Pse Anrpt2002

Our Vision
An efficient, orderly, fair and transparent center for raising capital and trading securities.
A pillar in the Philippine economy for growth, savings mobilization and capital formation.
A peer among the premier stock exchanges in the region.
Our Mission
Maximize value of shareholders with optimal services to all stakeholders.
Practice good governance and promote it in Listed Companies and Trading Participants
to sustain Investor’s confidence.
Develop world-class trading and settlement infrastructure and information system.
Develop new products and services.
Promote professional and personal growth and employees to better serveInvestors, Listed Companies,
and Trading Participants.
Our Corporate Values
Professionalism at high standards of competence, completing tasks properly, promptly and consistently.
Efficiency in delivery of services and products through cost effective and responsive processes.
Accountability for actions and decisions with transparency that will stand up to public scrutiny.
Teamwork through cooperation and harmony in working together for a common goal.
Integrity with individual interests subordinated to public good, guided by principles of justice and equity.
Table of Contents Chairperson’s Statement 1

Board of Directors and Officers 3
Economic Overview 4
Stock Market Performance 5
Highlights of Operations 7
PSE Operations 8
Appendices 16
Management Team 21
Financial Highlights 22
Report of Independent Auditors 23
Financial Statement 24
Notes to Financial Statements 28
Chairperson’s
Statement
As with any global organization today, the Philip-
pines Stock Exchange faced a number of chal-
lenges during the year. I am proud to say that
most of these challenges were addressed confi-
dently by people who continue to serve and re-
main steadfast in their commitment to the Ex-
change.
To all the Trading Participants, the shareholders, investors,
the Exchange’s management and the employees who believe
and trust the institution, allow me to share with you the suc-
cess of the year passed. You all have helped the Philippine
Stock Exchange become a stronger, more world-class institu-
tion. You have done and sacrificed a lot for the Exchange, and
its other stakeholders. And for that, I give you my most sincere
gratitude and urge you to keep the faith in the years to come.
Albeit my term as your chairperson is nearing its end and de-

spite the occasional incidents of bickering and personal
backstabbing that have only worked to the detriment of the
PSE and prevented us from meeting our other objectives, I am
pleased to announce that we did fairly well in meeting what my
Board planned for the Exchange when we started a year ago.
Allow me to go back to the list of programs that we have suc-

cessfully initiated and implemented.
We held the very first PSE Asian road show and investors’ con-
ference in which the best of the PSE and the national economy
was brought to the region’s retail and institutional investors.
The Investors’ Education Program was also simultaneously
rolled-out to inform target markets on the benefits of investing
in the equities. We tapped students, Overseas Filipino Work-
ers (OFWs), and institutional organizations. We look forward
to doing the same for the myriad other local investors that
have yet to be tapped.
THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 1

On the policy side, we successfully launched a As an organization preparing for the future, the
change in the Initial Public Offering (IPO) rules, Philippine Stock Exchange continued to look for
in which we gave a 10 percent discount to all improvements in the area of Information Tech-
retail investors. We also loosened up the list- nology (IT). To become technologically enabled,
ing rules to encourage more companies to list we have tied-up with the multilateral Asian De-
while making our policies more transparent velopment Bank (ADB) to financially-assist us in
and straightforward to achieve faster process- improving our surveillance systems. We are
ing time. also in the final stage of testing our trading
and custody systems for eventual T-Bills trad-
Conscious of the financial conditions of trading. Moreover, we have a system that allows
ing participants depressed by successive years our listed firms to disclose using the web.
of weak markets, the Board extended relief
measures through the suspension of terminal
Communication is one of the keys for improv-
fees, extension of short-term loans at prime
ing the performance of the PSE and in order to
rates collateralized by PSE shares, and provided
meet our goals, it is imperative that we widen
option for compliance with net capitalization re-
our communication channels to our stakehold-
quirement through pledge of unencumbered
ers. During my term, we developed the new
PSE shares.
PSE web site where stakeholders can view real-
Perhaps most important among our legislative time update on the Exchange. We have also
agenda is our collaboration with Senator Ralph continued our strategic relationship with the
Recto in developing the Omnibus Tax Bill. Now media, both in print and broadcast, to commu-
submitted to the floor for deliberation, the nicate effectively with our audiences.
Omnibus Tax Bill, if approved, will exempt the
Exchange from paying the documentary stamp These are but some of our achievements, but
tax on secondary trading in equities, deriva- we should not rest. We should continue to work
tives, fixed-income and mutual funds. Getting together to achieve more for the Exchange and
the DST abolished is expected to boost the per- to move it further forward and surmount the
formance of the stock market by encouraging challenges that will inevitably come in our way
more investors in the equities. The Bill will also in the future. There is still a lot of work to be
remove the distortions from the domestic capi- done. Good luck, Godspeed and thank you for
tal market, especially the restrictive provisions your support this past year.
on the DST of the National Internal Revenue
Code. I remain in your service.
The Philippine Stock Exchange is a believer in
hiring the best talents available in the market. Mabuhay!
As a strategic intent to meet the bourse’ goals,
we hired a Chief Financial Officer, a Chief Tech-
nology Officer and a Human Resources practi-
tioner who have the competencies and experi- MA. VIVIAN YUCHENGCO
ence to help us meet our goals. These three
key officers have brought along with them the
know-how that will improve our areas of finance,
information technology and human resources,
respectively.
2 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

ECONOMIC OVERVIEW
The global economy was resilient in 2002 with strongest Table 1. GDP OF SELECTED COUNTRIES
ANNUAL PERCENT CHANGE
growth posted by the United States among industrialized
countries at 2.4%, followed by United Kingdom at 1.6% and Countries 2000 2001 2002 p
the Euro-zone1 at 0.8%. China had highest in Asia at 8.0%, China 8.0 7.3 8.0
with Thailand trailing at 5.2% and Philippines at 4.6%. Ex- Hong Kong 10.2 0.6 2.3
Indonesia 4.8 3.5 3.7
pansion in Asia was stimulated by domestic demand and Japan 2.8 0.4 0.3
strong exports to industrial and regional economies. Malaysia 8.3 0.4 4.2
Philippines 4.5 3.2 4.6
Philippines recorded higher-than-expected performance Singapore 9.4 -2.4 2.2
in 2002 with output exceeding projections in all production South Korea 9.3 3.0 5.8
sectors in tandem with lowering of inflation and interest Taiwan 5.9 -2.2 3.5
rates and a turnaround in exports. Developments in fiscal Thailand 4.6 1.9 5.2
United Kingdom 3.1 1.9 1.6
deficit, exchange rate, peace and order compounded by
United States 3.8 0.3 2.4
prospects of war in the Middle East, however, nurtured nega- Source from official government web sites; on full year figures except
South Korea which is third quarter 2002.
tive sentiments, gradually taking a toll on the stock market. p preliminary
Growth in GDP of 4.6% was better than 3.2% in 2001 as Table 2. GNP/GDP PHILIPPINES
GNP expanded 5.2%, higher than past year’s 3.4%. GNP ANNUAL PERCENT CHANGE
gain came mainly from net factor income flows increasing
15.5%, twice more than 7.2% of previous year. This was 2000 2001 2002
due to increased remittances from overseas workers sig- Gross National Product 4.5 3.4 5.2
Gross Domestic Product 4.0 3.2 4.6
nificantly greater than last year. Net Factor Income from Abrd 12.7 7.2 15.5
By Industrial Origin
Of major GDP sectors by industrial origin, services posted Agri. Fishery & Forestry
3.3 3.7 3.5
highest rise of 5.4% with industry at 4.1% and agriculture at Industry 3.9 1.3 4.1
Service 4.4 4.4 5.4
3.5%. Expansion in services came mainly from trade and By Expenditure Shares
the transport, communication and storage sub-sectors. In Personal Consumption 3.5 3.6 3.9
industry, mining and quarrying recorded dramatic improve- Government Consumption
-1.1 0.3 1.8
Capital Formation 2.3 1.3 -0.6
ments at 49.2% reversing decline of last year’s 6.6% with Fixed Capital 0.0 -2.2 2.1
pick up in production of natural gas from the Malampaya Changes in Stock-59.8 261.7 -121.2
fields. Agriculture was buoyed up by greater output in for- Source: National Economic and Development Authority Constant Prices
estry compensating for slower increase in agriculture and fishery.

Expenditure bolstered by rise in personal consumption from 3.6% in prior year to 3.9% and in government
consumption from 0.3% to 1.8%. These compensated for lag in capital formation depressed by fall in inventory.
Inflation slowed down to 3.1%, almost half of last year at 6.1%. Moderation in prices was widespread from food,
to housing, fuel and utilities partly due to deferred adjustments in regulated prices of power and water.
Interest rates dropped across-the-board with 91-day Treasury bill rate averaging 5.4%, half of that of a year ago
at 9.9% and with interest on saving deposits down to 4.2% from 7.5%. Policy rates of Bangko Sentral ng Pilipinas
on overnight borrowing came down to 7.00% from 7.925% with lending rate to 9.25% from 10.175%.
Total external trade increased 11.1% with export up at 9.1% but slower than imports at 13.3% diminishing prior
year trade surplus from US$2.6 billion to US$1.6 billion. Manufactured goods accounted for 89.6% of exports
with 53.5% electronic components and 20.3% machinery and transport equipment. Imports were evenly distrib-
uted with 40.1% capital goods and 39.3% raw materials and intermediate goods.
1
Euro-zone: Austria, Belgium, France, Finland, Germany, Greece, Ireland, Italy, Luxembourg, the Netherlands, Portugal and Spain.

In spite of continuing trade surplus, concerns over gov- Table 3. SELECTED ECONOMIC INDICATORS
ernment deficit and domestic security problems nudged
peso exchange rate down 5%. 2000 2001 2002
Inflation Rate, % 4.4 6.1 3.1
Fiscal deficit by yearend at P 212.7 billion breached the 91-day Treasury Bill Rate, % 9.9 9.9 5.4
Savings Deposit Rate, % 7.4 7.5 4.2
P 130 billion target by 63.6% due to shortfall in revenues P/US$ Rate
9.3% less than planned and expenditures 3.2% higher. Average 44.19 50.99 51.60
Yearend 50.00 51.40 53.10
Bombing in Bali together with growing threat of war External Trade, Bil $ 69.5 61.7 68.5
% change 5.6 -11.2 11.1
heightened concerns over internal security. Initiatives Exports, Bil $ 38.1 32.2 35.1
were taken to address regional preoccupation with % change 8.7 -15.6 9.1
Imports, Bil $ 31.4 29.6 33.5
counter-terrorism through compacts with Indonesia and % change 2.1 -5.9 13.3
Malaysia on sharing intelligence information and on Deficit, Bil P 134.2 147.0 212.7
strengthening border surveillance. Revenues, Bil P 514.8 563.7 566.0
% change 7.6 9.5 0.4
Expenditures, Bil P 649.0 710.8 778.7
% change 10.0 9.5 9.6
STOCK MARKET PERFORMANCE Source: National Statistics Office (NSO); Bangko Sentral ng Pilipinas
Table 4. ANNUAL TRADING VALUE OF SELECTED EXCHANGES

Activities in major and regional
stock markets were largely down Billion US$ % Change
Exchanges 2000 2001 2002 2000 2001 2002
with trading values declining in 8 Hong Kong (HKEx) 376.7 241.0 194.0 63.7 -36.0 -19.5
of 13 exchanges, though better Jakarta (JSX) 15.1 9.5 13.1 -12.4 -36.9 37.0
than 12 of previous year. Stock Korea (KSE) 556.2 380.6 592.8 -24.2 -31.6 55.8
Kuala Lumpur (KLSE) 52.9 21.3 33.1 24.6 -59.7 55.3
prices dropped in 11 of 13 ex- London (LSE) 4,558.7 4,550.5 3,998.5 34.1 -0.2 -12.1
changes more than 9 of prior year. Nasdaq 19,798.8 10,934.6 7,254.6 89.1 -44.8 -33.7
Thailand was the only exchange New York (NYSE) 11,060.0 10,489.3 10,311.2 23.6 -5.2 -1.7
Philippine (PSE) 8.5 3.1 3.1 -57.2 -63.1 -1.3
with 2 successive years of growth Shanghai (SSE) 379.0 274.4 204.9 84.9 -27.6 -25.3
both in value turnover and prices. Singapore (SGX) 95.2 71.8 62.8 -11.4 -24.6 -12.5
Taiwan (TSEC) 986.3 544.6 632.7 8.0 -44.8 16.2
Thailand (SET) 21.1 31.0 41.3 -43.3 47.0 33.1
NYSE had largest value turnover Tokyo (TSE) 2,315.5 1,660.5 1,565.8 38.2 -28.3 -5.7
at US$10,311.2 billion with PSE Sources: World Federation of Exchanges except for SSE, which came from website of SSE and The People’s Bank of China
lowest at US$ 3.1 billion. Most ro-

Table 5. PRICE INDICES OF SELECTED EXCHANGES, YEAR-END
bust was KSE growing at 55.8%
in contrast to most significant de- % Change
cline of 33.7% at NASDAQ. Exchange Price 2000 2001 2002 2000 2001 2002
Indices
HKEx All Ordinaries 6,107.9 4,885.6 4,113.1 -14.4 -20.0 -15.8
Price gains were recorded only in JSX Composite 416.3 392.0 425.0 -38.5 -5.8 8.4
2 exchanges with SET up 17.3% KSE KOSPI 504.6 693.7 627.6 -50.9 37.5 -9.5
KLSE Composite 679.6 696.1 646.3 -16.3 2.4 -7.1
and JSX by 8.4%. Largest decline LSE FT-SE 100 6,222.5 5,217.4 3,940.4 -10.2 -16.2 -24.5
was Nasdaq down 31.5% fol- Nasdaq Composite 2,470.5 1,950.4 1,335.5 -39.3 -21.1 -31.5
lowed by LSE at 24.5%. In the re- NYSE DJIA 10,786.9 10,021.5 8,341.6 -6.2 -7.1 -16.8
PSE PHISIX 1,494.5 1,168.1 1,018.4 -30.3 -21.8 -12.8
gion, largest erosions were in SSE Composite 2,073.5 1,646.0 1,357.7 51.7 -20.6 -17.5
TSEC down 19.8%, TSE by SGX All-Sing Equities 502.4 426.3 348.8 -24.9 -15.1 -18.2
18.3% and SGX less 18.2%. TSEC Weighted Stock 4,743.1 5,551.2 4,452.5 -43.9 17.0 -19.8
SET Index 269.2 303.9 356.5 -44.1 12.9 17.3
TSE TOPIX 1,283.7 1,032.1 843.3 -25.5 -19.6 -18.3
Sources: World Federation of Exchanges except for SSE from Bloomberg

In the Philippines, the market perked up at start of year stimulated by better GDP growth, lower inflation and
interest rates reinforced by prospects of training and material assistance from US forces for Philippine forces
operating against kidnap gangs in Basilan. PHISIX peaked at 1,469.07 on 19 February, reversing previous year
decline depressed by terrorist attack at the World Trade Center and the Pentagon in September of 2001.
These gains gradually eroded with confidence shaken by accounting malfeasance of large firms listed in the
principal US market aggravated by war threats and the worsening domestic fiscal situation. PHISIX was lowest for
the year on 19 December at 997.78 marginally better than 979.34 on 24 October 2001.
Market capitalization decreased 2.7% to P 2,083.2 billion in spite of 5 new listings that added P 23.6 billion to total.
The increment was offset by lower prices on listed shares and reduction from delistings of P 7.4 billion.
Trading volume of 99.8 billion shares for the Table 6. SELECTED PSE MARKET INDICATORS
year was lowest since operations of PSE.
The 39.3% drop in volume was partly offset Yearend, in billion units a
1998 1999 2000 2001 2002
by increase in share prices resulting in value
turnover in same range as last year of P159.7 Market Capitalization (P) 1,358.0 1,936.5 b 2,576.5 b 2,141.4 b 2,083.2
billion. Trading in the Small and Medium Trading Value (P) c 408.7 781.0 357.7 159.6 159.7
Enterprise Board was modest at P 17.0 mil- Trading Volume (shares) 287.8 949.0 659.4 164.4 99.8
lion though more than three times that of prior a – End December for market capitalization; cumulative for trading value and volume
b – Market capitalization published for 1999 to 2001 revised to remove P1.2 billion market capitalization of Sime
year at P 4.7 million. Darby Pilipinas, Inc. with retroactive effect in 1999.
c – Based on trade date, i.e., orders matched.
Trading in Small Denominated Treasury

