investor presentation - bdo investor...7899 makati avenue, makati city metro manila 0726,...

November 2016

Investor Presentation

Legal Disclaimer

This presentation and the information contained herein as well as the materials distributed herewith ("Presentation") are

the sole and exclusive property of BDO Unibank, Inc. (“BDO”) and shall only be used for the purpose intended herein.

None of the information contained in this Presentation constitutes a solicitation, offer, opinion, or recommendation by

BDO to buy or to sell any securities or financial instrument or to provide any investment service or investment advice.

The information contained in this Presentation is based on carefully selected sources believed to be reliable but no

representation or warranty as to its accuracy or completeness is made. All statements in this Presentation, other than

statements of historical facts, that address activities, events, or developments that BDO expects or anticipates will or

may occur in the future (including but not limited to projections, targets, estimates and business plans) are forward-

looking statements. BDO’s actual results or developments may differ materially from those expressed or implied in these

forward-looking statements as a result of various factors and uncertainties, including but not limited to price fluctuations,

actual demand, exchange rate fluctuations, market shares, competition, changes in legal, financial and regulatory

frameworks, international economic and financial market conditions, political risks, cost estimates, and other risks and

factors beyond our control. Your use of the Presentation shall be at your sole risk and you shall form your own

conclusions as to the reliability of any information presented and as to any conclusions to be drawn therefrom. BDO shall

not be directly or indirectly liable, in any way, for any inaccuracies, errors, or omissions in the Presentation , including but

not limited to any quotes or financial data contained therein, nor for any damages resulting therefrom. Any

opinion/data/forward-looking statements herein reflected may be subject to change by BDO without notice.

Investor Relations & Corplan:

4F South Tower, BDO Corporate Center

7899 Makati Avenue, Makati City

Metro Manila 0726, Philippines

Phone: (632) 840 7000 (loc. 6069)

Fax: (632) 878 4151

Email: [email protected]

Website: www.bdo.com.ph

mailto:[email protected]

http://www.bdo.com.ph/

3

Presentation Outline

I. Overview

II. Financial Highlights

III. Ownership, Board and Management

IV. Environmental, Social and Governance

V. Awards and Citations

4

• The Philippines’ largest bank with total assets of P2.21 Tn (USD45.75 Bn).

• A full-service universal bank with one of the widest distribution networks consisting of 1,084 operating branches and over 3,300 ATMs nationwide.

• Part of the SM Group, one of the country’s largest conglomerates.

About BDO

5

Milestones• Expansion through organic growth and M&As

Commercial Bank Expansion

1967

KB license

1994

P77 BN

Merged with Dao Heng

Bank Philippines

2001

P36 BN

U/KB license

1996

Acquired 1st e-Bank’s banking business

P121 BN

2002

Acquired UOB Philippines’ branch banking business

P234 BN

2005

P862 BN

Acquired GE Money Bank

2009

Acquired Rural Bank of San Juan’s banking business

P1.2 TN

2012 2014

Acquired Citibank Savings,

DB Trust and Real Bank

P1.9 TN

Acquired One

Network Bank

2015

Acquired by SM Group

1976

Assets

P13 BN

2003

Acquired Banco Santander Philippines

P149 BN P617 BN

2007

Merged with Equitable PCI Bank.

Acquired Amex Savings Bank Philippines

2016

Joint Ventures with Nomura Securities, and Mitsubishi Motors

Phils./Sojitz/JACCS; Acquired exclusive franchise of Diners Club Int’l and full

control of Generali Pilipinas Life (renamed as BDO Life Assurance)

