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Advantages of Listing in the

Philippine Stock ExchangePhilippines Nickel

November 4, 2015

Atty. Roel A. RefranChief Operating Officer

The Philippine Stock Exchange, Inc.

1


Disclaimer

This document is a property of the PSE and cannot be used or reproduced, distributed or

forwarded by any person or company, in any form and in any manner, without the written

consent of the PSE. Any and all unauthorized reproduction, distribution or forwarding of

this document, in whole or in part, is subject to legal action.

This document is not intended for general circulation and does not, in any form, constitute

legal, financial or investment advice and neither does it make any recommendation or

endorsement to buy and/or sell any kind of investment product(s). The PSE reserves the

right to make adjustments, omissions, corrections, and other similar actions to this

document at any period of time. The PSE does not warrant or represent, expressly or

impliedly, the accuracy, validity, correctness and completeness of the information stated in

this document. The PSE, together with its affiliates and subsidiaries, expressly disclaim any

and all liability arising from any actions or decisions made on the basis of this document,

its content, and/or any changes, omission or error of the aforementioned.

Any views or opinions, either defamatory or complimentary, are solely those of the

author/speaker and do not necessarily represent those of the PSE. The PSE together with

its affiliates and subsidiaries will not accept any liability arising from the consequences of,

and any actions or decisions made in respect to any statements expressed henceforth.


Outline

The Capital Market

Philippine Economy Snapshot and Stock Market

Performance

Raising Capital for Your Business

ASEAN Initiatives

The Capital Market


The Capital Market

Companies

Financial

Instruments

Investors

Philippine Economy Snapshot

and Stock Market Performance


The Philippines

Real economy is generally stable

Continued reforms

Financial markets more volatile than the real market

National

Information and

Credit Evaluation

Ratings Inc.

Ave. Inflation (in %) 1.6 (9M 2015)

91-day T-bill Rate (in %) 1.491 (Oct 2015)

WEF Competitiveness

Ranking47 (2015)

Investment Grade Ratings From

Sources: Philippine Statistics Authority, Bangko Sentral ng Pilipinas, Department of Treasury, and WEF 2015-

2016 Global Competitiveness Report

Nat’l Gov’t Expenditure

Growth (in %)11.4 (8M 2015)

Philippine Economy Snapshot

GDP Growth (in %) 5.6 (2Q 2015)


as of 20 Apr 2015

7,325.76 points

up by 1.32%as of 27 October 2015

all time high

8,127.48 points on 10 April 2015

27 YTD

record highs

ONE OF TWO INDICES to post growth for six consecutive years

Stock Market Performance

Raising Capital for Your Business


Funding Options Snapshot

Debt

Equity

Short-Term LoansMaturity of 1 Year

and Below

Medium-Term LoansMore than 1 Year to

5 Years

Long-Term Loans More than 5 Years

Growing Your Business

Listing through IPOOffering Shares to

the Public

Private PlacementOffering Shares to

Chosen Investors


Benefits of Going Public

Listing by way of

Introduction

Access to Capital Markets

Enhanced Valuation

Improved Liquidity

Enhanced Credibility with

Stakeholders

Increased Public Awareness

Employee Retention/Attraction

Ways of Going Public

Initial Public Offering (IPO)

Listing by Way of Introduction

Benefits


Board Listing Rules

2015 025 20302020Criteria Main Board SME Board

Authorized Capital Stock

At least Php500 million(US$11.31 million)


Operating History

EBITDA (last 3 years)

Three years Three years


At least Php15 million(US$339,182.34)

Directors

Minimum Public Offering

7 Directors, of which

2 are Independent

7 Directors, of which

2 are Independent

Based on Market Cap Based on Market Cap

*Adoption of the Philippine Mineral Reporting Code (PMRC) for Mining Companies


Listing for Mining Companies

Certain reports need to be submitted

Mining companies are exempt from the

EBITDA and operating history requirements


Philippine Mineral Reporting Code (PMRC)