Bonds, the only government security listed, increased 3.4% from P 75.4 million to P 78.0 million. Amount was
insignificant compared to total issued of P 30.3 billion with most investors holding to maturity because of attractive
yield at 13.6% per annum.
Performance of listed companies as a group improved for first 9 months of 2002 based on latest available
statement of earnings. Aggregate earnings at P 42.5 billion was significantly better than same period last year of
P 10.2 billion.
Table 7. NET EARNINGS OF LISTED COMPANIES, BY INDUSTRY
Principal gain was in the food, bever-
age and tobacco industry earning P Net Earnings (Billion P)
13.9 billion, higher than year ago of P Fiscal Yearend First 9 Months
1998 1999 2000 2001 2001 2002
8.8 billion. Banks trailed closely at P Total Net Income 54.1 59.4 19.4 -30.0 10.2 42.5
12.5 billion significantly better than last Banks 10.1 28.9 3.3 7.1 3.5 12.5
Communication 0.9 2.0 -0.9 -14.9 -13.3 5.6
year's P3.5 billion, a major recovery in Construction & Other -0.3 -17.8 -1.7 -3.5 -0.7 -0.5
the financial sector. Communication Related Products
Financial Services 0.3 0.5 1.6 0.4 0.2 0.4
industry reported a turnaround of P 5.6 Food, Bev. & Tobacco 28.6 10.8 11.7 8.1 8.8 13.9
billion after 2 successive years of Holding Firms 9.8 19.2 1.1 -29.5 2.3 -3.2
Hotel, Recreation & 1.0 -3.7 -3.2 -2.9 -0.5 0.9
losses. Other sectors showed modest Other Services
improvement over last year with losses Manufacturing, Distribution -1.7 -3.2 -1.6 -0.6 0.1 0.2
& Trading
continuing in construction, mining, oil Mining -3.9 -0.5 -2.1 -3.3 -1.2 -0.4
and holding companies. Oil 0.3 -0.4 -0.5 -0.1 -0.04 -0.4
Others 0.3 03 0.3 0.3 0.2 0.2
With slow market in 2002, the Board Power and Energy 9.4 6.5 2.2 3.6 2.9 3.1
Property 2.6 2.6 9.5 2.6 4.0 5.7
and Management focused attention on Transport Services -1.1 -1.7 -0.4 2.6 3.8 4.4
improving governance and efficiencies SME 0.006 0.006 0.004 0.003 0.001
Source: Financial statements submitted to PSE; audited for full year 1998 to 2001 and un-audited for first nine months of 2001 and 2002.
0.005
in operations at PSE and extended

some relief measures to Trading Participants to alleviate their difficulties.

March • First election of Board of Directors under a demutualized regime
May • Strategic Development Committee plan for revitalization of the Exchange
July • Created post for and appointed person to Chief Technology Officer
August • Launching of good governance with adoption of following:
Corporate Governance Manual by PSE, by Trading Participants, and by Listed Companies;
Anti-Money Laundering Guidelines by PSE and by Trading Participants;
Code of Ethics by Trading Participants;
Code of Conduct and Ethics by Traders and Salesmen;
New Mission-Vision and Corporate Values by PSE Employees.
September • PSE Road Show: Framework for revitalization of the Exchange
Launched Online Disclosure System (ODiSy)
Memorandum of Understanding for the listing of Treasury bills
(Preceded by presentations to fund managers in Hongkong and Singapore followed by presentations to the
Philippine Chamber of Commerce and Industry at its October regional conference in Boracay, Aklan, and its
December national conference in Manila)
October • Concluded contract on donation of property by Fort Bonifacio Development Corp. to PSE
November • Adopted rulebook on conduct for Directors of PSE Board
December • Operating expenses below budget and 7% less than 2001
• Net income 53% greater than 2001

PSE OPERATIONS
Election of Directors to Board in March proceeded harmoniously with no objection to the 8 non-brokers
endorsed by the outgoing Board and with 7 broker-directors elected from a field of 10. Results of organiza-
tional meeting of elected directors that followed to choose officers of the Exchange was however chal-
lenged by a faction of broker-directors on grounds that non-broker directors frustrated the will of the
electorate by not electing the Chair from their team. This was aggravated by case filed in court protesting
exclusion of candidate from the shortlist for non-brokers. E
These controversies initially disrupted proceedings and deliberations at the Board and imposed addi-
tional burdens on Management. The Board and Management nevertheless would not be distracted from
the principal mission of regaining public trust and interest in the Exchange and of improving efficiencies
and operations to better serve all stakeholders fairly and effectively.
Committees were organized to address immediate priorities. Business Development, Technology, and
Demutualization committees were consolidated to a single Strategic Development Committee. Member-
ship and Building committees were de-activated. An Investment Committee was set up to share informa-
tion for maximizing investments of PSE and affiliated companies. By-Laws Committee was constituted to
draft provisions appropriate to a demutualized entity. (see Appendix A for committees)
The Exchange should be an efficient market that is orderly, fair and transparent for enterprise to mobilize
capital, for investors to acquire stakes in such ventures and share in their fortunes, and for Trading Partici-
pants to service their interests effectively with integrity.
Listings and Disclosures

Table 8. NEW LISTING
New Listings and Capital Mobilized
Public Offering (Million shares) Offer Price Public Offering (Million P)
The number of listed firms in- Name of Company Primary Secondary Total (P) Primary Secondary Total
creased to 234 with 5 listings 1. Citystate Savings Bank, Inc. 11.1 - 11.1 11.5 128.2 - 128.2
added partly offset by delisting 2. Salcon Power Corp. (1st B) 156.9 156.9 313.9 1.8 282.5 282.5 565.0
of 2. Of the new listings, 3 with 3. Highlands Prime Leisure Prop., Inc. 93.9 355.3 449.2 2.1 200.0 756.9 956.9
4. Banco de Oro UniBank (1st B) 50.5 56.3 106.8 20.8 1,050.2 1,172.1 2,222.7
track record, were listed in the 5. Jolliville Holdings, Inc. (1st B) 30.0 64.3 94.3 1.1 32.7 70.1 102.8
First Board accounting for Total 342.4 632.9 975.4 1,693.6 2,281.6 3,975.2
70% of public offerings with
54% by Banco De Oro Universal Bank alone. The
Table 9. CAPITAL MOBILIZED AND LISTED COMPANIES
two others in the Second Board accounted for
balance of 30%. Year end 31 Decem ber
1998 1999 2000 2001 2002
Capital mobilized by firms through the Exchange Capital Raised (B illion Pesos) 37.9 42.1 37.2 7.3 40.6
totaled P40.6 billion 5 times more than last year Initial Public O fferings 1 1.4 0.8 0.6 0.2 3.9
of P 7.3 billion. Over 90% or P 36.6 billion was Additional Listings 2 36.5 41.3 36.6 7.1 36.6
raised by existing firms through additional listing Num ber of Listed Companies R 222 225 229 231 234
with balance by new firms through IPO. Except New Listings 4 5 7 3 5
for plunge in 2001, amount raised was within the Delisting R 3 2 3 1 2
annual range of the past 5 years. R - Revised to reflect delisting of Sim e Darby Pilipinas, Inc. with retroactive effect on 1 Septem ber 1999.
1 - F igures represent the aggregate am ount of initial public offerings consisting of either new shares or existing shares
and/or both.
2- Figures represent additional issuance of new shares by lis ted companies after its initial public offering, specifically
from rights offering and private placem ent transactions.

Revision of Listing and Disclosure Rules
Listing rules were revised to facilitate entry of firms in the Exchange with emphasis on information and disclo-
sures to the market on a timely basis. Objective was to have more stocks listed with maximum information for the
investing public to assess risk better and make informed decisions. Revised rules awaiting approvals, include:
Disclosure Rules
Enhance safeguard against insider trading with blackout provision barring directors or officers of listed company
from trading of company shares up to two trading days from date of releasing material information. Reinforce
mandatory reports with more comprehensive information requirement.
Amendments to Rule on Additional Listing of Shares

Relax requirements for listing of shares to unrelated parties without requiring rights offering but retain for related
party transactions. Investors would no longer be deprived of benefits from new infusion of capital from unrelated
parties yet remain protected with retention of offer rights for existing shareholders in related party transactions.
IPO Distribution Process revised to simplify process but only provisions granting 10% discount to local small
investors was approved by SEC.
Knowledge Enhancement and Dissemination
PSE website was enhanced to contain the following:

• announcements of listed companies and PSE;
• stock quotations;
• dividend declarations;
• charts to facilitate determination of market behavior;
• prospectus of companies offering shares;
• listing requirements;
• SMS/WAP service that allows users to receive market information via mobile phone; and
• stock trading simulation game
Online Disclosure System (ODiSy) providing simultaneous and timely release of information to market partici-
pants was launched by President Gloria Macapagal-Arroyo during the PSE Road Show. Users could access
corporate disclosures and announcements through the PSE website 24 hours a day, 7 days a week. The System
would enable companies to upload corporate disclosures 24 hours a day, 5 days a week.
Compliance and Surveillance
Annual financial audit of all active Trading Participants were carried out supplemented by monthly review of
compliances with net capital requirements to assess capacity of each to meet their respective obligations to
clients. Sales practices were regularly audited as precautionary measure against abuse. Daily stock price and
volume movements were monitored to detect possible price manipulation and insider trading.

Surveillance System Upgrade
An Automated Market Surveillance System (AMPS) to signal unusual price or volume movements and help set
priorities in scheduling investigations was set up. A second phase implementation of this automated system to
facilitate organization of data and expedite analysis and retrieval would be in place by 2003.
Trading and Settlement
Delivery Versus Payment (DVP)
PSE, in coordination with the Securities Clearing Corporation of the Philippines (SCCP), monitored and man-
aged transactions to ensure settlement of PSE trades.
Table 10. PSE SETTLEMENT OF TRADES Number of trades settled for the year totaled
No. of No. of No. of Value of 521,678, inclusive of cross and block trades. Cor-
Year Settlement Days Trades Settled Shares Settled Trades Settled responding number of shares or volume amounted
(Billions) (Billion P)
2000 251 1,386,176 673.8 355.3
to 100.9 billion with value at P 162.9 billion.
2001 247 655,721 165.5 163.4
2002 246 521,678 100.9 Settlement fails and defaults were resolved through
162.9
Based on settlement, 3 days after trade date
the fails management system of SCCP to protect
the counterparties and contain settlement risks.
Rules on settlement require payments and delivery of securities be made before cut-off time 12:00 noon 3
business days after orders have been matched. Failure to do so would trigger remedial measures by SCCP to
ensure delivery and/or payments. If not done before start of trading following day, broker would be in default and
be suspended from trading until settlement of such obligations.
Table 11. SETTLEMENT FAILS
Security Fail Cash Fail

Year Instances No. of No. of Value Instances No. of Value
Trading Issues (Million Pesos) Trading (Million Pesos)
Participants Participants
2000 31 26 27 204.1 54 26 445.8
2001 13 13 13 72.8 19 14 147.1
2002 7 6 6 88.1 3 3 12.2
Source: SCCP
PSE handled 10 instances of settlement fails, of which 7 were on delivery involving 6 Trading Participants and 6
issues, and 3 on cash payments involving 3 Trading Participants. Incidences of settlement fails occurrence have
declined over the years.
All instances of settlement fails were resolved, with no defaults in settlement. This negated need for Buy-In
(purchase of shares from the market on behalf of the defaulter to settle a delivery failure) and Sell-Out (sale of
shares of the defaulter for cash to cover failure in payments). Penalties were imposed on all 10 occurrences of
settlement failure.
Block Sales
Big volume trades prearranged by clients of Trading Participants were through Block Sales subjecting transac-
tions to same taxes on regular trades of 0.5% sales tax in lieu of higher capital gains tax, and documentary stamp
tax of P 1.50 on each P 200 based on par value of securities traded.

Table 12. BLOCK SALES
Ninety-six block sales were processed in 2002
amounting to P 45.8 billion involving 94 Trading Year Number of Contract Value PSE Fees on Block Sales
Block Sales (Billion P) (Million P)
Participants and 28 issues. The Exchange 2000 58 58.9 0.00
earned a total of P 4.6 million from fees on block 2001 46 17.7 0.78 *
2002 96 45.8 4.58
sales. * Fee on Block Sales was only authorized by the SEC on August 10, 2001 at the rate of 1/200% on
each buy and sell contract.
Acquisition of a Clearing and Settlement System
Acquisition of a clearing and settlement (CNS) system was approved by the Board to improve the delivery-versus-
payment (DVP) settlement system of the Exchange. Trading orders would be electronically integrated to clearing
and settlement with the Exchange link-up to the depository, settlement banks and registries/transfer agents.
Collateral valuation, fund administration, and securities borrowing and lending operations, would be automated,
strengthening management of risks. Substantial reduction in acquisition cost of CNS would enable earlier
recovery with no increase in processing fees and should be fully operational by end of 2003.
Risk Management Table 13. CLEARING AND TRADE GUARANTY FUND
Clearing and Trade Guaranty Year Active Million Pesos

Fund (CTGF) Trading Fund Balance PSE Collections Interest Transfers Fund
Participants* (Beginning) Contributions Income from PSE Balance
CTGF was set up in 1999 to (Year-End)
1999 166 0.0 30.0** 14.7 4.9 69.8 119.4
consolidate funds allocated by 2000 166 119.4 50.0*** 7.2 10.0 0.0 186.6
PSE to cover settlement obli- 2001 156 186.6 0.0 2.6 16.8 0.0 206.0
gations of Trading Participants 2002 141 206.0 0.0 1.5 14.4 0.0 221.9
*Highest number during year in contrast to yearend. **Transferred to SCCP in December 1999. *** Transferred to SCCP in December 2000.
with liquidity problems. The
Fund was seeded with P 80 million contributions from PSE with incomes from fees levied on trading and from
interest placements. Current fee rate is 1/1000 of 1% collected monthly on value turnover of all regular trades.
Fund size was at P 221.9 million by end of 2002.
Securities Borrowing and Lending (SBL) Facility for Settlement Purposes
Borrowing and lending of securities have been arranged to cover possible delay in delivery of stocks sold. Rules
and operational guidelines governing SBL finalized in 2002 with implementation pending resolution of rate of
documentary stamp tax to apply either P 0.30 per P 200 on basis of loan concept or P 1.50 per P 200 on basis of
equity concept. Representation made with Bureau of Internal Revenue for same treatment as loan with ruling
expected shortly.
Infrastructure Development and Operations
Automated trading started 1993 prior to unification of the Manila and Makati stock exchanges. The exchanges
were merged with two trading floors retained served by an automated single-price trading system fully operational
by 1995.
Information technology continued to be upgraded to enhance transparency and improve efficiency to better serve
Investors, Trading Participants, Listed Companies, and the general public. PSE website content was enhanced,
Online Disclosure System (ODiSy) was set up with the Surveillance System broadened to strengthen market
watch activities.

