SECURITIES AND EXCHANGE COMMISSION

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1 5/19/2014 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 Mar 31, 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 Common Stock Number of Shares of Common Stock Outstanding and Amount of Debt Outstanding 613,136,122 shares 11. Are any or all of registrant's 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. Indicate by check mark whether the registrant: 1/3

2 5/19/2014 Quarterly Report (a) has filed all reports required to be filed by Section 17 of the SRC and SRC Rule 17 thereunder 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 responsib ility for the veracity of the facts and representations contained in all corporate disclosures, including financial reports. All data contained herein are prepared and sub mitted b y the disclosing party to the Exchange, and are disseminated solely for purposes of information. Any questions on the data contained herein should b e addressed directly to the Corporate Information Officer of the disclosing party. I-Remit, Inc. I PSE Disclosure Form Quarterly Report References: SRC Rule 17 and Sections 17.2 and 17.8 of the Revised Disclosure Rules For the period ended Currency (indicate units, if applicable) Mar 31, 2014 PHILIPPINE PESO Balance Sheet Period Ended Mar 31, 2014 Dec 31, 2013 Fiscal Year Ended (Audited) Current Assets 3,006,963,000 2,862,179,114 Total Assets 3,208,826,983 3,059,782,469 Current Liabilities 1,904,234,811 1,788,566,633 Total Liabilities 1,909,401,688 1,792,007,974 Retained Earnings/(Deficit) 304,992, ,403,647 Stockholders' Equity 1,299,425,295 1,267,774,495 Stockholders' Equity - Parent 1,299,425,295 1,267,774,495 Book Value per Share Income Statement 2/3

3 5/19/2014 Quarterly Report Income Statement Current Year-To- Date Previous Year-To- Date Current Year (3 Months) Previous Year (3 Months) Operating Revenue 217,224, ,805, ,224, ,805,490 Other Revenue 4,146,398 9,700,022 4,146,398 9,700,022 Gross Revenue 221,370, ,505, ,370, ,505,512 Operating Expense 175,751, ,807, ,751, ,807,100 Other Expense 8,091,199 3,562,045 8,091,199 3,562,045 Gross Expense 183,842, ,369, ,842, ,369,145 Net Income/(Loss) Before Tax Income Tax Expense Net Income/(Loss) After Tax Net Income Attributable to Parent Equity Holder Earnings/(Loss) Per Share (Basic) Earnings/(Loss) Per Share (Diluted) 37,528,620 2,136,367 37,528,620 2,136,367 5,939, ,707 5,939, ,707 31,588,830 1,586,660 31,588,830 1,586,660 31,588,830 1,586,660 31,588,830 1,586, Other Relevant Information - Filed on behalf by: Name Designation Harris Edsel Jacildo President and Chief Operating Officer 3/3

4 1!1E:!J!lT May 15, 2014 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 March 31, 2014'. Thank you. Very truly yours,. JACILDO hief Operating Officer I-Remit, Inc. 26/F Discovery Centre, 25 ADB Avenue, Ortigas Center, Pasig City 1605 Philippines Telephone: (632) and (632) Facsimile: (632)

5 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 EDSEL 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.

6 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) March 31, 2014 Period Ended Date (Secondary License Type and File Number)

7 SECURITIES AND EXCHANGE COMMIS ION 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 March 31, Commission Identification No. A BIR Tax Identification No Exact name of registrant as specified in its charter I-REMIT,INC. 5. -,M::--et--:r_o_M_a-::-n_i1c..ca,'-P-'H I L_IP.,...P-'-I N-=Ec...:S...,..,-...,..----:_ 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 613,136,122 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) No [ ] (b) has been subject to such filing requirements for the past 90 days Yes [./] No [ ]

8 I-REMIT, INC. AND SUBSIDIARIES Consolidated Balance Sheets Unaudited Audited Mar. 31, 2014 Dec. 31, 2013 ASSETS Current Assets Cash and cash equivalents 875,751, ,316,542 Financial assets at fair value through profit or loss 256,950, ,300,331 Accounts receivable 925,063,082 1,010,038,418 Other receivables 926,121, ,227,210 Other current assets 23,076,137 22,296,613 Total Current Assets 3,006,963,000 2,862,179,114 Noncurrent Assets Investments in associates 6,500,786 6,185,346 Property and equipment - net 27,192,698 27,057,295 Goodwill 111,441, ,441,191 Deferred tax asset 10,875,255 10,998,664 Software costs - net 707, ,428 Retirement asset 11,188,217 11,188,217 Other noncurrent assets 33,958,287 30,082,214 Total Noncurrent Assets 201,863, ,603,355 3,208,826,983 3,059,782,469 LIABILITIES AND EQUITY Current Liabilities Beneficiaries and other payables 953,660, ,614,666 Income tax payable 12,574,634 8,951,967 Interest-bearing loans 938,000, ,000,000 Total Current Liabilities 1,904,234,811 1,788,566,633 Noncurrent Liabilities Retirement liability 1,723,808 0 Deferred tax liability 3,443,069 3,441,341 Total Noncurrent Liabilities 5,166,877 3,441,341 Total Liabilities 1,909,401,688 1,792,007,974 Equity Attributable to Equity Holders of the Parent Company Capital stock 617,725, ,725,800 Capital paid-in excess of par value 391,232, ,232,478 Retained earnings 304,992, ,403,647 Cumulative translation adjustment (8,529,377) (9,401,345) Remeasurements 7,214,224 7,214,224 Treasury stock (13,210,309) (12,400,309) 1,299,425,295 1,267,774,495 Noncontrolling Interest 0 0 Total Equity 1,299,425,295 1,267,774,495 3,208,826,983 3,059,782,469 1

