A STRATEGIC FRAMEWORK FOR DEVELOPMENT

PURSUING RELEVANCE:

A N N U A L R E P O R T

2 0 1 4

OUR COVER

The theme for the 2014 Annual Report is Pursuing Relevance: A Strategic Framework for Development. With an updated strategy, the company is able to strengthen its core business of sovereign guarantees in strategic industries while at the same time becoming a strong partner of SMEs through capability building and social inputs to growth

and development.

The cover uses a banig or woven mat motif that symbolizes the interconnectivity of the Philippine socio-economic landscape. The single blue strand represents PhilEXIM committed role as a sovereign credit intermediator for the export and priority sector industries. The banig motif also identifies the company as a key player in the economic

pump-priming of the Philippines.

OUR ASPIRATIONBy 2018, PhilEXIM shall be the preferred credit guarantee institution facilitating international trade and investments responsive to the developmental needs of the country.

CORE VALUES

• Integrity

• Professionalism

• GoodGovernance

• Innovation

• Teamwork

OUR COMMITMENTWe are a sovereign guarantor extending primarilyguarantee, export insurance and related services to business entities in order to develop the Nation’s export industry and facilitate investment in strategic sectors of the economy.

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A N N U A L R E P O R T 2 0 1 4

THREE-YEAR FINANCIAL HIGHLIGHTS IN MILLIONS (2012-2014)

TOTAL REVENUES

551580

486

2012

2013

2014

TOTAL ASSETS

3,1713,197

2,716

2012

2013

2014

TOTAL EXPENSES

334343

414

2012

2013

2014

TOTAL LIABILITIES

2,572

2,545

2,052

2012

2013

2014

COMPREHENSIVE INCOME

241

134

38

2012

2013

2014

NET WORTH

599

652 664

2012

2013

2014

1 Financial Highlights 2 Message of the President of the Philippines 3 Message of the Chairman of the Board 4 Report of the President and CEO8 Policy Directions Pursuant to the StrategicFramework2014-2017

10 ReviewofOperations14 Developmental Role of PhilEXIM 15 PhilEXIM37-YearMilestones20 CorporateGovernance&Social Responsibility22 GoverningBoard26 Senior Management 28 WorldwideAlliances&Partnerships

CONTENTS

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MESSAGE OF

HIS EXCELLENCYTheFilipinopeoplehaveworkedhardtorevivetheeconomyandinstitutecriticalreforms.Nolongerthe“SickManofAsia,”thePhilippineshasbecomemorecompetitiveandhasearnedaplaceamongtheworld’sbest-performingeconomies.Thiscan,inlargepart,beattributedtothesuccessofourmostproductivesectors—likeindustry,servicesandmanufacturing,whichhaveallshownrobust development in this period of revitalization.

Throughtheestablishmentandexpansionofbusiness,commercebecomesenergeticandcompetitionisstrengthened.Asopportunitiesarecreated,theriskofdoingbusinessinthecountrydeclines.Withlowerinterestratesandmoreflexibledebtpaymentschedules,moreinvestorsarefindingitdesirabletocastastakeinthePhilippines.AllthesearedirectresultsofreformswemadealongtheDaangMatuwid.

Yourmandatetocontinuallyplayaproactiveroleinthepriorityareasofthegovernmentremainsamongthetop-rankedoftheadministration’svaluechain.ItisourhopethatPhilEXIMwillprogressivelybeastepaheadinitsendeavorsaswefurtherintensifyourpursuitofinclusivegrowth.

Ithankyouforyourpartnership,andcongratulationsonajobwelldone.

BENIGNO SIMEON C. AQUINO IIIPresident of the Philippines

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MESSAGE OF THE CHAIRMAN OF

THE BOARDIn2014,thePhilippineeconomygrewby6.1%onthebackofthegovernment’scontinuedfocusonitsgoodgovernance and inclusivity agenda.

TheAgencyhadperformedwellinlinewithitsmandateto stimulate economic activities in the priority areas of development.

Addressing Adversities

TheAgency’sfundamentalsremainstrongandalignedtowardsthepursuitofsocio-economicdevelopment.PhilEXIM redefined its business direction guided by a strategicframeworkunderthenewleadershipwhichcame in during the later part of 2014: namely to stabilized thebusinesswithsufficientcapacity;createaresponsiveandsustainableorganization;andachievesocio-economicrelevance.

PhilEXIM ended the year on a positive financial note, generating total revenues of P485 Million and net income beforetax(NIBIT)ofP71.07Million.Meanwhile,earningsbefore interest, taxes, depreciation, and amortization (EBITDA)registeredat194Million.

Cash operating expenses registed savings of P38.83 Million or12.81%,coveringpersonalservicesmaintenanceandotheroperatingexpensesaswellasinterestandotherfinancial charges.

Contributions to Development

PhilEXIM continues to generate employment as part ofthegovernment’smandate.Byourcount,wehavesupported23,452jobs—anumberweareproudtokeepgrowingwitheachyear.

Iamgladtoknowthattheindustrysectorwhichrepresented79%oftheAgency’sportfolio,carriesanimmenseweightinPhilEXIM’sprioritiesfortheyear.Intermsofmandate,theExportindustryrepresented48%ofthetotalportfolio.Thistrendisanencouragingsignaswemoveaheadtobeoneofthemajorplayersinagrowinginternational business community particularly in the ASEANregion.

PhilEXIMlikewisecontinuestoparticipateintherehabilitation of calamity areas by employing its guaranteefranchisetoencouragewiderprivatesectorinvolvement.ItiswiththisphilosophyofdoingbusinesswithaconsciencethatIhopetheAgencywillcontinuetoharmonizewith,tobringaboutanallinclusivesocio-economic development to the public.

Ialwaysbelievethatgoodgovernanceisthekeytogreateconomics. Let PhilEXIM emerge a shining example of that adage.

CESAR V. PURISIMAChairman of the Board

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REPORT OF THEPRESIDENT & CEO

IthasbeenafulfillingexperiencetohaveworkedinPhilEXIMfor

thelastsixyearswhereIsoughttounravelourcapabilitytowork

together and achieve significant goals. I am confident that the

vital ingredients to sustainability are evident in our institution

althoughthereisaconstantneedtore-inventthewayofdoing

things.Iguesswehaveopenedthekeyonhowtoevolveinto

aunitedcoreofprofessionalsthatwillensuresuccessofthe

Agencyinitscontinuingquesttodeliveronitsmandate.

IwarmlyexpressmygratitudeforthesupportthattheBoard,

Managementandstaffhadgivenmethroughoutmywatch.

Toaddresstheweakfinancialpositionofthecompanyonthe

onehandandimproveoverallperformanceontheother,we

formulateda3-pointAgendaandStrategicIntenttoincludethe

following:1)RestoreProfitability;2)BenchmarktoBestPractices;

and3)StrengthentheFranchise.Inordertocorrecttheweak

capitalpositionandcomplywiththerequirementsofBSP

standards,acapitalrestructuringplanwasintroducedin2008

thatincludedthefollowingwork-outmeasures:a)3-yearphased

infusionofequityfromthenationalgovernmenttofullypayits

subscription;b)3-yeartransitionto5%capitaladequacyratio

(CAR)andc)5-yearstaggeringofun-bookedvaluationreservesof

P1.2Billion.The3-pointagenda,exceptforaslightre-tweaking

in 2013 to accommodate the shift in portfolio concentration to

industrieswithhighestimpactonemploymentandtoSMEs,

servedtodayastheguidingroadmapoftheAgencyinpursuitof

its mandate.

