March 2012 Investor Presentation Legal Disclaimer This presentation and the presentation materials distributed herewith include forward-looking statements. All statements, other than statements of historical facts that address activities, events, or developments that BDO Unibank, Inc. (“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 indicated by 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. In addition, BDO makes the forward-looking statements referred to herein as of today and undertakes no obligation to update these statements. 2 Presentation Outline I. OVERVIEW II. DIRECTORS AND SENIOR MANAGEMENT III. FINANCIAL HIGHLIGHTS Background The Philippines’ largest bank as at December 31, 2011 A full-service universal bank with one of the widest networks Part of the SM Group with associated synergies and benefits One of the country’s strongest Board of Directors in terms of • Banking experience • Corporate governance 4 Milestones First and only Philippine bank with P1.0 trn in assets Acquired GE Acquired UOB Philippines’ Money Bank P1.0 TN branch banking business Acquired 1st e-Bank P617 BN P862 BN business incl. 60 branches P149 BN Merged with Acquired by Merged with Dao Heng Equitable PCI P234 BN SM Group Bank Philippines Bank. Acquired Est. as Acme KB license P36 BN P121 BN Amex Savings Bank Acquired Savings Bank P77 BN Banco Philippines Santander Assets U/KB license Philippines P13 BN 1968 1976 1994 1996 2001 2002 2003 2005 2007 2009 2010 Commercial Bank Expansion Source: BDO. BDO Total Assets as at each relevant period or year-end. 5 Full Service Operations Transaction Consumer Branch Banking Insurance Trust Banking Banking Lending Deposit and Cash management Brokerage Investment Auto related products services Bancassurance management Mortgage Over-the-counter Electronic banking Unit investment Credit cards transactions trust funds ATMs Personal loans Cross-selling Prepaid cards Living trusts distribution platform Merchant acquiring Retirement funds Remittances Special trusts / custodianship Corporate and Investment Treasury Leasing and Institutional Private Banking Banking Banking Services Finance Corporate and Underwriting and Wealth advisory Fixed income Direct lease, sale middle market distribution of Customized portfolio dealership and leaseback lending Fixed income and management Foreign exchange arrangements Trade finance equity securities transactions Installment paper Specialized lending Financial advisory Portfolio purchases Financial Institutions Project finance management Receivable discounting Cross-border Loan syndication Liquidity and factoring financing management 6 Domestic and International Network North Middle SE Asia, HK Philippines - Europe - 8 America - 4 East - 1 & Taiwan - 7 744 Luzon – 210 Metro Manila – 395 Visayas – 84 Mindanao – 55 • 744 Domestic Branches • 20 International Offices worldwide • 1,645 ATMs Source: BDO. As at 31 March 2012 7 Business Franchise #1 #1 #1 #1 #1 Loans Deposits Remittances Trust & Asset Mgt. Private Banking Leading Trade Market-leading Major Player in 1 2 Services Provider Positions in Almost Cash Management All Business Lines #4 #1 #2 #1 Insurance Brokerage5 Credit Cards3 Leasing & Finance Investment Banking4 (#1 Local) Notes: 1 According to The Asian Banker, Global Finance, The Asset, & Trade Finance Magazine 2 According to The Asset 3 In terms of cardholder base & merchant acquiring gross billings 4 In terms of corporate issuances 5 Among insurance brokers in terms of premiums produced 8 Industry Rankings Total Assets Gross Customer Loans* 1,102 (in PHP billions) 669 (in PHP billions) 959 836 BDO Market Share – 16% BDO Market Share – 21% 460 445 640 238 350 341 317 269 267 263 166 149 113 113 112 96 MBT BPI LBP RCBC DBP PNB Union Citi China BPI MBT LBP RCBC China PNB DBP Citi Allied Customer Deposits Assets Under Management (in PHP billions) (in PHP billions) 711 857 670 BDO Market Share – 17% BDO Market Share – 25% 682 682 507 382 257 237 216 207 165 159 151 140 95 91 88 68 66 BPI MBT LBP RCBC PNB China Union UCPB DBP BPI MBT SChart China UCPB HSBC RCBC LBP Deutsche Notes: 1. Data from published consolidated statements of condition (SOCs) as of 31 Dec. 2011 2. Gross customer loans are BDO estimates 9 Shareholder Structure Top Shareholders as of 31 Dec 2011 PCD Nominee Corp. (Filipino) 27.6% PCD Nominee Corp. (Non-Filipino) 26.5% SM Investments Corp. 26.2% DBTM OT-024 SM Investments Corp. 8.0% Sub-Total, Top Shareholders 88.3% Source: Top 100 Shareholders as of 31 