P2 TN

Est. as

Acme

Savings

Bank

6

Full Service Bank• Complete range of financial products and services

Corporate &

Institutional

Banking

Corporate and

middle market

lending

Trade finance

Specialized

lending

Financial

Institutions

Cross-border

financing

Consumer

Banking

Auto

Mortgage

Credit cards

Personal loans

Merchant

payment

processing

Leasing &

Finance

Direct lease,

sale and

leaseback

arrangements

Installment

paper

purchases

Receivable

discounting

and factoring

Branch

Banking

Deposit &

related products

Over-the-

counter

transactions

Cross-selling

distribution

platform

Treasury

Services

Fixed income

dealership

Foreign

exchange

transactions

Portfolio

management

Liquidity

management

Transaction

Banking

Cash

management

Electronic

banking

ATMs

Prepaid cards

Merchant

acquiring

Remittances

Trust

Banking

Investment

management

Unit investment

trust funds

Living trusts

Retirement

funds

Special trusts /

custodianship

Private

Banking

Wealth

advisory

Customized

portfolio

management

Investment

Banking

Underwriting &

distribution of

fixed income &

equity

securities

Fin’l advisory

Project finance

Loan

syndication

Stock

Brokerage

Equities trading

Insurance

Brokerage

Bancassurance

Rural

Banking

Salary loans

Agricultural &

business loans

7

Market Reach

• Wide and extensive coverage in key areas

26 International Offices

Europe - 1211 Remittance Offices

1 Representative Office

Middle East - 1Representative Office

SEA, China, HK, Taiwan,

Korea & Japan - 11 1 Full-service Branch

6 Remittance Offices

4 Representative Offices

North

America - 2 Remittance Offices

Philippines - 1,084

Branches

As of 31 October 2016

8

Domestic Distribution Network

BDO ONB Total

Luzon 298 5 303

Metro

Manila488 1 489

Visayas 106 12 118

Mindanao 77 97 174

Total

Branches969 115 1,084

As of 31 October 2016

• With longer banking hours, Saturday banking in select commercial

areas, and weekend banking for over 150 mall based branches

• Widest market reach complemented by over 3,300 ATMs and

electronic channels

9

Business Franchise

#1

Loans

#1

Deposits#1

Remittance

#1

Trust and

Asset Mgt

#1

Private

Banking

Leading Trade

Services Provider2

Major Player in

Cash Management3

#1

Rural

Banking

#2

Leasing &

Finance

#1

Investment

Banking4

#1 Local

Insurance

Brokerage5

• Market-leading positions in almost all business lines

#1

Credit

Cards1

Notes:1 In terms of cardholder base, merchant acquiring gross billings, and credit card receivables2 According to The Asset, & Asian Banking and Finance3 According to The Asian Banker, Asian Banking and Finance, Alpha South East Asia4 In terms of corporate issuances5 Among insurance brokers in terms of premiums produced and commissions earned

996

580

430

100 98 89 89 81 77 53

BPI MBT CHIB SCB RCBC LBP UCPB PNB SECB

1,816

1,3221,252

1,173

539 473364 333 320 299

BPI MBT LBP PNB CHIB UBP RCBC DBP SECB

1,405

959 946

449379 347 289 267 214 184

MBT BPI LBP PNB CHIB RCBC SECB UBP DBP

2,213

1,7111,580

1,336

711 679552 505 494 431

MBT BPI LBP PNB SECB CHIB RCBC DBP UBP

10

Industry Ranking

Total Assets

(in PHP billions)

Source: Company data, consolidated statements of condition (SOC). Ranking as at 30 Sep 2016

Note: Financials prepared by banks under BSP’s SOC requirements differ slightly from reported financials under SEC

guidelines due to certain differences in accounting rules requested by the two authorities

Gross Customer Loans

Customer Deposits Assets Under Management

• No. 1 among Philippine banks

(in PHP billions) (in PHP billions)

(in PHP billions)

BDO Market Share – 19% BDO Market Share – 36%

BDO Market Share – 22%BDO Market Share – 18%

BDO Private Bank, Inc. 100%

BDO Capital & Investment Corporation 99.9%

BDO Leasing and Finance, Inc. BDO -87.43%, BDO Capital – 1.11%

One Network Bank, Inc. (A Rural Bank) 99.7583%

BDO Remit (USA), Inc. 100%

BDO Remit (Japan) Ltd. 100%

BDORO Europe Ltd. 100%

BDO Remit (Can.) Ltd. 100%**

Express Padala (HK) Ltd. 100% (c)

BDO Remit(Italia) S.p.A. 100% (a)

BDO Remit Limited 100% (c)

BDO Remit (Macau)Limited 100%

BDO Remit Int’l Holdings B.V. 96%

Averon Holdings, Inc. 100%

BDO Rental, Inc. 100%

MMPC Auto Financial Services Corp. 40%

BANKING / FINANCE

BDO Unibank, Inc.

