What’s

Beyond
the
Numbers

2012
Annual
Report
PSE 2012
ANNUAL REPORT

Beyond outlook. Beyond records.

The stock market affects
everyone—from big multinational companies to the regular Financial Highlights
The Philippine Stock Exchange, Inc. and Subsidiaries
Contents Juans. In its most successful year to date, the Philippine Stock
Change
Exchange claimed a number of record highs, including being cited as one
(in thousand Php) 2012 2011 Amount %
of the world's best performing stock markets by the World Federation of Exchanges. Now, the country's
RESULTS OF OPERATIONS:
high-performing stock market is proud to contribute to the nation's growth and share its success with
OPERATING REVENUES 1,143,787 900,764 243,023 26.98
the hardworking Filipino. With these accomplishments, the PSE draws closer to its vision–a
premier exchange with world-class standards for trading Listing fees, maintenance & processing fees 562,040 429,289 132,751 30.92

securities and raising capital that serves as a strong engine for a Trading fees 198,695 202,856 (4,161) (2.05)

robust economy. Service fees 316,377 254,034 62,343 24.54

3 Foreword
Regulatory fees 45,260

4 Chairman’s Message Others 21,415 14,585 6,830 46.83

6
8
President’s Message TOTAL EXPENSES 505,134 440,593 64,541 14.65

Stock Market Performance Cost of services 176,954 167,795 9,159 5.46

17 Operational Highlights
General and administrative expenses 328,180 272,798 55,383 20.30

30
OTHER INCOME 163,768 99,251 64,517 65.00

Financial Highlights Income before Income Tax 802,421 559,422 242,999 43.44

34 Listed Companies and Listed issues as of Yearend 2012

Net income after Income Tax 624,166 406,192 217,974 53.66

YEAR-END FINANCIAL CONDITION:

44 Gallery of Officers
TOTAL ASSETS 2,525,126 2,285,611 239,515 10.48

50 Securities Clearing Corporation of the Philippines Cash and cash equivalents 1,051,355 1,041,644 9,711 0.93

52 Capital Markets Integrity Corporation Financial assets at fair value through profit or loss 274,585 207,882 66,703 32.09

54 Information Required by the Securities Regulation Code

Short-term available-for-sale investments - 42,343 (42,343) (100.00)

Long-term available-for-sale investments 327,847 167,407 160,440 95.84

56 Report of the Audit Committee
Property and equipment 498,382 520,109 (21,727) (4.18)

57 Statement of the Management's Responsibility for Financial Statements TOTAL LIABLITIES 250,427 235,538 14,889 6.32

58 Financial Statements Current liabilities 240,902 228,325 12,577 5.51

108 Active Trading Participants Directory

Retirement liabilities 9,525 7,212 2,313 32.06

EQUITY 2,274,699 2,050,073 224,626 10.96

Table 1

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4 | PSE 2012 ANNUAL REPORT

Beyond numbers.
As the local stock market continued its breathtaking ascent en route to another
record-breaking run, the market’s performance in 2012 will most likely be
remembered several years from now, not just by the gaudy numbers written
and reported about it but rather, as a turning point in the history of Philippine
capital markets. Historic changes were seen in the domestic financial markets
and on a broader scale, the national economy, as the country looked to finally
take off and fulfill decades of unmet expectations.

These key changes locally, as it turned out, proved to be meaningful in driving

the market forward even as ongoing uncertainties overseas
continued to limit global economic recovery. Strong
local macroeconomic fundamentals provided a sturdy
platform for the Philippines to rise above the external
challenges, igniting serious consideration of regaining
its “tiger economy” status it once proudly held not
too long ago, a stark contrast from the “sick man
of Asia” title it carried for the better part of a
decade.

The record highs of the stock market may have

helped capture the attention and imagination of people
here and abroad. But beyond this, the stock market has
emerged as a potent engine for supporting and sustaining the
Palengke ng Quiapo by Emar G. Lacorte • Acrylic on Canvas
Finalist, Sining PSE: 2012 National Art Competition
"The market has always been a microcosm of what is happening in Philippine society.
country’s progress.
By sunrise, vendors must have displayed their goods as consumers arrive on time.
In the market, perseverance, honesty, and entrepreneurship are seen and practiced."
6 | PSE 2012
ANNUAL REPORT
Dear Shareholders,
Behind the backdrop of a growing economy
and enhanced confidence of the market in
the country’s good governance initiatives, the
stock market broke new ground with record
milestones and accomplishments. The impressive
performance of the market gave the country more
prominence in the global arena as a sound and
Message attractive investment destination. But even as the
market served as a barometer of economic activity,
from the
2012 also highlighted the role of the Exchange as a
Chairman
driver for the expansion of the economy.
The past year will definitely go down our annals as
one of the most successful years of the Philippine
stock market and the Philippine Stock Exchange,
Inc. (PSE). The PSE index (PSEi) record highs, all
38 of them in one year, have captured the attention
of many Filipinos and the international community
alike. The significant increase in the number of
accounts and the increase in foreign inflows support
our view that even casual observers of the market
have now become active participants in stock
market trading.
The ability to raise capital in the Exchange remains
one of the direct mechanisms by which the stock
market helps our economy grow. It directly
provides the opportunity for listed companies to
expand their businesses and make more jobs
available. So when we manage not only to break but
actually double the previous record level for capital
raising activities in the Exchange, we believe that we
have also helped in doubling the business activities
of our listed companies and doubled our impact to
economic expansion.
The good business and economic environment,
supported by the reforms we have undertaken in the
past year, have helped produce a very successful
year for your Exchange. All these have taken place
serendipitously in the year when we celebrated and
looked back at our achievements in the past 20 years
as a unified Philippine Stock Exchange.
All eyes on us
The PSEi continued to outperform other markets,
closing the year as one of the top three best
performing benchmark indices in the world as
reported by the World Federation of Exchanges
(WFE). Our growth levels in terms of market
capitalization and trading value turnover have also
been ranked third and fourth-best among the 50
members of the WFE.
Capital-raising activities were at a record high at
P219.07 billion in 2012. We have seen
for the first time company offerings going
over and beyond the one-billion U.S. dollar
level, affirming the capacity of our market
to absorb capital in amounts comparable
with fund raising levels in more developed
markets abroad.
Foreign investors were also net buyers
in the amount of P109.98 billion, almost
twice the amount recorded the previous
year. Daily trading values reached another
record level at P7.26 billion, 27.1 percent
higher than the level in 2011.
International banks and analysts have thus
begun mentioning the Philippine market
in the same breadth that the BRIC (Brazil,
Russia, India and China) countries were
recognized a decade ago. Together with
other Asean economies like Indonesia,
we are now being dubbed as the next
economic tigers.
International rating agencies have once
again taken steps to upgrade our sovereign
credit rating closer to investment grade
level. In 2012, all the three major ratings
agencies—Standard and Poor’s, Fitch and
Moody’s—have placed us just a notch
below investment grade with Fitch moving
ahead in putting us at investment grade
status in March 2013. We believe these
are all well deserved.
Structural reforms that enhance
confidence in the market
While the market performance greatly
benefitted from the strong growth and
fundamentals of the economy, your
Board also moved to institute reforms and
implement programs which helped sustain
the expansion of the stock market.
One of the key structural changes
introduced in 2012 was to extend trading
hours into the afternoon. After several
attempts in the past to graduate from
a half-trading day schedule, your Board
extended trading hours in 2012 until 3:30
in the afternoon. With extended trading,
our market has adopted global best
practice and has opened up opportunities
for more foreign investments.
Your Board also strongly supported
developing an online trading platform as a
follow-through to its acquisition of a state-
of-the-art trading system from the New
York Stock Exchange in 2010. This will
allow brokers, who used to be constrained
by technology and system costs, to adopt
online trading and to offer this service to
their investors. With this development,
the Exchange envisions the retail investor
population base to continue its upward
trajectory.
Digital media and technological innovations
have whetted the need and desire of
today’s breed of investors for more
information. In 2012, the PSE completed
the migration to a new website with
enhanced design and user-friendly features
that aim to better serve investor demand
for timely stock market information. The
PSE is also now present in Facebook and
Twitter to actively communicate relevant
market information to existing and
prospective investors.
The PSE also established a recognition
program for companies and trading
participants who have subscribed to
higher corporate governance standards
through the first ever PSE Bell Awards.
Through the Bell Awards, the process of
creating a cluster of listed firms that will be
ready for a potential listing in a corporate
governance segment has started.
And as a landmark move in line with our
good governance effort, the Capital
Markets Integrity Corporation has finally
become fully operational after the
Securities and Exchange Commission
handed them the license to operate. We
believe that with the spin-off of the
regulatory functions over trading
participants given to another independent
company, we have reinforced our call for
transparency and independence while
allowing us to focus on further deepening
our market base and product offerings.
Growth as a product of a legacy of
unification
The PSE has come a very long way
since both the Manila and Makati Stock
Exchanges agreed to unify on December
23, 1992. With the reforms and
initiatives we have been undertaking,
investors have rewarded the stock
market with greater confidence and
record-breaking levels.
The legacy of unification goes beyond
PSE’s 20 years. Coinciding with this
anniversary, your Board also approved the
construction of a unified state-of-the-art
headquarters for the PSE in Bonifacio
Global City. This marks another union
of the two trading floors in Ortigas and
Makati. As a first step, the PSE entered
into a preliminary agreement with Ayala
Land, Inc. for the planned relocation of
the PSE offices to its new headquarters in
Bonifacio Global City.
message from the chairman | 5
We continue to adapt and innovate amid
the changing domestic and global
investment landscape. While our initiatives
have been directed to expand liquidity and
broaden the depth of the market, we
recognize that there are more challenges
ahead as we compete against other markets
in the region and in the world. We have
come a long way together, but there is still
the long road ahead.
We need to introduce more products in
the Exchange and collectively intensify
market education to raise awareness about
the stock market as a credible and preferred
avenue of building wealth. We need to
heed the call of the times and reach out
to younger investors who are hungry for
information and can afford to have a larger
appetite for risk. We need registered
corporations to utilize the stock market as
a first-choice venue for raising funds that
will support their growth plans. We need
the government to continue supporting the
capital markets as we share the same
vision of institutionalizing a culture of
transparency and integrity in the way we
do business.
All these, I am proud to announce, are
the key elements by which we have
formulated the strategic plan of the
exchange for the next three years. We
invite everyone to continue to join hands
with us as we embark on new targets for
the market. Let us join forces in building a
better PSE that is more accessible to the
public and in building a better economy
ready to take on new challenges and
opportunities in an energetic landscape.
Finally, I would like to take this opportunity
to thank all our partners and stakeholders
who have all contributed to the milestones
of the market. I would like to thank especially
the members of the Board of Directors for
their hard work and perseverance to push
the market to the levels we have achieved
in 2012. The Most Admired Board of
Directors Award conferred by the prestigious
Asia CEO Forum in 2012 serves as an
inspiration for all of us to keep finding ways
to innovate and enhance the confidence of
investors in our market.
Thank you very much.
JOSE T. PARDO
Chairman
8 | PSE 2012
ANNUAL REPORT
My Fellow Shareholders,
For three years now, the Philippine stock market has emerged as
one of the best performing markets in the world. We have set once
again, new all-time highs across the key metrics by which investors
and analysts measure our market. A solid economic landscape,
combined with listed companies’ profit growth outperforming the
expansion of the economy, has been among the biggest drivers of
this performance.
Message
from the As we continue to post these milestones for our market, a
President developing story behind these numbers is how we, as an
Exchange, are also setting our mark in contributing to the
growth of our economy. We believe that the wheels that
have been set to motion by the Philippine Stock Exchange, Inc.
(PSE) in 2012 are helping the market sustain its gains and lay
the groundwork for further growth. In the process, we have also
set milestones for the PSE as a company and further improved
shareholder value.
Answering the demands of an economy taking off
The Philippines is indeed in a sweet spot. Low interest and
inflation rates, coupled with strong consumer spending and a
steady fiscal environment, have invited more investors to
pursue the Philippines as a viable destination. This has been
well reflected in the net foreign inflows and capital raising
figures that have more than doubled in 2012 from the previous
year.
As we welcomed seven new companies at the Exchange, we
also saw for the first time follow-on offerings exceeding well
beyond the one-billion U.S. dollar level. With the index setting
new highs combined with more listing activity, the size of the total
market capitalization has, for the first time, breached the
P10-trillion mark during the second quarter of 2012.
The extension of trading hours has been very timely given the rise
in trading activity brought about by this newfound interest in our
economy. Investors from Europe and the Middle East now have
the chance to trade in our market as we remain open just when
they are about to open their offices.
But even as net foreign inflows breached the P100 billion-mark
for the first time, the local bid has also grown at a much faster
pace cornering 55 percent of trading activity and showing their
confidence in the increased economic activity they are seeing
first hand.
The reimposition of the minimum public ownership rule has also
provided more shares to be traded in the market. In addition,
this move has not only added liquidity in the market, but has also
reinforced our good governance drive as companies have become
more democratized in the process.
Good governance driving growth
As the Aquino administration pushes for governance reforms
to curb corruption and cut bureaucracy in business processes,
the Exchange is cognizant that we need to be among the primary
drivers of good governance.
Following our efforts to clean up the roster of listed companies
two years ago with the delisting of delinquent companies and
increasing the capitalization requirements of broker-dealers, we
launched in 2012 our campaign to recognize companies adhering to
messages from the president | 7
higher governance standards with the
conduct of the first PSE Bell Awards for
Corporate Governance. Another landmark
program is the creation of an independent
regulatory company called the Capital
Markets Integrity Corporation which
demonstrates our commitment to
undertake extensive reforms to enhance
investor confidence in our market.
Your Exchange has also stepped up the
improvement of services by enhancing
operational efficiencies, sustaining
market education, and upgrading market
technologies to better serve investors. The
PSE has also enhanced the organizational
structure to support the demands of a
growing market by appointing a new
Chief Operating Officer and an Investor
Relations Officer.
More product offerings
The Exchange has undertaken significant
milestones in our efforts to expand our product
offerings and services to the market. In 2012,
we saw the setting of the regulatory framework
for exchange traded funds drawing closer to
completion with the Securities and Exchange
Commission (SEC) issuing their own rules and
the PSE submitting its own rules for approval.
We are also expanding access to investors
through facilities that will be offered to P900.76 million the previous year. This Setting higher targets Let me also take this opportunity to point
trading participants via the PSETradex was largely driven by new listings at the out that as a result of all the initiatives we
which is an online trading platform that can be stock market which resulted to a jump The stock market’s performance in 2012 have undertaken and the company’s strong
offered by trading participants to their clients. in listing-related income by 30.9 percent rewrote the record books in a big way, as financial results, the PSE’s stock price has
In relation to this, the PSE also finalized its to P562.04 million in 2012 from P429.29 seen in the new highs we have experienced soared by 82.5 percent to P416.00 per share
rules to govern direct market access trading million in 2011. across almost all market indicators. Investor in 2012. This serves as proof that investors
and is working closely with the SEC to ensure confidence in Philippines, Inc. is also at do recognize the impact of the activities that
that the parameters in the rules are akin to the As total value turnover for 2012 registered an all-time high, and this can only serve to the Exchange has done and the company’s
needs of users. a new record high reaching P1.77 trillion strengthen our market as we tackle new revenue-generating potential as we continue
or 24.5 percent higher than the P1.42 trillion challenges and opportunities together in 2013. to expand the business. These factors have
The Board has also approved revisions to registered the previous year, trading- made it possible for our shareholders to
the listing rules for approval by the SEC to related revenues in turn, increased to As we close the chapter on the LEVEL-UP become “richer”, and at the same time still
simplify the criteria for companies wanting P557.33 million from P456.89 million in agenda we embarked on in the last five remain excited about the growth prospects
to list in the Exchange while also enhancing 2011. These include revenues from service years, we now look ahead at refocusing on of the company.
the profile of small, medium, and emerging fees generated by the Securities Clearing our goal to become a world-class exchange
companies that want to access the stock Corporation of the Philippines, a wholly- by transforming the organization into a We thank our Board of Directors for their
market for listing. owned subsidiary of PSE, which expanded full-service Exchange capable of offering continued support and guidance, the
by 24.5 percent to P316.38 million from more than just an equities platform. We management and staff for their commitment
A stronger organization to propel us P254.03 million. are excited about the medium-term horizon to bring us to new heights, all the
to greater heights as we exert all our efforts to launch more stakeholders that have been contributing to
Meanwhile, behind the rational and products and services. promote our market and to you, the
Our financial performance in 2012 efficient use of resources, we managed to shareholders, for your support and push to
demonstrates that the foundations we have cap the rise in total expenses to just 14.6 When we look at our accomplishments as set even greater milestones for the Exchange.
built together to expand the market are percent. Total expenses stood at P505.13 an Exchange in the past year, we see that
bearing fruit for the company. This, in turn, million at the end of 2012 from P440.59 we have indeed become more formidable Thank you very much.
has allowed us to undertake more programs million in 2011. behind good financial results and renewed
to further drive trading and listing activity. investor confidence in the market. We
As a result of these factors, net income believe we have enough tools to pave the
In 2012, we are happy to report that the posted a record high for 2012 growing by way for a bolder and stronger stock exchange HANS B. SICAT
operating revenues of the company grew a remarkable 53.7 percent to P624.17 that is ready to take on new challenges and President and Chief Executive Officer
by 27.0 percent to P1.14 billion in 2012 from million from P406.19 million in 2011. launch new revenue streams.
10 | PSE 2012
ANNUAL REPORT
10 | PSE 2012
JANUARY FEBRUARY MARCH APRIL MAY JUNE JULY AUGUST SEPTEMBER OCTOBER NOVEMBER DECEMBER
ANNUAL REPORT
PSE extends Dow Jones BSP cuts rates ADB maintains Moody's upgrades Fitch Ratings S&P raises PH credit Local GDP PH jumps ADB and World Bank EU and IMF US Congress
trading hours Industrial by 25 bps for 4.8% GDP PH credit rating affirms BB+ rating to BB+ with slows to 5.9% 10 places to raise PH GDP forecast reach deal to passes measure
until 3:30 PM Average closes the second time forecast for PH outlook to positive credit rating and a stable outlook in the second 65th in World Economic to 5.5% and 5.0%, reduce Greek debt to avert "fiscal cliff"
above 13,000 stable outlook quarter Forum's Global respectively
BSP cuts rates for the first time World Bank Local GDP grows for PH World Bank raises Competitiveness Report Local GDP World Bank raises GDP
by 25 basis since 2008 maintains by 6.4% in the GDP forecast for Philippine government IMF maintains surges by forecast for PH to 6.0%
points (bps) 4.2% GDP first quarter US Fed extends PH to 4.6% releases IRR 4.8% GDP 7.1% in the
Greece receives US$172 forecast for PH Operation of EO 79 forecast for PH third quarter S&P raises PH credit
Economy posts billion Greece threatens Twist program BSP cuts rates by 25 bps rating outlook to positive
weak growth in new bailout eurozone exit for the third time EU establishes US$648
in 2011 at 3.7% from EU and IMF Spain and billion European PSEi posts 38th record
Stock Impeachment of Cyprus seek Government Stability Mechanism high at 5,832.83,
Chief Justice bank bailouts releases new mining becoming 2nd best
Market Renato Corona from EU and IMF policy (EO 79) Moody's raises PH credit performer in Asia
Performance rating to Ba1 with a
stable outlook

BSP cuts rates by 25 bps

for the fourth time

PSEi
in 2012
Figure 1

What’s
beyond
the numbers?
A rising economy, a changing landscape
The overall economic environment remained favorable
throughout the year as it consistently outperformed
expectations from various financial institutions such as
the Asian Development Bank and the World Bank, which
revised upwards their gross domestic product (GDP)
forecasts for the Philippines several times throughout the
year. For the full year 2012, the local economy expanded
by 6.6 percent from 3.9 percent last year, boosted by the
sustained strong performances across the agriculture,
industrial and services sectors. On the demand side,
increased external trade, government spending as well as
higher investments in construction contributed to the GDP
expansion.
The country’s fiscal balance was also kept at bay albeit
geared more towards lending support to boost the
economy. For the full year, the budget gap accounted for
only 87 percent of the full-year
programmed ceiling of P279.11 billion,
brought about by the gradual disbursement
of government funds and lower-than-
programmed debt service payments.
The full year fiscal balance widened to
P242.83 billion from the P197.75 billion
deficit incurred in 2011.
The inflation environment remained
benign throughout the year. Headline
inflation rate for 2012 averaged at
3.2 percent, the lowest level in five
years and 140 basis points (bps)
lower than the 2011 average of 4.6
percent. This favorable backdrop
allowed the Bangko Sentral ng Pilipinas
It's Philippines, Inc. as a vibrant
and viable investment destination
(BSP) enough elbow room to fuel
economic growth, cutting key interest
rates four times during the year for
a cumulative reduction of 100 bps.
The last monetary policy adjustment
on October 25 brought the overnight
borrowing and lending rates to record
lows of 3.5 percent and 5.5 percent,
respectively.
Trades at the foreign exchange market
likewise continued to be robust. Tagged
as the second best performing currency
against the greenback in Asia, the
Philippine peso gained by 6.8 percent in
2012, trailing behind the Korean won’s
7.8 percent expansion. The Philippine
peso ended the year at P41.05 per US
dollar from P43.84 per US dollar in 2011.
The local currency hit a 57-month high of
P40.85 per dollar on December 5, propelled
by the influx of foreign investments in
the country.
Foreign investments flowed into
the Philippines with foreign direct
investments (FDI) in 2012 expanding
by 9.8 percent to US$2.03 billion from
US$1.85 billion in 2011. The significant
increase in FDI was driven by the
impressive 141 percent growth in
equity capital. Business activity also
mirrored foreign investor confidence
as evidenced by the rise in earnings of
listed companies. In the nine months
ending September, the combined net
income of listed domestic companies
rose by 18.4 percent to P388.20 billion
from P327.75 billion in the same period
in 2011.
The country’s significant macroeconomic
gains and sound fiscal management
convinced global credit rating agencies
to upgrade the Philippines’ investment
rating and outlook, with the latest
improvement coming on October 29
when Moody’s Investors Service (Moody’s)
upgraded its Philippine sovereign debt
ratings. Both Fitch Ratings and Moody’s
also maintained a stable outlook
while Standard and Poor’s raised the
country’s outlook to positive. With these
developments, all three global rating
agencies now have the Philippines at
one notch below the much sought-after
investment grade status.
12 | PSE 2012 ANNUAL REPORT
Market stability tested by
challenges, risks
While all these developments painted a
resilient Philippine economy, persistent
headwinds in the Eurozone and the United
States threatened to impede the stock
market’s upward course. Difficulties
encountered by Greece to meet its bailout
obligations fuelled fears of its exit from the
Eurozone. Greece’s continued access to the
€240 billion bailout fund was dependent
on conditions such as the success of key
economic reforms. Further aggravating the
Eurozone troubles were the requests of
Spain and Cyprus for bank bailouts. These
adverse developments prompted the Euro to
decline to a two-year low of €1.21 against the
greenback on July 23.
In response to the sustained financial
difficulties of European Union (EU) nations,
the European Stability Mechanism (ESM)
was inaugurated on October 8 to provide
financial stability support. The ESM, which
has a lending capacity of €500 billion, was
empowered to issue bonds or other debt
instruments and raise capital to provide
financial assistance to EU members.
Further aiding debt-stricken Greece was
the agreement on a program by EU and the
International Monetary Fund on November
27 to reduce Greek debt by €44.6 billion.
This would effectively reduce Greece’s debt-
to-GDP ratio to 124% of GDP by 2020 and
below 110% of GDP by 2022. The deal also
included a 100 bps rate cut on interest rates
charged to Greece by other EU states.
On the other side, the still-weak US economy
prompted the US Federal Reserve (Fed) to
make its third attempt at quantitative
easing (QE3) in September. QE3 entailed
the purchase of US$40 billion worth of
mortgage-backed securities monthly,
while short-term interest rates would be
kept at exceptionally low levels until mid-
2015. Adding pressure to the struggling US
economy was its vulnerability to the looming
“fiscal cliff” or more than US$600 billion
worth of tax increases and spending cuts
which will be implemented at the start of
2013. The world’s largest economy was
able to avert the "fiscal cliff" at the last
minute when the US Congress passed a
legislation neutralizing middle class tax
increases and spending cuts, just hours
before financial markets opened in 2013.
The mixed external developments
throughout the year somehow managed to
mitigate the volatility in the commodities
market. At the New York Mercantile
Exchange (NYMEX), crude oil
finished the year at US$91.82 per
PSEi vs Select Asian Indices
barrel, down by 7.1 percent from the
2011 close of US$98.83. The price
of gold traded at the US Commodity
Exchange meanwhile, settled at
US$1,675.80 per ounce, 7.0 percent
more than the US$1,565.80 per
ounce closing price in 2011.
Spotlight shifts to the stock
market
The exciting Philippine story
affirmed investor confidence
in the country, which propelled
the stock market to exceptional
heights and brought it closer to
the precipice of becoming a truly
viable investment destination.
The Philippine stock market
opened the year on a momentous
note with the full implementation
of extended trading hours.
Augmenting the usual morning
schedule with an afternoon session,
the market easily broke previous
highs in trading activity and supported
the rise of the benchmark Philippine
Stock Exchange, Inc. (PSE) index
to record closing levels. The main
index re-wrote new highs at an
unprecedented 38 times in 2012,
reaching its peak level for the year
on December 26 at 5,832.83 points.
By yearend, the PSE index (PSEi)
rallied 1,440.77 points to close at
5,812.73 points, 33.0 percent higher
than its end-2011 level, making it the
second-best performing index in
Asia and fifth in the world.
Five of the six PSE sector indices
registered positive growths in 2012
led by the Financials index, which
surged by 57.5 percent. This was
followed by the Property index,
which rose by 55.6 percent. The
Holding Firms, Industrial and Services
counters likewise expanded by
47.0 percent, 25.5 percent and 6.7
percent, respectively. Conversely,
the Mining & Oil index fell by 17.4
percent. The broader All Shares index,
meanwhile, increased by 21.5 percent
to end at 3,698.98 points from
3,045.04 points a year earlier.
More companies took advantage of
the opportunities presented by the Figure 2
14 | PSE 2012 ANNUAL REPORT

Sectoral Indices Performance (in %)

PSEi Composition
stock market’s remarkable performance. Fund-raising As of March 12, 2012 As of September 10, 2012
activities in the market reached another record high at
1 Aboitiz Equity Ventures, Inc. 1 Aboitiz Equity Ventures, Inc.
P219.07 billion, more than double the previous year’s
record of P107.50 billion. Seven new companies joined 2 Aboitiz Power Corporation 2 Aboitiz Power Corporation
PSE’s roster of listed firms during the year. Five of them
3 Alliance Global Group, Inc. 3 Alliance Global Group, Inc.
conducted initial public offerings (IPO) as GT Capital
Holdings, Inc., East West Banking Corporation, Calata 4 Ayala Corporation 4 Ayala Corporation
Corporation, Coal Asia Holdings Incorporated, and
5 Ayala Land, Inc. 5 Ayala Land, Inc.
D&L Industries, Inc. raised a combined P23.99 billion
from the market. On the other hand, Rockwell Land 6 BDO Unibank, Inc. 6 BDO Unibank, Inc. Figure 3
Corporation and Yehey! Corporation listed their shares
7 Bank of the Philippine Islands 7 Bank of the Philippine Islands
by way of introduction. The number of new company
listings in the Exchange was the highest since 2008. 8 Belle Corporation 8 Belle Corporation

Meanwhile, capital proceeds from follow-on offerings,

which amounted to P92.64 billion, were bolstered by the
9 Cebu Air, Inc.
10 DMCI Holdings, Inc.
9 DMCI Holdings, Inc.
10 Energy Development Corporation
Select PSE Market Indicators
landmark San Miguel Corporation preferred shares 2012 vs 2011
11 Energy Development Corporation 11 First Gen Corporation
offering worth P80.03 billion, the highest in local stock Market Indicator 2008 2009 2010 2011 2012
% change
market history. Aggregate stock rights offerings valued at 12 First Gen Corporation 12 Globe Telecom, Inc.
P52.07 billion were driven by the massive P43.51 billion PSE index (PSEi), yearend close 1,872.85 3,052.68 4,201.14 4,371.96 5,812.73 32.95
13 Globe Telecom, Inc. 13 International Container Terminal
offer of BDO Unibank, Inc., while various private placement Services, Inc.
transactions led by Ayala Land, Inc., Bloomberry Resorts Total value traded (in billion Php) 763.90 994.15 1,207.38 1,422.59 1,771.71 24.54
Corporation, and SM Investments Corporation totaled 14 International Container Terminal 14 JG Summit Holdings, Inc. Average daily value traded (in billion Php) 3.11 4.11 4.95 5.71 7.26 27.09
P50.38 billion. Services, Inc.
15 JG Summit Holdings, Inc. 15 Jollibee Foods Corporation
Trading activity in the stock market continued to grow at a Foreign buying (in billion Php) 361.00 329.28 477.38 565.86 850.16 50.24
rapid pace with the value of trading transactions pushing 16 Jollibee Foods Corporation 16 Manila Electric Company Foreign selling (in billion Php) 383.17 314.37 441.76 509.35 740.18 45.32
to its highest level at P1.77 trillion in 2012, eclipsing 17 Manila Electric Company 17 Manila Water Company, Inc. Net foreign buying/(selling) (in billion Php) (22.16) 14.92 35.62 56.52 109.98 94.59
the previous year’s P1.42 trillion level by 24.5 percent. Total foreign (in billion Php) 744.17 643.65 919.13 1,075.21 1,590.35 47.91
Meanwhile, average daily turnover rose to P7.26 billion, a 18 Manila Water Company, Inc. 18 Megaworld Corporation
27.1 percent increase from P5.71 billion in 2011. Share of foreign trading to total trading 48.71% 32.37% 38.06% 37.79% 44.88% 7.09
19 Megaworld Corporation 19 Metro Pacific Investments
Corporation
Foreign investors displayed confidence in the Philippine Capital raised (in billion Php) 31.55 38.77 84.94 107.50 219.07 103.79
20 Metro Pacific Investments 20 Metropolitan Bank & Trust
stock market as they represented 44.9 percent of total Initial public offerings (in billion Php) 1.95 0.02 12.78 9.04 23.99 165.44
Corporation Company
trades, up by 7.1 percentage points from their 37.8
Additional listings (in billion Php) 29.60 38.75 72.16 98.46 195.08 98.13
percent share in 2011. Total foreign transactions netted a 21 Metropolitan Bank & Trust 21 Petron Corporation
buying of P109.98 billion, the highest recorded level in the Company
Exchange’s history. This was an increase of 94.6 percent Market capitalization, yearend (in billion Php) 4,072.16 6,032.22 8,866.11 8,696.96 10,930.09 25.68
22 Philex Mining Corporation 22 Philex Mining Corporation
from the P56.52 billion net foreign buying figure in 2011. Domestic firms (in billion Php) 2,476.99 3,995.07 6,892.21 7,238.99 9,416.31 30.08
Total foreign buying amounted to P850.16 billion, while total 23 Philippine Long Distance 23 Philippine Long Distance
Telephone Company Telephone Company
Foreign firms (in billion Php) 1,595.17 2,037.15 1,973.90 1,457.97 1,513.78 3.83
foreign selling came in at P740.18 billion.
No. of listed companies, yearend 246 248 253 253 254 0.40
24 Robinsons Land Corporation 24 Robinsons Land Corporation
Total market capitalization likewise soared to a record Domestic 244 246 251 251 252 0.40
level rising by 25.7 percent to P10.93 trillion from its year 25 San Miguel Corporation 25 San Miguel Corporation Foreign 2 2 2 2 2 0.00
ago level of P8.70 trillion. Domestic market capitalization, 26 Semirara Mining Corporation 26 Semirara Mining Corporation No. of listed issues, yearend 316 318 328 326 294 -9.82
which excludes foreign firms Sun Life Financial Inc. Domestic 314 316 326 324 292 -9.88
and Manulife Financial Corporation, expanded by 30.1 27 SM Development Corporation 27 SM Development Corporation
percent to a new record of P9.42 trillion from P7.24 Foreign 2 2 2 2 2 0.00
28 SM Investments Corporation 28 SM Investments Corporation
trillion in 2011. The Industrial sector accounted for the Total market
highest share of domestic market capitalization at 28.6 29 SM Prime Holdings, Inc. 29 SM Prime Holdings, Inc.
Dividend yield 5.49 3.52 2.64 2.91 2.33 -19.83
percent or P2.70 trillion. 30 Universal Robina Corporation 30 Universal Robina Corporation Price-earnings ratio 8.95 23.26 21.32 16.54 19.09 15.38
Table 2 Table 3
16 | PSE 2012 ANNUAL REPORT

2012 Top 25
2012 Top 25 2012 Top 25 Price Gainers
Companies 2012 Top 25
Companies (Common Issues)

by Market Companies by
by Trading 2012 2011

Value Traded
%
Rank Issue Code Close Close Change

Frequency Capitalization
(in Php) (in Php)
Alcorn Gold Resources
1 APM 0.145 0.015 866.67
(Regular Market) Corporation
(Regular Market) (Common Shares) Manchester International
2 Holdings Unlimited MIH 12.12 1.38 778.26
Rank Company Name Code Value Traded (in Php) Corporation “A”
Rank Company Name Code Number of Trades Rank Company Name Code Market Capitalization
(in Php) Philippine Long Distance Manchester International
1 TEL 105,239,500,830 3 Holdings Unlimited MIHB 12.00 1.37 775.91
1 Megaworld Corporation MEG 164,937 Telephone Company
1 Manulife Financial Corporation “B”
2 Alliance Global Group, Inc. AGI 150,705 MFC 919,818,581,165.00
Corporation 2 Metropolitan Bank & MBT 77,080,080,575 Maybank ATR KimEng
Trust Company 4 MAKE 24.60 4.20 485.71
3 Metropolitan Bank & Trust 2 Sun Life Financial Inc. SLF 593,959,113,835.00 Financial Corporation
MBT 149,605
Company 3 SM Investments Corporation SM 76,659,018,985 Victorias Milling
3 SM Investments Corporation SM 549,463,614,840.00 5 VMC 1.39 0.29 379.31
4 SM Prime Holdings, Inc. SMPH 142,711 Company, Inc.
Philippine Long Distance 4 Alliance Global Group, Inc. AGI 60,414,277,272
4 TEL 546,621,110,750.00 Cirtek Holdings
5 Energy Development Corporation EDC 140,974 Telephone Company 6 CHIPS 25.80 5.69 353.07
5 Ayala Corporation AC 56,637,149,313 Philippines Corporation
6 Ayala Land, Inc. ALI 138,048 5 San Miguel Brewery, Inc. SMB 451,527,033,528.00
6 BDO Unibank, Inc. BDO 53,474,108,037 Philex Petroleum
7 Bloomberry Resorts Corporation BLOOM 135,593 7 PXP 29.95 7.02 326.64
6 Ayala Land, Inc. ALI 363,732,575,455.20 Corporation
7 Ayala Land, Inc. ALI 51,672,087,997
8 BDO Unibank, Inc. BDO 129,031 7 Bank of the Philippine Islands BPI 337,853,836,435.00 8 RFM Corporation RFM 5.00 1.19 320.17
8 Megaworld Corporation MEG 46,123,801,250
Lepanto Consolidated Mining Ayala Corporation AC 306,901,070,047.00 Philippine Seven
9 LC 121,716 8 9 SEVN 92.00 22.52 308.49
Company 9 DMCI Holdings, Inc. DMC 38,541,293,603 Corporation
9 Manila Electric Company MER 293,722,068,198.40
MJC Investments
NiHAO Mineral Resources 10 SM Prime Holdings, Inc. SMPH 38,153,678,468 10 MJIC 5.74 1.52 277.63
10 NI 112,601 10 Aboitiz Equity Ventures, Inc. AEV 292,383,112,921.95 Corporation
International, Inc. 11 Universal Robina Corporation URC 36,606,866,168
11 SM Prime Holdings, Inc. SMPH 286,665,683,040.00 Imperial Resources, Inc.
11 IMPB 33.00 10.00 230.00
Metro Pacific Investments 12 Energy Development Corporation EDC 34,097,034,765 “B”
11 MPI 107,796 12 Aboitiz Power Corporation AP 271,900,429,143.65
Corporation 12
Pepsi-Cola Products
PIP 6.52 2.06 216.50
13 JG Summit Holdings, Inc. JGS 268,489,070,451.50 13 Bank of the Philippine Islands BPI 31,610,746,567 Philippines, Inc.
12 Ayala Corporation AC 104,611
14 BDO Unibank, Inc. BDO 260,687,723,878.40 14 Security Bank Corporation SECB 30,392,301,847 13 LT Group, Inc. LTG 13.38 4.40 204.09
13 Bank of the Philippine Islands BPI 101,070
15 San Miguel Corporation SMC 250,039,664,071.20 15 Aboitiz Power Corporation AP 30,353,076,950 14 EEI Corporation EEI 10.10 3.44 193.60
14 Calata Corporation CAL 97,875
Metropolitan Bank & Metro Pacific Investments Philippine Estates
15 Philex Mining Corporation PX 95,914 16 MBT 215,361,373,734.00 16 MPI 28,741,232,910 15 PHES 0.65 0.233 178.97
Trust Company Corporation Corporation
16 Dizon Copper Silver Mines, Inc. DIZ 93,816 Ever-Gotesco Resources &
17 Universal Robina Corporation URC 182,918,937,082.05 17 Manila Electric Company MER 27,904,030,676 16 EVER 0.40 0.15 166.67
Philippine Long Distance Holdings, Inc.
17 TEL 88,680 18 Alliance Global Group, Inc. AGI 172,122,316,928.04 International Container
Telephone Company 18 ICT 23,366,227,865 17 Vivant Corporation VVT 9.01 3.81 136.48
19 Globe Telecom, Inc. GLO 144,581,515,260.00 Terminal Services, Inc.
18 Puregold Price Club, Inc. PGOLD 83,165 Jolliville Holdings
18 JOH 5.70 2.42 135.54
International Container 19 Bloomberry Resorts BLOOM 23,253,890,735 Corporation
19 Alcorn Gold Resources Corporation APM 81,141 20 ICT 143,735,591,640.00 Corporation
Terminal Services, Inc. PNOC Exploration
20 DMCI Holdings, Inc. DMC 80,606 19 PEC 55.00 24.00 129.17
DMCI Holdings, Inc. DMC 143,263,901,300.00 20 GT Capital Holdings, Inc. GTCAP 22,280,535,366 Corporation “A”
21
21 Manila Electric Company MER 77,953 20 Paxys, Inc. PAX 2.96 1.36 117.65
22 Bloomberry Resorts 21 Puregold Price Club, Inc. PGOLD 21,771,709,649
Oriental Peninsula Resources BLOOM 139,785,367,339.20
22 ORE 77,936 Corporation 21 Vitarich Corporation VITA 0.94 0.44 113.64
Group, Inc. 22 Philex Mining Corporation PX 21,313,842,020
Energy Development 22 Lafarge Republic, Inc. LRI 11.70 5.50 112.73
23 EDC 126,562,500,000.00 Lepanto Consolidated
23 Universal Robina Corporation URC 75,224 Corporation 23 LC 20,067,369,070 23 iPeople, Inc. IPO 9.30 4.40 111.36
Mining Company
24 Aboitiz Power Corporation AP 73,900 24 LT Group, Inc. LTG 120,170,983,334.82 24 House of Investments, Inc. HI 6.29 3.08 104.22
24 Aboitiz Equity Ventures, Inc. AEV 19,812,142,198
25 First Philippine Holdings Metro Pacific Rizal Commercial
FPH 73,570 25 MPI 109,530,180,696.40 25 RCB 60.00 30.10 99.34
Corporation Investments Corporation 25 San Miguel Corporation SMC 19,675,666,008 Banking Corporation
Table 4 Table 5 Table 6 Table 7
18 | PSE 2012 ANNUAL REPORT 19 | PSE 2012
ANNUAL REPORT