Listing by way of

Introduction

Aligns reports with global standards

Sets out the guidelines for public

reporting of exploration results, mineral resources and ore reserves

Applicant companies must submit a report in accordance with

the PMRC

Reports of listed companies must be

PMRC compliant


Minimum Public Offering

33%

25%

20%

15%

10%

0%

5%

10%

15%

20%

25%

30%

35%

< P500M P500M to P1B P1B to P5B P5B to P10B > P10B

Based on Market Capitalization


Cost of Going Public

0.1%PSEListing Fee

Based on MARKET CAPITALIZATION

P15 Billion & below0.1% of MCAP but not

lower than P500,000

Over P15 BillionP15M plus 0.01% of the

excess over P15B MCap P50,000 processing fee for Main Board

P20,000 processing fee for SME Board


Case Study: Fund Raising Activity in the PSE

Mining

Owns four operating

mines and has five

properties in various

stages of exploration

for nickel

Php 4.5 billion

Nature of Business Capital Raised Market Capitalization

On Listing Date As of 15 Oct 2015

Php 22.10 B

(US$ 491.27 M)Php 52.34 B

(US$ 1.16 B)

236.83%

Php 15.00

Offer Price

Php 16.50

Close on IPO

Book Value before Listing:

Php 14.65 B(US$ 325.55)


PSE as a Listing Venue

ASEAN Initiatives


ASEAN Initiatives on Capital Markets

• Develop various financing methods

• Expand bond issues related to domestic demand and services

• Develop a credible local credit rating industry

ASEAN Bond

Market Initiative

•Ongoing marketing activities to create awareness of ASEAN as an investible asset class

•Active participation in the development of the ASEAN Capital Market Infrastructure Framework

Invest ASEAN

Initiative

Image Source: Google


Enhanced ASEAN Exchanges Common Website

Dynamic header

with ASEAN trivia

and quick links

ASEAN Stars by rank,

market, or sector

Market news

Real-time

benchmark indices

stats

Twitter feed and

ASEAN FTSE

Analytics

www.aseanexchanges.org


ASEAN Trading Link

MY

SG

TH

PH ?

ID ?VN ?

as of today, only three exchanges are interconnected via the link

GREATER MARKET

ACCESSto a large retail base

STRONGER

PRESENCEin the global arena

WIDER PRODUCT

SELECTIONacross all markets

ADVANTAGES


FTSE ASEAN Index Series1

ASEAN CG Scorecard 2

ASEAN Disclosure Standards3

ASEAN CIS Fund Passport4

Other ASEAN Initiatives

Image Source: ASEAN Exchanges website, Google

Cross Border Issuance5


ANNOUNCEMENT

November 129:00am-3:00pmDBP Makati

Register:+632 [email protected]


Thank you!

© The Philippine Stock Exchange, Inc. (PSE). All rights reserved.

This document is a property of the PSE and cannot be used or reproduced, distributed or forwarded by any person or company, in any form and in

any manner, without the written consent of the PSE. Any and all unauthorized reproduction, distribution or forwarding of this document, in whole or

in part, is subject to legal action.

This document is not intended for general circulation and does not, in any form, constitute legal, financial or investment advice and neither does it

make any recommendation or endorsement to buy and/or sell any kind of investment product(s). The PSE reserves the right to make adjustments,

omissions, corrections, and other similar actions to this document at any period of time. The PSE does not warrant or represent, expressly or

impliedly, the accuracy, validity, correctness and completeness of the information stated in this document. The PSE, together with its affiliates and

subsidiaries, expressly disclaim any and all liability arising from any actions or decisions made on the basis of this document, its content, and/or any

changes, omission or error of the aforementioned.

Any views or opinions, either defamatory or complimentary, are solely those of the author/speaker and do not necessarily represent those of the

PSE. The PSE together with its affiliates and subsidiaries will not accept any liability arising from the consequences of, and any actions or decisions

made in respect to any statements expressed henceforth.

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Exchange, Inc.

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