9 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Income Unaudited Unaudited Jan. 1 to Jan. 1 to Mar. 31, 2014 Mar. 31, 2013 REVENUE Delivery fees 145,119, ,483,467 Realized foreign exchange gains - net 71,894,235 43,076,031 Other fees 210, , ,224, ,805,490 COSTS OF SERVICES Bank charges 48,227,953 56,752,866 Delivery charges 2,085,813 2,669,295 50,313,766 59,422,161 GROSS INCOME 166,910, ,383,329 OTHER OPERATING INCOME (LOSS) Net trading gains (loss) 130,588 1,869,040 Other income 4,015,810 7,830,982 4,146,398 9,700,022 OPERATING EXPENSES Salaries, wages and employee benefits 66,034,474 63,290,691 Rental 16,821,271 14,775,937 Marketing 6,917,206 8,353,188 Professional fees 11,282,100 11,643,406 Transportation and travel 3,434,641 3,059,941 Communication, light and water 6,153,257 6,351,404 Photocopying and supplies 2,817,952 2,397,531 Depreciation and amortization 2,824,133 2,966,924 Entertainment, amusement and recreation 2,299,426 2,461,691 Other operating expenses 6,852,804 5,084, ,437, ,384,939 TOTAL OPERATING INCOME 45,619,819 5,698,412 Equity in net earnings of associates 315, ,366 Interest income 4,204,810 3,473,341 Interest expense (12,611,449) (7,889,752) INCOME BEFORE TAX FROM CONTINUING OPERATIONS 37,528,620 2,136,367 PROVISION FOR INCOME TAX 5,939, ,707 NET INCOME 31,588,830 1,586,660 Attributable to: Equity holders of the Parent Company 31,588,830 1,586,660 Noncontrolling interest ,588,830 1,586,660 Basic/Dilutive Earnings Per Share Attributable to Equity Holders of the Parent Company

10 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Comprehensive Income Unaudited Unaudited Jan. 1 to Jan. 1 to Mar. 31, 2014 Mar. 31, 2013 Net Income 31,588,830 1,586,660 Other Comprehensive Income (Loss) Translation adjustment during the period 871,968 0 Total Comprehensive Income for the Period 32,460,798 1,586,660 Total Comprehensive income attributable to: Equity holders of the Parent Company 32,460,798 1,586,660 Noncontrolling interest ,460,798 1,586,660 3

11 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Changes in Equity Unaudited Unaudited Jan. 1 to Jan. 1 to Mar. 31, 2014 Mar. 31, 2013 CAPITAL FUNDS, BEGINNING 1,267,774,495 1,237,125,608 Net Income for the Period 31,588,830 1,586,660 Translation Adjustment for the Period 871,968 0 Total Comprehensive Income for the Period 32,460,798 1,586,660 Cash Dividends 0 0 Property Dividends 0 0 Purchase of Own Stock (810,000) (7,900,740) Other Equity Adjustment 2 (1,735,008) CAPITAL FUNDS, ENDING 1,299,425,295 1,229,076,520 4

12 I-REMIT, INC. AND SUBSIDIARIES Consolidated Statements of Cash Flows Unaudited Unaudited Jan. 1 to Jan. 1 to Mar. 31, 2014 Mar. 31, 2013 CASH FLOWS FROM OPERATING ACTIVITIES Income before tax from continuing operations 37,528,620 2,136,367 Income before tax 37,528,620 2,136,367 Adjustments for: Interest expense 12,611,449 7,889,752 Unrealized market valuation (gain) loss on financial instruments at fair value through profit or loss (130,588) (1,869,040) Depreciation and amortization 2,824,133 2,966,923 Interest income (4,204,810) (3,473,341) Equity in net earnings of associates (315,440) (854,366) Unrealized foreign exchange gain - net (1,697,100) (1,839,589) Post-Employment Benefits 1,723,808 1,723,808 Loss on write-off of assets 532,317 0 Changes in Operating Assets and Liabilities: Decrease (Increase) in the amounts of: Financial Assets at FV through PL (9,519,683) (1,210,975) Accounts receivables 86,140,119 (41,261,365) Other receivables (286,522,190) (16,054,769) Other current assets (779,524) 11,387,226 Increase (Decrease) in the amounts of: Beneficiaries and other payables 163,536, ,880,444 Net cash used in operations 1,727, ,421,075 Income taxes paid (2,191,983) (167,910) Interest received 3,832,363 2,490,309 Interest paid (14,102,257) (8,501,174) Net cash provided by (used in) operating activities (10,734,447) 211,242,300 CASH FLOWS FROM INVESTING ACTIVITIES Acquisitions of: Property and equipment (2,765,842) (4,057,196) Software cost (225,000) 0 Decrease (increase) in other noncurrent assets (3,876,073) 595,269 Proceeds from disposals of property and equipment - 88,546 Net cash used in investing activities (6,866,915) (3,373,380) CASH FLOWS FROM FINANCING ACTIVITIES Payment of: Short-term loans payable (988,000,000) (925,000,000) Buy-back of shares (810,000) (7,900,740) Proceeds from short-term loans payable 938,000, ,000,000 Net cash provided by (used in) financing activities (50,810,000) (382,900,740) EFFECT OF CHANGE IN FOREIGN EXCHANGE RATE TO CASH AND CASH EQUIVALENTS 846,152 (1,250,551) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENT (67,565,210) (176,282,371) CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 943,316,542 1,062,120,047 CASH AND CASH EQUIVALENTS AT END OF YEAR 875,751, ,837,676 5