Total Market Capitalization

and Trading Value by Sector
(in billion Php)

Market Capitalization Value Traded

2010 2011 2012 % change % share 2010 2011 2012 % change % share
Operational
Financials Sector 2,807.52 2,328.38 2,892.28 24.2 26.5 159.90 170.15 282.98 66.3 16.0 Highlights
Banks
Other Financial
783.95

2,024.05
803.47

1,525.56
1,300.41

1,592.32
61.9

4.4
11.9

14.6
156.00

3.90
162.80

7.35
273.72

9.26
68.1

26.0
15.4

0.5
It's providing capital
for growth
Institutions
Industrial Sector 2,510.47 2,458.48 2,695.09 9.6 24.7 375.98 374.09 419.11 12.0 23.7
Electricity, Energy,
930.45 908.84 1,059.12 16.5 9.7 276.28 226.51 196.72 -13.2 11.1
Power & Water
Amidst the compelling valuations and the continued growth of International roadshows
Food, Beverage & businesses in a thriving economy, seven companies listed
1,292.61 1,317.05 1,334.57 1.3 12.2 89.97 137.57 171.63 24.8 9.7
Tobacco
at the Exchange in 2012, five of which emanated from the To further the exposure of our listed
Construction, Exchange’s efforts through continuous company engagements companies at the international arena,
Infrastructure & Allied 169.07 134.28 221.46 64.9 2.0 7.79 7.20 24.30 237.4 1.4
and discussions. The year started with a bang—the successful the Exchange successfully conducted
Services
initial public offering of GT Capital Holdings, Inc., a major, highly two international roadshows in 2012.
Chemicals 12.32 12.52 19.47 55.5 0.2 0.42 1.07 3.27 204.3 0.2 diversified Philippine conglomerate with interests in banking, real In February, the PSE and the Bank of
Electrical Components estate development, power generation, the automotive industry, America Merrill Lynch held a three-day
- - 18.75 - 0.2 - - 2.06 - 0.1
& Equipment* and life insurance. The other companies which raised capital international roadshow in Hong Kong
Other Industrials* - - 41.71 - 0.4 - - 21.14 - 1.2 through the Exchange were: Eastwest Banking Corporation, dubbed as the Philippine Corporate Day
one of the country’s fastest growing banks; Calata Corporation, which featured one-on-one investor
Holding Firms Sector 1,277.81 1,364.04 2,110.73 54.7 19.3 231.10 288.73 400.48 38.7 22.6
one of the biggest distributor of agro chemical products, feeds, meetings between 32 participating
Property Sector 752.50 815.94 1,262.37 54.7 11.5 171.80 150.23 244.18 62.5 13.8 fertilizers and veterinary medicines; Coal Asia Holdings, Inc., listed companies from the Philippines
Services Sector 1,116.04 1,222.50 1,430.35 17.0 13.1 192.72 235.89 287.07 21.7 16.2 an investment holding company engaged in the exploration and 41 international investment funds.
Media 60.86 47.93 60.28 25.7 0.6 8.26 1.94 17.59 805.0 1.0 and mining of coal and other energy-related businesses; and A one-day roadshows dubbed “Eye on
D&L Industries, Inc., the country’s leading food ingredients the Philippines” was also conducted in
Telecommunications 691.07 767.50 695.36 -9.4 6.4 108.71 132.10 136.61 3.4 7.7
manufacturer. Rockwell Land Corporation, one of the premier Singapore in March in partnership with
Information real estate development companies in the Philippines, and Bloomberg. It featured listed companies
37.72 35.87 30.51 -14.9 0.3 8.46 16.05 14.85 -7.5 0.8
Technology Yehey! Corporation, a company engaged in digital marketing from the Philippines and was attended
Transportation
258.65 245.30 235.16 -4.1 2.2 62.88 56.14 39.85 -29.0 2.2
solutions and services, are the two companies which listed by by leading fund managers, hedge funds,
Services way of introduction this year. investment advisors, investment banks
Hotel & Leisure 10.81 18.37 5.14 -72.0 0.0 1.27 15.39 7.33 -52.4 0.4 and other institutional investors based in
Education 14.09 20.42 26.23 28.5 0.2 0.16 0.39 0.62 57.9 0.0 It was also a historic year for listings as we saw two Singapore.
companies conducting at least a US$1 billion offering. The
Casinos & Gaming* - - 185.45 - 1.7 - - 22.70 - 1.3 first was conducted by Banco de Oro through its stock rights
Retail* - - 129.40 - 1.2 - - 25.16 - 1.4 offering in July 2012 amounting to P43.5 million followed by
Other Services* - - 62.95 - 0.6 - - 22.36 - 1.3 the biggest offering in history by San Miguel Corporation
when it listed its preferred shares series offering amounting to
Mining & Oil Sector 401.23 506.90 538.68 6.3 4.9 75.88 203.49 137.88 -32.2 7.8
P80 billion.
Mining 347.39 417.77 371.16 -11.2 3.4 75.08 199.02 118.94 -40.2 6.7
Figure 5
Oil 53.83 89.13 167.52 88.0 1.5 0.81 4.47 18.94 323.9 1.1
SME 0.55 0.71 0.59 -17.8 0.0 0.001 0.01 0.01 130.7 0.0
What's beyond the numbers? A growing company.
Total Market 8,866.11 8,696.96 10,930.09 25.7 100.0 1,207.38 1,422.59 1,771.71 24.5 100.0
* Per CN-No. 2012-0026, these subsectors were created effective July 2. What does going public mean? EastWest Bank CEO Antonio Moncupa shares
Table 8 that it’s about future opportunities and possible acquisitions. But beyond the

2012 Market Activity (All Issues)

technical, it means they’ve proved the reputation they’ve built as a bank.

“Banking is a business of trust,” Moncupa says.

And that trust has come a long way. The efforts of the past five years to reach
this one goal have been well worth it as going public also completes the final
requirement of EastWest to get their universal banking license.

“We are prepared to be under public scrutiny,” Moncupa says with confidence.

EastWest Bank was one of five companies that conducted an initial public
Figure 4 offering in 2012. It raised P2.6 billion from the IPO to fund among others its
expansion.
20 | PSE 2012 ANNUAL REPORT

New listings in 2012

(IPO-Initial Public Offering, LBWI-Listing by Way of Introduction)
Offer No. Of Offer Board
Company Code Type of Offered Listing Price Shares Proceeds Upon
Offering Shares Date (in Php) Offered (in Php) Listing

GT Capital Holdings, Inc. GTCAP IPO Primary 20-Apr-12 455.00 33,000,000 15,015,000,000.00 First Board
GTCAP IPO Secondary 20-Apr-12 455.00 8,217,300 3,738,871,500.00
GTCAP IPO Secondary 1
20-Apr-12 455.00 6,182,590 2,813,078,450.00

East West Banking Corporation EW IPO Primary 07-May-12 18.50 141,056,800 2,609,550,800.00 First Board

EW IPO Secondary 07-May-12 18.50 104,259,400 1,928,798,900.00

Rockwell Land Corporation
First Gen Corporation Series
“G” Preferred Shares
Calata Corporation
San Miguel Corporation -
Preferred Series “2A”
San Miguel Corporation -
Preferred Series “2B”
San Miguel Corporation -
Preferred Series “2C”
Yehey! Corporation
Coal Asia Holdings
Incorporated
STI Education Systems
Holdings, Inc.
D&L Industries, Inc.
*
Listing Price
1
Over-allotment
Table 9
Summary of 2012
Capital Raising Activities
EW IPO Secondary 1
07-May-12 18.50 36,797,400 680,751,900.00
Screenshots of PSE online presence
ROCK LBWI - 11-May-12 1.46* - - First Board
FGENG Follow-on Primary 18-May-12 100.00 70,000,000 7,000,000,000.00
Listing programs and seminars All the marketing efforts of the PSE trading skills. There are also materials
FGENG Follow-on Primary1 18-May-12 100.00 30,000,000 3,000,000,000.00 reached out to 150,000 individuals in that furnish market practitioners with
Second The Exchange conducted listing seminars 2012 by capitalizing on the popularity information on securities licensure
CAL IPO Primary 23-May-12 7.50 36,012,000 270,090,000.00
Board in partnership with government and of the internet, social sites, free media examinations, stock market courses and
industry groups to introduce to listed exposure, as well as strategic alliances. trainings.
SMC2A Follow-on Primary 28-Sep-12 75.00 721,012,400 54,075,930,000.00
companies the advantages of going This number doubles the total number
public. At least four major seminars were of individuals that participated in our The total number of visitors from January
SMC2B Follow-on Primary 28-Sep-12 75.00 90,428,200 6,782,115,000.00 conducted in separate partnership with marketing activities the previous year. to December 2012 stood at 151,984, and
the Cebu Chamber of Commerce and total page views exceeded 620,000. This
SMC2C Follow-on Primary 28-Sep-12 75.00 255,559,400 19,166,955,000.00 Industry, Inc., Chamber of Mines of the PSE Integrated Viral Education site was viewed in 43 different countries
Philippines, The Department of Trade Strategy or PSE InVESt! including top professional Overseas Filipino
Second
YEHEY LBWI - 18-Oct-12 1.00* - -
Board
and Industry Board of Investments and destinations including the US, Canada,
the Philippine Retailers Association. PSE InVESt! is the nucleus of the Saudi Arabia, Australia, United Arab
These programs were targeted at bourse’s market education programs. Emirates, Singapore, and Hong Kong.
COAL IPO Primary 23-Oct-12 1.00 800,000,000 800,000,000.00 First Board
different business segments which This emanated from the concept of viral
were identified to have high potential marketing, which is the internet term Social Media Campaigns
STI Follow-on Primary 07-Nov-12 0.90 2,627,000,000 2,364,300,000.00
and needs for listing. These forums for “word-of-mouth-advertising.” PSE
STI Follow-on Primary1 07-Nov-12 0.90 273,000,000 245,700,000.00 gathered close to 1,300 participants and InVESt! harnesses the efficiency and Digital media and technology have
STI Follow-on Secondary 07-Nov-12 0.90 105,209,527 94,688,574.30 prospective listed companies. mass education prowess of the internet, increased the need and desire of today’s
social sites, and other online campaigns. breed of investors for more information. To
DNL IPO Primary 12-Dec-12 4.30 1,071,429,000 4,607,144,700.00 First Board
It complements the high-impact support its market education and corporate
DNL IPO Primary 1
12-Dec-12 4.30 160,714,000 691,070,200.00 It's having more conventional off-line learning sessions governance campaigns, the PSE has taken
such as investing seminars, stock market advantage of social media platforms—
TOTAL INITIAL AND FOLLOW-ON PUBLIC OFFERING PROCEEDS (Primary Shares)
TOTAL INITIAL AND FOLLOW-ON PUBLIC OFFERING PROCEEDS (Secondary Shares)
116,627,855,700.00
9,256,189,324.30
investors grow courses, and traditional marketing and Facebook and Twitter to communicate
with the market promotional campaigns. It targets both news,events, latest developments,
the retail and local institutional investors programs, disclosure headlines and market
as well as the academe, which is made information at the start, middle and end of
As we achieved great milestones in up of students and educators. trading sessions. The PSE’s Facebook and
2012, we know that our progress can Twitter pages were launched in January
only be more fulfilling if more and more PSE Academy Website 2010.
Filipinos enjoy the benefits of investing
in the stock market. The PSE Academy is the company’s In 2012, PSE's Facebook page had 9,174
market education website designed to likes which significantly increased from
The performance of the market in 2012 provide a comprehensive, interactive, 3,608 in 2011. PSE’s Facebook page also
has served as a compelling reason for and practical web-based investor had an average weekly organic and viral
more Filipinos to start investing in the education for market participants, would- reach of 10,738 page views, a growth of

219.07B
market as shown by the 48.3 percent
Php
be equity investors, and the public in 597 percent versus 1,539 the previous year.
increase in online investor accounts general.
representing more than 30,000 new The PSE also utilized social media as a
online accounts opened. Logging in at www.pseacademy.com.ph platform to promote the local stock market
gives individuals access to free and communicate reports disclosed by its
23.99B
Php Php
50.38B Php
52.07B Php
92.64B To maximize the opportunities presented downloadable reading materials and listed companies. In 2012, the PSE started
IPO Private Placements Stock Rights Offering Follow-On Offering by the market environment, the PSE video books ranging from basic to posting daily corporate disclosure headlines
continued its market education efforts to more advanced topics that allow users as well as market statistics, press releases,
support the interest that is generated by to enhance their knowledge on stock trading holidays and other announcements.
Figure 6 the increased trading activity. investing and eventually acquire valuable As a result, by the end of 2012, our Twitter
22 | PSE 2012 ANNUAL REPORT

followers have reached 7,700, or an almost four-fold increase Certified Securities Specialist Course:
from 2,000 followers at the end of 2011.
By the Numbers in 2012:
gra
PSE also had promotional partnerships with top investment

79runsof
3

Schools
bloggers in the Philippines like Pinoy Money Talk, Manila Finance,

dua
Stock Market Pilipinas, Traders’ Pizza, and Traders Info Exchange.
These blog sites have unique investors of up to 3 million

tes
individuals.

4
Improved Website

the course
Recognizing the internet as the doorway to new markets
and opportunities, the PSE finalized enhancements to a new

AIM to
website under www.pse.com.ph in 2011 and completed the

1
migration to the new website in 2012. The new website, with its
enhanced design and user-friendly features, serves the need of

nurture
investors for timely stock market information. The website has
navigation bars located at the left frame of each page. It provides

the capital
a snapshot of the website's structure and enables the user to
browse and access their desired information with lesser clicks.
It has a charting tool that can display all types of indicators that

markets
can be viewed simultaneously. The new website is powered
by advanced technologies that can easily integrate third party First batch of graduates of the PSE-LPU MBA with Specialization in Capital Markets Program
systems and new products. PSE also now has a dedicated
webpage on Investor Relations as a quick reference for
shareholders of the PSE.
The PSE also served as a major partner of the Bangko Market Investment Resource Center include Bangko Sentral ng Pilipinas,
PSE Cebu Marketing Office Sentral ng Pilipinas and the Institute for Development and 7th Capital Markets Investment on September 14. It serves as an Citibank N.A., First Metro Asset
Econometric Analysis for the conduct of its semi-annual Teaching Accreditation Program investment laboratory for students and Management, Inc., Philippine Deposit
The Exchange launched in September 2011 its first satellite economic briefings held last March 6, July 16 and November (CMITAP) the investing public and a staging Insurance Corporation, Chartered
office in Cebu City to serve as the staging ground for various 23. The economic and industry briefings gathered over 1,000 ground for various capital market Financial Analysts Society of the
capital market developmental activities directed at the Visayas participants. PSE and the Capital Markets Institute of developmental activities. It is the Philippines, Colayco Foundation, Inc., and
and Mindanao regions. In 2012, the Cebu Office held orientations the Philippines (CMIP) jointly conducted first ever learning and training hub in High-Heeled Traders.
and stock market seminars for a total of 4,225 individuals, almost Financial Literacy Roadshows the 7th Capital Markets Investment Visayas dedicated to capital market
10 percent of whom actually opened accounts with brokers. Teaching Accreditation Program investments. PSE Certified Securities
In 2012, the PSE conducted four major financial literacy roadshows, (CMITAP) from May 28 to June 1 at Specialist Course
Industry and Economic Briefings which were attended by more than 1,000 participants. These the Achiever’s Core Training Centre in Similar centers were established
roadshows were conducted in key cities nationwide including Dasmariñas, Cavite. earlier by PSE and CMIP in partnership A total of four runs of the PSE Certified
Industry and economic briefings were conducted to apprise Cebu, Davao, Cagayan de Oro, and Iloilo. with the host schools such as Lyceum Securities Specialist Course were
market practitioners, the investing community, and other This program was a weeklong of the Philippines University Laguna, conducted with academe partners
stakeholders about the PSE, stock market, and the economy. The roadshow seminars were attended by high net worth intensive training course focused San Beda College Mendiola, University Ateneo Graduate School of Business
Quarterly industry briefings were also accomplished in four individuals and businessmen who have interest in listing their on the instruction of capital market of Manila, and Southville International Center for Continuing Education,
different industries, such as the Renewable Energy, Islamic Finance, companies in the PSE. Trading participants with branch offices in investments covering subjects such as Schools and Colleges in Las Piñas. University of Santo Tomas Center for
Securities Lending in Asia and the Emerging Markets and Capital roadshow destinations also conducted marketing activities and capital markets, equities, bonds, statistics Professional Education and Development,
Markets Outlook. consultation sessions with prospective investors during the events. of investments, portfolio management, The PSE also worked closely to establish and University of the Philippines
fundamental, technical analysis, ethics Capital Markets Learning Centers around Development Center for Finance.
and good corporate governance, risk the Philippines. Together with the PSE
management, and securities regulation, Foundation, Inc. (PSE Foundation) PSE-Lyceum of the Philippines
What's beyond the numbers? A course for the future. among others. CMITAP offers full and CMIP, a Nationwide Book Drive University MBA with Specialization
scholarship to deserving finance was undertaken. Finance- and in Capital Markets Program
Despite already finishing college, something was still missing for Rachel educators inclusive of full board, lodging, investment-related books were
Espejo. Fortunately, her dream of working in the stock market came to materials and transportation for the collected from charitable institutions, The PSE-Lyceum of the Philippines
fruition, thanks to the PSE Certified Securities Specialist Course. duration of the program. industry associations and foundations University Masters of Business
and distributed to various schools Administration with Specialization in
It provided Espejo with the essential concepts and tools. She applied The graduation ceremony of the 24 nationwide. Capital Markets Program (PSE-LPU MBA
everything she learned and thus gained an advantage in all her job successful participants was held on Program) is the first and only post graduate
interviews. Today, Espejo is a professional but she has new dreams. June 1 at the PSE Ayala Trading Floor During the first national convention of program with specific focus on the field
She wishes to one day establish her own stock brokerage company. in Makati City. the CMIP, more than 150 teachers received of capital market in the country. Twenty-
And she’s on the right track. a book package consisting of stock investing one participants, mostly from the finance
Capital Markets Resource Learning primers, videobooks, reference books, and brokerage industries, graduated
“I guarantee that the course will be worth the time and money you will Centers and Book Drives and other learning materials which may be from the PSE-LPU MBA Program in
invest in it,” she says. used to set up an integrated capital markets commencement rites held on April 21 at
The PSE supported the University section in libraries of recipient schools. the Philippine International Convention
Rachel was one of 34 who graduated from the Ateneo run of the PSE of the Philippines Visayas College Center in Manila. A special culminating
Certified Securities Specialist Course. of Management and the CMIP in Aside from the PSE Foundation, book ceremony was also held on May 30 at the
launching the Iloilo City Capital and educational materials donors PSE Ayala Trading Floor in Makati City.
24 | PSE 2012 ANNUAL REPORT

PSE Academe Week 2012 PSE-FMIC-CEAP Stock X Challenge process of creation and redemption and an arrangement that allows investors to enter be delisted from the Exchange registry if it on its website the list of non-compliant
the requirement of market-makers orders into the Exchange’s trading system, remains non-compliant after the suspension companies. 
The PSE Academe Week 2012 was The 2nd PSE-FMIC-Catholic Educators to promote the liquidity of ETFs. The the PSEtrade for execution without manual period.
conducted from December 3 to 7. On Association of the Philippines (CEAP) proposed rules also provide for intervention of the trading participant. Reduction of non-compliant companies
its second year, it gathered more than Stock X Challenge concluded with a simple transparency and investor safeguards Enhancements to reporting requirements
1,850 participants nationwide, a jump of awarding ceremony on June 14 at the PSE and are adherent to the International The proposed DMA Rules seek to provide
Out of the 45 companies which were non-
31 percent compared to its first launch Ayala Brokers’ Lounge in Makati City. Organization of Securities Commissions the regulatory framework for the provision
To enhance the timely reporting of the compliant with the MPO requirement when
in 2011. The event also received formal principles for regulation of ETFs and best by trading participants of DMA services
public float data of listed companies, it took effect in 2010, only ten companies
endorsement from Department of The 3rd PSE-FMIC-CEAP Stock X practices in other jurisdictions. and lay down certain requirements that
the Exchange amended the MPO rule remained non-compliant as of December
Education Secretary Bro. Armin Luistro. Challenge was launched on October 15 trading participants and clients must
on September 28 by requiring all listed 31, while eight companies delisted
with more than 180 teams from various Shari’ah Compliant Securities Project comply with in order to address the
companies to establish procedures for voluntarily. These eight companies which
The PSE Academe Week 2012 activities colleges and universities nationwide. potential risks associated with DMA
monitoring their public float. The quarterly opted for voluntary delisting conducted
were as follows: PSE has embarked on a project which will trading. The PSE submitted the proposed
Public Ownership Report (POR) of tender offers to provide an exit mechanism
Champion: Team X2_NINJA of UP Diliman allow the trading of Shari’ah compliant DMA Rules to the SEC on October 15.
companies are now required to be posted for their minority shareholders prior to
• Conduct of the first ever PSE 2nd Place: Team X2_ALPS of UP Diliman products, to facilitate capital flow from
in the PSE website. In addition, if a delisting.
Academy Student Congress on 3rd Place: Team X2_UCLAMP of the Middle East, Malaysia and even non-
December 3 at the Adamson University of the Cordilleras Islamic countries to the Philippine stock It's the commitment company’s public ownership falls below
12 percent, it is now required to submit a The Exchange imposed a trading
University Amphitheater in Manila
BPI Clash of the Universities 2012
market. The project aims to tap the global
and local Islamic investors and give them
to integrity and good POR on a monthly basis until such time suspension on the shares of the remaining
non-compliant companies effective January
• A three-segment lecture series access to the local equity market without governance that its float level goes back up beyond 12
percent. To complement this rule change, 2, 2013.
conducted for different academic Another nationwide competition was compromising their religious beliefs.
conducted in partnership with BPI the Exchange started regularly posting
sectors during the week-long event The PSE continued to promote good
Investment Management and Trust The PSE solicited the support of the
group on July 31 and participated by 85 governance as a means to support the
• A stock market update and outlook National Commission on Muslim growth and development of our capital
seminar conducted on December 4 teams from 21 colleges and universities Filipinos to collaborate with the
nationwide. The ceremony was held at markets and to sustain investor confidence
at the PSE Tektite Trading Floor in Exchange in introducing Islamic Finance in the stock market and the brokerage
Ortigas Center the PSE Brokers’ Lounge with PSE and BPI in the Philippines, primarily for the
executives in attendance. industry.
capital markets. Accordingly, the PSE
• A two-part stock investing basics conducted a roundtable discussion on
Champion: Team BPI_bulls of Amended Rule on Minimum Public
seminar and learning workshops Islamic finance entitled “Assessing
San Beda College Ownership (MPO)
for high school students and Islamic Finance Opportunities in the
educators held on December 5 1st Place: Team BPI_X44 of Philippine Stock Market” on July 26, 2012 The SEC approved on December 19, 2011,
at the Alumni Hall of the biggest Ateneo de Davao University which paved the way for the formation the PSE Amended Rule on Minimum
secondary education institution— 2nd Prize: Team BPI_BETS of of a Shari’ah Technical Working Group for Public Ownership (Amended MPO Rule)
Rizal High School, in Pasig City University of the Immaculate Capital Markets. that gave listed companies a grace period
Conception – Davao
until December 31 to comply with the
• The 3rd Stock X Challenge, a Exchange’s 10 percent MPO requirement.
PSETradex – The PSE online trading
nationwide stock trading tournament The SEC declared the Amended MPO Rule
platform
in partnership with First Metro It's about new products effective starting on January 1, 2012.
Investment Corporation and the
Catholic Educators Association of the and services offered to The rapid growth of online trading in
This is in line with the Philippine Capital
Philippines the Philippines is reflective of the growing
investors awareness about stock market investing
Market Development Plan, which aims to
provide a fair and efficient facility for price
• Economics and Capital Markets Quiz among Filipinos. Based on a PSE study,
Exchange Traded Fund discovery and to ensure that sufficient
Bee for College and High School online investor accounts grew by a
liquidity exists. This is also aligned with the
Students remarkable 48.3 percent in 2012, the
On October 22, the SEC released the PSE’s goal to be at par with other exchanges
highest percentage growth since the PSE
Rules and Regulations on Exchange-Traded in the region and to address liquidity issues
The PSE Academe Week 2012 was initiated its survey in 2007.
Funds (ETFs). Under the SEC’s ETF rules, in the local capital markets.
co-organized by the Exchange with
student organizations Junior Philippine the shares of stock of ETFs are required Leveraging on this trend, the PSE has
to be listed on and traded at a registered Under these Amended MPO Rules,
Economics Society, Junior Confederation embarked on setting up PSETradex, the
Exchange. listed companies must comply with the
of Finance Associations-Philippines, PSE online trading platform, to allow brokers
MPO requirement by the end of 2012.
Junior Capital Markets Institute of the who used to be constrained by technology
An ETF is an open-end investment fund that Companies which remain non-compliant
Philippines, Junior Financial Executives and system costs, to now offer this service
is similar to a mutual fund. It is composed of after this deadline shall be suspended at
and Business Economics Society of to their investors. With the PSETradex,
underlying assets representative of the index the start of 2013. The suspension will only
Adamson University, Bedan Business trading participants can enlist with the PSE
it tracks. Unlike a mutual fund, an ETF is be lifted upon a company’s compliance
Spectrum and Bedan Volunteers of San to use the system which was developed by
traded on a stock exchange real-time during provided that such suspension will be
Beda College, and the apprentice group N2N Global Solutions Sdn. Bhd, one of the
trading hours similar to stocks.  imposed for a maximum period of six
PSE Blue Chip Club. leading online trading system providers in
months, or only until June 30, 2013. If
Southeast Asia.
The PSE rules on ETFs were released the company remains non-compliant, the
Stock Trading Tournaments
to the public for comments on January 9, company shall be automatically delisted
Three nationwide stock trading 2013. Direct Market Access Rules from the Exchange registry. Further, any
tournaments were conducted during company which becomes non-compliant
the year in partnership with First Metro Among the significant provisions of the The PSE Board approved the proposed on or after January 1, 2013 shall be
Investment Corporation (FMIC) and BPI proposed PSE Rules on ETFs include the Direct Market Access (DMA) Rules which suspended from trading for a maximum
Asset Management and Trust Group. shelf-listing of ETF shares to facilitate the was submitted to SEC for approval. DMA is period of six months. The company shall
26 | PSE 2012 ANNUAL REPORT
New Rules for Listing under the Main
Board and Small, Medium and Emerging
(SME) Companies Board
In line with the Exchange’s thrust to ensure
the suitability of companies applying for
listing and enhance investor safeguards, the
Exchange amended its listing board rules.
The amendments consist of two parts: (i) the
consolidation of the First and Second Boards
into a new listing board called the Main
Board with a new set of listing criteria; and
(ii) the reinvention of the SME Board, which
shall now be intended for small, medium and
emerging companies and shall have more
stringent listing requirements than those
previously required for small and medium
enterprises.
The consolidation of the listing boards is
aligned with international best practices on
dual-trading boards of bourses in the region.
It also provides a clearer classification of
listed stocks that will help investors evaluate
business prospects of companies belonging
to these listing boards.
Under the proposed rules, companies that
will list on what will be called the Main Board
must have an authorized capital stock of at
least P500 million, and at least three years
of operating history. These companies
should also have cumulative earnings before
income tax, depreciation and amortization
(EBITDA) of at least P50 million for the last
three years prior to listing. They must also
have positive stockholders’ equity for the
immediately preceding fiscal year.
Currently, companies that want to list via
the first and second boards should have an
authorized capital stock of P400 million and
P100 million, respectively. The first board
requires at least a three-year track record
of profitable operations, while the second
board requires at least a one-year operating
history prior to the listing application.
The proposed rules are also geared towards
transforming the current SME Board to
represent emerging companies. Such
companies should have a minimum
authorized capital stock of P100 million and
at least three years of operating history.
To accommodate more potentially
viable emerging companies to list, the
profitability test was adjusted under
these new rules. Companies should have
positive earnings for at least two of the last
three years and a positive stockholders’
equity for the immediately preceding fiscal
year. The requirement for cumulative
earnings (EBITDA) of at least P15 million
for the last three years is also prescribed.
At present, companies that will list on the
SME Board are required to have at least
P20 million in authorized capital stock. SME
companies are also subject to a one-year
operating history prior to their application
for listing.
The Exchange believes that the new
criteria in the SME Board will achieve the
objective of striking a balance between
the Exchange’s role as a venue for capital-
raising even for smaller-sized companies
and the need of investors to have access to
companies that have the track record to back
up their growth prospects.
The Exchange also formalized in the
proposed rules its policy of requiring all listed
companies to have an effective investor
relations program, which must include, among
others, a corporate website that contains, at a
minimum, information about the company’s
operations, financials, plans, senior management,
controlling stockholders and investor services.
This program must ensure that information
affecting the company are communicated
effectively to investors.
Business Continuity
Management Framework
A comprehensive Business Continuity
Management Policy was approved by the
Board of Directors as the framework for
strengthening the Exchange’s process
of identifying, assessing, monitoring and
responding to risks which may affect its
operations. This is intended to be part of a
broader enterprise-wide risk management
system that would strengthen the Exchange’s
internal corporate governance.
As an integral element of the overall business
continuity framework, the PSE also embarked
on safety awareness programs for the
employees, brokers, trading participants,
contractual staff, visitors and guests of the
Exchange, with the support of the Pasig
and Makati Bureau of Fire Department. An
emergency evacuation plan framework was
also enhanced.
The PSE 2012 Bell Awards For
Corporate Governance
Launched on December 7, 2011, the
PSE Bell Awards aims to promote good
governance practices by recognizing both
listed companies and trading participants
which excelled in their corporate governance
practices and rule compliance. The first PSE
Bell Awards for Corporate Governance
were awarded to five listed companies
and six Trading Participants during the
PSE’s 20th Anniversary Gala Dinner on
December 3. It's the legacy
List of winners of the
2012 Bell Awards
of unification
Large Trading Participants
CLSA Philippines, Inc.
towards a more
COL Financial Group, Inc.
Macquarie Securities (Philippines), Inc.
progressive market
Small Trading Participants
Armstrong Securities, Inc.
PCIB Securities, Inc.
Tri-State Securities, Inc.
Listed Companies
Ayala Land, Inc.
China Banking Corporation
Globe Telecom, Inc.
Manila Water Company, Inc.
SM Prime Holdings, Inc.
The Bell Awards is one of PSE’s important
initiatives to raise awareness and standards
of corporate governance and foster best
practices in our markets in order to sustain
the Philippines’ attractiveness as an
investment destination.
The distinguished Bell Awards panel of
judges was composed of the following
senior government officials and business
leaders selected for their independence,
integrity and commitment to corporate
governance:
1. Honorable Teresita Herbosa
SEC Chairperson and Chair of the
2012 Bell Awards Panel of Judges The PSE’s unification in 1992 marked a significant milestone in
the history of the country’s capital markets. It allowed the country’s
2. Ms. Judith Lopez stock exchange to create operational efficiencies in the capital
Chairperson and Senior Partner of Isla markets and make the stock market more competitive in an The PSE also used the arts to convey this tradition of progress
Lipana & Co./PricewaterhouseCoopers increasingly globalizing environment. of the Exchange even as it commemorates the role the Exchange
has played in national growth in the past two decades.
3. Secretary Cesar Villanueva The unification offered many benefits. Primarily, it lowered the
Head of the Governance Commission cost of raising equity capital in the Philippines by broadening The Exchange's anniversary celebrations marked its origins and
for GOCCs access to foreign investors and creating a single price for stocks major milestones which led to its establishment, starting with
listed on both exchanges. its incorporation in July 1992. The celebrations culminated in
4. Ambassador Stephen Lillie December and were highlighted by the PSE’s first Bell Awards
UK Ambassador to the Philippines It also consolidated listing rules, making the Philippine capital for Corporate Governance.
markets more efficient and paved the way for a modernized
5. Justice Estela Perlas-Bernabe trading system, a far cry from the days that bids and offers were
Associate Justice, Supreme Court called out and executed using chalks, green boards, and vocal
of the Philippines chords gone hoarse from all the shouting.
6. Mr. Jesse Ang This unification also set the stage for the professionalization of the
Resident Representative for the industry and opened the market to more foreign brokerages to
Philippines, International Finance transfer their systems and processes to the country.
Corporation
In 2012, the PSE celebrated the 20 years of the Exchange as the
7. Mr. Antonio Garcia, Jr. unified form of the Manila and the Makati Stock Exchanges. In
President and CEO of the Capital a fitting manner, the celebration highlighted the progress and
Markets Integrity Corporation (CMIC) successes that have been achieved since the unification.
28 | PSE 2012 ANNUAL REPORT 1992
The Philippine Stock Exchange, Inc.
was incorporated on July 14 by the
following incorporators: Robert

1927
Coyiuto, Jr., Victor Say Hipek,
Eduardo C. Lim, Juan B. Francisco
and Cesar E.A. Virata.
One of the first stock
On December 23, MSE and MkSE
exchanges in Asia was
issued a joint declaration on the
established in
unification of the country’s two
Binondo, Manila—
bourses under the Philippine Stock
the Manila Stock
Exchange, Inc.
Exchange.
1995
The Unified Trading System
was launched on
2000 2003 2010-2011
Republic Act No. 8799
November 13 using the The PSE’s new trading system
or the Securities
single order-book system On December 15, the PSE was launched on July 26, 2010
Regulation Code was
on a MakTrade software shares were listed by way of and in January 2012, branded as
signed into law on July
where all orders are posted introduction, opening at P100 PSEtrade, which was acquired
19 and took effect on
and matched in one per share. from NYSE Technologies.
August 8.
computer.

1963
The Makati Stock Exchange
was established, being the
1994
The SEC granted the PSE
its license to operate as
1998
On June 29, President Fidel V.
Ramos handed over the SEC
2001
On August 3, the PSE
demutualized,
2004
The SCCP became a
wholly-owned subsidiary of
2012
The PSE extended trading hours
up to 3:30 in the afternoon.
a securities exchange certificate that conferred the
second stock exchange in transforming from a PSE and a new clearing and
on March 4. SRO status to the PSE.
the Philippines. non-stock, member- settlement system was acquired. The CMIC received its provisional

PSE
governed entity into Self-Regulatory Organization status
a stock, shareholder- on February 2 and subsequently
based organization. began operations in March.

Timeline
The PSE reached 38 record highs,
the most number of times the
Exchange has recorded in a
Figure 7 year’s operation.
Figure 7
Sining PSE: National Art Competition

The PSE launched the first Sining PSE National Art Competition, fine arts in Bacolod prior to working in Riyadh, Saudi Arabia.
which adhered to the philosophy of investing in the creative Before joining Sining PSE, he has had the chance to present his
talents of budding Filipino masters. illustrated works to royalties in Saudi Arabia.

The PSE’s 20th anniversary was depicted in the competition’s
theme, “Nagkakaisang Pilipino Para sa Maunlad at Masigasig
na Kalakalan” (United Filipino People for Progressive and Active
Trade). Sining PSE engaged amateur artists 21 years old and
above to depict the theme using either painting or sculpture as
the media.
On top of the P100,000 cash prize, each first place winner received
a trophy created by multi-awarded sculptor Juan Sajid Imao.
Made of brass, the Sining PSE trophy featured a unique sculptural
palette to symbolize the contest’s painting and sculpture categories.
The trophy’s bold, fluid shape and lines formed a palette to
emphasize PSE’s strong support for young Filipino artists.

Former President Ramos leading the launch of the 20th Anniversary Celebration
Launch of 20th Anniversary in July
The PSE kicked off the celebrations
commemorating the Exchange’s 20th
anniversary last July 27. Former President
Fidel V. Ramos was the guest of honor
and keynote speaker given his vital role in
the unification of the PSE’s predecessor
bourses—the Manila and Makati stock
exchanges. Various CEOs of listed firms
and heads of government were one with
the PSE during its kick off anniversary bell
ringing ceremony.
20th Anniversary Thanksgiving Dinner
The anniversary celebration culminated
in a Thanksgiving Gala Dinner held at
the Makati Shangri-La on December
3. The event was attended by no less
than President Benigno S. Aquino, III
Performers during the 20th Anniversary launch
and also attended by former President
Fidel V. Ramos, former President Joseph
Ejercito Estrada and Vice President
Jejomar C. Binay. Cabinet Secretaries
and heads of government agencies,
together with leaders in the business
community and trading participants also
joined the PSE in the special event. In his
keynote speech, President Aquino cited
the gains of the market at the governance
front including the vital role of the
PSE in promoting investments in the
country. As the President congratulated
the Exchange on its milestones, he
expounded saying “There is no more
fitting context in which to celebrate your
20th anniversary than the one we have
today: characterized by optimism for our
prospects, a commitment to integrity,
and the drive to move this country
forward.”
The competition’s winners showcased provincial winners. Of The Sining PSE contest gathered some of the country’s top
the total 146 submissions from all over the country, a 28-year old artists, among them the Hon. Benedicto "BenCab" Cabrera and
Ilocano and an overseas Filipino worker clinched the grand prizes. Hon. Abdulmari Imao to lead the panel of judges. Joining the
Turning Tables, a painting by Bryan Teves of Sta. Lucia, Ilocos panel for the painting category were Dr. Jaime Laya, Ms. Felice Sta.
Sur, took home the top plum in the Painting category. Maria, Mr. Raul Isidro, and Mr. Alfred Esquillo, Jr. On the other
hand, sculptors Mr. Eduardo Castrillo and Mr. Jose Mendoza
In the sculpture category, the grand prize went to Natalio G. joined Mr. Imao as jurors in the sculpture category.
Alob, Jr. for his sculpture, Gear Up Pinoys. Alob lived and studied
Unification of PSE Office
On April 25, the PSE Board of Directors
approved the relocation of PSE offices to an What's beyond the numbers? Inspiration that drives a vision.
office building in Bonifacio Global City which
will be developed by Ayala Land, Inc. (ALI) Overseas Filipino Workers as modern day heroes—this is the subject of
and or its affiliates. The said relocation “Turning Tables,” the grand prize winner in the painting category of the
intends to unify the trading operations of first Sining PSE National Art Competition.
the PSE that are currently located at PSE
Plaza, Ayala Triangle, Makati City and PSE The artist, Bryan Teves, whose career has likewise turned for the
Centre, Exchange Road, Pasig City. better, shares, “I was given hope to be able to continue, because I was
already thinking of quitting.”
On May 3, PSE, ALI and Fort Bonifacio
Development Corporation (FBDC) entered With the theme of “United Filipino People for Progressive and Active
into a preliminary agreement concerning Trade,” submitted works were judged by a panel led by National Artists
the intended relocation on a lot situated BenCab and Abdulmari Imao.
along 28th Street, Bonifacio Global City,
Taguig City. Brian Teves' "Turning Tables" was one of the 110 entries submitted in
the Painting category of the Sining PSE National Art Competition.
PSE, ALI and FBDC are now discussing
the terms of the final agreement.
30 | PSE 2012 ANNUAL REPORT

It's cultivating an
inspired and healthy
workforce
The PSE believes that a healthy, trained
and inspired workforce produces more
output and results for the company. At
a time when the Philippines is getting
more and more attention from local
and international investors, the PSE
management and staff must be up to
PSE with SEC Chairperson Teresita Herbosa and Sining PSE panel of judges awarding winners of the Painting category PSE Foundation donating P1 million to PBSP for the Typhoon Pablo victims speed both technically and physically.

