggregate or the aggregate of cumulative unrecognized net actuarial losses and past-service cost and the present value of any economic benefits available in the form of refunds from the plan or reductions in future contributions to the plan. and if there is no change or an increase or decrease in the present value of the economic benefits. Inc. Listing Maintenance. Retirement Cost The Parent Company has a funded noncontributory defined benefit retirement plan. If such aggregate is negative. while SCCP has an unfunded noncontributory defined benefit retirement plan. Other Revenues. The Philippine Stock Exchange. the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessment of the time value of money and the risks to the asset. the entire net actuarial losses or gains of the current period and past service cost or reduction of past service cost of the current period is recognized immediately. This account mainly consists of trading and listing related fines and penalties for late payment.
The amount reflected in the statements of comprehensive income represents the movement in cumulative expense recognized as of the beginning and end of the period. No expense is recognized for awards that do not ultimately vest. on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes. Income Taxes Current Tax. affects neither the accounting income nor taxable income or loss. at the time of the transaction. is not recognized when it arises from the initial recognition of an asset or liability in a transaction that is not a business combination and. Unrecognized deferred tax assets are reassessed at each balance sheet date and are recognized to the extent that it has become probable that future taxable profit will allow the deferred tax asset to be recovered. experience adjustments and actuarial gains and losses. The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilized. amortization of past-service costs. Deferred tax assets and liabilities are measured at the tax rate applicable to the year when the asset is realized or the liability is settled. In this case. subject to restrictions. over the period in which the performance and/or service conditions are fulfilled. Deferred tax assets and deferred tax liabilities are offset if a legally enforceable right exists to set off current tax assets against current tax liabilities and deferred taxes related to the same taxable entity and the same taxation authority. carryforward of unused tax credits from excess minimum corporate income tax (MCIT) over regular corporate income tax (RCIT) and unused net operating loss carryover (NOLCO). based on tax rates (and tax laws) that have been enacted or substantially enacted at the balance sheet date. Annual Report 2009 Deferred Tax. The cumulative expense recognized for equity-settled transactions at each reporting date until the vesting date reflects the extent to which the vesting period has expired and the Group’s best estimate of the number of equity instruments that will ultimately vest. Deferred tax. the past-service costs are amortized on a straight-line basis over the vesting period. Experience adjustments and unrecognized actuarial gains or losses are amortized over the remaining working lives of employees. The cost of equity-settled transactions is measured by reference to the fair value at the date on which they are granted. The cost of equity-settled transactions is recognized with a corresponding increase in the equity. Deferred tax assets are recognized for all deductible temporary differences. to the extent that it is probable that taxable profit will be available against which the deductible temporary differences and carryforward of unused tax credits and unused NOLCO can be utilized. using the balance sheet liability method.unrecognized actuarial gains and losses of the plan at the end of the previous reporting year exceed 10% of the higher of the present value of the defined benefit obligation and the fair value of plan assets at that date. Inc. The tax rates and tax laws used to compute the amount are those that are enacted or substantially enacted at the balance sheet date. Retirement cost includes current service cost. 71 The Philippine Stock Exchange. Deferred tax is provided. Share-based Payment Transaction All regular employees in good standing are granted options to purchase shares. Deferred tax liabilities are recognized for all taxable temporary differences. The fair value is determined using a quoted market price at the time of payment. unless the changes to the pension plan are conditional on the employees remaining in service for a specified period of time (the vesting period). Past-service costs are recognized immediately in the statement of comprehensive income. ending on the date on which the relevant employees become fully entitled to the award (vesting date). terms and conditions provided in the Employee Stock Purchase Plan (ESPP). The excess actuarial gains and losses are recognized over the average remaining working life of employees participating in that plan in the statement of comprehensive income. however. . Deferred tax liabilities are not provided on nontaxable temporary differences associated with investment in subsidiary. Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities.
72 Annual Report 2009 . Dividends for the year that are approved after the balance sheet date are dealt with as an event after the balance sheet date. Contingent assets are not recognized in the financial statements but are disclosed when an inflow of economic benefits is probable.Treasury Shares The Parent Company’s own equity instruments which are acquired (treasury shares) are deducted from equity and accounted for at cost. Dividends on Common Shares Dividends on common shares are recognized as a liability and deducted from equity when approved by the shareholders of the Parent Company. Foreign Currency-Denominated Transactions and Translation Transactions in foreign currencies are recorded using the exchange rate at the date of the transactions. fair value is based on management’s estimate of amounts that could be realized under current market conditions. including expectations of future events that are believed to be determinable under the circumstances. Judgments and estimates are continually evaluated and are based on historical experience and other factors. Future events may occur which will cause the assumptions used in arriving at the estimates to change. The Philippine Stock Exchange. If prices are not readily determinable or if liquidating the positions is reasonably expected to affect market prices. issue or cancellation of the Parent Company’s own equity instruments. Monetary assets and liabilities denominated in foreign currencies are translated using the Philippine Dealing & Exchange Corp. The effects of any change in estimates are reflected in the financial statements as they become reasonably determinable. Nonmonetary assets and liabilities denominated in foreign currencies that are measured at historical cost are translated using the exchange rate at the date of transaction and non-monetary assets and liabilities that are measured at fair value are translated using the exchange rate when the fair value was determined. liabilities. The Group carries certain financial assets at fair value. Fair value determinations for financial assets and liabilities are based generally on listed or quoted market prices. it is probable that an outflow of assets embodying economic benefits will be required to settle the obligation and a reliable estimate can be made of the amount of the obligation. Events after the Balance Sheet Date Post-year-end events that provide additional information about the Group’s position at the balance sheet date (adjusting events) are reflected in the financial statements. Contingencies Contingent liabilities are not recognized in the financial statements. Material post-year-end events that are not adjusting events. Foreign exchange gains or losses arising from foreign currency-denominated transactions and revaluation adjustments of foreign currency assets and liabilities are credited to or charged against current operations. management has made the following judgments. apart from those involving estimates and assumptions. They are disclosed unless the possibility of an outflow of assets embodying economic benefits is remote. are disclosed in the notes to the financial statements. Significant Accounting Judgments and Estimates The preparation of the financial statements in accordance with PFRS requires the Group to make estimates and assumptions that affect the reported amounts of assets. assuming an orderly liquidation over a reasonable period of time. 3. which have the most significant effect on the amounts recognized in the financial statements. No gain or loss is recognized in the statement of comprehensive income on the purchase. Provisions Provisions are recognized when the Group has a present obligation (legal or constructive) where. if any. sale. income and expenses and disclosure of contingent assets and contingent liabilities. as a result of a past event. Judgments In the process of applying the Group’s accounting policies. Fair Values of Financial Assets and Liabilities. closing rate prevailing at balance sheet date. Inc.
2009 and 2008. economic. An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable amount.6 million. As of December 31. Annual Report 2009 73 The Philippine Stock Exchange. respectively. while the carrying value of the investment = = in a subsidiary amounted to P69. = Impairment of Other Nonfinancial Assets. the factors that the Group considers important which could trigger an impairment review on its nonfinancial assets include the following: Significant underperformance relative to expected historical or projected future operating results.. The Parent Company reversed impairment loss on its investment in associate amounting to P5.g. respectively (see Note 7). The recoverable amount is determined based on the asset’s value in use computation which considers the present value of estimated future cash flows expected to be generated from the continued use of the asset. The Group reviews its receivables portfolio to assess impairment annually. In determining whether an impairment loss should be recorded in the statement of comprehensive income. Significant changes in the manner of use of the acquired assets or the strategy for overall business. Impairment of AFS Equity Investments. 2009 and 2008 (see Note 10). The carrying value of the investment in an associate amounted to = P116. respectively. computer software) whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. receivables are carried at P58. including normal volatility in share price for quoted equities and the future cash flows and the discount factors for unquoted equities. 2009 and 2008.0 million and P65. the technological.5 million and P5. market.5 million and P101.2 million in 2008. = Impairment Losses on Receivables. . or legal environment in which the subsidiary or associate operates. and Significant negative industry or economic trends. Impairment on Investment in Subsidiary and Associate. the factors that the Parent Company considers important which could trigger an impairment review on its investments in subsidiary and associate include the following: Deteriorating or poor financial condition. respectively. = = respectively. for the Group and P125. The Parent Company assesses impairment on its investments in subsidiary and associate whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. 2009 and 2008.1 million and P106. the Company makes judgment as to whether there is any observable data indicating that there is a measurable decrease in the estimated future cash flows from the receivables. Among others. As of December 31. In addition. allowance for impairment losses on AFS equity investments (included under Long-term AFS investments) amounted to P2. The determination of what is ‘significant’ or ‘prolonged’ requires judgment. Among others.4 million. respectively. Recurring net losses. or will take place in the near future. AFS equity investments are carried at P0. 2009 and 2008.1 million. The Group treats ‘significant’ generally as 20% or more and ‘prolonged’ as greater than the period of six months. The Group treats AFS equity investments as impaired when there has been a significant or prolonged decline in the fair value below its cost or where other objective evidence of impairment exists. the Group evaluates other factors. The Group assesses impairment on its other nonfinancial assets (e.3 million as of December 31. As of December 31. and Significant changes with an adverse effect on the subsidiary or associate have taken place during the period. 2009 and 2008.8 million as of December 31.9 million and P2. for the Parent = = = = Company (see Note 8).7 million in 2009 and provided = an impairment loss amounting to P9. for the Group and the Parent Company.5 million as of December 31. Inc. that have a significant risk of causing a material adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.Estimates The key assumptions concerning the future and other key sources of estimation uncertainty at the balance sheet date. This evidence may include observable data indicating that there has been an adverse change in the payment status of borrowers. property and equipment. The Group is required to make estimates and assumptions that can materially affect the carrying amount of the asset being assessed.8 million. allowance for impairment losses on receivables amounted to P6.2 million = = = and P0.
All excess funds are invested in an organized investment mix of short-term and long-term investments to achieve maximum returns. internal technical evaluation.6 million. Any changes in these assumptions will impact the carrying amount of retirement obligations. the Group formally created the Internal Audit and Risk Management positions under the Corporate Governance Office to specifically manage the enterprise-wide risks.2 million. respectively.2 million and = P35. adequate cash flow is provided for administrative/operating expenditures and capital expenses based on projected funding requirements. respectively (see Note 20). To further strengthen the management of risk. The Group maintains a level of cash and cash equivalents deemed sufficient to finance operations. The main risks arising from the Group’s financial instruments are liquidity risk. The Group reviews annually the estimated useful lives based on factors that include asset utilization. 2009 and 2008. Liquidity risk may result from the inability to sell financial assets quickly at their fair values. the present value of the defined benefit obligation amounted to P45.5 million. receivables and accounts payable. for the Group and P507. technological changes. The expected rate of return on assets of 6% was based on the market prices prevailing on that date applicable to the period over which the obligation is to be settled.9 million and P5. 74 Annual Report 2009 . As of December 31. accrued expenses and other current liabilities (excluding taxes payable). 2009 and 2008. the Group regularly evaluates its projected and actual cash flows. Recognition of Deferred Tax Assets.3 million and = P15. The present value of the obligation depends on certain factors that are determined on an actuarial basis using a number of assumptions.2 million and = P452. = = = 4. for the Parent Company and P7. based upon the likely timing and level of future taxable profits together with future tax planning strategies. interest rate risk and foreign currency risk. The Group seeks to manage its liquidity profile to be able to service its maturing liabilities and to finance capital requirements. respectively. the Group and the Parent Company recognized net deferred tax asset amounting to P12. and anticipated use of the assets. for the Parent Company (see = = = Note 9).6 million. Liquidity Risk Liquidity risk is the risk that an entity will encounter difficulty in raising funds to meet commitments associated with the financial instruments. Significant management judgment is required to determine the amount of deferred income tax assets that can be recognized. the carrying value of property and equipment amounted to P509. Inc. The assumptions used in determining the net cost (income) for retirement include the expected long-term rate of return on the relevant plan assets and the discount rate. A reduction in the estimated useful lives of property and equipment and computer software would increase the recorded depreciation and amortization expense and decrease the related assets. respectively (see Note 12). Deferred tax assets are recognized for all deductible temporary difference to the extent that it is probable that taxable profit will be available against which the deductible temporary differences can be utilized. for SCCP (see Note 21). AFS investments. The Group estimated the useful lives of its property and equipment and computer software based on the period over which the assets are expected to be available for use. credit risk.As of December 31. Financial Risk Management Objectives and Policies The Group’s principal financial instruments consist of cash and cash equivalents. 2009 and 2008.1 million. It is the Group’s policy not to engage in the trading of financial instruments. = = Present Value of Retirement Obligation. As part of its liquidity risk management. To meet the requirement for liquidity. 2009 and 2008 based on remaining contractual undiscounted payments. 2009 and 2008.6 million. As of December 31.2 million and P4. The assumed discount rates were determined using the market yields on Philippine government bonds with terms consistent with the expected employee benefit payout as of balance sheet date. respectively.8 million and P450. the carrying value of computer software amounted to P10. The table below summarizes the maturity profile of the Group’s financial assets and financial liabilities as of December 31. = The Philippine Stock Exchange. Estimation of Useful Lives of Property and Equipment and Computer Software. respectively. As of December 31.
170.470.229.181 300.181 = Financial Assets Loans and receivables: Cash and cash equivalents Receivables Other assets .257.780.865 785. Annual Report 2009 75 .038.865 926.320 = 21.181 = Total P132.409.841 = Within a Year Financial Assets Loans and receivables: Cash and cash equivalents Receivables Other assets .730.470.other investments Equity securities Within a Year P325.141 = P– = – – – 10.969 15.936 = As of December 31.other investments Equity securities P132.067.930.906 P97.181 300.759 15.841 = P– = – – – P– = P– = – – – P– = P– = – – – P– = P60.675 = Total P325.942 = P– = – – – P– = P– = – – – P– = P– = – – – P– = P37.687.969 – 200.480.824 = 65.000 P1.181 200.942 = The table below summarizes the maturity profile of the Parent Company’s financial assets and financial liabilities as of December 31.077.181 = Total P393. 2008 More Than No Maturity 1-2 Years Two Years Date P– = – – 841.865 129.782 = P– = – 15.940 – – P145.621.198.354.767.101.deposits in bank AFS investments: Government debt securities Other assets .640.141 – – – P14. Inc.Financial Assets Loans and receivables: Cash and cash equivalents Receivables Other assets .208.987 10.480.930.274 14.824 = 65.098.321.865 129.443 = The Philippine Stock Exchange.782 – – P455.151 – – P767.deposits in bank AFS investments: Government debt securities Other assets .640.111.543 = Financial Liabilities Other financial liabilities: Due to SEC Accrued expenses Accounts payable Others P37.190 = 20.730.107.441 = 125.321. 2009 More Than No Maturity Two Years Date 1-2 Years P– = – – 455.940.413 = P– = – 15.929 3.525.480.967.647.098.938 10.488.730.000 P10.262.893 = Financial Liabilities Other financial liabilities: Due to SEC Accrued expenses Accounts payable Others P60.181 200.229.282 33.285 – – P841.098.586.077.000 P10.810.101.403. As of December 31.000 P10.471 2.733.950.285 = P– = – 14.759 – 315.525.680.480.282 33.038. 2009 and 2008 based on remaining contractual undiscounted payments.687.261.494 = As of December 31.000 P1.968.098.480.680.000 P1.deposits in bank AFS investments: Government debt securities Other assets .141 1.488.504 10.190 = 20.687.968.257.411 P96.950.653 – – P565.409.940 – – P145.261.632.929 3.967.274 14.584 = 57.906 P97.480.431.181 200.647.other investments Equity securities Within a Year P393.730.413 – – P480.265 – – P651.354.441 = 125.181 200.459 14.411 P96.805 = P– = – – – 10.459 – 367.320 = 21.584 = 57.630. 2009 More Than No Maturity Two Years Date 1-2 Years P– = – – 480.067.471 2.805 = P– = – – – 10.
495 32.248 5.269 = 14.other investments Equity securities P60.587.354.271 – 313.144.051.941 = 13.268.240 = P– = – 14.114.776 10.508 = 28.557.592.480. Consolidated 2009 P393.043 2.453.592.029.639 3.480.deposits in bank AFS investments: Government debt securities Other assets .361.437 3. Inc.462.181 300.254.747.857.240.891 14.359 = Within a Year Financial Assets Loans and receivables: Cash and cash equivalents Receivables Other assets .769 = 101.046. the Group monitors the financial health of clearing participants and takes note of participants with potential default.453.482 50.479.181 300.575.322 4.131.354.741 2.000.051.864 = P37.865 2008 P132.413.141 Parent Company 2009 P325.839 5.141 1.495 32.138 = Financial Liabilities Other financial liabilities: Due to SEC Accrued expenses Accounts payable Others P91.741 2.046.526.365.301.Within a Year Financial Liabilities Other financial liabilities: Due to SEC Accrued expenses Accounts payable Others As of December 31.033.647.042 = 26.471 2.132. 2008 More Than No Maturity 1-2 Years Two Years Date P– = – – 801.141 Loans and Receivables Cash and cash equivalents (excluding cash on hand) Receivables from Brokers Listed companies Data vendors Dividend receivable Accrued interest receivable Other receivables Other assets .967.587.179.744 – 19.967.098.780.181 = Total P60. receivable from listed companies on listing maintenance fees and receivable from market data vendors for data feed charges.769 = 101.410 P– = P– = – – – P– = P– = – – – P– = P– = – – – P91.361.687.639 3.000 17.647.390.358.190 = 18.000 P10.025.320 = 17.792 10.141 – – – P14.462.687.000.413.029.271 14.744 80.906 P91.000 26.597 15.792 10.906 P91.028.864 = P37.687.687.144.254. 2009 More Than No Maturity Two Years Date 1-2 Years Total 76 Annual Report 2009 The Philippine Stock Exchange. The credit risk of the Group’s other financial assets.865 2008 P60.240 – – P801.deposits in bank (Forward) . membership fees and other fees. The table below shows the maximum exposure to credit risk before considering collateral and other credit enhancements.310.961. arises from default of the counterparty.141 = P– = – – – 10.536 – – P475.733.616.359 = P– = – – – P– = P– = – – – P– = P– = – – – P– = P60. as and when they fall due.410 Credit Risk Credit risk refers to the potential loss arising from any failure by counterparties to fulfill their obligations.320 = 17.213 2.391 14.330 15.471 2.213 2.969.131.576 = As of December 31.132.105 4. To minimize credit risk.132.000 P1.857.098. which comprise cash and cash equivalents and investments. The Group’s credit exposure arises mainly from receivables from brokers on clearing related services for securities transactions.565 7.482 – 28.330 3.190 = 18. P60.687.