13 I-REMIT, INC. AND SUBSIDIARIES Aging of Consolidated Receivables Unaudited March 31, 2014 Total Current 2-30 Days Days Over 60 Days Agents 911,029, ,277, ,751,824 Couriers 14,033,400-14,033, Related Parties 7,047,564-7,047, Others 919,074, ,045, ,029, ,851,184,929 1,467,322, ,110,199-13,751,824 6

14 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 March 31, 2014 (unaudited) and December 31, 2013 (audited); b. Unaudited Comparative Consolidated Statements of Income for the three (3) months ended March 31, 2014 and March 31, 2013; c. Unaudited Comparative Consolidated Statements of Comprehensive Income for the three (3) months ended March 31, 2014 and March 31, 2013; d. Unaudited Comparative Consolidated Statements of Changes in Equity for the three (3) months ended March 31, 2014 and March 31, 2013; e. Unaudited Comparative Consolidated Statements of Cash Flows for the three (3) months ended March 31, 2014 and March 31, 2013; f. Unaudited Aging of Consolidated Receivables as of March 31, Item 2. Management s Discussion and Analysis of Financial Condition and Results of Operations March 31, 2014 vs. December 31, 2013 The total assets of the Company increased by PHP million or 4.9% to PHP 3,208.8 million as of March 31, 2014 against PHP 3,059.8 million as of December 31, Cash and cash equivalents decreased by PHP 67.6 million or -7.2% from PHP million as of December 31, 2013 to PHP million as of March 31, Cash and cash equivalents as of March 31, 2014 and December 31, 2013 are 27.3% and 30.8% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Financial assets at FVPL, which consist of investments in private debt securities (listed overseas) held for trading, increased by PHP 9.7 million or 3.9% from PHP million as of December 31, 2013 to PHP million as of March 31, 2014 mainly due to the increase in stock investments of Power Star Asia Group Limited. Financial assets at FVPL as of March 31, 2014 and December 31, 2013 are 8.0% and 8.1% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Accounts receivable decreased by PHP 85.0 million or -8.4% from PHP 1,010.0 million as of December 31, 2013 to PHP million as of March 31, Accounts receivable as of March 31, 2014 and December 31, 2013 are 28.8% and 33.0% of the total assets as of March 31, 2014 and December 31, 2013, respectively. 7

15 Other receivables increased by PHP million or 44.9% from PHP million as of December 31, 2013 to PHP million as of March 31, 2014 mainly due to receivables recorded on forward trade contracts. Other receivables as of March 31, 2014 and December 31, 2013 are 28.9% and 20.9% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Other current assets increased by PHP 0.8 million or 3.5% from PHP 22.3 million as of December 31, 2013 to PHP 23.1 million as of March 31, Other current assets as of March 31, 2014 and December 31, 2013 are 0.72% and 0.73% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Investments in associates increased by PHP 0.3 million or 5.1% from PHP 6.2 million as of December 31, 2013 to PHP 6.5 million as of March 31, Investments as of March 31, 2014 and March 31, 2013 are both at 0.2% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Property and equipment-net increased by PHP 0.1 million or 0.5% from PHP 27.1 million as of December 31, 2013 to PHP 27.2 million as of March 31, Property and equipment-net as of March 31, 2014 and December 31, 2013 are both at 0.9% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Goodwill stood at PHP million as of March 31, 2014, same as the level as of December 31, Deferred tax asset decreased by PHP 0.1 million or -1.1% from PHP 11.0 million as of December 31, 2013 to PHP 10.9 million as of March 31, Software costs net increased by PHP 0.06 million or 8.8% from PHP 0.65 million as of December 31, 2013 to PHP 0.71 million as of March 31, Retirement asset was at PHP 11.2 million as of March 31, 2014 and December 31, 2013, equivalent to 0.35% and 0.37% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Other noncurrent assets increased by PHP 3.9 million or 12.9% from PHP 30.1 million as of December 31, 2013 to PHP 34.0 million as of March 31, Other noncurrent assets as of March 31, 2014 and December 31, 2013 are 1.1% and 1.0% of the total assets as of March 31, 2014 and December 31, 2013, respectively. Total liabilities increased by PHP million or 6.6% from PHP 1,792.0 million as of December 31, 2013 to PHP 1,909.4 million as of March 31, Total liabilities as of March 31, 2014 and December 31, 2013 are 59.5% and 58.6% of the total liabilities and equity as of March 31, 2014 and December 31, 2013, respectively. Current liabilities increased by PHP million or 6.5% from PHP 1,788.6 million as of December 31, 2013 to PHP 1,904.2 million as of March 31, 2014 mainly due to the increase in Beneficiaries and other payables and decrease in Interest-bearing loans. Beneficiaries and other payables increased by PHP million or 20.5% from PHP million as of December 31, 2013 to PHP million as of March 31, Interest-bearing loans decreased by PHP 50.0 million or -5.1% from PHP million as of December 31, 2013 to PHP million as of March 31, Beneficiaries and other payables as of March 31, 2014 comprised mainly of payables to 8