Towards this end, the PSE provided

various training and seminars to its
It's the capacity to Under its mandate to educate and
increase awareness of the investing public
employees to enhance technical
competencies and promote health and
share our gains on the stock market, the PSE Foundation wellness. The PSE conducted investment
undertook the following projects: seminars with the Colayco Foundation
Philippine Stock Exchange and Banco de Oro, Health Fair & Wellness
Foundation, Inc. • PSE commercial gap interstitials on Seminar with Slimmer’s World, a Flu
Business Nightly on ANC when the Awareness Lecture with Intellicare and
As the market continued to soar to new PSEi hit the 5,000 mark and the seminar on unhealthy lifestyle, among
heights under the bull market, The awarding for the first time of the PSE others. The PSE also continued to
Second prize Philippine Stock Exchange Foundation, Bell Awards for listed companies administer Hepatitis B Vaccine and anti-flu
winner for
Sculpture Inc. (PSE Foundation) remained mindful and trading participants; vaccines to all employees, dependents and
category by that gains must be shared with others interested trading participants.
Joji Limayo
particularly those who have been affected by • Listed company CEO 10-minute
calamities that took place in 2012. Through interviews on Mornings at ANC To complement these efforts, the PSE
its corporate social responsibility (CSR) every Wednesday; also continued its sports programs
mandate, the PSE Foundation granted the for employees, including the annual
following donations: • 30-minute documentary on the basketball, badminton and bowling
20th Anniversary of the unified PSE, tournaments spread throughout the year.
• P1,000,000 for the victims of which was aired three times in These activities also served as effective
Typhoon “Pablo”, through the December on ANC; bonding activities among employees.
Philippine Business for Social Progress
(PBSP). The donation is intended for the • Sponsored the First Prize winners of The PSE also provided opportunities
purchase of food packs which could the Painting and Sculpture categories for employees to give back to the
feed families of six for five days. The of the Sining PSE; community by facilitating the participation
PSE donated another P1,000,000 of employees in packing relief goods
through Caritas Manila. • Co-sponsored the “PSE Bull-Run at the GMA Kapuso Foundation for the
2012” with a donation of P100,000, benefit of typhoon victims and packing of
• P500,000 for the victims of Habagat a yearly commitment of the PSE school supplies for the benefit of indigent
in August 2012, through the campaigns Foundation in helping raise public students nationwide.
of the ABS-CBN Foundation, Inc. – awareness on the stock market;
Sagip Kapamilya and GMA Kapuso As 2012 marked the 20th anniversary of
Foundation, Inc., P250,000 of which • Donated P90,000 to the FINEX- the Exchange, employees also formed a big
were covered by a counterpart Capital Markets Development Council part of the celebration. The PSE held the
donation of the PSE. (CMDC) as its share in the operating 20th Anniversary Family Day last October 6
National Artists Hon. BenCab and Hon. Abdulmari Imao leading the Sining PSE launch
expenses of the CMDC secretariat. at the La Mesa Ecopark in Quezon City.
• P50,000 donation to the Philippine A special Anniversary shirt was also given
Business for Education, for the to all employees which they wore every
benefit of its Scholarship Fund for Friday from October to December.
1,000 Teachers.

Grand prize
winner for
the Sculpture
category by
Natalio Alob, Jr.

Display of the top winners of Sining PSE during the awards night on November 9
32 | PSE 2012
ANNUAL REPORT
Financial
Highlights
It's the opportunity to grow the
company and maximize its resources
to further expand the market
Financial Performance
The stock market’s sterling performance enabled the PSE to
deliver significantly improved financial results for the year. A
number of major initiatives implemented by the stock exchange
in 2012 also contributed to the expansion of the company’s
existing revenue lines, while at the same time providing
more room for growth and creating new opportunities to take
advantage of the generally positive business conditions.
The overall vibrancy of the market was highlighted by the
robustness of capital-raising activities, as companies went
to the stock exchange to secure funding for their expansion
programs. The PSE welcomed seven new firms to its roster of
listed companies, with five conducting initial public offerings
while two listed by way of introduction. Existing listed companies
also utilized the stock exchange to the hilt as additional listings
surged and a few companies set record-breaking stock offerings.
As a result, listing fees earned by the Exchange went up by 51.9
percent to P356.74 million, accounting for 31.2 percent of total
operating revenues. On an aggregate basis, listing-related fees,
which include annual listing maintenance fees and processing
fees, improved by 30.9 percent to P562.04 million in 2012.
Investors both local and foreign saw the attractiveness of
local equities and traded shares actively, as evidenced by the
surge in daily average trading, which grew by 27.1 percent
year-on-year. The heightened preference for emerging
market investments such as the Philippines was further
supported by the PSE’s decision to add an afternoon session
to its trading hours, allowing the Exchange to reach out to
investors in different time zones and effectively align itself
with the operating hours of other exchanges in the region. The
implementation of the 10 percent minimum public ownership
rule also had a big impact in increasing trading activity as
companies released more of their shares into freely-tradable
space to comply with the rule. This initiative enabled a larger
set of companies to become more broadly-held and entice
individuals who were looking to diversify their portfolios.
Trading-related fees, service fees and regulatory fees
embodied this newfound interest in Philippine-listed issues,
collectively rising by 22.6 percent to
P560.33 million.
The remarkable showing of operating
revenues was further augmented by the
65 percent improvement in the PSE’s
Other Income account, which benefitted
from the more than seven-fold increase
in mark-to-market gain on financial assets
at fair value through profit or loss. This
account mainly comprised of externally
managed funds that also had its share of
substantial gains due to the market's rally.
Despite challenges posed by capital-
intensive investments in technology
infrastructure and higher spending to
fast-track the development of critical
initiatives, the PSE successfully exercised
prudent cost management as expenses
increased at a slower pace compared to
revenues. A significant portion of the
increase in expenditures was brought about
by manpower costs, which incidentally
also accounted for the largest share in
total expenses. Salary increases and
additional personnel to fortify the CMIC
drove manpower expenses to rise by
25.8 percent to P145.69 million. Extended
trading hours also brought higher usage of
utilities, contributing to the 7.5 percent jump
in occupancy costs. To temper the financial
impact of these expanded cost items, the
Exchange managed to substantially reduce
expenses in areas such as professional fees,
foreign travel and communications, and
collect recoveries on costs incurred from
conducting securities courses with partner
universities.
The favorable combination of resurgent
revenue lines and controlled cost outlays
allowed the organization to record a very
profitable year for the Exchange, as net
income for 2012 grew by an impressive 53.7
percent year-on-year to P624.17 million. This
notable showing reaffirms the exciting
upside of the PSE as a an income-generating
institution, and helps build momentum
towards another rewarding year as the
company looks to outdo itself once again
in 2013. As a result of PSE's impressive
financial performance, the Board of Directors
declared cash dividends amounting to a total
of P9.00 per share on March 13, 2013, and
subsequently declared a 20 percent stock
dividend on April 10, 2013.
New market data products
Launched in May 2012, the Corporate
Announcements Feed data products
satisfies investors' need for timely and
easy access to information about listed
companies, making it a salient aid in
identifying and maximizing investment
opportunities. Further, in the development
pipeline were products to tap the retail
market such as providing market data
through SMS technology and mobile
web. The Exchange also adopted
policies that would open up the use of
its proprietary index for the creation of
derivative products, as well as generate
more awareness and use of its main index,
the PSEi. The existing business model
for market data products was further
enhanced to align with peer exchanges'
best practice, as well as the Exchange's
new offerings such as an online trading
platform, the PSETradex. All these helped
strengthen the viability of the market data
business of the Exchange as a provider of
information for investment decisions and a
steady contributor to its operations.
It's the product of
enhancements and
efficiencies in the
workplace
Procurement Enhancement
In 2012, PSE continued to improve its
operational efficiency by implementing
savings generating efforts in procurement,
including the following initiatives and
projects:
1. Enhanced systems monitoring and
efficient utilization of office equipment
which generated savings amounting
to P1.95 million which is three times
the savings generated last year in
2011 through similar efforts.
2.
Rationalization of procurement of
common supplies, including
newspaper and magazine subscriptions
of various PSE offices and medical Highlights of
supplies both for Ayala and Tektite
clinics. Financial Results
(In thousand Php)
3. Reconciliation of PSE Property and
Equipment (P&E) which resulted to
improvement in asset inventory and
write off of non-existing P&E amounting
to P9.67 million that have been fully
depreciated.
4. Implementation of PSE-AX Purchase
Order and Inventory Management
which will rationalize the steps in
purchasing and procurement and
establish controls on purchasing of
items only to designated Divisions that
should lead to better supply chain
management. The program was
started in 2012 and will be rolled-out
in 2013.
Office Reconfiguration
As the Exchange continues to find ways
to better its services, reconfiguring the
space requirements and offices was also
deemed necessary. In 2012, the PSE
Library space was expanded and relocated
at the 27th floor. It is adjacent to the CMIC,
which was also moved physically outside
of the premises as a complementary
effort to signal the independence of the
operations of CMIC from the PSE. Other
Divisions were also relocated and
reconfigured to provide a better workplace
for employees and to open up space for
the group that will operate the PSETradex Figure 8
initiative.
Organizational Structure
Rationalization
The Offices of the Chief Operating Officer
(COO) and the Internal Audit Group were
reinstated and the Corporate Planning
and Investor Relations as well as Human
Resources and Administration were
realigned to become Divisions given their
functions. The Office of the COO has
been providing complementary support to
the Office of the President to further push
the attainment of the company’s targets
from an operational standpoint. The PSE
also created and appointed a new Investor
Relations Officer.
34 | PSE 2012 ANNUAL REPORT
It's fulfilling our role
to be an engine for
economic growth
Strategic Planning
The year 2012 marked the fifth and final year of the Exchange’s
strategic agenda called “LEVEL UP”, with each letter
representing critical reforms the Exchange outlined to help
attain its vision of becoming one of the preferred investment
destinations in the region.
In July, the Exchange engaged the services of
PricewaterhouseCoopers Financial Advisors, Inc. (PwCFA) to
assist in the planning for a new strategic agenda. The PSE kicked
off the strategic planning by reviewing its mission and vision vis-à-
vis the present economic environment. Key representatives from
the Exchange, together with PwCFA, conducted consultative
meetings with various stakeholders. The results were used as data
in identifying critical issues that need to be addressed by the PSE.
Workshops were then held to confirm these issues and formulate
key initiatives that will push the Exchange to become more
competitive globally.
Where it
counts
The end result of the process was a three-year plan focused
on launching essential products and services that will lay the
groundwork for transforming the PSE into a world-class exchange.
The focus on new products and services would be supported by
efforts to raise the level of the Exchange’s preparedness in three
critical areas – systems and processes, technology, and human
resources. The critical reforms embodied in the new strategic
plan are designed to quickly take advantage of the prevailing good
business climate, and to strengthen the Exchange against internal
and external risks.
The new strategic agenda of the PSE holds the key to pushing our
market even closer to global standards. Focused on introducing
new products, we shall exert all our efforts in continuing our goal to
become a world-class exchange that plays a vital role in making the
economy more progressive and vibrant.
34 | PSE 2012 listed issues and companies | 35
ANNUAL REPORT
Certification on
Compliance with
Issue Code Par Value Website Manual on Corporate
Governance
Maybank ATR KimEng Financial Corporation1 MAKE 1.00 www.maybank-atrke.com ü
Medco Holdings, Inc. MED 1.00 www.medco.com.ph ü

National Reinsurance Corporation of the Philippines NRCP 1.00 www.nrcp.com.ph ü

Sun Life Financial Inc. SLF - www.sunlife.com
Listed
The Philippine Stock Exchange, Inc. PSE 1.00 www.pse.com.ph ü

As of Yearend 2012
Issues &
Companies Vantage Equities, Inc. V 1.00 www.ivantage.ph ü
Data on website and certification on compliance with Corporate Governance manual dated as of February 2013
Industrial Sector
Electricity, Energy, Power & Water

Aboitiz Power Corporation AP 1.00 www.aboitizpower.com ü

Certification on
Compliance with Alsons Consolidated Resources, Inc. ACR 1.00 www.acr.com.ph ü
Issue Code Par Value Website
Manual on Corporate Calapan Ventures, Inc. H2O 1.00 www.h2o.com ü
Governance
Financials Sector Energy Development Corporation EDC 1.00 www.energy.com.ph ü

Banks First Gen Corporation FGEN 1.00 www.firstgen.com.ph ü

Asiatrust Development Bank, Inc. ASIA 10.00 no corporate website First Philippine Holdings Corporation FPH 10.00 www.fphc.com ü

Bank of the Philippine Islands BPI 10.00 www.bpi.com.ph ü Manila Electric Company MER 10.00 www.meralco.com.ph ü

BDO Unibank, Inc. BDO 10.00 www.bdo.com.ph Manila Water Company, Inc. MWC 1.00 www.manilawater.com ü
Petron Corporation PCOR 1.00 www.petron.com ü
China Banking Corporation CHIB 10.00 www.chinabank.ph ü
Citystate Savings Bank, Inc. CSB 10.00 www.citystatesavings.com ü Phoenix Petroleum Philippines, Inc. PNX 1.00 www.phoenixphilippines.com ü

East West Banking Corporation EW 10.00 www.eastwestbanker.com ü SPC Power Corporation SPC 1.00 no corporate website ü
Trans-Asia Oil and Energy Development Corporation TA 1.00 www.transasia-energy.com ü
Export and Industry Bank, Inc. “A” EIBA 0.25 no corporate website
Export and Industry Bank, Inc. “B” EIBB 0.25 no corporate website Vivant Corporation VVT 1.00 www.vivant.com.ph ü

Metropolitan Bank & Trust Company MBT 20.00 www.metrobank.com.ph ü Food, Beverage & Tobacco
AgriNurture, Inc. ANI 1.00 www.ani.com.ph ü
Philippine Bank of Communications PBC 100.00 www.pbcom.com.ph ü
Philippine National Bank PNB 40.00 www.pnb.com.ph ü Alliance Select Foods International, Inc. FOOD 1.00 www.allianceselectfoods.com ü

Philippine Savings Bank PSB 10.00 www.psbank.com.ph ü Bogo-Medellin Milling Company, Inc. BMM 10.00 no corporate website ü
Central Azucarera de Tarlac, Inc. CAT 10.00 www.cat-luisita.com ü
Philippine Trust Company PTC 10.00 www.philtrustbank.com ü
Rizal Commercial Banking Corporation RCB 10.00 www.rcbc.com ü Cosmos Bottling Corporation CBC 1.00 www.cosmosbottling.com.ph ü

Security Bank Corporation SECB 10.00 www.securitybank.com.ph ü D&L Industries, Inc. DNL 1.00 www.dnl.com.ph ü
Ginebra San Miguel, Inc. GSMI 1.00 www.ginebrasanmiguel.com ü
Union Bank of the Philippines UBP 10.00 www.unionbankph.com ü
Other Financial Institutions Jollibee Foods Corporation JFC 1.00 www.jollibee.com.ph ü

Bankard, Inc. BKD 0.55 www.rcbcbankard.com ü Liberty Flour Mills, Inc. LFM 10.00 www.libertygroup.com.ph ü
LT Group, Inc. 2 LTG 1.00 www.tanduay.com ü
BDO Leasing and Finance, Inc. BLFI 1.00 www.bdo.com.ph/business/leasing- ü
financing/about-us Pancake House, Inc. PCKH 1.00 www.pancakehouse.com.ph ü
COL Financial Group, Inc. 1 COL 1.00 www.colfinancial.com ü Pepsi-Cola Products Philippines, Inc. PIP 0.15 www.pepsiphilippines.com ü
Filipino Fund, Inc. FFI 1.00 no corporate website ü RFM Corporation RFM 1.00 www.rfmfoods.com ü
First Abacus Financial Holdings Corporation FAF 1.00 www.firstabacusfinancial.com ü Roxas and Company, Inc. RCI 1.00 www.roxascompany.com.ph ü
I-Remit, Inc. I 1.00 www.myiremit.com ü Roxas Holdings, Inc. ROX 1.00 www.rhi-cadp.com.ph ü
Manulife Financial Corporation MFC - www.manulife.com ü San Miguel Brewery, Inc. SMB 1.00 www.sanmiguelbrewery.com.ph ü
1
Formerly CitisecOnline.com, Inc. 1
Formerly ATR KimEng Financial Corporation (“ATRK”)
2
Formerly Tanduay Holdings, Inc ("TDY")
36 | PSE 2012 ANNUAL REPORT listed issues and companies | 37

Certification on Certification on
Compliance with Compliance with
Issue Code Par Value Website Manual on Corporate Issue Code Par Value Website Manual on Corporate
Governance Governance
San Miguel Corporation SMC 5.00 www.sanmiguel.com.ph ü Ionics, Inc. ION 1.00 www.ionicsgroup.com ü
San Miguel Pure Foods Company, Inc. PF 10.00 www.sanmiguelpurefoods.com ü Panasonic Manufacturing Philippines Corporation PMPC 1.00 www.panasonic.com.ph ü

Swift Foods, Inc. SFI 1.00 no corporate website ü Other Industrials

Universal Robina Corporation URC 1.00 www2.urc.com.ph ü Alphaland Corporation ALPHA 1.00 www.alphaland.com.ph ü
Victorias Milling Company, Inc. VMC 10.00 www.victoriasmilling.com ü Filsyn Corporation “A” FYN 5.00 www.filsyncorp.com ü

Vitarich Corporation VITA 1.00 www.vitarich.com ü Filsyn Corporation “B” FYNB 5.00 www.filsyncorp.com ü
Construction, Infrastructure & Allied Services Picop Resources, Inc. PCP 1.00 no corporate website
Asiabest Group International Inc. 1 ABG 1.00 no corporate website ü Splash Corporation SPH 1.00 www.splash.com.ph ü

Concrete Aggregates Corporation “A” CA 10.00 www.cac.com.ph ü Steniel Manufacturing Corporation STN 1.00 no corporate website ü
Concrete Aggregates Corporation “B” CAB 10.00 www.cac.com.ph ü Holding Firms Sector
EEI Corporation EEI 1.00 www.eei.com.ph ü A. Soriano Corporation ANS 1.00 www.anscor.com.ph ü

Federal Resources Investment Group, Inc. FED 1.00 www.federalchemicals.com.ph ü Abacus Consolidated Resources and Holdings, Inc. ABA 1.00 www.abacusconsolidated.com ü
Holcim Philippines, Inc. HLCM 1.00 www.holcim.com.ph ü Aboitiz Equity Ventures, Inc. AEV 1.00 www.aboitiz.com ü
Lafarge Republic, Inc. 2
LRI 1.00 www.lafarge.com.ph ü Alcorn Gold Resources Corporation APM 0.01 www.alcorngold.com ü

Mariwasa Siam Holdings, Inc. MMI 0.02 www.mariwasa.com ü Alliance Global Group, Inc. AGI 1.00 www.allianceglobalinc.com ü
Megawide Construction Corporation MWIDE 1.00 www.megawide.com.ph ü Anglo Philippine Holdings Corporation APO 1.00 www.anglophil.com ü
Philippine National Construction Corporation PNC 10.00 www.pncc.ph ü Asia Amalgamated Holdings Corporation AAA 1.00 no corporate website ü

Phinma Corporation PHN 10.00 www.phinmacorp.com.ph ü ATN Holdings, Inc. “A” ATN 1.00 www.atnholdings.com ü
Southeast Asia Cement Holdings, Inc. CMT 0.35 no corporate website ü ATN Holdings, Inc. “B” ATNB 1.00 www.atnholdings.com ü
Supercity Realty Development Corporation SRDC 1.00 www.supercity.com.ph ü Ayala Corporation AC 50.00 www.ayala.com.ph ü

TKC Steel Corporation T 1.00 www.tkcsteel.com ü BHI Holdings, Inc. BH 100.00 www.bhi-holdings.com ü
Vulcan Industrial & Mining Corporation VUL 1.00 www.vulcanminingandpetroleum.webs.com ü DMCI Holdings, Inc. DMC 1.00 www.dmciholdings.com ü
Chemicals F & J Prince Holdings Corporation “A” FJP 1.00 www.fjprince.com ü

Chemical Industries of the Philippines CIP 10.00 www.chemphil.com.ph ü F & J Prince Holdings Corporation “B” FJPB 1.00 www.fjprince.com ü
Chemrez Technologies, Inc. COAT 1.00 www.chemrez.com ü Fil-Estate Corporation FC 1.00 no corporate website
Euro-Med Laboratories Philippines, Inc. EURO 1.00 www.euromedlab.net ü Filinvest Development Corporation FDC 1.00 www.filinvestgroup.com ü

LMG Chemicals Corporation LMG 1.00 www.chemphil.com.ph/main_lmg.htm ü Forum Pacific, Inc. FPI 1.00 no corporate website ü
Mabuhay Vinyl Corporation MVC 1.00 www.mvc.com.ph ü GT Capital Holdings, Inc. GTCAP 10.00 www.gtcapital.com.ph ü
Manchester International Holdings Unlimited Corporation “A”
3
MIH 1.00 www.pharmaindustries.com ü House of Investments, Inc. HI 1.50 www.hoi.com.ph ü

Manchester International Holdings Unlimited Corporation 3 “B” MIHB 1.00 www.pharmaindustries.com ü JG Summit Holdings, Inc. JGS 1.00 www.jgsummit.com.ph ü

Metro Alliance Holdings & Equities Corporation “A” MAH 1.00 no corporate website ü Jolliville Holdings Corporation JOH 1.00 www.joh.ph ü

Metro Alliance Holdings & Equities Corporation “B” MAHB 1.00 no corporate website ü Keppel Philippines Holdings, Inc. “A” KPH 1.00 no corporate website ü

Pryce Corporation PPC 1.00 www.prycegardens.com ü Keppel Philippines Holdings, Inc. “B” KPHB 1.00 no corporate website ü

Electrical Components & Equipment Lodestar Investment Holdings Corporation LIHC 0.10 no corporate website ü

Cirtek Holdings Philippines Corporation CHIPS 1.00 www.cirtekholdings.com ü Lopez Holdings Corporation LPZ 1.00 www.lopez-holdings.ph ü

Greenergy Holdings Incorporated GREEN 0.01 www.ghi.com.ph ü Mabuhay Holdings Corporation MHC 1.00 www.mabuhayholdingscorp.com ü

Integrated Micro-Electronics, Inc. IMI 1.00 www.global-imi.com ü Marcventures Holdings, Inc. MARC 1.00 www.marcventuresholdings.com ü
1
Formerly AGP Industrial Corporation (“AGP”) Metro Pacific Investments Corporation MPI 1.00 www.mpic.com.ph ü
2
Formerly Republic Cement Corporation (“RCM”)
3
The new coprorate name is "Melco Crown (Philippines) Resorts Corporation" as approved by the Securities and Exchange Commission on March 5, 2013 Minerales Industrias Corporation MIC 1.00 no corporate website ü
38 | PSE 2012 ANNUAL REPORT listed issues and companies | 39

Certification on Certification on
Compliance with Compliance with
Issue Code Par Value Website Manual on Corporate Issue Code Par Value Website Manual on Corporate
Governance Governance

MJC Investments Corporation MJIC 1.00 no corporate website ü IRC Properties, Inc. 1 IRC 1.00 www.interportresources.com ü

Pacifica, Inc. PA 0.005 no corporate website ü Keppel Philippines Properties, Inc. KEP 1.00 www.keppelland.com ü

Prime Media Holdings, Inc. PRIM 1.00 no corporate website ü Marsteel Consolidated, Inc. “A” MC 0.01 no corporate website

Prime Orion Philippines, Inc. POPI 1.00 www.primeorion.com ü Marsteel Consolidated, Inc. “B” MCB 0.01 no corporate website

Republic Glass Holdings Corporation REG 1.00 www.repglass.net ü Megaworld Corporation MEG 1.00 www.megaworldcorp.com ü

Seafront Resources Corporation SPM 1.00 www.seafrontresources.com.ph ü MRC Allied, Inc. MRC 0.20 www.mrcallied.com ü

Sinophil Corporation SINO 1.00 no corporate website ü Philippine Estates Corporation PHES 1.00 www.phes.net ü

SM Investments Corporation SM 10.00 www.sminvestments.com ü Philippine Realty and Holdings Corporation RLT 1.00 www.philrealtycorp.com ü

Solid Group, Inc. SGI 1.00 www.solidgroup.com.ph ü Philippine Tobacco Flue-Curing and Redrying Corporation TFC 1.00 no corporate website ü

South China Resources, Inc. SOC 1.00 www.southchinaresourcesinc.com.ph ü Primetown Property Group, Inc. PMT 1.00 no corporate website

Synergy Grid & Development Phils., Inc. SGP 1.00 no corporate website ü Primex Corporation PRMX 1.00 www.primexcorporation.com ü

Unioil Resources & Holdings Company, Inc. UNI 1.00 no corporate website ü Robinsons Land Corporation RLC 1.00 www.robinsonsland.com ü

Wellex Industries, Inc. WIN 1.00 www.wellex.com.ph ü Rockwell Land Corporation ROCK 1.00 www.e-rockwell.com ü

Zeus Holdings, Inc. ZHI 1.00 www.zeusholdingsinc.com ü San Miguel Properties, Inc. SMP 10.00 www.sanmiguelproperties.com.ph ü

Property Sector Shang Properties, Inc. SHNG 1.00 www.shangproperties.com ü

A Brown Company, Inc. BRN 1.00 www.abrown.ph ü SM Development Corporation SMDC 1.00 www.smdevelopment.com ü

Anchor Land Holdings, Inc. ALHI 1.00 www.anchorland.com.ph ü SM Prime Holdings, Inc. SMPH 1.00 www.smprime.com ü

Araneta Properties, Inc. ARA 1.00 www.aranetaproperties.com ü Sta. Lucia Land, Inc. SLI 1.00 www.stalucialand.com.ph ü

Arthaland Corporation ALCO 0.18 www.arthaland.net ü Starmalls, Inc. 2 STR 1.00 www.starmallsinc.com.ph ü

Ayala Land, Inc. ALI 1.00 www.ayalaland.com.ph ü Suntrust Home Developers, Inc. SUN 1.00 www.suntrusthomedevelopers.com ü

Belle Corporation BEL 1.00 www.bellecorp.com ü Uniwide Holdings, Inc. UW 1.00 www.uni-wide.com ü

Cebu Holdings, Inc. CHI 1.00 www.cebuholdings.com ü Vista Land & Lifescapes, Inc. VLL 1.00 www.vistaland.com.ph ü

Cebu Property Venture & Development Corporation “A” CPV 1.00 www.cpvdc.com ü Services Sector

Cebu Property Venture & Development Corporation “B” CPVB 1.00 www.cpvdc.com ü Media

Century Properties Group Inc. CPG 0.53 www.century-properties.com ü ABS-CBN Corporation ABS 1.00 http://ir.abs-cbn.com ü

City & Land Developers, Inc. LAND 1.00 www.citylandcondo.com ü GMA Network, Inc. GMA7 1.00 www.gmanetwork.com ü

Cityland Development Corporation CDC 1.00 www.citylandcondo.com ü Manila Bulletin Publishing Corporation MB 1.00 www.mb.com.ph ü

Crown Equities, Inc. CEI 0.10 www.crownequitiesinc.com Manila Broadcasting Company MBC 1.00 www.manilabroadcasting.com ü

Cyber Bay Corporation CYBR 1.00 no corporate website ü Telecommunications

Empire East Land Holdings, Inc. ELI 1.00 www.empire-east.com ü Globe Telecom, Inc. GLO 50.00 www.globe.com.ph ü

Eton Properties Philippines, Inc. 1 ETON 1.00 delisted delisted Liberty Telecoms Holdings, Inc. LIB 1.00 no corporate website ü

Ever-Gotesco Resources & Holdings, Inc. EVER 1.00 no corporate website ü Philippine Telegraph and Telephone Corporation PTT 1.00 www.ptt.net.ph

Filinvest Land, Inc. FLI 1.00 www.filinvestland.com ü Philippine Long Distance Telephone Company TEL 5.00 www.pldt.com.ph ü

Global-Estate Resorts, Inc. GERI 1.00 www.global-estate.ph ü Information Technology

Gotesco Land, Inc. “A” GO 1.00 no corporate website ü DFNN, Inc. DFNN 1.00 www.dfnn.com ü

Gotesco Land, Inc. “B” GOB 1.00 no corporate website ü Imperial Resources, Inc. “A” IMP 5.00 no corporate website ü

Highlands Prime, Inc. HP 1.00 www.highlandsprime.com ü Imperial Resources, Inc. “B” IMPB 5.00 no corporate website ü

1
Delisted on January 2, 2013
IP Converge Data Center, Inc. CLOUD 1.00 no corporate website
1
Formerly Interport Resources Corporation
2
Formerly Polar Property Holdings Corporation (“PO”)
40 | PSE 2012 ANNUAL REPORT listed issues and companies | 41

Certification on Certification on
Compliance with Compliance with
Issue Code Par Value Website Manual on Corporate Issue Code Par Value Website Manual on Corporate
Governance Governance
IPVG Corporation 1 IP 1.00 www.ipvg.com ü Puregold Price Club, Inc. PGOLD 1.00 www.puregold.com.ph ü
Island Information & Technology, Inc. IS 0.01 no corporate website ü Other Services

ISM Communications Corporation ISM 1.00 www.ismcomm.com ü APC Group, Inc. APC 1.00 www.apcaragorn.net ü
Nextstage, Inc. NXT 1.00 no corporate website Easycall Communications Philippines, Inc. ECP 1.00 www.easycall.com.ph ü
PhilWeb Corporation WEB 1.00 www.philweb.com.ph ü Globalport 900, Inc. PORT 1.00 www.g900.com.ph ü

Touch Solutions, Inc. TSI 1.00 www.touchgroup.net ü Information Capital Technology Ventures, Inc. ICTV 1.00 www.ictv.ph ü
Transpacific Broadband Group International, Inc. TBGI 1.00 www.tbgi.net.ph ü Paxys, Inc. PAX 1.00 www.paxys.com ü
Yehey! Corporation YEHEY 1.00 www.yeheydigitalgroup.com ü Philcomsat Holdings Corporation    PHC 1.00 www.philcomsat.com.ph

Transportation Services STI Education Systems Holdings, Inc. 1 STI 0.50 www.stiholdings.com ü
2GO Group, Inc. 2 2GO 1.00 www.2go.com.ph ü Mining & Oil Sector
Asian Terminals, Inc. ATI 1.00 www.asianterminals.com.ph ü Mining

Cebu Air, Inc. CEB 1.00 www.cebupacificair.com ü Abra Mining and Industrial Corporation AR 0.01 www.abramining.com ü
International Container Terminal Services, Inc. ICT 1.00 www.ictsi.com ü Apex Mining Company, Inc. “A” APX 1.00 www.apexmines.com ü
Lorenzo Shipping Corporation LSC 1.00 www.lorenzoshipping.com ü Apex Mining Company, Inc. “B” APXB 1.00 www.apexmines.com ü

Macroasia Corporation MAC 1.00 www.macroasiacorp.com ü Atlas Consolidated Mining and Development Corporation AT 8.00 www.atlasphilippines.com ü
PAL Holdings, Inc. PAL 1.00 www.philippineairlines.com ü Atok-Big Wedge Company, Inc. AB 1.00 www.atokbigwedge.com ü
Hotel & Leisure Benguet Corporation “A” BC 3.00 www.benguetcorp.com ü

Acesite (Philippines) Hotel Corporation ACE 1.00 www.waterfronthotels.com.ph ü Benguet Corporation “B” BCB 3.00 www.benguetcorp.com ü
Boulevard Holdings, Inc. BHI 0.10 www.boulevardholdings.com ü Century Peak Metals Holdings Corporation CPM 1.00 www.centurypeakmetals.com ü
Grand Plaza Hotel Corporation GPH 10.00 www.grandplazahotelcorp.com ü Coal Asia Holdings Incorporated COAL 1.00 www.coalasiaholdings.com ü

Waterfront Philippines, Inc. WPI 1.00 www.waterfronthotels.com.ph ü Dizon Copper Silver Mines, Inc. DIZ 1.00 www.dizonmines.com ü
Education GEOGRACE Resources Philippines, Inc. GEO 1.00 www.geograce.com ü
Centro Escolar University CEU 1.00 www.ceu.edu.ph ü Lepanto Consolidated Mining Company “A” LC 0.10 www.lepantomining.com ü

Far Eastern University, Inc. FEU 100.00 www.feu.edu.ph ü Lepanto Consolidated Mining Company “B” LCB 0.10 www.lepantomining.com ü
iPeople, Inc. IPO 1.00 www.ipeople.com.ph ü Manila Mining Corporation “A” MA 0.01 www.manilamining.com ü
Casinos & Gaming Manila Mining Corporation “B” MAB 0.01 www.manilamining.com ü

Berjaya Philippines, Inc. BCOR 1.00 www.pgpi.com.ph ü Nickel Asia Corporation NIKL 0.50 www.nickelasia.com ü
Bloomberry Resorts Corporation 3
BLOOM 1.00 www.activeallianceinc.com ü NiHAO Mineral Resources International, Inc. NI 1.00 www.nihaomining.com ü
IP E-Game Ventures, Inc. EG 0.01 www.e-games.com.ph ü Omico Corporation OM 1.00 http://203.177.6.3/omico.com.ph/ ü

Leisure & Resorts World Corporation LR 1.00 www.lrwc.com.ph ü Oriental Peninsula Resources Group, Inc. ORE 1.00 www.orientalpeninsula.com ü
Manila Jockey Club, Inc. MJC 1.00 www.manilajockey.com ü Philex Mining Corporation PX 1.00 www.philexmining.com.ph ü
Pacific Online Systems Corporation LOTO 1.00 www.loto.com.ph ü Semirara Mining Corporation SCC 1.00 www.semiraramining.com ü

Philippine Racing Club, Inc. PRC 1.00 www.santa-ana-park.com ü United Paragon Mining Corporation UPM 0.01 www.unitedparagon.com ü
Premiere Horizon Alliance Corporation 4 PHA 0.25 www.pepinc.ph ü Oil
Retail Basic Energy Corporation BSC 0.25 www.basicenergy.ph ü

Calata Corporation CAL 1.00 www.calatacorp.com ü Oriental Petroleum and Minerals Corporation “A” OPM 0.01 no corporate website ü
Philippine Seven Corporation SEVN 1.00 www.7-eleven.com.ph ü Oriental Petroleum and Minerals Corporation “B” OPMB 0.01 no corporate website ü
1
The new corporate name is "Millenium Global Holdings, Inc," as approved by the Securities and Exchange Commission on March 5, 2013 PetroEnergy Resources Corporation PERC 1.00 www.petroenergy.com.ph ü
2
Formerly ATS Consolidated (ATSC), Inc. (“ATS”)
3
Formerly Active Alliance, Inc. (“AAI”)
1
Formerly JTH Davies Holdings, Inc. (“JTH”)
4
Formerly Premiere Entertainment Philippines, Inc. (“PEP”)
42 | PSE 2012 ANNUAL REPORT

Certification on
Compliance with
Issue Code Par Value Website Manual on Corporate
Governance
Philex Petroleum Corporation PXP 1.00 no corporate website ü
PNOC Exploration Corporation “A” PEC 1.00 www.pnoc-ec.com.ph ü

PNOC Exploration Corporation “B” PECB 1.00 www.pnoc-ec.com.ph ü

The Philodrill Corporation OV 0.01 www.philodrill.com ü
Preferred

Allied Banking Corporation - 15% Cumulative Convertible Preferred A ABC 1,000.00 www.alliedbank.com.ph ü
Ayala Corporation Preferred Class “A” Shares ACPA 100.00 www.ayala.com.ph ü
Ayala Corporation Preferred Class “B” Shares ACPR 100.00 www.ayala.com.ph ü

Benguet Corporation - 8% Cumulative Convertible Preferred A BCP 3.44 www.benguetcorp.com ü

DMCI Holdings, Inc. - Cumulative Convertible Preferred DMCP 1.00 www.dmciholdings.com ü
First Gen Corporation Series “F” Preferred Shares FGENF 10.00 www.firstgen.com.ph ü

First Gen Corporation Series “G” Preferred Shares FGENG 10.00 www.firstgen.com.ph ü
First Philippine Holdings Corporation - Preferred FPHP 100.00 www.fphc.com ü
Globe Telecom, Inc. - Preferred A GLOPA 5.00 www.globe.com.ph ü

Petron Corporation - Preferred PPREF 1.00 www.petron.com ü

Philippine Bank of Communications - Preferred PBCP 25.00 www.pbcom.com.ph ü
PLDT 10% Cumulative Convertible Preferred Series HH TLHH 10.00 www.pldt.com.ph ü

San Miguel Corporation - Preferred Series “1” SMCP1 5.00 www.sanmiguel.com.ph ü

San Miguel Corporation Series “2” Preferred Shares - Subseries “2-A” SMC2A 5.00 www.sanmiguel.com.ph ü
San Miguel Corporation Series “2” Preferred Shares - Subseries “2-B” SMC2B 5.00 www.sanmiguel.com.ph ü

San Miguel Corporation Series “2” Preferred Shares - Subseries “2-C” SMC2C 5.00 www.sanmiguel.com.ph ü
San Miguel Pure Foods Company, Inc. - Preferred PFP 10.00 www.sanmiguelpurefoods.com ü
Swift Foods, Inc. Convertible Preferred SFIP 1.00 no corporate website ü

Philippine Deposit Receipts

ABS-CBN Holdings Corporation - Philippine Deposit Receipts ABSP 0.10 1 www.abs-cbnpdr.com ü
GMA Holdings, Inc. - Philippine Deposit Receipts GMAP 0.05 1
www.gmanetwork.com ü

Warrants
IRC Properties, Inc. Warrants 2 IRW 1.00 1 www.ircproperties.com ü
Megaworld Corporation - Warrants1 MEGW1 1.00 1
www.megaworldcorp.com ü

Megaworld Corporation - Warrants2 MEGW2 1.00 1 www.megaworldcorp.com ü

Small & Medium Enterprises
iRipple, Inc.