361.899 200.480.132.240 300.277.431.575.724 = P– = – – – – – – – 131.381.898 10.310.000 10.262.181 P1.AFS Investments Government debt securities Short-term Long-term Equity securities Other assets .616.616.250.897.000 – – 114.101.227 = P132.644 = 2008 Neither Past Due nor Impaired Medium Grade Low Grade P– = – – – – 27.000 10.818.101.818.141 367.480.786 19.480.891.191 = 315.479.042 = 26.098.254.605 = 610.111.272.943 = 2008 P313.267.285 10.461.452 Other assets .839 5.101.605 610.516.other investments 10.637.540 2.467 – P131.431 10.330 Listed companies 1.479.285 10.897.653 841.046.098.965.477 = The Philippine Stock Exchange.482 28.536 = 801.750 – – – – – – – P1.969.181 P1.942.181 P1.403.105 730.358.201 40.330 15.414.482 Accrued interest receivable 28.other investments Total Financial Assets Total P393.234.605 478.217.480.285 300.865 315.841.480.042 = 26.227 = Parent Company 2009 P200.467 = P– = – – – – – – – – – P– = Past Due but not Impaired P– = 6.480.653 = 841.891.391 14.429.744 19.508 = 28.350 = High Grade Loans and Receivables Cash and cash equivalents (excluding cash on hand) P132.463 2.480.272.969.642.480.181 P1.833 = P– = – – – – – – – – – P– = Total Past Due but not Impaired P– = – 1.181 P1.330 15.272.105 730.575.181 P1.540 2.687.508 = Receivables from Brokers 28.358.463 Data vendors 2.000 10.865 Annual Report 2009 P393.204.390.833 – P114.141 Other assets .859.638 = The following table provides information regarding the credit risk exposure of the Group by classifying financial assets according to credit ratings of the counterparties: 2009 Neither Past Due nor Impaired Medium High Grade Grade Low Grade P393.897.390.043 Other receivables 2.495.480.750 = Total P132.361.330 1.213 2.141 367.958 – – – – – – P3.315.042 = 77 .301.351 = 2008 P367.632.841.000 10.181 Total Financial Assets P1.605 610.390.330 15.132.723 200.181 P1.482 28.043 2.632.240.480.857.144.699.391 14.653 Long-term 726.181 P1.391 14.431.105 4.310.337.839 5.132.403.839 5.687.399.687.330 3.181 P1.616.741 2.deposits in bank AFS Investments Government debt securities Short-term 367.575. Inc.632.310.000 3. Loans and Receivables Cash and cash equivalents (excluding cash on hand) Receivables from Brokers Listed companies Data vendors Accrued interest receivable Other receivables Other assets .786 19.318.159 = 315.other investments Consolidated 2009 P315.850.898 10.deposits in bank AFS Investments Government debt securities Short-term Long-term Other assets .098.897.361.234.653 841.043 2.204.632.508 = 28.358.865 Total 26.264 = 585.
536 801.437 1.258.723 10.480.699.241.479.033.407 Other assets .927.557.248 5.181 P1.322 Brokers 730.479.000 17.264 585.262.480.565 Accrued interest receivable 7.597 15.028.181 P1.264 585.000 3.565 7.098.557.540 2.000.865 200.141 313.055 = 2008 Neither Past Due nor Impaired Medium Grade Low Grade P– = – – – – – 27.750 – – – – – – – – P1. low grade pertains to receivables with more than 3 defaults in payment.480.687.The following table provides information regarding the credit risk exposure of the Parent Company by classifying financial assets according to credit ratings of the counterparties: 2009 Neither Past Due nor Impaired Medium Grade Low Grade P– = – – – – – – – – 131.786 Data vendors 80.638 = 10.240 Past Due but not Impaired P– = – 1.597 Other receivables 15.322 730.818.028.891.941 = 13.741 2.342.891 14.000 26.000 Accrued interest receivable 26.179.264 Short-term 453.841.000 – – 114.000 26. Receivables .028.279.467 = P– = – – – – – – – – – – P– = Past Due but not Impaired P– = 6.361.250.941 = (excluding cash on hand) Receivables from 13. except for dollar denominated government bonds which are considered medium grade due to sovereign and foreign currency risk considerations.943 = P325.437 3.268.833 – P114.141 313.126.181 investments Total Financial Assets P1.857.891 14.361. .111.833 = P– = – – – – – – – – – – P– = Total P60.961.301.786 80.027.204.027.000.141 Other assets .536 Long-term 687.482 50. High Grade Loans and Receivables Cash and cash equivalents P325.699.248 Other receivables 5.181 Total Financial Assets P1.other 10.144.111.565 7.deposits in bank AFS Investments Government debt securities 200.000.750 = Total P60.159 = 78 Annual Report 2009 The Philippine Stock Exchange.248 5.179.941 = 13.482 Dividend receivable 50.865 Other assets .687.185.365.816.223.557.based on the nature of the counterparty.other investments 10.181 P1.961.723 10.high grade pertains to receivables with no default in payment.299.687.808.958 – – – – – – – P3.463 2.526.030.098.269 = 14.000 Dividend receivable 17. High grade pertains to cash and cash equivalents deposited or invested in top local banks.467 – P131.the debt securities are based on the nature of the counterparty.463 Data vendors 2.365.891 14.268. Inc.536 801.482 50.000. medium grade pertains to receivables with up to 3 defaults in payment.414.597 188.8.131.525 200.361.461. and past due but not impaired pertains to receivables where payments are past due but the Group believes that impairment is not appropriate on the basis of status of collection of amounts owed to the Group.744 80.213 2.322 4.098.784 = High Grade Loans and Receivables Cash and cash equivalents (excluding cash on hand) P60.179.500.269 = 14.111.256 Long-term Other assets .816. High grade debt securities pertain to bonds and notes issued by the Philippine government.841.480.961.437 Listed companies 1.181 P1.240 10.000 17.000.204.480.480.526.891.201 40.317 = Total Total P325. AFS investments .000.540 Listed companies 2.526.365.254.888 = The credit quality of the financial assets was determined as follows: Cash and cash equivalents .046.479.269 = Receivables from Brokers 14.deposits in bank AFS Investments Government debt securities Short-term 313.
083 1.393.010.758. The Treasury manager is responsible for the identification of investments that provide a relatively stable rate of return and submit these identified investments to the Vice President for Finance and Investments Division who endorses it to the Treasurer or President for approval. In the selection of investment instruments. For US dollar-denominated placements. Market Risk The Group’s market risk (the risk of loss to future earnings. There are no floating rate financial assets and financial liabilities.532. funds are basically invested in government bonds and securities and duly registered with the Registry of Scripless Securities under the name of the Group. the Treasurer reports the investment portfolio performance and management’s performance associated with the investment portfolio to the BOD.390 Foreign Currency Risk. Term deposits with banks and debt securities carry fixed rates throughout the period of deposit or placement.224.544 Parent Company Effect on equity 2009 2008 2008 (P12. Foreign currency risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because of changes in foreign currency exchange rates. The value of a financial instrument may change as a result of changes in interest rates.The Group does not have any significant exposure to any individual customer or counterparty nor does it have any major concentration of credit risk related to any financial instrument.934 $2.147 = 113.139) = 12. The impact on the Group’s and the Parent Company’s equity already excludes the impact on transactions affecting the statement of comprehensive income. Annual Report 2009 79 .783 2.887.147 3. the Group maintains a third party custodian bank.047 8.804 72.616 In PhP Financial assets: Cash and cash equivalents Long-term AFS investments Accounts receivable P13.196 P127. The table below sets forth the sensitivity to a reasonable possible change in interest rates with all other variables held constant. to fair values or to future cash flows that may result from changes in the price of a financial instrument) originates from its holdings of debt securities.703.227.385. capital preservation is the primary consideration of the Group.899 35.258) = 7.954. foreign currency exchanges rates and other market changes. 2009 and 2008: In USD $297. The Group’s policy is to maintain foreign currency exposure within acceptable limits.752 = The Philippine Stock Exchange. Changes in interest rates +70 basis points -70 basis points Consolidated 2009 (P7. The Group follows a prudent policy on managing its assets and liabilities so as to ensure that exposure to fluctuations in interest rates are kept within acceptable limits.663.115 11.573.764.668 2. Inc.602. The Group believes that its profile of foreign currency exposure on its assets and liabilities is within conservative limits.373.293.599 2009 In PhP 2008 In USD $273. of the Group’s and the Parent Company’s equity (through the impact on unrealized gain/loss on AFS fixed rate debt securities).945) = (P11. In addition.796) = (P8. The Exchange is guided by a BOD approved investment policy guidelines.127 $2.782.755.490. The Exchange’s exposure to foreign currency risks arise primarily from US dollar transactions. Any exemption to the set policy is subject to the approval of the BOD. The following table summarizes the Group and Parent Company’s exposure to foreign currency exchange risk as of December 31. mostly from cash and cash equivalents and investments in debt securities.569. Fair Value Interest Rate Risk. With this objective.522 P128.797 = 110.140 = P13. on a monthly basis.
043 2.967.480.470 2.839 5.313 5.767.431.839 5.584 = 26.277.857.488.632.602.967.000 P1.035 P97.543 = = = = P60.310. when all other variables are held constant.906 P97.320 = 21.141 315.361.488.409.431.423.950 = P60.000 200.272. Inc.330 15.741 2.654.other investments Equity securities Financial Liabilities Other financial liabilities: Due to SEC Accrued expenses Accounts payable Others P132.213 2.282 32.906 P97.390.240.969.857.657.865 2008 80 Annual Report 2009 Financial Assets Loans and receivables: Cash and cash equivalents Receivables from: Brokers Listed companies Data vendors Accrued interest receivable Other receivables Other assets .144.000 300.969.deposits in bank AFS investments: Government debt securities Short-term Long-term Other assets .687.101.403.653 315.181 200.391 14.584 = 26.190 = 20.132.647.605 367.480.285 10. The Philippine Stock Exchange.507 = (6.480. USD Strengthens/ Weakens +5% –5% 2009 2008 Effect on Income Before Tax P6.190 = 20.330 15.893 P1.101.899 841.141 Fair Value 2009 P393.865 P132.950 = .543 P1.480.361. Negative values in the table reflect a potential reduction in income while a positive amount reflects a potential increase.741 2.035 P97.181 10.824 = 28.390.105 4.767.730.744 19.274 14.330 3.792) The sensitivity of the statement of comprehensive income is the effect of reasonably possible change in spot rates which comes from the revaluation of foreign currency-denominated assets to Philippine peso.374.605 367.098.272.240.105 4.181 10.403. There is no other impact on the equity other than those already affecting the statement of comprehensive income.274 14.640.930.480.687.640.602.657.277.647.507) USD Strengthens/ Weakens +5% –5% Effect on Income Before Tax P6.181 10. Fair Value Measurement and Fair Value Hierarchy The table below presents a comparison of the carrying amounts and estimated fair values of the Group’s financial instruments: Carrying Value 2009 2008 P393.470 2.213 2.330 3.9184.108.40.2062.000 300.374.132.480.899 841.744 19.482 28.310.229.354.730.391 14.840 = P37. The result calculates the effect of a reasonably possible change in the spot rates.897.897.313 5.354.409.653 610.The table below indicates the effect of increase or decrease in US dollar exchange rate on income before income tax to which the Parent Company has substantial exposures on its financial assets.285 610.482 28. 5.423.098.282 32.046.654.043 2.046.792 = (6.893 P1.840 = P37.320 = 21.824 = 28.
744 17.587. the carrying amounts approximate fair values.361.131.098. Fair Value Hierarchy The Group uses the following hierarchy for determining and disclosing the fair value of financial instruments: Level 1: quoted prices in active markets for identical assets or liabilities. Inc.744 17. Financial Liabilities Other financial liabilities: Due to SEC Accrued expenses Accounts payable Others P60.647.480.480.453.333. Accounts Payable.741 2.900.752 14.526.240 10.857.769 = 45.443 P1.687.deposits in bank AFS investments: Government debt securities Short-term Long-term Other assets .900.878.179.990.213 2.470.000 5.144.033.536 585.248 50.613.699.233.181 10.482 26.132.741 2.000 7. Due to short-term nature of the transactions.647. the carrying amounts approximate fair values.181 10.144.441 = 13.359 = P37.240 585. Receivables. 2009 and 2008.264 313.361.526.906 P91.262.922. The Philippine Stock Exchange.480.033. Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are observable.354.046.000.869 = = = = 81 .046. the Group’s AFS investments.The table below presents a comparison of the carrying amounts and estimated fair values of the Parent Company’s financial instruments: Carrying Value 2009 2008 P325.418.482 26.967.707 P88.111.723 801.587.699. are categorized under Level 1 of the fair value hierarchy.000 P1.190 = 18.181 200.000 5.141 200.320 = 17.865 2008 The methods and assumptions used by the Group in estimating the fair value of the financial instruments are: Cash and Cash Equivalents.016 1.264 313.707 P88.000 200.471 2.723 801. Due to short-term nature of the transactions.322 4.967.495 31.000.565 80.479.597 15. either directly or indirectly.479.538 = Annual Report 2009 Financial Assets Loans and receivable: Cash and cash equivalents Receivables from: Brokers Listed companies Data vendors Accrued interest receivable Dividends receivable Other receivables Other assets .000 300.536 200.262.990.141 Fair Value 2009 P325.000.181 10.131.443 P1.592. which are measured at fair value. AFS Investments.538 = P60.254.922.565 80.111.597 15.213 2.359 = P37.354.857.495 31.320 = 17.470.076.906 P91.592.248 50.792 10. As of December 31.418.333.098.179.132.190 = 18.471 2. The fair value approximates the carrying amounts due to its short-term nature.254. Fair values are based on quoted market prices. Accrued Expenses and Other Current Liabilities.865 P60.891 14.769 = 45.878.730 P1. and Level 3: techniques which use inputs which have significant effect on the recorded fair value that are not based on observable market data.016 1.453.000 300.268.168 3.792 10.111.613.168 3.687.other investments Equity securities P60.000.441 = 13.480.322 4.000 7.
890 = P57.434.078.132.891.25% in 2007. Inc.223.692) – (41.833 841.000 610.431 131.50% to 6.723 3.20% in 2009.699.20% to 11.272.632.180 = 25.730.776 = Short-term government debt securities Long-term: Government debt securities Peso US dollar Equity securities Less allowance for impairment losses The short-term government debt securities earn annual interest rates ranging from 4.653 = 726.897.254.468 610.735. 2009 and 2008.878.38% to 11.644 17.251.536 = 687.938 = Parent Company 2009 2008 P200.00% to 9.132.00% in 2008 and from 8.88% in 2008 and 8.488.000 300.000 63.000 200.000 2.769 = 82 Annual Report 2009 The Philippine Stock Exchange.171.010.905.769 = 261.441 = P60.821.53% in 2008 and from 5.000 585.25% in 2009.000.078.000 200.06% to 4.381. 7.000.808.000 801.858.370.472.833 801. As of December 31.584 = P69.479.000 P3220.127.116.113.301.488 = Parent Company 2009 2008 P15.033.407 114. movements of net unrealized gain on AFS investments are as follow: Consolidated 2009 2008 P16.401.000 P393.487 25.88% in 2007.25% to 9.038) P15.000 13.6.488.88% in 2007 while US dollar-denominated debt securities earn annual interest rates ranging from 6.240 P1.50% to 12.606.916 49.605 = 478. from 5. 8.877.000 2.34% to 9.000 841.209.915.899 P926.890 = Balance at beginning of year Net unrealized gains (loss) on AFS investments for the year Realized gain transferred to statement of comprehensive income Net gain (loss) on AFS investments Balance at end of year .070.20% in 2009.692) P16.240 3.878.943.891.111.891 = (41.038) – (41.000 2.554.400.824 = 316. from 5. Cash on hand and in banks Cash equivalents Cash equivalents represent time deposits with original maturity of three months or less from dates of placement and earn interest rates ranging from 4.778.25% to 11.264 = 453. from 5.033.000 300.285 P1.488 = P57. Peso-denominated long-term government debt securities earn annual interest rates ranging from 4.403 P41.928 = 25.452 114.778.88% in 2007.20% in 2009.887.255 131.078.915.255 P41.584 = P132.000 2.434.504 = P367.078.400.25% to 11.987 = P313.468 585.64% to 6.101.63% in 2008 and from 4.145 = (41.62% to 6.824 = Parent Company 2009 2008 P64.899.030.899 3.611 25.470.115.285 3. AFS Investments This account consists of: Consolidated 2009 2008 P315. Cash and Cash Equivalents This account consists of: Consolidated 2009 2008 P77.441 = P47.330.723 P786.
905.940 – P785.971 659.604.017.407 5.938 = Parent Company 2009 2008 P1.370.115.000 17.033.786.8 million.326 = (439.526.101.038) – P786.301.728 (100.997.151 = P367.602.536.209.987 = (81.653 = 480.043 2.095 = 6.000) – 25.940.292.990.209.651) P2.969.132.361. The rollforward analysis of the Group’s and the Parent Company’s AFS investments follow: Consolidated 2009 2008 P1.857.810.536 = 455.000 = 100.350.000.943.776 = P1.010.692) – P926. respectively.988 = 6.265 = P313.413 841.078.968.482 50.000 26.111.642.361.033.413.006) P1.776 P125.255 (41.056.033.479.597 132.2 million and P12.273 (100.403 (41. the transacted price of a trading right amounted to P10. all trading rights held by broker members are pledged at its full value to secure the payment of the trading participants (brokers) debts due to the Parent Company and other brokers of the Parent Company arising out of or in connection with the present or future brokers’ contracts.776 = Within one year 1.530.459 = Parent Company 2009 2008 P13.234) 84. Receivables This account consists of: Consolidated 2009 2008 P27.504 = P1.000 = 2008 P23.261.171.98% which led to the assumption of significant influence on this investment (see Note 10).000) – 25.330 64.136 P65.786.778. Section 7 of Rules Governing Trading Rights and Trading Participants.938 = Parent Company 2009 2008 P200.878.033.859 2.744 – 19.759 = P30.940 – P926.565 7. the Parent Company infused additional investment in PDS Holdings resulting to an increase in ownership to 20.632.622.776 P57.179.101.000.481.969 = P16.077.289) (347.997.938 = P1.309.856.210.245 566.604.782 801.745 6.The maturity profile of the investment in debt securities follows: Consolidated 2009 2008 P315.859 2.808) (542.730.000 = In 2008.2 years More than two years Changes in the allowance for impairment losses follow: Balance at beginning of year Provision for impairment loss Reclassification to investment in an associate (Note 10) Balance at end of year 2009 P2.733.240 129.042.525.208.857.763 = 9.651 = – (21.019.980 = 9.310. Inc.776 = Annual Report 2009 8. = The Philippine Stock Exchange.744 80.706.595 5.691 2.894.987 = P1.268.248 5.059 = (493. = Based on the latest transaction in 2009 and 2008.391 70.581.681.504 = (81.778.396.733.285 129.696) 185.115.535 6.254.136 P101.878.482 – 28.271 = Receivables from: Brokers (Note 23) Listed companies Data vendors Dividend receivable Accrued interest receivable Other receivables Total Less allowance for impairment losses Under Article II. Balance at beginning of year Maturities Acquisitions Provision for impairment loss Net change in fair value Transferred to investment in an associate (Note 10) 83 .691 2.000 – P2.950.261.006) P1.891 18.104.22.1688.622.214.530.839 5.