16 beneficiaries, payables to agents, couriers and trading clients, accrued expenses, payables to related parties, withholding taxes, payable to government agencies, payables to suppliers and payables from forward trade contracts. Beneficiaries and other payables as of March 31, 2014 and December 31, 2013 are 29.7% and 25.9% of the total liabilities and equity as of March 31, 2014 and December 31, 2013, respectively. Interest-bearing loans as of March 31, 2014 and March 31, 2013 are 29.2% and 32.3% of the total liabilities and equity as of March 31, 2014 and March 31, 2013, respectively. Income tax payable increased by PHP 3.62 million or 40.5% from PHP 8.95 million as of December 31, 2013 to PHP million as of March 31, Total current liabilities as of March 31, 2014 and December 31, 2013 are 59.3% and 58.4% of the total liabilities and equity as of March 31, 2014 and December 31, 2013, respectively. Noncurrent liabilities amounting to PHP 5.2 million as of March 31, 2014 consist of Retirement liability and Deferred tax liability. From zero amount as of December 31, 2013, Retirement liability increased to PHP 1.7 million as of March 31, 2014 while Deferred tax liability stood at almost the same level of as of March 31, 2014 PHP and December 31, 2013 at PHP 3.4 million. Total noncurrent liabilities as of March 31, 2014 and December 31, 2013 are 0.16% and 0.11% of the total liabilities and equity as of March 31, 2014 and December 31, 2013, respectively. The Company s stockholders equity as of March 31, 2014 stood at PHP 1,299.4 million, higher by PHP 31.7 million or 2.5% against the year-end 2013 level of PHP 1,267.8 million mainly due to the income generated for the first quarter of 2014 at PHP 31.6 million, decrease in negative cumulative translation adjustment by PHP 0.9 million or -9.3% and additional buyback of 300,000 shares at PHP 0.8 million from the stock market. Total stockholders equity as of March 31, 2014 and December 31, 2013 are 40.5% and 41.4% of the total liabilities and equity as of March 31, 2014 and December 31, 2013, respectively. Reports under SEC Form 17-C (Current Report) that were filed during the First Quarter 2014 covered by this report: Date February 13, 2014 Report Certificates of Attendance to Corporate Governance Seminar pursuant to SEC Memorandum Circular No. 20, Series of 2013 Certificates of attendance to corporate governance training with SECaccredited training provider issued by The Institute of Corporate Directors to Mr. John Y. Tiu, Jr., Director, and Ms. Bernadette Cindy C. Tiu, Chief Financial Officer, of IRemit, Inc. in relation to the Distinguished Corporate Governance Speaker Seminar Series held on 05 February 2014 in Makati City. February 20, 2014 Incorporation of I-REMITTANCE SINGAPORE PTE. LTD. February 24, 2014 Supplement to Previous Disclosure Re: Incorporation of I- REMITTANCE SINGAPORE PTE. LTD. as a remittance company Further to our disclosure dated 20 February 2014, kindly be advised that the operation of I-REMITTANCE SINGAPORE PTE. LTD. as a remittance company is subject to the approval of and granting of a 9