Product Diversification
Mutual Funds
Market vitality depended not only on number but on variety of products available to investors. In addition to
facilitating listing equities, the Exchange opened distribution of mutual funds to Trading Participants in prepara-
tion for subsequent listing. In this regard, agreement with Sun Life Asset Management Company was concluded
for distribution of mutual funds through the Exchange.
Treasury Bills
Agreement was likewise concluded with the Bureau of Treasury (BTr) for secondary trading of Treasury Bills in
the Exchange. Through partnership with accredited Government Securities Dealers, Trading Participants would
bid in auctions, which upon award, would automatically list the entire issue for trade. T-bills could then be directly
sold to the public with greater transparency in prices. Trading of T-Bills at the PSE could be launched in 2003.
Dollar-Denominated Trading (DDT) Facility
DDT would open trading and settlement of Philippine securities listed offshore in dollar currency mitigating
foreign exchange risks in the process. For the initial launch, three offshore listed securities could be considered
namely, TEL (Philippine Long Distance Co.), MFC (Manulife Financial Corporation), and SLF (Sun Life Finan-
cial of Canada). DDT facility would be launched in the first half of 2003.
Information Campaign
Cognizant of media value in keeping the public informed of market activities, the Exchange continued press
briefings, news and photo releases. Weekly and Monthly reports with data and writeups on market performance
provided important guides for investments and made available in electronic form to lower cost and facilitate
access to users.
The PSE Guardian, a quarterly newsletter, was introduced with maiden issue in December. The newsletter
highlights accomplishments and undertakings of the Exchange. The investor’s guide for the novice investor was
updated and made available to interested parties. An audio-visual composition on the workings of the Exchange
and its role in capital formation and wealth creation was produced for viewing by interested audience. Visitors
continued to avail of the stock market briefing and guided tour of both the Makati and Pasig sites of the PSE.
Partnerships with Government and other Market Players
The Exchange continued to work closely with SEC, Congress, Department of Finance, Capital Market Develop-
ment Council, and Bankers' Association of the Philippines on matters concerning capital markets and related
legislative measures. Following were results of these initiatives:
z Enactment of Special Purpose Vehicle (SPV) law signed at the PSE Ayala Trading Floor in January
2003, extending tax incentives to relieve banks of their non-performing assets (NPAs) and return to
business of credit.

z Endorsement to Congress of following measures:
✓ Exemption of borrowing and lending of securities from Documentary Stamp Tax (DST);
✓ Securitization bill to establish legal structure for conversion of assets and receivables into
vendible securities;
✓ Personal Equity and Retirement Account (PERA) bill to encourage personal investments from
workers for their retirement;
✓ Amendments to the Investment Company Act to provide a regulatory framework for mutual funds;
✓ Amendments to the Securities Regulation Code to delete unrealistic restrictions on Trading
Participants and on directors of listed companies for trading transactions in the Exchange.
Education and Social Commitment
PSE Foundation remained the principal instrument for ex-

tending support to educational and social development. Fo-
cus has been on development of the capital market with some
resources allocated to poverty alleviation, disaster assistance
and environmental protection projects.
This was complemented by initiatives of the PSE Board, Man-
agement, and Staff during the Christmas season to redirect
part of Christmas budget to share with poor communities within
vicinities of
PSE office
sites. PSE employees hosted get togethers with street children
and presented gifts to indigent families in the Makati and Pasig
areas. Part of the re-allocation supported a feeding program
for malnourished children in Pinagbuhatan, Pasig. In lieu of
gifts to officials of government, associates in business and
friends, urgently needed AMBU (manual respirator) bags were
donated to the Philippine General Hospital in their names.
Subsidiaries
Clearing and settlement is an integral part of trading in securities. SCCP was set up to perform this function with
the Philippine Central Depository (PCD) as depository for securities traded to facilitate scripless transfers. PSE
invested in both firms to ensure that its interest would be served through 51% holdings in SCCP and 32% in PCD.
Both subsidiaries have been incurring losses with PSE taking up proportion in relation to its ownership share. For
this year, P 4 million each would have to be taken up from share in losses of SCCP and PCD or a total loss of P 8
million in spite of substantial reduction in losses at PCD due to downsizing pushed by PSE representatives.

OPERATIONS OF TRADING PARTICIPANTS
The Exchange had 184 Trading Participants with 137 active at yearend from the peak of 177 in 1997 receding
over the years with declining market activities. Withdrawal from operation was pronounced among foreign Trad-
ing Participants from high of 77 in 1997 to current 12 with locals declining gradually from high of 145 in 1996 to
125 at end year.
Of the 47 inactive Trading Participants, 27 opted for voluntary suspension, 4 involuntary suspension, 8 ceased
operations, with 8 dormant from start.
Prior to demutualization, all brokers had to be members of the Exchange to trade. To be a member, an individual
or a corporation had to acquire a seat either from the Exchange or from another broker subject to approval of the
Board of Governors.
Table 14. ACTIVE MEMBER-BROKERS/TRADING PARTICIPANTS
(VALUE IN MILLION PESOS)
TRADING
MEMBER-BROKERS PARTICIPANTS
1994 1995 1996 1997 1998 1999 2000 2001 2002
NO. OF ACTIVE MEMBER-BROKERS/ 162 169 176 177 166 163 158 144 137
TRADING PARTICIPANTS
Local 142 141 145 140 132 132 128 127 125
Foreign 20 28 31 37 34 31 30 17 12
ANNUAL VALUE TURNOVER 364,296 378,982 668,866 586,172 408,679 780,963 357,659 159,555 159,727
AVE. ANNUAL VALUE TURNOVER PER 2,248 2,242 3,800 3,311 2,461 4,791 2,263 1,108 1,165
MEMBER-BROKER/TRADING PARTICIPANT
VALUE OF MEMBERSHIP/ 45 80 75 71 30 28 25 25 * 12.05 **

TRADING RIGHT AND SHARES
High 45 80 85 78 30 32 31 25 12.05
Oct. 12 Oct. 4 Jun 17 Mar 21 Nov 20 Feb 10 Feb 23 Oct 12 Nov 13
Low 14 40 75 70 20 12 20 25 12.05
Jul 6 Apr 21 Dec 19 Feb 28 Jul 8 Feb 10 Jul 28 Oct 12 Nov 13
* Trading rights for P24.95 million with 50,000 PSE common shares for P50,000.00 on Oct 12, 2001
** Trading rights for P12.05 million with 50,000 PSE common shares for P50,000.00 on Nov 13, 2002
Upon demutualization through conversion of PSE to stock corporation on August 8, 2001, all 184 registered
brokers became Trading Participants with right to trade with each acquiring 50,000 shares in 2002.
First sale of trading right and shares was in 2001 for P 25 million, followed by another a year later for P 12.05
million. Sale solely of 50,000 shares in 2002 went for P 6 million.
During the year, 4 firms re-activated operations. Three local, namely: King’s Power Securities, Inc., UPCC
Securities Corp., Keppel Securities (Phils), Inc., and a foreign UOB Kay-Hian Securities (Phils), Inc. Two new
entrants, both local-owned, commenced trading operations after acquiring the shares and rights of inactive
Trading Participants and after securing SEC license and PSE Board approval. These were All Suwerte Securi-
ties, Inc. and EIB Securities, Inc.

Capital Resources
Total paid-up capital deployed by trading participants declined from P 9.2 billion in 2000 to P 6.3 billion in 2002
with corresponding drop in the average per firm from P 58 million to P 46 million this year. This was due to
combination of losses and departure of firms with capital in the higher range. Those with paid-up capital of P 100
million and up declined from 31 in 2000 to 18 more among foreign from 20 to 7.
Table 15. CAPITAL OF ACTIVE TRADING PARTICIPANTS
NO. OF TRADING PARTICIPANTS

A. GROUPING BY SIZE
OF PAID-UP CAPITAL 2000 2001 2002
(Million Pesos)
Local Foreign Local Foreign Local Foreign
Below 10 0 0 0 0 0 0
10 - 19.9 55 0 53 0 52 0
20 - 39.9 40 3 39 2 39 2
40 - 59.9 11 4 14 1 14 1
60 - 79.9 7 1 6 1 5 1
80 – 99.9 4 2 4 1 4 1
100 and above 11 20 12 11 11 7
TOTAL ACTIVE TRADING 128 30 127 17 125 12

PARTICIPANTS
158 144 137
B. TOTAL RESOURCES (Million Pesos)
PAID-UP CAPITAL 9,173.3 7,159.0 6,343.4
TOTAL ASSETS 18,218.9 10,606.4 8,862.7
TOTAL LIABILITIES 9,675.7 5,178.7 3,722.8
NET WORTH 8,543.2 5,427.7 5,139.9
NET INCOME (834.4) (1,068.5) (276.6)

(Source: Audited Financial Statement of Trading Participants)
Attrition in numbers and losses accrued by remaining firms took a heavy toll on total assets mobilized declining
from P 18.2 billion in 2000 to P 8.8 billion at year-end.
Net worth dropped to P 5.1 billion from P 8.5 billion in 2000 with departures eroding P 1.6 billion in 2001 and half
a billion in 2002.
Losses were substantial at a billion in 2001 diminished to quarter of a billion through cost cutting measures
including curtailment of liabilities with some relief from PSE through waiver of terminal fees. During this difficult
period, 47 brokerage firms had net income in 2000 for aggregate of P 273.1 million, 27 earned P 74.7 million in
2001 and 36 in 2002 for P 113 million.

Appendix A: COMMITTEES AND KEY FUNCTIONS
2001 2002 KEY FUNCTIONS

REGULAR COMMITTEES
1. Business Ethics 1. Governance o Promote the observance of business conduct and ethics by Trading Participants in their
and Conduct (Converted to brokerage business and operations;
Governance to reflect
current focus over the o Conduct review of Rules and recommend amendments or adopt new rules as appropriate;
rights and interests of
the investing public.) o Review findings and cause actions to be taken on the recommendations of the Compliance
and Surveillance Group relative to violations by trading participants, dealers, traders,
salesmen, issuers, of the PSE rules with respect to business conduct, and minimum
requirements for brokerage operations.
2. Management 2. Audit o Supervise internal audit of all PSE transactions through examining of its books, papers and
Audit and Finance (Converted to Audit to records; engage services of a Certified Public Accountant with concurrence of the Board of
emphasize its Directors; and render appropriate reports to the Board as required.
independence from
management with direct
accountability to the
Board.)
3. Nomination 3. Nomination o Pre-screen and qualify all candidates for Directors of the Board in consultation with the SEC;
o Formulate and issue guidelines on number of directorships a member of the Board may hold.
4. Listing 4. Listing o Review recommendations by Listings and Disclosure Group and where appropriate endorse
for approval or notation of the Board on matters concerning listing applications, penalties,
fines and sanctions to be imposed on erring companies and policies governing listed
companies;
o Recommend for approval of the Board amendments to Listing and Disclosure Rules of the
Exchange.
5. Floor Trading 5. Floor Trading o Recommend changes on trading rules for Board approval;
& Arbitration & Arbitration
o Enforce and administer, through management, the dissemination and strict implementation of
trading rules and regulations;
o Settle disputes and trading discrepancy arising from transactions on the floor.
6. Settlement 6. Settlement o Recommend measures to enhance efficiency of the clearing and settlement system.
7. Membership (Ceased operation with management continuing services and functions.)
7. Remuneration o Review compensation structure of the Board and the organization and recommend measures
(Constituted to comply for Board consideration.
with Governance
Manual)
AD HOC COMMITTEES
2001 2002 KEY FUNCTIONS
8. House 8. House o Recommend maintenance and upkeep and determine concessionaire services of the PSE
Brokers’ Lounge.
9. Building (De-activated with the completion on the property donation of Fort Bonifacio Development Corp. to PSE.)
10. Sports 9. Sports o Foster camaraderie among Trading Participants through sports activities.
11. Business 10. Strategic o Develop with management a strategic business plan to enhance governance and operational
Dev\t. Development efficiency of PSE.
12. Technology (Consolidated into one
13.Demutua- committee.)
lization
14. Legislative 11. Legislative o Review bills Congress that affect PSE and the capital market, and recommend specific
courses of action;
o Initiate studies in specific areas to improve the capital market and recommend the passage of
bills to address them.
12. Investments o Share information and analysis in view of best options for investments of PSE. Paramount
objective is to maximize interest income and minimize risk.
13. By-Laws o Review existing PSE Articles of Incorporation and By-laws and recommend amendments
thereto.

Appendix B: LIST OF TRADING PARTICIPANTS
As of 28 February 2003
COMPANY NAME NOMINEE/TRADING PARTICIPANT COMPANY NAME NOMINEE/TRADING PARTICIPANT

A & A Securities, Inc. Shirley Y. Bangayan Diversified Securities, Inc. Ramon C. Garcia Jr.
A. T. De Castro Securities Corp. Alejandro T. De Castro E*Trade Securities Corporation * David Heron
AAA Southeast Equities, Inc. D. Alfred A. Cabangon E. Chua Chiaco Securities, Inc. Ernesto Chua Chiaco
AB Capital Securities, Inc. Filomeno G. Francisco Eagle Equities, Inc. Joseph Y. Roxas
Abacus Securities Corporation Paulino S. Soo Eastern Securities Dev’t. Corp. Marian P. Leong
ABN Amro Asia Securities (Phils.), Inc. Gregorio U. Kilayko EastWest Capital Corporation Edilberto B. Bravo
Alakor Securities Corporation Gerard Anton S. Ramos EBC Securities Corporation ** Genevieve W. J. Go
All AsiaSecurities Management Corp. * — EIB Securities, Inc. Reynaldo G. David
All Suwerte Securities, Inc. Paul L. Wee Equitiworld Securities, Inc. Antonio A. Lopa
Alpha Securities Corporation Alberto L. Yu Evergreen Stock Brokerage & Sec. Inc. Francisco S. Gaisano
Angping & Associates Securities, Inc. Jerry C. Angping F. Yap Securities, Inc. Felipe U. Yap
Ansaldo, Godinez & Company, Inc. Mariano U. Godinez FEB Stock Brokers, Inc. * Emilio S. De Quiros
Apex Phils. Equities Corporation Jose Roberto Delgado Fidelity Securities, Inc. Ben C. Tiu
Armstrong Securities, Inc. Tony O. King Finvest Securities Company, Inc. ** —
Asia Pacific Capital Equities & Securities Corp. — First Integrated Capital Securities, Inc. Manuel Mañalac Jr.
Asiamerit Securities, Inc. * — First Orient Securities, Inc. Trinidad Y. Kalaw
Asian Capital Equities, Inc. Jose Armando L. Eduque Fortune Securities, Inc. Alberto Gotuaco
Asiasec Equities, Inc. Gideon G. Sison Francisco Ortigas Securities, Inc. Francisco M. Ortigas III
Astra Securities Corporation Benito B. H. Ang G. D. Tan & Company, Inc. Gilbert Tan
ATC Securities, Inc. Anselmo Trinidad Jr. G. K. Goh Securities (Phils.), Inc. * —
ATR-Kim Eng Securities, Inc. Ramon B. Arnaiz Globalinks Securities & Stocks, Inc. David L. Wuson
Aurora Securities, Inc. Emmanuel Edward C. Co Golden Tower Sec. & Holdings, Inc. Andres Lao Hian Liong
B. H. Chua Securities Corporation Michael Li Chua Goldstar Securities, Inc. Joseph K. Mancilla
BA Securities, Inc. Ang Biao Grand Asia Securities, Inc. **** Jose C. Balonan
Belson Securities, Inc. Federico C. Lim Guild Securities, Inc. Antonio B. Alvarez
Benjamin Co Ca & Company, Inc. Benjamin Co Ca Guoco Securities (Phils.), Inc. * Micky Yong
Bernad Securities, Inc. Elphege Wong H. E. Bennett Securities, Inc. Jesus M. de la Peña
BNP Paribas Investment (Phils.), Inc. *** — HDI Securities, Inc. Chia Kim Teck
BNP Paribas Peregrine Securities, Inc. * — Highland Securities Phils., Inc. Vicente Jayme Jr.
BPI Securities Corporation Senen L. Matoto HK Securities, Inc. Rodolfo V. Cruz
Campos, Lanuza & Company, Inc. Gerardo O. Lanuza Jr. HSBC Securities (Philippines), Inc. * —
CDIB Venture Investment (Asia) Limited **** Joseph T. G. Tseng I. Ackerman & Company, Inc. Irving I. Ackerman
Century Securities Corporation Chan Kok Bin I. B. Gimenez Securities, Inc. Ignacio B. Gimenez
— Christopher L. Chilip IGC Securities, Inc. Ismael G. Cruz
Christfund Securities (Phils.), Inc. * Esteban Peña Sy Imperial, De Guzman, Abalos & Co., Inc. Leonides C. Tiotuico
Citicorp Securities International (RP),, Inc. * — Indosuez W. I. Carr Sec. (Phils.), Inc ***. Emmanuel L. Samson
Citisecurities, Inc. Edward K. Lee ING Securities (Philippines), Inc. Cesar Luis F. Bate
Citytrust Securities Corporation * Alberto S. Villarosa Intra-Invest Securities, Inc. Edgardo V. Guevara
CLSA Philippines, Inc. Raymond M. Tempongko Investors Securities, Inc. Edward Go
Coherco Securities, Inc. Wilfred T. Co J. M. Barcelon & Company, Inc. Amparo V. Barcelon
Cualoping Securities Corporation Victor Say Hipek J. P. Morgan Securities Philippines, Inc. Ismael A. Pili
DA Market Securities, Inc. Nestor S. Aguila Jaka Securities Corporation Katrina C. Ponce-Enrile
David Go Securities Corporation David C. Go Jocrison Securities, Inc. **** Jose Chong
DBP-Daiwa Securities SMBC Philippines, Inc. Hiroyuki Kaneko JSG Securities, Inc. Jorge S. Go
DBS Securities Phils., Inc. *** — Keppel Securities Philippines, Inc. Rhodora A. Gonzales
DBS Vickers Securities (Phils.), Inc. *** — Key Securities, Inc. * Koo Kiao Go
Deutsche Regis Partners, Inc. Emmanuel O. Bautista KGI Securities (Phils.), Inc. —