839 5.159 = Total P26.064.786 19.963.105 = 4. which were specifically identified to be impaired.240.213 2.390.969.744 17.043 2.816. were fully provided with allowance.750 – – – P1.744 19.144.575.741 2. As of December 31.526.077.000.159 = Total P13.6 million.759 = 84 Annual Report 2009 2008 Past Due but not Impaired Neither Past Due nor Impaired Receivables from: Brokers Listed companies Data vendors Accrued interest receivable Other receivables P28.969 = .5 million and = P5.540 2.963.330 P57.816.463 2.330 = 3.600 = P– = – – – – P– = 60 to 120 Days P– = – – – – P– = 120 to 180 Days P– = – – – – P– = Over 180 Days but Less than 360 Days P6.132.750 = 30 to 60 Days P– = – – – – P– = Total P28.461.810 = P– = – – – – – P– = 60 to 120 Days P– = – – – – – P– = 120 to 180 Days P– = – – – – – P– = Over 180 Days but Less than 360 Days P6.310. = The Philippine Stock Exchange.361.000 = 3.565 80. respectively.786 17. 2009 and 2008.857.525.969.597 P125.958 – – P3.027.741 2.235.000 = 3.841.043 2.857.540 2.033.204.459 = Parent Company 2009 Past Due but not Impaired Neither Past Due nor Impaired 30 to 60 Days Receivables from: Brokers Listed companies Data vendors Accrued interest receivable Dividends receivable Other receivables P13.000 7.132.597 P122.000.322 = 730.390.482 28.000 7.310.330 = 1.046.709 = 60 to 120 Days P– = – – – – P– = 120 to 180 Days P– = – – – – P– = Over 180 Days but Less than 360 Days P– = 1.958 – – – P3.575.201 40.414.839 5.565 80. except for the receivables from data vendors which are normally collected within 45 days.201 40.322 = 4.414.841.361.330 P54.144. receivables from brokers and listed companies with total carrying value of P6.950.105 = 730.461.482 28.526.391 P63.391 P65. The aging analysis of receivables that are past due but not impaired follows: Consolidated 2009 Past Due but not Impaired Neither Past Due nor Impaired 30 to 60 Days Receivables from: Brokers Listed companies Data vendors Accrued interest receivable Other receivables P26.234. Inc.489.The receivables generally have terms of 30 days.
000 5.964.938 2.271 = Changes in the allowance for impairment losses follow: 2009 Listed Companies P3.915 P16.841.478 = 1.562.595.237.667.614 – P942.869.076.034 P303.990.669.833.923 13.493.332.341 P509.467.076.500) P5.712.530.962 15.658 = 9.750 – – – – P1. Fixtures and Communication Transportation Equipment Equipment Cost At beginning of year P224.717.222 54.681) – 1.776.195.000.949.807.034 376.791 = = P7.154 1.130.636 = 1.154 = = 594.488) (91.778.857 P31.521 = 60 to 120 Days P– = – – – – – P = 120 to 180 Days P– = – – – – – P– = Over 180 Days but Less than 360 Days P– = 1.557.167 P149.690.784 = = 1.003 155.268.594 118.690.478 = Total P8.904 = = = = = 799.717 P155.204.895.361.951.079) (1.604.072) – (22.214.171.1241.453.933 1.255.248 50.916 P123.639.801 4.512.891 4.257 2.381 – 79.478 = 1. Property and Equipment The composition of and movements in property and equipment are as follows: Consolidated December 31.548 34.482 26.118 = 2008 Balance at beginning of year Provision for impairment loss Recoveries Balance at end of year Brokers P4.471 Accumulated depreciation At beginning of year 125.276.971.069 5.399 P2.374 163.327.881 = The Philippine Stock Exchange.046.361.179.756.000) P6.538 1.581.986 Depreciation 8.437 = 3.053.776 = 85 .413.269.500.778) 626.795.000 5.795.441.136 = 1.640 – P5.889.995.726.891 P99.000 (4.640 (800.000 (1.708.279 30.455.406 P11.652.464.158 = – (2.190 2.854 174.500) P1.183.895.180 P201.766.750 = 30 to 60 Days P– = – – – – – P– = Total P14.486 (6.886) (2.136 = 9.000) P861.437 = 1.652 Disposals – – – – At end of year 134.154 P1.390.841.000.976.179.368.011.667.411.941.705 118.118 3.869 Disposals – – – – At end of year 224.638 Net book value P89.833 = = Buildings Building Improvements Donated Shares in a Utilities and Condominium Corporation Others Total P70.018) 57.243 119.764 (1.658 = Listed Companies P4.000) P3.517 132.652.482 26.604.429.557.179.268.207 14.571 (1.358 – 93.000 (800.919.213 2.985.936. Annual Report 2009 Balance at beginning of year Provision for impairment loss Recoveries Balance at end of year Brokers P1.046.690.266.891 P101.248 50. 2009 Trading System Equipment Computer Hardware and Peripherals Office Furniture. Inc.602 = = = = Additions – 72.909.389 P155.034 127.2008 Past Due but not Impaired Neither Past Due nor Impaired Receivables from: Brokers Listed companies Data vendors Accrued interest receivable Dividends receivable Other receivables P14.988.914 – (8.797.951.446) 69.053 169.463 2.515.534.893 P10.658 = Total P5.597.
034 P182.753 (14.336 P155. Fixtures and Communication Equipment Donated Shares in a Condominium Corporation Buildings Building Improvements Transportation Equipment Utilities and Others Total Cost At beginning of year P224.623.276.216 615.916.336 P155.599 2.717 155.887.361. (ALI) and a condominium unit at the Philippine Stock Exchange Centre in Pasig City.959) 579.270 = = = = Additions – 72.498) – – 54.895 – 1.764 (9.208 14.594 118.986 Net book value P98.623.316) – – 54.291.547.027 P155.990.904 575.845 P30.645.791 = = P7.331.712.916 123. Inc.995.448.029.251 P1.441) At end of year 125.269.515.033 P132.156.270 Accumulated depreciation At beginning of year 116.111.134 23.252 164.981 P133.919.690.768 Accumulated depreciation At beginning of year 125.859.249.782.464.034 303.090 121.990. 2008 Trading System Equipment Computer Hardware and Peripherals Office Furniture.915 P120.808 Depreciation 8.451.433 P1.795.441.895.862.351 P11.251 (1.053 169.581.904 Net book value P98.279 30.678.162.787.608.441) At end of year 125.597.900.968 P13.034 376.897 79.683 54.893.616 = = P57.388 – 92.003 155.154 = = 579.316 Disposals – – – (6.787.708.850.167 108.507 2.247.488) (91.895.086.970 2.202 (6.053 169.895.001 3.988.739 2.578.892.756.971.690 – (344.441.140) 1.154 = = = = P873.795.900.548 P452.237.623.679.548.154 = = = = P889.884 = = Total P69.938 1.735.895.772 115.597.074.581.891 4.862.801 5.777) 594.989.447 December 31.967.512.802.895 – 1.381 – P15.063.507 1.020) (3.463 P1.995.500. 2008 Office Furniture.338 114.456 P450.045.690.195.886) (2.027 P155.280.468.623.008.727 = = = = Additions – 120.981 P133.154 P1.614 – P942.012.074.366 = = P56.331.787.025.154 = = = = 12.018.372.049.252 164.595.538 1.795.515.822 10.690.976.154 1.593 P121.970 P2.446) 68.739 4.717 P155. Inc.689 P9.967 10.600 79.231.079) 56.133.562.393.295.717 155.516.914 – (8.916.118.361.690.980 Disposals – – – – At end of year 134.754.905 5.735.851.090 15.705 115.994 14.895.994.778) 611.024 P12.049.884 Net book value P89.072) – (3.295.828 Disposals – – – (6.764.034 303.801 4.236 P = 507.570.053 169.822 29.904.345 104.494 9.338 117.645 615.909. . Fixtures and Communication Equipment Donated Shares in a Condominium Corporation Buildings Trading System Equipment Building Improvements Computer Hardware and Peripherals Transportation Equipment Utilities and Others Total Cost At beginning of year P224.895.904.651 28.344.167 149.958) 1.467.367 901.862 P11.441) At end of year 224.515.690.145. Software costs can no longer be separately classified as this is an integral part of the related hardware.186.108 1.219.865.020) (2.180 P201.602 Accumulated depreciation At beginning of year 116.386.503 (10. Annual Report 2009 Parent Company December 31.455.066.118 3.461 P1.690.190 (13.935 152.560 P29.884.801 5.754.534.132 = 4.211 = = P4.802.295.850.367 901.498 Disposals – – – – At end of year 224.417.486 – (344.916 120.456 33.655 Disposals – – – (6.029.154 53.766.106.356 = 86 Buildings Trading System Equipment Building Improvements The Philippine Stock Exchange.916 P120.279.690.904 Depreciation 8.415.167 108.854 174.018) 5.597.655.453.822 10.020) (6.705 118.573 P30.072 = 1.381 – 79.727 138.219.462.932. Fixtures and Communication Transportation Equipment Equipment Donated Shares in a Utilities and Condominium Corporation Others Cost At beginning of year P224.200 (1.639.684.679) – 69.878 = = = = = 642.735.990.441) At end of year 224.331.866. 2009 Computer Hardware and Peripherals Office Furniture.269.878 560. Trading system equipment represents software and hardware costs.995.326.537 Disposals – – – (6.684.134 23.790 1.344.034.046.985.994.486 – (344.034 123.984.154 = = = = 12.December 31.020) (7.681) – 1.558 (1.211 = = P4.790.828 = 170.832.056 = = = = Additions – 120.154 52.654 1.034 P303.297.008.243 116.034 P182.727 P138.152.616 P12.287.704.936.422 = Buildings represent properties donated by Philippine Realty and Holdings Corporation (PRHC) and Ayala Land.219.854 1.295.264.363.001 3.761 2.345.712.090 P15.690.690 – (344.441.497) – – 70.393.291.690.705 115.133.389 P155.086.109 = 171.399 2.923 12.327.915 16.915 P116.531.599 Depreciation 8.312 5.795.381 – P15.
Annual Report 2009 87 .657 137.232.567) 171.217.545.014.651) (5.217.943 = 2008 Acquisition Cost Wholly owned subsidiary SCCP Associate PDS Holdings Impairment Losses Balance at beginning of year Reversal of (provision for) impairment loss Balance at end of year Accumulated Income (Loss) of Investee Balance at beginning of year Share in net income (loss) of investee Balance at end of year P69.793.000.443 16.364. Inc.323.102 in 2008 = = Balance at end of year Net unrealized losses on AFS investments 2009 P168.099.097.959.891.078.050 (21.689) 3.321) – (4.675 = 26.824 = 2008 P– = 137.647 = Parent Company 2009 P69.657 206.395.0 2008 P612.10.670) (26. equivalent to a total of 700.65 million and P34. Financial information of PDS Holdings is as follows (amounts in millions): 2009 (Unaudited) P625.8 = 72.98% ownership in the said company.380 P455. respectively.897.040 = On November 12. Investment in an Associate and a Subsidiary This account consists of: Consolidated 2009 P– = 137.903 (20.702.600.545.097.050.504 172.997 in 2009 and P404.923 P402.947 (819.35 million.014.288.415) P116.050.723.009 168. 2008.014.232.010) 5. the Parent Company infused additional capital into PDS Holdings amounting to P35.393 = 137. The carrying value of the investments was reclassified from AFS investments to Investment in an associate account.274 (461.4 (5. 2007 and April 8.050.138.518 16.078.903 (24.4 308.689) (4.651) (9.925 155.596.8 = 76.393 = 137. Investments of Clearing and Trade Guaranty Fund This account consists of: Principal contributions from: Brokers Balance at beginning of year Contributions Balance at end of year The Exchange Accumulated income: Balance at beginning of year Interest income .359) (30.409.727.657 (21.5) Total assets Total liabilities Revenue Net income (loss) 11.190.434 155.689) P106.520) 154.000 shares.091.050.553.050.750 203.657 206.684 138.818.net of management fee of P454.010) – – – P176.000 283.489.727.418) (4.153.050.596.814 = 2008 P141.3 368. The additional investments resulted to = = a 20.657 (26.600.504.321) 5.684 80.891.050 (30.434 80.138.097.000 248.000.657 137.607 = The Philippine Stock Exchange.443 (1.4 17.684 = 35.504.107) – – – P182.
323) (819. listed companies and market data vendors are penalized either monetary.3 million and P311. For the management and administration of CTGF.710 404. 2009 (P1.850.811 454. taking into consideration the liquidity requirements of the clearing fund. In July 2007.383 6.174 4.1% of CTGF fund level as of the close of year.814 = 2008 P18.000 (1.171.539. AFS investments with principal amounts of P391.513.4 million in 2009 and 2008. In this regard. the SCCP’s BOD approved the amendment of its rules on CTGF providing for the non-recourse of all CTGF contributions to members. Inc. the SCCP is entitled to a management fee computed at 0.692.375. . 2009 and 2008.074.069.567) = 2008 P659.409. the BOD approved the full refund of contributions to the CTGF upon cessation of business of the clearing member and upon termination of its membership with the SCCP.102 P402. Management fee amounting to P0. the assets of the CTGF (included under Investments of CTGF account in the consolidated balance sheet) consist of: Cash in bank Accounts receivable Accrued interest receivable AFS investments .520) 402. In addition. and Such other investments as the SCCP’s BOD may approve.923 = (2.debt securities: Principal amount Net unamortized (discount)/premium Net unrealized losses on AFS investments Less management fees 2009 P26.The CTGF is a risk management tool designed to protect the market against the settlement risks of clearing members.286 425.608 = 88 Annual Report 2009 The Philippine Stock Exchange. Buy-in of relevant securities due from a defaulting selling member in order to settle a failed trade.431. This is subject to approval by the SEC. The Group’s liabilities as a central counterparty are limited only to the extent of the value of the due to CTGF.409.953 (P819.949 5. b. the Parent Company has policies in place where brokers. Net unrealized gains (losses) from CTGF investments held as AFS follows: Balance at beginning of year Change in fair value Balance at end of year The CTGF is invested on the following: a.395. Each active clearing member’s monthly contribution is equivalent to 1/500 of 1% of the members’ trade value.5 million and P0.332. Fails Management aims to settle a failed trade due to nonpayment of cash and/or nondelivery of securities by clearing members. On January 28.443) (P1. As of December 31. net of block sales and cross transactions of the same flag. 2009 and 2008. will mature within one year from balance sheet date.288. In order for the SCCP to effectively implement its Fails Management function. the CTGF must be adequate to cover any unsettled trade by any member on any settlement day. Securities issued or guaranteed by the Republic of the Philippines. Payment of the net money obligations of a defaulting buying member in order to settle a failed trade.562 = 422. the Group continuously builds up the CTGF through the monthly contributions collected from the clearing participants and collection of initial contributions from new and returning trading participants.567) 455.335.409. 2003. suspension or termination of services for nonpayment of their accounts.241 = 1. is = = included under “Other revenues” account in the Group’s statement of comprehensive income.520) = Any proceeds from the CTGF shall not be used for any purpose other than for: a. As of December 31.0 million.919. = = respectively.520) = 589.810 (1. respectively. b.997 P455.526 373.
992. 12.098.269.925 = 285.269.181 10.637.098.165 = As of December 31.183.141 = 12.462. f.922. the CTGF is presented in the asset section of the consolidated balance sheets under investments of CTGF and in the liabilities section of the consolidated balance sheets under Due to CTGF.141 = 12. Other investments pertain to the donation of FBDC in favor of the Parent Company of 10.929 Parent Company 2009 2008 P60.181 10.687. Accrued Expenses and Other Current Liabilities This account consists of: Consolidated 2009 2008 P60.406 5.538 26.530 20.270 = Parent Company 2009 2008 P15.105 = 13.480. Inc.992. liabilities and expenses of the SCCP incidental to the operation of its clearing and settlement functions and the management of the CTGF. represents = = the aggregate security deposit for the surety bonds posted by the Parent Company in favor of the National Labor Relations Commission (NLRC) in connection with pending labor cases which are on appeal.639 Due to SEC Accrued expenses Accounts payable (Forward) The Philippine Stock Exchange.474 P10.net (Note 20) Other investments (Note 15) Computer software Prepaid tax Others 89 .523.1 million and P14.229. The satisfaction of losses.865 = P14. The movements in the computer software follow: Cost: Balance at beginning of year Additions Balance at end of year Accumulated amortization: Balance at beginning of year Amortization Balance at end of year Net book value 2009 P36.592.105 – 3.495 10.792 17. respectively.043 5. 2009 and 2008.320 = 20.345 P48.181 shares of Crescent West Development Corporation (CWDC).7 million.739 10.480.354.469.098.967.967. deposits in bank amounting to P15.409.469.041 20.471 32.658. Accounts Payable. Other Assets This account consists of: Consolidated 2009 2008 P15.190 = P37.739 10. For financial statement presentation. the said amount may not be withdrawn by the Parent Company until final disposition of the cases.469.480. d. Under the Rules of the NLRC.181 – – – 3.865 = P14.271.759 54.107 2.687. e.555.116 36.274 21.922.282 14. For use as collateral in securing credit facilities from the Settlement Banks for the purpose of settling a Failed Trade.523.936 P15.345 P38. For use as collateral in borrowing securities through the Securities Borrowing and Lending Facility.567 15.199.824.567 = 2008 P36.354.471 33.c.107 2.480.560.414.043 5.321.190 = P37.290.181 10.041 = – 36. and Payment of premium on any insurance policy taken for the CTGF.908.763 = P52.908.131.759 54.936 5.320 = 18.930.041 15.453.480.560. This is further discussed in Note 15.414.196 = P37. Annual Report 2009 Deposits in bank Deferred tax asset .