Armstrong Securities 80% (b)

REMITTANCES INSURANCE PROPERTY

BDO Nomura Securities, Inc. 51%

BDO Strategic Holdings, Inc. 100%

BDO Insurance Brokers, Inc. 100%

BDO Life Assurance Holdings Corp. BDO-98.05%, BDO Capital-1.95%

PCI Insurance Brokers, Inc. 100% (a)

Equimark-NFC Development Corp. 60%

SM Keppel Land, Inc. 50%

NorthPine Land, Inc. 20%

Taal Land, Inc. 33% (b)

Unicorn First Properties, Inc. 35% (a)

OTHERS

Manila North Tollways Corp. 12.4%

PCI Travel Corporation 35% (a)

Venture Industry for Business Enterprises 24% (a)

BDO Life Assurance Company, Inc. (formerly Generali Pilipinas Life Assurance Co., Inc.)100%

• With equity investments in allied and non-allied enterprises

Organizational Structure

** not yet operational.

- Stockholders of BDO

- Financial Allied Subsidiary

- Financial Allied Affiliate

- Non-Financial Allied Subsidiary

- Non-Allied Undertaking

- Subsidiary/Affiliates of BDO Subsidiaries

- Non-Financial Allied Affiliate

(a) For dissolution(b) For sale(c) For merger

BDO Securities Corporation 100%

CBN London Ltd. 100%

CBN Greece S.A. 99.8%

CBN Ireland Remittance Center Ltd. 100%

CBN Remittance Center S.A. 99.99%

The Banker Top 1000 World Banks – Tier 1 Capital 2015

12

USD Million

239

Rank Origin Bank

243

240

242

245

246

247

248

4,231

4,220

4,219

4,174

4,169

4,079

4,050

4,022

4,007

4,005

0 1000 2000 3000 4000

Grupo Financiero Banorte

Chugoku Bank

Alfa Bank

Xiamen International Bank

BDO Unibank

Bank ABC

Popular

Baoshang Bank

Abanca Corporacion Bancaria

IDBI

241

244

http://freeflagicons.com/country/russia/round_icon/

http://freeflagicons.com/country/russia/round_icon/

The Banker Top Philippine Banks – Tier 1 Capital 2015

13

USD MillionBank

1

Rank

2

3

4

5

6

7

8

Acronyms:

BPI Bank of the Philippine Islands CHIB China Banking Corp.

MBT Metropolitan Bank& Trust SECB Security Bank Corp.

PNB Philippine National Bank LBP Land Bank of the Philippines

RCBC Rizal Commercial Banking Corp.

4,169

3,348

2,645

1,575

1,052

1,046

1,034

1,005

0 1000 2000 3000 4000

MBT

BPI

PNB

LBP

SECB

RCBC

CHIB

14

Credit Ratings

Moody’s FitchCapital

Intelligence

28-Oct-2016 02-Nov-2016 26-Aug-2016

Foreign Currency Bank

Deposits/Issuer/Debt Rating (IDR)

Long Term Baa2 BBB- BBB-

Short Term Prime-2 F3 A3

Outlook Stable Stable Positive

Senior Unsecured debt

Long Term Baa2 *BBB-

Short Term Prime-2

Outlook Stable

BCA/Viability/Financial Strength Rating

Baseline Credit Assessment (BCA) baa2

Adjusted BCA Rating baa2

Viability Rating bbb-

Financial Strength Rating BBB-

Outlook Stable

Counterparty Risk (CR) Assessment

Long Term Baa1(cr)

Short Term P-2 (cr)