Makati Finance Corporation

RPL

MFIN
1.00

1.00
www.iripple.com

www.makatifinance.ph
ü

ü Behind the
Exchange
1
Exercise Price
2
Formerly Interport Resources Warrants
 13
15
4
10
3 9
5 6
7 16

17

12

11 14

Board of Directors
1. Jose T. Pardo, Chairman-Independent Director 2. Hans B. Sicat, President and Chief Executive Officer; Director 3. Eddie T. Gobing, Director
4. David O. Chua, Director 5. Anabelle Lim-Chua, Director 6. Dakila B. Fonacier, Independent Director 7. Robert G. Vergara, Director
8. Amor C. Iliscupidez, Director 9. Eusebio H. Tanco, Director 10. Emmanuel O. Bautista, Director 11. Ma. Vivian Yuchengco, Director
12. Cornelio T. Peralta, Independent Director 13. Francis Chua, Director 14. Alejandro T. Yu, Director 15. Edgardo G. Lacson, Director
16. Aissa V. Encarnacion, Corporate Secretary 17. Omelita J. Tiangco, Treasurer

2 1
46 | PSE 2012
2012
ANNUAL REPORT
REPORT

Department
Heads
From Left to Right:
Roel M. Villanueva
Head, Market Control
Department
Sheryl J. Lopez
Assistant Head,
Management Broker Systems
Officers
Executive Officers Support and
Certification Department
Sheryl V. Perillo
Head, Trading Development
Department
Marvin M. Refuerzo
Head, Trading Operations
Department
Jose Antonio S. Vilar
Head, Marketing Services
Department

5
4
3 2
6 7
1

From Left to Right:

Eliza S. Rodriguez
9
Head, Accounting Department
Mark Frederick V. Visda
8
Head, Corporate Planning
and Research Department
10
Jose Valeriano B. Zuño, III
Officer-In-Charge,
Listing Department
Jose Cecilio G. Peñaflor
Assistant Head, Market
Education Department
Janet A. Encarnacion
Head, Disclosure Department
Jo Ann G. Bautista
11
Head, Business Development
Department
Herbert G. Vergara
Head, Administrative Services
Department

12

From Left to Right:

Maria Elizabeth S. Lacson
1. Hans B. Sicat, President and Chief Executive Officer 2. Roel A. Refran, Senior Vice President and Chief Operating Officer Head, Public and Investor
3. Buenaventura S. Sanguyo, Jr., Assistant Vice President and General Counsel 4. Marsha Angelyn M. Resurreccion, Assistant Vice President Relations Department
and Head, Issuer Regulation Division 5. J. Argel G. Astudillo, Vice President, Compliance Officer, and Head, Governance, Risk and Compliance Zaldy P. Rocero
6. Marietta U. Tan, Vice President and Head, Controllership and Treasury Division 7. Jinky A. Alora, Assistant Vice President and Head, Internal Head, Network and
Audit Group 8. Sebastian E. Olaivar, Jr. Assistant Vice President and Head, Human Resources and Administration Division Telecommunications
9. Rachelle C. Blanch, Vice President and Head, Market Operations Division 10. Tristan G. Gillego, Assistant Vice President and Head, Department
Technology Division 11. John Benette B. Mamañgun, Assistant Vice President, Investor Relations Officer and Head, Corporate Planning and Investor Elisa L. Benavidez
Relations Division 12. Precilla S. Sandoval, Assistant Vice President and Head, Market Data Business Department Head, Budget and
Treasury Department
Adonis H. Gildore
Head, Systems and
Database Department
Josielyn S. Arellano
Head, Materials Management
and Procurement Services
Department
Geossiel A. Cotoco
Deputy General Counsel
48 | PSE 2012 ANNUAL REPORT

Securities Clearing Corporation of the Philippines Capital Markets Integrity Corporation

Board of Directors & Officers Board of Directors & Officers

Front Row: Jose T. Pardo, Chairman-Independent Director, Hans B. Sicat, President and Chief Executive Officer, Director From Left to Right: Dakila B. Fonacier, Director, Antonio Garcia, Jr., President and Chief Executive Officer, Jose Luis S. Javier, Chairman,
Top row (from left to right) Francis Chua, Director, Cornelio T. Peralta, Independent Director, Alejandro T. Yu, Director, Anabelle Lim-Chua, Director, Alfonso B. Cruz, Director, Cornelio T. Peralta, Director Not in picture: Nestle C. Lizardo, Corporate Secretary
Eddie T. Gobing, Director, Amor C. Iliscupidez, Director, Jose Luis S. Javier, Independent Director, Dakila B. Fonacier, Director,
Emmanuel O. Bautista, Director, Aissa V. Encarnacion, Corporate Secretary, Omelita J. Tiangco, Treasurer, Renee D. Rubio, Chief Operating Officer
50 | PSE 2012
ANNUAL REPORT
Reports of
SECURITIES CLEARING
Subsidiaries
CORPORATION
OF THE PHILIPPINES
The Securities Clearing Corporation of
the Philippines (SCCP), a wholly-owned
subsidiary of the Philippine Stock Exchange,
Inc. (PSE), enjoyed another record year with
net income after tax of P235.52 million, a 47
percent increase over the previous year’s net
income of P160.63 million. The service fees
earned by SCCP increased by 25 percent to
P316.38 million from P254.03 million in 2011. The
bullish investment climate in 2012 resulted in a
27.1 percent increase in average daily value turnover
of equity investments, from P5.71 billion in 2011
to P7.26 billion in 2012. Combined with SCCP's
continued prudent expense management, all
bode well for its financial results.
Dividend declaration
On March 21, the SCCP Board declared cash dividends of P20
million to stockholders of record as of March 31 which were paid
on April 10. This was in addition to the cash dividends amounting
to P140 million which were approved by the SCCP Board during
its meeting on December 14, 2011 and paid on March 7 to
stockholders of record as of December 31, 2011.
On December 12, the SCCP Board of Directors declared cash
dividends amounting to P200 million to stockholders of record as
of December 31 payable on March 8, 2013.
Extended Operating Hours due to the Extended Trading Hours
In line with the implementation of the extended trading
hours up to 3:30PM effective January 2, SCCP extended
the availability of its central clearing and settlement system
(CCCS) to its clearing members from 6:00PM to 7:00PM
to give enough time for the processing of the trade file and
for the clearing members to be able to view their collateral
requirement messages and generate reports. As a result,
the end-of-day (EOD) processing and reconcilement with the
Philippine Depository & Trust Corp. was also adjusted to start
at 7:00PM instead of 6:00PM and to end between 7:45PM
and 8:00PM.
Clearing and Settlement Operations
Clearing members continued to strictly
adhere to the 12:00NN settlement
deadline, achieving a compliance rate
of 99.98 percent and 99.97 percent
for the delivery of cash and securities
obligations, respectively, which was an
improvement over the previous year. There
were no overnight settlement fails during
the year. The average time that SCCP
released due broker entitlements, both
cash and securities, likewise improved
during 2012 as these were released by
12:44PM on the average, as compared
to 12:50PM in the previous year. This
in turn enabled clearing members to
release cash and securities entitlements
earlier to their investors.
Additional Settlement Banks
The SCCP Board of Directors approved
the request of three banks to undergo
the accreditation process for becoming
a settlement bank of SCCP. These banks
are HSBC, Maybank Philippines Inc. and
UnionBank of the Philippines. The process
of accreditation entails the applicant
bank undergoing a rigid technical testing
process as well as the submission of the
required documentation by the applicant
banks to SCCP. This brings to seven the
total number of settlement banks of SCCP.
The four previously-accredited settlement
banks are BDO Unibank, Deutsche Bank,
Metropolitan Bank and Trust Co. and Rizal
Commercial Banking Corporation.
Settlement banks are needed in the clearing
and settlement process since SCCP is not
a bank, and clearing members will need to
course their cash payments or receive their
cash entitlements through an accredited
settlement bank. Likewise, clearing
members who choose to collateralize their
negative exposures through cash collateral
will need to open cash collateral accounts
with their designated settlement bank.
Rules and Operating Procedures
Governing Settlement Restrictions
The SCCP Board of Directors approved
management’s proposed rules and
operating procedures for settlement
restrictions to be imposed on trades of a
particular issue or issues, referred to as
“Identified Security or Securities”, if such
identified security or securities are the
subject of unusual trading activities or are
determined to be excessively volatile or
risky, and on such other cases which would
justifiably warrant settlement restrictions.
Likewise, the SCCP Board of Directors
approved the imposition of settlement
restrictions on the trades of particular
clearing member or members, referred to as
“identified clearing member or members."
The settlement restrictions may be imposed
under any of the following circumstances:
a. If the identified clearing member has
been determined by the CMIC as having
engaged in unusual trading activities or
possible trading-related irregularities as
provided for under Article XI of the CMIC
rules on trading irregularities;
b. When SCCP deems that the trades of
an identified clearing member will pose
undue risk to the clearing fund; and
c. Such other instances that will affect the
identified clearing member’s ability to
continue to carry out its responsibilities
and obligations to SCCP as a clearing
member.
The settlement restrictions may be in the
form of:
i. Early delivery of securities ,in the case of
net selling brokers;
ii. Early delivery of cash ,in the case of net
buying brokers;
iii. Delivery of 100 percent cash collateral
should the securities not be available for
early delivery; or
iv. Such other settlement restrictions as
may be deemed necessary by the SCCP
Board of Directors.
The rules prohibit an identified clearing
member from coursing its transactions
through another trading participant (done-
through’s) to circumvent the early delivery
requirement. Clearing members found to
be violating any of the rules on settlement
restrictions shall be subject to penalties.
The rules and operating procedures
governing settlement restrictions are
subject to the approval of the Securities
and Exchange Commission (SEC).
Revision to Rules and Operating
Procedures on SCCP’s Fails
Management System
During its meeting held on June 28, the
SEC approved the following amendments
to SCCP’s Rules and Operating Procedures
governing the Fails Management System
The revisions are summarized as follows:
1. Should a clearing member be
suspended due to its failure to settle
its cash or securities obligation, the
notice of suspension of the clearing
member shall be published by SCCP on
the electronic board as well as on the
website of the PSE.
2. SCCP management, at its discretion,
may accept cash as collateral no later
than 5:00PM on T+3 upon failure by a
clearing member to deliver securities for
reasons beyond the clearing member’s
control. The defaulting clearing member
shall be given until 10:00AM of the
following trading day within which to
deliver the securities or face suspension.
In case of failure to deliver the securities
upon the lapse of the deadline, SCCP
management is authorized to use the
cash submitted as collateral to purchase
securities during the buy-in process.
3. The commission approved the reduction
of the penalty fee for late cash or
securities settlements made after
the 12:00NN deadline but no later
than 2:00PM on the same day from
previously P1,000 + ¼ of 1 percent or
0.0025 of the cash fail or securities fail
to P1,000 + 1/8 of 1 percent or 0.00125
of the value of the cash fail or securities
fail. The penalty for settlement fails
made after 2:00PM on settlement date
or not made at all remains unchanged
at P1,000 + ¼ of 1 percent or 0.0025 of
the value of the cash or securities fail.
The complete wording of the revised
penalty fee for late settlements can be
found in Annex 7: Schedule of Fees,
Fines and Penalties of the SCCP Rules
posted in the PSE website.
Upgrade of the CCCS Web Servers
In line with the objective of improving the
accessibility of SCCP’s Central Clearing and
Central Settlement (CCCS) system to the
clearing members, SCCP worked with the
PSE Technology Division for the upgrade of the
web servers of CCCS. Phase 1 of the project
was completed last December 2011 with the
purchase and migration of two servers for
the production site. Phase 2 of the project
which involved the purchase and migration of
two more servers for the disaster recovery
site was completed and deployed last
March 16.
Depository Project
On February 4, 2013, the SEC resolved to
grant a provisional license to SCCP to
operate as a securities depository subject to
several conditions. SCCP’s depository model
is a multi-depository framework which will
allow several entities to perform depository
functions in the same market. However,
since the clearing and settlement system is
designed such that a security can reside in
only one depository, issuers have to select
the depository where all its shares will be
lodged.
The SCCP will be able to provide the
equities market participants with a central
system performing both the depository and
clearing and settlement functions that would
enable an end-to-end processing of equities
trades. The integration of the clearing and
depository functions within the SCCP will
result in seamless electronic connectivity
between the settlement, clearing, and
depository processes and help minimize
the risks attendant to the current back and
forth transmission of data and procedures
between the clearing and settlement house
and the depository. SCCP depository offers
to reduce friction costs of its depository
participants through lower depository
maintenance fees and securities transfer
transaction fees.
PSE’s Trade Amendment System Project
In line with the project of the Exchange
to enable trading participants to execute
their own requests for amendments,
SCCP actively participated in the series
of testing facilitated by the PSE Market
Operations Division to ensure the integrity
and correctness of the trade file provided to
SCCP. The tail end of the testing consisted of
SCCP providing the trading participants with
their amended obligation reports.
SCCP’s Contribution to the Clearing
and Trade Guaranty Fund
In order to demonstrate its commitment as a
central counterparty to all PSE trades, SCCP
has appropriated P30 million of its retained
earnings as its contribution to the Clearing
and Trade Guaranty Fund. The use of the
funds will be restricted to the settlement
of trade obligations of defaulting clearing
members.
52 | PSE 2012 ANNUAL REPORT
CAPITAL
MARKETS
INTEGRITY
CORPORATION
The Capital Markets Integrity Corporation
(CMIC) was incorporated on March 14, 2011 for
the purpose of enhancing market integrity and
transparency with the end in view of enhancing the
confidence of the investing public in the country’s
capital markets.
The primary purpose of CMIC is to function as the independent
audit, surveillance and compliance unit separate from the
Philippine Stock Exchange, Inc. (PSE).
With marching orders from the PSE Board of Directors to spin-
off the functions of its former Market Regulation Division, CMIC
proceeded to organize an autonomous office that would eventually
be granted a temporary Self Regulatory Organization (SRO) status
on February 2 by the Securities and Exchange Commission (SEC).
On March 14, the SEC authorized CMIC to discharge its functions.
CMIC became fully operational in 2012. The Total Market
Surveillance System (TMS), which was customized to be responsive
to Philippine stock market conditions, was launched on May 8. On
the same occasion, PSE turned over to CMIC its regulatory functions
in a ceremony witnessed by, among others, SEC Chairperson
Teresita Herbosa and other SEC officials.
Bell ringing ceremony to mark the CMIC's launch of the Total Market Surveillance System
A complement of auditors, lawyers,
Behind the
surveillance and IT personnel were deployed
to perform their assigned tasks. In the
process, 174 instances of spot audit were
conducted and 84 trading participants were
subjected to regular audit of which 35 were
penalized. numbers
There were 10 cases of investor complaints
and surveillance cases which were resolved.
On the other hand, 11 cases involving Issuers
and beneficial owners were processed by
CMIC’s Investigation and Enforcement
Department and endorsed to SEC for further
investigation, one of which resulted to a
criminal case filed by the SEC with the
Department of Justice for market manipulation
under the Securities Regulation Code.
All personnel of CMIC are imbued with
CMIC’s values and core standards so that
they are constantly made aware to perform
their duties within CMIC’s ethical and legal
parameters. As professed in the Code of
Ethics, “CMIC shall carry out its mandate
without fear or favor. It shall do so equitably
and fairly, conscious of the important role
played by the trading participants to instill
confidence in the marketplace.”
Thus, the average rule violation committed
has been reduced to one violation per trading
participant from three violations early in
the year. Another welcome statistic is the
reduction in the number of trading participants
subjected to spot audit by 80 percent.
CMIC recognizes the indispensable
contribution of its management and staff in
the fulfillment of CMIC’s mandate, as well as
its Board of Directors for guiding the company
to the right path towards the promotion of
integrity and independence in the Philippine
market. 
Indeed, it would be a mark of success for
CMIC if there comes a time when there
would be no penalties imposed on trading
participants because no rule violations are
being committed. This would mean that
CMIC has done its job as a regulator and
accomplished the duty that it has been tasked
to do. With this goal in mind, CMIC continues
to work towards a more progressive and
dynamic capital market industry.
 Market information
Market for Issuers Common Equity and
Related Stockholder Matters
Principal market where the registrant’s
common equity is traded:
The common stock of the Company is listed in
The Capital Markets Integrity Corporation
The Philippine Stock Exchange, Inc.
(CMIC) is another wholly-owned PSE
subsidiary. It functions as the independent
Stock Prices
audit, surveillance and compliance unit of
2012 High Low
P7.00 in 2012 – broken down as P2.95
regular dividend and P4.05 special cash
Q1 P500.00 P232.20 dividend to stockholders of record as of
Q2 P385.00 P342.00 March 29, 2012 payable on April 18, 2012.
Q3 P397.00 P349.60
Dividend Policy
Q4 P425.00 P365.00
The Company adopts a policy for the
The highest and lowest prices of the
declaration of regular cash dividend out of
Company’s shares during the year were
the unrestricted retained earnings equivalent
P500.00 and P232.20, respectively. The
to 50 percent of the Company’s audited
stock price of the Company closed at
net income. The declaration of dividends is

Information the Company, having taken over the Market

Regulation Division of the Company. CMIC
operates to ensure the integrity of the capital
The high and low prices of the Company’s
shares in the stock exchange for each quarter of
P451.00 on April 12, 2013.

Holders
dependent on the cash flow and financial
condition of the Company.

required by
fiscal years 2011 and 2012 are as follows:
market and has jurisdiction to investigate all
Recent Sale of Unregistered/Exempt
violations of the Securities Regulation Code The number of shareholders of record
2011 High Low Securities
and CMIC Rules by Trading Participants, as of April 12, 2013 is 268. Total shares

the Securities and investigate trading-related irregularities

and unusual trading activities committed
by Issuers. The SEC granted CMIC its
Q1 P201.50 P170.00
outstanding as of April 12, 2013 is
61,058,721 shares with a par value of
The common shares granted to eligible
employees pursuant to the Employee Stock

Regulation Code
Q2 P269.75 P187.50 P1.00.
Purchase Plan is an exempt transaction
authority to operate as the independent Q3 P264.00 P204.80 under Section 10.2 of the Securities
audit, surveillance and compliance unit of Dividends
Q4 P245.00 P215.00 Regulation Code, as stated under Resolution
the Company with provisional self-regulatory
No. 179 Series of 2008 of the Securities and
organization status on February 2, 2012. Dividends per Share:
Exchange Commission.
General Nature and Scope of Business P20.00 in 2008.
of Registrant and Its Subsidiaries The Company is also a shareholder of P8.00 in 2009.
the Philippine Dealing System Holdings P10.00 in 2010.
The Philippine Stock Exchange, Inc. (PSE or Company) was Corporation (PDSHC), the holding company P12.00 in 2011.
incorporated on July 14, 1992 as a non-stock corporation. The of the Philippine Dealing & Exchange
Company became a stock corporation on August 3, 2001. On Corporation (PDEX), otherwise known
December 15, 2003, pursuant to the demutualization mandate as the Fixed Income Exchange (FIE), the
of Republic Act No. 8799, or the Securities Regulation Code, Philippine Depository & Trust Corp. (PDTC)
the Company’s outstanding capital stock was listed by way of and the Philippines Securities Settlement
introduction. On February 18, 2004, the Company sold 6,077,505 Corporation (PSSC). As of December 31, The top 20 holders as of 5 April 2013 are as follows:
shares from its unissued stock to five strategic investors by way 2010, the Company is a stockholder of
of private placement that was approved by the Securities and record of 1,311,439 shares, or 20.98%, of all
Exchange Commission. The strategic investors were the PLDT of the issued and outstanding shares. Stockholder Nationality No. of Shares Amount Percentage
Beneficial Trust Fund, SMC Retirement Fund, Government 1 PCD Nominee Corp. Filipino 40,023,277 40,023,277.00 65.51%
Service Insurance System, Kim Eng Investment, Ltd., and Properties
2 San Miguel Corporation Retirement Plan Filipino 6,296,000 6,296,000.00 10.31%
KE Strategic Pte. Ltd.
The Company is the registered owner of 3 The First Resources Management and Securities Corp. Filipino 5,833,250 5,833,250.00 9.55%
The Company’s revenues are primarily derived from listing- offices at the PSE Centre in Ortigas Center, 4 PCD Nominee Corp. Other Alien 4,299,864 4,299,864.00 7.04%
related fees. The Company charges listing fees for initial Pasig City, and the PSE Plaza along Ayala
5 G.D. Tan & Company Inc. Filipino 201,800 201,800.00 0.33%
public offerings and additional listings, and for annual listing Avenue, Makati City.
maintenance. Other sources of revenue are membership, 6 Ansaldo Godinez & Company, Inc. Filipino 200,000 200,000.00 0.33%
transaction, data feed, and miscellaneous fees, which include In addition, over a seven-year period 7 Apex Phils. Equities Corporation Filipino 200,000 200,000.00 0.33%
service fees. Membership and transaction fees are charged to beginning January 2005, the outstanding
trading participants while data feed fees are collected from data shares of Crescent West Development 8 BDO Securities Corporation Filipino 200,000 200,000.00 0.33%
vendors. Corporation (CWDC), a subsidiary of Fort 9 Christfund Securities (Phils.), Inc. Filipino 200,000 200,000.00 0.33%
Bonifacio Development Corporation (FBDC) 10 DBS Vickers Securities (Phils.), Inc. Filipino 200,000 200,000.00 0.33%
Subsidiary and Affiliates and the registered owner of a 2,182 square
meter lot in Bonifacio Global City, will be 11 Deutsche Regis Partners, Inc. Filipino 200,000 200,000.00 0.33%
The Securities Clearing Corporation of the Philippines (SCCP) is a transferred to the Company. In June 2007, 12 FEB Stock Brokers, Inc. Filipino 200,000 200,000.00 0.33%
wholly-owned PSE subsidiary organized primarily as a clearance, the donation of all remaining CWDC shares
13 Goldstar Securities, Inc. Filipino 200,000 200,000.00 0.33%
settlement and depository agency for SCCP-eligible trades was deferred pending negotiations among
executed through the facilities of the PSE. SCCP is responsible the Company, FBDC and Ayala Land, Inc. for 14 Highland Securities Phils., Inc. Filipino 200,000 200,000.00 0.33%
for (a) synchronizing the settlement of funds for transactions of the joint development of an office building 15 HSBC Securities (Philippines) Inc. Filipino 200,000 200,000.00 0.33%
clearing members and the transfer of securities through Delivery in Bonifacio Global City for the relocation of
16 Chan, Vicky L. Filipino 200,000 200,000.00 0.33%
versus Payment (DVP) clearing; (b) the administration of the Clearing the Company’s headquarters, management
and Trade Guaranty Fund (CTGF) and guaranteeing the settlement of offices and unified operations in equities and 17 Chia Kim Teck Singaporean 200,000 200,000.00 0.33%
trade through the implementation of its Fails Management System securities for the National Capital Region. 18 Chilip, Christopher L. Filipino 200,000 200,000.00 0.33%
in the event of a Trading Participant’s default; and (c) performance The Company provisionally approved the
19 Chong, Jose Filipino 200,000 200,000.00 0.33%
of Risk Management and Monitoring to ensure final and irrevocable relocation of its headquarters and offices to a
settlement. Recently, the SEC provisionally granted SCCP the license to new building located at Bonifacio Global City 20 Cruz, Ismael G. Filipino 200,000 200,000.00 0.33%
operate a depository. to be developed by Ayala Land, Inc.

REPORT OF
THE AUDIT
COMMITTEE
The Audit Committee is the body tasked with assisting the Board
of Directors in the performance of its supervision and control over
the Exchange’s financial reporting process, system of internal
controls, audit process, and monitoring of the Exchange’s
compliance with applicable laws, rules and regulations. The
Audit Committee directly exercises oversight authority over
the Exchange’s financial management functions, as well as
oversight and direct interface functions with the Exchange’s
internal and external auditors. It is composed of six members and
chaired by an independent director.
In accordance with the mandate of the Audit Committee, the
Committee confirms that:
The Committee had a total of 15 meetings during the year, in
which a majority of the members were present; The Committee
recommended to the Board of Directors the reappointment
of SGV & Co. to act as the Exchange’s independent external
auditor for the year 2012, after an evaluation of their qualifications
and past performance, and taking into consideration the
recommendation of management;
The Committee reviewed and approved the audit scope and
approach of SGV & Co., assessed their performance in relation to
their engagement, and approved all audit services rendered for
2012, including the related fees for such services after concluding
that such services do not impair their independence;
The Committee approved the creation of an in-house internal
audit group, discussed and approved the scope, frequency
April 10, 2013.
Cornelio T. Peralta Anabelle L. Chua Dakila Fonacier
Committee Chairman Member Member
Amor C. Iliscupidez Eusebio H. Tanco Alejandro T. Yu
Member Member Member
and audit plan of the Exchange’s
internal auditors, reviewed the reports
and recommendations of the internal
auditors, which were based on a
comprehensive and detailed review of
the Exchange’s operations, including the
information technology area and the new
trading system PSEtrade, and ensured
communication to management for
appropriate and timely corrective action;
The Committee reviewed and discussed
with management and SGV & Co. the
annual consolidated financial statements
of the Exchange, and its subsidiaries, the
Securities Clearing Corporation of the
Philippines and the Capital Market Integrity
Corporation, as of December 31, 2012,
before submission to the Board.
These activities were performed in the
following context:
Management retains primary responsibility
for the financial statements and reporting
process of the Exchange; SGV & Co. is
responsible for expressing an opinion on
the conformity of the Exchange’s annual
audited consolidated financial statements
with Philippine Financial Reporting
Standards.
In keeping with the mandate of the Audit
Committee, and based on the reviews and
discussions undertaken, the Committee
recommended to the Board of Directors
of the Exchange (i) the inclusion of the
Exchange‘s audited consolidated financial
statements as of December 31, 2012 in
the Annual Report to the Stockholders and
(ii) the filing of the audited consolidated
financial statements with the Securities
and Exchange Commission.
 SyCip Gorres Velayo & Co. SyCip Gorres Velayo & Co.
6760 Ayala Avenue 6760 Ayala Avenue
1226 Makati City 1226 Makati City
Philippines Philippines
Phone: (632) 891 0307 Phone: (632) 891 0307
Fax: (632) 819 0872 Fax: (632) 819 0872
www.sgv.com.ph www.sgv.com.ph
-2-
BOA/PRC Reg. No. 0001, BOA/PRC Reg. No. 0001,
December 28, 2012, valid until December 31, 2015 December 28, 2012, valid until December 31, 2015
SEC Accreditation No. 0012-FR-3 (Group A), SEC Accreditation No. 0012-FR-3 (Group A),
November 15, 2012, valid until November 16, 2015 November 15, 2012, valid until November 16, 2015
The Stockholders and the Board of Directors Opinion
The
The Philippine Stock
Stockholders andExchange,
the BoardInc.
of Directors
PSE Plaza, Ayala
The Philippine Triangle
Stock Exchange, Inc. In our opinion, the consolidated financial statements present fairly, in all material respects, the financial
Ayala Avenue,
PSE Plaza, AyalaMakati City
Triangle position of The Philippine Stock Exchange, Inc. and Subsidiaries as at December 31, 2012 and 2011, and
Ayala Avenue, Makati City their financial performance and their cash flows for each of the three years in the period ended December
31, 2012 in accordance with Philippine Financial Reporting Standards.

We have audited the accompanying consolidated financial statements of The Philippine Stock Exchange,
Inc. and Subsidiaries,
We have which comprise
audited the accompanying the consolidated
consolidated balance
financial sheets of
statements asThe
at December
Philippine 31, 2012
Stock and 2011,
Exchange, SYCIP GORRES VELAYO & CO.
and the
Inc. and consolidated
Subsidiaries, statements of comprehensive
which comprise income,
the consolidated statements
balance ofat
sheets as changes
Decemberin equity and and 2011,
31, 2012
statements
and of cash flows
the consolidated for eachofofcomprehensive
statements the three yearsincome,
in the period endedofDecember
statements changes in 31, 2012,
equity and a
and
summary
statementsofof
significant
cash flowsaccounting policies
for each of and years
the three other in
explanatory
the periodinformation.
ended December 31, 2012, and a
summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements Belinda T. Beng Hui
Management’s Responsibility for the Consolidated Financial Statements Partner
Management is responsible for the preparation and fair presentation of these consolidated financial CPA Certificate No. 88823
statements
Management inisaccordance
responsiblewith Philippine
for the Financial
preparation and Reporting Standards,
fair presentation and for
of these such internal
consolidated control as
financial SEC Accreditation No. 0943-A (Group A),
management
statements indetermines
accordanceiswith
necessary to enable
Philippine theReporting
Financial preparation of consolidated
Standards, and forfinancial statements
such internal controlthat
as March 18, 2010, valid until March 17, 2013
are free from material misstatement, whether due to fraud or error.
management determines is necessary to enable the preparation of consolidated financial statements that Tax Identification No. 153-978-243
are free from material misstatement, whether due to fraud or error. BIR Accreditation No. 08-001998-78-2012,
Auditors’ Responsibility June 19, 2012, valid until June 18, 2015
PTR No. 3669663, January 2, 2013, Makati City
Auditors’ Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audits.
We March 13, 2013
Our conducted ourisaudits
responsibility in accordance
to express with
an opinion on Philippine Standardsfinancial
these consolidated on Auditing. Thosebased
statements standards require
on our audits.
that we comply with ethical requirements and plan and perform the audit to obtain reasonable
We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require assurance
about
that wewhether
complythewithconsolidated financial statements
ethical requirements and plan andareperform
free from
thematerial
audit tomisstatement.
obtain reasonable assurance
about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial
An audit involves statements.
performing The procedures
procedures selected
to obtain audit depend
evidence on the
about theauditor‟s
amounts judgment, including
and disclosures in the
the assessment
consolidated of thestatements.
financial risks of material
The misstatement of the consolidated
procedures selected depend on the financial statements,
auditor‟s judgment, whether
includingdue
to
thefraud or error.ofInthe
assessment making those
risks of risk assessments,
material misstatement the auditor
of the considersfinancial
consolidated internal statements,
control relevant to thedue
whether
entity‟s
to fraud preparation
or error. In and fair presentation
making of the consolidated
those risk assessments, the auditorfinancial statements
considers internalincontrol
order to designtoaudit
relevant the
procedures that are and
entity‟s preparation appropriate in the circumstances,
fair presentation but notfinancial
of the consolidated for the purpose of expressing
statements in order toan opinion
design on
audit
the effectiveness
procedures that areof appropriate
the entity‟s ininternal control. An audit
the circumstances, alsofor
but not includes evaluating
the purpose the appropriateness
of expressing an opinion onof
the effectiveness of the entity‟s internal control. An audit also includes evaluating the appropriateness ofas
accounting policies used and the reasonableness of accounting estimates made by management, as well
evaluating
accountingthe overall
policies presentation
used of the consolidated
and the reasonableness financial estimates
of accounting statements.made by management, as well as
evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.

A member firm of Ernst & Young Global Limited

A member firm of Ernst & Young Global Limited

 December 31 Years Ended December 31
2012 2011 2012 2011 2010
ASSETS
REVENUES
Current Assets Listing-related fees:
Cash and cash equivalents (Notes 4, 5 and 6) =
P 1,051,355,197 =
P 1,041,644,459 Listing =
P 356,741,822 =
P 234,786,035 =
P 230,624,139
Financial assets at fair value through profit or loss Listing maintenance 203,398,245 193,553,103 169,422,761
(Notes 4, 5 and 7) 274,585,220 207,881,747 Processing 1,900,000 950,000 1,840,000
Short-term available-for-sale investments (Notes 4, 5 and 8) – 42,342,741 Service fees (Note 25) 316,376,987 254,034,164 215,604,239
Receivables (Notes 4, 5 and 9) 87,089,598 72,441,797 Trading-related fees (Note 25):
Other current assets 25,402,349 33,198,310 Transaction 101,279,075 120,029,889 97,486,442
Total Current Assets 1,438,432,364 1,397,509,054 Block sales 30,632,267 22,229,243 23,251,314
Data feed 50,314,730 45,600,353 38,633,431
Noncurrent Assets Subscription 16,469,264 14,996,700 16,658,219
Long-term available-for-sale investments (Notes 4, 5 and 8) 327,847,291 167,407,020 Regulatory fees 45,259,770 – –
Property and equipment (Note 10) 498,382,519 520,108,725 Other revenues (Notes 25 and 29) 21,415,136 14,584,415 28,931,365
Investment in an associate (Note 11) 211,518,573 172,745,546 1,143,787,296 900,763,902 822,451,910
Retirement asset (Note 23) 9,308,988 7,666,168
Deferred tax assets - net (Note 22) 6,268,915 9,149,513 COST AND EXPENSES
Other noncurrent assets (Notes 4, 5 and 12) 33,366,945 11,025,035 Cost of services (Note 18) 176,954,411 167,795,456 130,727,295
Total Noncurrent Assets 1,086,693,231 888,102,007 General and administrative expenses (Note 19) 328,179,753 272,797,542 276,467,823
505,134,164 440,592,998 407,195,118
=
P 2,525,125,595 =
P 2,285,611,061
OTHER INCOME (EXPENSES)
Interest income (Note 17) 54,770,920 59,761,719 78,593,045
LIABILITIES AND EQUITY
Equity in net income of an associate
Current Liabilities (Note 11) 38,773,027 30,064,062 26,581,660
Accounts payable and other current liabilities (Notes 4, 5 and 13) =
P 176,027,968 =
P 159,547,623 Mark-to-market gain on financial assets at fair value
Income tax payable 31,454,623 45,456,302 through profit or loss (Note 7) 65,108,656 7,415,146 –
Deferred fees and others (Note 14) 33,419,693 23,321,548 Dividend income 5,115,543 2,010,485 31,200
Gain on sale of available-for-sale investments (Note 8) – – 36,947,135
Total Current Liabilities 240,902,284 228,325,473
163,768,146 99,251,412 142,153,040
Noncurrent Liability
Retirement liability (Note 23) 9,524,520 7,212,481 INCOME BEFORE INCOME TAX 802,421,278 559,422,316 557,409,832

EQUITY PROVISION FOR INCOME TAX (Note 22) 178,255,144 153,230,159 139,912,541
Capital stock (Notes 1 and 16) 61,258,130 61,208,733
Additional paid-in capital (Notes 1, 16 and 28) 1,038,100,114 1,018,810,564 NET INCOME 624,166,134 406,192,157 417,497,291
Treasury stock (Note 16) (68,000,012) (68,000,012)
Retained earnings (Note 16): OTHER COMPREHENSIVE INCOME
Unappropriated 771,459,300 574,354,178 Net unrealized gain (loss) on available-for-sale investments
Appropriated 71,000,000 71,000,000 (Note 8) 8,181,615 (11,157,082) (25,516,750)
Donated capital (Note 15) 387,637,585 387,637,585
Net unrealized gains on available-for-sale investments TOTAL COMPREHENSIVE INCOME =
P 632,347,749 =
P 395,035,075 =
P 391,980,541
(Note 8) 13,243,674 5,062,059
Total Equity 2,274,698,791 2,050,073,107 Basic/Diluted Earnings Per Share (Note 24) =
P 10.23 =
P 6.65 =
P 6.83
=
P 2,525,125,595 =
P 2,285,611,061
See accompanying Notes to Consolidated Financial Statements.
See accompanying Notes to Consolidated Financial Statements.
 (5)
(427,061,012)

(11,157,082)

(366,052,356)

(25,516,750)

(304,550,060)
P 1,915,414,603
P 2,021,090,393
406,192,157

395,035,075

P 2,050,073,107

417,497,291

391,980,541
18,245,309

P 2,021,090,393
P 2,050,073,107
624,166,134
8,181,615
632,347,749
19,338,947

P 2,274,698,791
Total

–
=

=
=

=
Years Ended December 31

(Note 8)

(11,157,082)
(11,157,082)

(25,516,750)
(25,516,750)
Net Unrealized
Gain on

Investments

P 16,219,141

P 5,062,059

P 41,735,891

P 16,219,141
P 5,062,059

8,181,615
8,181,615

P 13,243,674
for-Sale

–
–

–
–
–

–
–
Available
2012 2011 2010
CASH FLOWS FROM OPERATING ACTIVITIES
Income before income tax =
P 802,421,278 =
P 559,422,316 =
P 557,409,832

=
=

=
=
Adjustments for:
Depreciation (Notes 10, 18 and 19) 77,327,729 75,117,275 52,998,347
Interest income (Note 17) (54,770,920) (59,761,719) (78,593,045)

(Note 15)

P 387,637,585

P 387,637,585

P 387,637,585

P 387,637,585
Donated

P 387,637,585
–
–
–
–
–
P 387,637,585

–
–
–
–
–
–

–
–
–
–
–
Capital Dividend income (5,115,543) (2,010,485) (31,200)
Equity in net income of an associate (Note 11) (38,773,027) (30,064,062) (26,581,660)
Retirement expense (Note 23) 20,736,146 16,587,999 10,824,369

=
=

=
Mark-to-market gain on financial assets at fair
value through profit or loss (Note 7) (65,108,656) (7,415,146) –
Amortization of computer software (Note 12) 3,388,474 5,108,493 5,085,741
Retained Earnings

(Note 16)

P 71,000,000

P 71,000,000

P 71,000,000

P 71,000,000
P 71,000,000
–
–
–
–
–
P 71,000,000

–
–
–
–
–
–

–
–
–
–
–
Appropriated

Gain on sale of available-for-sale investments – – (36,947,135)

Loss (gain) on disposal of property and equipment – – 291,688
Loss on asset write-off (Note 12) – – 13,692,355

=
=

=
Share-based payment expense (Note 28) 2,560,331 – 6,463,639
Recovery of impairment losses (Notes 8 and 9) – (2,206,760) (9,000)
(427,061,012)
(Note 16)

(366,052,356)
(30,504,363)

(304,550,060)
–

P 564,718,740
406,192,157

406,192,157

P 574,354,178

P 451,771,509
417,497,291

417,497,291

P 564,718,740
P 574,354,178
624,166,134

624,166,134

P 771,459,300

–
Unappropriated

Income before working capital changes 742,665,812 554,777,911 504,603,931

Changes in operating assets and liabilities:
Decrease (increase) in:
Receivables (15,427,744) 5,597,673 (64,354,370)
=

=
=

Other current assets 7,795,961 (12,789,688) (1,763,726)

Increase (decrease) in accounts payable and other current
(Note 16)

(5)
=68,000,012)

=68,000,012)

P 68,000,007)

P 68,000,012)

P 68,000,007)

P 68,000,007)
Treasury
Stock

–
–
–
–
–

–
–
–

–
–

–
–
–
–
–
liabilities 24,989,239 (12,803,861) 58,646,175
Cash generated from operations 760,023,268 534,782,035 497,132,010
Interest received 55,550,863 71,861,438 112,974,745
(=

(=

(=

(=
(P

(P

Income taxes paid (191,770,405) (159,179,824) (116,244,171)

Benefits paid (Note 23) (971,080) (7,453,588) (745,767)
16 and 28)

Cash provided by operating activities 622,832,646 440,010,061 493,116,817

(Notes 1,

18,195,951
P 1,018,810,564

P 1,018,810,564

P 1,000,614,613

P 1,018,810,564
P 1,018,810,564
–
–
–
19,289,550
–
P 1,038,100,114
Additional
Paid-in

–
–
–
–
–
–

–
–
–

–
Capital

CASH FLOWS FROM INVESTING ACTIVITIES

Proceeds from sale/maturities of:
Available-for-sale investments 42,433,802 826,243,352 477,404,381
=

6,289,670
=

Property and equipment 12,419,885 4,126,914

Acquisitions of:
(Notes 1 and 16)

49,358
P 30,704,370

30,504,363
P 61,208,733

P 30,655,012

P 30,704,370
P 61,208,733
Capital Stock

–
–
–

P 61,258,130
49,397
–

–
–
–
–
–

–
–
–

Available-for-sale investments (Note 8) (149,955,537) (82,523,235) (504,230,452)

See accompanying Notes to Consolidated Financial Statements.