389 = 90 Annual Report 2009 15.844.132 = P5. 2011 %/Number of Shares to be Donated 14.398 3. 2009 January 7.637.419 shares 126.96.36.1990.442 2.702 = P102.183 4.317.232.181 1. Accrued expenses.762 shares . (ii) CWDC shall be the corporate vehicle to which FBDC shall contribute the land as additional capital and the shares of which shall eventually be donated to the Parent Company. Consolidated 2009 2008 P10. 2006 January 7.004.022 = Parent Company 2009 2008 P9.029.787.430.640 = 5.250 P387.647.762 shares 14. Based on such agreement.232.408 P28.762 shares 14.762 shares 14.687.414 = Due to SEC represents license fees to operate an exchange imposed under Section 35 of the SRC entitled “Additional Fees of Exchanges”.000 812. Inc.422.Taxes payable Others The Philippine Stock Exchange.257.843.906 3.794. majority of its management offices and its unified trading operations in equity securities for the National Capital Region to the Bonifacio Global City.28% or 5. 2009 and 2008. all outstanding shares of stocks of CWDC shall be donated by FBDC to the Parent Company on the following dates: Date of Donation January 7. taxes payable and others are noninterest-bearing and are normally settled within the next financial year.154 = 139.550 = 2.530 P12.000 10. 2008 January 7.232.28% or 5.28% or 5.690.186 = 5.685.762 shares 14.992.762 shares 14. this account consists of donations from: ALI (Note 9) PRHC (Note 9) FBDC (Note 12) United States Agency International Development P235.500 2. Deferred Fees This account consists of: Listing fees Data feed income Fines and penalties Listing maintenance fees Others 2009 P12. 14.719 = 2008 P1.080 = 2. majority of its management offices and its unified trading operations in equity securities for the National Capital Region. and (iii) the FBDC and the Parent Company agree to develop the land and construct the building that will house the Parent Company’s headquarters.056. accounts payable.861 = P6.640. 2007 January 7.411 P108. Fort Bonifacio Development Corporation (FBDC) and the Parent Company executed a Definitive Agreement with the following salient terms and conditions: (i) the Parent Company agrees to relocate its headquarters.339.410 P100. which are subsequently billed and collected from active trading participants.328.038.247.542.906 3.28% or 5.585 = On November 12. 2010 January 7.28% or 5. Donated Capital As of December 31.28% or 5.491 = P96.821 1.654. 2008 January 7. 2002.925.080.32% or 5.536.232.647.
993 (68.513 Amount 2009 2008 P30. such shares received were classified as Other investments (see Note 12).894 P30.007 Shares 2008 2 100.555.942 = – 280.97.918 = 15.894 30.5 million.555.051 P976. 2008.009 = The movements in capital stock follow: 2009 30.918 Shares 2008 15.555.016 207.887.Following the Definitive Agreement.786.000 shares Issued .555.008 Amount 2009 2008 P68. for P10.651. FBDC and ALI are still pending. 2009. 2007 and 2006.651.024 – 96.881.651. majority of its management offices and unified trading operations in equities securities for the National Capital Region to the Bonifacio Global City.277. negotiations among the Parent Company.993 = 22.024 = P15.000. FBDC and ALI for the joint development.247. on January 7.651.232.006 (1) – P68.007) P962.555.511 – 30. = In June 2008.P1.008 = P2 = – 68.918 = 999. FBDC executed a Deed of Conditional Donation in favor of the Parent Company. the donation of all remaining CWDC shares was deferred pending negotiations among the Parent Company.277.533.0 million for purposes of = acquiring its own stocks.786.513 = – 96.277.273 (68.277. respectively. As of December 31.000.000.264 P999.008) P939.007 shares in 2009 and 100. the Parent Company’s BOD appropriated portion of its retained earnings amounting to P68.024 The movements in additional paid-in capital follow: Balance at beginning of year Issuance of capital stock Share-based payment (Note 26) Balance at end of year The movements in the treasury stock follow: 2009 100.024 = 91 The Philippine Stock Exchange.342.555.000.007 = P68.881.30.024 = 976.184 = P30.006 – 100. which covers the transfer of 5.918 shares in 2009 and 30.506.273 = 2008 P976.762 shares and 5. pursuant to a Memorandum of Understanding dated April 26. Inc. Equity Capital stock consists of: Capital stock .511 – P30.993 = Balance at beginning of year Acquisitions Reissuance Balance at end of year In 2008.024 shares in 2008 Additional paid-in capital Treasury stock (100.786.000.419 shares of CWDC. .008 = 2009 P976. 16.00 par value = Authorized .800.008 shares in 2008) 2009 2008 Annual Report 2009 P30. of an iconic office building in Bonifacio Global City for the relocation of the Parent Company’s headquarters.008 – (1) 100.000. Balance at beginning of year Issuance of stock dividends during the year Issuance of capital stock (Note 26) Balance at end of year 15.
746 Others 53.555. projected capital expenditures and projected strategic investment opportunities.On September 10.434. Inc.042.020.191.555.703.422.849. so that it continues to provide returns for shareholders and benefits for other stakeholders.999.252 888.337.024 = 999.915. 2007 Payment Date March 25.423 P102.760.160 = 10. Record Date March 12.746 53.000.509 387. Interest Income This account consists of interest income from: Consolidated 2009 2008 2007 AFS investments P75.000 (68.414.919.186 = = P106.748.918 = P30.439 699.142 4.577.261 387.845 = 92 Annual Report 2009 Capital stock Additional paid-in capital Deposit for future subscription Retained earnings: Unappropriated Donated capital Appropriated Treasury stock Net unrealized gain on available-forsale investments The Group actively and regularly reviews and manages its capital structure to ensure optimal capital structure and shareholder returns.890 P1.100 plus a daily = fine of P100 for every day of delay of compliance because the total broker ownership in the Exchange exceeds the allowable = limit.585 71.735.815. 2009 May 15.306 = = = 10.134 618.044 The Philippine Stock Exchange.000.422.012 387. directly or indirectly.637.943 269.008) 16.830. policies or processes as of December 31.000 (68. 2007 The SRC provides that no industry or business group may beneficially own or control.907.703 = = = .544 – – 4.134 86.80 134.206. Starting March 2009.031.664 P106. 2008 March 15. 2008.624.488 P1.024 = 999. 2008 February 14. 2007 Dividend Per Share Total Amount P8.692 = Parent Company 2009 2008 P30.435.000.178.008) 15.570 Cash in bank Short-term investments – 22. The Group considers the following as capital: Consolidated 2009 2008 P30.411 P93.005.349 394.273 976. prevailing and projected profitability.637.120.651.771.434 5.821.628 580.915.583 = Parent Company 2009 2008 2007 P69.585 71. 2009 and 2008.881. projected operating cash flows.973 P86.786. No changes were made in the objectives.000 = 20.786.504 Cash equivalents 8. the SEC imposed on the Exchange a penalty of P101.112.993 736. the daily fine for every day of delay of compliance is P500.240 824.442.00 305. The Exchange is studying the alternative = courses of action in order to comply with the SRC. and (c) to provide capital for the purpose of strengthening the Group’s risk management capability.007) 41.530 501.702. (b) to support the Group’s stability and growth.651.993 736.000. Details of the Parent Company’s cash dividend distribution follow: Date of Declaration February 25.218.000 (68.891 P1.240 P100. 2009 March 26.350 443. The Group adopts a practice of providing shareholders with regular dividends.637. 2009 April 15.273 976. 2008.145 P1.603 824.007) 41.000 (68.346 P110.550.00 = P243. 2008 March 1.881.112.853 P100.434 5.441 387.723.585 71. more than 20% of the voting rights of the Exchange.603 = 487.637. the Parent Company’s BOD approved the issuance of the 100% stock dividend declared by the Exchange on October 22. 17.349 451.857.000. On August 13. taking into consideration the future capital requirements of the Group and capital efficiency. 2007.703.000.132 7.585 71.770 580.350 465.000.973 P79.789 = 429. Capital Management The Group’s objectives when managing capital are (a) to safeguard the Group’s ability to continue as a going concern.918 = P30. 2008 to stockholders of record as of September 26.000.140 = = P112.100 8.
651 = – P23.209 = = 19.400.934.788 = = P204.931.996 P38.315.620 = Parent Company 2008 2007 P59.171 P38.328.514.344 = 8.931.612 P139.651 = P23.382 = = = = 8.300.106 P75.577 9.885.742 = 3.797 = 9.106. 2009 and 2008.316.530.524.262.197 = = Corporate Final Deferred As of December 31.651 = – P23.653.4 million and P0.297.548.426 = Parent Company 2008 2007 P19.849 10.511 P128.651 = Allowance for impairment losses Retirement liability and other employee benefits The Philippine Stock Exchange.274.594.807.654) P93.025 = = 9.436 = 9.372. Compensation and Other Related Staff Costs This account consists of: 2009 P115. 2008. Utilities Condominium dues Security and janitorial services Annual Report 2009 93 .100 = 20.926.760.450.806 35.597 = 12.384 = = P216.989.171.715.930.407 P166.672 23.014.956.935 = 2007 P20.911 P87.091 P28.518 (7.490 P132.581.088.300.799 9.171 P41.961.398.081.485.522.398.992 Salaries and wages Retirement and separation cost (Note 21) Other employee benefits 39.654) P73. the RCIT rate shall be 35% until December 31. the RCIT rate shall be 30%.081.304) 13.851 = = = = Other employee benefits include the share-based payment expense amounting to P4.997 P37.799 9.599 Consolidated 2008 P95.270 7.2 million for the Parent Company in 2009 and 2008.291 = 9.805 5.378.066. the Group and the Parent Company did not recognize the deferred tax asset on the following temporary differences since management believes that these deductible temporary differences may not be realized in the future: Consolidated 2009 2008 P23.334 P128.318.679. Inc.091.148.856.235 = 6. Occupancy Costs This account consists of: 2009 P21.981.478 20.078 9.891 P96.3 million for the Group = = and P4.623 (9.700 P19.845 P41.970.3 million and P0.729.138 27.521.622 (9.903 21.934.545 = Consolidated 2008 P22.406 = 14.177.930.919.696 = 2009 P22.927 P153.678 = 9.802. Starting January 1.522.651 = 4.642 13.956. 2006.018 (7.297.583. Income Taxes Current tax regulations provide that effective July 1.477 P144.078 8.845 P38.18.459.388 P116.332 = 15.124.974 21.304) P29.929.780.956.832.854.856.080.311.483. The provision for (benefit from) income tax consists of: Consolidated 2009 2008 2007 P65. 2009.577 9.948 = Parent Company 2009 2008 P23.074 Parent Company 2009 2007 2008 2007 P82.645.272 P107.856.949.519.431.438.965.716 = = 52.627.651 = P23.297 P27.947.947. respectively (see Note 26).510 = 2009 P19.205. = = 19.434 47.810 P131.
177.387. The Parent Company’s retirement fund is being managed by a local bank. Inc.730 = 2.33% – 8.739 = 94 Annual Report 2009 The Philippine Stock Exchange.983) – – Dividend income (9.739 = P1.655.106.483.620 = – (16.285) – (9.177.966 Nondeductible expenses Provision for income tax P73.368. Retirement Plan The Parent Company has a funded noncontributory defined benefit retirement plan.363) Effect of change in tax – rate 1.157. The reconciliation of provision for income tax computed at the statutory corporate income tax rate to provision for income tax shown in the statement of comprehensive income follows: 2009 Consolidated 2008 2007 2009 Parent Company 2008 2007 At statutory income tax rate P84.411.085.073 4.896 = 5.076 – 16.606 P93.065.142 – (3.403) P5.490 P132.426 (3.201) (17.065.922.179.486.00% 8.922.60% 7.523.623 – – 6. 2009 and 2008 are shown below: Parent Company 2009 2008 11.771 P227.927.384 P216.142 – (3.249 – 742.523.04% and 11.286) – – P29.511.673.431.090 9.383) – P12.091.157.258 P153.403) P5.776.00% 2008 10.The components of the net deferred tax assets (included under the Other assets account in the balance sheet) are as follows: Consolidated 2009 P6.043 = 2008 Deferred tax asset on: Unamortized past service costs Accrued expenses Allowance for impairment losses Unrealized foreign exchange losses Retirement liability Deferred tax liability on: Retirement asset Unrealized foreign exchange gains P1.696 = = = P71.299.584 2.612 P139.35% – 10.521 P148.00% SCCP 2009 13.427. respectively.00% 6.420. discount rates used are 11.548.927.515) – (16.041.60%.136) Tax-paid income Equity in net income of an associate (1.870 1.233.438 204.896 = 5.235.723.233.730 = 2.031.915 3.35%. The benefits are consolidated based on years of service and compensation per year of credited service.915 P175. The principal actuarial assumptions used in determining retirement liability as of January 1.249 – 742. while SCCP has an unfunded noncontributory defined benefit retirement plan covering all their regular employees.383) – P12. by the Parent Company and 9.090 9.076 – 16.179.754) – (66.721.655.308 = = = 30.065.824 – – – 3.00% 10.197 = = 21.194.009) – (32. 2009 and 2008.500.780.18% and 10.426 (3.986. respectively by SCCP.234.940 (10.427.584 2.469.42% 6.88% Discount rate Expected rate of return on assets Future salary increases As of December 31.870 1.354) – (3.043 = 2008 Parent Company 2009 P6.000 (9.776.986.235.126) (17.039.363) 920.073 4.289 = = = Adjustments for: Change in unrecognized deferred tax assets 430. .581.
244.559. The net unfunded retirement obligation recognized in the balance sheets of SCCP as of December 31.572) 386.158 = The movements in the retirement liability (asset) of the Parent Company as of December 31.548 = (538.418 = (2.085) 21.805 (23.327.623.354 = 1.559.244.270 – P2.516) = (10.893.708) 6.635 = 10. 2009 and 2008 are as follows: Balance at beginning of year Actuarial loss on obligation Actuarial gain (loss) on plan assets Actuarial loss recognized Balance at end of year Annual Report 2009 2009 (P18. 2008 are as follows: Present value of the obligation Fair value of plan assets Unrecognized actuarial losses Net retirement (asset) liability 2009 P45.019) (19.221.864) = Present value of the obligation Unrecognized actuarial losses Net unfunded retirement obligation 2009 P7. The retirement asset as of December 31.784.045.952 = 2008 P4.499 (18.635 = The movements in the unfunded retirement obligation recognized in SCCP’s balance sheets are as follows: Balance at beginning of year Retirement cost Balance at end of year 2009 P3.893.519.938.466) P4.617) (P10.052) (P10.158 = The Philippine Stock Exchange.810) 1. The latest actuarial valuation studies of the retirement plan of the Parent Company and SCCP was made on December 31.509.390) P3. 2009 and 2008 are as follows: Balance at beginning of year Retirement expense Contributions Balance at end of year 2009 P2.864) P2.612) = 2008 P35.027.640.140 (P17.063.005 (17.097.473. 2009 and 2008 are as follows: 95 .The overall expected rate of return on plan assets is determined based on the market prices prevailing on that date applicable to the period over which the obligation is to be settled.635 = The movements of unrecognized actuarial losses as of December 31.495.708 (P18.473.158 = 1.635) = 5.794 P4.334.864) = (303.617) = 2008 (P7.473.917 (17.757) 603.096. 2009 and retirement liability recognized in the balance sheets of the Parent Company as of December 31.584 = (14.037) (731.804 P3. Inc.559.679.741.784.411.885.847.201.640.640.612) = 2008 (P3.114. 2009.713 = (38.952 = 2008 P2.460. Actuarial valuation of the Parent Company is generally made every year.
360 2.741.629.821 = (5.918.073 = 2007 P4.359 608.048 (558.037 303.584 = 10.129 386.237.891) P35.048 = (14.601) (35.045.097.610.703) (813.077) P8.794. The movements in the fair value of plan assets recognized by the Parent Company follow: Balance at beginning of year Expected return on plan assets Benefits paid Actuarial gain (loss) Contributions Balance at end of year 2009 P14.113 6.707 (960.285 = 4.814. Inc.848 (558.509.175 = 1.583.167 = 960.969 4.825) 2006 P13.613) (1.014.172.729.113 = P4.546.546.053 2.023 – P7.729. P0.708) 6.519.550 (1.597.546.113 (960.009.29% 2.201.672.713 = 2009 P4.545) P12.019) – P14.550) P6.650 327.092 = 1.036 (614.232.269 = 2.750.097.874.679.839.776 = (124.891) 1.077) P7.545 (1.0 million in 2009.810 4.917 23.623.096.Changes in the present value of the defined benefit obligation are as follows: Parent Company 2008 2009 P20.221.849.005 (1.886.950.418 = SCCP 2008 P3.30% Present value of the obligation Fair value of plan assets Deficit Experience adjustment on plan liabilities Experience adjustment on plan assets .509.679.1 million in 2008 and = = P0.655.874 1.580.599 = Consolidated 2008 P5.992 = Current service cost Interest cost Net actuarial loss recognized Expected return on plan assets The actual return on the plan assets of the Parent Company amounted to P2.623.849.411.140 (870.41% 4.550) P5.201.546.741.874 = 4.5 million in 2007.584 = P20.584 = P45.613) (731.83% 0.005.672.965 Parent Company 2008 2007 P35.548 = Balance at beginning of year Actuarial loss (gain) Current service cost Interest cost Benefits paid Balance at end of year 96 Annual Report 2009 The Philippine Stock Exchange.317) 100.085 = 870.545) P10.002.500 (870.999 4.411 547.713 = (38.747 401.849 = 2009 P6.248.768) 8.509.100 2009 70.703 3.336 (1.814.548 = 1.436 782.805 = Parent Company 2008 2007 P4.763 = 1.048 = P35. = The major categories of the Parent Company’s plan assets as a percentage of the fair value of total plan assets as of December 31.085) (16.623.708 = 2008 P16.460.336 603.132.582.748 – P4.267.73% 2008 93.881 19.167) 21.085 = The retirement expense included under Compensation and other related staff costs in the statements of comprehensive income are as follows: 2009 P7.626) 721.938.205.132.009.052 P38.44% 28. 2009 and 2008 are as follows: Investment in government debt securities Investment in private debt securities Other assets Amounts for the current and previous years are as follows: 2009 P45.999 1.