*Rating assigned based on Fitch’s Press Release dated 02 Nov 2016

Source: Moody’s, Fitch and Capital Intelligence

15

Trading Fact SheetStock Details

Type Common Shares

Stock Ticker BDO

ISIN PHY077751022

Exchange Philippine Stock Exchange

Par Value P10.00

Outstanding No. of Shares* 3,649,168,193

Foreign Ownership Up to 40%

American Depositary Receipts (ADR) Program Details

Type Sponsored Level 1 ADR

ADR Ticker BDOUY

ISIN US05537Y305

Ratio 1 ADR = 10 Ordinary Shares

Depositary Bank Deutsche Bank Trust Company Americas

Contact Details

ADR Broker Helpline

Tel (New York) + 1 212 250 9100

Tel (London) + 44 207 547 6500

Email [email protected]

ADR website www.adr.db.com

Depositary Bank's Local Custodian Deutsche Bank AG, Manila

*As of November 14, 2016

16


I. Overview





Income Statement

(in PHP billion) 9M16 9M15 YoY%

Interest Income 60.7 52.9 14.8%

Loans & Other Receivables 54.0 46.6 16.0%

Interest Expense 12.2 11.1 10.3%

Net Interest Income 48.4 41.8 15.9%

Non-interest Income 31.8 23.8 33.3%

Fee Income 16.0 13.9 14.7%

Insurance Premiums 6.0 0.0 -

Trading & FX 4.5 6.3 -29.3%

Others 5.3 3.6 48.0%

Gross Operating Income 80.2 65.6 22.3%

Operating Expense 52.8 40.9 29.2%

Insurance benefits and claims 4.5 0.0 -

Pre-Provision Operating Profit 27.4 24.7 10.8%

Provisions 2.6 2.7 -4.3%

Income bef. Pre-Acquisition 24.8 22.0 12.7%

Pre-Acquisition Income -0.5 0.0 -

Taxes 5.0 4.4 13.8%

Net Income 19.3 17.6 9.7%

BDO Conso

Balance Sheet

(in PHP billion) 3Q16 3Q15 YoY%

Resources

Reserve Assets 460.1 430.8 6.8%

Investment Securities 278.3 241.3 15.3%

Gross Customer Loans 1,412.1 1,223.1 15.5%

Investment Properties 15.2 12.8 18.5%

Other Assets 42.2 44.2 -4.4%

Total Resources 2,207.9 1,952.2 13.1%

Liabilities 0.0

Deposits 1,816.5 1,600.1 13.5%

CASA 1,272.4 1,051.2 21.0%

Bills Payable/Sub-Debt 88.2 96.3 -8.4%

Insurance Contract Liab. 19.2 0.0 -

Other Liabilities 68.6 63.5 8.0%

Total Liabilities 1,992.4 1,759.9 13.2%

Total Capital 215.4 192.3 12.0%

Total Liabilities & Capital 2,207.9 1,952.2 13.1%

BDO Conso

18

19%16%

16%

20%

14%

18%

24%

15%

19%

20%

17%

15%

5%

10%

15%

20%

25%

2011 2012 2013 2014 2015 3Q16

19

Loan Growth

• In line with expectation, focusing on target segments

Industry

BDO

20

Deposits

(in P bn)

Deposits YoY∆

CASA YoY∆ 13% 12% 31% 24% 19% 21%

CASA Ratio 62% 64% 58% 64% 68% 70%

Cost of Deposits1.62% 1.50% 0.96% 0.75% 0.81% 0.78%

• Sustained growth in low-cost deposits

• With one of the highest CASA ratios

Total

10% 9% 44% 11% 11% 14%

21

Net Income• Sustainable growth from core income sources

• Continued investments in products and distribution

(in P bn)

17.6(9M15)

19.3

10.8

14.5

22.6 22.8

25.0

0.0

5.0

10.0

15.0

20.0

25.0

30.0

0

5

10

15

20

25

30

2011 2012 2013 2014 2015 9M16

Capital

22

Note:

Minimum CET1 and Tier 1 ratios

under Basel III are inclusive of the

2.5% capital conservation buffer.

