SECURITIES AND EXCHANGE COMMISSION

Transcription

1 11/16/2015 Quarterly Report CR SECURITIES AND EXCHANGE COMMISSION SEC FORM 17 Q QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER 1. For the quarterly period ended Sep 30, SEC Identification Number A BIR Tax Identification No Exact name of issuer as specified in its charter I REMIT, INC. 5. Province, country or other jurisdiction of incorporation or organization Metro Manila, PHILIPPINES 6. Industry Classification Code(SEC Use Only) 7. Address of principal office 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City Postal Code Issuer's telephone number, including area code (632) Local 100 / 105 / Former name or former address, and former fiscal year, if changed since last report Not applicable 10. Securities registered pursuant to Sections 8 and 12 of the SRC or Sections 4 and 8 of the RSA Title of Each Class Yes No Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding Common Stock 612,251, Are any or all of registrant's securities listed on a Stock Exchange? If yes, state the name of such stock exchange and the classes of securities listed therein: The Philippine Stock Exchange, Inc. 12. Indicate by check mark whether the registrant: (a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17 thereunder 1/3

2 11/16/2015 Quarterly Report or Sections 11 of the RSA and RSA Rule 11(a) 1 thereunder, and Sections 26 and 141 of the Corporation Code of the Philippines, during the preceding twelve (12) months (or for such shorter period that the registrant was required to file such reports) Yes No (b) has been subject to such filing requirements for the past ninety (90) days Yes No The Exchange does not warrant and holds no responsibility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and submitted by the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should be addressed directly to the Corporate Information Officer of the disclosing party. I Remit, Inc. I PSE Disclosure Form 17 2 Quarterly Report References: SRC Rule 17 and Sections 17.2 and 17.8 of the Revised Disclosure Rules For the period ended Sep 30, 2015 Currency (indicate units, if applicable) PHILIPPINE PESO Balance Sheet Period Ended Sep 30, 2015 Dec 31, 2014 Current Assets 1,800,149,207 4,100,774,190 Total Assets 2,016,980,805 4,308,760,867 Current Liabilities 730,670,870 3,053,621,475 Total Liabilities 734,732,175 3,057,600,452 Retained Earnings/(Deficit) 257,365, ,000,808 Stockholders' Equity 1,282,248,630 1,251,160,415 Stockholders' Equity Parent 0 0 Book Value per Share Fiscal Year Ended (Audited) Income Statement Current Year (3 Months) Previous Year (3 Months) Current Year To Date Previous Year To Date Operating Revenue 169,615, ,948, ,446, ,545,173 Other Revenue 5,560,461 5,482,556 34,595,736 19,444,004 Gross Revenue 175,175, ,431, ,042, ,989, /3

3 11/16/2015 Quarterly Report Operating Expense 164,472, ,858, ,865, ,165,423 Other Expense 6,670,178 11,343,459 22,354,858 36,688,709 Gross Expense 171,143, ,202, ,220, ,854,132 Net Income/(Loss) Before Tax 4,032,565 1,770,806 35,822,009 35,135,045 Income Tax Expense 3,431,966 3,154,347 10,481,242 10,778,778 Net Income/(Loss) After Tax Net Income Attributable to Parent Equity Holder Earnings/(Loss) Per Share (Basic) Earnings/(Loss) Per Share (Diluted) 600,599 4,925,153 25,340,767 24,356, ,599 4,925,153 25,340,767 24,356, Other Relevant Information Filed on behalf by: Name Designation Harris Jacildo President and Chief Operating Officer 3/3

4 November 13, 2015 THE PHILIPPINE STOCK EXCHANGE, INC. 3rd Floor, Philippine Stock Exchange Plaza Ayala Triangle, Ayala Avenue Makati City, Metro Manila Attention Ms. Janet A. Encarnacion Head, Disclosure Department Gentlemen: In accordance with the Securities Regulation Code, we are submitting herewith a copy of SEC Form 17-Q (Quarterly Report) of I-Remit, Inc. as at September 30, Thank you. Very truly yours,. JACILDO & Chief Operating Officer I-Remit, Inc. 26/F Discovery Centre 25 ADB Avenue Ortigas Center, Pasig City 1605 Philippines Telephone: (632) and (632) Facsimile: (632) Website: Facebook: Twitter:

5 I I SECURITIES AND EXCHANGE COMMISSION SECBuilding,EDSA,Greenhilis,MandaluyongCitY,MetroManila,Philippines Tel:(632) to 39 Fax:(632) Barcode Page The following document has been received: Receiving Officer/Encoder : Josefina A. Gramata Receiving Branch : SEC Head Office Receipt Date and Time November 13, :43:08 PM Received From : Head Office Company Representative Doc Source Company Information SEC Registration No. Company Name Industry Classification Company Type A I-REMIT INC. Stock Corporation Document Information Document 10 Document Type Document Code Period Covered No. of Days Late Department Remarks Q (FORM 11-Q:QUARTERLY REPORT/FS) 17-Q September 30, 2015 o CFD

6 COVER SHEET A SEC Registration Number I - R E M I T, I N C. A N D S U B S I D I A R I E S (Company s Full Name) 2 6 / F D i s c o v e r y C e n t r e, 2 5 A D B A v e n u e, O r t i g a s C e n t e r, P a s i g C i t y (Business Address: No. Street City/Town/Province) Mr. HARRIS D. JACILDO (632) Local 100/105/109 (Contact Person) (Company Telephone Number) Q 0 7 Month Day (Form Type) Month Day (Fiscal Year) (Annual Meeting) (Secondary License Type, If Applicable) Dept. Requiring this Doc. Amended Articles Number/Section Total Amount of Borrowings Total No. of Stockholders Domestic Foreign To be accomplished by SEC Personnel concerned File Number LCU Document ID Cashier S T A M P S Remarks: Please use BLACK ink for scanning purposes.