17 license by the Monetary Authority of Singapore pursuant to the Money-Changing and Remittance Businesses Act (Cap. 187) of Singapore. March 21, 2014 Board Approval of Amendment of Principal Office Address At today's meeting of the Board of Directors of the Corporation, the Board approved the amendment of the Corporation's principal office address pursuant to SEC Memorandum Circular No. 6, Series of 2014 as follows: Article No. From To The principal office of the Corporation The principal office of the Corporation shall be established THIRD shall be established or located at 26th Floor or located in Discovery Centre, 25 ADB Metropolitan Manila, Philippines. Avenue, Ortigas Center, Pasig City, Metro Manila, Philippines. The amendment shall be submitted for approval of the stockholders during the Corporation's annual stockholders' meeting sometime in July The Bangko Sentral ng Pilipinas reported that for the period January to February 2014, cash remittances grew by 5.8% to USD 3.6 billion, compared to USD 3.4 billion registered in the same priod last year. Cash transfers from both land-based (USD 2.7 billion) and sea-based (USD 903 million) workers expanded by 4.3% and 10.3% year-on-year, respectively. The continued demand for skilled overseas Filipino workers contributed partly to the steady flow of remittances. Despite the deployment ban in some countries, the Philippine Overseas Employment Administration (POEA) said it was still able to send around 1.8 million overseas Filipino workers (OFW) abroad in Preliminary data from the POEA indicated that in January-February 2014, approved job orders totaled 75,064, of which 33.2% (or 24,895) were processed job orders intended for manpower demand for service, production, and professional, technical and related job categories in Saudi Arabia, the United Arab Emirates, Taiwan, Kuwait and Qatar. Reports from the Department of Labor and Employment (DOLE) showed that the Middle East, Asia and Oceania remain possible employment options for overseas Filipino workers. Many opportunities continue to open up for Filipino workers. Filipinos are poised to secure more employment opportunities in Japan as the backlog for laborers in the country is expected to result in the relaxation of hiring and entry requirements. The Japanese government is considering relaxing requirements for highly skilled foreigners to obtain permanent residency status in Japan as it expects them to help enhance the nation's international competitiveness. Japanese building contractors are also increasingly looking to foreign workers to cover labor shortages plaguing the industry in the wake of reconstruction demand after the 2011 earthquake and ahead of a likely building boom prior to the 2020 Tokyo Olympics. The Philippines currently sends nurses and caregivers to Japan after both countries forged an economic partnership agreement in This year, the Philippines would seek greater access for Filipino workers to Japan when the Japan-Philippines Economic Partnership Agreement (JPEPA) goes through general review. Japan s government aims to make it easier for firms to hire foreign workers for highly-skilled positions and as trainees to offset a declining workforce and accelerate economic growth. 10

18 Construction workers are in high demand in Singapore amid a construction boom. A Singapore-based building and construction company has already set up a training center in the Philippines to help fill the 200 construction jobs needed every month. Canada has announced it will give USD 4 million in funding to help nurses get their credential recognition faster. The funding is partly because of the looming shortage of nurses in Nova Scotia, Newfoundland and Ontario in the coming years. Thousands of new jobs in the skilled trades were created in British Columbia, Canada when the federal government gave the Vancouver Shipyards the USD 3.3 billion contract to build 10 new non-combat ships for the Canadian Coast Guard last year. This includes jobs in welding and pipe-fitting. Anticipating a possible shortage of qualified tradesmen, the Canadian Welding Bureau accredited test centers in the Philippines to screen well-trained welders. Thousands of jobs in the hospitality sector are expected to open up ahead of the 2020 World Expo in Dubai in the United Arab Emirates. The DOLE cited a report of the Office of the Middle East and African Affairs (OMEAA) of the Department of Foreign Affairs on the prospects of jobs expected to be created in the United Arab Emirates as a result of Dubai's successful bid to host the 2020 World Expo. The report said jobs will be created in the construction, real estate, hospitality, aviation, retail, and services sector in the UAE. At least one million jobs are available in Qatar as the sovereign Arab state starts its preparations for the 2022 FIFA World Cup. Qatar has allotted an equivalent of PHP 288 billion for projects like metro railways, airports, hotels and football stadiums. The World Bank ranks the Philippines together with Mexico as third in highest remittancerecipient countries in world after China and India. 11

19 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 Mar. 31, 2014 Dec. 31, 2013 (Full Year) 2.4% 4.4% 1% 2% PHP PHP % -1% * 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 March 31, 2014 and for the year ended December 31, 2013 are PHP and PHP 0.090, respectively. 12

20 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 1% -6% 0.3% -2% PHP 0.92 (PHP 5.02) 4% 12% 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 62% -162% 2% -15% PHP 1.37 (PHP 12.37) -1% 12% 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) -412% -3574% -3% -2% (PHP 30.39) (PHP 16.13) -3% -5%

21 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 0.06% 3.1% 0.02% 1.4% PHP 1, PHP 60, 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 5% -36% 0.6% -4% PHP 1.83 (PHP 15.76) -8% -9% 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 3% 10% -2% -10% (PHP ) (PHP 1,306.69) 24% 23%

22 IREMIT Remittance Consulting GmbH 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 5% 27% -6% -24% (PHP 11.76) (PHP 47.37) - -79% Power Star Asia Group 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 5% 14% 5% 14% PHP PHP K. K. I-Remit Japan 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) Mar. 31, 2014 Dec. 31, 2013 (Full Year) 5% 71% -3% -57% (PHP 9,929.88) (PHP 121,072.44) 143% 552%