Theorganizationalcapabilitytooperateprofitablyisfurther

manifestedbytheyearlygrowthrateofrevenueandnetprofit

overthesuccessive6-yearperiod.Themajorreformsinitiated

intheoperatingenvironmentoftheAgencyhadreapedthe

benefitsofrevenuesevenasitscreditexposuresbywayof

guaranteeanddirectlendingsupportedawiderdistribution

to businesses and enterprises in the priority sectors of the

government.

Duringourstewardshipwealsorealizedsignificantdevelopment

contributions to national development that resulted into

$2.87Billionoftotalexportcurrencyreceiptsand,usingtheNEDA

formula,atotalemploymentgenerationof563,358jobs.

PhilEXIM is a value creator and good corporate citizen of

governance.OverthelastsixyearstheAgencyhascontributed

totheobjectivesofeconomicdevelopmentbysupporting

thepriorityprojectsthatareincludedinthenationalagenda

for progress. In these inclusive years, the total amount of

accumulated net income before tax of P1.216 Billion has

proportionatelypreservedthestakeofnationalgovernmentin

the company. In six years, PhilEXIM has paid and declared a total

of P383 Billion in cash dividends to its shareholder –more than

at any time in its history and paid income taxes aggregating

P204 Million consistently and accurately. It is to the credit of

allemployeesthattheAgencyearnedanunprecedentedtotal

grossincomeofP3.4Billionfrom2008to2013andP289.3Million

during the first semester of 2014.

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Automationisemployedharnessingtechnologyforback-end

system in loans, cash and disbursements, fixed assets and

equipmentandgeneralledgeraccounting.Accountingpolicies

andprocesseswerealignedtoBIS,IAS,andPASstandards.The

implementationoftheOrganizationalEmpowermentPlan

wasmadetodeepenthesupervisorybench,createamiddle

management layer and bring about a succession mechanism.

Strategically,were-orientedthebusinessplanningcycleand

introduced“top-to-bottom-up”planningprocessandstrategy

formulation and included legal research, asset recovery and

salessupportinthecorporatestrategyfunction.Theguarantee

productwasre-definedasa“credit-enhancer”withfocusonzero-

riskcapitalweighting.Riskmanagementwaspeggedtoindustry

standardswiththefullimplementationoftheRisk-BasedBusiness

Approach(RIBBA)audit.TheCorporateComplianceProgramand

theCodeofCorporateGovernancewereinstitutionalizedand

equally,thedisasterrecoveryandbusinesscontinuityprograms

wereoperationallyinstalled.

CSR activities in health, relief and educational endeavors

wereinstitutionalizedtounderscorethevalueofemployee

engagement.

Major Continuing Concerns

Themostsignificantoutstandingissuethatconfrontsthe

companyisitslimitedcapitaladequacy.Theheadroomprovided

bythecurrentleveloftangiblecapitalatP650Millionistoolow

toabsorbadditionalbusinesswithoutincurringseverepressure

andriskonitself.Thisisalsotherecurringobservationofthe

CommissiononAuditandtheBangkoSentralngPilipinas.The

requiredminimumCARof5%willonlybeattainedthrough

infusionofsufficientcapitalwhichisfundamentaltocreatingnew

investments to generate sustainable revenue. Serious attention

mustbegiventowardsattainingthissingleobjective.

Notwithstandingtheabove,theoverallperformanceofthe

company through the last six years validates the sustainability of

PhilEXIM’sprofitableoperations.Exceptfortheequityinfusionof

P570Millionitreceivedin2011,theAgencyhasself-fundedits

ownrequirementswithoutanycashsubsidyfromgovernment

andgeneratingnetprofityear-inandout.Thefranchiseofthe

companyisuniquewhichcanprovidethescalethatwillenhance

macroandmicrogrowthfordevelopment-impactingenterprises.

PhilEXIMcomplements–notduplicate,assometimeswrongly

perceived–theroleofbanks.TheAgencyisacatalystbetween

privateenterpriseandgovernmentandanenablerbetween

private business and private funder. It is to the advantage of

government-andtotheeconomyasawholetostrengthen

PhilEXIMbyprovidingadequatesupportincapitalresources,

competent management and good governance.

ItakethisopportunitytosincerelythanktheBoardofDirectors

forextendingitsunqualifiedsupporttoManagementduring

mywatch.ItisaprivilegeandhonortohaveservedPhilEXIMin

professionalpartnershipwithitsstakeholders.

FRANCISCO S. MAGSAJO, JR.President and CEO*

* resigned on June 15, 2014

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REPORT OF THEPRESIDENT & CEO

ThepastyearhasbeenanimportantoneforPhilEXIM.Myduty

tocarryonasPresidentandCEOwasadauntingyetworthwhile

task.TheCharterofPhilEXIMisapowerfultoolfordevelopment

forwhichIshalldevotemyleadershiptoitsoptimalutilization.

Overallithasbeenatryingyetoptimisticyearandwehavemade

significantprogress.Ourfinancialperformancefinishedwith

totalrevenuesofP485Millionandnetincomebeforetax(NIBIT)

ofP71.07Million.Thisiscertainlyatestimonytoourstabilityand

reliabilityasadevelopmentalpartnerofthegovernmentwhile

thecountrycontinuesitssteadyeconomicupswing.Jobsthat

weregeneratedbythenumberoffirmsthattheagencyassisted

wereatmorethan23,000whileexportcurrencyreceiptswereat

$471Million.Notwithstandingthestatusoftheyear’searnings

wewereabletodeclare/remitdividendsamountingto

P50MillionforCY2013,bookedinApril2014.

The2014businessroadmapwasdrawnbyeffectualdecisionsand

strategic initiatives that aim to shape the agency’s operations in

theshorttermandfarintothefuture.Akeypursuitisthe3-year

StrategicFramework(2014-2017),whichservesasthegeneral

direction in the business implementation relative to PhilEXIM’s

capital,capacityandcapability.Anecessaryingredientinthe

FrameworkisthesupportoftheNationalGovernmenttoinfuse

andstrengthentheAgency’scapital.TheAgency’scorporate

objectiveswereredesignedbasedonanewframeworkduring

the latter part of the year by strengthening our core business of

sovereign guarantee to capably serve the priority industries of the

government, extending direct lending on meritorious cases and

increasedourcapacity-buildinginitiativestobenefitdevelopment

andgrowthofSMEs.

Strategy management serves as a vital cog in the implementation

oftheframeworkaswellastheincomingbusinessplan.This

initiativewillalsoprovidetheneededstrategyandinnovationin

aligningthecompanywiththedirection.Thisisalsothemeans

bywhichkeyofficesoftheCorporationshallworktowards

strategyexecutionefficiency.

Coexistentwiththeseinnovativeeffortsweresustainedgood

governancepracticesforabalancedandefficientorganization,

developmentofinternalresourcesandpro-activeendeavours

toaddressnon-earningassets.Theagencyalsobeganitsre-

brandingeffortswithanupdatedPhilEXIMlogoandaBranding

Manual,leadingtoamajorinstitutionalbrandingendeavorwitha

third-partyconsultant.

ToefficientlymanageourportfoliowecreatedtheLoans

Management System to automate the central liability records of

the agency. Our Human Resource Department’s administrative

processesandprocedureswerealsoaddressedwiththe

forthcomingprocurementofasoftwareprogramtoenhanceits

efficiency.