7 SEC Number PSE Code File Number A I-REMIT, INC. AND SUBSIDIARIES (Company s Full Name) 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City, 1605 Metro Manila (Company s Address) (02) Local 100 / 105 / 109 (Telephone Number) December 31 (Fiscal Year Ending) (Month and Day) SEC FORM 17-Q Form Type Amendment Designation (if applicable) September 30, 2015 Period Ended Date (Secondary License Type and File Number)

8 SECURITIES AND EXCHANGE COMMISSION SEC FORM 17-Q QUARTERLY REPORT PURSUANT TO SECTION 17 OF THE SECURITIES REGULATION CODE AND SRC RULE 17(2)(b) THEREUNDER 1. For the quarterly period ended September 30, Commission Identification No. A BIR Tax Identification No Exact name of registrant as specified in its charter I-REMIT, INC. 5. Metro Manila, PHILIPPINES 6. (SEC Use Only) Province, Country or other jurisdiction of Industry Classification Code incorporation or organization 7. 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City 1605 Address of principal office Postal code 8. (632) Local 100 / 105 / 109 Issuer s telephone number, including area code 9. Not applicable Former name, former address, and former fiscal year, if changed since last report 10. Securities registered pursuant to Sections 8 and 12 of the SRC, or Sec. 4 and 8 of the RSA Title Common Stock Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding 612,498,122 shares 11. Are any or all of these securities listed on a Stock Exchange? Yes [ ] No [ ] If yes, state the name of such stock exchange and the classes of securities listed therein: The Philippine Stock Exchange, Inc. 12. Check whether the issuer: (a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17.1 thereunder or Section 11 of the RSA and RSA Rule 11(a)-1 thereunder, and Sections 26 and 141 of The Corporation Code of the Philippines during the preceding twelve (12) months (or for such shorter period that the registrant was required to file such reports) Yes [ ] No [ ] (b) has been subject to such filing requirements for the past 90 days Yes [ ] No [ ]

9 I-REMIT, INC. AND SUBSIDIARIES Consolidated Balance Sheets (In Philippine Peso) Unaudited Audited Sept. 30, 2015 Dec. 31, 2014 ASSETS Current Assets Cash and cash equivalents 1,276,703,958 1,969,048,590 Trade and other receivables - net 233,015, ,701,489 Financial assets at fair value through profit or loss 258,775,017 1,481,530,014 Prepayments and other current assets 31,654,955 35,494,097 1,800,149,207 4,100,774,190 Non-current Assets Investment in an associate 8,454,995 7,495,453 Property and equipment - net 29,531,128 25,255,946 Intangible assets - net 113,479, ,306,239 Retirement asset 11,464,101 10,747,784 Deferred tax assets 11,041,862 12,190,196 Other non-current assets 42,860,397 39,991, ,831, ,986,677 TOTAL ASSETS 2,016,980,805 4,308,760,867 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Current Liabilities Financial liability at fair value through profit or loss 0 1,231,359,673 Beneficiaries and other payables 173,911, ,012,713 Advances from stockholders 0 0 Income tax payable 6,759,493 6,249,089 Loans payable 550,000,000 1,305,000, ,670,870 3,053,621,475 Non-current Liabilities Deferred tax liabilities 4,061,305 3,978,977 Retirement benefit obligation 0 0 4,061,305 3,978,977 TOTAL LIABILITIES 734,732,175 3,057,600,452 STOCKHOLDERS' EQUITY Capital Stock 617,725, ,725,800 Additional Paid-in Capital 391,232, ,232,478 Unappropriated Retained Earnings 242,840, ,040,455 Appropriated Retained Earnings 14,524,833 13,960,353 Cumulative Translation Adjustment 22,072,199 (4,216,195) Re-measurements 8,377,877 8,377,877 Treasury Stock (14,524,833) (13,960,353) TOTAL STOCKHOLDERS' EQUITY 1,282,248,630 1,251,160,415 TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY 2,016,980,805 4,308,760,867 1

10 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Income (In Philippine Peso) Unaudited Unaudited Unaudited Unaudited Jan. 1 to Jan. 1 to July 1 to July 1 to Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 REVENUES 505,446, ,545, ,615, ,948,803 COST OF SERVICES 131,842, ,209,638 43,955,506 53,048,856 GROSS PROFIT 373,604, ,335, ,659, ,899,947 NET TRADING GAINS (LOSSES) 3,854,676 1,340,272 1,194,509 (416,282) OTHER INCOME 29,781,518 17,157,412 4,043,858 5,583, ,240, ,833, ,898, ,067,063 OPERATING EXPENSES Salaries, wages and employee benefits 167,647, ,405,143 55,732,164 66,718,695 Rental 51,986,064 48,921,624 17,941,588 16,053,740 Marketing 20,068,705 23,512,792 5,970,423 9,226,978 Professional fees 38,102,066 35,852,979 14,383,060 12,510,981 Transportation and travel 10,900,963 14,029,473 4,418,296 6,151,754 Communication, light and water 14,865,945 19,577,402 5,075,804 6,445,202 Photocopying and supplies 5,900,181 8,758,310 1,965,822 3,168,609 Depreciation and amortization 9,543,797 9,165,805 3,340,171 3,218,970 Entertainment, amusement and recreation 2,938,415 5,422,183 1,114, ,195 Other operating expenses 28,070,027 21,310,074 10,575,745 7,825, ,023, ,955, ,517, ,809,850 FINANCE COSTS 22,354,858 36,688,709 6,670,178 11,343,459 EQUITY IN NET EARNINGS 959, , , ,440 PROFIT BEFORE TAX 35,822,009 35,135,045 4,032,565 (1,770,806) INCOME TAXES 10,481,242 10,778,778 3,431,966 3,154,347 PROFIT 25,340,767 24,356, ,599 (4,925,153) BASIC EARNINGS PER SHARE (0.008) 2