23 March 31, 2014 vs. March 31, 2013 I-Remit realized a consolidated net income of PHP 31.6 million in First Quarter 2014, higher by PHP 30.0 million or % than the consolidated net income of PHP 1.6 million in First Quarter The consolidated net income in First Quarter 2014 and First Quarter 2013 are 14.5% and 0.9% of the First Quarter 2014 and First Quarter 2013 revenue, respectively. Revenue increased by PHP 41.4 million or 23.6% to PHP million in First Quarter 2014 from PHP million in First Quarter 2013 mainly due to Realized foreign exchange gainsnet recognized in First Quarter 2014 which increased by PHP 28.8 million or 66.9% from PHP 43.1 as of March 31, 2013 to PHP 71.9 million as of March 31, 2014, and higher Delivery fees by PHP 12.6 million or 9.5% in First Quarter 2014 from PHP million as of March 31, 2013 to PHP million as March 31, Foreign exchange margin increased by 0.07 from 0.06 in First Quarter 2013 to 0.12 in First Quarter Both transaction count and USD remittance volume increased in First Quarter 2014 by 3.0% and 9.5%, respectively, against the transaction count and USD remittance volume in First Quarter Other fees decreased by PHP 0.04 million or -14.3% from PHP 0.25 million in First Quarter 2013 to PHP 0.21 million in First Quarter 2014 due to lesser volume of amendments and retrievals of remittance transactions. Costs of services decreased by PHP 9.1 million or -15.3% from PHP 59.4 million in First Quarter 2013 to PHP 50.3 million in First Quarter 2014 mainly due to higher bank charges recorded in First Quarter 2013 by PHP 8.5 million from PHP 56.8 million in First Quarter 2013 to PHP 48.2 million in First Quarter Delivery charges also decreased by PHP 0.6 million or -21.9% from PHP 2.7 million in First Quarter 2013 to PHP 2.1 million in First Quarter The decrease in bank charges was the result of recorded bank charges in First Quarter 2013 for transactions covered in Fourth Quarter 2012 due to delayed bank billings. Declining preference for door-to-door service mode by remitters explains the decrease in delivery charges in First Quarter Total cost of services in First Quarter 2014 and First Quarter 2013 are 23.2% and 33.8% of the First Quarter 2014 and First Quarter 2013 revenue, respectively. Accordingly, the Company s gross income increased by PHP 50.5 million or 43.4% from PHP million in First Quarter 2013 to PHP million in First Quarter The gross income in First Quarter 2014 and First Quarter 2013 are 76.8% and 66.2% of the First Quarter 2014 and First Quarter 2013 revenue, respectively. Transaction count increased by 3.0% from 772,213 in First Quarter 2013 to 798,229 in First Quarter USD remittance volume increased by 9.5% from USD million in First Quarter 2013 to USD million in First Quarter Of the total transaction count in First Quarter 2014, the percentage contributions per region are as follows: Asia-Pacific, 42%; Middle East, 31%; North America, 13%; and Europe, 11%. In terms of USD remittance volume, the regional contributions are as follows: Asia-Pacific, 33%; Middle East, 22%; North America, 12%; and Europe, 9%. Other operating income decreased by PHP 5.6 million or -57.2% from PHP 9.7 million in First Quarter 2013 to PHP 4.1 million in First Quarter Net trading gains decreased by PHP 1.7 million or -93.0% from PHP 1.9 million in First Quarter 2013 to PHP 0.1 million in First Quarter Power Star Asia Group Limited recognized higher gain realized from the sale of its security bonds in the First Quarter 2013 compared with the gain realized on sold debt securities in First Quarter Other operating income in First Quarter 2014 and First Quarter 2013 are 1.9% and 5.5% of the First Quarter 2014 and First Quarter 2013 revenue, respectively. 16

24 Total operating expenses was higher by PHP 5.0 million or 4.2% from PHP million in First Quarter 2013 to PHP million in First Quarter 2014 mainly on account of higher salaries, wages and employee benefits, rental expenses and other operating expenses. Salaries, wages and employee benefits in First Quarter 2014 were higher by PHP 2.7 million or 4.3% from PHP 63.3 million in First Quarter 2013 to PHP 66.0 million in First Quarter 2014 due to annual salary increase that took effect in April Increase in rental expense by PHP 2.0 million or 13.8% from PHP 14.8 million in First Quarter 2013 to PHP 16.8 million in First Quarter 2014 was the result of annual escalation in rent as agreed with the lessors of the Parent Company and its foreign offices. Other operating expenses increased by PHP 1.8 million or 34.8% from PHP 5.1 million in First Quarter 2013 to PHP 6.9 million in First Quarter 2014 due to higher taxes and licenses paid by the Parent Company. Total operating expenses in First Quarter 2014 and First Quarter 2013 are 57.7% and 68.5% of the First Quarter 2014 and First Quarter 2013 revenue, respectively. Equity in net earnings of associates decreased by PHP 0.54 million or -63.1% from PHP 0.85 million in First Quarter 2013 to PHP 0.31 million in First Quarter Decrease was due to the derecognition by the Parent Company of its investment on IRemit Singapore Pte Ltd and higher share on income from Hwa Kung Hong & Co., Ltd. from PHP 0.2 million in First Quarter 2013 to PHP 0.3 million in First Quarter Interest income was higher by PHP 0.7 million or 21.1% from PHP 3.5 million million in First Quarter 2013 to PHP 4.2 million in First Quarter Interest expense was higher by PHP 4.7 million or 59.8% from PHP 7.9 million in First Quarter 2013 to PHP 12.6 million in First Quarter 2014 mainly due to higher loan renewals and availment in First Quarter The total assets of the Company increased by PHP million or 25.2% from PHP 2,563.3 million as of March 31, 2013 to PHP 3,208.8 million as of March 31, Cash and cash equivalents decreased by PHP 10.0 million or -1.1% from PHP million as of March 31, 2013 to PHP million as of March 31, Cash and cash equivalents as of March 31, 2014 and March 31, 2013 are 27.3% and 34.6% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Financial assets at FVPL, which consist of investments in private debt securities (listed overseas) held for trading, stood at PHP million as of March 31, 2014, an increase of PHP 43.7 million or 20.5% against PHP million as of March 31, 2013 mainly due to the increase in bonds and stock investments of Power Star Asia Group Limited. Financial assets at FVPL as of March 31, 2014 and March 31, 2013 are 8.0% and 8.3% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Accounts receivable decreased by PHP million or -23.1% from PHP 1,203.1 million as of March 31, 2013 to PHP million as of March 31, 2014 mainly due to increased volume of transactions. Accounts receivable as of March 31, 2014 and March 31, 2013 are 28.8% and 46.9% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Other receivables increased by PHP million or % from PHP 53.5 million as of March 31, 2013 to PHP million as of March 31, 2014 mainly due to receivables recorded on forward trade contracts. Other receivables as of March 31, 2014 and March 31, 2013 are 28.9% and 2.1% of the total assets as of March 31, 2014 and March 31, 2013, respectively. 17