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Withautomationconstructivelyalteringourdailyoperations,we

resolutelydependonmotivatedandwell-informedpeoplewho

arekeytodeliveringimprovedcustomerexperience—whether

that involves providing advice, responding to information

requests,orhandlingatransaction.Forthisreason,oneofour

prioritieswastoconstantlynurturetheengagementofour

employees.Throughon-goingtraining,coaching,andeffective

leadership,westrivetocreateanabsorbingworkplacewhere

each employee can develop to their full potential. Under the

PhilEXIMTrainingRoadmap,aboutninety-fivepercent(95%)of

allemployeescompletedtrainingbytheendof2014.Three(3)

select participants successfully completed their course under the

agency’s Leadership and Management Development Program of

theAteneodeManilaGraduateSchooloftheBusiness-Centerfor

ContinuingEducation.Thegraduatesweredeployedtohandle

businessdevelopmentandotherkeyareasofoperations.

Productdevelopmentandrisk-managementaretwoareaswhere

wealsomadenotableinnovations.Thisyearweintroducedthe

PortfolioGuaranteeProgrammainlytoaddressanyfinancial

institution’sB-BBBratedSMEportfoliobymeansofusingthe

sovereignrating,zero-riskweightfeatureandcapitalleveraging

advantageoftheAgency.Lateronwewillexpandthemandate

of guaranteeing foreign loans to include investments agency

foreignentityandfinancialinstitutiontomajorindustriesof

export, manufacturing, etc.

Aspartofliquidityriskmanagementandcost-savingstrategy,

Managementtooktheopportunitiestotradeitsgovernment

securities(GS)andshiftproceedstoshort-termplacements,loan

releasesorrepaymentofborrowings.Closemonitoringofthe

processoftheGSportfoliowasundertakentoeffectimmediate

sale at best prices.

ERMILANDO D. NAPAPresident and CEO*

Asmuchaswefocusoncreatingvalueforshareholders,wealso

fulfiloursocio-economicrolewithconstancy.In2014,PhilEXIM

initsCSRiniitiative,partneredwithHallmarkfortheLeukemic

IndigentsFundEndowmentFoundation(HallmarkforL.I.F.E.)with

the aim of raising funds to help alleviate the burden of indigent

childrenwithleukemiaandbroadenpublicawarenessaboutthe

social realities of the disease.

Throughourdonation,Hallmarkcardsprovidedpurposeful

productssuchasdesktopcalendars,canvasbags,tumblersand

greetingcards.Theprojectprovedmutuallyfavorabletothe

agency’smarketingstrategysincetheproducts,inscribedwith

the PhilEXIM logo, served as promotional gifts to PhilEXIM’s

valuedstakeholders.

Wehopetostaythecourseintheyearsaheadaswelookto

sustain our established record in value creation by evolving

withinchangingeconomicconditionsandourcustomers’

financialneeds.Moreimportantly,wemustactivelysolicitthe

urgent support of the Department of Finance and the National

Governmenttobringtogreaterfruitionthedevelopment

mandate of the Corporation.

Inclosing,Iwouldliketothankourshareholders,andourpartners

fortheircontinuedsupport.Aswemovetowardsarenewed

opportunity,Ishallseekactivesupportfromallstakeholdersto

realize our business goals.

*effective September 10, 2014

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b)Providingdirectlendingand,onacase-to-casebasis, guarantees to strategic SMEs

3. Strategic industries under large accounts shall be confined initially to the following sectors: a) Tourism b)Agri-orientedexportsandimportsubstitution c) Infrastructure,includingkeysupply-sidesupport sector d)Export-andimportsubstitutionoriented manufacturing

4. Strategic SMEs include: a) Export-andimportsubstitution-oriented manufacturing b)Tourism c) Agri-exportsandimportsubstitution

5. Continuous but focused development of internal capabilities through: a) Well-balancedandresponsiveorganization b)Continuouspersonneltraininganddevelopment c) Competitiveremunerationstructure d)Goodcorporategovernance e) CreationofaBoard-levelFinanceandBusiness Development Committee

PhilEXIM shifted its strategic priorities and revised its business planfollowingthedirectionoftheNationalGovernment,whereitemphasized its thrusts – support industries such as SMEs tourism, infrastructure, agriculture and manufacturing.

Alignedtowardsthepursuitofgovernmentonsocial-economicdevelopment, PhilEXIM redefined its business direction guided by aStrategicFrameworkunderthenewleadershipwhichcameinduring the later part of 2014, namely:

1. Stabilize the business with sufficient capacity; 2. Create a responsive and sustainable organization; 3. Achieve socio-economic relevance.

TheoverallfocusofPhilEXIMistocontinuebeingarelevant,self-sufficient,profitable,socially-responsiveandprofessionally-runAgency,stronglysupportiveofkeyeconomicdevelopmentprioritiesoftheGovernment.Hence,toenabletheAgencytoimplementtheaforesaidFramework,majorstrategicinitiativesshallformthecoreofbothrevenueandsupportunits.Thesearethefollowing:

1. Remain relevant as a self-sufficient and profitable agency strongly supportive of key economic development priorities of the government.

2. Activities shall be confined to: a) Providingsovereignguaranteestocarefullyselected largeenterprisesinstrategicindustries,aswellas directlendingonpurelymeritoriouscases;

POLICY DIRECTIONS PURSUANT TO STRATEGIC FRAMEWORK (2014-2017)

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6. Proactive evaluation, monitoring and management of guarantee portfolio, comparable to, if not better than, those performed by direct lenders a) Ensuresustainablelong-termviabilityandprofitability of accounts by paying particular attention to the following,amongothers: • Majoreconomicdevelopmentswhichmay significantly impact on the clients’ business • Majorchangesintheownershipand/or management structure of the Corporation • Majortechnologicaldevelopmentswhichmay affect the clients’ products or services. • Majorchangesinthecompetitiveenvironment suchastheentryofanewbigplayerormajor expansion of an existing competitor • Majorchangesinthedemandand/orsupply side f the clients business b)Ensureaccountsremainingoodstandingand potential problems are detected and cured on time

7. Comprehensive approach to the development and growth of SMEs: a) Capability-buildinginsuchareasasfinancial management,financialreporting/recording,business development and management. b)Givemoreweighttosustainableviabilityofprojects overadequacyofcollateralcover. c) Closeevaluation,monitoringandmanagement of accounts to facilitate development and faster transitionintobankable/profitableentities. d)Strongsupportforhigh-impactaccount prospectsthatwillgeneratemorejobs,export and import substitutes particularly those that can be easily replicated thru regions outside NCR.Thismayinvolveassistanceinthedetermination of the appropriate legal and operating structures of the client

8. For large guaranteed accounts in selected strategic industries: a) Proactiveevaluation,monitoringandmanagement of accounts to ensure that the business continuously remains viable and the accounts remain in good standing. b)Favorablyconsiderarrangingwithlendersand/ ordirectlygrantingshort-termcreditfacility, onpurelymeritoriouscases,toprevent/cure temporarysetbacks/defaultsorensuresustainable viability of the business of guaranteed accounts. c) Encourageandsupportequityfinancingoverdebt financingfromforeignfundersbywayofguarantees onforeignequitycomponent,especiallyfor expanding/enhancingexistingviablebusinesses instrategicorNG’spriorityindustries,therebyfurther improving viability and profitability due to reduced interest burden, and also helping promote much needed foreign direct investments into the country.

9. For non-performing assets: Proactiverole,apartfromundertakinglegalinitiatives, viaclosenetworkingandcoordinationwithco-creditors, prospectivefinancialorstrategicinvestorsandborrowers/ debtors,amongothers,toensurethatnon-performing assetsarerecovered,liquidizedand/orconverted to performing assets the soonest possible.