Dec 2011 10 SM Group Profile and Associated Synergies • Largest local retail chain Retail Access to SM’s customer • 177 stores nationwide network • 14,872 tenants • Dominant domestic mall • 5,000 suppliers developer/operator • 3.5 million average daily foot Malls • 42 malls with GFA of 5.1 mn traffic sq.m. • In-house business • Home mortgage financing • Biggest domestic banking for SM property projects Financial operations New business opportunity Services • Interests in BDO and China • Goodwill from the SM Bank franchise • Joint product development • Leading residential SM expertise Property condominium developer in • Middle market knowledge Metro Manila in terms of units • Expertise in retail market sold and real estate Hotels & • Among the fastest growing Branch locations Conven- commercial, resorts and hotel • Branches, ATMs in SM malls tions developers in the Philippines 11 Presentation Outline I. BUSINESS FRANCHISE II. DIRECTORS AND SENIOR MANAGEMENT III. FINANCIAL HIGHLIGHTS Board of Directors One of the strongest Board of Directors in the industry with extensive banking and related experience. 5 directors out of 11 have over 100 years’ combined experience from both Experienced Bankers local and foreign banking institutions Successful . 2 directors are successful businessmen who have made their mark in the Entrepreneurs fields of retailing, real estate, and commercial operations . 1 director is a former Chairman and Senior Partner of Price Waterhouse Auditor Coopers, Phil. and former President of the International Social Security Association, a Geneva-based organization Practicing . 1 director, a Harvard law graduate, is a practicing attorney who heads Lawyer a law firm Ex-Monetary . 1 director is a former member of the BSP’s Monetary Board Board Member . 1 director is a former Regional VP for IFC Operations in East Asia & the Ex- World Bank/IFC Pacific, South Asia, Latin America & the Caribbean, Middle East, & North Africa Senior Official and currently representing the IFC. 13 Board of Directors Teresita T. Sy, 61, Filipino, is the Chairperson of BDO and was first elected to the Board in 1977. Concurrently, she serves as the Chairperson, Vice Chairperson, and/or Director of various subsidiaries and affiliates of BDO such as BDO Private Bank, Inc., BDO Leasing & Finance, Inc., BDO Capital & Investment Corporation, BDO Foundation, Inc., Generali Pilipinas Holding Company, Inc., Generali Pilipinas Life Assurance Company, Inc., and Generali Pilipinas Insurance Co., Inc. Ms. Sy is the Vice Chairperson of SM Investments Corporation and adviser to the Board of SM Prime Holdings, Inc. She also sits as Chairperson, Vice Chairperson and/or Teresita T. Sy Director of such companies as Multi-Realty Development Corporation, SM Commercial Properties Chairperson (formerly SM Land, Inc.), Supervalue, Inc, SM Mart, Inc., SM Retail, Inc., Super Shopping Market, Inc., Pilipinas Makro, Inc., and First Asia Realty Development Corp. A graduate of Assumption College, she brings to the Board her varied expertise in banking and finance, retail merchandising, mall and real estate development. She is the first Filipino to receive the Retail Banker of the Year Award from The Asian Banker and the only Filipino to be included among Asia’s 50 Power Businesswomen by Forbes Magazine. She is also a recipient of the Asian Corporate Director Recognition Award from Corporate Governance Asia. Corazon S. de la Paz-Bernardo, 70, Filipino, is currently the Vice Chairperson of BDO. She was President of the Social Security System and Vice Chairman of the Social Security Commission from 2001 to 2008. She was also President of the International Social Security Association from 2004 to 2010. She was Chairman and Senior Partner of Joaquin Cunanan & Co. (Pricewaterhouse Coopers, Philippines) from 1981 to 2001. She was past president of the Philippine Institute of Certified Public Accountants, the Management Association of the Philippines, the Financial Executives Institute of the Philippines, Inc., and the Philippine Fulbright Scholars Association. Corazon S. de la Paz-Bernardo Vice Chairperson 14 Board of Directors Jesus A. Jacinto, Jr., 64, Filipino, was elected Vice Chairman of BDO in May 1996, and is concurrently the Chairman and President of BDO Insurance Brokers, Inc. Formerly, he was Director and Executive Vice President of CityTrust Banking Corp.; Director of CityTrust Investments Phil. and CityTrust Finance Corp.; and Vice President and Managing Partner of Citibank