25 Other current assets increased by PHP 10.6 million or 84.4% from PHP 12.5 million as of March 31, 2013 to PHP 23.1 million as of March 31, 2014 due to reclassification of account pertaining to IPO tax refund from BIR at PHP 13.2 million, partly offset by the decrease in prepaid expenses by PHP 2.5 million. Other current assets as of March 31, 2014 and March 31, 2013 are 0.7% and 0.5% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Investments in associates decreased by PHP 13.8 million or -68.1% from PHP 20.3 million as of March 31, 2013 to PHP 6.5 million as of March 31, The Parent Company derecognized its investment of PHP 15.2 million on IRemit Singapore Pte Ltd as of March 31, 2013 in December 2013 and increased its investment on Hwa Kung Hong & Co., Ltd. (in Taiwan) by PHP 1.4 million as of March 31, Investments as of March 31, 2014 and March 31, 2013 are 0.2% and 0.8% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Property and equipment-net increased by PHP 3.0 million or 12.2% from PHP 24.2 million as of March 31, 2013 to PHP 27.2 million as of March 31, Property and equipment as of March 31, 2014 and March 31, 2013 are 0.9% and 1.0% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Goodwill was the same at PHP million as of March 31, 2014 and March 31, Deferred tax asset increased by PHP 4.4 million or 67.1% from PHP 6.5 million as of March 31, 2013 to PHP 10.9 million as of March 31, Software costs net decreased by PHP 0.5 million or -42.7% from PHP 1.2 million as of March 31, 2013 to PHP 0.7 million as of March 31, Retirement asset increased by PHP 10.7 million or % from PHP 0.5 million as of March 31, 2013 to PHP 11.2 million as of March 31, The increase on retirement asset is the result of the re-measurement of the retirement plan of the Parent Company following the requirement and full implementation of the revised PAS 19 as of reporting period December 31, Retirement asset as of March 31, 2014 and March 31, 2013 is 0.35% and 0.02% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Other noncurrent assets increased by PHP 3.1 million or 10.2% from PHP 30.8 million as of March 31, 2013 to PHP million as of March 31, Other noncurrent assets as of March 31, 2014 and March 31, 2013 are 1.1% and 1.2% of the total assets as of March 31, 2014 and March 31, 2013, respectively. Total liabilities increased by PHP million or 43.1% from PHP 1,334.2 million as of March 31, 2013 to PHP 1,909.4 million as of March 31, Total liabilities as of March 31, 2014 and March 31, 2013 are 59.5% and 52.1% of the total liabilities and equity as of March 31, 2014 and March 31, 2013, respectively. Current liabilities increased by PHP million or 42.9% from PHP 1,333.0 million as of March 31, 2013 to PHP 1,904.2 million as of March 31, 2014 significantly due to the increase in Beneficiaries and other payables and increase in Interest bearing loans. Beneficiaries and other payables increased by PHP million or 22.1% from PHP million as of March 31, 2013 to PHP million as of March 31, Interest bearing loans increased by PHP million or 70.5% from PHP as of March 31, 2013 to PHP million as of March 31,