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PhilEXIM shifted its strategic priorities and revised its business planfollowingthedirectionofFinanceSecretaryandBoardChairpersonCesarV.Purisima.TheDOFSecretaryemphasizedtheNationalGovernmentsthrusts–supportindustriessuchasSMEstourism, infrastructure, agriculture and manufacturing.

Alignedtowardsthepursuitofgovernmentonsocial-economicdevelopment, PhilEXIM redefined its business direction guided by aStrategicFrameworkunderthenewleadershipwhichcameinduring the latter part of 2014, namely:

1. Stabilizethebusinesswithsufficientcapacity; 2. Createaresponsiveandsustainableorganization; 3.Achievesocio-economicrelevance.

TheoverallfocusofPhilEXIMistocontinuebeingrelevant,self-sufficient,profitable,sociallyresponsiveandprofessionally-runAgency,stronglysupportiveofkeyeconomicdevelopmentprioritiesoftheGovernment.Hence,toenabletheAgencytoimplementtheaforesaidFrameworkasenvisionedbythecurrentleadership,majorstrategicinitiativesformedthecoreofbothrevenueandsupportunits.Thesearethefollowing:

1. Strengthen core business of sovereign guarantees instrategicindustries(withinSMEandLarge),while extendingdirectlendingonmeritoriouscases; 2. Comprehensive approach to the development and growthofSMEsmainlythrucapabilitybuilding,social inputstogrowthanddevelopment;

3. Pro-activeevaluation,monitoringandmanagementof guaranteeportfolio; 4. Focuseddevelopmentofinternalresourcecapabilities; 5. Continuedadoptionofkeybusinessandoperating policiesandcontrols; 6. Sustain good corporate governance for balanced and efficientorganization; 7. Proactivemanagementofeffortsonaddressingnon- earning assets.

Results as of December 31, 2014PhilEXIM ended the year on a positive financial note, generating totalrevenuesofP485Millionandnetincomebeforetax(NIBIT)ofP71.07Million.EBITDAontheotherhandregisteredatP194Million.

Likewise,netincomeevenedoutatP49.8MillionaspartialprovisionwasrecordedincompliancewiththeBSPrecommendationtocovercreditlosses.TotalprovisioningamountedtoP133Millionwhichis202%overthebudgetofonlyP44Million.Thisresultedtoa13%orP48.1Millionincreaseintotalexpenses amounting to P414.6 Million.

Income from core business covering the guarantee and lending programsfellshortbyP170Millionor35%againsttargetofP486.6MillionduetounrealizedrevenuesfromtheprojectedlargeaccountsandSMEportfolioestimatedatP9.05Billion.

2014REVIEW OFOPERATIONS

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SeverallargeaccountswhichwerealreadyprocesseddidnotprogressfollowingtheAgency’sredefinedbusinessdirection.Furthermore,someaccountspre-terminateditsloanguaranteeasitadvancedintobankableentities.

Outstanding portfolio under the guarantee program to date amountstoP13.15Billion,allofwhicharebigticketaccounts;whileunderthelendingprogram,largeaccountsamounttoP596MillionandSMEsatP325Million.

RemedialManagementwasdownbyP24Millionor29%duetounrealizedgainonsaleofacquiredasset.Ontheonehand,FundManagementremainedaheadoftargetbyP8.8Millionor9%despiteshortfallinthetradingofAvailable-for-SaleSecurities.

Paradigm ShiftInlinewiththechangeinbusinessoutlook,theAgencyprovidedmainly guarantees to carefully selected large enterprises in strategicindustries,aswellaslimiteddirectlendingonpurelymeritorious cases. It provided direct lending and, on exceptional cases,guaranteestostrategicSMEs.Regulartradingactivitieswerediscontinued except for opportunistic disposition of existingsecuritiesportfolio,proceedsofwhichshallbere-deployedtodirect SME lending activities.

Total Portfolio by Economic Sector

Industry

78.99%Services

17.61%Agriculture

3.40%

Portfolio in terms of Access to Credit by RegionsAsofend-2014,accesstofinancing(byregionsoutsideNCR)widenedby6percentagepointsto84%from78%asofend-2013,brought about by more focused development financing efforts in VisayasandMindanao.Beyondtheobjectivetogrowtheportfolio,effortswerealsogearedtowardsextendinggreateraccesstootherregionsofthePhilippines.Industriesthatweresupportedintheseregionalareasweremanufacturing,utilities,IT,tourismandagriculture.

Forlargeaccounts,theAgencyfocusedonstrategicindustriessuchasTourism,Agri-orientedexportsandimportsubstitution,infrastructure,includingkeysupply-sidesupportsectorandExport-andimportsubstitutionorientedmanufacturing.

Portfolio ConcentrationCredit portfolio totaled P14 Billion as of December 31, 2014 distributedtothefollowingeconomicsectors:

Regional PortfolioDistribution as of December 31, 2014

(In Php Millions)

NCR 2,289.14

Luzon 5,576.18

Visayas 3,527.80

Mindanao 2,674.80

TOTAL 14,068

Total Portfolio by Economic Sector

Economic Sector Portfolio Contribution to

as of December 31, 2014 Portfolio(In Php Millions) (%)

Industry 11,112.8 79.0

Services 2,477.4 17.6

Agriculture 477.7 3.4

TOTAL 14,068.00 100.00

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Organizational StrengthTostrengthenitsmanpowercomplementtheAgencydevelopedthePhilEXIMTraining&DevelopmentPlanwiththefollowingelements:Competencybasedwiththreegeneraltypes:Core,LeadershipandFunctional.Correspondingly,itcameupwithaCompetencyFrameworkGuidewhichseekstoprovideclarityonthecompetenciesandskillsrequiredintheemployee’sindividualrole at each career level.

With the establishment and implementation of theStrategicPerformanceManagementSystem(SPMS)perCivilService Commission Memorandum Circular No. 6. s. 2012 the AgencyconstitutedthePhilEXIMPerformanceManagementTeam(PMT)whichcraftedthePhilEXIMSPMS.

ThePhilEXIMTrainingRoadmapwasdesignedandbasedonthisaboutninety-fivepercent(95%)ofallemployeescompletedtrainingbythethirdquarterof2014.UnderitsLeadershipandManagementDevelopmentProgramoftheAteneodeManilaGraduateSchoolofBusiness-CenterforContinuingEducation,theAgencysuccessfullysteppedupthecompetenciesofitsthree(3)participantswhocompletedtheirOn-the–JobTrainingat the different departments identified as critical to the business function of the Corporation.

With the proposed Compensation Position Classification System (CPCS)stillintheworks,theGovernanceCommissionforGOCCs(GCG)stillgavePhilEXIMtheauthoritytogranttheFY2013ProductivityBasedBonus(PBB)toitsofficersandemployeesduringthethirdquarterof2014.

Upgrade/Enhance AutomationRelative to its automation upgrading efforts, the creation of a LoansManagementSystem(LMS)wasinitiatedtoautomatethecentralliabilityrecordsoftheAgency.Therewasalsoaninitiativeon modernizing HRD’s core and administrative processes and procedures,withtheobjectiveofcontinuousimprovementontheeffectiveness,efficiencyandproductivityofhumanresource.Theprocurementofaserviceproviderthatcanofferasoftwareprogram in the upgrade and maintenance of payroll, time and attendancewasconsidered.

TheupdatingofITsystemsandhardwarewerealsocontinuouslyconducted such as updating of its financial management system, procurementofnewdesktops/laptopsandmaximizationofitsbackupinternetsystem.