COMPANY NAME NOMINEE/TRADING PARTICIPANT COMPANY NAME NOMINEE/TRADING PARTICIPANT
King’s Power Securities, Inc. Carlos J. Ching RTG & Company, Inc. —
Larrgo Securities Company, Inc. Maria Paz R. Laurel S. J. Roxas & Company, Inc. Simplicio J. Roxas
Litonjua Securities, Inc. Eduardo V. Litonjua Jr. Santander Investment Securities (Phils.), Inc. Vicente B. Castillo
Lopez, Locsin, Ledesma & Company, Inc. Dionisio Lopez Sapphire Securities, Inc. *** —
Lucky Securities, Inc. Eddie T. Gobing Sarangani Securities, Inc. Arthur W. Antonino
Luy’s Securities Company, Inc. Enrique Luy SB Equities,Inc. Remy Tigulo
Magnum International Securities, Inc. * — Securities 2000, Inc. * Charles C. Ngan
Mandarin Securities Corporation Charles H. Shih Securities Plus, Inc. **** Eduardo L. Gaspar
Marian Securities, Inc. Richard L. Lee Securities Specialists, Inc. Francisco Villaroman
Marino Olondriz y Cia ** Marino Jose Olondriz SG Securities (Philippines), Inc ***. Urbano B. Razon Jr.
Mark Securities Corporation * Mark S. Dayrit Sincere Securities Corporation John Kenneth L. Ocampo
MDR Securities, Inc. Manuel D. Recto Solar Securities, Inc. Johnny S. Yap
Mercantile Securities, Inc. Astrid Melody Lim Standard Securities Corporation Domingo Herrera
Meridian Securities, Inc. Ronaldo S. Salonga Strategic Equities Corporation Roberto Z. Lorayes
Mount Peak Securities, Inc. William Gaweco Summit Securities, Inc. Harry G. Liu
Multi-Grade Securities Corp. Nolan M. Dapul Sun Hung Kai Securities (Phils.), Inc. * David Charles Parker
New World Securities, Inc. Joan Chai Chu Supreme Stockbroker, Inc. Eduardo C. Arroyo Jr.
Nieves Sanchez, Inc. Nieves Sanchez Tansengco & Company, Inc. Francisco O. Tansengco
Nomura Securities Phils., Inc. * Noriyasu Yoshizawa The First Resources Management & Sec. Corp. Ma. Vivian Yuchengco
OCBC Securities Philippines, Inc. *** — Thing On Securities Ltd. Philippines, Inc. Betty Wong
Optimum Securities Corporation Eddie S. Jose Topwin Securities, Inc. * —
Orion-Squire Capital, Inc. * — Tower Securities, Inc. Raymond Peter L. Unlay
Pan Asia Securities Corporation Mariano Tanenglian Trans-Asia Securities, Inc. Eugene Ong
Papa Securities Corporation Myron Timothy P. Papa Trendline Securities Corporation ** —
Paragon Strategic Holdings, Inc. **** — Tri-State Securities, Inc. Gregorio T. Chan
PCCI Securities Brokers Corp. Federico C. Galang Triton Securities Corporation Edwin L. Luy
PCIB Securities, Inc. Erlaster C. Sotto UBS Warburg Securities Philippines, Inc. Robrina L. Go
Pearlbank Securities, Inc. * Juanita U. Tan UCPB Securities, Inc. Joseph N. Pineda
PhileoAllied Securities (Philippines), Inc. * — Unicapital Securities, Inc. Leonardo R. Arguelles
Philippine Equity Partners, Inc. Joseph R. Madrid UOB-Kay Hian Securities (Philippines), Inc. —
Philippine TA Securities, Inc. * Yeoh Yong Woi UPCC Securities Corporation William C. Uy
Phil-Progress Securities Corp. Francisca S. Martin — Geronimo F. Velasco Jr.
Pierce Interlink Securities, Inc. * Luciano P. Ong Sr. Venture Securities, Inc. Eusebio Tanco
PJB Pacific Securities (Phils.), Inc. * — Vicsal Securities & Stock Brokerage, Inc. Frank Sy Gaisano
Platinum Securities, Inc. Rodolfo V. Feliciano Wealth Securities, Inc. Hosanna T. Ayson
PNB Securities, Inc. Victor C. Gella Westlink Global Equities, Inc. Rhoderick Santos
Premium Securities, Inc. Antonio Y. Tee Wise Securities Phils., Inc. Ramon L. Mapa
Pryce Securities, Inc. * Salvador P. Escaño
Wong Securities Corporation Eden Wong
Public Securities Corporation Reynaldo V. Reyes
Worldsec International Securities (Phils.), Inc.* Paul K. Cheng
Quality Investment & Securities Corp. Alfred Cu
— George Yang
R & L Investments, Inc. Rene R. Lee
Yao & Zialcita, Inc. Carmelita C. Yao
R. Coyiuto Securities, Inc. Robert Coyiuto Jr.
Yaptinchay Securities Corp. * Agerico T. Paras
R. Nubla Securities, Inc. Ralph Nubla Jr.
R. S. Lim & Company, Inc. Alejandro T. Yu Yu & Company, Inc. Johnny Yu
Rashid Hussain Securities (Phils.), Inc. *** — __________________________

LEGEND:
RCBC Securities, Inc. Alicia Rita M. Arroyo
* Voluntary Suspension
Regina Capital Development Corporation Marita A.Limlingan ** Involuntary Suspension
*** Ceased Operation
**** Never Operated

Appendix C. LISTED COMPANIES AND ISSUES
As of 31 December 2002
COMPANY / ISSUE STOCK PAR COMPANY / ISSUE STOCK PAR

SYMBOL VALUE SYMBOL VALUE
BANKS AND FINANCIAL SERVICES LA TONDENA DISTILLERS, INC. LTDI 1.00
LIBERTY FLOUR MILLS, INC. LFM 10.00
BANKS
PANCAKE HOUSE, INC. PCKH 1.00
ASIATRUST DEVELOPMENT BANK, INC. ASIA 10.00
PHILIPPINE TOBACCO FLUE-CURING & REDRYING CORP. TFC 1.00
BANCO DE ORO UNIVERSAL BANK BDO 10.00
RFM CORPORATION RFM 2.00
BANCO FILIPINO SAVINGS & MORTGAGE BANK * BF 100.00
SAN MIGUEL CORPORATION “A” SMC 5.00
BANK OF THE PHILIPPINE ISLANDS BPI 10.00
SAN MIGUEL CORPORATION “B” SMCB 5.00
CHINA BANKING CORPORATION CHIB 100.00
SAN MIGUEL PURE FOODS COMPANY, INC. “A” PF 10.00
CHINATRUST (PHILIPPINES) COMMERCIAL BANK CORP. CHTR 10.00
SAN MIGUEL PURE FOODS COMPANY, INC. “B” PFB 10.00
CITYSTATE SAVINGS BANK, INC. CSB 10.00
SWIFT FOODS, INC. SFI 1.00
EQUITABLE PCI BANK, INC. EBC 10.00
UNIVERSAL ROBINA CORPORATION URC 1.00
EXPORT AND INDUSTRY BANK, INC. * EIB 100.00
VITARICH CORPORATION VITA 1.00
FIRST E-BANK CORPORATION (A DEVELOPMENT BANK) FSTE 1.00
METROPOLITAN BANK & TRUST COMPANY MBT 20.00 HOLDING FIRMS
PHILIPPINE BANK OF COMMUNICATIONS PBC 100.00 A BROWN COMPANY, INC. BRN 1.00
PHILIPPINE NATIONAL BANK PNB 40.00 A. SORIANO CORPORATION ANS 1.00
PHILIPPINE SAVINGS BANK PSB 10.00 ABACUS CONS. RESOURCES & HOLDINGS, INC. “A” ABA 1.00
PHILIPPINE TRUST COMPANY PTC 10.00 ABACUS CONS. RESOURCES & HOLDINGS, INC. “B” ABAB 1.00
PRUDENTIAL BANK PB 100.00 ABOITIZ EQUITY VENTURES, INC. AEV 1.00
RIZAL COMM’L BANKING CORPORATION RCB 10.00 AJO.NET HOLDINGS, INC. AJO 1.00
SECURITY BANK CORPORATION SECB 10.00 ALCORN GOLD RESOURCES CORPORATION APM 0.01
UNION BANK OF THE PHILIPPINES UBP 10.00 ALLIANCE GLOBAL GROUP, INC. AGI 1.00
ALSONS CONSOLIDATED RESOURCES, INC. ACR 1.00
FINANCIAL SERVICES
ANGLO-PHILIPPINE HOLDINGS CORPORATION APO 1.00
BANKARD, INC. BKD 1.00
APC GROUP, INC. APC 1.00
FILIPINO FUND, INC. FFI 1.00
ASIA AMALGAMATED HOLDINGS CORPORATION AAA 1.00
FIRST ABACUS FINANCIAL HOLDINGS CORP. FAF 1.00
ATN HOLDINGS, INC. “A” ATN 1.00
FIRST METRO INVESTMENT CORPORATION FMIC 100.00
ATN HOLDINGS, INC. “B” ATNB 1.00
MANULIFE FINANCIAL CORPORATION MFC -
ATOK-BIG WEDGE COMPANY, INC. “A” AB 1.00
PCI LEASING & FINANCE, INC. PCIL 1.00
ATOK-BIG WEDGE COMPANY, INC. “B” ABB 1.00
SUN LIFE FINANCIAL SERVICES OF CANADA INC. SLF -
AYALA CORPORATION AC 1.00
COMMERCIAL - INDUSTRIAL BACNOTAN CONSOLIDATED INDUSTRIES, INC. BCI 10.00
BAGUIO GOLD HOLDINGS CORPORATION B 1.00
COMMUNICATION BALABAC RESOURCES & HOLDINGS CO., INC. BAL 1.00
ABS-CBN BROADCASTING CORPORATION ABS 1.00 BASIC CONSOLIDATED, INC. BSC 1.00
DIGITAL TELECOMMUNICATIONS PHILS., INC. DGTL 1.00 BENPRES HOLDINGS CORPORATION BPC 1.00
DIVERSIFIED FINANCIAL NETWORK, INC. DFNN 1.00 BHI HOLDINGS, INC. BH 100.00
EASYCALL COMMUNICATIONS PHILIPPINES, INC. ECP 1.00 BOULEVARD HOLDINGS, INC. BHI 1.00
GLOBE TELECOM, INC. GLO 50.00 CROWN EQUITIES, INC. CEI 1.00
IPEOPLE, INC. IPO 1.00 DMCI HOLDINGS, INC. DMC 1.00
ISLAND INFORMATION AND TECHNOLOGY, INC. IS 0.01 EAST ASIA POWER RESOURCES CORPORATION PWR 1.00
ISM COMMUNICATIONS CORPORATION ISM 0.01 EBECOM HOLDINGS, INC. EBE 1.00
IVANTAGE CORPORATION V 1.00 EVER GOTESCO RESOURCES & HOLDINGS, INC. EVER 1.00
LIBERTY TELECOMS HOLDINGS, INC. LIB 1.00 F & J PRINCE HOLDINGS CORPORATION “A” FJP 1.00
MANILA BROADCASTING COMPANY MBC 1.00 F & J PRINCE HOLDINGS CORPORATION “B” FJPB 1.00
MANILA BULLETIN PUBLISHING CORP. MB 1.00 FIL-ESTATE CORPORATION FC 1.00
PHILIPPINE LONG DISTANCE TEL. CO. “Common” TEL 5.00 FIL-HISPANO HOLDINGS CORPORATION FH 1.00
PHILIPPINE TELEGRAPH & TELEPHONE CORP. PTT 1.00 FILINVEST DEVELOPMENT CORPORATION FDC 1.00
PHILSTAR.COM, INC. STAR 1.00 FIRST PHILIPPINE HOLDINGS CORPORATION FPH 10.00
PHILWEB CORPORATION WEB 0.01 FORUM PACIFIC, INC. FPI 1.00
PILIPINO TELEPHONE CORPORATION PLTL 1.00 GLOBAL BUSINESS HOLDINGS, INC. GBH 50.00
GLOBAL EQUITIES, INC. GEI 1.00
POWER AND ENERGY HOUSE OF INVESTMENTS, INC. HI 2.00
MANILA ELECTRIC COMPANY “A” MER 10.00 IONICS, INC. ION 1.00
MANILA ELECTRIC COMPANY “B” MERB 10.00 JG SUMMIT HOLDINGS, INC. JGS 1.00
PETRON CORPORATION PCOR 1.00 JOLLIVILLE HOLDINGS CORPORATION JOH 1.00
SALCON POWER CORPORATION SPC 1.00 KEPPEL PHILIPPINES HOLDINGS, INC. “A” KPH 1.00
TRANS-ASIA OIL & ENERGY DEVELOPMENT CORP. TA 1.00 KEPPEL PHILIPPINES HOLDINGS, INC. “B” KPHB 1.00
MABUHAY HOLDINGS CORPORATION MHC 1.00
TRANSPORTATION SERVICES MACROASIA CORPORATION MAC 1.00
ASIAN TERMINALS, INC. ATI 1.00 MAGNUM HOLDINGS, INC. MHI 1.00
INT’L CONTAINER TERMINAL SERVICES, INC. ICT 1.00 MARSTEEL CONSOLIDATED, INC. “A” MC 0.01
KEPPEL PHILIPPINES MARINE, INC. KPM 1.00 MARSTEEL CONSOLIDATED, INC. “B” MCB 0.01
LORENZO SHIPPING CORPORATION LSC 1.00 MEDCO HOLDINGS, INC. MED 1.00
NEGROS NAVIGATION COMPANY, INC. NN 1.00 MEGAWORLD CORPORATION MEG 1.00
WILLIAM, GOTHONG & ABOITIZ, INC. WGA 1.00 METRO PACIFIC CORPORATION MPC 1.00
CONSTRUCTION & OTHER RELATED PRODUCTS MBF, INC. MBF 1.00
AGP INDUSTRIAL CORPORATION “A” * AGP 6.00 MIC HOLDINGS CORPORATION MET 100.00
AGP INDUSTRIAL CORPORATION “B” * AGPB 6.00 MULTITECH INVESTMENTS CORPORATION MIC 1.00
CONCRETE AGGREGATES CORPORATION “A” CA 10.00 MUSIC CORPORATION MUSX 1.00
CONCRETE AGGREGATES CORPORATION “B” CAB 10.00 NEXTSTAGE, INC. NXT 1.00
EEI CORPORATION EEI 1.00 PHILCOMSAT HOLDINGS CORPORATION PHC 1.00
FORTUNE CEMENT CORPORATION FCC 1.00 PHILTREAD HOLDINGS CORPORATION PTR 1.00
MARIWASA MANUFACTURING CORPORATION MMI 1.00 PRIME ORION PHILIPPINES, INC. POPI 1.00
NASIPIT LUMBER COMPANY, INC. “A” * NAS 100.00 ROXAS HOLDINGS, INC. ROX 1.00
NASIPIT LUMBER COMPANY, INC. “B” * NASB 100.00 SEAFRONT RESOURCES CORPORATION SPM 1.00
PHILIPPINE NATIONAL CONSTRUCTION CORPORATION * PNC 10.00 SOLID GROUP, INC. SGI 1.00
REPUBLIC CEMENT CORPORATION RCM 1.00 SOUTHEAST ASIA CEMENT HOLDINGS, INC. CMT 1.00
REPUBLIC GLASS HOLDINGS CORPORATION REG 1.00 TANDUAY HOLDINGS, INC. TDY 1.00
SANITARY WARES MANUFACTURING CORP. SWM 1.00 UNIOIL RESOURCES & HOLDINGS COMPANY, INC. UNI 1.00
UNION CEMENT CORPORATION UCC 1.00 UNIWIDE HOLDINGS, INC. UW 1.00
WATERFRONT PHILIPPINES, INC. WPI 1.00
FOOD, BEVERAGE & TOBACCO WELLEX INDUSTRIES, INC. * WIN 1.00
ALASKA MILK CORPORATION AMC 1.00 WISE HOLDINGS, INC. “A” * WHI 1.00
COSMOS BOTTLING CORPORATION CBC 1.00 WISE HOLDINGS, INC. “B” * WHIB 1.00
JOLLIBEE FOODS CORPORATION JFC 1.00 ZEUS HOLDINGS, INC. ZHI 1.00

