1. 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 Capitalizing on ASEAN Integration

2. 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 ASEAN Integration  What are the Opportunities?  What is Government doing?  How can SharePHIL help?

3. 3 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 ASEAN integration an opportunity, not a threat: Philippine Companies can take advantage of favorable ASEAN demographics Population (thousands) GDP (USD Billion) Philippines101,803269.0 ASEAN631,8582,395.3 Opportunity for Phil Companies to tap larger market  Population of ASEAN is over six times (6x)  Size of the economy is almost nine times (9x)

4. 4 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 ASEAN integration an opportunity, not a threat: Philippine Companies can take advantage of favorable ASEAN demographics ASEAN becoming one of the world’s biggest economies  Combined GDP of $2.4T in 2013 (7 th largest in the world if counted as one economy)  Will be the fastest growing consumer market with GDP of USD 10 trillion by 2030  Consuming households in ASEAN is expected to almost double by 2025, from 67 million in 2010 to 125 million in 2025.

5. 5 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 The Philippine economy stands out from the rest of ASEAN Leads the region in GDP growth 2014: 0.7% 2013: 2.9% 2012: 6.5% 2014: 6.0% 2013: 5.3% 2012: 5.0% 2014: 4.6% 2013: 4.8% 2012: 2.5% 2014: 6.0% 2013: 4.7% 2012: 5.6% 2014: 5.0% 2013: 5.6% 2012: 6.0% 2014: 6.1% 2013: 7.2% 2012: 6.8%

6. 6 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 The Philippine economy stands out from the rest of ASEAN Leads the region in GDP growth INVESTMENT GRADE CREDIT WITH STABLE OUTLOOK RatingOutlook S&PBBBstable Moody’sBaa2stable FitchBBB-stable

7. 7 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 The Philippine economy stands out from the rest of ASEAN Equity Market remains robust with more room for growth 201020112012201320142015 PSEi Facts  7,601.17 pts (up 5.1% YTD) (As of 19 June 2015)  All time high of 8,127.48 pts (on 10 April 2015)  27 Record Highs YTD

8. 8 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 The Philippine economy stands out from the rest of ASEAN Philippine Corporates moving towards bond issuances over traditional bank finance  The non-sovereign bond market in the Philippines has grown significantly over the past six years  In 2014, total corporate debt outstanding was about $28.9 billion or 25% the size of the bank debt market as opposed to only 20% in 2009.  Bank Loans have grown by 14% since 2009 while Corporate Bonds have grown by 19% over the same period.

9. 9 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 I. ASEAN Initiatives - ASEAN Capital Markets Forum (ACMF) ASEAN Capital Market Integration Plan Streamlined review of Common Prospectus ASEAN Corporate Governance Scorecard ASEAN Collective Investments Schemes (ASEAN-CIS) ASEAN Trading Link II. ASEAN+ (ASEAN+3, APEC) Initiatives ASEAN+3 Multi-Currency Bond Issuance Framework Asia-Pacific Regional Funds Passport (ARFP) Government is making strides to improve regional integration International frameworks will foster more opportunities for capital raising and investing

10. 10 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 ASEAN+3 Multi-currency Bond Issuance Framework New regional bond issuance framework which would facilitate cross-border bond issuance within the ASEAN+3 participating economies Along with Thailand, various other countries including the Philippines, Japan and Singapore, were identified as possible markets for AMBIF’s pilot issuance Philippine companies who want to expand their operations to other countries in the region can easily raise capital through intra- regional funding and investment Need for these Philippine companies to follow international metrics of stability and corporate governance Government is making strides to improve regional integration International frameworks will foster more opportunities for capital raising and investing

11. 11 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 Japanese bank issues Baht bonds Bt 3.2bn ($90m) bond Proceeds of the issuance for support of its lending to Japanese and Thai companies through its (Mizuho Bank's) branches in Thailand The bank can sell the bond in a nine-month period starting from May 1, 2015. Government is making strides to improve regional integration International frameworks will foster more opportunities for capital raising and investing

12. 12 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 ASEAN Trading Link New platform designed to link the various national exchanges in South East Asia Provides a common access point for the ASEAN exchanges in the network via an inter-connected exchange hub Initial phase participants: Bursa (BMB), Stock Exchange of Thailand (SET) & SGX-ST (the equities branch of SGX) BMB, SET and SGX represent approximately 2/3 of the USD 2.0 trillion market capitalization of the seven members of the ASEAN Exchanges Government is making strides to improve regional integration International frameworks will foster more opportunities for capital raising and investing

13. 13 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 ASEAN Trading Link: Benefits A broker in the local market through just the connection to the ASEAN Common Exchanges (the hub) will be able to offer all its clients access to all the ASEAN markets that are part of the Intra- ASEAN Network (provided that broker has accounts setup with the respective sponsoring broker) ASEAN investors will have access to a broader and more diverse portfolio of stocks to invest in and at a lower cost than what they might otherwise have to pay Government is making strides to improve regional integration International frameworks will foster more opportunities for capital raising and investing

14. 14 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 ASEAN CG Scorecard: How Philippine PLCs performed The average corporate governance scores of the top 94 Philippine PLCs by market capitalization rose from 48.91 points in 2012 to 58 points in 2013. Of the five corporate governance categories, the most dramatic improvement in average scores on a year-on-year basis was in the Role of the Stakeholders (4.85 points in 2013 compared with 2.80 points in 2012), Disclosure and Transparency (16.03 points in 2013 up from 13.58 points in 2012), and Responsibilities of the Board (19.71 points in 2013 versus 16.36 points in 2012). Good corporate governance is good economics Philippine companies should adopt international standards of corporate governance to gain the confidence of international investors

15. 15 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 33 54 111 Good corporate governance is good economics Philippine companies should adopt international standards of corporate governance to gain the confidence of international investors

16. 33 54 111 219 31 254 195 37 246 139 50 250 192 144 244 186 Thank You