419. The year-end balances in respect of brokers (stockholders of the Exchange) included in the balance sheets are as follows: Accounts and other receivable from brokers .297 18.916 = 97 The Philippine Stock Exchange.252.321 2007 P111.248 = 30.779 = 3.552.521. cancellation of matched orders.875 15.598 P6. which are subsequently billed to and collected from SCCP. As of December 31.55 = 2007 P433.368 = 22.187 2.579. Related parties include brokers that are stockholders of the Parent Company. Related Party Transactions Parties are considered to be related if one party has the ability.210.221.652. 2009 and 2008.080 Other revenues includes recoveries from printing of data transaction report. penalty on trading floor.8188.8.131.529 = 2008 P1.344.451 SCCP 2008 2007 P4.418.18 = Annual Report 2009 23.252.net of allowance for impairment losses of P861. accounts and other receivables of the Parent Company from SCCP are eliminated in the consolidated balance sheet.097.81 = 2008 P291.245.946 2008 P58.548 = P3.273 Basic earnings per share are calculated by dividing the net income for the year by the weighted average number of common shares outstanding as of balance sheet date. Other related party transactions include advance payments made by the Parent Company on certain administrative expenses of SCCP such as utilities.097.119 – 5.348 = 33.776 = 4. Inc. has transactions with related parties. The income in respect of the brokers included in the statements of comprehensive income follows: Trading-related fees: Transaction Block sales Subscription Interest income Other revenues 2009 P66.743.041 2006 P3.025 P14. and other fees.566 733. The basic and diluted earnings per share are the same as there were no dilutive potential common shares outstanding. supplies. directly or indirectly. hardware and software maintenance.659 in 2008 = 2009 P1. and other employee benefits. to control the other party or exercise significant influence over the other party in making financial and operating decisions.141.390 = 30.754.Present value of the obligation Deficit Experience adjustment on plan liabilities 22. Net income (a) Weighted average number of outstanding common shares (b) Basic/diluted earnings per share (a/b) 2009 P207.514 566. .221.418 157. Parties are also considered to be related if they are subjected to common control or common significant influence.971. Related parties may be individuals or corporate entities. in its normal course of business.659 in 2009 = and P1.555.243.548 3.779 393.518.776 229.687 P9.830.391 – 1.206.694 = 17. Transactions between related parties are based on terms similar to those offered to non-related parties.418 = 7.424 16.130 = 30.172. Basic/Diluted Earnings Per Share 2009 P7.479. The Parent Company.
114. Revenues Expenses Equity in net income (loss) of an associate Income before income tax Net income Basic/diluted earnings per share 25.014.153 376.094 – 650.689) 423.000. As of December 31. The Group has one reportable business segment which is the equity securities market. The equity securities market provides trading.239.378 = Parent Company 2009 2008 P49.845 = 1.130 14. clearing.038 P34.81 2008 P729.920 = 343.180.910.210.728.714 = Share-based payments 2.520. The amount of the appropriation which is based on available relevant information as of December 31. The segment performance is evaluated based on operating profit or loss and is measured consistently with the income before income tax in the consolidated financial statements.258. its directors and/or officers.738 207.186. requires that a public business enterprise report financial and descriptive information about its reportable segments. Operating Segments.774 291. Reportable segments are operating segments that meet specified criteria.374 = 2007 P33. the said cases are still pending before the courts and quasi-judicial agencies.0 million to cover potential = liability cases filed against the Parent Company. Details of stock exchange transactions outstanding as of balance sheet dates are as follows: 2009 P622.248 6.259 = 301.274 281.553.186. The management monitors the operating results of its business segment for the purpose of making decisions about resource allocation and performance assessment. profit sharing and bonuses.683.405.796 (4.826 433.340 = – 569.927 = 98 Annual Report 2009 The Philippine Stock Exchange.479.405. will be reassessed periodically to reflect material developments made known to the Parent Company.419. 2009.173 P57. paid annual leave. 24.037 = 106. Contingencies In 2007. has contingent liabilities pertaining to outstanding trades as of December 31. depository and information services for the equity market.122 = 2007 P29.910 = 344.702 = Short-term employee benefits include salaries.173 P52.617.Compensation of key management personnel (covering officer positions starting from Assistant Vice President and up) included under Compensation and other related staff costs in the statements of comprehensive income follows: 2009 Consolidated 2008 P44.003 376.815 Post-employment pension and medical benefits 887. Operating segments are components of an entity about which separate financial information is available that is evaluated regularly by the chief decision maker in deciding how to allocate resources and in assessing performance.082 P40.889 = – 569.644.852. Inc. 2009 and 2008.082 P45.55 2007 P993.840 887. vacation and sick leave.858 = P40.846. financial information is required to be reported on the same basis as is used internally for evaluating the performance of operating segments and deciding how to allocate resources to operating segments. and non-monetary benefits.112.446 3. the Parent Company’s BOD appropriated a portion of its retained earnings amounting to P3.904.390 9. Segment Reporting PFRS 8.139 = 135.364. Generally. 2008.743.038 P29. as the central counterparty to stock exchange transactions.082. Short-term employee benefits P54. The Group also has one geographical segment and derives all its revenues from domestic operations.291.18 . The SCCP. The financial information about the sole business segment is presented in the financial statements.
36.000 original shares for the second tranche and the remaining 7.144 = 2008 P1. the December 12.000 shares of the Exchange. respectively. and cash payment is required during the exercise period. 15 and 16.748) 12 2008 – 50. e. Subscription period was from July to December 2009 with an exercise price of P238. Accordingly.37 per share while the fair value at grant date was P135. 26.240) 7.114 P2.754.00.940 shares and 5. 15 and 16.412.3 million. the BOD of the Exchange approved the ESPP for its employees and SCCP’s employees. Inc.844. 2009.760 50.02 per share while the average fair value at grant date was P320. no failed trades occurred from these transactions. The BOD also approved the share allocation on a per rank basis for the offer period.750 MER shares in the name of Land Bank of the Philippines which were cancelled by MER and thereafter issued in favor of Josefina Lubrica.648.843 = 854. 2009. In 2009.Value of shares not yet delivered (net selling) Amount of purchases unpaid (due clearing) 2009 P2. discount of 10% from the offer price.000 (42.608. f. respectively. 2008.4 million and P0.2 million for the Group and Parent = = Company. offer price is fixed based on Volume Weighted Average Price of PSE shares of the month preceding the offer date.127.760 In 2008.760 shares from the first tranche. 2008) pending the downloading by Philippine Depository & Trust Corp. Each offering consists of 50. total of 50. all regular employees in good standing of the Exchange and SCCP with at least 1 year of continuous service as of the offer date is eligible. 2008 was suspended on December 17.047.939. which is based on = = quoted market price. a total of 57. As of January 2010 and 2009. d. Share-based Payments Annual Report 2009 On March 26.351 = 904. On January 23.000 (57. 2008 with an exercise price of P128. 2008 MER transactions were settled through the delivery of MER shares which did not form part of the disputed MER shares.3 million and P0. = = The Exchange processed and finalized the subscription of the availed shares in January 2009 and the stocks were transferred in the name of the employees on January 29. offer date is annual for a period of 3 years exercisable from July to December of each year. with the following terms and condition: a. resulting to an expense amounting to P0.000 shares or about 1% of the outstanding capital stock of the Exchange. which consist of 50.300 shares were availed by Exchange’s and SCCP’s employees. b.000 shares. c. which is based on quoted = = market price. respectively. all transactions outstanding as of balance sheet date were settled.45.301 P3.760 shares of the Exchange were available for availment.920.465 = The settlement of trades of Manila Electric Company (MER) shares executed on December 12. . and a credit to deposit for future stock subscription and additional paid-in capital amounting to P5. 99 The Philippine Stock Exchange. 2008 (included in the outstanding trades on December 31.002. number of shares allotted for the offering is 150. of broker balances due to a dispute over 42.235. The rollforward analysis of number of shares on ESPP is as follows: Outstanding at beginning of year Granted during the year Exercised during the year Outstanding at end of year 2009 7.000 shares of the Exchange were available for availment and the subscription period was from December 2 to 24. Out of the 50.
Events After the Reporting Date On March 10.2 million.653 shares and 5. respectively. 2010. 2010. 2010. 27. the BOD approved the declaration of regular cash dividends of P3. resulting to an expense amounting to P4.Out of the 57.60 per share out of the unappropriated retained earnings of the Parent Company as of December 31. and a credit to deposit for future = = stock subscription and additional paid-in capital amounting to P0.748 shares of the Exchange that were availed of and fully paid by the participants under the ESPP. 52.7 million and P0. respectively.1 million for the Group and Parent Company. Inc.40 per share and special cash = dividends of P6. respectively.7 million and P4. 2009 in = favor of stockholders of record as of March 25.095 shares were availed by the Exchange’s and SCCP’s employees. = = The Philippine Stock Exchange. 100 Annual Report 2009 . The cash dividends will be paid on April 21.
Inc. Construction. “A” Export and Industry Bank. Industrial Sector Electricity. Bogo-Medellin Milling Company. Inc. RFM Corporation Roxas Holdings. Inc. Inc. Inc. Beverage & Tobacco Alaska Milk Corporation AgriNurture. Inc. Jollibee Foods Corporation Liberty Flour Mills. Inc. Inc. Philippine Tobacco Flue-Curing and Redrying Corporation Alliance Tuna International. Euro-Med Laboratories Philippines.Listed Issues as of Yearend 2009 Issue Financials Sector Banks Asiatrust Development Bank. First Metro Investment Corporation I-Remit. Sun Life Financial Inc. Holcim Philippines. Philippine National Construction Corporation Republic Cement Corporation Supercity Realty Development Corporation Sanitary Wares Manufacturing Corporation TKC Steel Corporation Vulcan Industrial & Mining Corporation Chemicals Chemical Industries of the Philippines Chemrez Technologies. Inc. Aboitiz Power Corporation Energy Development (EDC) Corporation First Gen Corporation First Philippine Holdings Corporation Manila Electric Company Manila Water Company. Inc. San Miguel Corporation “A” San Miguel Corporation “B” Tanduay Holdings. San Miguel Brewery. Petron Corporation Phoenix Petroleum Philippines. Inc Central Azucarera de Tarlac. Universal Robina Corporation Vitarich Corporation Victorias Milling Company. EEI Corporation Federal Resources Investment Group. Code CBC GSMI JFC LFM PCKH PF PFB PIP RCI RFM ROX SFI SMB SMC SMCB TDY TFC TUNA URC VITA VMC AGP AGPB BCI CA CAB CMT EEI FED HLCM MMI PNC RCM SRDC SWM T VUL CIP COAT EURO LMG MAH MAHB MIH MIHB MVC PPC AAI FYN FYNB ION Par Value 1 1 1 10 1 10 10 0. East Asia Power Resources Corporation SPC Power Corporation Trans-Asia Oil and Energy Development Corporation Vivant Corporation Food. Inc. Inc. LMG Chemicals Corporation Metro Alliance Holdings & Equities Corporation “A” Metro Alliance Holdings & Equities Corporation “B” Manchester International Holdings Unlimited Corporation “A” Manchester International Holdings Unlimited Corporation “B” Mabuhay Vinyl Corporation Pryce Corporation Diversified Industrials Active Alliance. Inc. Inc. Inc. Mariwasa Siam Holdings. Roxas & Company. Medco Holdings.15 1 1 1 1 1 5 5 1 1 1 1 1 10 6 6 10 10 10 0. San Miguel Pure Foods Company. Inc. First Abacus Financial Holdings Corporation Filipino Fund. Inc. Inc. Inc. Manulife Financial Corporation National Reinsurance Corporation of the Philippines The Philippine Stock Exchange. Banco Filipino Savings & Mortgage Bank Bank of the Philippine Islands China Banking Corporation Chinatrust (Philippines) Commercial Bank Corporation Citystate Savings Bank. Export and Industry Bank. Inc. Inc. Inc. Code Par Value Issue Cosmos Bottling Corporation Ginebra San Miguel. Inc. Vantage Equities. Inc. Inc.35 1 1 1 1 10 1 1 1 1 1 10 1 1 1 1 1 1 1 1 1 1 5 5 1 ACR AP EDC FGEN FPH MER MWC PCOR PNX PWR SPC TA VVT AMC ANI BMM CAT 1 1 1 1 10 10 1 1 1 1 1 1 1 1 1 10 10 The Philippine Stock Exchange. BDO Leasing and Finance. Filsyn Corporation “A” Filsyn Corporation “B” Ionics. Inc. Inc. Inc. Power & Water Alsons Consolidated Resources. “B” Metropolitan Bank & Trust Company Philippine Bank of Communications Philippine National Bank Philippine Savings Bank Philippine Trust Company Rizal Commercial Banking Corporation Security Bank Corporation Union Bank of the Philippines Other Financial Institutions ATR KimEng Financial Corporation Bankard. Banco de Oro Unibank. Infrastructure & Allied Services AGP Industrial Corporation “A” AGP Industrial Corporation “B” Bacnotan Consolidated Industries. Inc.25 0. Inc. Inc. Inc. Inc. Inc. Inc. Inc. ATRK BKD BLFI COL FAF FFI FMIC I MED MFC NRCP PSE SLF V 1 1 1 1 1 1 10 1 1 1 1 1 101 Annual Report 2009 ASIA BDO BF BPI CHIB CHTR CSB EIBA EIBB MBT PBC PNB PSB PTC RCB SECB UBP 10 10 100 10 100 10 10 0. Inc. Pancake House. Inc. Inc. “B” Pepsi-Cola Products Philippines. Energy.25 20 100 40 10 10 10 10 10 . “A” San Miguel Pure Foods Company. Inc. Swift Foods.com. Inc. CitisecOnline. Concrete Aggregates Corporation “A” Concrete Aggregates Corporation “B” Southeast Asia Cement Holdings.
Soriano Corporation Alcorn Gold Resources Corporation Anglo Philippine Holdings Corporation ATN Holdings. Inc. Suntrust Home Developers. Marsteel Consolidated. . Inc. Inc. Inc. Araneta Properties.01 1 1 1 1 1 1 1 1 1 1 1 10 1 1 1 1 1 1 1 1 1 1 50 1 1 1 5 0. Inc. Inc. Lucia Land. Prime Media Holdings. Inc. A.01 0. Liberty Telecoms Holdings. Inc. Seafront Resources Corporation Unioil Resources & Holdings Company. Pilipino Telephone Corporation Philippine Telegraph & Telephone Corporation Philippine Long Distance Telephone Company “Common” Information Technology Boulevard Holdings. Inc. SM Prime Holdings. Inc. Prime Orion Philippines. Inc. Panasonic Manufacturing Philippines Corporation Splash Corporation Steniel Manufacturing Corporation Holding Firms Sector Asia Amalgamated Holdings Abacus Consolidated Resources and Holdings. Gotesco Land.1 1 0. Inc. Inc.5 1 1 1 1 1 1 1 1 1 1 0.Issue Macondray Plastics. Inc. Inc. “B” Wellex Industries. ISM Communications Corporation Nextstage. Services Sector Media ABS-CBN Broadcasting Corporation GMA Network. Globe Telecom. Polar Property Holdings Corporation Primex Corporation Robinsons Land Corporation Philippine Realty & Holdings Corporation Shang Properties. Cebu Property Ventures & Development Corporation “A” Cebu Property Ventures & Development Corporation “B” Cyber Bay Corporation Empire East Land Holdings.01 1 1 1 102 Annual Report 2009 The Philippine Stock Exchange. Inc. Sta. Eton Properties Philippines. Inc. Ayala Corporation Aboitiz Equity Ventures. Inc. Inc. Inc. Ayala Land. Ever-Gotesco Resources & Holdings. Inc. Fil-Estate Land. Belle Corporation A Brown Company. “A” Gotesco Land. Inc. Inc. Inc. “B” Lodestar Investment Holdings Corporation Mabuhay Holdings Corporation Minerales Industrias Corporation MJC Investments Corporation UEM Development Philippines. Inc. “B” Megaworld Corporation MRC Allied Industries. Inc.005 1 1 1 1 1 10 1 1 1 1 1 1 1 0. Philippine Estates Corporation Primetown Property Group. Inc. Inc. Inc. “B” IPVG Corporation Island Information & Technology. Inc. Inc. City & Land Developers. “A” ATN Holdings. Inc.01 1 1 1 100 1 1 1 1 1 1 1 1. Inc. PhilWeb Corporation Code CHI CPV CPVB CYBR ELI ETON EVER FLI GO GOB HP IRC IRCB KEP LAND LND MC MCB MEG MRC PHES PMT PO PRMX RLC RLT SHNG SLI SMDC SMP SMPH SUN UP UW VLL ABS GMA7 MB MBC DGTL GLO LIB PLTL PTT TEL BHI DFNN IMP IMPB IP IS ISM NXT TBGI WEB Par Value 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 1 0. Inc. Inc. Interport Resources Corporation “A” Interport Resources Corporation “B” Keppel Philippines Properties. Inc. Universal Rightfield Property Holdings. Inc. Inc. “B” BHI Holdings. Inc. Inc. Inc. “A” Imperial Resources. Inc. “B” Highlands Prime. Filinvest Land. Metro Pacific Investments Corporation Pacifica. Jolliville Holdings Corporation Keppel Philippines Holdings. Wise Holdings.1 Issue Cebu Holdings. Inc. Inc. Vista Land & Lifescapes.1 1 1 1 1 1 1 50 1 1 0. Code MRAY MUSX PCP PMPC SPH STN AAA ABA AC AEV AGI AJO ANS APM APO ATN ATNB BH BPC DMC FC FDC FJP FJPB FPI HI JGS JOH KPH KPHB LIHC MHC MIC MJIC MK MPI PA POPI PRIM REG SGI SINO SM SOC SPM UNI WHI WHIB WIN ZHI ALCO ALHI ALI ARA BEL BRN CDC CEI Par Value 1 0. Inc. Alliance Global Group. Inc. Inc. Transpacific Broadband Group International. Inc. AJO. Property Sector Arthaland Corporation Anchor Land Holdings. Republic Glass Holdings Corporation Solid Group. Inc. Zeus Holdings. Cityland Development Corporation Crown Equities. MUSX Corporation PICOP Resources. Inc. Inc. House of Investments. Inc. “A” Marsteel Consolidated.. Inc. Benpres Holdings Corporation DMCI Holdings.18 1 1 1 1 1 1 0. Inc. Inc. Inc. “A” Wise Holdings.net Holdings. Inc. Inc. Inc. DFNN Inc. Manila Bulletin Publishing Corporation Manila Broadcasting Company Telecommunications Digital Telecommunications Phils. Inc. Sinophil Corporation SM Investments Corporation South China Resources.01 0. JG Summit Holdings. Uniwide Holdings.1 1 5 5 1 0. “A” Keppel Philippines Holdings. SM Development Corporation San Miguel Properties. Inc. Fil-Estate Corporation Filinvest Development Corporation F & J Prince Holdings Corporation “A” F & J Prince Holdings Corporation “B” Forum Pacific. Inc. Inc. Inc. Inc. Imperial Resources.