COMPANY / ISSUE STOCK PAR COMPANY / ISSUE STOCK PAR
SYMBOL VALUE SYMBOL VALUE
MANUFACTURING, DIST’N & TRADING MACROASIA CORPORATION - Warrants 2005 MACW -
ACTIVE ALLIANCE, INC. AAI 1.00 PHILIPPINE BANK OF COMMUNICATION - Warrants 2004 PBCW -
BOGO MEDELLIN MILLING COMPANY BMM 10.00 PHILIPPINE NATIONAL BANK - Warrants 2005 PNBW2 -
CENTRAL AZUCARERA DE LA CARLOTA CAC 1.00 PHILWEB CORPORATION - Warrants 2004 WEBW -
CENTRAL AZUCARERA DE TARLAC CAT 10.00 QUEENBEE RESOURCES CORP. - Jollibee Foods Corp. Warrants 2003 JFCW -
CHEMICAL INDUSTRIES OF THE PHILIPPINES CIP 10.00
CORRO-COAT, INC. COAT 1.00 PROPERTY
EURO-MED LABORATORIES PHILS., INC. EURO 1.00 ARANETA PROPERTIES, INC. ARA 1.00
FEDERAL CHEMICALS, INC. FED 1.00 AYALA LAND, INC. ALI 1.00
FILSYN CORPORATION “A” * FYN 5.00 C & P HOMES, INC. CMP 1.00
FILSYN CORPORATION “B” * FYNB 5.00 CEBU HOLDINGS, INC. CHI 1.00
INTERPHIL LABORATORIES, INC. “A” ILI 1.00 CEBU PROPERTY VENTURE & DEV’T CORP. “A” CPV 1.00
INTERPHIL LABORATORIES, INC. “B” ILIB 1.00 CEBU PROPERTY VENTURE & DEV’T CORP. “B” CPVB 1.00
JARDINE DAVIES INC. JDI 4.00 CITY & LAND DEVELOPERS, INC. LAND 1.00
LMG CHEMICALS CORPORATION LMG 1.00 CITYLAND DEVELOPMENT CORPORATION CDC 1.00
MABUHAY VINYL CORPORATION MVC 1.00 CYBER BAY CORPORATION CYBR 1.00
MACONDRAY PLASTICS, INC. MRAY 1.00 EDSA PROPERTIES HOLDINGS, INC. EPHI 1.00
MATSUSHITA ELECTRIC PHILIPPINES CORP. MEP 1.00 EIB REALTY DEVELOPERS, INC. EIBR 1.00
METRO ALLIANCE HOLDINGS & EQUITIES CORP. “A” MAH 1.00 EMPIRE EAST LAND HOLDINGS, INC. ELI 1.00
METRO ALLIANCE HOLDINGS & EQUITIES CORP. “B” MAHB 1.00 FIL-ESTATE LAND, INC. LND 1.00
PHILIPPINE SEVEN CORPORATION “Common” SEVN 1.00 FILINVEST LAND, INC. FLI 1.00
PICOP RESOURCES, INC. PCP 1.00 GOTESCO LAND, INC. “A” GO 1.00
PRIME GAMING PHILIPPINES, INC. PGPI 10.00 GOTESCO LAND, INC. “B” GOB 1.00
PRYCE CORPORATION PPC 1.00 HIGHLANDS PRIME, INC. HP 1.00
REYNOLDS PHILIPPINES CORPORATION * RPC 1.00 KEPPEL PHILIPPINES PROPERTIES, INC. KEP 1.00
SPI TECHNOLOGIES, INC. SPI 1.00 KUOK PHIL. PROPERTIES, INC. KPP 1.00
STENIEL MANUFACTURING CORPORATION STN 1.00 MRC ALLIED INDUSTRIES, INC. MRC 1.00
VICTORIAS MILLING COMPANY, INC. * VMC 10.00 PHILIPPINE ESTATES CORPORATION PHES 1.00
HOTEL, RECREATION & OTHER SERVICES PHILIPPINE REALTY & HOLDINGS CORPORATION * RLT 1.00
ACESITE (PHILS.) HOTEL CORPORATION DHC 1.00 PRIMETOWN PROPERTY GROUP, INC. PMT 1.00
BELLE CORPORATION BEL 1.00 PRIMEX CORPORATION PRMX 1.00
FAIRMONT HOLDINGS, INC. FAIR 1.00 ROBINSON’S LAND CORPORATION RLC 1.00
GRAND PLAZA HOTEL CORPORATION GPH 10.00 SAN MIGUEL PROPERTIES, INC. SMP 10.00
LEISURE & RESORTS WORLD CORPORATION FER 1.00 SM DEVELOPMENT CORPORATION SMDC 1.00
MANILA JOCKEY CLUB, INC. MJC 1.00 SM PRIME HOLDINGS, INC. SMPH 1.00
MONDRAGON INTERNATIONAL PHILS., INC. MON 1.00 UNIVERSAL RIGHTFIELD PROPERTY HOLDINGS, INC. * UP 1.00
PHILIPPINE RACING CLUB, INC. PRC 1.00 ZIPPORAH REALTY HOLDINGS, INC. ZIP 1.00
PREMIERE ENTERTAINMENT PRODUCTIONS, INC. PEP 1.00
MINING
OTHERS ABRA MINING & INDUSTRIAL CORPORATION AR 0.01
CENTRO ESCOLAR UNIVERSITY CEU 1.00 APEX MINING COMPANY, INC. “A” APX 1.00
FAR EASTERN UNIVERSITY, INC. FEU 100.00 APEX MINING COMPANY, INC. “B” APXB 1.00
ATLAS CONSOLIDATED MINING & DEV’T CORP. AT 10.00
PREFERRED
BENGUET CORPORATION “A” BC 3.00
ALLIED BANKING CORP. - 15% Cum. Convertible Pref. A ABC 1,000
BENGUET CORPORATION “B” BCB 3.00
BANCO FIL. SAVINGS & MORTGAGE BANK - 15 ½% Cum. Conv. Pref. * BFC 100.00
CITY RESOURCES (PHILS.) CORPORATION * CRC 1.00
BANCO FIL. SAVINGS & MORTGAGE BANK - 15 ½% Cum. Non-Conv. Pref. * BFNC 100.00
DIZON COPPER SILVER MINES, INC. DIZ 1.00
BENGUET CORP. - 8% Cumulative Convertible Pref. A BCP 3.44
LEPANTO CONSOLIDATED MINING COMPANY “A” LC 0.10
CENTRAL AZUCARERA DE LA CARLOTA - Conv. Pref. B CACP 1.00
LEPANTO CONSOLIDATED MINING COMPANY “B” LCB 0.10
COSMOS BOTTLING CORP. - 5% Convertible Pref. CBCP 1.00
LODESTAR MINING CORPORATION “A” * LMC 1.00
DMCI HOLDINGS, INC. - Cumulative Convertible Pref. DMCP 1.00
LODESTAR MINING CORPORATION “B” * LMCB 1.00
GLOBE TELECOM, INC. - Preferred A GLO-PA 5.00
MANILA MINING CORPORATION “A” MA 0.01
PLDT 10% Cumulative Convertible Pref. Series A TELA 10.00
MANILA MINING CORPORATION “B” MAB 0.01
PLDT 10% Cumulative Convertible Pref. Series B TELB 10.00
OMICO CORPORATION OM 0.01
PLDT 10% Cumulative Convertible Pref. Series C TELC 10.00
PHILEX MINING CORPORATION “A” PX 1.00
PLDT 10% Cumulative Convertible Pref. Series D TELD 10.00
PHILEX MINING CORPORATION “B” PXB 1.00
PLDT 10% Cumulative Convertible Pref. Series E TELE 10.00
POLAR MINES & DEVELOPMENT CORPORATION PO 0.01
PLDT 10% Cumulative Convertible Pref. Series F TELF 10.00
SEMIRARA MINING CORPORATION “Common” SCC 1.00
PLDT 10% Cumulative Convertible Pref. Series G TELG 10.00
UEM DEVELOPMENT PHILS., INC. * MK 1.00
PLDT 10% Cumulative Convertible Pref. Series H TELH 10.00
UNITED PARAGON MINING CORPORATION UPM 1.00
PLDT 10% Cumulative Convertible Pref. Series I TELI 10.00
PLDT 10% Cumulative Convertible Pref. Series J TELJ 10.00 OIL
PLDT 10% Cumulative Convertible Pref. Series K TELK 10.00
PLDT 10% Cumulative Convertible Pref. Series L TELL 10.00 IMPERIAL RESOURCES, INC. “A” IMP 0.01
PLDT 10% Cumulative Convertible Pref. Series M TELM 10.00 IMPERIAL RESOURCES, INC. “B” IMPB 0.01
PLDT 10% Cumulative Convertible Pref. Series N TELN 10.00 INTERPORT RESOURCES CORPORATION “A” IRC 0.01
PLDT 10% Cumulative Convertible Pref. Series O TELO 10.00 INTERPORT RESOURCES CORPORATION “B” IRCB 0.01
PLDT 10% Cumulative Convertible Pref. Series P TELP 10.00 LANDOIL RESOURCES CORPORATION “A” * LRC 0.01
PLDT 10% Cumulative Convertible Pref. Series Q TELQ 10.00 LANDOIL RESOURCES CORPORATION “B” * LRCB 0.01
PLDT 10% Cumulative Convertible Pref. Series R TELR 10.00 ORIENTAL PETROLEUM & MINERAL CORP. “A” OPM 0.01
PLDT 10% Cumulative Convertible Pref. Series S TELS 10.00 ORIENTAL PETROLEUM & MINERAL CORP. “B” OPMB 0.01
PLDT 10% Cumulative Convertible Pref. Series T TELT 10.00 PACIFICA, INC. “A” PA 0.005
PLDT 10% Cumulative Convertible Pref. Series U TELU 10.00 PACIFICA, INC. “B” PAB 0.005
PLDT 10% Cumulative Convertible Pref. Series V TELV 10.00 PNOC EXPLORATION CORPORATION “A” PEC 1.00
PLDT 10% Cumulative Convertible Pref. Series W TELW 10.00 PNOC EXPLORATION CORPORATION “B” PECB 1.00
PLDT 10% Cumulative Convertible Pref. Series X TELX 10.00 SINOPHIL CORPORATION SINO 1.00
PLDT 10% Cumulative Convertible Pref. Series Y TELY 10.00 SOUTH CHINA RESOURCES, INC. SOC 1.00
PLDT 10% Cumulative Convertible Pref. Series Z TELZ 10.00 THE PHILODRILL CORPORATION “A” OV 1.00
PLDT 10% Cumulative Convertible Pref. Series AA TLAA 10.00 THE PHILODRILL CORPORATION “B” OVB 1.00
PLDT 10% Cumulative Convertible Pref. Series BB TLBB 10.00 VULCAN INDUSTRIAL & MINING CORPORATION VUL 1.00
PLDT 10% Cumulative Convertible Pref. Series CC TLCC 10.00
SEMIRARA MINING CORP. - 16% Cumulative Pref. SCCP 10,000 SMALL AND MEDIUM ENTERPRISES
SWIFT FOODS, INC. - Convertible Pref. SFIP 1.00 SQL*WIZARD, INC. WIZ 1.00
WARRANTS, PHIL. DEPOSIT RECEIPTS, ETC. GOVERNMENT SECURITIES
ABS-CBN HOLDINGS CORP. Phil. Deposit Receipts ABSP -
EASYCALL COMMUNICATIONS PHILIPPINES, INC. - Warrants ECPW - SMALL DENOMINATED TREASURY BONDS SDT0704 -
F & J PRINCE HOLDINGS CORP. - First Tranche “A” Warrants 2007 FJPAW1 -
F & J PRINCE HOLDINGS CORP. - First Tranche “B” Warrants 2007 FJPBW1 - Note: * - Trading Suspended/Halted

FINANCIAL HIGHLIGHTS
IN THOUSAND PESOS
Group Parent
2002 2001 Change 2002 2001 Change
RESULTS OF OPERATIONS:
Total Revenues 159,491 160,357 (1) 158,177 158,591 (0)

Listing Fees 122,310 113,213 8 122,310 113,213 8
Subscription Fees 6,448 17,216 (63) 6,448 17,216 (63)
Data Feed Income 14,870 14,733 1 14,870 14,733 1
Total Operating Expenses 175,272 191,551 (8) 164,197 175,927 (7)