Guarantees

93.46%

Lending

6.54%

Total Portfolio by Credit

Credit Portfolio Contributionas of December 31, 2014 to Portfolio

(In Php Millions) (%)

Guarantees 13,148.47 93.46

Lending 919.45 6.54

TOTAL 14,068 100.00

Qualitative HighlightsTheyearwasaturningpointforPhilEXIM.ThecreationofaStrategicFramework(2014-2017)enunciatedbythenewleadership that came in during the latter part of 2014 aimed at strengthening both capability and capacity. Organizational responsivenesswashastenedbystrengtheningthedistributionoftherevenue-supportcountinfavoroftheproductionside.Byyear’sendtheAgencyattainedanearly50:50ratioofrevenueand support group.

Mindanao

19.01%

NCR

16.27%

Visayas

25.08%

Luzon

39.64%

Total Portfolio by Regional Distribution

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Aspartofliquidityriskmanagementandcost-savingstrategy,Managementtooktheopportunitiestotradeitsgovernmentsecuritiesandshiftproceedstoshort-termplacements,loanreleasesorrepaymentofborrowings.ClosemonitoringoftheprocessoftheGovermentSecurities(GS)portfoliowasundertakentoeffectimmediatesaleatbestpricesofatleastbreak-evenpoint.

Foritscapacitybuildinginitiative,exploratorytalkswithcooperativesandtheDepartmentofTradeandIndustrygaveawindowofopportunityfortheAgencytoorganizeand,inthefuture, conduct regional forums around the Luzon, Visayas and Mindanao localities.

Good GovernanceGovernance-wise,theAgencyCompliedwithGCGMemorandumCircularNo.2012-07“CodeofCorporateGovernanceforGOCCs”withtheGoodGovernanceConditionsundertheGCGMemorandumCircularNos.2013-05(“RE-issued:2013InterimPerformance-BasedBonus”)and2013-06(“Re-issued:InterimPerformance-BasedIncentives”).TheupdatesoftheTransparencySealonthecorporatewebsiteweresuccessfullycompliedwithwhilethe2014PerformanceAgreementNegotiationwassubmitted.ItalsoamendedthepolicyonManagementActionTriggers(MAT)tofurtherimprovebusinessperformance.

Refreshing the Brand FranchiseToupdateitsrelevanceandreinforceitsbrandingfranchise,PhilEXIMcameupwithanewinstitutionallogoandalongwithitabrandingmanualwascreatedtoserveasguideforvariousapplicationsindesignforbanners,t-shirtsandstationaries.Thecorporatewebsitewasalsoredesignedtogiveanewlookandfeelforitstargetaudience.Concurrently,anewdesignforitsmarketingtools/collateralssuchasprogrambrochures,marketingfolders, corporate print ad designs and updated audio visual materialwerecreatedtoharmonizewiththenewdesign.

Promotional StrategiesGuidedbynewpolicydirectives,PhilEXIMfocusedonprogramsinsupportoftheSMEswherethePortfolioGuaranteeProgramwascraftedtocatertoSMEstoexpandthebusinesscapabilityofanyfinancialinstitution’sB-BBBratedSMEportfoliobymeansofutilizingthesovereignrating,zero-riskweightfeatureandcapitalleveragingadvantageoftheAgency.

ContinuingmarketingandpublicrelationseffortswereparticipatedinbytheAgencyviasponsorships,exhibitsand/orbriefings.ForitsROPAaccounts,theAgencyembarkedonaninformation/sellingcampaignatlocallevels.TheAssetManagementdepartmentcalledonaccreditednewbrokerstolookforbuyers,discountsandincentiveswereofferedfor“hard-to-sell”assetsandpropertydeveloperswerecontactedforpossiblejointventure.

AppointmentofErmilandoD.NapaasPresident&CEOwiththeswearing-inbyBoardChairpersonandFinanceSecretaryCesarV.Purisima.

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Corporate Objectives and Functions

1. Topromoteandfacilitatetheentryofforeignloansintothe country for development purposes having special regard totheneedsofexport-orientedindustries,industries registeredwiththeBoardofInvestments,public utilities,andindustriesthepromotionofwhichisencouraged bygovernmentpolicy;

2. ToguaranteeloansgrantedbyPhilippinebankingand financialinstitutionstoqualifiedexporters,producersof exportproducts,andcontractorswithapprovedservice contractsabroad;

3. Tofacilitateandassistintheimplementationofapproved service contracts abroad entered into by Philippine entities, enterprises,orcorporationswithforeignexchangeearning potentials,byprovidingcounter-guaranteetoPhilippine banksandfinancialinstitutionsissuingstand-byLettersof CreditorofLettersofGuaranteefortheperformanceofsaid servicecontracts;

4. Tomeetrequestsfromdomesticentities,enterprises, and corporations to assist them in the coordination of their developmentandexpansionplanswithaviewtoachieving betterutilizationoftheirresources;

5. Toprovideinsurancecover,creditandappropriateservices to facilitate the export of Philippine goods or services by any entity, enterprise or corporation organized or licensed to engage inbusinessinthePhilippines;

6. ToprovidedirectcreditsandloanstoexportersofPhilippine goodsandservices;

7. Toprovidetechnicalassistanceinthepreparation,financing, execution of development or expansion programs, including theformulationofspecificprojectproposals;and

8. Toundertakesuchactionsthatareconsistentwiththe primary purposes of the corporation.

CapitalizationPhilEXIMhasanauthorizedcapitalstockofP10billion,fullysubscribedbytheNationalGovernment.Thestatutorylimitonitsaggregateoutstandingguarantee obligations is fifteen times (15x) its subscribed capital stockplussurplus.AllobligationsofPhilEXIMcarrythefullfaithandcreditoftheRepublic of the Philippines.

Programs for Small, Medium and Large ExportsPhilEXIM plays a vital role in helping Philippine exporters gain access to internationalmarkets andbecomeglobally competitive. To assist small,medium and large exporters, as well as priority sectors, PhilEXIM hasvariousfinancingproductswhichaddresscredit-relatedproblemssuchaslimitedresources,lackofcollateralandlimitedaccesstofacilitiesandotherforms of trade financing.

PHILEXIM DEVELOPMENTAL ROLE OF

GUARANTEES

• GuaranteeProgramforSMEs Guaranteesonshorttermloanstopersonsorentitieslicensed toengageinexport-orientedactivities,aswellasactivities which,inthedeterminationofTIDCORP,promoteand developthecapitalgoodsandimport-substitutionindustries.

• GuaranteeProgramforLargeAccounts −Guaranteesonloanstodirectandindirectexporters, firmsinvolvedinpriorityprojectsoftheNational Governmentandimportsubstitutionindustries. −Promotes and facilitate the entry of foreign loans into the country for development purposes having special regardtotheneedsofexport-orientedindustries, industriesregisteredwiththeBoardofInvestments,publicutilities, andindustriesthepromotionofwhichisencouragedby government policy. −Guaranteesoninvestments(EquityandDebt)

• PortfolioGuaranteeProgramforSMEs Expand the business the business capability of any financial institution’sB-BBBratedSMEportfoliobymeansofutilizing thesovereignrating,zero-riskweightfeatureandcapital leveraging advantage of PhilEXIM.

DIRECT LENDING• Short-TermDirectLendingProgramforSMEs Short-termloanstopersonsorentitieslicensedtoengage inexport-orientedactivities,aswellasinactivitieswhich,in thedeterminationofTIDCORP,promoteanddevelopthe capitalgoodsandimport-substitutionindustries.

• MediumtoLong-TermDirectLendingProgramforSMEs Medium and long term loans to persons or entities licensed toengageinexport-orientedactivities,aswellasin activitieswhich,inthedeterminationofTIDCORP,promote anddevelopthecapitalgoodsandimport-substitution industries.