11 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income (In Philippine Peso) Unaudited Unaudited Unaudited Unaudited Jan. 1 to Jan. 1 to July 1 to July 1 to Sept. 30, 2015 Sept. 30, 2014 Sept. 30, 2015 Sept. 30, 2014 PROFIT 25,340,767 24,356, ,599 (4,925,153) OTHER COMPREHENSIVE INCOME THAT WILL BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS Translation adjustment 26,288,394 6,086,092 15,326,435 13,033,251 OTHER COMPREHENSIVE INCOME THAT WILL NOT BE RECLASSIFIED SUBSEQUENTLY TO PROFIT OR LOSS Remeasurements TOTAL COMPREHENSIVE INCOME 51,629,161 30,442,359 15,927,034 8,108,098 ATTRIBUTABLE TO: Equity holders of the parent 51,629,161 30,442,359 15,927,034 8,108,098 Non-controlling interest ,629,161 30,442,359 15,927,034 8,108,098 3

12 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Equity (In Philippine Peso) Unaudited Unaudited Jan. 1 to Jan. 1 to Sept. 30, 2015 Sept. 30, 2014 CAPITAL FUNDS, BEGINNING 1,251,160,415 1,267,774,495 Profit 25,340,767 24,356,267 Cumulative Translation Adjustment 26,288,397 6,086,092 Total Comprehensive Income for the Period 51,629,164 30,442,359 Cash Dividends (19,976,469) (30,641,806) Purchase of Own Stock (564,480) (1,560,000) CAPITAL FUNDS, ENDING 1,282,248,630 1,266,015,048 4

13 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows (In Philippine Peso) Unaudited Unaudited Jan. 1 to Jan. 1 to Sept. 30, 2015 Sept. 30, 2014 CASH FLOWS FROM OPERATING ACTIVITIES Profit before tax 35,822,009 35,135,045 Adjustments for: Finance cost 22,354,858 36,688,709 Depreciation 8,885,239 8,597,311 (Gain) loss on disposal of financial assets at FVTPL (3,854,676) 1,340,272 Provision for bad debts 4,799,591 0 Retirement benefits 2,079,716 3,447,617 Amortization 658, ,494 Loss on write-off of assets 0 913,601 Loss (Gain) on sale of property and equipment 1,956,556 (77,690) Dividends income (830,668) (557,973) Equity in net earnings of associates (959,542) (946,320) Unrealized foreign exchange (gain) loss - net (15,319,727) (1,480,659) Finance income (9,645,236) (11,478,073) Operating cash flows before changes in working capital 45,946,678 72,150,334 Decrease (increase) in operating assets: Derivative financial assets at FVTPL 1,231,943,471 (161,479,881) Trade and other receivables 383,203,621 59,056,579 Prepayments and other current assets 3,321,859 (9,048,525) Other non-current assets (3,257,502) (11,301,735) Increase (decrease) in operating liabilities: Beneficiaries and other payables (296,425,629) (9,466,467) Financial liability at FVTPL (1,231,359,673) 162,870,308 Cash generated from (used in) operations 133,372, ,780,613 Income taxes paid (10,153,893) (41,528,202) Net cash from (used in) operating activities 123,218,932 61,252,411 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from disposals of financial assets at FVTPL 90,026,985 77,328,130 Finance income received 9,957,894 11,532,062 Dividend income received 830, ,973 Additions to software (1,832,914) (945,000) Contributions to retirement fund (2,796,033) 0 Additions to property and equipment (15,961,052) (9,533,044) Additions to financial assets at FVPL (83,638,194) (86,555,683) Net cash from (used in) investing activities (3,412,646) (7,615,562) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from loans 550,000, ,000,000 Payment of own stock (564,480) (1,560,000) Finance cost paid (24,747,013) (38,902,546) Payment of cash dividends (19,976,469) (30,641,806) Payment of loans (1,305,000,000) (988,000,000) Net cash from (used in) financing activities (800,287,962) (279,104,352) EFFECTS OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (11,862,956) 7,231,725 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (692,344,632) (218,235,778) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 1,969,048, ,316,542 CASH AND CASH EQUIVALENTS AT END OF PERIOD 1,276,703, ,080,764 5

14 I-REMIT, INC. AND SUBSIDIARIES Aging of Consolidated Receivables (In Philippine Peso) Unaudited September 30, 2015 Total 0-60 Days Days Days Over 360 Days Agents 98,173,707 90,547,955-5,675,914 1,949,838 Couriers 11,424,094 11,424, Related Parties 17,978, , , ,832,414 Others 105,439,446 77,331,169 15,653,234 6,612,071 5,842, ,015, ,742,886 16,358,200 12,288,968 24,625,223 6