Income (Loss) from Operations (15,780) (31,194) (49) (6,020) (17,336) (65)
Non-Operating Income-net 49,656 55,460 (10) 44,402 48,008 (8)
Net Income After Tax 27,964 18,294 53 27,964 18,294 53
YEAR-END FINANCIAL CONDITION:
Total Assets 1,281,645 1,254,231 2 1,036,220 1,019,854 2

Cash and Short Term Cash Investments 161,195 416,083 (61) 153,050 406,479 (62)
Property and Equipment 348,767 370,065 (6) 348,500 369,003 (6)
Total Liabilities 274,779 270,858 1 38,018 49,617 (23)

Due to SEC 6,448 16,189 (60) 6,448 16,189 (60)
Clearing and Trade Guarantee Fund 221,919 206,040 8 - -
Stockholders' Equity 998,202 970,237 3 998,202 970,237 3

REPORT OF INDEPENDENT AUDITORS
REPORT OF INDEPENDENT AUDITORS
The Board of Directors

The Philippine Stock Exchange, Inc.
We have audited the accompanying balance sheets of The Philippine Stock Exchange, Inc. and
Subsidiary (the Group) and of The Philippine Stock Exchange, Inc. (the Parent Company) as of
December 31, 2002 and 2001, and the related statements of income, changes in stockholders’ equity
and cash flows for the years then ended. These financial statements are the responsibility of the
Group’s management. Our responsibility is to express an opinion on these financial statements based
on our audits.
We conducted our audits in accordance with auditing standards generally accepted in the Philippines.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free of material misstatement. An audit includes examining, on a
test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management, as
well as evaluating the overall financial statement presentation. We believe that our audits provide a
reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Group and of the Parent Company as of December 31, 2002 and 2001, and the
results of their operations and cash flows for the years then ended in conformity with accounting
principles generally accepted in the Philippines.
PTR No. 7612544

January 2, 2003
Makati City
January 24, 2003

THE PHILIPPINE STOCK EXCHANGE, INC. AND SUBSIDIARY
BALANCE SHEETS
Group Parent Company

December 31
2002 2001 2002 2001
ASSETS
Current Assets
Cash and cash equivalents (Note 3) P
=31,148,575 P40,873,387
= P
= 25,003,658 P34,571,344
=
Short-term investments 130,046,315 375,210,048 128,046,315 371,907,591
Accounts receivable - net (Notes 4 and 19) 25,257,880 15,806,361 25,757,668 15,799,115
Other current assets - net (Note 5) 16,053,726 24,105,634 14,846,509 22,878,763
Total Current Assets 202,506,496 455,995,430 193,654,150 445,156,813
Equity Investments (Note 6) 58,480,354 62,522,747 67,498,245 76,195,109
Long-term Investments (Note 7) 333,410,218 10,000,000 333,410,218 10,000,000
Investments of:
Clearing and Trade Guaranty Fund (Note 11) 221,919,126 206,040,271 – –
Credit Ring Agreement Fund (Note 12) 10,000,000 10,000,000 – –
Property and Equipment - net (Note 8) 348,766,657 370,065,042 348,500,474 369,003,237
Other Assets - net (Note 9) 106,562,397 139,607,951 93,156,436 119,499,009
P
= 1,281,645,248 =
P1,254,231,441 P
= 1,036,219,523 =
P1,019,854,168
LIABILITIES AND STOCKHOLDERS’

EQUITY
Current Liabilities
Accounts payable, accrued expenses and
other current liabilities (Note 10) P
= 40,283,972 =53,170,461
P P
= 35,441,620 =47,969,649
P
Income tax payable 2,576,277 1,647,206 2,576,277 1,647,206
Total Current Liabilities 42,860,249 54,817,667 38,017,897 49,616,855
Clearing and Trade Guaranty Fund

(Note 11) 221,919,126 206,040,271 – –
Credit Ring Agreement Fund (Note 12) 10,000,000 10,000,000 – –
231,919,126 216,040,271 – –
Minority Interest in a Subsidiary 8,664,247 13,136,190 – –
Stockholders’ Equity
Capital stock (Note 1) 9,200,000 9,200,000 9,200,000 9,200,000
Additional paid-in capital (Note 1) 277,426,988 277,426,988 277,426,988 277,426,988
Donated capital (Note 13) 377,157,404 377,157,404 377,157,404 377,157,404
Retained earnings 334,417,234 306,452,921 334,417,234 306,452,921
998,201,626 970,237,313 998,201,626 970,237,313
P
= 1,281,645,248 =
P1,254,231,441 P
= 1,036,219,523 =
P1,019,854,168
See accompanying Notes to Financial Statements.

STATEMENTS OF INCOME

Years Ended December 31
2002 2001 2002 2001
OPERATING INCOME
Listing related income:
Listing fees P
= 122,309,702 =
P113,212,910 P
= 122,309,702 =
P113,212,910
Processing fees 690,000 691,000 690,000 691,000
Membership fees (Note 19):
Subscription 6,447,500 17,215,635 6,447,500 17,215,635
Processing 4,539,170 626,235 4,539,170 626,235
Membership assessment 1,606,980 1,544,350 1,606,980 1,544,350
Entrance 470,000 1,720,000 470,000 1,720,000
Data feed 14,869,736 14,733,301 14,869,736 14,733,301
Service fees 1,262,791 1,497,183 – –
Miscellaneous (Note 19) 7,295,534 9,116,783 7,244,226 8,847,175
159,491,413 160,357,397 158,177,314 158,590,606
OPERATING EXPENSES
Compensation and other related staff
expenses (Note 14) 62,766,225 61,475,913 60,037,772 57,089,063
Occupancy costs, excluding depreciation and
amortization (Note 16) 35,599,558 31,100,153 35,365,194 30,749,592
Depreciation and amortization (Note 8) 34,753,784 36,500,106 33,958,162 33,986,707
Professional fees 6,798,379 6,450,519 6,564,379 6,040,519
Amortization of preoperating expenses 6,702,981 6,702,981 – –
Provision for probable losses (Note 4) 5,791,347 9,778,060 5,791,347 9,778,060
Trading technology, computer maintenance
and other trading-related expenses 5,679,335 4,806,625 5,715,993 4,696,242
Office expenses 4,643,729 2,219,229 4,330,280 1,903,744
Taxes and licenses 3,581,136 8,848,265 3,547,659 8,817,547
Membership development 2,644,003 5,043,074 2,644,003 5,043,074
Travel and transportation 1,721,918 1,573,625 1,710,180 1,563,889
Representation and entertainment 724,203 2,414,836 704,935 2,388,205
Conferences, meetings and seminars 662,167 927,234 657,493 909,906
Market development 1,723,635 8,653,936 1,723,635 8,653,936
Miscellaneous 1,479,405 5,056,784 1,446,279 4,306,625
175,271,805 191,551,340 164,197,311 175,927,109
LOSS FROM OPERATIONS 15,780,392 31,193,943 6,019,997 17,336,503
NON-OPERATING INCOME - Net
(Note 17) 49,655,710 55,459,621 44,402,278 48,007,961
INCOME BEFORE MINORITY
INTEREST IN NET LOSS
OF A SUBSIDIARY 33,875,318 24,265,678 38,382,281 30,671,458
MINORITY INTEREST IN NET
LOSS OF A SUBSIDIARY 4,471,943 6,088,965 – –
INCOME BEFORE INCOME TAX 38,347,261 30,354,643 38,382,281 30,671,458
PROVISION FOR INCOME TAX
(Note 18) 10,382,948 12,060,702 10,417,968 12,377,517
NET INCOME P
=27,964,313 =
P18,293,941 P
=27,964,313 =
P18,293,941

STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

2002 2001
CAPITAL STOCK - P =1 par value (Note 1)

Authorized - 36,800,000 shares
Issued - 9,200,000 shares P
=9,200,000 =9,200,000
P
ADDITIONAL PAID-IN CAPITAL

Transfer from membership contributions (Note 1) 277,426,988 277,426,988
DONATED CAPITAL (Note 13) 377,157,404 377,157,404
RETAINED EARNINGS
Balance at beginning of year 306,452,921 288,158,980
Net income 27,964,313 18,293,941
Balance at end of year 334,417,234 306,452,921
P
=998,201,626 =970,237,313
P

STATEMENTS OF CASH FLOWS

2002 2001 2002 2001
CASH FLOWS FROM OPERATING
ACTIVITIES
Income before income tax P
=38,347,261 P
=30,354,643 P
= 38,382,281 P
=30,671,458
Adjustments to reconcile income before
income tax to net cash generated from
(used in) operations:
Interest income (45,699,821) (45,481,303) (45,100,860) (44,367,138)
Depreciation and amortization 34,753,784 36,500,106 33,958,162 33,986,707
Amortization of preoperating expenses 6,702,981 6,702,981 – –
Provisions for:
Probable losses 5,791,347 9,778,060 5,791,347 9,778,060
Decline in value of club membership 2,428,000 – 2,428,000 –
Minority interest in net loss of a subsidiary (4,471,943) (6,088,965) – –
Equity in net losses 4,042,393 12,342,620 8,696,864 18,680,114
Interest expense – 647,940 – 647,940
Reversal of provision for probable losses
on money market placement with a
rehabilitated bank – (26,577,785) – (26,577,785)
Operating income before working capital
changes 41,894,002 18,178,297 44,155,794 22,819,356
Changes in operating assets and liabilities:
Decrease (increase) in amounts of:
Accounts receivable (19,042,174) 18,625,251 (15,749,900) 20,099,323
Other current assets 9,431,838 (1,193,046) 4,419,618 (1,139,761)
Other assets 23,914,573 (10,022,712) 25,093,023 (10,065,389)
Decrease in amounts of accounts
payable, accrued expenses and
other current liabilities (12,886,489) (27,311,293) (12,528,029) (30,110,230)
Net cash generated from (used in) operations 43,311,750 (1,723,503) 45,390,506 1,603,299
Interest received 49,499,129 43,376,533 48,713,496 42,363,532
Income taxes paid (10,833,807) (40,351,292) (10,667,347) (40,148,692)
Interest paid – (647,940) – (647,940)
Net cash provided by operating activities 81,977,072 653,798 83,436,655 3,170,199
CASH FLOWS FROM INVESTING
ACTIVITIES
Decrease (increase) in amounts of:
Short-term investments 245,163,733 (56,819,513) 243,861,276 (60,701,944)
Long-term investments (323,410,218) (10,000,000) (323,410,218) (10,000,000)
Acquisitions of property and equipment (13,455,399) (15,082,199) (13,455,399) (14,821,710)
Net cash used in investing activities (91,701,884) (81,901,712) (93,004,341) (85,523,654)
NET DECREASE IN CASH AND CASH
EQUIVALENTS (9,724,812) (81,247,914) (9,567,686) (82,353,455)
CASH AND CASH EQUIVALENTS AT
BEGINNING OF YEAR 40,873,387 122,121,301 34,571,344 116,924,799
CASH AND CASH EQUIVALENTS AT
END OF YEAR P
=31,148,575 P
=40,873,387 P
=25,003,658 P
=34,571,344

NOTES TO FINANCIAL STATEMENTS
1. Organization
The Philippine Stock Exchange, Inc. (the Parent Company) was incorporated in the Philippines
on July 14, 1992 as a non-stock corporation, the primary purpose of which is to provide and
maintain a convenient and suitable market for the exchange, purchase and sale of all types of
securities and other instruments.
Republic Act (RA) No. 8799 entitled “Securities Regulation Code” (SRC) prescribed the conversion
of the Parent Company into a stock corporation (demutualization) on August 8, 2001, pursuant to
a conversion plan approved by the Securities and Exchange Commission (SEC).
The salient features of the demutualization plan approved by the SEC on August 3, 2001 include,
among others, the following:
a. Conversion of the Parent Company into a stock corporation by amending its Articles of
Incorporation and By-laws;
b. Subscription of each member of 50,000 shares at 1 per share. The remaining balance of the
Membership Contributions account of 277.4 million shall be treated as additional paid-in capital;
c. Issuance of trading rights to members in recognition of the existing seat ownership by the
members;
d. Separation of ownership of shares and access to the trading facilities of the exchange. The
trading rights shall be transferable without time limitation; and
e. Imposition of a moratorium on the issuance of the new trading rights.
Pursuant to such demutualization plan, the amendment of the Articles of Incorporation was approved
by the Board of Governors and the members on July 19, 2001 and July 20, 2001, respectively, to
effect the conversion of the Parent Company from a non-stock corporation to a stock corporation
with an authorized capital stock of 36.8 million divided into 36.8 million shares at a par value of 1
per share. As of July 20, 2001, 9.2 million shares were subscribed and paid. The SEC approved
the amended Articles of Incorporation and By-laws on August 3, 2001.
Securities Clearing Corporation of the Philippines (SCCP), a majority-owned subsidiary, started

its commercial operations on January 3, 2000 and was given a temporary license to operate by the
SEC. On January 15, 2002, the SEC approved the SCCP’s request for a permanent license as a
clearing agency subject to its compliance with the requirements of Section 42 of the SRC entitled
“Registration of Clearing Agency”.
The registered office address of the Parent Company is Philippine Stock Exchange Centre,
Exchange Road, Ortigas Center, Pasig City. As of December 31, 2002 and 2001, the Parent
Company and SCCP (the Group) had 147 and 133 employees, respectively.