• WholesaleDirectLendingProgramforSMEs Short term loan and capability building assistance to SME Export Sector.

• AccessofSmallEnterprisestoSoundLendingOpportunities (ASENSO)Lendingprogrambygovernmentfinancial institutions(GFIs)designedtogivesmallandmedium enterprises(SMEs)greateraccesstoshortandlong-term funds.

TRADE CREDIT INSURANCEItisaninsurancepolicyofferedtobusinessentitieswishingtoprotecttheiraccountsreceivablefromlossduetocreditrisks.

• ExportCreditInsurance(ECI) Insurancecoveragetoexportersagainsttheriskofnon- payment by foreign buyers of export shipments on credit arisingfrompoliticalorcommercialrisks

• DomesticCreditInsurance Insurance coverage on receivables of a multinational’s subsidiarycompanyagainstnon-paymentofbuyersinthe subsidiary’s country

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PROGRAMS FOR PRIORITY SECTORS OF THE GOVERNMENT

Consistentwithgovernment’sexistingpriorities,PhilEXIMprovidesguaranteefacilitiestoattractinvestmentsparticularlyinareaswheretheforeigncountryhasdistinctadvantages,andwhereforeignexchangemaybegeneratedand/orsaved,namely:

The2014-2017InvestmentPriorityPlan(IPP)focusesoncompetitiveness,skillsdevelopment,technologyupgrading,infrastructuremodernization,andimprovementsinoverallbusinessenvironment.Togetherwiththegovernance reforms and good macroeconomic performance of the Philippinesinmorerecentyears,thisbodeswellforattractinginvestmentsand achieving economic transformation.

Tourism-Related Projects• TypeofProject:Hotel,resort,eco-tourism,retirement havens,medicaltourism,wellnessfacilities,sports,andleisure complexinpriorityareasundertheDepartmentofTourism’s Development Plan.

• NatureofRequirements Civilworkstoinclude: -Verticaldevelopments(i.e.buildings&otherrecreational structures) -Horizontaldevelopments(i.e.roads,watersewage,electrical system,telecomsinfrastructure) -Othersupportfacilities

Information and Communications Technology (ICT) Projects• TypeofProject:ThisisaServicesprojectwhichcanalsocover integratedcircuit(IC)design,shiprepair,testingfacilities,and chargingstationsfore-vehicles. Development of: -ICTzones(i.e.cyberparkorITparkdedicatedtoITlocators) -IT-basedindustries(i.e.softwaredevelopment) -IT-relatedprojects(i.e.call/datacenters.Backroom processingoperations,datarecoveryandoperation)

• NatureofRequirements Civilworkstoinclude: -Verticalandhorizontaldevelopments -CapitalExpenditure(e.g.networkcomputerserversand specialequipment) -Acquisitionofsoftwarepackages

Agri-Modernization Projects• TypeofProject:Integratedmechanizedfarm productionandbulkhandlingfacility,Oleochemicalfacility, grains production, and postharvest system

• NatureofRequirements Civilworkstoinclude: -Vertical/horizontaldevelopment -Installationofelectro-mechanicalsystem,capitalequipment

Electro-mechanicalworkstoinclude: -Installationofelectro-mechanicalsystem,capitalequipment -Farmmachinery&equipment

Infrastructure and Energy Projects• TypeofProject:Tollways,ports,airports,bulkwatersupply, watersystems,railwaysystems,powergeneration, transmissionanddistribution,solidwastemanagement, water,andwastewatertreatment.

• NatureRequirements Civilworkstoinclude: -Verticaldevelopments(buildings,structures) -Horizontaldevelopments(railandroadstations,waterand telecominfrastructure) -Othersupportfacilitiesequipment(electro-mechanical systemandinstallation,metallurgicalequipment,tollingstock, conveyorequipment)

Mining Projects• TypeofProject:Mineraloreproductionandprocessing• NatureofRequirements Civilworkstoinclude: -Vertical/horizontaldevelopment -Othersupportfacilities -ProcurementofequipmentThisyear’sproposedIPPdidnot include some of the preferred activities included in the previousyear,includingcreativeindustriesorknowledge-based services,researchanddevelopment,greenprojects,hospitaland medical services, and disaster prevention, mitigation, and recovery projects

Comparedtostand-alone,wherecorporationstypicallyresorttocommercialborrowingstofinancetheircapitalassetacquisitionand/orcivilworks,andwheretheborrowingcostsarenormallymarketrateswithtenorssuchasfive(5)yearsorless,theguaranteefacilitiesofferedbyPhilEXIMforprojectsintheabove-mentionedprioritysectorsprovidefinancingwithrisk-basedpricingandtheresultanteconomicreturns.

Thistranslatestomoreconcessionalprojecttermsandconditionsaswellasbettercashflows.Intheend,theprojectbecomesrealisticallyaffordabletotheend-userandviableinthelong-run.Thepromotionoftheindustrysectorsgeneratemorehighvaluejobs,equitabledistributionofeconomicbenefitsandabetterqualityoflifeforagreaternumberofFilipinos.

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PhilEXIM’sBoardLevelCommitteescontinuedtoundertakeitsresponsibilitiesconsistentwithstrengtheningcorporategovernancepracticesandriskmanagementeffortswithintheAgency.TogetherwithManagement,theseCommitteesactivelysupport the overall thrust of positioning PhilEXIM as a sound and viable government corporate entity and a strong partner of development.

Audit CommitteeInstalls and ensures the full operationalization of a proper and adequatecontrolsystemthatguaranteesreliabilityofreporting,safeguardingofassets,compliancewithrulesandregulationsonfinancialandrelatedmattersaswellaseffectivenessandefficiencyofoperations.

Chairperson: Benigno L. Zialcita III* Members: SoniaT.Valdeavilla JayY.Yuvallos VicenteS.Aquino*ChairpersonfromJanuarytoSeptember2014 MattersDiscussed/Resolved: • FinancialReportsasofDecember31,2013 • IAOAuditPlanforCY2014 • ReportonAudit(BusinessDevelopmentGroup2) • IAOAccomplishmentReportforCY2013 • ReportonAudit(SMEDepartment) • UpdateontheConductoftheFirstITAudit • ReportonAudit(FreshtexandRhockCrystalaccounts) • PortfolioUpdateasofMarch31,2014 • UpdateonNoticesofDisallowance • DelegatedAuthorityofthePresident&CEO • TimetableontheConductofITAudit • HiringofIAOHead • ReportonAudit(OfficeoftheCorporateSecretary) • ReportonAudit(OfficeoftheChiefLegalCounsel) • FinancialReportsasofOctober31,2014andMostLikely ResultsofOperationforCY201 • COAAnnualAuditReportforCY2013 • DividendsComputation • Write-OffofanAccountanditsLegalActionPlan

SOCIAL RESPONSIBILITY

CORPORATEGOVERNANCE AND

Credit CommitteeApprovescredittransactionsofuptoP100millionandpre-approves all credit transactions beyond P100 million before presentation to the Board of Directors for approval.

Chairperson: FranciscoS.Magsajo,Jr.*Members: SoledadEmiliaJ.Cruz JayY.Yuvallos Emmanuel F. Esguerra PoncianoC.Manalo,Jr. Benigno L. Zialcita III ** Ermilando D. Napa***

*ResignedinJune2014**OICinJuly2014***ElectedasP/CEOinSeptember2014

TurnoverofdividendsduringGOCCdayinMalacañang

NationalExportersWeekwithDTIRepresentatives

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MattersDiscussed/Resolved: • Actedupon28AccountspresentedbyBusiness RevenueGroups

Risk Oversight CommitteeAssiststheBoardindirectingtheaffairsoftheCorporationparticularly the development and oversight of the Corporation’s riskmanagementplansandprograms.Italsoassiststhegoverning body in assessing and providing oversight to management relative to the identification and evaluation of majorrisksinvolvedintheCorporation’sbusinessoperationsoranyotherareasthatcouldcreatesignificantriskstotheCorporation’s results of operations, reputation or capacity to fulfil its mandate.