15 PART I FINANCIAL INFORMATION Item 1. Financial Statements The following financial statements are submitted as part of this report: a. Consolidated Balance Sheets as of September 30, 2015 (unaudited) and December 31, 2014 (audited); b. Unaudited Comparative Consolidated Statements of Income for the nine (9) months ended September 30, 2015 and September 30, 2014, and for three (3) months from July 1, 2015 to September 30, 2015 and from July 1, 2014 to September 30, 2014; c. Unaudited Comparative Consolidated Statements of Comprehensive Income for the nine (9) months ended September 30, 2015 and September 30, 2014, and for three (3) months from July 1, 2015 to September 30, 2015 and from July 1, 2014 to September 30, 2014; d. Unaudited Comparative Consolidated Statements of Changes in Equity for the nine (9) months ended September 30, 2015 and September 30, 2014; e. Unaudited Comparative Consolidated Statements of Cash Flows for the nine (9) months ended September 30, 2015 and September 30, 2014; f. Unaudited Aging of Consolidated Receivables as of September 30, Item 2. Management s Discussion and Analysis of Financial Condition and Results of Operations September 30, 2015 vs. December 31, 2014 The total assets of the Company decreased by PHP million or -53.2% from PHP 4,308.8 million as of December 31, 2014 to PHP 2,017.0 million as of September 30, Cash and cash equivalents decreased by PHP million or -35.2% from PHP 1,969.0 million as of December 31, 2014 to PHP 1,276.7 million as of September 30, Cash and cash equivalents as of September 30, 2015 and December 31, 2014 are 63.3% and 45.7% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Trade and other receivables-net decreased by PHP million or -62.1% from PHP million as of December 31, 2014 to PHP million as of September 30, 2015 mainly due to higher funding requirement for NTP transactions in December 2014 due to year-end long holidays. Other receivables consist of advances to fulfillment partners, advances to trading agents, advances to related parties, advances to officers and employees, among others. Trade and other receivables-net as of September 30, 2015 and December 31, 2014 are 11.6% and 14.3% of the total assets as of September 30, 2015 and December 31, 2014, respectively. 7

16 Financial assets at fair value through profit or loss (FVPL), which consist of investments in private debt and equity securities listed overseas and held for trading by Power Star Asia Group Limited (PSAGL) and other financial derivatives, decreased by PHP 1,222.7 million or % from PHP 1,481.5 million as of December 31, 2014 to PHP million as of September 30, Other financial assets decreased by PHP 1,231.7 million, offset partly by the net increase on debt and security investments at PHP 9.0 million or 42.2%. Financial assets at FVPL as of September 30, 2015 and December 31, 2014 are 12.8% and 34.4% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Prepayments and other current assets decreased by PHP 3.8 million or -10.8% from PHP 35.5 million as of December 31, 2014 to PHP 31.7 million as of September 30, 2015 significantly on account of various advances to suppliers and contractors, decreased by PHP 4.3 million or 50.0% from PHP 8.5 million as of December 31, 2014 to PHP 4.2 million as of September 30, Business development cost increased insignificantly in the current year. Prepayments and other current assets as of September 30, 2015 and December 31, 2014 are 1.6% and 0.8% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Total current assets decreased by PHP 2,300.6 million or -56.1% from PHP 4,100.8 million as of December 31, 2014 to PHP 1,800.2 million as of September 30, Total current assets as of September 30, 2015 and December 31, 2014 are 89.3% and 95.2% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Investment in an associate increased by PHP 1.0 million or 12.8% from PHP 7.5 million as of December 31, 2014 to PHP 8.5 million as of September 30, This increase represents equity income on Hwa Kung Hong & Co., Ltd. (in Taiwan). Investment as of September 30, 2015 and September 30, 2014 are 0.4% and 0.2% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Property and equipment-net increased by PHP 4.3 million or 16.9% from PHP 25.2 million as of December 31, 2014 to PHP 29.5 million as of September 30, 2014 mainly due to the installation of multilayer security devices, servers for Microsoft exchange projects and acquisition of additional communication equipment by the Parent Company. Property and equipment-net as of September 30, 2015 and December 31, 2014 are 1.5% and 0.6% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Intangible assets-net increased by PHP 1.2 million or 1.0% from PHP million as of December 31, 2014 to PHP million as of September 30, Intangible assets consist of Goodwill which stood at PHP million as of September 30, 2015, same level as of December 31, 2014 and software acquisitions. Intangible assets-net as of September 30, 2015 and December 31, 2014 are 5.6% and 2.6% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Retirement asset increased slightly by PHP 0.7 million or 6.7% from PHP 10.7 million as of December 31, 2014 to PHP 11.5 million as of September 30, 2015 as a result of the additional retirement contribution accrued for the first and second quarters of the current year. Retirement asset as of September 30, 2015 and December 31, 2014 are 0.6% and 0.2% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Deferred tax assets decreased by PHP 1.2 million or -9.4% from PHP 12.2 million as of December 31, 2014 to PHP 11.0 million as of September 30, 2015 essentially due to the decrease in foreign currency closing rate applied in translating the DTA of I-Remit New Zealand Limited (INZL) to PHP from in December 31, 2014 to in September 30, Deferred tax assets as of September 30, 2015 and December 31, 2014 are 0.5% and 0.3% total assets as of September 30, 2015 and December 31, 2014, respectively. 8