2. Summary of Significant Accounting Policies
Basis of Preparation and Presentation

The accompanying financial statements have been prepared in accordance with the accounting
principles generally accepted in the Philippines (Philippine GAAP) and under the historical cost
convention. The preparation of financial statements in accordance with Philippine GAAP requires
the Group to make estimates and assumptions that affect the reported amounts of income, expenses,
assets and liabilities. Management believes that actual results will not be materially different from
those estimates.
The consolidated financial statements include the accounts of the Parent Company and its 51%-
owned subsidiary, SCCP, after eliminating significant intercompany balances and transactions.
Adoption of New Accounting Standards

The Group adopted the following Statements of Financial Accounting Standards (SFAS)/
International Accounting Standards (IAS) which became effective in 2002:
a. SFAS 16/IAS 16, Property, Plant and Equipment;

b. SFAS 24/IAS 24, Related Party Disclosures;
c. SFAS 27/IAS 27, Consolidated Financial Statements and Accounting for Investments in
Subsidiaries;
d. SFAS 28/IAS 28, Accounting for Investments in Associates; and
e. SFAS 36/IAS 36, Impairment of Assets.
The adoption of the new standards in 2002 did not result in restatement of prior year financial
statements. Additional disclosures required by the new standards, however, were included in the
prior year financial statements, where applicable.
New Accounting Standards Effective Subsequent to 2002

The Accounting Standards Council has approved the following accounting standards which will be
effective subsequent to 2002:
a. SFAS 10/IAS 10, Events After the Balance Sheet Date, which prescribes the accounting and
disclosure related to adjusting and non-adjusting subsequent events. The Group will adopt
SFAS 10/IAS 10 in 2003 and, based on current circumstances, does not believe the effect of
adoption will be material to the financial statements.
b. SFAS 17/IAS 17, Leases, which prescribes the accounting policies and disclosures applicable
to finance and operating leases. The Group will adopt SFAS 10/IAS 10 in 2003 and, based on
current circumstances, does not believe the effect of adoption will be material to the financial
statements.
c. SFAS 37/IAS 37, Provisions, Contingent Liabilities and Assets, which provides the criteria for
the recognition and bases for measurement of provisions, contingent liabilities and contingent
assets. It also specifies the disclosures that should be included with respect to these items.
The Group will adopt SFAS 37/IAS 37 in 2003 and, based on current circumstances, does not
believe the effect of adoption will be material to the financial statements.

d. SFAS 38/IAS 38, Intangible Assets, which establishes the criteria for the recognition and
measurement of intangible assets. Intangible assets that are recognized should be amortized
generally over 20 years. The new standard also requires that expenditures on research, start-
up, training, advertising and relocation be expensed as incurred. The Group will adopt SFAS
38/IAS 38 in 2003. This will result in a retroactive adjustment to beginning retained earnings
in 2003 of about 13.4 million relating to the write-off of preoperating expenses of SCCP.
Comparative prior period financial statements presented will be restated accordingly.
Cash Equivalents/Short-term Investments

Short-term, highly liquid investments that are readily convertible to known amounts of cash with
original maturities of three months or less and are subject to an insignificant risk of change in value
are classified as cash equivalents, while those with maturities of more than three months to twelve
months are classified separately as short-term investments.
Accounts Receivable
Accounts receivable are stated at face value less allowance for doubtful accounts. Allowance for
doubtful accounts is maintained at a level considered adequate to provide for potential uncollectibility
of the receivables. Management evaluates the level of this allowance based on the factors that
affect the collectibility of the accounts. A review of the age and status of receivables, designed to
identify accounts to be provided with allowance, is made by the Group on a continuing basis.
Equity Investments
Equity investments in companies in which the Parent Company’s percentage of ownership is 20%
or more or where significant influence is exercised are accounted for under the equity method.
Under the equity method, the cost of the investments is increased or decreased by the equity in net
income or losses of the investees since dates of acquisition. Dividends received are treated as a
reduction from the carrying value of such investments.
Property and Equipment

Property and equipment are carried at cost less accumulated depreciation and amortization and
any impairment in value. The initial cost of property and equipment comprises its purchase price
and any directly attributable costs of bringing the asset to its working condition and location for its
intended use. Depreciation is computed using the straight-line method over the estimated useful
life of the asset, as follows:
Years
Buildings 25
Trading system equipment 2
Building improvements 10
Computer hardware and peripherals 2 to 5
Furniture and fixtures 1 to 5
Office and communication equipment 5
Transportation equipment 5
Others 1
The cost of leasehold improvement is amortized over the shorter of the covering lease term or the
estimated useful life of the improvement.

The useful lives and depreciation method are reviewed periodically to ensure that the method and
period of depreciation are consistent with the expected pattern of economic benefits from items of
property and equipment.
Cost of minor repairs and maintenance are charged to expense as incurred; significant renewals
and improvements are capitalized. When assets are retired or otherwise disposed of, the cost and
the related accumulated depreciation and amortization are removed from the accounts and any
resulting gain or loss is credited or charged to current operations.
Impairment of Assets
An assessment is made at each balance sheet date of whether there is any indication of impairment
of an asset, or whether there is any indication that an impairment loss previously recognized for an
asset in prior years may no longer exist or may have decreased. If any such indication exists, the
asset’s recoverable amount is estimated. An asset’s recoverable amount is calculated as the
higher of the asset’s value in use or its net selling price.
An impairment loss is recognized only if the carrying amount of an asset exceeds its recoverable
amount. An impairment loss is charged to operations in the period in which it arises, unless the
asset is carried at a revalued amount, in which case the impairment loss is charged to the revaluation
increment of the said asset.
A previously recognized impairment loss is reversed only if there has been a change in the estimates
used to determine the recoverable amount of an asset, but not to an amount higher than the
carrying amount that would have been determined (net of any depreciation) had no impairment
loss been recognized for the asset in prior years.
A reversal of an impairment loss is credited to current operations, unless the asset is carried at a
revalued amount, in which case the reversal of the impairment loss is credited to the revaluation
increment of the said asset.
Preoperating Expenses
Expenses incurred by SCCP prior to the start of its commercial operations have been capitalized
and are amortized over a period of five years.
Related Parties
Parties are considered to be related if one party has the ability, directly or indirectly, to control the
other party or exercise significant influence over the other party in making financial and operating
decisions. Parties are also considered to be related if they are subject to common control or
common significant influence. Related parties may be individual or corporate entities. Transactions
between related parties are based on terms similar to those offered to non-related parties.
Revenue Recognition
Revenue is recognized on the following bases:
a. Membership fees and interest income are recognized on a time proportion basis;
b. Listing, processing, data feed and service income are recognized when services are rendered;
and
c. Other income is recognized on an accrual basis.

Revenue is recognized to the extent that it is probable that the economic benefits will flow to the
Group and the revenue can be reasonably measured.
Foreign Exchange Transactions

Foreign currency denominated assets and liabilities are translated using the Philippine Dealing
System weighted average rate prevailing at balance sheet date. Foreign exchange gains or losses
arising from foreign currency transactions and revaluation adjustments of foreign currency assets
and liabilities are credited or charged to current operations.
Income Taxes
Deferred tax assets and liabilities are recognized for the future tax consequences attributable to
the difference between the financial reporting bases of assets and liabilities and their related tax
bases and for the carryforward benefits of the excess of minimum corporate income tax (MCIT)
over regular corporate income tax and net operating loss carryover (NOLCO). Deferred tax
assets and liabilities are measured using the tax rates applicable to taxable income in the years in
which those temporary differences are expected to be recovered or settled, and MCIT and NOLCO
are expected to be recovered or applied. A valuation allowance is provided for the portion of the
deferred tax assets which is not expected to be realized in the future.
Retirement Expense
The Parent Company’s retirement expense is actuarially determined using the projected unit credit
method. This method reflects the services rendered by employees to the date of valuation and
incorporates assumptions concerning employees’ projected salaries. Unrecognized experience
adjustments and past service costs are amortized over the expected average remaining working
life of the employees.
Actuarial gains and losses (if in excess of 10% of the present value of accrued benefit liability) are
recognized over the expected average remaining working life of the employees.
SCCP provides for estimated retirement benefits required to be paid under RA No. 7641 to all
employees. Normal cost is charged to current operations while past service cost is amortized over
the average remaining working life of employees.
3. Cash and Cash Equivalents
This account consists of:

2002 2001 2002 2001
Cash on hand and in banks P
=19,493,923 P
=25,858,822 P
=19,349,006 P
=25,556,779
Short-term investments 11,654,652 15,014,565 5,654,652 9,014,565
P
=31,148,575 P
=40,873,387 =25,003,658 P
P =34,571,344

4. Accounts Receivable
This account consists of receivables from:

2002 2001 2002 2001
Members P
=17,399,913 P
=9,207,364 P
=17,332,376 P
=9,095,781
Listed companies 8,549,833 4,938,335 8,549,833 4,938,335
Data vendors 7,515,005 7,821,557 7,515,005 7,821,557
Others 7,420,446 4,442,165 7,987,771 4,546,502
40,885,197 26,409,421 41,384,985 26,402,175
Less allowance for probable losses 15,627,317 10,603,060 15,627,317 10,603,060
P
=25,257,880 P
=15,806,361 P
=25,757,668 P
=15,799,115
Under the Parent Company’s rule, all trading rights are pledged at its full value to secure the
payment of debts due to the Parent Company and other members of the Exchange arising out of
or in connection with the present or future members’ contracts. Based on the latest transaction in
2002, the market value of a trading right amounted to 12.0 million.
On September 25, 2002, the Parent Company’s Board of Directors (BOD) approved the loan
assistance program to members via a term loan of 0.5 million per member for a period of six
months at a rate equivalent to that of the 91-day treasury bills prevailing at the time of the grant of
the loan, subject to the availability of funds. The loans are secured by a pledge of 10,000 shares of
stock of the Parent Company. As of December 31, 2002, the total amount of loans extended to
members amounted to 9.5 million.
5. Other Current Assets

2002 2001 2002 2001
Deferred tax assets - net
(see Note 18) P
=9,526,553 P
=8,188,011 P
=8,388,573 P
=7,204,843
Accrued interest receivable 4,312,409 8,111,717 4,267,969 7,880,605
Others 2,214,764 7,805,906 2,189,967 7,793,315
P
=16,053,726 P
=24,105,634 P
=14,846,509 P
=22,878,763
Accrued interest receivable pertains to uncollected interest on short-term money market

placements and long-term investments.

6. Equity Investments
This account consists of: Group Parent Company

2002 2001 2002 2001
Acquisition cost:
Philippine Central Depository, Inc.
(PCDI) (30%-owned) P
=75,000,000 P
=75,000,000 P
=75,000,000 P
=75,000,000
SCCP (51%-owned) – – 25,500,000 25,500,000
75,000,000 75,000,000 100,500,000 100,500,000
Accumulated equity in net loss:
Balance at beginning of year (16,771,253) (4,428,633) (28,598,891) (9,918,777)
Equity in net loss for the year (4,042,393) (12,342,620) (8,696,864) (18,680,114)
Balance at end of year (20,813,646) (16,771,253) (37,295,755) (28,598,891)
54,186,354 58,228,747 63,204,245 71,901,109
PCDI redeemable preferred shares 4,294,000 4,294,000 4,294,000 4,294,000
P
=58,480,354 P
=62,522,747 P
=67,498,245 P
=76,195,109
The PCDI redeemable preferred shares have the following features:
a. entitled to cumulative dividends from date of issuance equivalent to eight percent (8%) of the
par value;
b. redeemable at par value together with all accrued and unpaid dividends at the option of the
holder beginning on the third anniversary until the fifth anniversary from the date of incorporation;
c. convertible into common shares on the basis of one common share for every two preferred
shares owned at the option of the holder beginning on the third anniversary from the date of
incorporation;
d. transferable only after being converted into common shares;
e. entitled to vote collectively for one member of the PCDI’s BOD; and
f. entitled to full payment at par value, upon the dissolution of the PCDI prior to the payment of
any amount on the common shares.
On September 25, 2002, the Parent Company’s BOD authorized the acquisition of a clearing and
settlement system for US$0.8 million. The BOD further authorized the purchase of the shares of
the minority interest in SCCP totaling 49% by exchanging and swapping such number of shares
owned by the Parent Company in PCDI at fair value and without requiring cash outlay on the part
of the Parent Company. In the event that the purchase of the shares of SCCP is not consummated,
then the Parent Company may lease the clearing and settlement system to SCCP or operate it
directly.

7. Long-term Investments
Long-term investments consist of small denominated treasury bonds, retail treasury bonds and
fixed rate treasury notes totaling 245.5 million and 10.0 million in 2002 and 2001, respectively, and
US dollar denominated bonds amounting to US$1.7 million in 2002. These bonds will mature on
various dates starting August 1, 2004.
Net realizable value of 339.8 million exceeds carrying value (at amortized cost) of 333.4 million
as of December 31, 2002.
8. Property and Equipment
Group
Cost
2001 Additions Disposals 2002
Buildings =
P224,895,034 =P– P
=– P
=224,895,034
Trading system equipment 155,225,659 2,446,216 – 157,671,875
Building improvements 113,548,696 49,953 – 113,598,649
Computer hardware and peripherals 73,757,642 8,697,175 636,259 81,818,558
Furniture and fixtures 40,862,172 236,117 – 41,098,289
Office and communication
equipment 7,948,503 392,277 – 8,340,780
Transportation equipment 6,343,364 1,622,545 48,091 7,917,818
Leasehold improvements 3,627,522 – – 3,627,522
Others 1,531,566 11,116 – 1,542,682
=
P627,740,158 P
=13,455,399 P
=684,350 P
=640,511,207
Accumulated Depreciation and Amortization

Depreciation and
2001 Amortization Disposals 2002
Buildings =
P63,019,444 =
P8,995,801 P
=– P
=72,015,245
Building improvements 77,659,089 11,356,115 – 89,015,204
equipment 7,176,893 509,830 – 7,686,723
Transportation equipment 4,850,290 766,952 48,091 5,569,151
Leasehold improvements 3,625,595 1,914 – 3,627,509
Others 1,153,849 4,136 – 1,157,985
=
P413,365,270 P
=34,753,784 P
=684,350 P
=447,434,704

Net Book Value
2001 2002
Buildings P
=161,875,590 P
=152,879,789
Trading system equipment 3,574,532 3,369,909
Building improvements 35,889,607 24,583,445
Computer hardware and peripherals 10,220,488 8,587,579
Furniture and fixtures 170,343 268,347
Office and communication equipment 771,610 654,057
Transportation equipment 1,493,074 2,348,667
Leasehold improvements 1,927 13
Others 377,717 384,697
214,374,888 193,076,503
Donated shares in a condominium corporation 155,690,154 155,690,154
=
P370,065,042 P
=348,766,657
Parent Company
Cost
2001 Additions Disposals 2002
Buildings =
P224,895,034 =
P– =
P– P
=224,895,034
Building improvements 113,548,696 49,953 – 113,598,649
equipment 7,948,503 392,277 – 8,340,780
Transportation equipment 5,408,364 1,622,545 48,091 6,982,818
Others 1,531,566 11,116 – 1,542,682
=614,679,848
P P
=13,455,399 P
=684,350 P
=627,450,897
Accumulated Depreciation and Amortization

Depreciation and
2001 Amortization Disposals 2002
Buildings =
P63,019,444 P
=8,995,801 =
P– P
=72,015,245
Building improvements 77,659,089 11,356,115 – 89,015,204
equipment 7,176,893 509,830 – 7,686,723
Transportation equipment 4,195,791 579,952 48,091 4,727,652
Others 1,153,849 4,136 – 1,157,985
=
P401,366,765 P
=33,958,162 =
P684,350 P=434,640,577

Net Book Value
2001 2002
Buildings P
=161,875,590 P
=152,879,789
Trading system equipment 3,574,532 3,369,909
Building improvements 35,889,607 24,583,445
Computer hardware and peripherals 9,537,956 8,451,174
Furniture and fixtures 73,498 232,083
Office and communication equipment 771,610 654,057
Transportation equipment 1,212,573 2,255,166
Others 377,717 384,697
213,313,083 192,810,320
Donated shares in a condominium corporation 155,690,154 155,690,154
=
P369,003,237 P
=348,500,474
Buildings represent the donations of Philippine Realty and Holdings Corporation (PRHC) and
Ayala Land, Inc. (ALI) and a condominium unit at the PSE Centre in Pasig City purchased at
5.2 million.
The PRHC donation is comprised of the Parent Company’s offices at the PSE Centre in Pasig
City which exclusively house the following: a) trading floors; b) board room; c) executive offices;
d) training and education center; and e) research, administrative and accounting offices, library
and central files. Such offices were donated by PRHC on September 29, 1993 but were formally
turned over to the Parent Company on December 31, 1994 at a value of 139.5 million (see Note 13).
As provided in the Deed of Donation between PRHC and the Parent Company, the latter shall use
the offices exclusively for its stock exchange and stock trading operations for a period of at least
10 years from the date of its occupancy of said offices. However, should the Parent Company fail
to locate their trading floor at the donated property, this shall revert to PRHC without need of any
further act or deed. However, if within the 10-year period, the Parent Company’s stock trading
activities shall be conducted off-floor, the trading floor established in the condominium units or
portions thereof may, at the Parent Company’s option and sole cost, be converted into additional
offices for its exclusive use.
On August 25, 1993, ALI donated to the Parent Company the sum of 80.0 million (30.0 million of
which, was made through a transfer of rights by the Makati Stock Exchange) to cover the cost of
construction of the unit at the Philippine Stock Exchange (PSE) Plaza in Ayala Avenue, Makati
City and its appurtenant parking slots, and condominium shares valued at 155.7 million (see Note
13).
The deed of donation provides that the units at the PSE Plaza will house one of the trading floors
of the Parent Company, the central clearing and depository and a number of parking lots. In
addition, the donee shall use the units for a period of at least 10 years from the date of the donee’s
occupancy of the said units.
ALI established a stock condominium corporation, the Tower One and Exchange Plaza Condominium
Corporation, for the purpose of holding title to the parcel of land where the condominium is located
and the common areas of the condominium. The donated condominium shares represent the
Parent Company’s share in the said condominium corporation.