Financial assets at fair value through profit or loss (1,594,817) (200,466,601) –

Property and equipment (Note 10) (61,891,198) (37,329,088) (118,549,865)
=

=
=

Computer software (Note 12) (24,637,095) – (13,770,880)

Decrease (increase) in other noncurrent assets (1,093,284) 58,186,479 (34,291,223)
Dividends received 5,115,543 2,010,485 31,200
Contribution to plan assets (Note 23) (20,066,927) – (22,117,243)
Net cash provided by (used in) investing activities (205,399,843) 578,541,277 (211,397,168)
Balances at December 31, 2010
Balances at December 31, 2012

Balances at December 31, 2011

CASH FLOWS FROM FINANCING ACTIVITIES

Balances at January 1, 2012

Balances at January 1, 2011

Balances at January 1, 2010

Acquisition of treasury stock
Other comprehensive income

Other comprehensive income

Other comprehensive income

Total comprehensive income

Total comprehensive income

Total comprehensive income

Proceeds from share-based payments (Note 28) 19,338,947 – 18,245,309

Acquisition of treasury stock (Note 16) – (5) –
Share-based payments

Share-based payments

Dividend payments (Note 16) (427,061,012) (366,052,356) (304,550,060)

Stock dividends

Net cash used in financing activities (407,722,065) (366,052,361) (286,304,751)

Cash dividends

Cash dividends

Cash dividends
Net income

Net income

Net income

NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 9,710,738 652,498,977 (4,585,102)
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,041,644,459 389,145,482 393,730,584
CASH AND CASH EQUIVALENTS AT END OF YEAR =
P 1,051,355,197 =
P 1,041,644,459 =
P 389,145,482

See accompanying Notes to Consolidated Financial Statements.


1. Corporate Information
The Philippine Stock Exchange, Inc. (the Parent Company or the Exchange) was incorporated in the
Philippines on July 14, 1992 as a non-stock corporation primarily to provide and maintain a convenient and
suitable market for the exchange, purchase and sale of all types of securities and other instruments.
On August 8, 2001, the Parent Company was converted from a non-stock corporation to a stock
corporation (demutualization) with an authorized capital stock of =36.8
P million divided into 36.8 million
shares with a par value of =1.00
P per share as prescribed by Republic Act (RA) No. 8799 entitled
“Securities Regulation Code” (SRC) and pursuant to a conversion plan approved by the Securities and
Exchange Commission (SEC).
2.
The salient features of the demutualization plan approved by the SEC on August 3, 2001 include, among
others, the following:
a. Conversion of the Parent Company into a stock corporation by amending its Articles of Incorporation
and by-laws;
b. Subscription of each member of 50,000 shares at =1.00
P per share. The remaining balance of the
Membership Contributions account of =277.4
P million shall be treated as additional paid-in capital;
c. Issuance of trading rights to brokers in recognition of the existing seat ownership by the brokers;
d. Separation of ownership of shares and right to operate as a trading participant in the Exchange. The
trading rights shall be transferable without time limitation; and
e. Imposition of a moratorium on the issuance of the new trading rights.
On December 15, 2003, 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, particularly the conversion of
the Parent Company into a stock corporation.
On January 28, 2004, the Parent Company offered 6,077,505 unissued shares to the private sector as
part of on-going efforts to comply with SRC‟s mandate regarding the ownership of the Exchange (see Note
16). Gross proceeds from the private placement offering amounted to =726.3P million, inclusive of
additional paid-in capital of =720.2
P million representing premium over the par value of the common stock.
Expenses related to the offering amounting to =21.1
P million were recorded as a reduction of the additional
paid-in capital.
Securities Clearing Corporation of the Philippines (SCCP), a 100% owned subsidiary of the Exchange, is a
domestic corporation organized to carry out and strictly implement the following functions: (1) Delivery-
versus-Payment trade settlement; (2) fails management and administration of the Clearing and Trade
Guaranty Fund (CTGF); and (3) risk monitoring and management.
To ensure compliance of trading participants, SCCP is authorized by the SEC to impose fines and penalties
and other sanctions as approved by SCCP‟s Board of Directors (BOD).
SCCP was given a temporary license to operate by the SEC and started its commercial operations on
January 3, 2000. On January 15, 2002, 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.”
Capital Markets Integrity Corporation (CMIC), a 100% owned subsidiary of the Exchange, is a stock
corporation organized on March 14, 2011 to function as the independent audit, surveillance and
compliance unit of the Exchange with the authority to adopt, enforce, implement and interpret rules,
guidelines and securities laws applicable to the operations and dealings of trading participants and other
market participants of the Exchange.
The registered office address of the Parent Company is PSE Plaza, Ayala Triangle, Ayala Avenue Makati
City.
The accompanying consolidated financial statements were authorized for issue by the BOD on March 13,
2013.
Basis of Preparation and Consolidation, Changes in Accounting Policies, and Summary of Significant
Accounting Policies
Basis of Preparation
The accompanying consolidated financial statements of the Parent Company and its subsidiaries
(collectively referred to as the Group) have been prepared in accordance with Philippine Financial Reporting
Standard (PFRS). PFRS includes statements named PFRS, Philippine Accounting Standards (PAS) and
Philippine Interpretations of International Financial Reporting Interpretations Committee (IFRIC) issued by
the Financial Reporting Standards Council.
The accompanying consolidated financial statements have been prepared on a historical cost basis, except
for financial assets at fair value through profit or loss (FVPL) and available-for-sale (AFS) investments that
have been measured at fair value. The financial statements are presented in Philippine Peso (=), P which is
the Group‟s functional and presentation currency under PFRS. All values are rounded to the nearest peso,
except when otherwise indicated.
Basis of Consolidation
The consolidated financial statements comprise the financial statements of the Parent Company and its
wholly-owned subsidiaries, namely SCCP and CMIC. The subsidiaries are fully consolidated from the date
of acquisition, being the date on which the Parent Company obtains control, and continue to be
consolidated until the date that such control ceases. Control is achieved where the Parent Company has
the power to govern the financial and operating policies of an entity so as to obtain benefit from its
activities.
The financial statements of the subsidiaries are prepared for the same reporting period as the Parent
Company, using consistent accounting policies. All intra-group balances, transactions, income and
expenses resulting from intra-group transactions are eliminated in full in the consolidation.
A change in the ownership interest of a subsidiary, without a loss of control, is accounted for as an equity
transaction.
Changes in Accounting Policies and Disclosures
The accounting policies adopted are consistent with those of the previous financial year, except for the
adoption of the following amended PFRSs, which were adopted as at January 1, 2012. The adoption of
these standards or interpretations did not have an impact on the financial statements.
 PFRS 7, Financial Instruments: Disclosures - Transfers of Financial Assets (Amendments)
 PAS 12, Income Taxes - Deferred Tax: Recovery of Underlying Assets (Amendments)
Standards Issued but not yet Effective  PFRS 13, Fair Value Measurement - PFRS 13 establishes a single source of guidance under PFRSs for
Standards issued but not yet effective up to the date of issuance of the Group‟s consolidated financial all fair value measurements. PFRS 13 does not change when an entity is required to use fair value, but
statements are listed below. The Group intends to adopt these standards when they become effective. rather provides guidance on how to measure fair value under PFRS when fair value is required or
Except as otherwise indicated, the Group does not expect the adoption of these new and amended permitted. This standard should be applied prospectively as of the beginning of the annual period in
which it is initially applied. Its disclosure requirements need not be applied in comparative information
standards and interpretations to have significant impact on its financial statements.
provided for periods before initial application of PFRS 13. The standard becomes effective for annual
periods beginning on or after January 1, 2013.
 PFRS 7, Financial instruments: Disclosures - Offsetting Financial Assets and Financial Liabilities
(Amendments) - These amendments require an entity to disclose information about rights of set-off
 PAS 1, Presentation of Financial Statements - Presentation of Items of Other Comprehensive Income or
and related arrangements (such as collateral agreements). The new disclosures are required for all
OCI (Amendments) - The amendments to PAS 1 change the grouping of items presented in OCI. Items
recognized financial instruments that are set off in accordance with PAS 32, Financial Instruments:
that can be reclassified (or “recycled”) to profit or loss at a future point in time (for example, upon
Presentation - Offsetting Financial Assets and Financial Liabilities. These disclosures also apply to
derecognition or settlement) will be presented separately from items that will never be recycled. The
recognized financial instruments that are subject to an enforceable master netting arrangement or
amendments become effective for annual periods beginning on or after July 1, 2012.
“similar agreement”, irrespective of whether they are set-off in accordance with PAS 32. The
amendments require entities to disclose, in a tabular format unless another format is more appropriate,
 PAS 19, Employee Benefits (Revised) - Amendments to PAS 19 range from fundamental changes such
the following minimum quantitative information. This is presented separately for financial assets and
as removing the corridor mechanism and the concept of expected returns on plan assets to simple
financial liabilities recognized at the end of the reporting period:
clarifications and rewording. The revised standard also requires new disclosures such as, among
a. The gross amounts of those recognized financial assets and recognized financial liabilities;
others, a sensitivity analysis for each significant actuarial assumption, information on asset-liability
b. The amounts that are set off in accordance with the criteria in PAS 32 when determining the net
matching strategies, duration of the defined benefit obligation, and disaggregation of plan assets by
amounts presented in the statement of financial position;
nature and risk. The amendments become effective for annual periods beginning on or after January 1,
c. The net amounts presented in the statement of financial position;
2013. Once effective, the Group has to apply the amendments retroactively to the earliest period
d. The amounts subject to an enforceable master netting arrangement or similar agreement that are
presented.
not otherwise included in (b) above, including:
i. Amounts related to recognized financial instruments that do not meet some or all of the
The Group reviewed its existing employee benefits and determined that the amended standard has
offsetting criteria in PAS 32; and
significant impact on its accounting for retirement benefits. The Group obtained the services of an
ii. Amounts related to financial collateral (including cash collateral); and
external actuary to compute the impact to the financial statements upon adoption of the standard. The
e. The net amount after deducting the amounts in (d) from the amounts in (c) above.
effects are detailed below:
The amendments to PFRS 7 are to be retrospectively applied and are effective for annual periods
Parent Company:
beginning on or after January 1, 2013. The amendments affect disclosures only and have no impact
As at As at
on the Group‟s financial position or performance.
December 31, 2012 January 1, 2012
Increase (decrease) in:
 PFRS 10, Consolidated Financial Statements - PFRS 10 replaces the portion of PAS 27, Consolidated
Balance sheet
and Separate Financial Statements, that addresses the accounting for consolidated financial
Net defined benefit liability =
P 12,146,411 =
P 43,524,916
statements. It also includes the issues raised in SIC 12, Consolidation - Special Purpose Entities. Deferred tax asset 3,643,924 13,057,475
PFRS 10 establishes a single control model that applies to all entities including special purpose entities. Other comprehensive income 20,908,298 –
The changes introduced by PFRS 10 will require management to exercise significant judgment to Retained earnings (29,410,785) (30,467,441)
determine which entities are controlled, and therefore, are required to be consolidated by a parent,
compared with the requirements that were in PAS 27. The standard becomes effective for annual 2012
periods beginning on or after January 1, 2013. Statement of comprehensive income
Retirement expense (=
P 1,509,508)
 PFRS 11, Joint Arrangements - PFRS 11 replaces PAS 31, Interests in Joint Ventures, and SIC 13, Provision for deferred income tax 452,852
Jointly Controlled Entities - Non-Monetary Contributions by Venturers. PFRS 11 removes the option to Net income 1,056,656
account for jointly controlled entities using proportionate consolidation. Instead, jointly controlled Other comprehensive income -
entities that meet the definition of a joint venture must be accounted for using the equity method. The net of deferred tax 20,908,298
standard becomes effective for annual periods beginning on or after January 1, 2013. Total comprehensive income =
P 21,964,954

 PFRS 12, Disclosure of Interests in Other Entities - PFRS 12 includes all of the disclosures related to
consolidated financial statements that were previously in PAS 27, as well as all the disclosures that
were previously included in PAS 31 and PAS 28, Investments in Associates. These disclosures relate
to an entity‟s interests in subsidiaries, joint arrangements, associates and structured entities. A
number of new disclosures are also required. The standard becomes effective for annual periods
beginning on or after January 1, 2013.
 PAS 27, Separate Financial Statements (as revised in 2011) - As a consequence of the issuance of the
new PFRS 10, Consolidated Financial Statements, and PFRS 12, Disclosure of Interests in Other
Entities, what remains of PAS 27 is limited to accounting for subsidiaries, jointly controlled entities,
and associates in the separate financial statements. The amendment becomes effective for annual
periods beginning on or after January 1, 2013.
 PAS 28, Investments in Associates and Joint Ventures (as revised in 2011) - As a consequence of the
issuance of the new PFRS 11, Joint Arrangements, and PFRS 12, Disclosure of Interests in Other
 Entities, PAS 28 has been renamed PAS 28, Investments in Associates and Joint Ventures, and
describes the application of the equity method to investments in joint ventures in addition to
associates. The amendment becomes effective for annual periods beginning on or after January 1,
2013.
 Philippine Interpretation IFRIC 20, Stripping Costs in the Production Phase of a Surface Mine - This
interpretation applies to waste removal (stripping) costs incurred in surface mining activity, during the
production phase of the mine. The interpretation addresses the accounting for the benefit from the
stripping activity. The interpretation is effective for annual periods beginning on or after January 1,
2013. This new interpretation is not relevant to the Group.
 PAS 32, Financial Instruments: Presentation - Offsetting Financial Assets and Financial Liabilities
(Amendments) - The amendments clarify the meaning of “currently has a legally enforceable right to
set-off” and also clarify the application of the PAS 32 offsetting criteria to settlement systems (such as
central clearing house systems) which apply gross settlement mechanisms that are not simultaneous.
The amendments affect presentation only and have no impact on the Group‟s financial position or
performance. The amendments to PAS 32 are to be retrospectively applied for annual periods
beginning on or after January 1, 2014.
 PFRS 9, Financial Instruments - PFRS 9, as issued, reflects the first phase on the replacement of PAS
39 and applies to the classification and measurement of financial assets and liabilities as defined in
PAS 39, Financial Instruments: Recognition and Measurement. Work on impairment of financial
instruments and hedge accounting is still ongoing, with a view to replacing PAS 39 in its entirety.
PFRS 9 requires all financial assets to be measured at fair value at initial recognition. A debt financial
asset may, if the fair value option (FVO) is not invoked, be subsequently measured at amortized cost if
it is held within a business model that has the objective to hold the assets to collect the contractual
cash flows and its contractual terms give rise, on specified dates, to cash flows that are solely
payments of principal and interest on the principal outstanding. All other debt instruments are
subsequently measured at fair value through profit or loss. All equity financial assets are measured at
fair value either through other comprehensive income (OCI) or profit or loss. Equity financial assets
held for trading must be measured at fair value through profit or loss. For FVO liabilities, the amount
of change in the fair value of a liability that is attributable to changes in credit risk must be presented
in OCI. The remainder of the change in fair value is presented in profit or loss, unless presentation of
the fair value change in respect of the liability‟s credit risk in OCI would create or enlarge an
accounting mismatch in profit or loss. All other PAS 39 classification and measurement requirements
for financial liabilities have been carried forward into PFRS 9, including the embedded derivative
separation rules and the criteria for using the FVO. The adoption of the first phase of PFRS 9 will not
have an effect on the classification and measurement of the Company‟s financial assets and financial
liabilities. PFRS 9 is effective for annual periods beginning on or after January 1, 2015. The Group
has decided not to early adopt PFRS 9 on its financial statements as at December 31, 2012.
 Philippine Interpretation IFRIC 15, Agreements for the Construction of Real Estate - This interpretation
covers accounting for revenue and associated expenses by entities that undertake the construction of
real estate directly or through subcontractors. The SEC and the Financial Reporting Standards Council
(FRSC) have deferred the effectivity of this interpretation until the final Revenue standard is issued by
the International Accounting Standards Board (IASB) and an evaluation of the requirements of the final
Revenue standard against the practices of the Philippine real estate industry is completed. Adoption of
the interpretation when it becomes effective will not have any impact on the financial statements of
the Group.
Annual Improvements to PFRSs (2009-2011 cycle)
The Annual Improvements to PFRSs (2009-2011 cycle) contain non-urgent but necessary amendments to
PFRSs. The amendments are effective for annual periods beginning on or after January 1, 2013 and are
applied retrospectively. Earlier application is permitted. The Group expects that the amendments will not
have any impact on its financial position or performance.
 PFRS 1, First-time Adoption of PFRS - Borrowing Costs - The amendment clarifies that, upon adoption
of PFRS, an entity that capitalized borrowing costs in accordance with its previous generally accepted
accounting principles, may carry forward, without any adjustment, the amount previously capitalized in
its opening statement of financial position at the date of transition. Subsequent to the adoption of
PFRS, borrowing costs are recognized in accordance with PAS 23, Borrowing Costs.
 PAS 1, Presentation of Financial Statements - Clarification of the requirements for comparative
information - The amendments clarify the requirements for comparative information that are disclosed
voluntarily and those that are mandatory due to retrospective application of an accounting policy, or
retrospective restatement or reclassification of items in the financial statements. An entity must
include comparative information in the related notes to the financial statements when it voluntarily
provides comparative information beyond the minimum required comparative period. The additional
comparative period does not need to contain a complete set of financial statements. On the other
hand, supporting notes for the third balance sheet (mandatory when there is a retrospective application
of an accounting policy, or retrospective restatement or reclassification of items in the financial
statements) are not required.
 PAS 16, Property, Plant and Equipment - Classification of servicing equipment - The amendment
clarifies that spare parts, stand-by equipment and servicing equipment should be recognized as
property, plant and equipment when they meet the definition of property, plant and equipment and
should be recognized as inventory if otherwise.
 PAS 32, Financial Instruments: Presentation - Tax effect of distribution to holders of equity
instruments - The amendment clarifies that income taxes relating to distributions to equity holders and
to transaction costs of an equity transaction are accounted for in accordance with PAS 12, Income
Taxes.
 PAS 34, Interim Financial Reporting - Interim financial reporting and segment information for total
assets and liabilities - The amendment clarifies that the total assets and liabilities for a particular
reportable segment need to be disclosed only when the amounts are regularly provided to the chief
operating decision maker and there has been a material change from the amount disclosed in the
entity‟s previous annual financial statements for that reportable segment.
Summary of Significant Accounting Policies
Cash and Cash Equivalents
Cash includes cash on hand and in banks. Cash equivalents are short-term, 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.
Financial Assets and Financial Liabilities
Date of Recognition. The Group recognizes a financial asset or a financial liability on its consolidated
balance sheet when and only when, the entity becomes a party to the contractual provisions of the
instrument. In the case of a regular way purchase and sale of financial assets, recognition and
derecognition, as applicable, are done using settlement date accounting. Regular way purchases and sales
are purchases or sales of financial assets that require delivery of assets within the period generally
established by regulation or convention in the market place.
Initial Recognition and Measurement. Financial assets and liabilities are recognized initially at fair value,
which is the fair value of the consideration given (in case of an asset) or received (in case of a liability).
The initial measurement of financial instruments, except those designated at FVPL, includes transaction
costs.
Financial assets are classified into the following categories: financial assets at FVPL, held-to-maturity
(HTM) investments, loans and receivables and AFS investments. Financial liabilities are classified either as
financial liabilities at FVPL or other financial liabilities. The classification depends on the purpose for which
the instruments are acquired and whether they are quoted in an active market. The classification depends
on the purpose for which the instruments are acquired or incurred and whether they are quoted in an active
market. The Group determines the classification at initial recognition and, where allowed and appropriate,
re-evaluates this designation at every reporting date.
The Group has no HTM investments and financial liabilities at FVPL as at December 31, 2012 and 2011.
Determination of Fair Value. The fair value for a financial instrument traded in an active market at the
reporting date is based on their quoted market price or dealer price quotation (bid price for long positions
and ask price for short positions), without any deduction for transaction costs. When current bid and ask
prices are not available, 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.
For all other financial instruments not listed in an active market, the fair value is determined by using
appropriate valuation methodologies. Valuation methodologies include net present value techniques,
comparison to similar instruments for which market observable prices exist, options pricing models, and
other relevant valuation models.
“Day 1” Difference. Where the transaction price in a non-active market is different from the fair value
from other observable current market transactions in the same instrument or based on a valuation
technique whose variables include only data from an observable market, the Group recognizes the
difference between the transaction price and fair value (a “Day 1” difference) in the consolidated
statements of comprehensive income unless it qualifies for recognition as some other type of asset or
liability. In cases where unobservable data is used, the difference between the transaction price and model
value is recognized in the consolidated statements of comprehensive income only when the inputs become
observable or when the instrument is derecognized. For each transaction, the Group determines the
appropriate method of recognizing the “Day 1” difference amount.
Subsequent Measurement. The subsequent measurement of financial assets depends on their classification
as described below:
Financial Assets at FVPL. Financial assets at FVPL include financial assets held for trading and financial
assets designated upon initial recognition as at FVPL.
Financial assets are classified as held for trading if they are acquired for the purpose of selling in the near
term. Derivatives, including any separated derivatives, are also classified under financial assets at FVPL,
unless these are designated as hedging instruments in an effective hedge or financial guarantee contracts.
Gains or losses on investments held for trading are included in the consolidated statements of
comprehensive income. Interest income on investments held for trading is included in the consolidated
statements of comprehensive income. Instruments under this category are classified as current assets if
these are held primarily for the purpose of trading or expected to be realized/settled within 12 months from
balance sheet date. Otherwise, these are classified as noncurrent assets.
Financial assets may be designated by management at initial recognition as at FVPL when any of the
following criteria is met:
 the designation eliminates or significantly reduces the inconsistent treatment that would otherwise
arise from measuring the assets or recognizing gains or losses on a different basis; or
 the assets are part of a group of financial assets, financial liabilities or both which are managed and
their performance are evaluated on a fair value basis, in accordance with a documented risk
management or investment strategy; or
 the financial instrument contains an embedded derivative, unless the embedded derivative does not
significantly modify the cash flows or it is clear, with little or no analysis, that it would not be
separately recorded.
Included under this category of financial assets at FVPL is the Group‟s investment in management account
which is designated at FVPL as it is being managed on a fair value basis.
Loans and Receivables. Loans and receivables are non-derivative financial assets with fixed or
determinable payments and are not quoted in an active market. 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. After initial measurement, such assets are subsequently measured at amortized
cost in the consolidated balance sheets using the effective interest method, less allowance for impairment.
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. Gains and losses are recognized in the profit or loss when
the loans and receivables are derecognized and impaired, as well as through the amortization process.
Loans and receivables are classified as current assets if maturity is within 12 months from balance sheet
date. Otherwise, these are classified as noncurrent assets.
Gains and losses are recognized in profit or loss when the loans and receivables are derecognized or
impaired, as well as through the amortization process.
Included under this category are the Group‟s cash and cash equivalents and receivables.
AFS Investments. AFS investments include equity and debt securities. Equity investments classified as
AFS are those, which are neither classified as held for trading nor designated at FVPL. Debt securities in
this category are those which are intended to be held for an indefinite period of time and which may be
sold in response to liquidity requirements or changes in market conditions.
After initial measurement, AFS investments are subsequently measured at fair value with unrealized gains
or losses recognized as other comprehensive income in the AFS reserve until the financial asset is
derecognized, at which time the cumulative gain or loss is recognized as an operating income, or
determined to be impaired, at which time the cumulative loss is recognized in the statements of
comprehensive income as finance cost and removed from the AFS reserve. Interest earned while holding
AFS investments is reported as interest income using the effective interest rate method. AFS investments
are classified as current assets if maturity is within 12 months from the balance sheet date. Otherwise,
these are classified as noncurrent assets.
Included under this category are the Group‟s investments in government debt securities, corporate bonds,
and golf club shares.
Other Financial Liabilities. This category pertains to financial liabilities that are not held for trading or not
designated as at FVPL upon the inception of the liability. These include liabilities arising from operations or
borrowings.
Financial liabilities are recognized initially at fair value and are subsequently carried at amortized cost,
taking into account the impact of applying the effective interest method of amortization (or accretion) for
any related premium, discount and any directly attributable transaction costs.
Included under this category are the Group‟s accounts payable and other current liabilities (excluding
payable to government agencies).
Classification of Financial Instruments Between Liability and Equity
A financial instrument is classified as liability if it provides for a contractual obligation to:
 deliver cash or another financial asset to another entity; or
 exchange financial assets or financial liabilities with another entity under conditions that are potentially
unfavorable to the Group; or
 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.
If the Group does not have an unconditional right to avoid delivering cash or another financial asset to
settle its contractual obligation, the obligation meets the definition of a financial liability.
Offsetting of Financial Instruments
Financial assets and financial liabilities are offset and the net amount is reported in the consolidated
balance sheets if, and only if, there is a currently enforceable legal right to offset the recognized amounts
and there is an intention to settle on a net basis, or to realize the asset and settle the liability
simultaneously. This is not generally the case with master netting agreements, where the related assets
and liabilities are presented gross in the consolidated balance sheets.
Impairment of Financial Assets
The Group assesses at each reporting date whether a financial asset or a group of financial assets is
impaired. A financial asset or a group of financial asset is deemed to be impaired, if and only if, 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. Evidence of
impairment may include indications that the borrower or a group of borrowers is experiencing significant
financial difficulty, default or delinquency in interest or principal payments, 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, such as changes in arrears or economic conditions
that correlate with defaults.
Financial Assets Carried at Amortized Cost. The Group first assesses 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, whether significant or not, it includes the
asset in a group of financial assets with similar credit risk characteristics and collectively assesses them for
impairment. Assets 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.
If there is objective evidence that an impairment loss has been incurred, 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). The present value of the estimated
future cash flows is discounted at the financial asset‟s original effective interest rate (i.e., the effective
interest rate computed at initial recognition).
The carrying amount of the impaired asset is reduced through the use of an allowance account. The
amount of the loss is charged to the consolidated statements of comprehensive income. Interest income
continues to be accrued on the reduced carrying amount based on the original effective interest rate of the
asset. Loans and receivables together with the associated allowance are written off when there is no
realistic prospect of future recovery and all collateral, if any, has been realized or has been transferred to
the Group. If, in a subsequent period, the amount of the impairment loss increases or decreases because
of an event occurring after the impairment was recognized, the previously recognized impairment loss
increases or decreases by adjusting the allowance account. If a future write-off is later recovered, the
recovery is recognized in the consolidated statements of comprehensive income.
AFS Investments. The Group assesses at each reporting period whether there is objective evidence that an
investment or a group of investments is impaired. In the case of equity investments classified as AFS
investments, an objective evidence of impairment would include a significant or prolonged decline in the
fair value of the investments below its cost. Significant is evaluated against the original cost of the
investment and prolonged against the period in which the fair value has been below its original cost.
Where there is evidence of impairment, the cumulative loss, which is measured as the difference between
the acquisition cost and the current value, less any impairment loss on that financial asset previously
recognized in the profit or loss, is removed from other comprehensive income and recognized in the profit
or loss. Impairment losses on equity are not reversed through the profit or loss; increases in fair value after
impairment are recognized directly in other comprehensive income.
In the case of debt instruments classified as AFS investments, impairment is assessed based on the same
criteria as financial assets carried at amortized cost. Future interest income is based on the reduced
carrying amount of the asset and is accrued based on the rate of interest used to discount future cash
flows for the purpose of measuring impairment loss. Such accrual is recorded as part of “Interest income”
account in the consolidated statements of comprehensive income. If, in subsequent year, 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 consolidated statements of comprehensive income, the impairment loss
is reversed through the statements of comprehensive income.
Derecognition of Financial Assets and Liabilities
Financial Asset. A financial asset (or, where applicable, a part of a financial asset or part of a group of
similar financial assets) is derecognized when:
 the rights to receive cash flows from the asset have expired;
 the Group retains the right to receive cash flows from the asset, but has assumed an obligation to pay
them in full without material delay to a third party under a “pass-through” arrangement; or
 the Group has transferred its rights to receive cash flows from the asset and either: (a) has transferred
substantially all the risks and rewards of the asset; or (b) has neither transferred nor retained
substantially all the risks and rewards of the asset, but has transferred control of the asset.
When the Group has transferred its right to receive cash flows from an asset or has entered into a “pass-
through” arrangement and has neither transferred nor retained substantially all the risks and rewards of the
asset nor transferred control of the asset, the asset is recognized to the extent of the Group‟s continuing
involvement in the asset.
Financial Liability. A financial liability is derecognized when the obligation under the liability is discharged
or cancelled or has expired.
When an existing financial liability is replaced by another from the same lender on substantially different
terms, or the terms of an existing liability are substantially modified, such exchange or modification is
treated as a derecognition of the original liability and the recognition of a new liability and the difference in
the respective carrying amounts is recognized in the consolidated statements of comprehensive income.
Property and Equipment
Property and equipment, except Land, is stated at cost less accumulated depreciation and any impairment
in value. The cost of the Land, which is represented by shares in the Condominium Corporation donated to
the Exchange, is valued at the fair value of the land at the date of donation. Land is subsequently carried
at cost less any impairment in value.
The initial cost of property and equipment comprises its purchase price and any directly attributable costs
in bringing the asset to its working condition and location for its intended use. Expenditures incurred after
the property and equipment have been put into operation, such as repairs and maintenance, are charged
against current operations.
Depreciation is calculated using the straight-line method over the following estimated useful life of the
depreciable assets:
Buildings 25 years
Building improvements 10 years
Transportation equipment 5 years
Trading system equipment 3 to 7 years
Computer hardware and peripherals 3 to 5 years
Office furniture, fixtures and communication equipment 2 to 5 years
The residual values, useful lives and methods of depreciation are reviewed at each financial year-end, and
adjusted prospectively, if appropriate.
Fully depreciated assets are retained in the accounts until they are no longer in use and no further
depreciation is credited or charged to current operations.
An item of property and equipment is derecognized upon disposal or when no future economic benefits are
expected from its use or disposal. 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 profit
or loss in the year the asset is derecognized.
Computer Software
Costs associated with developing or maintaining computer software programs are recognized as expense
when incurred. 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.
Computer software development costs recognized as assets are amortized using the straight-line method
over their estimated useful life, but not exceeding a period of seven (7) years.
Investment in an Associate
The Group‟s investment in an associate is accounted for under the equity method of accounting. An
associate is an entity in which the Group has significant influence and which is neither a subsidiary nor a
joint venture.
Under the equity method, an investment in an associate is carried in the consolidated balance sheets at
cost plus post-acquisition changes in the Group‟s share in net assets of the associate. Goodwill relating to
an associate is included in the carrying amount of the investment and is neither amortized nor individually
tested for impairment. The profit or loss reflects the share in the results of operations of the associate.
Where there has been a change recognized directly in the equity of the associate, the Group recognizes its
share in any changes and discloses this, when applicable, in the consolidated statements of changes in
equity. Unrealized gains and losses resulting from transactions between the Group and the associate are
eliminated to the extent of the interest in the associate.
The financial statements of the associate are prepared for the same reporting period as the Group.
After application of the equity method, the Group determines whether it is necessary to recognize an
additional impairment loss on the Group‟s investment in the associate. The Group determines at each
balance sheet date whether there is any objective evidence that the investment in the associate is
impaired. If this is the case, 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 consolidated
statements of comprehensive income.
Upon loss of significant influence over the associate, the Group measures and recognizes any retained
investment at its fair value. Any difference between the carrying amounts of the associate upon loss of
significant influence and the fair value of the retained investment and proceeds from disposal is recognized
in the profit or loss.
Impairment of Nonfinancial Assets
The carrying values of property and equipment, computer software, and investment in an associate are
reviewed for impairment when events or changes in circumstances indicate that the carrying value may not
be recoverable. If any such indication exists, and if the carrying value exceeds the estimated recoverable
amount, the assets are written down to their recoverable amounts. The recoverable amount of the asset is
the greater of fair value less costs to sell or value in use. The fair value less costs to sell is the amount
obtainable from the sale of an asset in an arm‟s-length transaction between knowledgeable, willing parties,
less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value of
money and the risks specific to the asset. Impairment losses are recognized in the profit or loss in those
expense categories consistent with the function of the impaired asset.
An assessment is made at each reporting date as to whether there is any indication that previously
recognized impairment loss may no longer exist or may have decreased. If such indication exists, the
recoverable amount is estimated. A previously recognized impairment loss is reversed only if there has
been a change in the estimates used to determine the asset‟s recoverable amount since the last impairment
loss was recognized. If that is the case, the carrying amount of the asset is increased to its recoverable
amount. That increased amount cannot exceed the carrying amount that would have been determined, net
of depreciation and amortization, had no impairment loss been recognized for the asset in prior years.
Such reversal is recognized in the profit or loss. After such a reversal, the depreciation or amortization
charge is adjusted in future periods to allocate the asset‟s revised carrying amount, less any residual value,
on a systematic basis over its remaining useful life.
Deferred Fees
Deferred fees represent listing fees, listing maintenance fees and data feed fees which are collected but
not yet earned as at balance sheet date. This account is reversed and recognized as revenue when
services are rendered.
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, regardless of when the payment is being made. Revenue is
measured at the fair value of the consideration received or receivable, taking into account contractually
defined terms of payment and excluding taxes or duty. The Group assesses its revenue arrangements
against specific criteria to determine if it is acting as principal or agent. The Group has concluded that it is
acting as principal in all of its revenue arrangements.
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 annual
listing fees are recognized on an accrual basis based on the listing agreement. The additional listing fees
are recognized upon the listing of new securities issued by an applicant.
Listing Maintenance, Processing, Service Fees, Trading-related and Regulatory Fees. Revenue is recognized
when the related services are rendered.
Other Revenues. Revenue is recognized when the services are rendered or when penalties or fines are
charged. This account mainly consists of trading and listing related fines and penalties for late payment,
late submission of requirements, noncompliance and nondisclosure of listed companies.
Interest Income. Revenue is recognized as the interest accrues, taking into account the effective yield of
the asset.
Dividend Income. Dividend income is recognized when the Group‟s right to receive the dividend payment
is established.
Retirement Cost
The Parent Company has a funded noncontributory defined benefit retirement plan, while SCCP has an
unfunded noncontributory defined benefit retirement plan, administered by trustees, covering their
permanent employees. The Parent Company and SCCP‟s retirement cost is actuarially determined using
the projected unit credit method.
The cost of providing benefits under the defined benefit plans is determined separately for each plan using
the projected unit credit actuarial valuation method. This method reflects service rendered by employees
to the date of valuation and incorporates assumptions concerning employees‟ projected salaries. Pension
cost includes current service cost, interest cost, expected return on plan assets, amortization of
unrecognized past service costs, recognition of actuarial gains or losses and effect of any curtailments or
settlements. Past service cost is amortized over a period until the benefits become vested. The portion of
the actuarial gains and losses is recognized when it exceeds the “corridor” (10% of the greater of the
present value of the defined benefit obligation or fair value of the plan assets) at the previous reporting
date, divided by the expected average remaining working lives of active plan members.
The defined benefit liability is the aggregate of the present value of the defined benefit obligation and
actuarial gains and losses not recognized, 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. If such aggregate is negative,
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 the future contributions to the plan.
If the asset is measured at 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 the future contributions to the plan, net actuarial losses of the current period and past service
cost of the current period are recognized immediately to the extent that they exceed any reduction in the
present value of those economic benefits. If there is no change or if there is an increase in the present
value of the economic benefits, the entire net actuarial losses of the current period and past service cost of
the current period are recognized immediately. Similarly, net actuarial gains of the current period after the
deduction of past service cost of the current period exceeding any increase in the present value of the
economic benefits stated above are recognized immediately if the asset is measured at 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 the future contributions to the plan.
If there is no change or if there is a decrease in the present value of the economic benefits, the entire net
actuarial gains of the current period after the deduction of past service cost of the current period are
recognized immediately.
Income Taxes
Current Tax. Current tax assets and liabilities are measured at the amount expected to be recovered from
or paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that
are enacted or substantively enacted at balance sheet date.
Deferred Tax. Deferred tax is provided, using the balance sheet liability method, on all temporary
differences at balance sheet date between the tax bases of assets and liabilities and their carrying amounts
for financial reporting purposes.
Deferred tax liabilities are recognized for all taxable temporary differences. Deferred tax assets are
recognized for all deductible temporary differences, 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), 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.
Deferred tax liabilities are not provided on nontaxable temporary differences associated with investment in
subsidiaries.
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 assets to be utilized. 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 assets to be recovered.
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, based on tax rates (and tax laws) that have been enacted or substantively
enacted at balance sheet date.
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.
Value-added Tax (VAT). Revenue, expenses and assets are recognized, net of the amount of VAT. The
net amount of VAT recoverable from, or payable to, the taxation authority is included as part of “Other
current assets” or “Accounts payable and other current liabilities” accounts in the balance sheets.
Employee Stock Purchase Plan
All regular employees in good standing are granted options to purchase shares, subject to restrictions,
terms and conditions provided in the Employee Stock Purchase Plan (ESPP).
The cost of equity-settled transactions is measured by reference to the fair value at the date on which they
are granted. The fair value is determined using a quoted market price at the time of payment.
The cost of equity-settled transactions is recognized with a corresponding increase in the equity, over the
period in which the performance and/or service conditions are fulfilled, ending on the date on which the
relevant employees become fully entitled to the award (vesting date). 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. The amount reflected in the profit or loss represents the movement in cumulative expense
recognized as at the beginning and end of the period. No expense is recognized for awards that do not
ultimately vest.
Foreign Currency-Denominated Transactions
Transactions in foreign currencies are recorded using the exchange rate at the date of the transactions.
Foreign exchange gains or losses arising from foreign currency-denominated transactions and revaluation
adjustments of foreign currency-denominated assets and liabilities are credited to or charged against
current operations. Monetary assets and liabilities denominated in foreign currencies are translated using
the closing rate prevailing at balance sheet date.
3.
Capital Stock
Capital stock is measured at par value for all shares issued. Incremental costs incurred directly attributable
to the issuance of new shares are shown in stockholders‟ equity as a deduction from proceeds, net of tax.
Proceeds and/or fair value of considerations received in excess of par value, if any, are recognized as
additional paid-in capital stock.
Treasury Shares
The Parent Company‟s own equity instruments which are acquired (treasury shares) are deducted from
equity and accounted for at cost. No gain or loss is recognized in the consolidated statement of
comprehensive income on the purchase, sale, issue or cancellation of the Parent Company‟s own equity
instruments.
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. Dividends for the year that are approved after the balance sheet date
are dealt with as an event after the reporting period.
Earnings Per Share (EPS)
Basic EPS is calculated by dividing the net income for the year by the weighted average number of shares
outstanding during the year.
Diluted EPS is computed by dividing net income by the weighted average number of shares outstanding
during the year, adjusted for the effects of dilutive stock options. Stocks under ESPP are deemed to have
been converted into shares on the date when granted.
Operating Segments
For purposes of segment reporting, the Group does not have other reportable segments.
Provisions
Provisions are recognized when the Group has a present obligation (legal or constructive) where, as a result
of a past event, 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. If the effect of
the time value of money is material, provisions are determined by discounting the expected future cash
flows at a pre-tax rate that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the liability. Where discounting is used, the increase in the provision due
to the passage of time is recognized as interest expense. Where the Group expects a provision to be
reimbursed, the reimbursement is recognized as a separate asset but only when the receipt of the
reimbursement is virtually certain.
Contingencies
Contingent liabilities are not recognized in the consolidated financial statements. They are disclosed in the
notes to consolidated financial statements unless the possibility of an outflow of assets embodying
economic benefits is remote. Contingent assets are not recognized in the consolidated financial statements
but are disclosed in the notes to consolidated financial statements when an inflow of economic benefits is
probable.
Events after the Reporting Date
Post-year-end events that provide additional information about the Group‟s financial position at the end of
the reporting date (adjusting events) are reflected in the consolidated financial statements. Post-year-end
events that are not adjusting events, are disclosed in the notes to the consolidated financial statements
when material.sss
Significant Accounting Judgments, Estimates and Assumptions
Judgments
In the process of applying the Group‟s accounting policies, management has made the following
judgments, apart from those involving estimates and assumptions, which have the most significant effect
on the amounts recognized in the consolidated financial statements.
Fair Values of Financial Assets and 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. If prices are not readily determinable or if liquidating the positions is reasonably expected to affect
market prices, fair value is based on management‟s estimate of amounts that could be realized under
current market conditions, assuming an orderly liquidation over a reasonable period of time.
Functional Currency. The functional currency of the Group is the currency of the primary economic
environment in which the Group operates. It is the currency that mainly influences the revenue from and
cost of rendering services. Based on the economic substance of the relevant underlying circumstances,
the functional and presentation currency of the Group is the Philippine peso.
Estimates and assumptions
The key assumptions concerning the future and other key sources of estimation uncertainty at reporting
date, 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. The Group based its assumptions and
estimates on parameters available when the consolidated financial statements were prepared. Existing
circumstances and assumptions about future developments, however, may change due to market changes
or circumstances arising beyond the control of the Group. Such changes are reflected in the assumptions
when they occur.
Impairment of AFS Investments. 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 determination of what is „significant‟ or „prolonged‟ requires judgment. The Group
treats „significant‟ generally as 20% or more and „prolonged‟ as greater than the period of six months. In
addition, the Group evaluates other factors, including normal volatility in share price for quoted equities and
the future cash flows and the discount factors for unquoted equities.
As at December 31, 2012 and 2011, allowance for impairment losses on AFS equity investments
amounted to =2.9
P million. The carrying value of AFS equity investments amounted to =327.8
P million and
=209.7
P million as at December 31, 2012 and 2011, respectively (see Note 8).
Impairment of Receivables. The Group annually reviews its receivables that are individually significant to
assess impairment. If the Group determines that no objective evidence of impairment exists for an
individually assessed financial asset, it collectively assesses them for impairment. In determining whether
an impairment loss should be recorded in the consolidated statements of comprehensive income, the Group
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. This evidence may include observable data
indicating that there has been an adverse change in the payment status of borrowers.
As at December 31, 2012 and 2011, allowance for impairment losses on receivables amounted to =2.6
P As at December 31, 2012 and 2011, the Group recognized deferred tax asset amounting to =10.9 P
million. As at December 31, 2012 and 2011, the carrying values of receivables amounted to =87.1
P and =13.6
million and =72.4
P million, respectively (see Note 9).
Impairment of Investment in an Associate. The Group assesses impairment on its investments in an
associate whenever events or changes in circumstances indicate that the carrying amount of an asset may
not be recoverable. The factors that the Group considers important which could trigger an impairment
review on its investments in subsidiaries and associate include the following:
 Deteriorating or poor financial condition;
 Recurring net losses; and
 Significant changes with an adverse effect on the technological, market, economic, or legal
environment in which the associate operates have taken place during the period, or will take place in
the near future.
The carrying value of the investment in an associate amounted to =211.5
P million and =172.7
P million as at
December 31, 2012 and 2011, respectively (see Note 11).
Impairment of Other Nonfinancial Assets. The Group assesses impairment on its other nonfinancial assets
(e.g., property and equipment, computer software) whenever events or changes in circumstances indicate
that the carrying amount of an asset may not be recoverable. Among others, 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;
 Significant changes in the manner of use of the acquired assets or the strategy for overall business;
and
 Significant negative industry or economic trends.
An impairment loss is recognized whenever the carrying amount of an asset exceeds its recoverable
amount. 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
4.
use of the asset. The Group is required to make estimates and assumptions that can materially affect the
carrying amount of the asset being assessed.
As at December 31, 2012 and 2011, the aggregate carrying value of property and equipment and
computer software amounted to =519.8
P million and =520.3
P million, respectively (see Notes 10
and 12).
Estimation of Useful Lives of Property and Equipment and Computer Software. 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. The Group reviews annually the estimated useful lives based
on factors that include asset utilization, internal technical evaluation, technological changes, and
anticipated use of the assets. 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.
Recognition of Deferred Tax Assets. 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. Significant management judgment is required to determine the
amount of deferred income tax assets that can be recognized, based upon the likely timing and level of
future taxable profits together with future tax planning strategies.
million
P million, respectively. Unrecognized deferred tax asset amounted to =9.9
P million and =10.7
P
million as at December 31, 2012 and 2011 (see Note 22).
Present Value of Defined Benefit Obligation. The present value of the pension obligations depends on a
number of factors that are determined on an actuarial basis using a number of assumptions. The
assumptions used in determining the net cost for pensions include, among others, discount rate, expected
rate of return on plan assets and rate of salary increase. Actual results that differ from the Group‟s
assumptions are accumulated and amortized over future periods and therefore, generally affect the
recognized expense and recorded obligation in such future periods.
The assumption of the expected return on plan assets is determined on a uniform basis, taking into
consideration the long-term historical returns, asset allocation and future estimates of long-term investment
returns.
The Group determines the appropriate discount rate at the end of each year. It is the interest rate that
should be used to determine the present value of estimated future cash outflows expected to be required
to settle the pension obligations.
Other key assumptions for pension obligations are based in part on current market conditions.
While it is believed that the Group‟s assumptions are reasonable and appropriate, significant differences in
actual experience or significant changes in assumptions may materially affect the Group‟s pension and
other pension obligations.
As at December 31, 2012 and 2011, the present value of the defined benefit obligation amounted to
=87.3
P million and =93.2
P million, respectively, for the Parent Company and =13.3
P million and =10.8
P
million, respectively, for SCCP (see Note 23). While the net cumulative unrecognized actuarial losses as at
December 31, 2012 and 2011, amounted to =12.1 P million and =43.5
P million, respectively, for the Parent
Company and =3.8 P million and =3.6
P million, respectively for SCCP.
Financial Risk Management Objectives and Policies
The Group‟s principal financial instruments consist of cash and cash equivalents, financial assets at FVPL
and AFS investments. The main purpose of these financial instruments is to raise finances for the Group‟s
operations. The Group has other financial assets or liabilities such as receivables and accounts payable
and other current liabilities which arise directly from its operations. It is the Group‟s policy not to directly
engage in the trading of financial instruments.
The main risks arising from the Group‟s financial instruments are liquidity risk, credit risk, interest rate risk
and foreign currency risk. The Parent Company‟s BOD, management and the Corporate Governance Office
review and agree on the policies of managing each of these risk as summarized below.
Liquidity Risk
Liquidity risk or funding risk is the risk that an entity will encounter difficulty in raising funds to meet
commitments associated with financial instruments. Liquidity risk may also result from the inability to sell
financial assets quickly at their fair values.
The Group seeks to manage its liquidity profile to be able to service its maturing liabilities and to finance
capital requirements. The Group maintains a level of cash and cash equivalents deemed sufficient to
finance operations. As part of its liquidity risk management, the Group regularly evaluates its projected
and actual cash flows.
To meet the requirement for liquidity, adequate cash flow is provided for administrative/operating As at December 31, 2011
expenditures and capital expenses based on projected funding requirements. All excess funds are invested More than No Maturity
in an organized investment mix of short-term and long-term investments to achieve maximum returns. Within a Year 1–2 Years 2 Years Date Total
Financial Assets
The tables below summarize the maturity profile of the Group‟s financial assets held for liquidity purposes Loans and receivables:
and financial liabilities based on remaining contractual undiscounted payments. Cash and cash equivalents =
P 1,041,644,459 =
P– =
P– =
P– =
P 1,041,644,459
Receivables:
As at December 31, 2012 Receivables from:
More than No Maturity Trading participants 56,494,988 – – – 56,494,988
Within a Year 1–2 Years 2 Years Date Total Listed companies 4,353,073 – – – 4,353,073
Financial Assets Data vendors 4,686,260 – – – 4,686,260
Loans and receivables: Accrued interest receivable 3,149,142 – – – 3,149,142
Cash and cash equivalents =
P 1,051,355,197 =
P– =
P– =
P– =
P 1,051,355,197 Advances to officers and
Receivables: employees 4,688,196 – – – 4,688,196
Receivables from: Others 1,674,084 – – – 1,674,084
Trading participants 62,737,616 – – – 62,737,616 Other noncurrent assets - deposits in
Listed companies 7,380,176 – – – 7,380,176 banks – – 326,961 – 326,961
Data vendors 10,363,355 – – – 10,363,355 Financial assets at FVPL 207,881,747 – – – 207,881,747
Accrued interest receivable 2,369,199 – – – 2,369,199 AFS investments:
Advances to officers and Government debt securities:
employees 6,627,588 – – – 6,627,588 Short-term 42,342,741 – – – 42,342,741
Others 215,610 – – – 215,610 Long-term – – 135,154,591 – 135,154,591
Other noncurrent assets - deposits in Corporate bonds – – 31,716,429 – 31,716,429
banks – – 331,824 – 331,824 Equity securities – – – 3,414,000 3,414,000
Financial assets at FVPL 274,585,220 – – – 274,585,220 =
P 1,366,914,690 =
P– =
P 167,197,981 =
P 3,414,000 =
P 1,537,526,671
AFS investments: Financial Liabilities
Government debt securities: Other financial liabilities:
Long-term – – 277,647,291 – 277,647,291 Due to SEC =
P 76,077,971 =
P– =
P– =
P– =
P 76,077,971
Corporate bonds – – 50,000,000 – 50,000,000 Trade payables 41,130,159 – – – 41,130,159
Equity securities – – – 3,078,000 3,078,000 Accrued expenses 27,966,242 – – – 27,966,242
=
P 1,415,633,961 =
P– =
P 327,979,115 =
P 3,078,000 =
P 1,746,691,076 Others 5,412,860 – – – 5,412,860
=
P 150,587,232 =
P– =
P– =
P– =
P 150,587,232
Financial Liabilities
Other financial liabilities: Credit Risk
Due to SEC =
P 82,398,201 =
P– =
P– =
P– =
P 82,398,201 Credit risk refers to the potential loss arising from failure by the Group‟s counterparties to fulfill their
Trade payables 37,862,248 – – – 37,862,248 contractual obligations, as and when they fall due. The Group‟s credit risk exposure arises mainly from
Accrued expenses 37,782,768 – – – 37,782,768 receivables from trading participants on clearing related services for securities transactions, membership
Others 4,184,802 – – – 4,184,802 fees and other fees, receivable from listed companies on listing maintenance fees and receivable from
=
P 162,228,019 =
P– =
P– =
P– =
P 162,228,019 market data vendors for data feed charges. To minimize credit risk, the Group monitors the financial health
of trading participants and takes note of participants with potential default.