17 Other non-current assets increased by PHP 2.9 million or 7.2% from PHP 40.0 million as of December 31, 2014 to PHP 42.9 million as of September 30, 2015, significantly due to the increase in receivable from the Bureau of Internal Revenue (BIR) for input VAT recorded by the Parent Company this year at PHP 6.5 million or 52.4% from PHP 12.4 million as of December 31, 2014 to PHP 18.9 million as of September 30, 2015, offset partly by the reclassification of the CAD 150,000 cash deposit with the Royal Bank of Canada by International Remittance (Canada) Ltd. (IRCL) to money market placement. The CAD 150,000 was invested with the same bank under a guaranteed investment certificate. Other noncurrent assets include refundable deposits, receivable from the BIR and investment in PLDT. Other non-current assets as of September 30, 2015 and December 31, 2014 are 2.1% and 0.9% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Total non-current assets increased by PHP 8.8 million or 4.3% from PHP million as of December 31, 2014 to PHP million as of September 30, Total non-current assets as of September 30, 2015 and December 31, 2014 are 10.8% and 4.8% of the total assets as of September 30, 2015 and December 31, 2014, respectively. Total liabilities decreased by PHP 2,322.9 million or -76.0% from PHP 3,057.6 million as of December 31, 2014 to PHP million as of September 30, Total liabilities as of September 30, 2015 and December 31, 2014 are 36.4% and 71.0% of the total liabilities and stockholders equity as of September 30, 2015 and December 31, 2014, respectively. Total current liabilities decreased by PHP 2,323.0 million or -76.1% from PHP 3,053.6 million as of December 31, 2014 to PHP million as of September 30, Current liabilities consist of financial liabilities, beneficiaries and other payables, advances from stockholders, income tax payable and loans payable. Total current liabilities as of September 30, 2015 and December 31, 2014 are 36.2% and 70.9% of the total liabilities and stockholder s equity as of September 30, 2015 and December 31, 2014, respectively. The Company recognized no financial liability at fair value through profit or loss for the present period from PHP 1,231.4 as of December 31, Beneficiaries and other payables decreased by PHP million or -66.0% from PHP million as of December 31, 2014 to PHP million as of September 30, 2015 significantly on the account of remittance payable to beneficiaries, lower by PHP million from PHP million as of December 31, 2014 to PHP 22.7 million as of September 30, 2015 due to year-end long holidays in December Other payables consist of advances from fulfillment agents, advances from trading agents, advances from related parties, accrued expenses, mandatory contributions payable to government agencies, payables to suppliers and contractors among others. Beneficiaries and other payables as of September 30, 2015 and December 31, 2014 are 8.6% and 11.9% of the total liabilities and stockholders equity as of September 30, 2015 and December 31, 2014, respectively. No advances from stockholders as of September 30, 2015 and December 31, Income tax payable increased by PHP 0.5 million or 8.2% from PHP 6.3 million as of December 31, 2014 to PHP 6.8 million as of September 30, Income tax payable as of September 30, 2015 and December 31, 2014 are 0.3% and 0.1% of the total liabilities and stockholders equity as of September 30, 2015 and December 31, 2014, respectively. Interest-bearing loans payable decreased by PHP million or -57.9% from PHP 1,305.0 million as of December 31, 2014 to PHP million as of September 30, Interestbearing loans consist of unsecured, short-term peso-denominated loans from various local 9

18 financial institutions with interest rates ranging from 3.15% to 5.2% per annum in Year-to-date September 30, 2015 and 5.0% to 7.125% in full year Loans payable as of September 30, 2015 and December 31, 2014 are 27.3% and 30.3% of the total liabilities and stockholders equity as of September 30, 2015 and December 31, 2014, respectively. Total non-current liabilities amounting to PHP 4.1 million as of September 30, 2015 is higher by PHP 0.1 million or 2.1% from PHP 4.0 million as of December 31, Non-current liabilities consist of deferred tax liabilities and retirement benefit obligation. Total non-current liabilities as of September 30, 2015 and December 31, 2014 are 0.2% and 0.1% of the total liabilities and stockholders equity as of September 30, 2015 and December 31, 2014, respectively. Deferred tax liabilities slightly increased by PHP 0.1 million or 2.1% from PHP 4.0 million as of December 31, 2014 to PHP 4.1 million as of September 30, The Company recognized no retirement liability as of December 31, 2014 and September 30, The Company s stockholders equity as of September 30, 2015 stood at PHP 1,282.3 million, higher by PHP 31.1 million or 2.5% against the year-end 2014 level of PHP 1,251.2 million mainly due to the increase in retained earnings by PHP 5.4 million and increase in cumulative translation adjustment by PHP 26.3 million, offset partly by the increase in treasury stock due to additional buy-back of 338,000 shares at PHP 0.56 million from the stock market. Increase in retained earnings represents the net income for the current period at PHP 25.3 million, offset partly by the PHP million cash dividend declared by the Company in favor of its stockholders-of-record as of August 14, 2015 and paid on September 11, 2015, computed at PHP per share of the 612,775,122 shares outstanding as of August 14, Total stockholders equity as of September 30, 2015 and December 31, 2014 are 63.6% and 29.0% of the total liabilities and stockholders equity as of September 30, 2015 and December 31, 2014, respectively. Reports under SEC Form 17-C (Current Report) that were filed during the Year-to-date September 30, 2015 covered by this report: Date January 26, 2015 Report Press Release: Pag-IBIG Fund and I-Remit, Inc. s Memorandum of Understanding and Cooperation Signing POEA Blas Ople Building, Patricia Sto. Tomas Hall, January 23, 2015 The Pag-IBIG Loyalty Card is a non-expiring privilege pass to exclusive discounts/promos in Philippine restaurants, clinics, drugstores, schools and other establishments. For only PHP100 membership fee, Pag-IBIG members can enjoy benefits such as 5% discount at Canon retail stores, 20% discount on diagnostic exams at Healthway Medical clinics, up to 60% on selected Pfizer medicines, 5% discount on all generic medicines at The Generics Pharmacy and many more. With the Memorandum of Understanding and Cooperation between 10