On November 12, 2002, the representatives of the Parent Company and the Fort Bonifacio
Development Corporation (FBDC) signed the definitive agreement implementing the terms and
conditions for the relocation of the Parent Company to the Bonifacio Global City, which is in
relation to the allocation by FBDC of the required space and building facilities that will house the
Parent Company’s headquarters, majority of its management offices and its unified trading
operations in equity securities for the National Capital Region. The relocation remains subject to
the execution of such deeds calling for the donation of the required facilities.
9. Other Assets

2002 2001 2002 2001
Deposit in bank P
=82,433,668 =106,366,023
P =82,433,668 =
P P106,366,023
Preoperating expenses - net 13,405,961 20,108,942 – –
Advances to members related to
Credit Ring Agreement Fund
(see Note 12) 10,000,000 10,000,000 10,000,000 10,000,000
Club membership - net of allowance
for market decline of =
P2,428,000
in 2002 650,000 3,078,000 650,000 3,078,000
Others 72,768 54,986 72,768 54,986
P
=106,562,397 =139,607,951
P P
=93,156,436 =
P119,499,009
Deposit in bank represents matured investments with a local bank which declared a bank holiday
on April 25, 2000 and was subsequently placed under receivership. The bank’s rehabilitation plan,
including its proposed merger with another bank, was approved by the Bangko Sentral ng Pilipinas
on July 12, 2001. The proposed merger was approved by the SEC on January 31, 2002.
Under the options made available to bank depositors as provided for in the rehabilitation plan, the
Parent Company’s deposit with the said bank shall be repaid and serviced as follows:
a. Partial payment of 0.5 million within 30 days from date of opening, less 0.1 million previously
paid by Philippine Deposit Insurance Corporation (PDIC);
b. Remaining balance shall be paid as follows:
• 75% shall be paid in three (3) years at 6% per annum as per schedule:
- 1st year end - 30%
- 2nd year end - 30%
- 3rd year end - 40%

• 25% shall be paid in equal yearly installments for three (3) years at 7% per annum, net of
withholding tax as follows:
- 4th year end - 33%
The foregoing repayment plan was approved by the Parent Company’s BOD on August 8, 2001.
As of December 31, 2002, payments to the Parent Company amounting to 24.4 million were made
in accordance with the foregoing plan.
10. Accounts Payable, Accrued Expenses and Other Current Liabilities

2002 2001 2002 2001
Accrued expenses P
=16,244,866 P
=21,329,145 P
=11,196,393 P
=16,495,963
Accounts payable 8,149,721 10,543,244 8,705,138 10,175,613
Due to SEC 6,447,674 16,188,947 6,447,674 16,188,947
Others 9,441,711 5,109,125 9,092,415 5,109,126
P
=40,283,972 P
=53,170,461 P
=35,441,620 P
=47,969,649
The amount due to SEC represents license fees to operate an exchange imposed under
Section 35 of the SRC.
11. Clearing and Trade Guaranty Fund

2002 2001
Principal contribution from:
Members
Balance at beginning of year P
=91,349,748 P
=88,728,147
Contributions 1,527,255 2,621,601
Parent Company 80,000,000 80,000,000
172,877,003 171,349,748
Accumulated interest income
Balance at beginning of year 34,690,523 17,875,682
Interest income 14,351,600 16,814,841
P
=221,919,126 P
=206,040,271
The Clearing and Trade Guaranty Fund (CTGF) is a credit management tool designed to protect
the market against temporary illiquidity, insolvency and/or bankruptcy of clearing brokers.

In order for SCCP to effectively implement its Fails Management and Buy-in/ Sell-out functions,
the CTGF must be adequate to cover the unsettled trades of any broker on any trading day. On
December 7, 1999, the SEC directed the Parent Company to allocate a portion of its income as a
trade guarantee expense to hasten the build up of the CTGF.
As of December 31, 2002 and 2001, the assets of the CTGF (included under Investments of
Credit Trade and Guaranty Fund account in the consolidated balance sheets) consist of:
2002 2001
Investments in government securities P
=212,847,382 P
=200,810,300
Accrued interest receivable 8,774,576 5,125,634
Accounts receivable 297,168 104,337
P
=221,919,126 P
=206,040,271
The CTGF shall be invested as follows:
a. Deposits in universal banks wholly or partially insured by the PDIC;
b. Securities issued or guaranteed by the Republic of the Philippines;
c. Such other investments as the SCCP’s BOD may approve taking into consideration the liquidity
requirements of the clearing fund.
Any proceeds from the CTGF shall not be used for any purpose other than for:
a. Payment of the net money obligations of a defaulting buying member in order to settle a failed
trade;
b. Buy-in of relevant securities due from a defaulting selling member in order to settle a failed
trade;
c. The satisfaction of losses, liabilities and expenses of SCCP incidental to the operation of its
clearing and settlement functions and the management of the CTGF;
d. Payment of premium on any insurance policy taken for the CTGF; and
e. The liquidation of contributions as may be determined by the BOD of SCCP.
On January 28, 2003, the BOD of SCCP approved the amendment of its rules on CTGF providing
for the non-recourse of all CTGF contributions to members.
12. Credit Ring Agreement Fund
On January 29, 2001, the SEC approved SCCP’s request that all clearing members whose net
negative exposure amounting to 1.0 million or below be exempted from the daily collateral
collection being required by SCCP. The said request was made to improve the efficiency of
SCCP’s mark-to-market collateral deposit system. The said approval is subject to the following
conditions:

a. SCCP, via a one-time contribution by the clearing members or by the Parent Company on
behalf of its members who are also the clearing members, shall set aside the amount of
10.0 million for the sole purpose of covering the aggregate net negative exposures of all clearing
members whose computed individual exposure amounts to 1.0 million and below;
b. A credit ring agreement, to be participated in and signed by all SCCP clearing members, shall
be organized. A credit ring agreement is a scheme wherein the participating members agree
to pay up, pro rata, the deficit between the total net negative exposures of failing brokers and
the amount of 10.0 million special fund;
c. The size of the fund shall be reviewed quarterly by SCCP for resizing; and
d. SCCP shall promptly make the necessary amendments to existing rules and operating
procedures to reflect the necessary changes.
In connection with the above conditions, the Parent Company advanced, on behalf of its
members, 10.0 million to a special fund set up by SCCP relative to the credit ring agreement
described above. The said fund was invested by SCCP in short-term money market
placements.
13. Donated Capital
This consists of donations from:

2002 2001
ALI P
=235,690,154 P
=235,690,154
PRHC 139,542,000 139,542,000
USAID 1,925,250 1,925,250
P
=377,157,404 P
=377,157,404
14. Compensation and Other Related Staff Expenses

2002 2001 2002 2001
Salaries and wages P
=48,429,860 P
=43,689,391 P
=46,513,722 P
=41,736,880
Retirement expense (see Note 15) 901,938 3,598,335 418,149 1,911,935
Other employee benefits 13,434,427 14,188,187 13,105,901 13,440,248
P
=62,766,225 P
=61,475,913 P
=60,037,772 P
=57,089,063

15. Retirement Plan
The Parent Company has a funded, noncontributory defined benefit retirement plan covering all its
regular employees. The benefits are consolidated based on years of service and compensation
per year of credited service. The Parent Company’s annual contribution to the retirement plan
consists of a payment covering the current service cost plus a payment toward funding the actuarial
accrued liability.
Actuarial valuation is made at least every three years. As of September 30, 2001, the latest date
of the actuarial valuation, the actuarial present value of retirement benefits amounted to
12.4 million while the fair value of the plan assets amounted to 16.1 million. As of
September 30, 2001, the net asset value of the plan exceeded actuarial retirement benefits by
3.7 million. Retirement expense in 2002 and 2001 amounted to 0.4 million and 1.9 million, respectively.
The principal actuarial assumptions used to determine retirement benefits were 10% discount
rate, salary increases and return on plan assets.
The Parent Company’s retirement fund is being managed by a local bank.
SCCP provides for estimated retirement benefits required to be paid under RA No. 7641 to all its
employees, totaling eight, pending implementation of a formal retirement plan. Retirement expense,
computed using the current monthly salary rate and number of years of employment with SCCP,
amounted to 0.5 million and 1.7 million in 2002 and 2001, respectively. SCCP management believes
that since the Company started operations only in 2000, the accrued retirement expense under an
actuarially computed retirement plan will not be materially different from the accrued estimated
retirement expense recognized in the financial statements.
16. Occupancy Costs

2002 2001 2002 2001
Utilities P
=15,613,875 P
=13,746,441 P
=15,379,511 P
=13,448,041
Condominium dues 8,963,840 8,017,838 8,963,840 8,017,838
Security and janitorial services 7,297,672 6,046,916 7,297,672 6,046,916
Repairs and maintenance 3,724,171 3,288,958 3,724,171 3,236,797
P
=35,599,558 P
=31,100,153 P
=35,365,194 P
=30,749,592

17. Non-Operating Income
The components of non-operating income are summarized below:

2002 2001 2002 2001
Interest income - net of interest
expense of P=647,940 in 2001 P
=45,699,821 P
=44,833,363 P
=45,100,860 P
=43,719,198
Foreign exchange gain - net 4,060,984 991,861 4,060,984 991,860
Equity in net losses (see Note 6) (4,042,393) (12,342,620) (8,696,864) (18,680,114)
Provision for decline in value of club
membership (see Note 9) (2,428,000) – (2,428,000) –
Reversal of provision for probable
losses on money market
placement with a rehabilitated
bank (see Note 9) – 26,577,785 – 26,577,785
Demutualization expense – (4,600,768) – (4,600,768)
Others 6,365,298 – 6,365,298 –
P
=49,655,710 P
=55,459,621 P
=44,402,278 P
=48,007,961
18. Income Taxes
The provision for income tax consists of:

2002 2001 2002 2001
Final P
=9,089,200 P
=9,077,329 P
=8,969,408 P
=8,854,496
Current 2,632,290 1,696,393 2,632,290 1,696,393
Deferred (1,338,542) 1,286,980 (1,183,730) 1,826,628
P
=10,382,948 P
=12,060,702 P
=10,417,968 P
=12,377,517
The components of net deferred tax assets (included under the Other Current Assets account in
the balance sheets) are as follows:
2002 2001 2002 2001
Deferred tax assets (liability) on:
NOLCO P
=10,227,766 P
=8,546,087 P
=– P
=1,286,835
Allowance for probable losses 5,000,741 3,392,979 5,000,741 3,392,979
MCIT 3,377,419 1,696,393 3,377,419 1,696,393
Unfunded retirement costs 1,271,788 983,168 133,808 –
Unrealized foreign exchange gain -
net (919,895) – (919,895) –
Unamortized past service costs 796,500 828,636 796,500 828,636
19,754,319 15,447,263 8,388,573 7,204,843
Less valuation allowance 10,227,766 7,259,252 – –
P
=9,526,553 P
=8,188,011 P
=8,388,573 P
=7,204,843

Details of NOLCO of the Parent Company and SCCP follow:
Year Incurred Amount Used Balance Expiry Date

Parent Company
2001 P
=4,021,359 P
=4,021,359 =
P– 2004
SCCP
2000 10,514,125 – 10,514,125 2003
2001 12,171,039 – 12,171,039 2004
2002 9,276,606 – 9,276,606 2005
31,961,770 – 31,961,770
P
=35,983,129 P
=4,021,359 P
=31,961,770
A full allowance on the related tax effect of SCCP’s NOLCO has been set up as management
believes that there may be no future benefit on such asset.
The reconciliation of the statutory income tax rate to the effective income tax rate follows:
2002 2001 2002 2001
Statutory income tax rate 32.00% 32.00% 32.00% 32.00%
Tax effects of:
Interest income subjected to final tax (13.99) (18.04) (14.13) (17.42)
Valuation allowance on NOLCO 7.74 12.83 – –
Minority interest in net loss
a subsidiary (3.73) (6.42) – –
Equity in net loss of an affiliate 3.37 13.01 7.25 19.49
Nondeductible expenses 1.69 6.35 2.02 6.29
Effective income tax rate 27.08% 39.73% 27.14% 40.36%
19. Related Party Transactions
In the normal course of business, the Group enters into transactions with related parties. A sum-
mary of the related party transactions follows:
2002 2001
PCDI
Accounts receivable P
=31,800 P
=306,978
Other income – 186,000
Members
Accounts receivable - net of allowance for
probable losses of P=4,437,910 in 2002 12,962,003 9,207,364
Membership fees 8,724,480 20,479,985
20. Contingencies
The Parent Company is contingently liable for lawsuits or claims filed by third parties, which deci-
sions are either pending in the courts or under negotiation, the ultimate outcomes of which are not
resently determinable. In the opinion of management and its legal counsel, the eventual liability under
these lawsuits or claims, if any, will not have a material effect on the consolidated financial state-
ments.

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Our Vision

A peer among the premier stock exchanges in the region.

Maximize value of shareholders with optimal services to all stakeholders.

Develop world-class trading and settlement infrastructure and information system.

Develop new products and services.

Our Corporate Values

Table of Contents Chairperson’s Statement 1

Albeit my term as your chairperson is nearing its end and de-

Allow me to go back to the list of programs that we have suc-

THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 1

2 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

estry compensating for slower increase in agriculture and fishery.

4 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

Table 4. ANNUAL TRADING VALUE OF SELECTED EXCHANGES

lowest at US$ 3.1 billion. Most ro-

THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 5

Trading in Small Denominated Treasury

in operations at PSE and extended

6 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 7

Listings and Disclosures

8 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

Amendments to Rule on Additional Listing of Shares

Knowledge Enhancement and Dissemination

PSE website was enhanced to contain the following:

Compliance and Surveillance

THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 9

Trading and Settlement

Delivery Versus Payment (DVP)

Table 11. SETTLEMENT FAILS

Security Fail Cash Fail

10 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

Acquisition of a Clearing and Settlement System

Risk Management Table 13. CLEARING AND TRADE GUARANTY FUND

Clearing and Trade Guaranty Year Active Million Pesos

Securities Borrowing and Lending (SBL) Facility for Settlement Purposes

Infrastructure Development and Operations

THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 11

Dollar-Denominated Trading (DDT) Facility

Partnerships with Government and other Market Players

12 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

Education and Social Commitment

PSE Foundation remained the principal instrument for ex-

THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 13

1994 1995 1996 1997 1998 1999 2000 2001 2002

VALUE OF MEMBERSHIP/ 45 80 75 71 30 28 25 25 * 12.05 **

14 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002

Table 15. CAPITAL OF ACTIVE TRADING PARTICIPANTS

NO. OF TRADING PARTICIPANTS

100 and above 11 20 12 11 11 7

TOTAL ACTIVE TRADING 128 30 127 17 125 12

B. TOTAL RESOURCES (Million Pesos)

PAID-UP CAPITAL 9,173.3 7,159.0 6,343.4

TOTAL ASSETS 18,218.9 10,606.4 8,862.7

TOTAL LIABILITIES 9,675.7 5,178.7 3,722.8

NET WORTH 8,543.2 5,427.7 5,139.9

NET INCOME (834.4) (1,068.5) (276.6)

THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002 15

2001 2002 KEY FUNCTIONS

16 THE PHILIPPINE STOCK EXCHANGEANNUALREPORT2002