26 Beneficiaries and other payables as of March 31, 2014 comprised mainly of payables to beneficiaries, payables to agents, couriers and trading clients, accrued expenses, payable to related parties, withholding taxes, payable to government agencies, payables to suppliers and payables from forward trade contracts. Interest-bearing loans consist of unsecured, short-term peso-denominated loans from various local financial institutions with interest rates ranging from 5% to 6.75% per annum in First Quarter 2014 and 5.0% to 7.125% in First Quarter Beneficiaries and other payables as of March 31, 2014 and March 31, 2013 are 29.7% and 30.5% of the total liabilities and equity as of March 31, 2014 and March 31, 2013, respectively. Interest-bearing loans as of March 31, 2014 and March 31, 2013 are 29.2% and 21.5% of the total liabilities and equity as of March 31, 2014 and March 31, 2013, respectively. Income tax payable significantly increased by PHP 10.8 million or 598.1% from PHP 1.8 million as of March 31, 2013 to PHP 12.6 million as of March 31, 2014 mainly due to higher revenue recognized in First Quarter Income tax payable as of March 31, 2014 and March 31, 2013 is 0.4% and 0.1% of the total liabilities and equity as of March 31, 2014 and March 31, 2013, respectively. Total current liabilities as of March 31, 2014 and March 31, 2013 are 59.3% and 52.0% of the total liabilities and equity as of March 31, 2014 and March 31, 2013, respectively. Total noncurrent liabilities increased by PHP 4.0 million or 326.0% from PHP 1.2 million as of March 31, 2013 to PHP 5.2 million as of March 31, Increase in Noncurrent liabilities consists of Retirement liability at PHP 1.7 million as of March 31, 2014 and increase in Deferred tax liability by PHP 2.2 million or 183.9% from PHP 1.2 million as of March 31, 2013 to PHP 3.4 million as of March 31, Total noncurrent liabilities as of March 31, 2014 and March 31, 2013 are 0.16% and 0.05% of the total liabilities and equity as of March 31, 2014 and September 20, 2012 respectively. The Company s stockholders equity as of March 31, 2014 stood at PHP 1,299.4 million, higher by PHP 70.3 million or 5.7% against the March 31, 2013 level of PHP 1,229.1 million mainly due to higher net income, additional buy-back of shares from the stock market and lower negative cumulative translation adjustment. Total stockholders equity as of March 31, 2014 and March 31, 2013 are 40.5% and 47.9% of the total liabilities and equity as of March 31, 2014 and March 31, 2013, respectively. Reports under SEC Form 17-C (Current Report) that were filed during the First Quarter 2014 covered by this report: Date February 13, 2014 Report Certificates of Attendance to Corporate Governance Seminar pursuant to SEC Memorandum Circular No. 20, Series of 2013 Certificates of attendance to corporate governance training with SECaccredited training provider issued by The Institute of Corporate Directors to Mr. John Y. Tiu, Jr., Director, and Ms. Bernadette Cindy C. Tiu, Chief Financial Officer, of IRemit, Inc. in relation to the 19

27 Distinguished Corporate Governance Speaker Seminar Series held on 05 February 2014 in Makati City. February 20, 2014 Incorporation of I-REMITTANCE SINGAPORE PTE. LTD. February 24, 2014 Supplement to Previous Disclosure Re: Incorporation of I- REMITTANCE SINGAPORE PTE. LTD. as a remittance company Further to our disclosure dated 20 February 2014, kindly be advised that the operation of I-REMITTANCE SINGAPORE PTE. LTD. as a remittance company is subject to the approval of and granting of a license by the Monetary Authority of Singapore pursuant to the Money-Changing and Remittance Businesses Act (Cap. 187) of Singapore. March 21, 2014 Board Approval of Amendment of Principal Office Address At today's meeting of the Board of Directors of the Corporation, the Board approved the amendment of the Corporation's principal office address pursuant to SEC Memorandum Circular No. 6, Series of 2014 as follows: Article No. From To The principal office of the Corporation The principal office of the Corporation shall be established THIRD shall be established or located at 26th Floor or located in Discovery Centre, 25 ADB Metropolitan Manila, Philippines. Avenue, Ortigas Center, Pasig City, Metro Manila, Philippines. The amendment shall be submitted for approval of the stockholders during the Corporation's annual stockholders' meeting sometime in July The Bangko Sentral ng Pilipinas reported that for the period January to February 2014, cash remittances grew by 5.8% to USD 3.6 billion, compared to USD 3.4 billion registered in the same priod last year. Cash transfers from both land-based (USD 2.7 billion) and sea-based (USD 903 million) workers expanded by 4.3% and 10.3% year-on-year, respectively. The continued demand for skilled overseas Filipino workers contributed partly to the steady flow of remittances. Despite the deployment ban in some countries, the Philippine Overseas Employment Administration (POEA) said it was still able to send around 1.8 million overseas Filipino workers (OFW) abroad in Preliminary data from the POEA indicated that in January-February 2014, approved job orders totaled 75,064, of which 33.2% (or 24,895) were processed job orders intended for manpower demand for service, production, and professional, technical and related job categories in Saudi Arabia, the United Arab Emirates, Taiwan, Kuwait and Qatar. Reports from the Department of Labor and Employment (DOLE) showed that the Middle East, Asia and Oceania remain possible employment options for overseas Filipino workers. Many opportunities continue to open up for Filipino workers. Filipinos are poised to secure more employment opportunities in Japan as the backlog for laborers in the country is expected to result in the relaxation of hiring and entry requirements. 20