The credit risk of the Group‟s other financial assets, which comprise cash and cash equivalents and AFS
investments, arises from default of the counterparty with a maximum exposure equal to their carrying
amounts of these instruments. The fair values of these financial instruments are disclosed in Note 5.
The tables below show the aging analysis of the Company‟s financial assets as at December 31, 2012 and 2011
2011: Past Due but not Impaired
2012 Over
Past Due but not Impaired Neither Past 180 Days but Past
Over Due nor 30 to 60 120 to 180 Less than Due and
Neither Past 180 Days but Past Impaired Days 60 to 120 Days Days 360 Days Impaired Total
Due nor 30 to 60 120 to 180 Less than Due and Financial assets
Impaired Days 60 to 120 Days Days 360 Days Impaired Total Loans and receivables:
Cash and cash
Financial assets
equivalents* =
P 1,041,515,911 =
P– =
P– =
P– =
P– =
P– =
P 1,041,515,911
Loans and receivables:
Receivables:
Cash and cash
Receivables from:
equivalents* =
P 1,051,272,207 =
P– =
P– =
P– =
P– =
P– =
P 1,051,272,207
Trading
Receivables:
participants 56,119,529 272,791 – – – 102,668 =
P 56,494,988
Receivables from:
Listed companies 575,862 – – – 1,302,933 2,474,278 4,353,073
Trading
Data vendors 4,660,232 – – – 26,028 – 4,686,260
participants 62,241,949 349,440 – – 43,559 102,668 62,737,616
Accrued interest
Listed companies 218,705 – 28,000 950,000 3,709,193 2,474,278 7,380,176
receivable 3,149,142 – – – – – 3,149,142
Data vendors 7,452,340 2,011,376 893,938 – 5,701 – 10,363,355
Advances to officers
Accrued interest
and employees 4,450,196 98,000 – 98,000 42,000 – 4,688,196
receivable 2,369,199 – – – – – 2,369,199
Others 1,257,468 30,000 320,616 39,000 – 27,000 1,674,084
Advances to officers
Other noncurrent assets -
and employees 6,627,588 – – – – – 6,627,588
deposits in banks 326,961 – – – – – 326,961
Others 181,890 6,720 – – – 27,000 215,610
Financial assets at FVPL 207,881,747 – – – – – 207,881,747
Other noncurrent assets -
AFS investments:
deposits in banks 331,824 – – – – – 331,824
Government debt
Financial assets at FVPL 274,585,220 – – – – – 274,585,220
securities:
AFS investments:
Short-term 42,342,741 – – – – – 42,342,741
Government debt
Long-term 135,154,591 – – – – – 135,154,591
securities:
Corporate bonds 31,716,429 – – – – – 31,716,429
Long-term 277,647,291 – – – – – 277,647,291
Equity securities 536,000 – – – – 2,878,000 3,414,000
Corporate bonds 50,000,000 – – – – – 50,000,000
=
P 1,529,686,809 =
P 400,791 =
P 320,616 =
P 137,000 =
P 1,370,961 =
P 5,481,946 =
P 1,537,398,123
Equity securities 200,000 – – – – 2,878,000 3,078,000
*Excluding cash on hand amounting to =
P 0.1 million.
=
P 1,733,128,213 =
P 2,367,536 =
P 921,938 =
P 950,000 =
P 3,758,453 =
P 5,481,946 =
P 1,746,608,086
*Excluding cash on hand amounting to =
P 0.08 million.
The following tables provide information regarding the credit risk exposure of the Group by classifying financial
assets according to credit ratings of the counterparties:

2012
Neither Past Due nor Impaired Past Due
Medium but not
High Grade Grade Low Grade Total Impaired Total
Loans and Receivables
Cash and cash equivalents* =
P 1,051,272,207 =
P– =
P– =
P 1,051,272,207 =
P– =
P 1,051,272,207
Receivables
Receivables from:
Trading participants 62,241,949 – – 62,241,949 392,999 62,634,948
Listed companies 218,705 – – 218,705 4,687,193 4,905,898
Data vendors 7,452,340 – – 7,452,340 2,911,015 10,363,355
Accrued interest receivable 2,369,199 – – 2,369,199 – 2,369,199
Other receivables 12,116,398 – – 12,116,398 339,336 12,455,734
Other assets - deposits in banks 331,824 – – 331,824 – 331,824
Financial Assets at FVPL 274,585,220 – – 274,585,220 – 274,585,220
AFS Investments
Government debt securities:
Long-term 277,647,291 – – 277,647,291 – 277,647,291
Corporate bonds 50,000,000 – – 50,000,000 – 50,000,000
Equity securities 200,000 – – 200,000 – 200,000
Total Financial Assets =
P 1,738,435,133 =
P– =
P– =
P 1,738,435,133 =
P 8,330,543 =
P 1,746,765,676
*Excluding cash on hand amounting to =
P 0.08 million.
 Market Risk
2011 The Group‟s market risk (the risk of loss to future earnings, to fair values or to future cash flows that may
Neither Past Due nor Impaired Past Due result from changes in market variables) originates from its holdings of debt and equity securities. The
Medium but not
value of a financial instrument may change as a result of changes in interest rates, foreign currency
High Grade Grade Low Grade Total Impaired Total
Loans and Receivables
exchanges rates and other market changes.
Cash and cash equivalents* =
P 1,041,515,911 =
P– =
P– =
P 1,041,515,911 =
P– =
P 1,041,515,911
Receivables Equity Price Risk. Equity price risk is the risk to earnings or capital arising from changes in stock exchange
Receivables from: indices. The Group‟s exposure to equity price risk relates primarily to its quoted AFS financial assets.
Trading participants 56,119,529 – – 56,119,529 272,791 56,392,320
Listed companies 575,862 – – 575,862 1,302,933 1,878,795
The Group‟s policy is to maintain the risk to an acceptable level by monitoring regularly the movement of
Data vendors 4,660,232 – – 4,660,232 26,028 4,686,260
Accrued interest receivable 3,149,142 – – 3,149,142 – 3,149,142 share prices to determine the impact on its financial position.
Other receivables 5,707,664 – – 5,707,664 627,616 6,335,280
Other assets - deposits in banks 326,961 – – 326,961 – 326,961 As at December 31, 2012 and 2011, the Group‟s exposure to equity price risk is minimal.
Financial Assets at FVPL 207,881,747 – – 207,881,747 – 207,881,747
AFS Investments
Fair Value Interest Rate Risk. The Group follows a prudent policy on managing its assets and liabilities so
Government debt securities:
Short-term 42,342,741 – – 42,342,741 – 42,342,741 as to ensure that exposure to fluctuations in interest rates are kept within acceptable limits. There are no
Long-term 135,154,591 – – 135,154,591 – 135,154,591 floating rate financial assets and financial liabilities. Term deposits with banks and debt securities carry
Corporate bonds 31,716,429 – – 31,716,429 – 31,716,429 fixed rates throughout the period of deposit or placement.
Equity securities 536,000 – – 536,000 – 536,000
Total Financial Assets =
P 1,529,686,809 =
P– =
P– =
P 1,529,686,809 =
P 2,229,368 =
P 1,531,916,177 The table below sets forth the sensitivity to a reasonable possible change in interest rates with all other
*Excluding cash on hand amounting to =
P 0.1 million. variables held constant, of the Group‟s equity (through the impact on unrealized gain/loss on AFS fixed rate
debt securities). The impact on the Group‟s equity already excludes the impact on transactions affecting
The credit quality of the financial assets was determined as follows: the statements of comprehensive income.

Cash and cash equivalents - based on the nature of the counterparty. High grade pertains to cash and Effect on Equity
cash equivalents deposited or invested in top local banks. 2012 2011
(In Millions)
Financial assets at FVPL - based on the nature of the counterparty. High grade pertains to investments in Changes in interest rates:
fund management account through Investment Management Account deposited or invested in top local +70 basis points (P
=8.8) (=
P 5.4)
banks. -70 basis points 8.8 5.6

AFS investments – investments in debt securities are based on the nature of the counterparty. High grade Foreign Currency Risk. Foreign currency risk is the risk that the fair value of future cash flows of a
debt securities pertain to bonds and notes issued by the Philippine government, except for dollar- financial instrument will fluctuate because of changes in foreign currency exchange rates. The Exchange‟s
denominated government bonds which are considered medium grade due to sovereign and foreign currency exposure to foreign currency risks arise primarily from US dollar transactions, mostly from cash and cash
risk considerations. equivalents and investments in debt securities.

Receivables - high grade pertains to receivables with no default in payment by the borrower; medium grade The Group‟s policy is to maintain foreign currency exposure within acceptable limits. The Group believes
pertains to receivables with up to 3 defaults in payment by the borrower and low grade pertains to that its profile of foreign currency exposure on its assets and liabilities is within conservative limits.
receivables with more than 3 defaults in payment by the borrower.
The following table summarizes the exposure to foreign currency exchange risk as at
The Group does not have any significant exposure to any individual customer or counterparty nor does it December 31, 2012 and 2011:
have any major concentration of credit risk related to any financial instrument.
2012 2011
In the selection of investment, capital preservation is the primary consideration of the Group. With this In USD In =
P In USD In =
P
objective, funds are basically invested in government bonds and securities and duly registered with the Financial assets:
Registry of Scripless Securities under the name of the Group. For US dollar-denominated placements, the Cash and cash equivalents $776,032 =
P 31,856,126 $692,963 =
P 30,379,498
Group maintains a third party custodian bank. Receivables 230,746 9,472,123 98,519 4,319,073
$1,006,778 =
P 41,328,249 $791,482 =
P 34,698,571
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
In translating the foreign currency-denominated monetary assets and liabilities into Philippine Peso
Division who endorses it to the Treasurer or President for approval. The Exchange is guided by a BOD
amounts, the exchange rate used was =41.05
P to US$1.00 and =43.84
P to US$1.00, the Philippine Peso
approved investment policy guidelines. Any exemption to the set policy is subject to the approval of the
to U.S. Dollar exchange rate as at December 31, 2012 and 2011, respectively.
BOD. In addition, on a monthly basis, the Treasurer reports the investment portfolio performance and
management‟s performance associated with the investment portfolio to the BOD.
 The table below indicates the effect of increase or decrease in US dollar exchange rate on income before 2012 2011
income tax to which the Group has substantial exposures on its financial assets. The result calculates the Carrying Value Fair Value Carrying Value Fair Value
effect of a reasonably possible change in the spot rates, when all other variables are held constant.
Negative values in the table reflect a potential reduction in income while a positive amount reflects a Financial Liabilities
potential increase. Other financial liabilities:
Due to SEC =
P 82,398,201 =
P 82,398,201 =
P 76,077,971 =
P 76,077,971
2012 2011 Trade payables 37,862,248 37,862,248 41,130,159 41,130,159
Effect on Effect on Accrued expenses 37,782,768 37,782,768 27,966,242 27,966,242
USD Income USD Income Other payables 4,184,802 4,184,802 5,400,921 5,400,921
Strengthens/ Before Tax Strengthens/ Before Tax =
P 162,228,019 =
P 162,228,019 =
P 150,575,293 =
P 150,575,293
(Weakens) (in millions) (Weakens) (in millions)
5% =
P 2.1 5% =
P 1.7
The methods and assumptions used by the Group in estimating the fair value of the financial instruments
(5%) (2.1) (5%) (1.7)
are:
The increase in =
P rate as against US$ rate demonstrates weaker functional currency while the decrease
Cash and Cash Equivalents, Receivables, and Accounts Payable and Other Current Liabilities
represents stronger Philippine Peso value.
The carrying amounts approximate the fair values due to the short-term maturities of these financial
instruments.
There is no other impact on the equity other than those already affecting the consolidated statement of
comprehensive income.
Financial Assets at FVPL and AFS Investments
Fair values are based on quoted market prices.
5. Fair Value Measurement and Fair Value Hierarchy
Fair Value Hierarchy
The table below presents a comparison of the carrying amounts and estimated fair values by category and The Group uses the following hierarchy for determining and disclosing the fair value of financial
by class of the Group‟s financial instruments: instruments by valuation techniques:
2012 2011
Level 1: quoted prices in active markets for identical assets or liabilities;
Carrying Value Fair Value Carrying Value Fair Value
Financial Assets
Level 2: other techniques for which all inputs which have a significant effect on the recorded fair value are
Loans and receivables:
observable, either directly or indirectly; and
Cash and cash equivalents =
P 1,051,355,197 =
P 1,051,355,197 =
P 1,041,644,459 =
P 1,041,644,459
Receivables:
Receivables from: Level 3: techniques which use inputs which have significant effect on the recorded fair value that are not
Trading participants 62,737,616 62,737,616 56,392,320 56,392,320 based on observable market data.
Listed companies 7,380,176 7,380,176 1,878,795 1,878,795
Data vendors 10,363,355 10,363,355 4,686,260 4,686,260 As at December 31, 2012 and 2011, the Group‟s financial assets at FVPL and AFS investments, which are
Accrued interest receivable 2,369,199 2,369,199 3,149,142 3,149,142 measured at fair value, are categorized under level 1 of the fair value hierarchy. During the years ended
Advances to officers and employees 6,627,588 6,627,588 4,688,196 4,688,196 December 31, 2012 and 2011, there were no transfer between level 1 and level 2 fair value
Others 215,610 215,610 1,647,084 1,647,084 measurements. There are no financial instruments classified under levels 2 and 3.
Other assets - deposits in banks 331,824 331,824 326,961 326,961
Total Loans and Receivables 1,141,380,565 1,141,380,565 1,114,413,217 1,114,413,217 6. Cash and Cash Equivalents
Financial assets at FVPL 274,585,220 274,585,220 207,881,747 207,881,747
AFS investments: This account consists of:
Government debt securities:
Short-term 30,805,204 30,805,204 42,342,741 42,342,741 2012 2011
Long-term 246,842,087 246,842,087 135,154,591 135,154,591 Cash on hand and in banks =
P 78,659,311 =
P 55,962,131
Corporate bonds 50,000,000 50,000,000 31,716,429 31,716,429 Time deposits 972,695,886 985,682,328
Equity securities 200,000 200,000 536,000 536,000 =
P 1,051,355,197 =
P 1,041,644,459
Total AFS Investments 327,847,291 327,847,291 209,749,761 209,749,761
=
P 1,743,813,076 =
P 1,743,813,076 =
P 1,532,044,725 1,532,044,725 Cash in banks earn interest at the respective bank deposit rates. Time deposits are made for varying
(Forward) periods with original maturity of three months or less from dates of placement and earn interest rates
ranging from 1.63% to 3.9%, 4.56% to 4.69% and 3.00% to 4.06% in 2012, 2011 and 2010,
respectively.
 Interest income earned from cash and cash equivalents amounted to =38.8
P million, =34.2
P million and The rollforward analysis of the Group‟s AFS investments as follows:
=10.9
P million in 2012, 2011 and 2010, respectively (see Note 17). 2012 2011
Balance at beginning of year =
P 209,749,761 =
P 964,626,960
7. Financial Assets at FVPL Acquisitions 149,955,537 82,523,235
Maturities (40,039,622) (826,243,352)
Net change in fair value 8,181,615 (11,157,082)
The Group entered into an investment management agreement with third party banks for the disposition of
=
P 327,847,291 =
P 209,749,761
its investible funds with banks‟ full discretion. The fair value of the investment as at December 31, 2012
and 2011 amounted to =274.6
P million and =207.9
P million, respectively.
9. Receivables
Mark-to-market gain on financial assets at FVPL amounted to =65.1
P million and =7.4
P million in 2012 and
2011, respectively. This account consists of:

8. Available-for-sale Investments 2012 2011

Receivables from:
This account consists of: Trading participants (Note 25) =
P 62,737,616 =
P 56,494,988
Listed companies 7,380,176 4,353,073
2012 2011 Data vendors 10,363,355 4,686,260
Short-term government debt securities =
P– =
P 42,342,741 Accrued interest receivable 2,369,199 3,149,142
Long-term: Advances to officers and employees 6,627,588 4,688,196
Government debt securities 277,647,291 135,154,591 Others 215,610 1,674,084
Corporate bonds 50,000,000 31,716,429 89,693,544 75,045,743
327,647,291 166,871,020 Less allowance for impairment losses 2,603,946 2,603,946
Equity securities 3,078,000 3,414,000 =
P 87,089,598 =
P 72,441,797
Less allowance for impairment losses 2,878,000 2,878,000
200,000 536,000 Receivables generally have terms of 30 days, except for the receivables from data vendors which are
Total long-term available-for-sale investments 327,847,291 167,407,020 normally collected within 45 days.
=
P 327,847,291 =
P 209,749,761
As at December 31, 2012 and 2011, receivables from trading participants and listed companies with total
The short-term government debt securities earn annual interest rates ranging from 6.50%, 4.25% to carrying value of =2.6
P million, which were specifically identified to be impaired, were fully provided with
11.00% and 4.07% to 11.00% in 2012, 2011 and 2010, respectively. Short-term government debt allowance.
securities as of December 31, 2011 matured in February and April 2012.
There are no movements in the allowance for impairment losses during the year. The movements in the
Peso-denominated long-term government debt securities earn annual interest rates ranging from 5.38% to allowance for impairment losses in 2011 follow:
6.00%, 5.75% to 6.00% and 5.25% to 11.00% in 2012, 2011 and 2010, respectively, while US dollar-
denominated corporate bonds earn annual interest rates ranging from 8.25% to 8.38% in 2010. 2011
Government debt securities as at December 31, 2012 and December 31, 2011 will mature in 2015-2027 Trading Listed
and 2015-2021, respectively. Corporate bonds as at December 31, 2012 and December 31, 2011 will Participants Companies Others Total
mature in 2014-2019 and 2014-2017, respectively. Balance at beginning of year =
P 67,788 =
P 4,715,918 =
P 27,000 =
P 4,810,706
Provision for impairment loss 34,880 480,000 – 514,880
Interest income earned from AFS investments amounted to =16.0
P million, =25.6
P million and =67.7
P Recoveries – (2,721,640) – (2,721,640)
million in 2012, 2011 and 2010, respectively (see Note 17). Balance at end of year =
P 102,668 =
P 2,474,278 =
P 27,000 =
P 2,603,946

As at December 31, 2012 and 2011, movements of net unrealized gain on AFS investments are as
follows:

2012 2011
Balance at beginning of year =
P 5,062,059 =
P 16,219,141
Net unrealized gains (losses) on
AFS investments for the year 8,181,615 (11,157,082)
Net change in fair value 8,181,615 (11,157,082)
Balance at end of year =
P 13,243,674 =P 5,062,059
10. Property and Equipment Condominium for the purpose of holding title to the parcel of land where the Exchange Plaza is located and
other common areas of the condominium. The PSE‟s share in the parcel of land where the condominium is
The composition of and movements in property and equipment are as follows: located and the common areas of the condominium is classified under Land. The donation is divided into
two tranches consisting of 120 and 176 shares, each valued at =63,117,630
P and =92,572,524,
P
December 31, 2012 respectively. Such shares were received by the Exchange on December 29, 1994 for the 120 shares and
Office on January 15, 1995 for the 176 shares and were valued at fair market value of the land at the time of
Furniture, donation.
Computer Fixtures,
Trading Hardware Communication
System Building and Equipment Transportation
Trading System Equipment. This represents software and hardware costs. Software costs cannot be
Land Buildings Equipment Improvements Peripherals and Others Equipment Total separately classified as an intangible asset as this is an integral part of the related hardware.
Cost
At beginning of year =
P 155,690,154 =
P 224,895,034 =
P 447,465,365 =
P 154,940,111 = P 186,459,925 =
P 79,455,835 =
P 12,600,085 =P 1,261,506,509 11. Investment in an Associate
Additions – – – 4,703,739 45,408,286 6,113,102 5,666,071 61,891,198
Disposals – – – (2,295,280) (8,485,714) (3,555,624) (1,788,300) (16,124,918)
At end of year 155,690,154 224,895,034 447,465,365 157,348,570 223,382,497 82,013,313 16,477,856 1,307,272,789 This account represents the 20.98% interest in Philippine Dealing System (PDS) Holdings:
Accumulated
Depreciation 2012 2011
At beginning of year =
P– =P 152,977,457 =
P 234,844,386 =
P 129,975,505 = P 154,033,163 =
P 64,117,699 =
P 5,449,574 = P 741,397,784
Acquisition cost =
P 137,050,657 =
P 137,050,657
Depreciation – 8,995,801 38,081,366 6,821,668 15,959,422 4,859,020 2,610,452 77,327,729
Disposals – – – (3,809) (4,609,663) (3,457,594) (1,754,177) (9,825,243) Accumulated equity in net income of an associate:
At end of year – 161,973,258 272,925,752 136,793,364 165,382,922 65,519,125 6,295,849 808,890,270 Balance at beginning of year 56,184,307 26,120,245
Net Book Value =
P 155,690,154 = P 62,921,776 =
P 174,539,613 =P 20,555,206 = P 57,999,575 =
P 16,494,188 =
P 10,182,007 = P 498,382,519 Share in net income of investee 38,773,027 30,064,062
Balance at end of year 94,957,334 56,184,307
December 31, 2011 Impairment losses at beginning and end of year (20,489,418) (20,489,418)
Office =
P 211,518,573 =
P 172,745,546
Furniture,
Computer Fixtures,
Trading Hardware Communication Summarized financial information of PDS Holdings is as follows (amounts in millions):
System Building and Equipment Transportation 2012 2011
Land Buildings Equipment Improvements Peripherals and Others Equipment Total
Total assets =
P 1,138.6 =
P 915.1
Cost
At beginning of year =
P 155,690,154 =
P 224,895,034 =
P 447,398,401 =
P 151,269,826 =P 170,766,432 =
P 77,123,568 =
P 14,411,995 =P 1,241,555,410 Total liabilities 129.0 90.1
Additions – – 66,964 6,902,981 20,744,076 6,457,746 3,157,321 37,329,088 Revenue 749.6 601.3
Disposals – – – (3,232,696) (5,050,583) (4,125,479) (4,969,231) (17,377,989) Net income 184.8 143.3
At end of year 155,690,154 224,895,034 447,465,365 154,940,111 186,459,925 79,455,835 12,600,085 1,261,506,509
Accumulated
Depreciation
12. Other Noncurrent Assets
At beginning of year – 143,981,656 195,554,242 123,380,386 140,206,805 62,757,533 5,357,991 671,238,613
Depreciation – 8,995,801 39,290,144 6,595,119 13,961,610 4,127,657 2,146,944 75,117,275 This account consists of:
Disposals – – – – (135,252) (2,767,491) (2,055,361) (4,958,104)
At end of year – 152,977,457 234,844,386 129,975,505 154,033,163 64,117,699 5,449,574 741,397,784
Net Book Value =
P 155,690,154 =
P 71,917,577 =
P 212,620,979 =
P 24,964,606 =
P 32,426,762 =
P 15,338,136 =
P 7,150,511 =P 520,108,725
2012 2011
Computer software - net =
P 21,402,479 =
P 153,858
Other investments (Note 15) 10,480,181 10,480,181
The cost of fully depreciated assets still in use by the Group amounted to =308.3
P million and Deposits in banks 331,824 326,961
=307.7
P million as at December 31, 2012 and 2011, respectively. The Group has no idle property and Others 1,152,461 64,035
equipment as at December 31, 2012 and 2011.
=
P 33,366,945 =
P 11,025,035

Buildings. These represent properties donated by Philippine Realty and Holdings Corporation (PRHC) and
Computer Software. The movements in this account follows:
Ayala Land, Inc. (ALI) and a condominium unit at the Philippine Stock Exchange Centre in Pasig City.
2012 2011
Cost:
Land. This represents shares in the condominium corporation donated to the Exchange. ALI established a
Balance at beginning of year =
P 36,547,566 =
P 36,547,566
stock condominium corporation with the corporate name of Tower One and PSE Exchange Plaza
Additions 24,637,095 –
Balance at end of year 61,184,661 36,547,566
Accumulated amortization:
Balance at beginning of year 36,393,708 31,285,215
Additions (Note 18) 3,388,474 5,108,493
Balance at end of year 39,782,182 36,393,708
Net book value =
P 21,402,479 =
P 153,858
 In October 2010, the Parent‟s BOD authorized the termination of the letter of intent with New York Stock 15. Donated Capital
Exchange and to proceed with the Asean Linkage using a different model. The Parent‟s share in the Asean
Linkage platform was initially recorded as computer software and upon termination, this was reported as a As at December 31, 2012 and 2011, this account consists of donations from:
loss on asset write-off amounting to =13.7
P million (see Note 19). As at December 31, 2010, no
depreciation expense was recorded since the asset was never used. ALI (Note 10) =
P 235,690,154
PRHC (Note 10) 139,542,000
Other Investments. These pertain to the donation of Fort Bonifacio Development Corporation (FBDC) in FBDC (Note 12) 10,480,181
favor of the Parent Company of 10,480,181 shares of Crescent West Development Corporation (CWDC) United States Agency International Development 1,925,250
(see Note 15). =
P 387,637,585

Deposits in Banks. These represent the balance of =0.3

P million in deposits in bank posted by the Parent On November 12, 2002, the Parent Company and FBDC executed a Definitive Agreement with the
Company in favor of National Labor Relations Commission (NLRC) in connection with pending labor cases following salient terms and conditions: (i) the Parent Company agrees to relocate its headquarters, majority
which are still on appeal. Under the Rules of NLRC, the amount may not be withdrawn by the Parent of its management offices and its unified trading operations in equity securities for the National Capital
Company until final disposition of the cases. Region (NCR) to the Bonifacio Global City; (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
13. Accounts Payable and Other Current Liabilities Company; 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, majority of its management offices and its unified
This account consists of: trading operations in equity securities for the NCR.