23

Income Statement(in PHP billion) 2011 2012 2013 2014 2015 9M16

Interest Income 50.5 54.0 56.6 63.6 72.1 60.7

Interest Expense 16.9 17.9 13.4 12.4 15.2 12.2

Net Interest Income 33.6 36.1 43.2 51.2 57.0 48.4

Non-interest Income 20.9 24.4 31.8 29.5 31.9 31.8

Fee Income 12.3 13.4 15.5 18.0 19.4 16.0

Insurance Premiums - - - - - 6.0

Trading & FX 5.6 8.2 12.8 7.1 7.2 4.5

Others 3.0 2.8 3.6 4.4 5.4 5.3

Gross Operating Income 54.5 60.5 75.0 80.7 88.9 80.2

Operating Expense 35.8 39.5 43.3 48.5 55.1 52.8

Insurance Benefits and Claims - - - - - 4.5

Pre-Provision Operating Profit 18.7 21.1 31.8 32.2 33.8 27.4

Provisions 6.1 4.9 7.0 5.1 3.0 2.6

Income bef. Pre-Acquisition 12.6 16.1 24.8 27.1 30.8 24.8

Pre-Acquisition Income - - - - - -0.5

Taxes 1.7 1.6 2.1 4.2 5.7 5.0

Net Income 10.8 14.5 22.6 22.8 25.0 19.3

24

Balance Sheet(in PHP billion) 2011 2012 2013 2014 2015 3Q16

Resources

Reserve Assets 203.5 201.4 491.5 488.4 461.7 460.1

Investment Securities 188.4 237.3 227.9 221.5 225.8 278.3

Gross Customer Loans 670.1 769.0 911.5 1,089.4 1,279.4 1,412.1

Investment Properties 10.1 9.1 10.4 13.9 14.6 15.2

Other Assets 22.1 25.0 31.5 50.4 49.9 42.2

Total Resources 1,094.2 1,241.5 1,672.8 1,863.6 2,031.3 2,207.9

Liabilities

Deposits 858.6 931.6 1,345.3 1,492.3 1,663.9 1,816.5

Bills Payable/Sub-debt 97.7 100.4 97.3 110.4 107.6 88.2

Insurance Contract Liab. - - - - - 19.2

Other Liabilities 44.1 55.2 65.8 81.3 60.2 68.6

Total Liabilities 1,000.4 1,087.2 1,508.4 1,684.0 1,831.6 1,992.4

Total Capital 93.8 154.4 164.4 179.7 199.6 215.4

Total Liabilities & Capital 1,094.2 1,241.5 1,672.8 1,863.6 2,031.3 2,207.9

*Annualized

25

Financial Performance Indicators2011 2012 2013 2014 2015 9M16

Profitability

Return on Ave. Common Equity 12.4% 12.0% 14.5% 13.6% 13.6% 12.6%

Return on Average Assets 1.0% 1.3% 1.6% 1.3% 1.3% 1.2%

Margins and Liquidity

Net Interest Margin (NIM) 3.5% 3.4% 3.3% 3.2% 3.2% 3.3%

Loan to Deposit Ratio 78.1% 82.5% 67.8% 73.0% 76.9% 77.7%

Liquid Assets to Total Assets 35.8% 35.3% 43.0% 38.0% 33.8% 33.4%

Cost Efficiency

Cost to Income Ratio 65.6% 65.2% 57.7% 60.1% 62.0% 65.9%

Cost to Assets Ratio 3.4% 3.4% 3.0% 2.7% 2.8% 3.3%

Asset Quality

NPL Ratio 3.4% 2.8% 1.6% 1.3% 1.2% 1.3%

NPL Cover 106.0% 125.7% 170.7% 188.4% 166.1% 142.8%

Capital

CET1 12.4% 11.3% 11.1%

Tier 1 Ratio 10.0% 15.2% 14.6% 12.8% 11.7% 11.4%

Capital Adequacy Ratio 15.6% 19.1% 15.8% 14.5% 13.3% 12.9%

Basel II Basel III

*

*

*

*

*Annualized

26


I. Overview





27

Shareholder Structure

• Majority owned by the SM Group

*Number of chares outstanding subsequently increased to 3,649,168,193, as of November 14, 2016 due to the purchase of additional common shares

by the Bank’s eligible senior officers pursuant to the Banks employee stock option/grant program

As of 30 September 2016

Name Nationality Shareholdings

Percentage

of

Ownership

SM Investments Corp. Filipino 1,463,657,368 40.12%

PCD Nominee Foreign 1,108,303,788 30.38%

PCD Nominee Filipino 585,397,211 16.04%

Multi-Realty Development Corporation

Shoemart, Inc.