“B” Abra Mining & Industrial Corporation Atlas Consolidated Mining & Development Corporation Benguet Corporation “A” Benguet Corporation “B” Century Peak Metals Holdings Corporation Dizon Copper-Silver Mines. Pref. Series C TELC PLDT 10% Cumulative Convertible Pref.Preferred A GLO-PA Philippine Bank of Communications . Inc.00* 1 1 103 The Philippine Stock Exchange. Premiere Entertainment Philippines. Education Centro Escolar University Far Eastern University. Series DD TLDD PLDT 10% Cumulative Convertible Pref. Series N TELN PLDT 10% Cumulative Convertible Pref. Inc. . Pref. Inc. Series B TELB PLDT 10% Cumulative Convertible Pref. Lorenzo Shipping Corporation MacroAsia Corporation PAL Holdings. Mondragon International Philippines. Information Capital Technology Ventures. Series X TELX PLDT 10% Cumulative Convertible Pref. Series Z TELZ PLDT 10% Cumulative Convertible Pref. Inc. Philex Mining Corporation Semirara Mining Corporation United Paragon Mining Corporation Oil Basic Energy Corporation Oriental Petroleum and Mineral Corporation “A” Oriental Petroleum and Mineral Corporation “B” Code ATI ATS ICT KPM LSC MAC PAL TOL DHC GPH LR MJC MON PEP PRC WPI CEU FEU IPO APC ECP ICTV JTH LOTO MET PAX PGPI PHC SEVN AB ABB APX APXB AR AT BC BCB CPM DIZ GEO LC LCB MA MAB NI OM ORE PX SCC UPM BSC OPM OPMB Par Value 1 1 1 1 1 1 1 1 1 10 1 1 1 1 1 1 1 100 1 1 1 1 0.15½% Cum. BFC Banco Filipino Savings & Mortgage Bank . Series EE TLEE Warrants.5 1 100 1 1 1 1 1 1 1 1 0. “B” Apex Mining Company. JTH Davies Holdings. Deposit Receipts GMAP Omico Corporation .Preferred ATSP Benguet Corporation . Series Q TELQ PLDT 10% Cumulative Convertible Pref.15½% Cum.01 1 1 1 1000 100 100 1 3. RPL *Exercise price Par Value 0. Inc. Series L TELL PLDT 10% Cumulative Convertible Pref.25 0. Series S TELS PLDT 10% Cumulative Convertible Pref. Series W TELW PLDT 10% Cumulative Convertible Pref.01 0. Series Y TELY PLDT 10% Cumulative Convertible Pref.01 0.Warrants OMW2 Megaworld Corporation . Waterfront Philippines. Series AA TLAA PLDT 10% Cumulative Convertible Pref. iPeople. Metro Pacific Tollways Corporation Hotel & Leisure Acesite (Philippines) Hotel Corporation Grand Plaza Hotel Corporation Leisure & Resorts World Corporation Manila Jockey Club. Inc.01 Issue Code The Philodrill Corporation OV PNOC Exploration Corporation “A” PEC PNOC Exploration Corporation “B” PECB PetroEnergy Resources Corporation PERC Preferred Allied Banking Corporation . Series J TELJ PLDT 10% Cumulative Convertible Pref.Cumulative Convertible Pref. Inc. . Convertible Pref. Inc. Inc. Inc.Preferred FPHP Globe Telecom.Preferred PBCP Swift Foods. Inc. Omico Corporation Oriental Peninsula Resources Group.44 100 100 1 100 5 25 1 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 10 0. Inc. A BCP Banco Filipino Savings & Mortgage Bank . Inc. Convertible Pref. Series T TELT PLDT 10% Cumulative Convertible Pref. Inc. Series R TELR PLDT 10% Cumulative Convertible Pref. Series G TELG PLDT 10% Cumulative Convertible Pref. BFNC DMCI Holdings.Warrants MEGW1 Small & Medium Enterprises Makati Finance Corporation MFIN Ripple E-Business International. Series P TELP PLDT 10% Cumulative Convertible Pref.01 10 3 3 1 1 1 0. Inc. ABS-CBN Holdings Corporation . Aboitiz Transport System (ATSC) Corporation International Container Terminal Services. Series V TELV PLDT 10% Cumulative Convertible Pref. A ABC Ayala Corporation Preferred Class “A” Shares ACPA Ayala Corporation Preferred Class “B” Shares ACPR Aboitiz Transport System (ATSC) Corporation . Series D TELD PLDT 10% Cumulative Convertible Pref. Series F TELF PLDT 10% Cumulative Convertible Pref. Series U TELU PLDT 10% Cumulative Convertible Pref. Inc. Inc. Philippine Deposit Receipts. Inc. Philcomsat Holdings Corporation Philippine Seven Corporation “Common” Mining & Oil Sector Mining Atok-Big Wedge Company.01 1 0. Deposit Receipts ABSP GMA Holdings. EasyCall Communications Philippines.01 1 1 1 0. Series M TELM PLDT 10% Cumulative Convertible Pref. Keppel Philippines Marine. .Phil. “A” Apex Mining Company. Inc. Non-Conv. Series A TELA PLDT 10% Cumulative Convertible Pref.Phil. DMCP First Philippine Holdings Corporation . “A” Atok-Big Wedge Company. Pacific Online Systems Corporation MIC Holdings Corporation Paxys. Lepanto Consolidated Mining Company “A” Lepanto Consolidated Mining Company “B” Manila Mining Corporation “A” Manila Mining Corporation “B” NiHAO Mineral Resources International.15% Cum.05* 0. Series I TELI PLDT 10% Cumulative Convertible Pref. Inc.01* 1. Annual Report 2009 . SFIP PLDT 10% Cumulative Convertible Pref. Inc. Inc. Inc. GEOGRACE Resources Philippines. Inc.Issue Transportation Services Asian Terminals. Conv. Series K TELK PLDT 10% Cumulative Convertible Pref. Prime Gaming Philippines. Philippine Racing Club. Series BB TLBB PLDT 10% Cumulative Convertible Pref. Inc. Inc. Inc. Inc.8% Cumulative Convertible Pref. Series O TELO PLDT 10% Cumulative Convertible Pref.1 0. Inc. Diversified Services APC Group. Inc. Inc. Etc.1 0.01 0.10* 0. Series H TELH PLDT 10% Cumulative Convertible Pref. Series CC TLCC PLDT 10% Cumulative Convertible Pref. Series E TELE PLDT 10% Cumulative Convertible Pref.
Ortigas Center. DE CASTRO SECURITIES CORP. GODINEZ & 111 COMPANY. (Corporate Trading Participant) MARIANO U. 687-0936 Fax: 687-3738 info@accordcapital. 638-6689 Fax: 636-5108 alphasec@pldtdsl. Tower One & Exchange Plaza Ayala Avenue cor.ph ALAKOR SECURITIES CORPORATION (Corporate Trading Participant) GERARD ANTON S. Mandaluyong City Office: 631-8173. Sales 634-2107 Retail/Customer Svc. EQUITIES CORPORATION (Corporate Trading Participant) JOSE ROBERTO DELGADO (Nominee Trading Participant) Nationality: MALAYSIAN Trading Floor: AYALA Contact Information: 2/F. INC. INC. ALFRED A. Mary Bachrach Building Port Area. Phinma Plaza 39 Plaza Drive.abacus-sec.ph www. SANTOS. Leviste Street. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 3rd Floor. Makati City Office: 816-2918 892-9841 to 49 loc. Makati City Office: 848-2915 Office of the President 810-0930 Office of the EVP 848-2564 Exchange: 891-9115 Fax: 848-2572 wcris@angping. DE CASTRO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 7/F. INC. 242-5127 to 31 Exchange: 634-5160 & 63. Legaspi Village.. 527-5291 Exchange: 891-8586 Fax: 527-8919.ph www. 527-8912 255 . (Corporate Trading Participant) LAMBERTO M. Pasig City Office: 638-2388 to 93.com.abcapitalonline.ph ANGPING & ASSOCIATES SECURITIES.accordcapital. Exchange Rd. (Corporate Trading Participant) ALEJANDRO T. CABANGON (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: G/F Fortune Life Building 162 Legaspi Street. 104 110 AAA SOUTHEAST EQUITIES. Makati City Office: 848-7160 to 63 Exchange: 848-7160 to 63 Telefax: 848-7163 atcastro@info. BANGAYAN (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 1906 Ayala Avenue Condominium 6776 Ayala Avenue. Salcedo Village. T. (Corporate Trading Participant) WILMA C.637-4496 Exchange: 634-6928 to 29 Fax: 631-5166 103 ALPHA SECURITIES CORPORATION (Corporate Trading Participant) JONATHAN JOSEPH S.ph 106 104 Annual Report 2009 The Philippine Stock Exchange. (Corporate Trading Participant) SHIRLEY Y. Makati City Office: 891-1008 to 10 Exchange: 891-1008 to 10 Telefax: 891-1010 aasec@pldtdsl. Manila Office: 527-8888 loc. GODINEZ (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 340 Nueva Street. Ortigas Center. Pasig City Office: (Trunk Line) 687-5071 687-3224. PSE Centre-East Tower.com 112 232 ANSALDO. Pasig City Office: 634-5104 Exchange: 634-6993. 103 Exchange: 891-9570 to 72 Fax: 812-1831 AB CAPITAL SECURITIES. Manila Office: 242-5124 to 25.com.com.List of Active Trading Participants A & A SECURITIES. 638-3764 Exchange: 638-6692 to 93. RAMOS (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 5/F. INC. 634-6521 to 22 Fax: 242-5121 APEX PHILS. SOO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 29/F. East Tower – PSE Centre Exchange Road.ph 101 ABACUS SECURITIES CORPORATION 102 (Corporate Trading Participant) PAULINO S. Orient Square Building Emerald Avenue. JR.com.com. P. INC. 634-2109 Accounting 634-2105 customerservice@abacus-sec. The Peak 107 L. Ortigas Center. Inc. Rockwell Center Makati City Office: 898-7555 Exchange: 891-9135 Fax: 898-7597 abcsi@abcapital. WEE (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: G/F. Binondo.com ACCORD CAPITAL EQUITIES CORPORATION (Corporate Trading Participant) PAUL L. Paseo de Roxas. Unit EC-05B.com www. 219. CRISOSTOMO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Suite 2003-2004. 634-6842 Fax: Operations 634-5206 Inst’l.ph sgogola@angping. 634-6232 to 34.net A. 687-3733 Exchange: 687-0911. Quad Alpha Centrum 125 Pioneer Street. KUI (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 23/F. 237 (Corporate Trading Participant) D.
ph 118 167 BELSON SECURITIES. West Tower – PSE Centre. 6386. INC. BDO South Tower. 241-1345 Exchange: 634-5186 to 90 Fax: 241-1261 BERNAD SECURITIES. Mandaluyong City Office: 724-7586 to 90. dela Costa Street. ANG (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 12/F. Quezon City Office: 742-5850. cor. Galleria Corporate Center EDSA cor.. 412-3444 Exchange: 891-9771 to 73 Telefax: 412-3448 120 BA SECURITIES. CLMC Building 259-267 EDSA. Makati City Office: 878-4043 Exchange: 891-8534. 891-8571 Fax: 634-5813 apcap@compass. Paredes St. H. 301-305. Makati City Office: 845-3421 to 26 Exchange: 891-9370 to 75 Fax: 845-3418 asiasec@info. 848-7015 Fax: 840-7175 . INC. 683-0201 Exchange: 891-9337 to 38 Fax: 687-1760 atcsettle@pacific. Ortigas Avenue.com. 840-7000 loc. (Corporate Trading Participant) TONY O.ph AURORA SECURITIES.com. CHUA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 24/F. (Corporate Trading Participant) DAVID O. V. Binondo. 122 (Corporate Trading Participant) EMMANUEL G. 742-6032. 6385. 635-5665 Fax: 523-7907 123 272 The Philippine Stock Exchange. 1033 M. Ortigas Center.com. INC. dela Costa St. 722-0132 Exchange: 891-9672 to 75 Telefax: 722-0132 baseccom@info. (Corporate Trading Participant) ANSELMO TRINIDAD JR. 6068 Exchange: 848-5836. del Pilar Street. H. Exchange Road. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Status: ACTIVE Contact Information: Unit 6F. 6391. INC.ph 109 ASTRA SECURITIES CORP. Tower One & Exchange Plaza Ayala Avenue cor. (Corporate Trading Participant) BENJAMIN CO CA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Rm. 6th Floor 8101 Pearl Plaza. 524-5186. INC..net B. 891-9124 to 25 Fax: General 848-5738 Settlements 848-5285 atrke_sec@atr. Makati City Office: 848-5298. Paseo de Roxas. Manila Office: 524-5326. Paseo de Roxas. 687-1768 687-2866. Inc.ph 220 BDO SECURITIES CORPORATION 279 (Corporate Trading Participant) EDUARDO V. Belson House 271 EDSA. EMMANUEL EDWARD C. INC. Downtown Center Bldg.ph ATR KIMENG SECURITIES. H. Equitable PCI Tower I Makati Avenue cor. INC. SISON (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 8/F. 6382 840-7000 loc. (Corporate Trading Participant) RAMON B. (Corporate Trading Participant) ELPHEGE WONG (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 3/F. ARNAIZ (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 17/F. INC. 724-7580 Exchange: 891-9860 to 68 Fax: 721-9238 105 Annual Report 2009 ASIA PACIFIC CAPITAL 116 EQUITIES & SECURITIES CORP. INC. 516 Q. Makati Ave. Mandaluyong City Office: 727-5374. CO (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 24/F.com 119 124 BENJAMIN CO CA & COMPANY. Chatham House 116 Valero cor. (Corporate Trading Participant) BENITO B. Araneta Avenue. KING (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 20/F. 524-5267 Exchange: 635-6756 to 60. 6392. Pearl Drive Ortigas Center.ARMSTRONG SECURITIES. Salcedo Village. Pasig City Office: 683-0204. LIM (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 4/F. FRANCISCO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 20th Floor. ASIASEC EQUITIES.net. Pasig City Office: 634-8321 to 24 Exchange: 634-8321 to 24 Telefax: 634-8321 ausecinc@pldtdsl. H. V. (Corporate Trading Participant) ANG BIAO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Room 401-403. Makati City Office: 848-6421 to 27 Exchange: 891-9126 to 27 Fax: 848-6428 astrasecurities@gmail. Tower One & Exchange Plaza Ayala Avenue cor. Ermita. 891-8563 Fax: 840-7175 388 ATC SECURITIES. (Corporate Trading Participant) GIDEON G. 849-8888 Dealing Room 848-5288 Exchange: 891-9120. Manila Office: 241-1261. 891-8542. CHUA SECURITIES CORPORATION MICHAEL LI CHUA (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 872 G.com. H. Herrera Streets. Makati City Office: 878-4070. Quezon City Office: 634-5621 Exchange: 891-9550 to 59.
Makati City Office: Trunkline: 860-4000 Sales & Dealing: 860-4030 Exchange: 891-9945. Citibank Tower 8741 Paseo de Roxas. 634-6888. Pasig City Office: 636-5411 Fax: 634-6958. 2010 Nationality: DUTCH Trading Floor: AYALA Contact Information: 18/F. 636-3134. Makati City Office: Marketing 816-9190. CO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 8/F. 845-5541.ph DAVID GO SECURITIES CORPORATION (Corporate Trading Participant) DAVID C. Binondo. Metro Manila Office: 887-5457. Herco Center. 634-5180. 636-3138 Exchange: 636-3001 to 05 Fax: 636-1167 email@example.com CAMPOS. 845-5545 Fax: 818-7809. Fort Bonifacio Global City. 3rd Floor. LANUZA & COMPANY. The Enterprise Center 6766 Ayala Avenue. Taguig. East Tower – PSE Centre Exchange Road. Makati City Office: 813-7344. Binondo.com. 309-4258 Exchange: 634-5745 to 46. (Corporate Trading Participant) CONRADO F.ph DEUTSCHE REGIS PARTNERS. INC.ph www. 636-3135. 848-5543. INC. Ortigas Center Pasig City Office: 635-5735 to 40 Exchange: 634-6976 to 80 Fax: 634-6696 130 CITISECONLINE. (Corporate Trading Participant) EDWARD K. 816-9192. BAUTISTA (Nominee Trading Participant) Nationality: SINGAPOREAN Trading Floor: AYALA Contact Information: 23/F. Ortigas Avenue. GO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Rm. 143 142 141 209 133 . 845-5543 Administration 845-5289. 1105 Galleria Corporate Center EDSA cor.biz. Bonifacio Center. Quezon City Office: 633-7044 to 46 Exchange: 891-9880 to 81 Fax: 633-7047 CITISECURITIES.. Makati City Office: Trunk line 894-6600 Research 894-6636 to 47 Sales 894-6651 to 58 Operations 894-6618 to 35 Exchange: 891-9090 Fax: Sales 894-6605 Research 894-6638 Operations 894-6622 204 The Philippine Stock Exchange. 845-5541. Pasig City Office: 634-6881 to 87. Inc. 128 (Corporate Trading Participant) GERARDO O. The Fort Strip Bldg. TEMPONGKO (Nominee Trading Participant) Nationality: DUTCH Trading Floor: AYALA Contact Information: 19/F Tower 2. Paseo de Roxas.com DBP-DAIWA SECURITIES SMBC PHILIPPINES. 634-5178 Fax: 242-2467 dgosec@yahoo. 638-3510. Paseo de Roxas. 309 Federation Center Building Muelle de Binondo.com CENTURY SECURITIES CORPORATION CHAN KOK BIN (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Rm. INC.COM. 816-9678 Operations 845-5735. 634-5755 Fax: 241-0352 387 DA MARKET SECURITIES. BPI Head Office Ayala Avenue cor. Makati City Office: 818-7736 Exchange: 848-7301 Fax: 818-7331 CUALOPING SECURITIES CORPORATION (Corporate Trading Participant) VICTOR SAY HIPEK (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Suite 1801 Tytana Centre Plaza Lorenzo Ruiz. 114 Benavidez Street. Ortigas Center. Ortigas Center.bpitrade. 759-4073 Fax: 860-4065 raymond. Tower One & Exchange Plaza Ayala Avenue cor. YAP (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 19/F. INC. (Corporate Trading Participant) EMMANUEL O. PSE Centre. Manila Office: 241-0262.com COHERCO SECURITIES. 242-2467 Exchange: 634-5048 to 49. BATE (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 2401B East Tower. Exchange Road. LEE (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 27/F. INC. 891-9119 Fax: 848-0105 admin@dbpdaiwasmbc. AGUILA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Unit 6. INC.. (Corporate Trading Participant) NESTOR S. INC. 845-5733 firstname.lastname@example.org@clsa. INC. (Corporate Trading Participant) No Nominee Trading Participant as of March 31. East Tower – PSE Centre Exchange Road. 323 (Corporate Trading Participant) RAYMOND M. Legaspi Village. (Corporate Trading Participant) WILFRED T. Manila Office: 242-2375 & 79. 645-4632 203 106 Annual Report 2009 CLSA PHILIPPINES.com. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 20/F. 887-6407 Exchange: 891-9143 to 44 Telefax: 887-5457 Exchange 891-9144 customercare@damarket.BPI SECURITIES CORPORATION 126 (Corporate Trading Participant) SPENCER T. 816-9554 Exchange: 891-9930. 813-7454 Exchange: 891-9109. LANUZA JR.