19 Pag-IBIG and I-Remit, members can now avail up to 25% discount on their remittance service fee at I-Remit. I-Remit is the largest non-bank Filipino-owned remittance company with the vision to be the ultimate choice remittance service provider globally. It is also the first publicly listed remittance company through its successful initial public offering in the Philippine Stock Exchange. I-Remit currently maintains its presence in 26 countries and territories throughout the world through its network of subsidiaries, joint ventures, strategic partnerships, and tie-ups for a total of over 1,400 remittance centers globally. July 17, 2015 Press Release: I-Remit will launch its PICK UP ANYWHERE PAYMENT FACILITY on August 1, 2015 Amidst a more challenging business environment, I-Remit is now evaluating various innovation alternatives that will make use of the latest available technologies to be able to deliver its services to overseas Filipinos and migrant workers of other nationalities. A part of this effort are the investments in information technology hardware and software needed for upgrading the IT infrastructure of the Company to ensure that it will be able to continue operating efficiently in providing its products and services to customers. One of the innovation initiatives that I-Remit completed and will implement is the improvement of the Notify-to-Pay or cash pick-up services that will allow the beneficiaries of remittance transactions in the Philippines to claim the proceeds from any of the branches of I- Remit s major payout partners. The years ahead will prove to be very challenging considering the many changes in the financial and banking systems of many countries, including that of the Philippines, because of liberalization and the introduction and adoption of new technologies. I-Remit is ready to meet these challenges through prudent and sound governance practices, its risk management and compliance programs, investments in technology and people development, and the innovative spirit of its organization to make remittance and, other financial and payment services available to Filipinos and citizens of other countries all over the world. I-Remit is the largest non-bank Filipino-owned remittance company with the vision to be the ultimate choice remittance service provider globally. It is also the first publicly listed remittance company through its successful initial public offering in the Philippine Stock Exchange. I-Remit currently maintains its presence in 26 countries and territories throughout the world through its network of more than 1,400 remittance centers globally consisting of subsidiaries, joint ventures, strategic partnerships and tie-ups. The Philippines remained one of the largest recipients of foreign remittances in 2014, according to a World Bank report. India remained in the top spot last year, attracting an estimated USD 70 billion in foreign remittances, followed by China with USD 64 billion, the 11

20 Philippines with USD 28 billion, Mexico with USD 25 billion, and Nigeria with USD 21 billion. Global remittance receipts increased 4.7% to USD 583 billion in 2014 from 2013, the World Bank said. The figure is expected to hit USD 586 billion this year and to USD 636 billion by Personal remittances from overseas Filipino workers (OFWs) amounted to USD 2.3 billion in July 2015, higher by 0.5% compared to the same period a year ago. On a cumulative basis, personal remittances reached USD 15.7 billion in the seven-month period, registering a yearon-year growth of 4.6%. Personal remittances from land-based workers with work contracts of one year or more grew by 5.4% while those from sea-based and land-based workers with work contracts of less than one year rose by 2.9%. The 0.5% growth in personal remittances in July 2015, however, was lower than the previous year's 7.3% growth. The steady deployment of overseas Filipino workers remains a key driver in the sustained inflows of remittances. Preliminary reports from the Philippine Overseas Employment Administration (POEA) indicated that total job orders reached 526,345, of which 38.7% were processed, intended mainly for service, production, and professional, technical and related workers in Saudi Arabia, Kuwait, Qatar, Taiwan, and the United Arab Emirates. Overseas employment agencies also expect abundant job orders in four other categories: general workers (e.g. drivers, domestic helpers, masons), other engineers (e.g. maintenance engineers, instrument technicians), food and beverage workers (e.g. chefs, baristas, waiters), and maintenance workers (e.g. maintenance technicians, mechanics). Anticipating the full integration of the Association of Southeast Asian Nations (ASEAN), the Department of Labor and Employment (DOLE) has set up a special committee to coordinate policies on the deployment of more Filipino workers abroad. DOLE has ordered the reestablishment of the Committee on International Trade Agreement in preparation for the ASEAN integration. It shall propose policies, programs, and projects seeking to implement commitments under the Asean Economic Community (AEC), Asean Political-Security Community (APSC), and Asean Socio-Cultural Community (ASCC) including commitments under the ASEAN Labor Ministers Work Programme where the Philippines has been designated as coordinator. The Manila Economic and Cultural Office announced that the entry of Filipino workers to Taiwan will be easier after the Philippines and Taiwan agreed to encourage more direct hiring and allow online application for jobs. Direct hiring has been allowed since 2009 but is largely ignored by OFW s dependence on job brokers who charge as much as PHP 60,000 deployment fee per worker. Taiwan will renew the special hiring program (SHP) scheduled to lapse this month. The two countries will also work to inform Taiwanese factories that they can directly hire workers. Taiwan and the Philippines also agreed to improve OFWs working conditions by giving them five-day work week instead of the current six. Another pending legislation will allow permanent residency to foreign workers which would enable Filipinos to stay longer in Taiwan. There are 117,000 Filipino workers in Taiwan. The average monthly deployment is 3,000, of which two-thirds are factory workers who get NTD 19,000 (PHP 28,500) in monthly wages. Applications for jobs in Taiwan rise 10 to 20% annually. Filipino nurses and caregivers can expect more job opportunities in Japan. Vice President Jejomar Binay was told by Japanese Ambassador to the Philippines Kazuhide Ishikawa that Japan plans to ease the process of healthcare workers to be employed in country. During a courtesy call to Binay, Ishikawa promised to do his best so that more Filipino nurses and caregivers will be absorbed by Japan. Ishikawa also promised to modify the Japanese nursing licensure examinations to raise the passing rate among Filipino candidates. The examinations, which are conducted in the Japanese language, have been seen as one of the major barriers preventing Filipino healthcare workers from being employed in the country. In February 2015, the Japanese government decided to allow nurse and caregiver trainees from 12