Filipino

Filipino

236,476,739

75,254,191

6.48%

2.06%

Sub-Total, Top Shareholders 95.08%

Total Shares Outstanding* 3,648,487,878

Source: Top 100 Shareholders as of 30 September 2016

28

Financial

Services

Property

Retail

Access to SM’s customer

network

• Over 17,000 PHL tenants

• More than 9,500 suppliers

• 3.5 million average daily foot

traffic

• In-house business

• Home mortgage financing

for SM property projects

New business

opportunity

• Goodwill from the SM

franchise

• Joint product development

SM expertise

• Middle market knowledge

• Expertise in retail market

and real estate

Branch locations

• Branches, ATMs in SM malls

• One of the largest integrated

property developer in Southeast

Asia by market capitalization

• Dominant domestic mall

developer/operator - 58 malls with

GFA of 7.5 mn sq m

• Largest local retail chain with 328

stores nationwide

• Increased presence in

discretionary retail with 1,429

outlets

• Biggest domestic banking

operations

• Interests in BDO and China Bank

The SM Group

• Harnessing synergies with the country’s largest conglomerate

7 directors out of 11 have an average of 35 years of banking

experience, including a former Partner and Head of Asia

Financials Research at Goldman Sachs

2 directors are practicing attorneys, and another one is a

Philippine bar topnotcher and member of the State Bar of

New York

• One of the strongest Board of Directors in the industry with extensive

banking and finance, legal and business background

Experienced

Bankers

Practicing

Lawyers

1 director is a successful businessman who has made his

mark in the field of retailing

Successful

Entrepreneur

Board of Directors

29

Board of Directors

Henry T. Sy Senior

Chairman Emeritus — first appointed to the Board in 1976

Founder and Chairman of the SM Group of Companies

Started his entrepreneurship career in 1958

Chairman of SMIC, SM Prime Holdings and SM Dev. Corp.

Jesus A. Jacinto Jr.

Vice Chairman — first appointed to the Board in 1996

Chairman and President of BDO Insurance Brokers

Chairman and President of Jaces Corp.

MBA Columbia University

Teresita T. Sy

Chairperson — first appointed to the Board in 1977

Serves as Director in multiple subsidiaries of BDO

Vice Chairperson of SMIC and Director of other SM Group

companies, including Multi-Reality Dev. Corp.

Antonio C. Pacis

Director — first appointed to the Board in 2004

Director of BDO Capital

Corporate lawyer since 1967

Degree from Harvard Law School

Josefina N. Tan

Director — first appointed to the Board in 2007

President of BDO Private Bank

Former Director of EPCIB from 2005 to 2007

Former Director of Banco de Oro from 2001 to 2005

Nestor V. Tan

President and CEO — first appointed to the Board in 1998

Holds Directorships of numerous BDO subsidiaries

Director of the Bankers Association of the Philippines

MBA Wharton School

Dioscoro--Roy I. Ramos

Independent Director — first appointed to the Board in 2016

CIO of RY&S Investments Ltd., Hong Kong since 2011

Former Partner and Head of Asia Financials Research from

1994 to 2011 at Goldman Sachs

Jimmy T. Tang


Serves as Independent Director since 2002

Previously served as Director since 1984

Chairman and President of AVESCO Group of Companies

Gilberto C. Teodoro

Independent Director – first appointed to the Board in 2014

Served as Secretary of National Defense from 2007-2009

Masters of Laws from Harvard Law School

Topnotcher, 1989 Philippine Bar Examinations

Jones M. Castro Jr.