891-9418 to 19 Fax: 759-4326 159 The Philippine Stock Exchange. Manila Office: Makati 848-5491 to 95 Binondo 242-4006 to 09 Exchange: 891-9340 to 44 Fax: Makati 848-6349 Binondo 241-0178 eastern_securities@yahoo. INC.dtrade.com EASTWEST CAPITAL CORPORATION EDILBERTO B. 634-5390 to 91. Makati City Office: 878-0775.ph EQUITIWORLD SECURITIES. JACINTO Nationality: FILIPINO Trading Floor: AYALA Contact Information: Makati Sales Office: 7/F. (Corporate Trading Participant) DIONISIO E. 878-0790. 634-6917.com. PSE Centre. Exchange Road. 891-9418 to 19 Exchange: 759-4320 to 23. ROXAS (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 779 Harvard Street. Makati City Office: 891-9451 to 58 Exchange: 891-9451 to 58 Fax: 891-9459 to 60 154 328 149 147 261 283 153 FIRST INTEGRATED CAPITAL SECURITIES. Salcedo Village. Tower One & Exchange Plaza Ayala Avenue cor. (Corporate Trading Participant) FRANCISCO S. Paseo de Roxas. ExportBank Plaza Chino Roces Avenue cor. CORP. Gil Puyat Avenue. Rizal Street. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 12/F.com. Makati City Office: 897-6807 Exchange: 891-9801. 897-6805 eastwest@ubix.DIVERSIFIED SECURITIES. 241-9293 Exchange: 891-9246 to 48 Fax: 243-3232 eccsi@yahoo. GARCIA JR. ERNESTO CHUA CHIACO (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 113 Rentas Street. INC. Paseo de Roxas. Alfaro Streets. Poblacion. Makati City Binondo Head Office: 17/F. GAISANO (Nominee Trading Participant Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6/F.net DW CAPITAL. TIU (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 2/F. Inc. BRAVO (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 2nd Floor Filben Building. Binondo. (Corporate Trading Participant) BEN C. CHUA CHIACO SECURITIES. JOSEPH Y. 633-9707. PDCP Bank Centre Herrera cor. 8747 Paseo de Roxas. Mandaluyong City Office: 724-1584. 633-9711 Fax: 810-3536 243 107 Annual Report 2009 F. Tower One & Exchange Plaza Ayala Avenue cor. CARPIO JR.ph EIB SECURITIES. Brg. Makati City Office: 818-6774. Ortigas Center. FIDELITY SECURITIES. Binondo. YAP SECURITIES. (Corporate Trading Participant) RAMON C. 162 (Corporate Trading Participant) FELIPE U.ph 150 EVERGREEN STOCK BROKERAGE & SECURITIES. 634-6217 to 18 Fax: 813-0865 . (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 11/F. (Corporate Trading Participant) DERWIN NGO WONG (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 1403A West Tower. 848-5396 Fax: 886-1806 contact@e-securities. INC. P. Tower One & Exchange Plaza Ayala Avenue cor. Tower One & Exchange Plaza Ayala Avenue cor. Pasig City Office: 636-5796 to 97.com www. 891-9803 Fax: 897-6807. 812-6267 Exchange: 634-7110. Paseo de Roxas. (Corporate Trading Participant) ANTONIO A. Manila Office: 242-5145. 886-1801 to 04 Exchange: 848-5386. Tytana Building. INC. Paseo de Roxas. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 5/F. Sen. 779 J. 634-6630 to 31 Fax: 892-4330 wena_ruiz@hotmail. INC. INC. Makati City Office: 848-5401. Makati City Office: 892-2890.com. 753-5250 to 53 Exchange: 636-0814.com EAGLE EQUITIES. INC. INC. INC. INC. LOPA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 8/F. 725-2777 Exchange: 634-6684. 636-5793 to 95 Exchange: 636-5793 to 97 E. Makati City Office: 856-7680 Exchange: 634-5171. (Corporate Trading Participant) GENEROSA R. 633-9710. 892-4330. YAP (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 17/F Lepanto Building. (Corporate Trading Participant) MANUEL MAÑALAC JR. 848-5403 to 06 President/GM 848-5418 Exchange: 891-9755 to 58 Fax: 848-5423 eqworld_87@globelines. Makati City Office: 759-4320 to 23. JTKC Centre 2155 Pasong Tamo. 634-6283 Fax: 725-2777 145 EASTERN SECURITIES DEV’T.
157 (Corporate Trading Participant) TRINIDAD Y. MANCILLA JR. DISPO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 18/F. INC. (Corporate Trading Participant) JOSEPH L. INC. Ortigas Avenue.ackerman@eudoramail. ORTIGAS III (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 10th Floor. (Corporate Trading Participant) FRANCISCO M. Makati City Office: 859-0600 Exchange: (a. Makati City Office: 891-9070 to 72 Exchange: 891-9070 to 72 Fax: 891-9353 i. (Corporate Trading Participant) MA. 1704. Ortigas Building. INC. Pasig City Office: 636-0197. 891-9243 to 44 Exchange: 891-9240 to 45 Fax: 848-6175 fosisec@gmail. 631-2733 Exchange: 634-5149 to 53 Fax: 631-2668 G. World Trade Exchange Bldg. 634-6256 Telefax: 637-6256 gdtaninc@yahoo. 910-6188 Fax: 910-6189 email@example.com 175 108 Annual Report 2009 The Philippine Stock Exchange. Sedeño St. Tower One & Exchange Plaza Ayala Avenue cor.com . 759-4136 to 37 Exchange: 891-9920 to 22 Telefax: 848-6341 to 43. 20th Floor..B. INC.. Pasig City Office: 634-6255. (Corporate Trading Participant) JESUS M. (Corporate Trading Participant) DAVID L. (Corporate Trading Participant) IGNACIO B. (Corporate Trading Participant) GILBERT TAN (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 22/F. (formerly Emerald Ave. Ortigas Center. 891-9230 Fax: 891-9231 guildsec@tri-isys. DELA PEÑA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Rm. 174 CHIA KIM TECK (Natural Person Trading Participant) Nationality: SINGAPOREAN Trading Floor: AYALA Contact Information: Suite 2002. GIMENEZ SECURITIES.com I. F. ACKERMAN (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 7/F. 215 Juan Luna Street. Binondo. Paseo de Roxas.) 891-9514 to 17 Fax: 859-0699 firstmetrosec@globelines. 633-7485 to 86 Exchange: 634-6765 & 69.com I. The Orient Square. INC.com. BENNETT SECURITIES. 634-6235 Telefax: 245-6959 hebsi@info. 687-7956. Makati City Office: 891-9240. 634-5408. 637-5686 Exchange: 634-6255. Paseo de Roxas. Makati City Office: 813-2839. ALVAREZ (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 12/F. Tower One & Exchange Plaza Ayala Avenue cor. PS Bank Center. 1605 Office: 687-7955. East Tower – PSE Centre Exchange Road. INC. Pasig City Office: 631-2674. Pasig City.241-6458 Exchange: 634-5030. INC. Ortigas Center. D. 634-5168 Fax: 642-7299 179 170 288 180 GUILD SECURITIES. Manila Office: Executive Office 242-5733 Dealing Room 241-6284. INC.m. 172 (Corporate Trading Participant) ANTONIO B. INC. 759-4136 to 37 GOLDEN TOWER SECURITIES & HOLDINGS. LUISA C. 777 Paseo de Roxas cor. TAN & COMPANY. Tower One & Exchange Plaza Ayala Avenue cor. Ortigas Ave. 891-9234 to 35 Exchange: 891-9232 to 37.com 161 285 HDI SECURITIES. Inc. Pasig City Office: 628-0000 local 306 Exchange: 634-6260 to 61. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 22/F. ACKERMAN & COMPANY. Makati City Office: 848-6341 to 42. Ortigas Center. GIMENEZ (NOMINEE) (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: No. INC. 634-6263 to 65. 687-7957. 42 3/F New Rosario Ortigas Arcade. INC. 634-6983 & 87 Fax: 633-7487 168 H.ph 267 GLOBALINKS SECURITIES & STOCKS. Tower One & Exchange Plaza Ayala Avenue cor. Paseo de Roxas. Vernida I Condominium 120 Amorsolo Street. KALAW (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 12/F. Makati City Office: 891-9230. Legaspi Village. WUSON (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 7/F. E. Paseo de Roxas. FIRST ORIENT SECURITIES. East Tower – PSE Centre Exchange Road. 892-1316 Exchange: 891-9680 to 82 Fax: 813-0321 GOLDSTAR SECURITIES.FIRST METRO SECURITIES BROKERAGE CORPORATION (Corporate Trading Participant) ROBERTO JUANCHITO T. Rosario Ortigas Extn.com FRANCISCO ORTIGAS SECURITIES.). (Corporate Trading Participant) ANDRES LAO HIAN LIONG (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 4/F.
com INTRA-INVEST SECURITIES. PONCE-ENRILE (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 8/F. INC. Gil Puyat Avenue (nr. Annual Report 2009 . Ortigas Center. INC. Tower One & Exchange Plaza Ayala Avenue cor. (Corporate Trading Participant) ISMAEL G. Federal Tower Dasmariñas Street. 634-5713 Fax: 521-7692 LOPEZ. Manila Office: 241-0594. LAUREL (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 2/F. Paseo de Roxas. ACT Tower 135 Sen. MORGAN SECURITIES 185 PHILIPPINES. TIOTUICO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Ground Floor. Makati City Office: 810-1183. Makati City Office: 891-9193 to 94 Exchange: 891-9190 to 92 Fax: 891-9194 igcsec@pldtdsl. 687-6317 Telefax: 411-2196 188 KING’S POWER SECURITIES. (Corporate Trading Participant) EDUARDO V. ABALOS & CO. INC. 631-8651 loc. LOCSIN. INC. 810-1353 to 54 810-1440 & 46 Exchange: 891-9530 to 33 Fax: 817-2486 LITONJUA SECURITIES. 895-7310 Exchange: 891-9640 to 41 Fax: 896-0835 195 183 109 197 169 181 LUCKY SECURITIES. INC. 634-6786.ph 389 182 J. M. GOBING (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 19/F. INC. Binondo. EDSA Central Square Shaw Boulevard. Manila Office: 521-1951 to 57 Exchange: 634-7178. INC. 242-9385 Exchange: 637-3159 to 61 Fax: 242-9392 125 LARRGO SECURITIES COMPANY. Gil Puyat Avenue. DE LEON (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 11/F. INC. 634-5710 Fax: 633-4716 imperdga@yahoo. Makati City Office: 848-7032 to 33. CHING (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Room 1602. (Corporate Trading Participant) KELLY LIM-BATE (Nominee Trading Participant) Nationality: CAYMAN ISLANDS Trading Floor: TEKTITE Contact Information: 31/F. (Corporate Trading Participant) DIONISIO LOPEZ (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Roofdeck. Paseo de Roxas. Mandaluyong City Office: 633-2686. 145 Exchange: 634-5161 & 66. 634-5739. 757-2101 Exchange: 687-2364. Makati City Office: General 885-7700. (Corporate Trading Participant) JORGE S. 634-5717. (Corporate Trading Participant) AMPARO V. MRT) EDSA. 244 Escolta Street. (Corporate Trading Participant) JOSE MARIA A. LEDESMA & COMPANY. INC. Urban Building 405 Sen. New Manila. 242-9380. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Room 205 DITZ Building 444 T.. (Corporate Trading Participant) LEONIDES C. Paseo de Roxas. BARCELON (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Unit 34 Casa Nueva. Salcedo Village. 687-2370 Fax: 885-7058 to 59 JAKA SECURITIES CORPORATION (Corporate Trading Participant) KATRINA C. 725-1004 Exchange: 635-0236. A & T Building.com. Manga Road. 634-6747 & 60 Exchange: 634-5382 to 83. M.net IMPERIAL. CARLOS J. INC. DE GUZMAN. 198 (Corporate Trading Participant) EDDIE T. 193 MARIA PAZ R. P. Philam Life Tower 8767 Paseo de Roxas. 634-5707 Fax: 634-6826 The Philippine Stock Exchange. 891-9441 to 42 Exchange: 891-9441 to 46 Fax: 848-7034 140 J. Makati City Office: 895-0624. Manila Office: 242-3048 to 49 Exchange: 848-5605 to 07 Fax: 241-1417 kings389@yahoo. Inc.IGC SECURITIES. Rufino Tower Building 6784 Ayala Avenue. INC. Binondo. (Corporate Trading Participant) EDWARD GO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6/F. INC. Makati City Office: 848-7122 to 24 Exchange: 848-6413 to 15 Fax: 848-7121 JSG SECURITIES. BARCELON & COMPANY. Kalaw Street. Pasig City Office: 634-6826. West Tower – PSE Centre Exchange Road. Sales 885-7801. Tower One & Exchange Plaza Ayala Avenue cor. Makati City Office: 813-8293 to 94 Exchange: 891-9206. 634-5411. 891-9208 Fax: 892-1290 INVESTORS SECURITIES. Tower One & Exchange Plaza Ayala Avenue cor. Quezon City Office: 725-1001. LITONJUA JR. GO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 4/F. CRUZ (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 10/F.
TAN.com. INC. 208 (Corporate Trading Participant) MANUEL D. Ortigas Center. Tower One & Exchange Plaza Ayala Avenue cor. 213 200 206 OPTIMUM SECURITIES CORPORATION 215 (Corporate Trading Participant) EDDIE S. (Corporate Trading Participant) RONALDO S. SHIH (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 28/F.LUY’S SECURITIES COMPANY. 11 E. 857-0834 Exchange: Fax: 857-0910.severino@asia. 890-7336. Binondo. K. JR.com MANDARIN SECURITIES CORPORATION (Corporate Trading Participant) CHARLES H. 857-0896. 890-1939 Exchange: 891-9350 to 58 891-9350. ADB Avenue corner Garnet & Sapphire Roads. 241-8043.com . East Tower – PSE Centre Exchange Road. Makati City Office: 848-5153 to 54 Exchange: 891-9170 to 74 Fax: 848-5154 panasec@edsamail. Inc. 241-6890 Exchange: 891-9306 to 08 Fax: 241-6890 211 110 Annual Report 2009 The Philippine Stock Exchange. INC.com www. INC. Pasig City Office: 635-6261 to 64 Exchange: 634-6931 to 36 Fax: 634-6937 meridiansec@yahoo. INC. 210 (Corporate Trading Participant) WILLIAM GAWECO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 748 C. O. 634-5721 Fax: 242-1743 firstname.lastname@example.org 218 201 MOUNT PEAK SECURITIES.mountpeak.. 243-1953 Exchange: 891-9601 to 03 Fax: 241-8042 Info@mountpeak. Ortigas Center. Building. (Corporate Trading Participant) RICHARD L. United & 2nd Streets. 891-9316 Fax: 819-1130 199 121 MDR SECURITIES. (Corporate Trading Participant) ASTRID MELODY LIM (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 3/F Goodwill Building 393 Sen. ROJAS (Nominee Trading Participant) Nationality:CAYMAN ISLANDS Trading Floor: AYALA Contact Information: 22nd Floor 6750 Ayala Avenue Bldg. SALONGA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 27/F. 750-2440 Exchange: 891-9309. Makati City Office: 884-1271 to 85 Exchange: 634-6517 to 20 Fax: 884-1384 MARIAN SECURITIES. RECTO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6th Floor. Building cor. Ayala Avenue.ph NIEVES SANCHEZ. Gil Puyat Avenue. (Corporate Trading Participant) TERESITA P. INC. INC. Makati City Office: 898-2984. 631-3989. Paseo de Roxas. 890-6792. 231 Juan Luna St.com. Makati City Office: 884-1271 to 85 Exchange: 634-5175 to 76. Juan Luna St. 706-2169 Exchange: 891-9226 to 28 Mobile: 0922-8814788. 231 Juan Luna Street. 0922-8823136 MERCANTILE SECURITIES.. INC. INC. (Corporate Trading Participant) PAULO C. Pasig City Office: 631-7831 to 36. 0922-8823137. Binondo. LKG Tower 6801 Ayala Avenue. 242-1767 Exchange: 634-5711 to 12. LKG Tower 6801 Ayala Avenue.. Binondo. (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 28/F. Makati City Office: 857-0888. 633-2629 Exchange: 891-9581 to 85 Fax/Telefax: 631-8834 / 633-2629 PAN ASIA SECURITIES CORPORATION (Corporate Trading Participant) LUCIO K. JOSE (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: No. Unit 617AIC-Burgundy Empire Tower.com 205 NEW WORLD SECURITIES. Kapitolyo. 634-6523 to 24. 857-0912 cynthia. Pasig City Office: 706-2131. Bo. (Corporate Trading Participant) JOAN CHAI CHU (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Room 202 CNC Investment Bldg. SR. CORP. 856-2880 Fax: 895-2376 MERIDIAN SECURITIES. ENRIQUE LUY. Manila Office: 242-1759. 634-6850 to 51 Fax: 884-1384 MACQUARIE CAPITAL SECURITIES (PHILIPPINES). PACHECO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Room 400 CNC Investment Bldg. LEE (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Universal Family Center Building 2232 Pasong Tamo Extension Makati City Office: 819-1134. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 9/F. Manila Office: 241-7990 & 92. Manila Office: 241-7142.