21 Indonesia and the Philippines to stay an additional year for further training and to give failed candidates another chance to sit for qualification exams to work in Japan under bilateral free trade agreements. The Japanese government is also planning to add a new resident status category aimed at foreign care workers to make it easier for such workers to be employed in Japan. Tighter regulations may soon make hiring foreign maids from Indonesia and the Philippines a more costly affair. The Philippine government is looking to introduce a quota on foreign maids in Singapore, which could see the supply of maids here dropping by as much as 20%. The Philippines last year surpassed China and India as Canada s top source country for new immigrants. According to the latest data from the government, approximately 30,000 Filipinos became permanent residents last year, while 47,000 visitor visas were issued to Filipinos. There are currently an estimated 650,000 Canadian residents who originated from the Philippines. Employers in Canada have increasingly been importing temporary workers from the Philippines for years now, and many of those workers are able to apply for permanent residency within two years of arriving in Canada. The Department of Labor and Employment (DOLE) also reported a 20% drop in the number of household service workers (HSWs) sent abroad during the first five months of the year from 70,034 to only 55,961. There were also less hires from Singapore, from 4,853 in 2014 to only 3,798 during the period. Singapore also adopted more stringent rules in hiring domestic helpers; walk-ins are not allowed and medical clearances are strictly observed. HSWs hired in Bahrain fell from 2,029 to 1,982; Malaysia, from 4,179 to only 1,725; Cyprus, from 424 to only 322; Brunei, from 273 to only 147; and Macau, from 143 to only 75. In all, 14,073 HSWs lost chance to work abroad to earn a little bit more for their families. Labor Secretary Rosalinda Baldoz said there is no immediate repatriation of Filipino temporary foreign workers (TFWs) in Canada after their four-year stay in the country ends. Canada introduced the temporary foreign workers program in April 2011, allowing low-wage foreign workers to stay in the country for as long as four years. The four-year period ended on April 1, 2015, and the TFW will no longer be eligible to work in Canada under a temporary foreign worker permit for an additional four years. Baldoz said that some workers will be exempt from the rule that TFWs will have to leave Canada at the end of their four-year stay. Also exempted are TFWs in managerial or professional occupations, those who have applied for permanent residence and have received a CSQ (Certificat de selection du Quebec) if applying as a Quebec skilled worker; a Provincial Nominee Program (PNP) certificate, if applying as a provincial nominee; an approval in principle, if applying under the Live-in Caregiver Class; a positive selection decision, if applying under the Federal Skilled Worker Class; or a positive selection decision, if applying under the Canadian Experience Class. Also exempted are TFWs employed under an international agreement, such as the North American Free Trade Agreement (NAFTA), the Seasonal Agricultural Program, or another agreement. Also excluded are those who are exempt from the Labor Market Opinion (LMO) process, including spouses and common-law partners of international graduates participating in the Post-Graduation Work Permit Program and highly-skilled TFWs; charity or religious workers; entrepreneurs, intra-company transferees, researchers, and academics; and others for purposes of self-support, such as refugee claimants, or humanitarian reasons (destitute students, and holders of Temporary Resident Permits valid for at least six months. The local recruitment industry sees the faster deployment of Filipino workers to the Middle East after government agencies abolished the monopoly of a medical clinics association in conducting medical exams on departing workers. Health Secretary Janette Garin signed a circular that officially ends the 15-year monopoly of 19 clinics given exclusive authority by the Gulf Countries Council Accredited Medical Clinics Association (GAMCA) to undertake medical tests for the 350,000 Filipino workers who leave for the Middle East annually. 13

22 Philippine officials in the United Arab Emirates (UAE) may soon ease some conditions for hiring Filipina domestic helpers. Since April 2014, the Philippine embassy had suspended bringing and hiring domestic helpers into the UAE. Qatar has opened 150,000 job opportunities for Filipinos in preparation for its hosting of the 2022 FIFA World Cup. Aside from the initial 500 job vacancies for medical technicians and nurses at Sidra Medical And Research Center in Doha, Qatar is also in need of architects, master electricians, dentists, hotel and resort workers, mechanics, and safety officers. The Philippine Overseas Employment Administration (POEA) has already received 78,000 job orders from Qatar, the report said. Qatar said will also introduce a major labor law reform to ensure thousands of workers building venues for the 2022 World Cup are paid on time. Qatar's labor minister announced that the country's controversial "kafala" system, which critics have likened to modern-day slavery, will be abolished before the end of this year. Long condemned by human rights groups, kafala has become a major focus of criticism since Qatar was awarded the 2022 football World Cup, as the energy-rich country's labor laws come under increasing international scrutiny. Under the scheme, employers in the Gulf kingdom can prevent foreign workers from changing jobs or leaving the country. The Qatar government said it will replace the system with one based instead on employment contracts. These contracts would last a maximum of five years and the current exit permit system would be replaced with one where workers give the authorities a maximum of 72 hours' notice that they want to leave the country. The Philippine government also issued a statement that it is not keen on declaring a moratorium on the deployment of overseas OFWs to Kuwait despite reported cases of maltreatment of Filipino women. Labor Secretary Rosalinda Baldoz also announced that there is a demand for 739 professional nurses in the United Kingdom and the Republic of Ireland, citing a report by the Philippine Overseas Labor Office in London. In Ireland, hiring of Filipino nurses requires an IELTS score of 6.5. Applicants would have to undergo a nursing adaptation or supervised nursing practice upon arrival in the country before they can register with the Irish Nursing and Midwifery Board and later on work as registered nurses. A registered nurse in the UK receives an annual salary ranging from 21,478 to 27,901; while a nurse in Ireland receives a salary ranging from EUR 29,205 to EUR 35,000 a year. The German Federal Employment Agency is recruiting Filipino nurses with two years experience in geriatric care and nursing home, according to the POEA. Qualified applicants will have to undergo at least a six-month course in the German language. Hired nurses will receive a monthly salary of around PHP 100,000 and enjoy the same working conditions as German nurses. Filipinos and other foreigners born in Germany after January 1, 2000 can now retain their parents' citizenship and still opt for a German citizenship following Germany's abolition of the exclusivity rule in its Nationality Act. Covered by this are children born in Germany to parents who, upon the child's birth, were either both foreigners or one has stayed in Germany legally for eight years, according to the Department of Foreign Affairs (DFA) in a statement. According to the DFA, children born after January 1, 2000 who grew up in Germany will also benefit from the amendment. The shutting of banks in Greece due to its debt crisis has affected Filipinos in sending their remittances to their families in the Philippines. Capital controls prevented Filipinos from withdrawing more than EUR 60 from ATMs and transmitting cash. 14