Served as Head for South Asia and SEA at Wells Fargo Bank

MBA Stanford University

Jose F. Buenaventura


Senior Partner of Romulo Mabanta Buenaventura Sayoc & De

Los Angeles Law Offices since 1976

Master of Laws from Georgetown University Law Center

Christopher A. Bell-Knight

Director — re-elected to the Board in 2013

Previously served as BDO Director from May 2005 - Sep 2010

Former VP and Country Head of the Bank of Nova Scotia

Associate of the Chartered Institute of Bankers - British

• With broad business and professional experience

Corporate Support

Senior Management Team • With extensive professional banking expertise

Anthony Chua

Head — Global Operations

With BDO since 2014

Over 30 years of banking experience

Dennis B. Velasquez

Head — Central Operations

With BDO since 1995


Evelyn C. Salagubang

Head — Human Resources

With BDO since 2007

Over 20 years experience in HR

Lucy Co Dy

Head — Comptrollership

With BDO since 1985


Ricardo V. Martin

Head — IT Group

With BDO since 2001


Edwin Romualdo G. Reyes

Head — Transaction Banking

With BDO since 2015

29-year banking experience

Evelyn L. Villanueva

Head — Risk Management

With BDO since 2002


Luis S. Reyes Jr.

Head — IR & Corplan

With BDO since 2003


Rebecca S. Torres

Head — Compliance

With BDO since 1978


Alvin C. Go

Head — Legal

With BDO since 2013

In the practice of law for 30 years

Maria Theresa L. Tan

General Manager — BDO Insurance

With BDO since 2009

22-year banking and insurance experience

Josefina N. Tan

Head — Private Banking

With BDO since 2003


Eduardo V. Francisco

Head — Investment Banking

With BDO since 1999


Ador A. Abrogena

Head — Trust and Investments

With BDO since 1990


Walter C. Wassmer

Head — Business Lending

With BDO since 1997


Rolando C. Tanchanco

Head — Consumer Lending

With BDO since 2004


Jaime C. Yu

Head — Branch Banking

With BDO since 1997


Pedro M. Florescio III

Head — Treasury

With BDO since 2001


Products, Services and SubsidiariesIntermediation

Nestor V. Tan

President and CEO With BDO since 1997


Roberto E. Lapid

President — BDO Leasing and Finance

With BDOLF since 1993

Over 30-years of banking experience

Estrellita V. Ong

Head — Internal Audit

With BDO since 2011

Over 20 years experience in audit

Renato Vergel de Dios

CEO & Director – Generali Life

With Generali since 2009

40 years of experience in insurance

Ramon T. Militar

OIC, One Network Bank

With BDO since 2002

30 years of banking experience

32


I. Overview





Corporate Governance

Five (5) principles of CG

practices

Structure and mechanisms

in place

Full transparency and

timely information

disclosures

Protection of stakeholders’

rights and interests

Strict adherence to best practices and ethical standards

• Accountability

• Fairness

• Integrity

• Transparency

• Performance

• Independent Directors

• Segregation of roles

• Checks & Balances

• Code of Conduct &

Business Ethics


Board


Minimum no. of Independent Directors (2) 5 Independent Directors

Cert. Of Attendance – Board Members

Cert. Of Qualification of Ind. Directors

Corporate Governance Manual

CG Guidelines Disclosure Template

SEC Annual Corp Governance Report

Leading Practices on Corp Governance

Code of Conduct and Business Ethics

Compliant with regulatory requirements

Corporate Social Responsibility

Relief, Rehabilitation and Reconstruction in Disaster hit areas

BDO Foundation’s Disaster Response Advocacy

• Relief operations mounted by BDO Volunteers

• Rehabilitation and reconstruction of rural health centers




• Construction of houses in resettlement areas, multi-purpose halls

and school buildings

• Livelihood projects for families with disabled members (PWDs




• Distribution of teaching aids and instructional materials

Tree Planting Activity in support of “Grow a Million Trees” Campaign

Environmental Initiatives

ESG Considerations in Lending

Lending Limits and Exclusion List

• Imposes limits and monitors exposure to certain industries,

e.g. Gaming, Tobacco and Alcohol

• Restricts lending to other sectors under the Exclusion List

(those deemed to have adverse or harmful effects on the

community and the environment)

• Conducts environmental and social impact assessment

studies for big projects prior to financing

39


IFC Partner in Sustainable Energy Finance (SEF) Program

Green Energy Investments

• Supports green energy investments

in Energy Efficiency (EE) and

Renewable Energy (RE) projects

• Includes training of bank staff,

delivering technical assistance

assessments to BDO clients and

running market awareness

initiatives

• Recognized as One of six (6)