MADRID (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Unit 19C. LIM (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 20/F. Salcedo Village. 891-9045 Fax: 840-7175 nilo. Makati Office: 887-1178 to 79 Exchange: 891-9301 to 03 Telefax: 887-1178 223 PUBLIC SECURITIES CORPORATION (Corporate Trading Participant) JIMMY T. U. 893-4341 Exchange: 891-9952 to 55. 241-0547 Exchange: 891-9184 to 89 Fax: 241-0166 qualsec@pldtdsl. (Nominee Trading Participant) FILIPINO Trading Floor: AYALA Contact Information: Executive Office: 12/F. 891-9222. INC.santana@equitablepcib.V.ph QUALITY INVESTMENT & SECURITIES CORP. JR. Makati City Office: 811-3064 to 67. INC. INC. 811-4526 Exchange: 891-9490 to 93 Fax: 811-4706 psc@i-manila. Makati City Backroom Office: 11/F. (Corporate Trading Participant) RENE R. GO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 8/F. Paseo de Roxas. Pasay City Office: 526-3510.com.. LEE (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 675 Lee Street. Inc. Tower One & Exchange Plaza Ayala Avenue cor. 241-0486. ANTONIO Y. San Marcelino Street. 878-4562 to 63 Operations 878-4559 to 60 Compliance 878-4564 Exchange: 891-9008 to 09. Makati City Office: 817-8433 & 79. (Corporate Trading Participant) ROBERT COYIUTO JR. INC. Paseo de Roxas. dela Costa St. Avenue cor. GALANG (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 4/F. 840-2991 Fax: 893-4340 pcci. 276 (Corporate Trading Participant) FRANCISCA S. Makati City Office: Dealing Room 878-4556. Makati City Office: 814-5700 Exchange: 891-9162. Makati City Office: 893-3920. PNB Financial Center Roxas Boulevard. 224 (Corporate Trading Participant) OMAR BYRON T. N. P.net. Binondo. 811-3201 Exchange: 634-6203 to 07. Legaspi Village. (Corporate Trading Participant) BENJAMIN Y. 231 PNB SECURITIES. 131 (Corporate Trading Participant) GABRIEL U. Corinthian Plaza. PCCI Corporate Center 118 L.PAPA SECURITIES CORPORATION 219 (Corporate Trading Participant) MYRON TIMOTHY P. Paseo de Roxas. 878-4558. COYIUTO SECURITIES. 832-5461 / Dealing 526-3478 Exchange: 891-9841. H. MIER (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 3/F. cor. Tower One & Exchange Plaza Ayala Avenue cor. Salcedo Vill.com 229 230 111 The Philippine Stock Exchange. PAPA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6/F. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 5/F. Equitable PCI Tower I Makati Ave. INC. Mandaluyong City Office: 724-5207 Exchange: 891-9201 to 05 Fax: 724-7210 R. Tower One & Exchange Plaza Ayala Avenue cor. TEE (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 14/F. Esteban Streets.com carol.sbc@eastern.. 848-6284 to 85.ph PCCI SECURITIES BROKERS CORP. INC. Makati City Office: 848-5915 to 17 Exchange: 891-9593 to 95 Telefax: 848-5917 225 233 Annual Report 2009 .com PHILIPPINE EQUITY PARTNERS. 815-1308 Exchange: 891-9630 to 32 Fax: 815-1308 email@example.com@equitablepcib. Manila Office: 241-0072. Manila Office: 526-4207. Citibank Tower Citibank Plaza 8741 Paseo de Roxas. 526-3678. PPL Building. 891-9097 Fax: 814-5793 to 94 338 PHIL-PROGRESS SECURITIES CORP. 893-3923 to 24. 526-4208 &10 Exchange: 891-8579 to 80 Fax: 526-4208 PLATINUM SECURITIES. 891-9846. Antel 2000 Corporate Center 121 Valero St. YAOKASIN. 282 (Corporate Trading Participant) FEDERICO C.. Leviste Street. 817-8454. 811-4706. (Corporate Trading Participant) JOSEPH R. 634-5035. INC. 891-9849 Fax: 526-3477 PREMIUM SECURITIES. Makati City Office: 848-7373 to 74.com. 634-6697 & 69 Fax: 811-3073 firstname.lastname@example.org R & L INVESTMENTS. MARTIN (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: G/F. CU (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Unit 1602 Tytana Plaza Plaza Lorenzo Ruiz. Legaspi Village. Paseo de Roxas.ph PCIB SECURITIES. (Corporate Trading Participant) WILLIAM O. S & L Building De la Rosa cor.
ROXAS & COMPANY. 242-1770 Exchange: 634-6525 to 29 Fax: 242-1666 R.com www. 217 (Corporate Trading Participant) RAUL M. (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Room 300. Office: 725-3905.com SARANGANI SECURITIES. 844-7235. LIMLINGAN (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 8/F. RCBC Plaza 6819 Ayala Avenue. S. INC. East Tower – PSE Centre Exchange Road. Makati City Office: 812-5905 Exchange: 891-9701 to 03 Fax: 813-1682 securities. Paseo de Roxas. MARITA A. (Corporate Trading Participant) ARTHUR W. Manila Office: 242-1595 to 96. (Corporate Trading Participant) RAMON T. Binondo. 903 National Life Insurance Bldg. Ortigas Center Pasig City Office: Trunk line 636-6302 Direct lines 634-6651. 115 (Corporate Trading Participant) REMY TIGULO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 18/F. West Greenhills. NUBLA SECURITIES. 634-6878 Fax: 635-2466 solar_sec_inc@yahoo. 891-9714 to 16. 236 RALPH NUBLA JR. Paseo de Roxas. Makati City Office: 891-9480 to 84 Exchange: 891-9480 to 84 Fax: 891-9483 235 SB EQUITIES. 634-6668 Fax: 638-3549 SOLAR SECURITIES. 840-4504. Inc. Paseo de Roxas. 817-5834 Exchange: 891-9176 to 79 Fax: 817-5815 sarangani95@yahoo. Paseo de Roxas. CNC Investment Bldg.com RTG & COMPANY. 242 (Corporate Trading Participant) FRANCISCO V. Makati City Office: 817-5806. Ortigas Center Pasig City Office: 638-3549 to 50 Exchange: 634-6664. LEOPANDO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 7/F Yuchengco Tower. 891-9686 to 87 Fax: 813-3349 SBEquities@securitybank. 844-2245 Exchange: 891-9660 to 66 Fax: 844-2245 rslim@i-manila. Tower One & Exchange Plaza Ayala Avenue cor.com REGINA CAPITAL DEVELOPMENT CORP. LORAYES (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6/F. (Corporate Trading Participant) JOHNNY S. INC. ANTONINO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Unit 2 D1 Vernida I Condominium.R. YU (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 1509 Galvani Street. INC. YAP (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 30/F.ph SECURITIES SPECIALISTS. Makati City Office: 848-5065 to 69 Exchange: 891-9708 to 09. OCAMPO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 12/F.com. Legaspi Village. M.com STANDARD SECURITIES CORPORATION DOMINGO HERRERA (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 34 Jefferson Street. 891-9439 Fax: 891-9447 sjroxas@ymail. INC. 891-9764 to 65 Fax: 721-5887 STRATEGIC EQUITIES CORPORATION (Corporate Trading Participant) ROBERTO Z.ph 238 S. GARCIA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6/F. 634-6869. 231 Juan Luna Street. 634-6653 Exchange: 636-6302. ROXAS (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6/F.rcbcsec. (Corporate Trading Participant) ALEJANDRO T. INC. INC. INC. Makati City Office: 848-5482 to 84 Exchange: 891-9413. LIM & COMPANY. CANCIO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Rm. Ayala Avenue.. INC. Security Bank Centre 6776 Ayala Avenue. 891-9415 to 17 Fax: 848-5482 to 84 rcdc@reginacapital. Tower One & Exchange Plaza Ayala Avenue cor. (Corporate Trading Participant) SIMPLICIO J. 120 Amorsolo Street. Tower One & Exchange Plaza Ayala Avenue cor.net 129 112 Annual Report 2009 The Philippine Stock Exchange.com 240 SINCERE SECURITIES CORPORATION (Corporate Trading Participant) JOHN KENNETH L. San Juan.com. Makati City Office: Trunk line 889-6931 to 35 Exchange: 845-2641 Fax: 889-7642 sales@rcbcsec. Makati City Office: 843-4313. 721-5887 Exchange: 891-9760 to 61. Tower One & Exchange Plaza Ayala Avenue cor. Makati City Office: President 891-1092 Manager 891-1116 Dealing 891-1243/57/58/78 Accounting 813-3441 Settlement 891-1031 or 37 Dealing 891-1021 Exchange: 891-9677. Makati City Office: 848-5159 Exchange: 891-9620 to 21 Fax: 848-5164 email@example.com@gmail. INC. J. 286 113 RCBC SECURITIES. East Tower – PSE Centre Exchange Road.com 247 192 239 . Mla.
634-5148.com – Accounting UNICAPITAL SECURITIES.com 253 254 UBS SECURITIES PHILIPPINES INC. GO (Nominee Trading Participant) Nationality: SWISS Trading Floor: AYALA Contact Information: 19/F. 633-9411 Fax: 635-4145 tower_sec@yahoo. INC. ARGUELLES (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 4/F. (Corporate Trading Participant) EUGENE ONG (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Room 601-S State Centre Building 333 Juan Luna Street.com UCPB SECURITIES. Benavidez Streets. Majalco Building Trasierra cor.com – Compliance hbbongon@ucpb.Achacon-Espallardo@ubs. LKG Tower 6801 Ayala Avenue. 633-1310. Makati City Office: 884-2081 to 83 Exchange: 635-5531 to 35 Fax: 884-2088 TSC136@yahoo. 9972 Accounting loc. 242-1031 Exchange: 634-5725 to 27. Tower One & Exchange Plaza Ayala Avenue cor. Tower One & Exchange Plaza Ayala Avenue cor. 638-3847. Tower One & Exchange Plaza Ayala Avenue cor. UCPB Building Makati Avenue. INC. 215 Juan Luna Street Binondo.SUMMIT SECURITIES. Paseo de Roxas. Makati Avenue. Makati City Office: Trunk Line 784-8888 Sales 784-8864 Operations 784-8813 Compliance 784-8807 Exchange: 891-8588. (Corporate Trading Participant) RAYMOND PETER L. 635-4144. 634-6726 Exchange: 634-5146. 9793 Securities Settlement loc. 242-3031. Makati City Office: 848-5044 to 47 Exchange: 891-9361 to 64 Fax: 848-5047 TRITON SECURITIES CORPORATION (Corporate Trading Participant) EDWIN L. INC. (Corporate Trading Participant) EDUARDO C. Binondo. INC. Ortigas Center Pasig City Office: 635-4448 to 49. UNLAY (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 18/F. INC. East Tower – PSE Centre Exchange Road. Paseo de Roxas. Makati City Office: 848-6311 to 18 Exchange: 848-6311 to 18 Fax: 848-6272 1stres@philwebinc. ARROYO JR. CHAN (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 10/F. Makati City Office: 891-9405 to 07 Exchange: 891-9401. 891-8589 Fax: General 784-8899 Equities 848-2382 Logistics 784-8810 Robby.com TRANS-ASIA SECURITIES. 638-3850. (Corporate Trading Participant) HARRY G. Tower One & Exchange Plaza Ayala Avenue cor. LUY (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 26/F.com Tet. (Corporate Trading Participant) GREGORIO T.Go@ubs. 2010 Nationality: FILIPINO Trading Floor: AYALA Contact Information: 5/F. Makati City Office: Dealing/Sales 812-2589 Operations/Dealing/Sales 892-0991 Exchange: 891-9622. VIVIAN YUCHENGCO (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Status: ACTIVE Contact Information: 8/F. LIU (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 21/F. TANSENGCO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: Room 2308 World Trade Exchange Bldg. 252 136 Annual Report 2009 251 . Paseo de Roxas. 634-5752 to 54 Fax: 242-3031 TRI-STATE SECURITIES. (Corporate Trading Participant) FRANCISCO O. (Corporate Trading Participant) TAN CHEK TECK (Nominee Trading Participant) Nationality: SINGAPOREAN Trading Floor: AYALA Contact Information: Unit 404 Locsin Building Ayala cor. INC.com 246 249 TOWER SECURITIES. 9970 & 9973 Exchange: 891-9735 to 37 Fax: 811-9792 jtdimero@ucpb. INC.com UOB-KAY HIAN SECURITIES (PHILIPPINES). 345 (Corporate Trading Participant) LEONARDO R. INC. 9545 Compliance Officer loc. Inc. INC. 333 (Corporate Trading Participant) ROBRINA L. 259 (Corporate Trading Participant) No Nominee Trading Participant as of March 31. East Tower – PSE Centre Exchange Road. (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 10/F. Makati City Office: 887-7972 Exchange: 891-9526 to 27 Fax: 887-7973 milasanjose@uobkayhian. Manila Office: 242-2823.com 260 257 113 The Philippine Stock Exchange. Legaspi Village. Paseo de Roxas. Ortigas Center Pasig City Office: 631-1032 to 37 Exchange: 631-1032 to 37 Fax: 631-1033 SUPREME STOCKBROKER. Makati City Office: 811-9000 Office of the President loc. 891-9403 Fax: 891-9405 TANSENGCO & COMPANY. Manila Office: 241-7155 Exchange: 634-6675 & 85. 634-8230 Fax: 241-7155 THE FIRST RESOURCES MANAGEMENT & SECURITIES CORPORATION MA. 891-9624 Fax: 818-2127 mail@unicapsec.
Paseo de Roxas. Makati City Office: 813-3496. Tower One & Exchange Plaza Ayala Avenue cor.UPCC SECURITIES CORPORATION (Corporate Trading Participant) WILLIAM C. INC. INC. VALUE QUEST SECURITIES CORPORATION (Corporate Trading Participant) GLENN PAUL R. Ayala Avenue. INC.com 190 YU & COMPANY. 634-6286. UY (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 12/F Tower One & Exchange Plaza Ayala Avenue cor. YAO (Natural Person Trading Participant) Nationality: AMERICAN Trading Floor: TEKTITE Contact Information: 5H Vernida I Condominium 120 Amorsolo Street. 135 (Corporate Trading Participant) SENEN L. 892-5936. Inc. Exchange Road.ph VENTURE SECURITIES. Ortigas Center.com 273 YAO & ZIALCITA. 637-3048 to 50 Exchange: 634-6222. Ayala Triangle. CARMELITA C. Ortigas Center Pasig City Office: 634-6611 & 18. 894-0553 to 55 Exchange: 634-6284.com. 891-8519 Fax: 892-0215 upcc_mla@i-manila. Ortigas Center Pasig City Office: 634-5038 to 42. 269 (Corporate Trading Participant) HOSANNA T.com. Tower One & Exchange Plaza. East Tower – PSE Centre Exchange Road. MUÑOZ (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 6/F.net 275 114 Annual Report 2009 The Philippine Stock Exchange. 887-8447 Local nos. 263 EUSEBIO TANCO (Natural Person Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: 7th Floor. INC. Ayala Avenue. 278 (Corporate Trading Participant) JOHNNY YU (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 16/F. Paseo de Roxas. INC. Makati City Office: 856-3923 Exchange: 891-9710 to 13 Fax: 856-3922 Vssb_sec2005@yahoo. Tower One & Exchange Plaza. GARCIA (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 1007B West Tower. 848-6246 Exchange: 891-9380 to 83 Fax: 848-6229 firstname.lastname@example.org -Operations WONG SECURITIES CORPORATION (Corporate Trading Participant) EDEN WONG (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Status: ACTIVE Contact Information: 960 Ideal Street. 636-6686 Fax: 687-0584 valuequestsecurities@gmail. Legaspi Village. INC. 891-8514. Makati City Office: 856-5801 to 03 Exchange: Fax: 856-3922 vseconline WEALTH SECURITIES.com -Research/Marketing wgei_operation@tri-isys. 7011/7012/7016 Exchange: 891-9420 to 22 Telefax: 848-6503 VICSAL SECURITIES & STOCK 266 BROKERAGE. 634-7577 Exchange: 634-6248 to 50 Fax: 634-5918 yunc@sfi. Pasig City Office: 636-6684. . AYSON (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: TEKTITE Contact Information: 21/F. Makati City Office: 848-6505. 818-6739 email@example.com -President wgeirsc@tri-isys. INC. Makati City Office & Exchange: 891-8512. MATOTO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Unit 1009-1011. Makati City Office: 848-6231. 270 (Corporate Trading Participant) RAFAEL O. 634-6946 Fax: 813-3496. East Tower – PSE Centre Exchange Road.COM. Ayala Triangle. PSE Centre.com 100 VSEC. Mandaluyong City Office: 727-6317 Exchange: 634-5735 to 36 Telefax: 718-0887 wongsecuritiesonline@yahoo. First Building 6764 Ayala Avenue. Phil.com WESTLINK GLOBAL EQUITIES. 634-6225 to 29 Fax: 634-5043 info@wealthsecuritiesinc. (Corporate Trading Participant) FRANK SY GAISANO (Nominee Trading Participant) Nationality: FILIPINO Trading Floor: AYALA Contact Information: Unit 1009-1011.
com. Makati City Quasha Ancheta Peña & Nolasco . Tower 1.tanqmedia. Ortigas Center.: (632) 891-9004 Website: www. points of view. Pasig City 1605 Philippines Tel. ACCRALAW Tower Second Avenue corner 30th street Crescent Park West Bonifacio Global City. Ortigas Center. 0399 Taguig Philippine Stock Exchange Plaza Don Pablo Building. and assumptions on events that might directly and indirectly pose risks and uncertainties to its objectives and operations as an Exchange.P. No. Cityland Condominium 10 6815 Ayala Avenue. at the PSE Centre. First Building 6764 Ayala Avenue.114 Amorsolo Street 1229 Makati City External Auditor SyCip Gorres Velayo & Co..pse. Arce Law Office Unit 612.. Legaspi Village. 8:00 a. Makati City Tan Venturanza Valdez 2704 East Tower. The PSE assumes no obligation to update any forward-looking information in this Annual Report. design agency: TanQ | www. please contact: Public and Investor Relations Section Tel. Montepino Building 138 Amorsolo St. No. Corporate Offices Principal Office: Philippine Stock Exchange Centre Exchange Road.Corporate Information Annual Meeting The annual meeting of shareholders will be held on Saturday.ph D. copied or made available to others without a written permission from The Philippine Stock Exchange. Ortigas Centre. Pasig City.com.: (632) 688-7600 Fax No.: (632) 688-7600 E-mail : pirs@pse. No information expressed herein should be reproduced. Phil.com Zamora Poblador Vasquez & Bretaña Law Offices photography: Erik Liongoren + TanQ Ayala Triangle. Makati City 5th Floor. Philippine Stock Exchange Centre Exchange Road. Exchange Road. Makati City 1226 Philippines Tel. Pasig City Stock Transfer Agent Rizal Commercial Banking Corp. Inc.: (632) 634-5113 External Counsels Angara Abello Concepcion Regala & Cruz Law Offices 22nd floor. No. All rights reserved 2010. intentions. 6760 Ayala Avenue 1226 Makati City Philippines Rodrigo Berenguer & Guno 4th Floor. 1 May 2010. Ayala Avenue.ph Disclaimer: This Annual Report may contain forward-looking statements which reflect the PSE management’s plans. 6/F. Gil Puyat Ave.: (632) 819-4100 Fax No. Makati City For inquiries.m. 211 Grepalife Building Sen. Stock Transfer Department G/F West Wing.
and last part of Corporate Information data (PIRS..BACK COVER: You may opt to put PSE logo. tel no. PSE website. and email) .