23 Money services businesses and money transfer operators are losing access to banking services as big global banks are unilaterally closing their accounts. Currently, there is a global concern that banks are indiscriminately terminating the accounts of money services businesses and money transfer operators thereby eliminating them as a category of customers. Called de-risking the Financial Action Task Force (FATF) in its plenary session held on October 22, 2014 in Paris, France, discussed the issue. Generally, de-risking refers to the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid, rather than manage, risk in line with the FATF s risk-based approach. De-risking can be the result of various drivers, such as concerns about profitability, prudential requirements, anxiety after the global financial crisis, and reputational risk. Below are the comparative key performance and financial soundness indicators of the Company and its subsidiaries: Performance Indicator Return on Equity (ROE) Return on Assets (ROA) Earnings per Share (EPS) Sales Growth Gross Income Current ratio Solvency ratio Solvency ratio Solvency ratio Debt-to equity ratio Asset-to-equity ratio Interest rate coverage ratio Definition Net income* over average stockholders equity during the period Net income* over average total assets during the period Net income* over average number of outstanding shares Total transaction value in USD in present period over the previous year Revenue less total cost of services (PHP millions) Total current assets over total current liabilities Net income plus depreciation over total liabilities Total assets over total liabilities Total stockholders' equity over total liabilities Total liabilities over total stockholders equity Total assets over total stockholders equity Earnings before interest and taxes over interest expense Sept. 30, 2015 Dec. 31, 2014 (Full Year) 2.0% 0.7% 1% 0.3% PHP PHP % -5% * Net Income attributable to equity holders of the Parent Company and Minority Interest. EPS computed using Net Income attributable to equity holders of the Parent Company for the period ended September 30, 2015 and for the year ended December 31, 2014 are PHP and PHP 0.015, respectively. 15

24 Below are the comparative key performance indicators of the Company s subsidiaries: International Remittance (Canada) Ltd. Performance Indicator Return on Equity (ROE) Return on Assets (ROA) Earnings per Share (EPS) Sales Growth Gross Income Definition stockholders equity during the period total assets during the period number of outstanding shares Total transaction value in USD in present period over the previous year Revenue less total cost of services (PHP millions) Sept. 30, 2015 Dec. 31, 2014 (Full Year) -49% -31% -13% -13% (PHP 22.43) (PHP 22.72) -8% -28% Lucky Star Management Limited Performance Indicator Return on Equity (ROE) Return on Assets (ROA) Earnings per Share (EPS) Sales Growth Gross Income Definition stockholders equity during the period total assets during the period number of outstanding shares Total transaction value in USD in present period over the previous year Revenue less total cost of services (PHP millions) Sept. 30, 2015 Dec. 31, 2014 (Full Year) 93% 285% -25% -15% (PHP 15.20) (PHP 9.56) 17% -4% IRemit Global Remittance Limited Performance Indicator Return on Equity (ROE) Return on Assets (ROA) Earnings per Share (EPS) Sales Growth Gross Income Definition stockholders equity during the period total assets during the period number of outstanding shares Total transaction value in USD in present period over the previous year Revenue less total cost of services (PHP millions) Sept. 30, 2015 Dec. 31, 2014 (Full Year) 47% 296% -12% -21% (PHP 47.58) (PHP ) -6% -4%

25 I-Remit Australia Pty Ltd Performance Indicator Return on Equity (ROE) Return on Assets (ROA) Earnings per Share (EPS) Sales Growth Gross Income Definition stockholders equity during the period total assets during the period number of outstanding shares Total transaction value in USD in present period over the previous year Revenue less total cost of services (PHP millions) Sept. 30, 2015 Dec. 31, 2014 (Full Year) 0.2% 1.2% 0.1% 0.5% PHP 3, PHP 22, Worldwide Exchange Pty Ltd Performance Indicator Return on Equity (ROE) Return on Assets (ROA) Earnings per Share (EPS) Sales Growth Gross Income Definition stockholders equity during the period total assets during the period number of outstanding shares Total transaction value in USD in present period over the previous year Revenue less total cost of services (PHP millions) Sept. 30, 2015 Dec. 31, 2014 (Full Year) -187% -53% -3% -3% (PHP 18.33) (PHP 14.19) -0.1% -11% I-Remit New Zealand Limited Performance Indicator Return on Equity (ROE) Return on Assets (ROA) Earnings per Share (EPS) Sales Growth Gross Income Definition stockholders equity during the period total assets during the period number of outstanding shares Total transaction value in USD in present period over the previous year Revenue less total cost of services (PHP millions) Sept. 30, 2015 Dec. 31, 2014 (Full Year) -0.3% 25% 0.2% -16% PHP (PHP 4,011.44) -100% 7%