Chairperson: PoncianoC.Manalo,Jr.Members: FranciscoS.Magsajo,Jr.* Benigno L. Zialcita III SoledadEmiliaJ.Cruz*ResignedinJune2014

MattersDiscussed/Resolved: • MarketRisk • ValueatRisk • InterestRateGapAnalysisReport

• ReportonPortfolioCap,CARandSBL • ClassificationofAccountsasofDecember31,2013 • HighRiskAccount • ReportonMarketRisk • StatusofRemedialAccount Corporate Governance CommitteeOverseesPhilEXIM’scomplianceeffortswithrespecttotheManualofCorporateGovernance,CodeofEthicsandrelatedlaws,rulesandregulations,aswellascompanypoliciesandprocedures;keepsabreastwithdevelopmentsinthefieldofcorporate governance affecting PhilEXIM.

Chairperson: Benigno L. Zialcita III * Members: FranciscoS.Magsajo,Jr.** SoniaT.Valdeavilla PoncianoC.Manalo,Jr. VicenteS.Aquino SoledadEmiliaJ.Cruz*** *ChairpersonfromJanuarytoSeptember2014 **ResignedinJune2014 ***Chairperson starting October 2014

MattersDiscussed/Resolved: • ProposedRevisiontothePhilEXIMCodeofCorporate Governance • PhilEXIMAnnualComplianceforCY2013 • ConductofAnnualPerformanceforCY2013 • CompliancewithAnti-MoneyLaunderingProgram Manual • DevelopmentofITSteeringCommitteepursuanttoBSP Circular No. 808 • PerformanceEvaluationforDirectorsfortheTermof Office-July1,2013toJune30,2014 • RefinementsintheOrganization • PersonnelActionsandMovements • UpdatesonBSPExaminationasofJuly30,2014

Social Responsibility to the Community

In2014,PhilEXIMpartneredwithHallmarkfortheLeukemicIndigentsFundEndowmentFoundation(HallmarkforL.I.F.E.)withthe aim of raising funds to help alleviate the burden of indigent childrenwithleukemiaandbroadenpublicawarenessthatthedisease can be cured through continuous treatment.

HallmarkforL.I.F.E.whichcelebratesits19thyear,annuallyshowcasesacollectionofChristmascardsdesignedanddonatedbytalentedlocalartistsandphotographersaswellascorporategiveaways.ThroughtheAgency’sdonation,Hallmarkcardsprovidedmeaningfulproductssuchasdesktopcalendars,canvasbags,tumblersandgreetingcards.TheprojectprovedmutuallyfavorabletotheAgency’smarketingstrategysincetheproducts,inscribedwiththePhilEXIMlogo,servedaspromotionalgiftstoPhilEXIM’svaluedstakeholders.

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CHAIRPERSON VICE-CHAIRPERSON VICE-CHAIRPERSON

CESAR V. PURISIMAJuly 2010 up to present

• BSinCommerce MajorsinAccounting&Management of Financial Institutions from De La Salle University

• MBAJLKelloggGraduateSchool ofManagement,NorthwesternUniversity in Chicago, Illinois

Past/Present Directorships: • GlobalBoardofAndersenWorldwide andtheGlobalExecutive • BoardofErnst&Young

FRANCISCO S. MAGSAJO, JR.January 2008 up to June 15, 2014

• BSC-Economics Lyceum of the Philippines

• AdvanceBankManagement (WhartonSchool)

Past/Present Directorships: • RizalCommercialBankingCorporation• RCBCSavingsBank• PNB-IFLHongKongLtd.• PhilippineNationalBank,HongKong• BulawanMiningCorporation• ChamberofThriftBanks

ERMILANDO D. NAPA September 10, 2014 up to present

• MasterinManagement AsianInstituteofManagement

• BachelorofScienceinBusiness Administration–AquinasUniversity

Past/Present Directorships: • NationalReinsuranceCorporation of the Philippines• ManilaConsulting&Management Company, Inc.• CenturyWoods,Inc. • CatanauanResources&DevelopmentCorp.• CIIF-OilMillsGroup

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GOVERNINGBOARD

GREGORY L. DOMINGOSecretaryDepartment of Trade and IndustryAssumption Date: July 2010 • BSManagementEngineering AteneodeManilaUniversity

• MBA AsianInstituteofManagement • MSOperationsResearch Wharton School University of Pennsylvania

Past/Present Directorships: • SMInvestmentsCorporation• BDOPrivateBank• BelleCorporation• MERALCO

AMANDO M. TETANGCO, JR.GovernorBangko Sentral ng PilipinasAssumption Date: July 2005

• ABEconomics,Ateneode Manila University

Past/Present Directorships: • BSPMonetaryBoard theAnti-MoneyLaundering Council • PhilippineInternational Convention Center• AgricultureCreditPolicyCouncil• CapitalMarketDevelopment Council • ExportDevelopmentCouncil• PhilExportBoardofTrustees

ARSENIO M. BALISACAN Director GeneralNational Economic andDevelopment Authority Assumption Date: May 2012

• PhDinEconomics(University ofHawaii);MS,Agricultural Economics(UPLosBaños)

Past/Present Directorships: • PhilippineStatisticsAuthority• PhilippineInstitutefor Development Studies• PhilippineCenterforEconomic Development• Public-PrivatePartnershipCenter

MEMBERS (as of December 31, 2014)

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BENIGNO L. ZIALCITA III Private Sector RepresentativeAssumption Date: March 2011 until 05 December 2014

• MBAUniversityofSta.ClaraUSA

Past/Present Directorships: • SubicBayDevelopment and Management Corporation • PhilippineNationalConstruction Corporation• NationalReinsurance Corporation of the Philippines• Housing&UrbanDevelopment Coordinating Council• GSISFamilyBank

MEMBERS

JAY Y. YUVALLOSExport Sector Representative Assumption Date: November 2012

• BSCommerceAccounting UniversityofSanJoseRecoletos

Past/Present Directorships: • InteriorBasicsExportCorporation• InfiniteHorizonsIncorporated• ASEANBusinessAdvisoryCouncil

ISIDRO A. CONSUNJIChairpersonPhilippine Overseas Construction BoardAssumption date: December 2011

• BSCivilEngineering University of the Philippines

• MBA AsianInstituteofManagement

Past/Present Directorships: • DMCIHoldingsInc.• DACONCorporation• PhilippineRealtyHoldings,Inc.• DMC-UrbanPropertyDevelopers,Inc.• DMCIProjectDevelopers,Inc.(PDI)• UniversalRightfieldProperty Holdings Inc.• SEM-CalacaPowerCorp.• AssociationofBuildersConsultants and Designers, Inc.• PhilippineConstructorsAssociation• PhilippineChamberofCoalMines,Inc.