Momentum for Change Lighthouse

Activities for inspiring climate

action in the financing for climate-

friendly investments category

40


Environmental Awareness, Conservation and Management

• Energy conservation

• Water management

• Air quality

• Waste Disposal

• Other activities – tree

planting, clean-ups

• Raises awareness on environmental issues

• Promotes good environmental practices in the workplace

• Mobilizes volunteers for conservation programs

Green Initiatives

“Go Green” Campaign

41


Sustainability, climate change and wildlife protection

• Joint fund-raising campaign using BDO’s ATM network as key

channel to donate to WWF and support its various programs:

• WWF Corporate Partner of the Year Award in support of

WWF’s projects: ocean conservation, climate solutions,

sustainable food and water production and species protection

• Donsol Whale Shark Program

• Environmental Education for

Climate Change

• Agro-Forestry in Ilagan, Isabela

• Food Security in Quezon, Palawan

• Tubbataha Reefs Conservation

Program

• Saving the Manta Rays and Whale

Sharks at Ticao Pass

• Bancas for the Philippines

• Sustainable Handline Tuna Fishing

in Pasuquin, Ilocos Norte

• Mt. Iglit – Baco Natural Park

• Earth Hour

• Biodiversity Protection and

Ecotourism in Donsol

• Double Wild Tamaraw Numbers by

2020

Support for World Wide Fund for Nature (WWF) Philippines

ESG Awards

Silver Awardee Corp Governance Scorecard

Awardee for ten (10) consecutive years

Among the Top 50 Publicly-Listed Companies in the ACGS

Scorecard 2013-2015

Platinum

Award

Recognition for ESG initiatives Corporate

Governance AsiaAmong the Best

in Asia for Environmental Responsibility

One of the Best in Asia for


One of the 15 Recipients of the Institutional Investors

Governance Awards 2016

43


I. Overview





44

Awards and Citations, 2014-2016

Best Bank in the Philippines

Asiamoney

FinanceAsia

Among the Best Emerging Markets Banks

The Asset

Euromoney

Global Finance

Global Finance

Best

Debt/Equity,

M&A

House

FinanceAsiaFinanceAsia FinanceAsia

Best

Investment

Bank

Best

Private

Bank

Best Project

Finance

Bank

Best Retail &

Wholesale

Bank

45


AsiamoneyEuromoney

The Asset The Asset The AssetThe Asset

Best

Investment

Bank

Best

Private

Bank

Best Project

Finance

Bank

Best

Wholesale

Bank

Best

in Trade

Finance

Best in

Fund

Management

Best

FX Bank/

Provider

46


Best

in Internet

Banking

Best

Retail Bank

The Asset

Best in

Internet

Banking

Best

in Trade

Finance

The

Asian BankerBest in Mobile Payment

Initiatives

The

Asian BankerBest in Deposit Initiatives

The

Asian Banker

Best

in Cash Mgt. &

Transaction

Banking

Best

FX Bank/

Provider

Best in

Social Media

Initiatives

The

Asian Banker

Excellence in

Investor

Relations

Best

in Trade

Finance

Best in

Fund

Management

Best

FX Bank/

Provider

47


Best

in Internet

Banking

Asiamoney

FinanceAsia

Among the Most Trusted Brands

Reader’s Digest

Asset Management Company of the Year

The AssetImpact Investor of the Year

Award

Best

FX Bank/

Provider

Best

in Fund

Management

Excellence in

Leadership &

Management

Excellence in

Investor

Relations(Individual Awards)

Best Managed Company in the Philippines – Large Cap

FinanceAsiaAmong the Best Managed

Public Companies

Asiamoney

Nestor V. TanBest Executive

Most Organized Investor Relations

Among the Best Investor Relations Companies in the

Philippines

Among the Best Senior Management IR Support

Teresita T. Sy & Nestor V. Tan One of Asia’s Best CEOs (IR)

Pedro M. Florescio One of Asia’s Best CFOs (IR)

Luis S. Reyes, Jr.One of the Best IR

Professionals (Phils)

48

Thank you.

www.bdo.com.ph

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