2012 2011 Based on such agreement, all outstanding shares of stocks of CWDC shall be donated by FBDC to the
Due to SEC =
P 82,398,201 =
P 76,077,971 Parent Company on the following dates:
Trade payables 37,862,248 41,130,159
Accrued expenses: Date of Donation %/Number of Shares to be Donated
Compensation and other related staff costs 13,045,469 12,768,090 January 7, 2005 14.32% or 5,247,419 shares
Repairs and maintenance 9,463,775 3,768,390 January 7, 2006 14.28% or 5,232,762 shares
Other accrued expenses 4,460,477 4,587,850 January 7, 2007 14.28% or 5,232,762 shares
Professional fees 4,272,184 2,379,121 January 7, 2008 14.28% or 5,232,762 shares
Occupancy costs 3,791,177 3,270,303 January 7, 2009 14.28% or 5,232,762 shares
Telecommunication 2,635,230 219,961 January 7, 2010 14.28% or 5,232,762 shares
Travel and transportation 114,456 790,027 January 7, 2011 14.28% or 5,232,762 shares
Penalties – 182,500
Payable to government agencies 13,799,949 8,960,391 Following the Definitive Agreement, on January 7, 2006 and 2005, FBDC executed a Deed of Conditional
Others 4,184,802 5,412,860 Donation in favor of the Parent Company, which covers the transfer of 5,232,762 shares and 5,247,419
=
P 176,027,968 =
P 159,547,623 shares of CWDC, respectively, for =10.5
P million. Such shares received were classified as Other
noncurrent assets (see Note 12).
Due to SEC represents the amount payable for license fees to operate an exchange imposed under
Section 35 of the SRC entitled “Additional Fees of Exchanges”, which are subsequently billed and collected In June 2007, the donation of all remaining CWDC shares was deferred pending negotiations among the
from active trading participants. Parent Company, FBDC and ALI for the joint development, pursuant to a Memorandum of Understanding
dated April 26, 2007, of an iconic office building in Bonifacio Global City for the relocation of the Parent
Trade payables, accrued expenses, payable to government agencies and others are noninterest-bearing and Company‟s headquarters, majority of its management offices and unified trading operations in equities
are normally settled within the next financial year. securities for the NCR to the Bonifacio Global City.

14. Deferred Fees and Others As at December 31, 2012, negotiations among the Parent Company, FBDC and ALI are still ongoing.

This account consists of:

2012 2011
Listing fees =
P 16,530,468 =
P 10,534,202
Data feed income 8,671,496 7,553,813
Fines and penalties 3,397,822 1,525,001
Deferred output tax 3,104,263 1,865,382
Other fees 1,715,644 1,843,150
=
P 33,419,693 =
P 23,321,548
16. Equity Ownership in the Exchange
The SRC provides that no industry or business group may beneficially own or control, directly or indirectly,
This account consists of: more than 20% of the voting rights of the Exchange. On August 13, 2007, the SEC imposed on the
Exchange a penalty of =101,100
P plus a daily fine of =100
P for every day of delay of compliance because
2012 2011 the total trading participant ownership in the Exchange exceeds the allowable limit. Starting March 2009,
Capital stock - =
P 1.00 par value the daily fine for every day of delay of compliance is =500.
P The Exchange is studying the alternative
Authorized - 97,800,000 shares courses of action in order to comply with the SRC.
Issued - 61,258,130 shares in 2012
and 61,208,733 shares in 2011 =
P 61,258,130 =
P 61,208,733 Capital Management
Additional paid-in capital 1,038,100,114 1,018,810,564 The Group‟s objectives when managing capital are (a) to safeguard the Group‟s ability to continue as a
Treasury stock (200,012 shares in 2012 and 2011) (68,000,012) (68,000,012) going concern, so that it continues to provide returns for shareholders and benefits for other stakeholders;
=
P 1,031,358,232 =
P 1,012,019,285 (b) to support the Group‟s stability and growth; and (c) to provide capital for the purpose of strengthening
the Group‟s risk management capability.
The following summarizes the information on the Company's registration of securities under the Securities
The Group considers all the components of its total equity as capital.
Regulation Code:
The Group actively and regularly reviews and manages its capital structure to ensure optimal capital
Authorized No. of Issue/Offer
Date of SEC Approval Shares Shares Issued Price structure and shareholder returns, taking into consideration the future capital requirements of the Group
and capital efficiency, prevailing and projected profitability, projected operating cash flows, projected
August 8, 2001 36,800,000 9,200,008 =
P 31.16
capital expenditures and projected strategic investment opportunities. No changes were made in the
January 28, 2004 – 6,077,505 120.50
objectives, policies or processes as at December 31, 2012 and 2011.
September 12, 2008 61,000,000 – –

The Group adopts a practice of providing shareholders with regular dividends.

Shares Amount
2012 2011 2012 2011
Balance at beginning of year 61,208,733 30,704,370 =
P 61,208,733 =
P 30,704,370 17. Interest Income
Issuance of stock dividends during the year – 30,504,363 – 30,504,363
Issuance of capital stock (Note 28) 49,397 – 49,397 – This account consists of interest income from:
Balance at end of year 61,258,130 61,208,733 =
P 61,258,130 =
P 61,208,733
2017 2011 2010
Time deposits =
P 38,285,189 =
P 33,251,480 =
P 10,244,544
On April 13, 2011, the Parent Company‟s BOD approved the issuance of the 100% stock dividend
AFS investments 16,003,310 25,571,279 67,658,893
declared by the Exchange to stockholders of record as at May 30, 2011. 482,421
Cash in banks 938,960 655,138
Car loan – – 34,470
Parent Company‟s Cash Dividends =
P 54,770,920 =
P 59,761,719 =
P 78,593,045

Dividend
Date of Declaration Per Share Total Amount Record Date Payment Date 18. Cost of Services
March 14, 2012 =
P 7.00 =
P 427,061,012 March 29, 2012 April 18, 2012
March 9, 2011 12.00 366,052,356 March 24, 2011 April 11, 2011 This account consists of:
March 10, 2010 10.00 304,550,060 March 25, 2010 April 21, 2010
February 25, 2009 8.00 243,178,000 March 12, 2009 March 25, 2009 2012 2011 2010
Compensation and other related staff costs
The balance of unappropriated retained earnings includes the accumulated equity in net income of an (Note 20) =
P 73,676,926 =
P 69,827,303 =
P 64,345,064
associate and subsidiaries amounting to =189.0
P million and =150.2
P million as at December 31, 2012 and Depreciation (Note 10) 53,574,537 52,331,528 34,385,066
2011, respectively. The amount is not available for dividend distribution until such time that the Parent Repairs and maintenance 33,261,358 30,386,397 15,933,361
Company receives dividends from the respective associate and subsidiaries Communication 8,431,961 9,405,923 10,158,731
Amortization of computer software
(Note 12) 3,388,474 5,108,493 5,085,741
As at December 31, 2012 and 2011, the total appropriated retained earnings is =71.0 P million. In August
Office supplies 666,348 648,655 693,661
13, 2008, the Parent Company's BOD appropriated =68.0P million in connection with its acquisition of
Insurance 93,964 87,157 125,671
treasury shares. In 2007, the Parent Company's BOD appropriated =3.0 P million to cover potential liability
Others 3,860,843 – –
cases filed against the Parent Company, its directors and/or its officers (see Note 27).
=
P 176,954,411 =
P 167,795,456 =
P 130,727,295
19. General and Administrative Expenses 22. Income Tax

This account consists of: The provision for income tax consists of:
2012 2011 2010
2012 2011 2010
RCIT =
P 165,029,021 =
P 139,802,622 =
P 125,002,938
Compensation and other related staff costs
Final 12,739,705 11,722,983 14,976,414
(Note 20) =
P 145,692,787 =
P 104,497,867 =
P 114,341,836
Deferred 486,418 1,704,554 (66,811)
Occupancy costs (Note 21) 44,708,795 41,579,481 44,097,971
Professional fees 43,568,019 56,236,423 29,988,040 =
P 178,255,144 =
P 153,230,159 =
P 139,912,541
Depreciation (Note 10) 23,753,192 22,785,747 18,613,281
Public relations 12,606,406 6,278,268 3,329,581 As at December 31, 2012 and 2011, the Group did not recognize the deferred tax assets on the following
Membership development 8,990,373 7,403,478 6,129,895 temporary differences since management believes that these deductible temporary differences may not be
Taxes and licenses 7,713,557 7,820,350 5,897,397 realized in the future:
Office supplies 3,973,655 3,318,840 3,757,482
2012 2011
Market development 3,865,126 4,351,725 1,642,992
Travel and transportation 3,472,150 6,202,745 5,637,096 Allowance for impairment losses on investment, in an associate and AFS
investment =
P 23,367,418 =
P 23,367,418
Repairs and maintenance 2,641,171 2,120,810 8,779,059
Retirement liability 9,524,520 7,212,481
Foreign exchange loss 2,555,313 438,224 8,794,848
Mark-to-market loss on financial assets at FVPL – 4,924,795
Insurance 2,001,390 2,075,510 1,858,290
Communication 1,362,555 2,073,941 1,521,648 =
P 32,891,938 =
P 35,504,694
Donations and contributions 1,315,000 1,000,864 608,775
Meetings and conferences 1,096,083 1,296,747 902,124 The components of the net deferred tax assets are as follows:
Recovery of impairment losses - net (Note 9) – (2,206,760) (9,000)
2012 2011
Loss on asset write-off – – 13,692,355
Other expenses 18,864,181 5,523,282 6,884,153 Deferred tax assets:
Unamortized past service costs =
P 7,159,831 =
P 6,746,594
=
P 328,179,753 =
P 272,797,542 =
P 276,467,823
Accrued expenses 2,281,692 3,436,152
Allowance for impairment losses 781,184 781,184
20. Compensation and Other Related Staff Costs Unrealized foreign exchange losses 670,379 47,645
NOLCO – 2,572,576
This account consists of: 10,893,086 13,584,151
Deferred tax liabilities:
2012 2011 2010 Retirement asset (2,792,696) (2,299,850)
Salaries and wages (Note 25) =
P 132,088,582 =
P 127,722,473 =
P 110,810,887 Net unrealized gains on available-for-sale investments (1,831,475) (2,134,788)
Retirement cost (Notes 23 and 25) 20,736,146 16,587,999 10,824,369 (4,624,171) (4,434,638)
Other employee benefits (Note 28) 66,544,986 30,014,698 57,051,644 =
P 6,268,915 =
P 9,149,513
=
P 219,369,714 =
P 174,325,170 =
P 178,686,900
The reconciliation between the statutory tax rates and the Group‟s effective tax rates on income before
Other employee benefits include the share-based payment expense amounting to =2.6
P million and income tax is as follows:
=4.4
P million in 2012 and 2010, respectively (see Note 28). There were no expenses related to share-
based payment in 2011. 2012 2011 2010
Provision for income tax at
21. Occupancy Costs statutory income tax rate 30.00% 30.00% 30.00%
Adjustments for:
This account consists of: Interest income subjected to final tax (3.63%) (3.51%) (1.54%)
Equity in net income of an associate (1.45%) (1.61%) (1.43%)
2012 2011 2010 Change in unrecognized deferred tax assets 1.80% 2.61% 0.06%
Utilities =
P 24,943,404 =
P 22,398,132 =
P 25,325,545 Nondeductible expenses (4.51%) (0.10%) (1.99%)
Condominium dues 10,523,785 10,518,690 9,821,697 Effective income tax rate 22.21% 27.39% 25.10%
Security and janitorial services 9,241,606 8,662,659 8,950,729
=
P 44,708,795 =
P 41,579,481 =
P 44,097,971
23. Retirement Plan Changes in the present value of the defined benefit obligation are as follows:

The Parent Company has a funded noncontributory defined benefit retirement plan, while SCCP has an Parent Company SCCP
unfunded noncontributory defined benefit retirement plan covering all their regular employees. The benefits 2012 2011 2012 2011
are accumulated based on years of service and compensation per year of credited service. Balance at beginning of year =
P 93,247,257 =
P 69,204,250 =
P 10,829,810 =
P 9,163,915
Actuarial (gains)/losses (26,112,003) 13,510,032 306,599 571,642
The principal actuarial assumptions used in determining retirement liabilities as at January 1, 2012 and Current service cost 15,259,649 11,274,827 1,514,308 1,374,521
2011 are shown below: Actual benefits paid (971,080) (6,451,203) – (1,002,385)
Interest cost on benefit obligation 5,865,252 5,709,351 696,357 722,117
Balance at end of year =
P 87,289,075 =
P 93,247,257 =
P 13,347,074 =
P 10,829,810
Parent Company SCCP
2012 2011 2012 2011
Discount rate 6.11% 6.29% 6.28% 6.43% The movements in the fair value of plan assets recognized by the Parent Company follow
Expected rate of return on assets 4.00% 6.00% – –
Future salary increases 10.00% 10.00% 10.00% 10.00% 2012 2011
Balance at beginning of year =
P 57,388,509 =
P 61,457,726
The overall expected rate of return on plan assets is determined based on the market prices prevailing on Actual benefits paid (971,080) (6,451,203)
that date applicable to the period over which the obligation is to be settled. Expected return on plan assets 4,016,186 3,493,927
Actuarial gains/(losses) 3,951,110 (1,111,941)
The latest actuarial valuation studies of the retirement plan of the Parent Company and SCCP were made Contributions 20,066,927 –
on December 31, 2012. Balance at end of year =
P 84,451,652 =
P 57,388,509

The retirement expense included under “Compensation and other related staff costs” in the consolidated The actual return on the plan assets of the Parent Company amounted to =8.0
P million, =2.4
P million, and
statements of comprehensive income are as follows: =1.6
P million in 2012, 2011 and 2010, respectively.

2012 2011 2010 The assets of the Parent Company‟s retirement Plan are being held by a trustee bank. The investing
Current service cost =
P 16,773,957 =
P 12,649,348 =
P 9,212,561 decisions of the Plan are made by Board of Trustees of the Retirement Plan. The following table presents
Interest cost 6,561,609 6,431,468 5,653,195 the carrying amounts and estimated fair values of the assets of the Plan:
Expected return on plan assets (4,016,186) (3,493,927) (2,705,002)
Net actuarial loss recognized 1,416,766 1,001,110 553,615 2012 2011
Reversal of retirement benefits – – (1,890,000) Carrying
=
P 20,736,146 =
P 16,587,999 =
P 10,824,369 Carrying Amount Fair Value Amount Fair Value
Cash and cash equivalents =
P 26,316,818 =
P 26,316,818 =
P 19,418,494 =
P 19,418,494
The Parent Company‟s retirement asset included in the consolidated balance sheets as at December 31, Investment in equity securities 11,502,399 11,502,399 614,845 614,845
2012 and 2011 are as follows: Investment in government
securities, bonds and other debt
2012 2011 instruments 46,028,861 46,028,861 36,837,133 38,537,126
Present value of the obligation =
P 87,289,075 =
P 93,247,257 Others 603,574 603,574 518,037 518,037
Fair value of plan assets (84,451,652) (57,388,509) =
P 84,451,652 =
P 84,451,652 =
P 57,388,509 =
P 57,388,509
2,837,423 35,858,748
Unrecognized actuarial losses (12,146,411) (43,524,916) The Plans‟ assets and investments consist of the following:
Retirement asset =
P 9,308,988 =P 7,666,168
 Cash and cash equivalents includes regular savings and time deposits.
The net unfunded retirement obligation of SCCP recognized in the consolidated balance sheets as at  Investment in equity securities consists of listed equity securities.
December 31, 2012 and 2011 are as follows:
 Investments in government securities, consisting of retail treasury bonds that bear interest ranging
2012 2011 from 4.89% to 6.25% and have maturities from March 2016 to October 2037; and fixed-income
Present value of the obligation =
P 13,347,074 =
P 10,829,810 treasury notes that bear interest ranging from August 2017 to August 2037.
Unrecognized actuarial losses (3,822,554) (3,617,329)
Retirement liability =
P 9,524,520 =
P 7,212,481  Investments in debt and other securities consist of long-term corporate bonds, which bear interest
ranging from 5.45% and have maturity of November 2019.

 Other financial assets held by the Plan are primarily accrued interest income on cash deposits and debt
securities and dividend receivables.
 Amounts for the current and previous years are as follows: The details of transactions with related parties are as follows:
Parent Company Amount/
2012 2011 2010 2009 2008 Volume of
Present value of the obligation =
P 87,289,075 =
P 93,247,257 =
P 69,204,250 =
P 45,201,713 =
P 35,623,584 Category Year Transactions Outstanding Balance Terms Conditions
Fair value of plan assets (84,451,652) (57,388,509) (61,457,726) (38,741,708) (14,509,085)
Deficit 2,837,423 35,858,748 7,746,524 6,460,005 21,114,499 Stockholders
Experience adjustment on plan liabilities (10,553,135) (737,088) (2,570,263) (1,918,317) 19,205,036 Trading participants-
Experience adjustment on plan assets 3,951,110 (1,111,941) (1,139,466) 100,965 (813,601) Revenues
Trading-related fees:
SCCP Transaction 2012 =
P 101,279,075 =
P 62,737,616 30 days term, non- Unsecured; with
interest bearing impairment
2012 2011 2010 2009 2008
2011 120,029,889 56,494,988
Present value of the obligation =
P 13,347,074 =
P 10,829,810 =
P 9,163,915 =
P 7,221,418 =
P 4,097,548
2010 97,486,442 45,008,470
Deficit 13,347,074 10,829,810 9,163,915 7,221,418 4,097,548
Experience adjustment on plan liabilities 195,692 (300,777) 170,224 157,451 229,566
Block sales 2012 30,632,267 − Collectible monthly,
2011 22,229,243 − non-interest bearing
24. Basic/Diluted Earnings Per Share 2010 23,251,314 −

Basic earnings per share are calculated by dividing the net income for the year by the weighted average Subscription 2012 16,469,264 − Collectible monthly,
number of common shares outstanding as at balance sheet date. 2011 14,996,700 − non-interest bearing
2010 16,658,219 −
The basic and diluted earnings per share are the same as the dilutive effect of potential common shares
from share-based payments have no impact. Service fees 2012 =
P 316,376,987 −
2011 254,034,164 −
2012 2011 2010 2010 215,604,239 −
Net income (a) =
P 624,166,134 =
P 406,192,157 =
P 417,497,291
Weighted average number of outstanding common shares (b) 61,008,721 61,039,839 61,123,022* Other revenues 2012 657,021 −
Basic/diluted earnings per share (a/b) =
P 10.23 =
P 6.65 =
P 6.83 2011 843,643 −
*Restated for the effect of the 100% stock dividends declared in 2011. 2010 3,622,976 −

The receivable from trading participants included in the balance sheets are net of allowance for impairment
25. Related Party Transactions
losses of =102,668
P in 2012 and 2011.
Parties are considered to be related if one party has the ability, directly or indirectly, to control the other
party or exercise significant influence over the other party in making financial and operating decisions.
Other revenues include recoveries from printing of data transaction report, penalty on trading floor,
Parties are also considered to be related if they are subject to common control or common significant
cancellation of matched orders, and other fees.
influence. Related parties may be individuals or corporate entities. Related parties include trading
participants that are stockholders of the Group. The Group, in its normal course of business, has
transactions with related parties. 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 profit or loss as
follows:

2012 2011 2010

Short-term employee benefits =
P 58,894,859 =
P 45,741,163 =
P 39,171,278
Share-based payments
(Note 28) 2,679,528 – 6,463,639
Post-employment pension and medical benefits
(Note 23) 1,276,703 817,129 701,982
=
P 62,851,090 =
P 46,558,292 =
P 46,336,899

Short-term employee benefits include salaries, paid annual leave, vacation and sick leave, profit sharing and
bonuses, and non-monetary benefits.
26. Operating Segment The rollforward analysis of number of shares on ESPP is as follows:

The Group has one reportable business segment which is the equity securities market. The equity 2012 2011
securities market provides trading, clearing, depository and information services for the equity market. The Outstanding at beginning of year – 654
Group also has one geographical segment and derives all its revenues from domestic operations. The Granted during the year 50,000 –
financial information about the sole business segment is presented in the consolidated financial statements. Exercised during the year (49,397) –
Expired during the year – (654)
The management monitors the operating results of its business segment for the purpose of making Outstanding at end of year 603 –
decisions about resource allocation and performance assessment. The segment performance is evaluated
based on operating profit or loss and is measured consistently with the income before income tax in the In 2012, a total of 50,000 shares of the Exchange were available for availment. Subscription period was
consolidated financial statements. from November to December 2012 with an exercise price of =333.51
P per share while the average fair
value at grant date was =386.17,
P which is based on quoted market price.
27. Contingencies
Out of the 49,397 shares of the Exchange that were availed of and fully paid by the participants under the
In 2007, the Parent Company‟s BOD appropriated a portion of its retained earnings amounting to ESPP, 43,888 shares and 5,509 shares were availed by the Exchange‟s and SCCP‟s employees,
=3.0
P million to cover potential liability cases filed against the Parent Company, its directors and/or respectively.
officers. As at March 13, 2013, the said cases are still pending before the courts and quasi-judicial
agencies. The amount of the appropriation which is based on available relevant information as at In 2010, a total of 50,012 shares of the Exchange were available for availment, which consist of 50,000
December 31, 2012, will be reassessed periodically to reflect material developments made known to the original shares for the third tranche and the remaining 12 shares from the second tranche. Subscription
Parent Company. period was from July to December 2010 with an exercise price of =237.46
P per share while the average
fair value at grant date was =326.62,
P which is based on quoted market price.
The SCCP, as the central counterparty to stock exchange transactions, has contingent liabilities pertaining
to outstanding trades as at December 31, 2012 and 2011. Details of stock exchange transactions Total additional paid-in capital arising from share-based payments amounted to =19.3
P million and
outstanding as at balance sheet dates are as follows: =18.2
P million in 2012 and 2010, respectively. Total expense arising from share-based payments
2012 2011 amounted to =2.7
P million and =6.4
P million in 2012 and 2010, respectively.
Value of shares not yet delivered (net selling) =
P 8,502,722,736 =
P 6,439,651,225
Amount of purchases unpaid (due clearing) 2,661,568,475 2,310,668,164 There were no granted shares for availment of the ESPP in the year 2011.
=
P 11,164,291,211 =
P 8,750,319,389
29. Clearing and Trade Guaranty Fund
All transactions outstanding as at December 31, 2012 and 2011 were subsequently settled in January
2013 and 2012, respectively. Accordingly, no failed trades occurred from these transactions. The CTGF is a risk management tool designed to protect the market against the settlement risks of trading
participants. Each active trading participant‟s monthly contribution is equivalent to 1/500 of 1% of the
28. Share-based Payments members‟ trade value, net of block sales and cross transactions of the same flag.

On April 11, 2012, the BOD of the Exchange approved the ESPP for its employees and SCCP‟s employees, Starting in 2010, the CTGF was presented off balance sheet and is not included within the noncurrent
with the following terms and condition: assets and noncurrent liabilities in the consolidated balance sheets. The revised presentation is to better
reflect the trading participants‟ contribution as trust monies and does not result in a change in net assets
a. number of shares allotted for the offering is 150,000 shares for 3 years or about 0.25% of the of the Group.
outstanding capital stock of the Exchange. Each offering consists of 50,000 shares;
b. all regular employees in good standing of the Exchange and SCCP with at least 1 year of continuous
service as at the offer date is eligible;
c. offer date is annual for a period of 3 years exercisable from July to December of each year;
d. if the exercise period shall lapse without the allocation having been exercised in full, the ESPP shares
corresponding to the unexercised allocation will be forfeited and reverted back to the pool of
unexercised allocation to be made available to interested participants;
e. offer price is fixed based on Volume Weighted Average Price of PSE shares of the month preceding the
offer date;
f. discount of 10% from the offer price; and
g. cash payment is required during the exercise period.
The CTGF consists of: As at December 31, 2012 and 2011, AFS investments with principal amounts of =111.10P million and =
P
378.71 million, respectively, will mature within one year from balance sheet date.
2012 2011
Principal contributions from: Net unrealized gains (losses) from CTGF investments held as AFS follows:
Trading participants:
Balance at beginning of year =
P 289,233,115 =
P 235,686,735 2012 2011
Contributions 44,102,894 53,546,380 Balance at beginning of year =
P 7,279,677 =
P 6,961,287
Balance at end of year 333,336,009 289,233,115 Change in fair value 16,278,292 318,390
The Exchange 80,000,000 80,000,000 Balance at end of year =
P 23,557,969 =
P 7,279,677
413,336,009 369,233,115
Accumulated income: For the management and administration of CTGF, the SCCP is entitled to a management fee computed at
Balance at beginning of year 208,472,153 189,675,565 0.1% of CTGF fund level as at the close of year. Management fee amounting to =0.7
P million and
Interest income - net of management fee of =0.6
P million in 2012 and 2011, is included under “Other revenues” account in the Group‟s profit or loss.
=
P 0.7 million and =
P 0.6 million in 2012 and 2011, respectively 20,213,040 18,796,588
Balance at end of year 228,685,193 208,472,153 Any proceeds from the CTGF shall not be used for any purpose other than for:
Net unrealized gains on AFS investments 23,557,969 7,279,677
252,243,162 215,751,830 a. Payment of the net money obligations of a defaulting buying member in order to settle a failed trade;
=
P 665,579,171 =
P 584,984,945
b. Buy-in of relevant securities due from a defaulting selling member in order to settle a failed trade;
Contributions c. The satisfaction of losses, liabilities and expenses of the SCCP incidental to the operation of its
In order for the SCCP to effectively implement its Fails Management function, the CTGF must be adequate clearing and settlement functions and the management of the CTGF;
to cover any unsettled trade by any member on any settlement day. Fails Management aims to settle a
failed trade due to nonpayment of cash and/or nondelivery of securities by clearing members. In this d. For use as collateral in securing credit facilities from the Settlement Banks for the purpose of settling a
regard, the Group continuously builds up the CTGF through the monthly contributions collected from the Failed Trade;
clearing participants and collection of initial contributions from new and returning trading participants.
e. For use as collateral in borrowing securities through the Securities Borrowing and Lending Facility; and
On January 28, 2003, the SCCP‟s BOD approved the amendment of its rules on CTGF providing for the
f. Payment of premium on any insurance policy taken for the CTGF.
non-recourse of all CTGF contributions to members. In July 2007, the SCCP‟s 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. This is subject to approval by the SEC. 30. Reclassification of Accounts

Assets of CTGF The comparative information has been reclassified from the consolidated financial statements previously
The assets of the CTGF consist of: presented to conform to the presentation of the statement of comprehensive income for the periods ended
December 31, 2012, 2011 and 2010.
2012 2011
Cash in bank =
P 15,284,127 =
P 22,169,787 31. Events after the Reporting Date
Accounts receivable 3,611,865 3,528,098
Accrued interest receivable 9,190,519 3,537,774 On March 13, 2013, the BOD approved the declaration of regular cash dividends of =4.59P per share and
AFS investments - debt securities: special cash dividends of =4.41
P per share out of the unappropriated retained earnings of the Parent
Principal amount 566,920,000 541,333,000 Company as at December 31, 2012 in favor of stockholders of record as at April 2, 2013. The cash
Net unamortized premium (discount) 47,680,936 7,722,180 dividends will be paid on April 26, 2013.
Net unrealized gains on AFS investments 23,557,969 7,279,677
666,245,416 585,570,516 On February 4, 2013, the SEC resolved to grant a provisional license to SCCP to operate as a Securities
Less accrued management fees 666,245 585,571 Depository subject to the fulfillment of several conditions.
=
P 665,579,171 =
P 584,984,945

The CTGF invested on the following:

a. Securities issued or guaranteed by the Republic of the Philippines; and

b. Such other investments as the SCCP‟s BOD may approve, taking into consideration the liquidity
requirements of the clearing fund.
108 | PSE 2012
ANNUAL REPORT
Active
Trading
Participants
Directory
A & A SECURITIES, INC. 101
Shirley Y. Bangayan
(Nominee Trading Participant)
1906 Ayala Avenue Condominium
6776 Ayala Avenue, Makati City
Office: 891-1008 to 10
Exchange: 891-1008 to 10
Telefax: 891-1010
Email: aasec@pldtdsl.net
A. T. DE CASTRO SECURITIES CORP. 104
Alejandro T. de Castro
(Nominee Trading Participant)
7/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-7160 to 63
Exchange: 848-7160 to 63
Telefax: 848-7163
Email: atcastro@info.com.ph
AAA SOUTHEAST EQUITIES, INC. 237
D. Alfred A. Cabangon
(Nominee Trading Participant)
G/F Fortune Life Building
162 Legaspi Street, Legaspi Village,
Makati City
Office: 816-2918
892-9841 to 49 loc. 103
Exchange: 891-9570 to 72
Fax: 812-1831
AB CAPITAL SECURITIES, INC. 112
Lamberto M. Santos, Jr.
(Nominee Trading Participant)
Unit 1401-1403, 14/F Tower One &
Exchange Plaza, Ayala Triangle,
Ayala Avenue, Makati City
Office: 898-7555
Exchange: 891-9135
Fax: 898-7596
Email: abcsi@abcapitalonline.com
www.abcapitalonline.com
ABACUS SECURITIES CORPORATION 102
Paulino S. Soo
(Nominee Trading Participant)
29/F, East Tower, PSE Centre
Exchange Road, Ortigas Center,
Pasig City
Office: 667-8900
Exchange: 667-8900
Fax: Operations 634-5206
Retail/Customer Svc. 634-2109
Accounting 634-2105
Email: customerservice@abacus-sec.com
www.abacus-sec.com
ACCORD CAPITAL
EQUITIES CORPORATION 103
Paul L. Wee
(Nominee Trading Participant)
G/F, Unit EC-05B,
East Tower, PSE Centre, Exchange Rd.,
Ortigas Center, Pasig City
Office: (Trunk Line) 588-1919
24/7 Customer Care: 588-1900
Exchange: 687-0911; 687-0936
Fax: 687-3738
Email: info@accordcapital.ph
www.accordcapital.ph
ALAKOR SECURITIES CORPORATION 232
Gerard Anton S. Ramos
(Nominee Trading Participant)
5/F, Quad Alpha Centrum
125 Pioneer Street, Mandaluyong City
Office: 631-8173;637-4496
Exchange: 634-6928 to 29
Fax: 631-5166
ALPHA SECURITIES CORPORATION 106
Jonathan Joseph S. Kui
(Nominee Trading Participant)
Unit 3003, One Corporate Centre
Julia Vargas Street cor. Meralco Ave.
Ortigas Center, Pasig City
Office: 654-6806 to 07
477-9959; 477-9279; 470-8356
Exchange: 638-6692 to 93
638-6689
Fax: 654-6799
Email: alphasec@pldtdsl.com.ph
ANGPING & ASSOCIATES
SECURITIES, INC. 110
Wilma C. Crisostomo
(Nominee Trading Participant)
Suite 2003-2004, The Peak
107 L. P. Leviste Street,
Salcedo Village, Makati City
Office: 848-2915
Office of the President 810-0930
Office of the EVP 848-2564
Exchange: 891-9115
Fax: 848-2572
Email: Info@angping.com.ph
wcris@angping.com.ph
sgogola@angping.com.ph
ANSALDO, GODINEZ & COMPANY, INC. 111
Mariano U. Godinez
(Nominee Trading Participant)
340 Nueva Street, Binondo, Manila
Office: 242-5124 to 25
242-5127 to 31
Exchange: 634-5160 & 63
634-6232 to 34; 634-6521 to 22
Fax: 242-5121
APEX PHILS. EQUITIES CORPORATION 255
Jose Roberto Delgado
(Nominee Trading Participant)
2/F, Mary Bachrach Building
Port Area, Manila
Office: 527-8888 loc. 219
527-5291
Exchange: 891-8586
Fax: 527-8919; 527-8912
ARMSTRONG SECURITIES, INC. 388
Tony O. King
(Nominee Trading Participant)
20/F, BDO South Tower,
Makati Ave. cor. H. V. dela Costa St.,
Makati City
Office: 878-4043
Exchange: 891-8534; 891-8542
891-8563
Fax: 840-7175
Email: chua.james@bdo.com.ph
sampayo.nilo@bdo.com.ph
ASIA PACIFIC CAPITAL EQUITIES
& SECURITIES CORP. 116
David O. Chua
(Nominee Trading Participant)
24/F, Galleria Corporate Center
EDSA cor. Ortigas Avenue,
Quezon City
Office: 634-5621
Exchange: 891-9550 to 59; 891-8571
Fax: 634-5813
Email: apcap@compass.com.ph
ASIASEC EQUITIES, INC. 118
Gideon G. Sison
(Nominee Trading Participant)
8/F, Chatham House
116 Valero cor. Herrera Streets,
Salcedo Village, Makati City
Office: 845-3421 to 26
Exchange: 891-9370 to 75
Fax: 845-3418
Email: schong@asiasecequities.com
ASTRA SECURITIES CORP. 119
Benito B. H. Ang
(Nominee Trading Participant)
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-6421 to 27
Exchange: 891-9126 to 27
Fax: 848-6428
Email: astrasecurities@gmail.com
ATC SECURITIES, INC. 120
Anselmo Trinidad Jr.
(Nominee Trading Participant)
Unit 6F, 6/F 8101 Pearl Plaza,
Pearl Drive, Ortigas Center, Pasig City
Office: 683-0204; 687-1768
687-2866; 683-0201
Exchange: 891-9337 to 38
Fax: 687-1760
Email: atcsettle@pacific.net.ph
AURORA SECURITIES, INC. 167
Emmanuel Edward C. Co
(Natural Person Trading Participant)
24/F, West Tower, PSE Centre,
Exchange Road, Ortigas Center, Pasig City
Office: 634-8321 to 24
Exchange: 634-8321 to 24
Telefax: 634-8321
Email: ausecinc@pldtdsl.net
B. H. CHUA SECURITIES CORPORATION 124
Michael Li Chua
(Natural Person Trading Participant)
872 G. Araneta Avenue, Quezon City
Office: 742-5850; 742-6032
412-3444
Exchange: 891-9771 to 73
Telefax: 412-3448
BA SECURITIES, INC. 109
Bryan Jan L. Ang
(Nominee Trading Participant)
Room 401-403, CLMC Building
259-267 EDSA, Mandaluyong City
Office: 727-5374; 722-0132
Exchange: 891-9672 to 75
Telefax: 722-0132
basec@ultimate.info.com.ph
BDO SECURITIES CORPORATION 279
Eduardo V. Francisco
(Nominee Trading Participant)
20/F, BDO South Tower, Makati Ave.
cor. H. V. dela Costa St.,Makati City
Office: 878-4070; 840-7000
loc. 6391; 6385; 6382; 6386; 6392; 6068
Exchange: 848-5836; 848-7015
Fax: 840-7175
Email: evf@bdo.com.ph
sampayo.nilo@bdo.com.ph
BELSON SECURITIES, INC. 122
Emmanuel G. Lim
(Nominee Trading Participant)
4/F, Belson House 271 EDSA,
Mandaluyong City
Office: 724-7586 to 90; 724-7580
Exchange: 891-9860 to 68
Fax: 721-9238
Email: belsonsecurities@yahoo.com
BENJAMIN CO CA & CO., INC. 123
Benjamin Co Ca
(Nominee Trading Participant)
Rm. 301-305, Downtown Center Bldg.
516 Q. Paredes St., Binondo, Manila
Office: 241-1261; 241-1345
Exchange: 634-5186 to 90
Fax: 241-1261
Email: benjamincoca168@yahoo.com.ph
BERNAD SECURITIES, INC. 272
Elphege Wong
(Nominee Trading Participant)
3/F, 1033 M. H. del Pilar Street,
Ermita, Manila
Office: 524-5326; 524-5186
524-5267
Exchange: 635-6756 to 60
635-5665
Fax: 523-7907
BPI SECURITIES CORPORATION 126
(No Nominee Trading Participant)
8/F, BPI Head Office Ayala Avenue
cor. Paseo de Roxas,Makati City
Office: Marketing 816-9190; 816-9192
845-5541; 845-5543
Administration 845-5289;816-9678
Operations 845-5735; 816-9554
Exchange: 891-9930; 845-5541
848-5543; 845-5545
Fax: 818-7809; 845-5733
Email: bpitrade@bpi.com.ph
www.bpitrade.com
CAMPOS, LANUZA & CO., INC. 128
Gerardo O. Lanuza Jr.
(Nominee Trading Participant)
20/F, East Tower, PSE Centre
Exchange Road, Ortigas Center,Pasig City
Office: 634-6881 to 87; 634-6888
636-3134; 638-3510
636-3135; 636-3138
Exchange: 636-3001 to 05
Fax: 636-1167
Email: camposlanuza@yahoo.com
CENTURY SECURITIES CORPORATION 130
Chan Kok Bin
(Natural Person Trading Participant)
Rm. 1105 Galleria Corporate Center
EDSA cor. Ortigas Avenue, Quezon City
Office: 633-7044 to 46
Exchange: 891-9880 to 81
Fax: 633-7047
CITISECURITIES, INC. 133
Edward K. Lee
(Nominee Trading Participant)
27/F, East Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Office: 635-5735 to 40
Exchange: 634-6976 to 80
Fax: 634-6696
CLSA PHILIPPINES, INC. 323
Raymond M. Tempongko
(Nominee Trading Participant)
19/F Tower 2, The Enterprise Center
6766 Ayala Avenue, Makati City
Office: Trunkline: 860-4000
Sales & Dealing: 860-4030
Exchange: 891-9945; 759-4073
Fax: 860-4065
Email: raymond.tempongko@clsa.com
COHERCO SECURITIES, INC. 387
Wilfred T. Co
(Nominee Trading Participant)
8/F, Herco Center, 114 Benavidez Street,
Legaspi Village, Makati City
Office: 818-7736
Exchange: 848-7301
Fax: 818-7331
COL FINANCIAL GROUP, INC. 203
Conrado F. Bate
(Nominee Trading Participant)
2401B East Tower, PSE Centre,
Exchange Road, Ortigas Center, Pasig City
Office: 636-5411
Fax: 634-6958; 645-4632
CREDIT SUISSE SECURITIES (PHILS.), INC. 311
Joselito C. Vicencio, Jr.
(Nominee Trading Participant)
19/F The Enterprise Center, Tower 2
Ayala Avenue cor. Paseo de Roxas
Makati City
Office: 858-7770
Fax: 858-5676
Email: list.css@credit-suisse.com
CUALOPING SECURITIES CORPORATION 141
Simeon S. Cua
(Nominee Trading Participant)
Suite 301, 1765 P. M. Guazon Street
Paco, Manila
Office: 561-3862
Exchange: 634-5745 to 46
634-5180; 634-5755
Email: cualopingsecuritiescorp@gmail.com
DA MARKET SECURITIES, INC. 204
Nestor S. Aguila
(Nominee Trading Participant)
Unit 6K, 6/F, Fort Palm Spring
Condominium, 30th Street cor. 1st Avenue,
Fort Bonifacio Global City, Taguig,
1634 Metro Manila
Office: 887-6407
Exchange: 891-9143 to 44
Telefax: 887-5457
Exchange 891-9144
Email: dmsi8.care@houseofdavidgroup.ph
DAVID GO SECURITIES CORPORATION 143
David C. Go
(Nominee Trading Participant)
Rm. 309 Federation Center Building
Muelle de Binondo, Binondo, Manila
Office: 242-2375 & 79; 242-2467
Exchange: 634-5048 to 49
634-5178
Fax: 242-2467
Email: dgosec@yahoo.com
DBP-DAIWA CAPITAL MARKET
PHILIPPINES, INC. 142
Shoichi Saito
(Nominee Trading Participant)
18/F, Citibank Tower, 8741 Paseo de Roxas,
Makati City
Office: 813-7344; 813-7454
Exchange: 891-9109; 891-9119
Fax: 848-0105
Email: admin@dbpdaiwasmbc.com.ph
DEUTSCHE REGIS PARTNERS, INC. 209
Emmanuel O. Bautista
(Nominee Trading Participant)
23/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
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
DIVERSIFIED SECURITIES, INC. 145
Ramon C. Garcia Jr.
(Nominee Trading Participant)
5/F, PDCP Bank Centre
Herrera cor. Alfaro Streets,
Salcedo Village, Makati City
Office: 892-2890; 892-4330
753-5250 to 53
Exchange: 636-0814
634-6630 to 31
Fax: 892-4330
Email: rowena.ruiz@psenow.com
www.dtrade.net
DW CAPITAL, INC. 328
Derwin Ngo Wong
(Nominee Trading Participant)
Unit 1610-1611 Tower One &
Exchange Plaza, Ayala Triangle,
Ayala Avenue, Makati City
Office: 836-9633; 836-2719
(Trading Department) 836-1938
Accounting Dept.: 403-0709
Telefax: 403-0066
Email: dwcapital1328@gmail.com
E. CHUA CHIACO SECURITIES, INC. 147
Ernesto Chua Chiaco
(Natural Person Trading Participant)
113 Rentas Street, Binondo, Manila
Office: 242-5145; 241-9293
Exchange: 891-9246 to 48
Fax: 243-3232
Email: eccsi@yahoo.com
EAGLE EQUITIES, INC. 283
Joseph Y. Roxas
(Natural Person Trading Participant)
779 Harvard Street, Mandaluyong City
Office: 724-1584; 725-2777
Exchange: 634-6684; 634-6283
Fax: 725-2777
active trading participants directory | 109
EASTERN SECURITIES DEV’T. CORP. 150
Generosa R. Jacinto
(Nominee Trading Participant)
Binondo Head Office:
17/F, Tytana Building,Binondo, Manila
Office: 242-4006 to 09
Fax: 241-0178
Makati Sales Office:
7/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,Makati City
Office: 848-5491 to 95
Exchange: 891-9340 to 44
Fax: 848-6349
Email: eastern_securities@yahoo.com
EASTWEST CAPITAL CORPORATION 149
Edilberto B. Bravo
(Natural Person Trading Participant)
3/F U-Bix Bldg., 1344 Angono Street,
Makati City
Office: 897-7124; 897-6807
Exchange: 895-6008; 895-5638
Fax: 897-6805
Email: eastwest@ubix.com.ph
EQUITIWORLD SECURITIES, INC. 153
Antonio A. Lopa
(Nominee Trading Participant)
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5401; 848-5403 to 06
President/GM 848-5418
Exchange: 891-9756
Fax: 848-5423
Email: eqworld_87@yahoo.com
EVERGREEN STOCK BROKERAGE
& SECURITIES, INC. 154
Francisco S. Gaisano
(Nominee Trading Participant)
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9451 to 58
Exchange: 891-9451 to 58
Fax: 891-9459 to 60
Email: evergreensecurities@yahoo.com
F. YAP SECURITIES, INC. 162
Felipe U. Yap
(Nominee Trading Participant)
17/F Lepanto Building,
8747 Paseo de Roxas, Makati City
Office: 856-7680
Exchange: 634-5171; 634-6917
634-5390 to 91; 634-6217 to 18
Fax: 813-0865
Email: fysi162@yahoo.com
FIDELITY SECURITIES, INC. 243
Ben C. Tiu
(Nominee Trading Participant)
2/F, JTKC Centre 2155 Pasong Tamo,
Makati City
Office: 818-6774; 812-6267
Exchange: 634-7110; 633-9707
633-9710; 633-9711
Fax: 810-3536
Email: fidelitysecinc@yahoo.com
FIRST INTEGRATED CAPITAL
SECURITIES, INC. 159
Manuel Mañalac Jr.
(Nominee Trading Participant)
12/F, Tower One & Exchange Plaza,
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 759-4320 to 23
891-9418 to 19
Exchange: 759-4320 to 23
891-9418 to 19
Fax: 759-4326
Email: fincapsec@yahoo.com
FIRST METRO SECURITIES
BROKERAGE CORPORATION 267
Roberto Juanchito T. Dispo
(Nominee Trading Participant)
18/F, PS Bank Center, 777 Paseo de Roxas
cor. Sedeño St. Makati City
Office: 859-0600
Fax: 859-0699
Email:
customerservice@firstmetrosec.com.ph.
110 | PSE 2012 ANNUAL REPORT
FIRST ORIENT SECURITIES, INC. 157
Trinidad Y. Kalaw
(Nominee Trading Participant)
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9240; 891-9243 to 44
Exchange: 891-9240 to 45
Fax: 848-6175
Email: fosisec@gmail.com
FRANCISCO ORTIGAS SECURITIES, INC. 161
Paolo Martin M. Ortigas
(Nominee Trading Participant)
10/F, Ortigas Building,
Ortigas Avenue, Pasig City
Office: 631-2674; 631-2733
Exchange: 634-5149 to 53
Fax: 631-2668
G. D. TAN & COMPANY, INC. 288
Gilbert Tan
(Nominee Trading Participant)
22/F, East Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Office: 634-6255; 637-5686
Exchange: 634-6255; 634-5408
634-6256
Telefax: 637-6256
Email: gdtaninc@yahoo.com
GLOBALINKS SECURITIES & STOCKS, INC. 168
David L. Wuson
(Nominee Trading Participant)
7/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-6341 to 42
759-4136 to 37
Exchange: 891-9920 to 22
Telefax: 848-6341 to 43
759-4136 to 37
GOLDEN TOWER SECURITIES
& HOLDINGS, INC. 285
Kenneth S. Lao
(Nominee Trading Participant)
4/F, Vernida I Condominium
120 Amorsolo Street,
Legaspi Village, Makati City
Office: 813-2839; 892-1316
Exchange: 891-9680 to 82
Fax: 813-0321
Email: g_towersec@yahoo.com
GOLDSTAR SECURITIES, INC. 170
Joseph L. Mancilla Jr.
(Nominee Trading Participant)
22/F, East Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Office: 636-0197
633-7485 to 86
Exchange: 634-6765 & 69
634-6983 & 87
Fax: 633-7487
GUILD SECURITIES, INC. 172
Antonio B. Alvarez
(Nominee Trading Participant)
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9230; 891-9234 to 35
Exchange: 891-9232 to 37
891-9230
Fax: 891-9231
Email: help.desk@guildsec.com
H. E. BENNETT SECURITIES, INC. 175
Jesus M. dela Peña
(Nominee Trading Participant)
Rm. 1704, World Trade Exchange Bldg.,
215 Juan Luna Street, Binondo, Manila
Office: Executive Office 242-5733
Dealing Room 241-6284;241-6458
Exchange: 634-5030; 634-6235
Telefax: 245-6959
Email: hebsi@info.com
HDI SECURITIES, INC. 174
Chia Kim Teck
(Nominee Trading Participant)
Suite 2002, 20/F, The Orient Square,
F. Ortigas Ave. (formerly Emerald Ave.),
Ortigas Center, Pasig City, 1605
Office: 687-7955; 687-7956
687-7957; 910-6188 Office: 848-7122 to 24
Fax: 910-6189
Email: info@hdisecurities.com
I. ACKERMAN & COMPANY, INC. 179
Ma. Luisa C. Ackerman
(Nominee Trading Participant)
7/F, Tower One & Exchange Plaza, Ayala Avenue
cor. Paseo de Roxas, Makati City
Office: 891-9070 to 72
Exchange: 891-9070 to 72
Fax: 891-9353
Email: info@aiackerman.com
I.B. GIMENEZ SECURITIES, INC. 180
Ignacio B. Gimenez
(Nominee Trading Participant)
No. 42 3/F New Rosario Ortigas Arcade,
Rosario Ortigas Extn., Pasig
Office: 628-0000 local 306
Exchange: 634-6260 to 61
634-6263 to 65; 634-5168
Fax: 642-7299
IGC SECURITIES, INC. 140
Ismael G. Cruz
(Nominee Trading Participant)
10/F, Tower One & Exchange Plaza,
Ayala Avenue cor. Paseo de Roxas, Makati City
Office: 891-9193 to 94
Exchange: 891-9190 to 92
Fax: 891-9194
Email: igcsec@pldtdsl.net
IMPERIAL, DE GUZMAN,
ABALOS & CO., INC. 182
Leonides C. Tiotuico
(Nominee Trading Participant)
G/F, EDSA Central Square
Shaw Boulevard, Mandaluyong City
Office: 633-2686; 634-5717
631-8651 loc. 145
Exchange: 634-5161 & 66
634-5739; 634-5710
Fax: 633-4716
Email: imperdga@yahoo.com
INTRA-INVEST SECURITIES, INC. 183
Jose Maria A. De Leon
(Nominee Trading Participant)
11/F, ACT Tower 135 Sen. Gil Puyat Avenue,
Salcedo Village, Makati City
Office: 813-8293 to 94
Exchange: 891-9206; 891-9208
Fax: 892-1290
Email: Intrainvest_secinc@yahoo.cim
INVESTORS SECURITIES, INC. 181
Edward Go
(Nominee Trading Participant)
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-7032 to 33
891-9441 to 42
Exchange: 891-9441 to 46
Fax: 848-7034
J. M. BARCELON & COMPANY, INC. 188
Amparo V. Barcelon
(Nominee Trading Participant)
5 Pennsylvania,New Manila,
Quezon City
Office: 661-8396; 661-8398
661-7359
Exchange: 635-0236; 687-6317
Email: jmbarcelon@yahoo.com.ph
J. P. MORGAN SECURITIES
PHILIPPINES, INC. 185
Milagros Cecilia D. Suarez
(Nominee Trading Participant)
31/F, Philam Life Tower
8767 Paseo de Roxas, Makati City
Office: General 575-1199
Sales 885-7801; 757-2101
Exchange: 687-2364; 687-2370
Fax: 885-7058 to 59
Email: remedios.c.pasil@jpmorgan.com
JAKA SECURITIES CORPORATION 125
Katrina C. Ponce-Enrile
(Nominee Trading Participant)
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Exchange: 848-6413 to 15
Fax: 848-7121
Email: jakase@yahoo.com
JSG SECURITIES, INC. 169
Jorge S. Go
(Nominee Trading Participant)
4/F, A & T Building, 244 Escolta Street,
Binondo, Manila
Office: 241-0594; 242-9380
242-9385
Exchange: 637-3159 to 61
Fax: 242-9392
KING’S POWER SECURITIES, INC. 389
Carlos J. Ching
(Nominee Trading Participant)
Room 1602, Federal Tower,
Dasmariñas Street, Binondo, Manila
Office: 242-3048 to 49
Exchange: 848-5605 to 07
Fax: 241-1417
Email: kings 389@yahoo.com.ph
LARRGO SECURITIES COMPANY, INC. 193
(Natural Person Trading Participant)
2/F, Rufino Tower Building
6784 Ayala Avenue, Makati City
Office: 810-1183; 810-1353 to 54
810-1440 & 46
Exchange: 891-9530 to 33
Fax: 817-2486
Email: larrgosec@yahoo.com
LITONJUA SECURITIES, INC. 195
Eduardo V. Litonjua Jr.
(Nominee Trading Participant)
Room 205 DITZ Building
444 T. M. Kalaw Street, Manila
Office: 521-1951 to 57
Exchange: 634-7178; 634-5713
Fax: 521-7692
LOPEZ, LOCSIN, LEDESMA Office: 898-2984; 890-7336
& COMPANY, INC. 197
Dionisio Lopez
(Nominee Trading Participant)
Roofdeck, Urban Building
405 Sen. Gil Puyat Avenue (nr. MRT)
EDSA, Makati City
Office: 895-0624; 895-7310
Exchange: 891-9640 to 41
Fax: 896-0835
Email: lopezlocsinledesma@yahoo.com
LUCKY SECURITIES, INC. 198
Eddie T. Gobing
(Nominee Trading Participant)
19/F, West Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Office: 634-6826; 634-6786
634-6747 & 60
Exchange: 634-5382 to 83
634-5411; 634-5707
Fax: 634-6826
LUY’S SECURITIES COMPANY, INC. 199
Enrique Luy, Sr.
(Nominee Trading Participant)
28/F, LKG Tower
6801 Ayala Avenue, Makati City
Office: 884-1271 to 85
Exchange: 634-5175 to 76
634-6523 to 24; 634-6850 to 51
Fax: 884-1384
MACQUARIE CAPITAL
SECURITIES (PHILIPPINES), INC. 121
Paulo C. Rojas
(Nominee Trading Participant)
22/F 6750 Ayala Avenue Bldg.,
Ayala Avenue, Makati City
Office: 857-0888; 857-0834
Fax: 857-0910; 857-0912
Email: john.madamba@macquarie.com
MANDARIN SECURITIES CORPORATION 200
Charles H. Shih
(Nominee Trading Participant)
28/F, LKG Tower 6801 Ayala Avenue,
Makati City
Office: 884-1271 to 85
Exchange: 634-6517 to 20
Fax: 884-1384
MARIAN SECURITIES, INC. 201
Richard L. Lee
(Nominee Trading Participant)
Unit B 26/F, Export Bank Plaza,
Chino Roces Avenue cor. Gil Puyat Avenue,
Makati City
Office: 887-9067 to 68
Exchange: 891-9309; 891-9316
Fax: 814-0502
Email: Lailah_bazar@yahoo.com
MAYBANK ATR KIM ENG SECURITIES, INC. 220
Lorenzo Andres T. Roxas
(Nominee Trading Participant)
17/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5298; 849-8888
Dealing Room 848-5288
Exchange: 891-9120
891-9124 to 25
Fax: General 848-5738
Settlements 848-5285
Email: atrke_sec@maybankatrke.com
MDR SECURITIES, INC. 208
Manuel D. Recto
(Nominee Trading Participant)
6/F, Unit 617 AIC-Burgundy Empire
Tower, ADB Avenue cor. Garnet &
Sapphire Roads, Ortigas Center, Pasig City
Office: 706-2131; 706-2169
Exchange: 891-9226 to 28
Mobile: 0922-8814788
0922-8823137; 0922-8823136
MERCANTILE SECURITIES CORP. 205
Kevin Nathaniel N. Co
(Nominee Trading Participant)
3/F Goodwill Building
393 Sen. Gil Puyat Avenue,Makati City
890-6792; 890-1939
Exchange: 891-9350 to 58
891-9350; 856-2880
Fax: 895-2376
MERIDIAN SECURITIES, INC. 206
Ronaldo S. Salonga
(Nominee Trading Participant)
27/F, East Tower, PSE Centre Exchange Road,
Ortigas Center, Pasig City
Office: 635-6261 to 64
Exchange: 634-6931 to 36
Fax: 634-6937
Email: meridiansec@yahoo.com
MOUNT PEAK SECURITIES, INC. 210
William Gaweco
(Nominee Trading Participant)
748 C. K. Building, Juan Luna St.,
Binondo, Manila
Office: 241-7990 & 92; 241-8043
243-1953
Exchange: 891-9601 to 03
Fax: 241-8042
Email: Info@mountpeak.com
www.mountpeak.com
NEW WORLD SECURITIES, INC. 211
Joan Chai Chu
(Nominee Trading Participant)
Room 202 CNC Investment Bldg.
231 Juan Luna St., Binondo, Manila
Office: 242-1759; 242-1767
Exchange: 634-5711 to 12
634-5721
Fax: 242-1743
Email: newworld211@yahoo.com
NIEVES SECURITIES, INC. 213
Philip S. Huang
(Nominee Trading Participant)
106 Tytana Plaza, V. Tytana corner Insular Sts.
Plaza Lorenzo Ruiz, Binondo, Manila
Office: 477-7899; 477-8899
Exchange: 891-9306 to 08
Fax: 477-8899 loc. 291
Email: nievessecurities@gmail.com
nieves_sanchra_inc@yahoo.com
OPTIMUM SECURITIES CORPORATION 215
Eddie S. Jose
(Nominee Trading Participant)
No. 11 E. O. Building cor. United &
2nd Streets, Bo. Kapitolyo, Pasig City
Office: 631-7831 to 36; 631-3989
633-2629
Exchange: 891-9581 to 85
Fax/Telefax: 631-8834 / 633-2629
PAN ASIA SECURITIES CORPORATION 218
Lucio K. Tan, Jr.
(Nominee Trading Participant)
9/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5153 to 54
Exchange: 891-9170 to 74
Fax: 848-5154
Email: panasec218@yahoo/.com
PAPA SECURITIES CORPORATION 219
Myron Timothy P. Papa
(Nominee Trading Participant)
6/F, S & L Building De la Rosa cor.
Esteban Streets, Legaspi Village, Makati City
Office: 817-8433 & 79; 817-8454
815-1308
Exchange: 891-9630 to 32
Fax: 815-1308
Email: mcpapa@pacific.net.ph
PCCI SECURITIES BROKERS CORP. 282
Federico C. Galang
(Nominee Trading Participant)
4/F, PCCI Corporate Center,
118 L. P. Leviste Street, Salcedo Village,
Makati City
Office: 893-3920; 893-3923 to 24
893-4341
Exchange: 891-9952 to 55
848-6284 to 85; 840-2991
Fax: 893-4340
Email: pcci.sbc@yahoo.com
PCIB SECURITIES, INC. 131
Gabriel U. Lim
(Nominee Trading Participant)
20/F, BDO South Tower, Makati Ave.
cor. H. V. dela Costa St.,Makati City
Office: Dealing Room 878-4556
878-4558; 878-4562 to 63
Operations 878-4559 to 60
Compliance 878-4564
Exchange: 891-9008 to 09
891-9045
Fax: 840-7175
Email: nilo.sampayo@ebdo.com.ph
beboso.michelle@bdo.com.ph
PHILIPPINE EQUITY PARTNERS, INC. 338
Joseph R. Madrid
(Nominee Trading Participant)
Unit 19C, Citibank Tower, Citibank Plaza
8741 Paseo de Roxas, Makati City
Office: 814-5700
Exchange: 891-9162; 891-9222
891-9097
Fax: 814-5793 to 94
PHIL-PROGRESS SECURITIES CORP. 276
Enrique Raymond I. Yap
(Nominee Trading Participant)
G/F, PPL Building, U. N. Avenue
cor. San Marcelino Street, Manila
Office: 526-4207; 526-4208 &10
Exchange: 891-8579 to 80
Fax: 526-4208
Email: phil_progress@yahoo.com.ph
active trading participants directory | 111
PLATINUM SECURITIES, INC. 223
William O. Go
(Nominee Trading Participant)
8/F, Antel 2000 Corporate Center
121 Valero St., Salcedo Vill., Makati
Office: 887-1178 to 79
Exchange: 891-9301 to 03
Telefax: 887-1178
Email: plasec223@yahoo.com
PNB SECURITIES, INC. 224
Carlos A. Pedrosa
(Nominee Trading Participant)
3/F, PNB Financial Center, Roxas Boulevard,
Pasay City
Office: 526-3510; 526-3678
832-5461 / Dealing 526-3478
Exchange: 891-9841; 891-9846
891-9849
Fax: 526-3477
PREMIUM SECURITIES, INC. 225
Antonio Y. Tee
(Nominee Trading Participant)
14/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5915 to 17
Exchange: 891-9593 to 95
Telefax: 848-5917
Email: premium_dec@yahoo.com
QUALITY INVESTMENT
& SECURITIES CORP. 230
Benjamin Y. Cu
(Nominee Trading Participant)
Unit 1602 Tytana Plaza, Plaza Lorenzo Ruiz,
Binondo, Manila
Office: 241-0072; 241-0486
241-0547
Exchange: 891-9184 to 89
Fax: 241-0166
Email: qualsec@pldtdsl.net
R & L INVESTMENTS, INC. 231
Rene R. Lee
(Nominee Trading Participant)
675 Lee Street, Mandaluyong City
Office: 724-5207
Exchange: 891-9201 to 05
Fax: 724-7210
R. COYIUTO SECURITIES, INC. 233
Robert Coyiuto Jr.
(Nominee Trading Participant)
5/F, Corinthian Plaza, Paseo de Roxas,
Legaspi Village, Makati City
Office: 811-3064 to 67; 811-3201
Exchange: 634-6203 to 07
634-5035; 634-6697 & 69
Fax: 811-3073
Email: rcoyiutosec@hotmail.com
vito.rcoyiuto@gmail.com
R. NUBLA SECURITIES, INC. 236
Ralph Nubla Jr.
(Natural Person Trading Participant)
Room 300, CNC Investment Bldg.
231 Juan Luna Street, Binondo, Manila
Office: 242-1595 to 96; 242-1770
Exchange: 634-6525 to 29
Fax: 242-1666
Email: nublasec@yahoo.com
R. S. LIM & COMPANY, INC. 238
Alejandro T. Yu
(Nominee Trading Participant)
1509 Galvani Street, Makati City
Office: 843-4313; 844-7235
844-2245
Exchange: 891-9660 to 66
Fax: 844-2245
Email: rslim@mydestiny.net
rslimcoinc@gmail.com
RCBC SECURITIES, INC. 217
Raul M. Leopando
(Nominee Trading Participant)
7/F Yuchengco Tower, RCBC Plaza
6819 Ayala Avenue, Makati City
Office: Trunk line 889-6931 to 35
Exchange: 845-2641
Fax: 889-7642
Email: sales@rcbcsec.com
Website: www.rcbcsec.com
112 | PSE 2012 ANNUAL REPORT
REGINA CAPITAL DEVELOPMENT CORP. 235
Marita A. Limlingan
(Natural Person Trading Participant)
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5482 to 84
Exchange: 891-9413
891-9415 to 17
Fax: 848-5482 to 84
Email: rcdc@reginacapital.com
RTG & COMPANY, INC.
Ramon T. Garcia
(Nominee Trading Participant)
239
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 891-9480 to 84
Exchange:
Fax: 891-9483
891-9480 to 84
S. J. ROXAS & COMPANY, INC. 240
Simplicio J. Roxas
(Nominee Trading Participant)
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5065 to 69
Exchange: 891-9708 to 09
891-9714 to 16; 891-9439
Fax: 891-9447
Email: sjroxas.co@yahoo.com
SALISBURY BKT
SECURITIES CORPORATION 229
Simon B. Bailey
(Nominee Trading Participant)
Executive Office:
12/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Backroom Office:
11/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-7373 to 76
Exchange: 891-9490 to 92
Fax: 848-7375
Email: admin@salisburybkt.com
SARANGANI SECURITIES, INC. 113
Arthur W. Antonino
(Nominee Trading Participant)
Unit 2 D1 Vernida I Condominium,
120 Amorsolo Street, Legaspi Village,
Makati City
Office: 817-5806; 840-4504
817-5834
Exchange: 891-9176 to 79
Fax: 817-5815
Email: sarangani95@yahoo.com
SB EQUITIES, INC. 115
Eduardo M. Olbes
(Nominee Trading Participant)
18/F, Security Bank Centre 6776 Ayala Avenue,
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
891-9686 to 87
Fax: 813-3349
Email: sbequities@securitybank.com.ph
SECURITIES SPECIALISTS, INC. 242
Francisco V. Cancio
(Nominee Trading Participant)
Rm. 903 National Life Insurance Bldg.,
Ayala Avenue, Makati City
Office: 812-5905
Exchange: 891-9701 to 03
Fax: 813-1682
Email: securities.specialists@gmail.com
SINCERE SECURITIES CORPORATION 129
John Kenneth L. Ocampo
(Nominee Trading Participant)
12/F, East Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Office: 638-3549 to 50
Exchange: 634-6664; 634-6668
Fax: 638-3549
Email: sinceresec.corp@yahoo.com
SOLAR SECURITIES, INC. 286
Johnny S. Yap
(Nominee Trading Participant)
30/F, East Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Office:
Trunk line 636-6302
Direct lines 634-6651; 634-6653
Exchange: 636-6302; 634-6869
634-6878
Fax: 635-2466
Email: solar_sec_inc@yahoo.com
STANDARD SECURITIES CORPORATION 247
Domingo Herrera
34 Jefferson Street, West Greenhills,
San Juan, Metro Manila
Office: 725-3905; 721-5887
Exchange: 891-9760 to 61
891-9764 to 65
Fax: 721-5887
STAR ALLIANCE CORPORATION 528
Alfonso S. Anggala
(Nominee Trading Participant)
Unit 1201, 12/F, One Global Place
5th Avenue cor. 25th Street, Bonifacio
South District, Bonifacio Global, Taguig City
Office: 566-2265; 478-0107
Fax: 238-1575
Email: staralliancesec@gmail.com
STRATEGIC EQUITIES CORPORATION 192
Roberto Z. Lorayes
(Nominee Trading Participant)
6/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-5159
Exchange: 891-9620 to 21
Fax: 848-5164
Email: sec@pldtdsl.net
SUMMIT SECURITIES, INC. 246
Harry G. Liu
(Nominee Trading Participant)
21/F, East Tower, PSE Centre
Exchange Road, Ortigas Center, Pasig City
Office: 631-1032 to 37
Exchange:
Fax: 631-1033
631-1032 to 37
SUNSECURITIES, INC. 368
Jerry G. Yu
(Nominee Trading Participant)
2703 One Corporate Center
Meralco Avenue cor. Julia Vargas Avenue,
Pasig City
Office: 477-6001 to 6005
Fax: 621-1018
Email: sunsecuritiesinc@gmail.com
SUPREME STOCKBROKER, INC. 249
(No Nominee Trading Participant)
Unit G, Garden Level, Corinthian
Plaza, Paseo de Roxas Ave.,
Legaspi Village, Makati City
Office: 576-4384
Exchange: 891-9401; 891-9403
Telefax: 901-4309
TANSENGCO & COMPANY, INC. 251
Francisco O. Tansengco
(Nominee Trading Participant)
Room 2308 World Trade Exchange Bldg.
215 Juan Luna Street, Binondo, Manila
Office: 241-7155
Exchange: 634-6675 & 85
633-1310; 634-8230
Fax: 241-7155
THE FIRST RESOURCES MANAGEMENT UNICAPITAL SECURITIES, INC. 345
& SECURITIES CORPORATION 252
Ma. Vivian Yuchengco
(Natural Person Trading Participant)
8/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: 848-6311 to 18
Exchange: 848-6311 to 18
Fax: 848-6272
Email: 1stres@philwebinc.com
TOWER SECURITIES, INC.
Raymond Peter L. Unlay
(Nominee Trading Participant)
253
18/F, East Tower, PSE Centre,
Exchange Road, Ortigas Center, Pasig City
Office:
634-6726
635-4448 to 49; 635-4144
Exchange:
634-5146; 634-5148
638-3847; 638-3850; 633-9411
Fax: 635-4145
Email: tower_sec@yahoo.com
TRANS-ASIA SECURITIES, INC.
Eugene Ong
254
(Nominee Trading Participant)
Room 601-S State Centre Building
333 Juan Luna Street,Binondo, Manila
Office: 242-2823; 242-3031
242-1031
Exchange: 634-5725 to 27
634-5752 to 54
Fax: 242-3031
Email: transasia_securities@ymail.com
TRI-STATE SECURITIES, INC. 257
Gregorio T. Chan
(Nominee Trading Participant)
10/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office:
Exchange:
Fax: 848-5047
848-5044 to 47
891-9361 to 64
TRITON SECURITIES CORPORATION 136
Edwin L. Luy
(Nominee Trading Participant)
26/F, LKG Tower
6801 Ayala Avenue, Makati City
Office: 884-2081 to 83
Exchange: 635-5531 to 35
Fax: 884-2088
Email: tsc136@yahoo.com
UBS SECURITIES PHILIPPINES INC. 333
Robrina L. Go
(Nominee Trading Participant)
19/F, Tower One & Exchange Plaza
Ayala Avenue cor. Paseo de Roxas,
Makati City
Office: Trunk Line 784-8888
Sales 784-8864
Operations 784-8813
Compliance 784-8807
Exchange: 891-8588; 891-8589
Fax: General 784-8899
Equities 848-2382
Logistics 784-8810
Email: Robby.Go@ubs.com
Tet.Achacon-Espallardo@ubs.com
UCPB SECURITIES, INC. 259
Vincent K. De Leon
(Nominee Trading Participant)
5/F, UCPB Building Makati Avenue,
Makati City
Office: 811-9000
Office of the President loc. 9545
Compliance Officer loc. 9793
Securities Settlement loc. 9972
Accounting loc. 9970 & 9973
Exchange: 891-9735 to 37
Fax: 811-9792
Email: sccastronuevo@ucpb.com
jrdeguzman@ucpb.com
active trading participants directory | 113 active trading participants directory | 113
WESTLINK GLOBAL EQUITIES, INC. 270
Leonardo R. Arguelles Rafael O. Muñoz
(Nominee Trading Participant) (Nominee Trading Participant)
3/F, Majalco Building, Trasierra cor. 6/F, Tower One & Exchange Plaza
Benavidez Streets, Legaspi Village, Ayala Avenue cor. Paseo de Roxas,
Makati City Makati City
Office: Dealing/Sales 812-2589 Office: Trunkline 848-6231 to 33
812-2566; 817-5749 Operations Department 759-4012
Operations/Dealing/Sales 892-0991 Exchange & Marketing 891-9380 & 82
Exchange: 891-9622; 891-9624 Fax: 848-6229
Fax: 818-2127 Email: wgeirsc@gmail.com
Email: lra@unicapital-inc.com
UOB-KAY HIAN SECURITIES
(PHILIPPINES), INC. 260
WONG SECURITIES
CORPORATION 273
Eden Wong
What’s beyond
Tan Chek Teck
(Nominee Trading Participant)
Unit 404 Locsin Building, Ayala cor.
(Nominee Trading Participant)
960 Ideal Street, Mandaluyong City
Office: 727-6317
the numbers—
Makati Avenue, Makati City Exchange: 634-5735 to 36
Office: 887-7972
Exchange:
Fax: 887-7973
891-9526 to 27
Telefax: 718-0887
Email: wongsecuritiesonline@yahoo.com and this annual
Email: milasanjose@uobkayhian.com YAO & ZIALCITA, INC. 275
UPCC SECURITIES CORPORATION 100
William C. Uy
Carmelita C. Yao
(Natural Person Trading Participant)
5H Vernida I Condominium
report—is your
(Nominee Trading Participant) 120 Amorsolo Street, Legaspi Village,
feedback.
12/F Tower One & Exchange Plaza Makati City
Ayala Avenue cor. Paseo de Roxas, Office: 813-3496; 892-5936
Makati City 894-0553 to 55
We'd like to know
Office & Exchange: 891-8512 Exchange: 634-6284; 634-6286
891-8514; 891-8519 634-6946
Fax: 892-0215 Fax: 813-3496; 818-6739
Email: upcc_mla@i-manila.com Email: yaozialcita@yahoo.com
your thoughts
VALUE QUEST SECURITIES CORPORATION YU & COMPANY, INC. 278
190 Johnny Yu
Glenn Paul R. Garcia (Nominee Trading Participant)
on the 2012 PSE
(Nominee Trading Participant) 16/F, East Tower, PSE Centre
1006B West Tower, PSE Centre, Exchange Road, Ortigas Center, Pasig City
Exchange Road, Ortigas Center, Office: 634-6611 & 18; 634-7577
Pasig City Exchange: 634-6248 to 50
Office:
Fax: 687-0584
636-6684; 636-6686
Email: valuequestsecurities@gmail.com
Fax: 634-5918
Email: yunco27@gmail.com Annual Report.
VENTURE SECURITIES, INC. 263
Eusebio Tanco
(Natural Person Trading Participant) Please send the accomplished
7/F, Phil. First Building
6764 Ayala Avenue, Makati City
form to:
Office: 848-6505; 887-8447
Local nos. 7011/7012/7016
Exchange: 891-9420 to 22 The Philippine Stock Exchange, Inc.
Telefax: 848-6503
Email: venturesecurities@yahoo.com 2/F PSE Plaza, Ayala Triangle
VICSAL SECURITIES Ayala Avenue, 1226 Makati City
& STOCK BROKERAGE, INC. 266
Frank Sy Gaisano
Philippines
(Nominee Trading Participant)
Unit 504 Tower One &
Exchange Plaza, Ayala Triangle, You may also email your comments
Ayala Avenue, Makati City
Office: 804-2400 to 01 and suggestions to pird@pse.com.ph
Exchange: 891-9710 to 13 or fax to (632) 864 9046.
Fax: 804-2402
Email: Vssb_sec2005@yahoo.com
VSEC.COM,INC. 135
Senen L. Matoto
(Nominee Trading Participant)
Unit 1009-1011, Tower One &
Exchange Plaza, Ayala Triangle,
Ayala Avenue, Makati City Name:
Office: 856-5801 to 03
Fax: 856-3922
WEALTH SECURITIES, INC. 269
Hosanna T. Ayson
(Nominee Trading Participant)
21/F, East Tower, PSE Centre
Company / Organization:
Exchange Road, Ortigas Center,
Pasig City
Office: 634-5038 to 42
637-3048 to 50
Exchange: 634-6222
634-6225 to 29
Fax: 634-5043
Email: office@wealthsec.com
Email:
Audience. I’m primarily interested in the
Philippine Stock Exchange, Inc. as a:

 PSE shareholder
 PSE employee
 Trading participant
 Media representative
 If others, please specify:

Content. The figures and narrative are easy to

read and understand.

 Strongly Agree
 Agree
 Neutral
 Disagree
 Strongly Disagree

Coverage. The report effectively communicates

the 2012 performance of the PSE.

 Strongly Agree
 Agree Corporate Information
 Neutral
 Disagree Annual Meeting
The Annual Stockholders’ Meeting of the Philippine Stock Exchange, Inc. will be held on May 18, 2013, Saturday 8:00 AM at the Pavilion
 Strongly Disagree
A and B, Wack Wack Golf and Country Club, Shaw Boulevard, Mandaluyong City.

Design & Layout. The images, photos, design Corporate Offices

and layout are visually attractive, relevant, and
consistent with theme of the Annual Report.
 Strongly Agree
 Agree Fax (632) 891 9004 • (632) 864 9046
 Neutral
 Disagree
 Strongly Disagree
Overall Rating. On a scale of 1-5, with 1
having the highest rating, assess the overall
design, relevance, and readability of the 2012
PSE Annual Report:
Philippine Stock Exchange Plaza Philippine Stock Exchange Centre Philippine Stock Exchange Cebu Office
Ayala Triangle, Ayala Avenue Exchange Road, Ortigas Centre Insular Life Cebu Business Centre
1226 Makati City, Philippines 1605 Pasig City, Philippines Mindanao Avenue cor. Biliran Road
Tel (632) 819 4100 Tel (632) 688 7600 Cebu Business Park, Cebu City
6000 Philippines
Website: www.pse.com.ph Tel (032) 266 3464
(Principal Office)
External Counsels
Angara Abello Concepcion Regala & Cruz Law Offices Quasha Ancheta Peña & Nolasco
22nd Floor, ACCRALAW Tower Don Pablo Building
Second Avenue cor. 30 th Street, Crescent Park West 114 Amorsolo Street, Legaspi Village
Bonifacio Global City 0399 Taguig City, Philippines 1229 Makati City, Philippines

1
2 3 4 5
Parts of the Report. On a scale of 1-7, with
1 being the most relevant, rank the following
parts of the 2012 PSE Annual Report.
Messages of the Chairman and the President
Stock Market Performance
Financial Highlights
Operational Highlights
Table of Listed Companies and Issues
Gallery of Directors and Officers
Financial Statements and Documents
Active Trading Participants Directory
Marcos Ochoa Serapio & Tan Law Firm Rodrigo Berenguer & Guno
30 th Floor Tycoon Centre Suite 1517, 15th Floor AIC Burgundy Empire Tower
Pearl Drive, Ortigas Center ADB Avenue cor. Garnet and Sapphire Roads
1605 Pasig City, Philippines Ortigas Center 1605 Pasig City, Philippines
MM Lazaro & Associates Zamora Poblador Vasquez & Bretaña Law Offices
19 th Floor Chatham House Building 5th Floor, Montepino Building
116 Valero cor. VA Rufino Streets 138 Amorsolo Street, Legaspi Village
Salcedo Village 1200 Makati City, Philippines 1229 Makati City, Philippines
External Auditor Stock Transfer Agent
SyCip Gorres Velayo & Co. Rizal Commercial Banking Corp.
SGV Building Stock Transfer Department
6760 Ayala Avenue G/F West Wing, 221 Grepalife Building
1226 Makati City, Philippines Sen. Gil Puyat Avenue
1226 Makati City, Philippines

Format. You prefer to receive or read the
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 If others, please specify: The Philippine Stock Exchange, Inc.
For inquiries, please contact: Social Sites:
Public and Investor Relations Department Follow us on Twitter:
Tel (632) 819 4100 http://twitter.com/PhStockExchange
Fax (632) 864 9046
Track us on Facebook through:
E-mail for shareholders and analysts: ir@pse.com.ph
for general inquiries: pird@pse.com.ph
116 | PSE 2012 ANNUAL REPORT

PROGRESS
BEYOND
THE
EXCHANGE

The Philippine
Stock Exchange, Inc.
www.pse.com.ph
Public and Investor
Relations Department

Tel (632) 819 4100

Fax (632) 864 9046
Email for analysts
and shareholders:
ir@pse.com.ph
Email for general
inquiries:
pird@pse.com.ph