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SOLEDAD EMILIA J. CRUZAssistant SecretaryDepartment of FinanceAssumption Date: November 2012

• BSCommerceMajorinAccounting St. Scholastica’s College

• MBA AteneodeManilaGraduateSchoolofBusiness

Past/Present Directorships: • NationalPowerCorporation• LocalWaterUtilitiesAdministration• LightRailTransitAuthority,• NationalFoodAuthority

VICENTE S. AQUINODeputy GovernorBangko Sentral ng PilipinasAssumption Date: June 2013

• BSJournalism Lyceum of the Philippines

• BachelorofLaws MLQUSchoolofLaw

Past/Present Directorships: • BSPProvidentFundBoardofTrustees• PhilippineInternationalConventionCenter Board of Directors• PhilippineRetirementAuthority

ALTERNATE MEMBERS

SONIA T. VALDEAVILLAOIC/ Executive DirectorPhilippine Overseas Construction BoardAssumption Date: December 2010

• BSCivilEngineering MSEFU, Lucena City

• MAUrban&RegionalPlanning UP Diliman

Past/Present Directorships: • BureauofProductStandards• Sub-TConStandardsDevelopmentSanitaryWares• PhilippineOverseasConstructionBoardCIAP• PhilippineInsituteofCivilEngineers(MakatiChapter)

EMMANUEL F. ESGUERRA Deputy Director General National Economic Development AuthorityAssumption Date: September 2012

• ABEconomics-UPDiliman • MA-Economics(UPDiliman)• PhDAgriculturalEconomics(Ohio StateUniversity,USA)

Past/Present Directorships: • EconomicsResearchCenter• UPSchoolofEconomics

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SENIORMANAGEMENT

ERMILANDO D. NAPAPresident & CEO

BOARD-LEVEL OFFICES

CORPORATE RESOURCES GROUP

OFFICE OF THE PRESIDENT AND CEO

ATTY. DYNAH G. NEPOMUCENO-BAYOTVice President & Corporate SecretaryOfficeoftheCorporateSecretary

ConcurrentHead,CorporateGovernanceOffice

Not in Photo

SALMA F. ANGKAYA-KUHUTANVice PresidentOfficeoftheBoardChairman

EDNA G. DE LEONSenior Vice PresidentInternalAuditOffice

IAN A. BRIONESSenior Vice President & Chief Strategy OfficerStrategy and Development Sector

ConcurrentChief-of-Staff,OfficeofthePresidentandCEO

ARMAND D. EUGENIOVice PresidentRiskManagementDepartment

ATTY. FLORENCIO P. GABRIEL, JR.Senior Executive Vice PresidentCorporateResourcesGroup

ATTY. ISABELO G. GUMARUSenior Vice President & Chief Legal CounselLegalandAssetManagementSector

Concurrent Head LegalandAssetsDepartment

ARSENIO C. DE GUZMANVice PresidentTreasuryandLoanOperationsDepartment

Concurrent HeadTechnologyandServicesDepartment

MARILOU A. MEDINASenior Vice President & Chief Financial OfficerFinance and Information Management Sector

MILDRED B. FLORESVice PresidentFinance Services Department

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JANE U. TAMBANILLOSenior Executive Vice PresidentBusinessRevenueGroupI

Resigned Officers in 2014

FRANCISCO S. MAGSAJO, JR.President and CEO

ROWENA C. BORJAVice President AMD2,CorporateSector

FEDERICO F. REMOExecutive Vice President OperationsGroup

EVELYN T. VILLAMORVice President InternalAuditOffice

MILDRED S. VIRAYVice PresidentCredit and Monitoring Department I

ESTRELLITA N. TESOROVice PresidentCredit and Monitoring Department II

BUSINESS REVENUE GROUP I

BUSINESS REVENUE GROUP II

ATTY. EMMANUEL R. TORRESSenior Vice PresidentRevenue Center 1

Concurrent Head, Cebu Business Center

ROVI M. PERALTAVice PresidentRevenue Center 2

EVANGELINE M.Q. GOTANGCOVice PresidentRevenue Center 3

EUGENIA O. SINNUNGSenior Executive Vice PresidentBusinessRevenueGroupII

CELSO R. GUTIERREZSenior Vice PresidentRevenue Center 4

Concurrent Head, Davao Business Center

EDUARDO S. ANGELESVice PresidentRevenue Center 5

JULITA LEAH M. GARCIAVice PresidentRevenue Center 6

JANE L. LARAGANSenior Vice-President BusinessRevenueGroupI

MARIA MONICA A. REYESVice-PresidentInternalAuditOffice

BOOBIE ANGELA A. OCAYVice President Fund Management Department

JOHANNA ALERIA P. LORENZOSpecial Assistant to the Corporate Head IIOfficeoftheBoardChairman

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WORLDWIDEALLIANCES AND PARTNERSHIPSAnumberofExportCreditAgencies(ECAs)werecreatedduringthecourseofeconomicdevelopmentinmanyAsiancountriesconsistentwiththeirgovernments’export-orientedstrategy.Overtheyears,EximBanks/ECAshaveevolvedintowidelydifferentfinancialinstitutionsdependinguponthebusinessenvironmentintherespectivecountries,theirforeigntradeprofile,countryriskconsiderationsandthedevelopmentoflocalfinancialmarkets.Itsannualmeetingsserveasaforumfordiscussingawiderangeofissueswhichfocusonfosteringcommonunderstandingandsharinginformation.ItalsoendeavorstomeetthechallengesfacedasanECAinAsiaandexplorepossibleareasfor further regional cooperation.

PhilEXIMisaregularmemberoftheAsianEXIMBanksForum(AEBF)whichwascreatedupontheinitiativeoftheExport-ImportBankofIndia(EximIndia)in1996.TheobjectiveoftheAEBFistoenhancecooperationandforgestrongerlinksamongitsmemberinstitutions.

PhilEXIMisalsoamemberoftheAssociationofDevelopmentFinancingInstitutionsinAsiaandthePacific(ADFIAP)whereitattendsvariousforaandseminarsthelatter.ADFIAPwasfoundedin1976andisanassociationofdevelopmentbanksandotherfinancialinstitutionsengagedinthefinancingofdevelopmentintheAsia-Pacificregionwiththemissionofadvancingsustainabledevelopmentbystrengtheningthedevelopmentfinancefunctionandinstitutions,enhancingcapacityofmembersandadvocatingdevelopmentfinanceinnovations.TheideaofanassociationofdevelopmentbankersoriginatedinManilain1969attheFourthRegionalConferenceofDevelopmentFinancingInstitutionsofAsiaandthePacificundertheauspicesoftheAsianDevelopmentBank(ADB).

PhilEXIMisasix-timeawardeeofADFIAPforitsdevelopmentpursuits(2002,2004,2005,2007,2009and2011).

OTHER PARTNER FINANCIAL INSTITUTIONS:

PhilEXIM Corporate Headquarters

17th Floor, Citibank Tower, Citibank PlazaValero Street, Makati City 1226Trunkline: (632) 885-4700

Cebu Business Center

Rm. 904-B Keppel CenterSamar Loop corner Cardinal Rosales Avenue, Cebu CityTelefax No.: (032) 233-0469

Davao Business Center

4th Floor, DTI Bldg., cor. Monteverdeand Sales Streets, Davao CityTel. No.: (632) 885-4710

PhilEXIM Programs:

Guarantees - Guarantee Program for Large Accounts

- Portfolio Guarantee Program

- Guarantee Program for SMEs

Direct Lending - Short-Term Direct Lending Program for SMEs

- Medium to Long-Term Direct Lending Program for SMEs

- Wholesale Direct Lending Program for SMEs

- Access of Small Enterprises to Sound Lending

Opportunities (ASENSO)

Trade Credit Insurance - Export Credit Insurance

- Domestic Credit Insurance

PhilEXIM Corporate Headquarters17th Floor, Citibank Tower, Citibank Plaza

Valero Street, Makati City 1226 PhilippinesTrunkline: (632) 885-4700

www.philexim.gov.ph