2011 Annual Report Financial Supplements - BDO

The BDO Unibank Group’s subsidiaries and associates are all incorporated in the Philippines,except for the following:SubsidiariesPCI Express Padala (HK) Ltd.Express Padala HK Ltd.BDO Remittance (USA), Inc.Express Padala Frankfurt GmbHPCIB Europe, S.P.AEquitable PCI Express Padala (Nederland) B.V.Country of IncorporationHong KongHong KongUnited States of AmericaGermanyItalythe NetherlandsThe following table presents the aggregated unaudited financial information of BDO UnibankGroup’s associates as of and for the years ended December 31, 2011, 2010 and 2009:2011 2010 2009Assets P 23,932 P 22,819 P 3,941Liabilities 12,313 11,890 799Equity 11,619 10,929 3,142Revenues 7,138 8,101 ( 9)Net profit (loss) 2,329 1,750 ( 352 )13.01.01 Dividend DeclarationsIn 2011 and 2010, the Parent Bank’s share in the cash dividends declared by BDO UnibankGroup's subsidiaries amounted to P411 and P791, respectively. These are presented as part ofDividend income under Other Operating Income in the Parent Bank statements of income(see Note 22). Out of the total dividends declared, the Parent Bank received P95 and P102 in2011 and 2010, respectively.13.01.02 Mergers Among SubsidiariesOn April 30, 2011, the Parent Bank’s BOD approved the five-way merger (the Merger) ofwholly-owned subsidiaries: BDOSHI, Equitable Card Network (ECN), Inc., ESHC, BDOTechnology, and Strategic Property Holdings, Inc. (SPHI), with BDOSHI as the survivingcorporation. The Merger has been undertaken as part of the streamlining of the BDOUnibank Group’s organizational structure. The Merger was approved by the BSP and theSEC on November 29, 2011 and December 29, 2011, respectively, and was accounted forusing the pooling-of-interests method. The Parent Bank’s investment in its subsidiaries didnot increase as a result of this exercise except for the following: (a) dacion en pago of3,621,159 preferred shares and 2,000,001 common shares of BDOSHI by ESHC for the P557advances from the Parent Bank presented as part of Advances to subsidiaries under OtherResources in 2010 statement of position, and (b) subscription of additional 40,231,915preferred shares of BDOSHI through conversion of advances of BDOSHI and ESHCtotaling P2,626 (recognized as part of Advances to subsidiaries under Other Resources in2010 statement of position) and advances of SPHI amounting to P1,397 (recognized as partof Accounts receivable under Loans and Receivables in 2010 statement of position )(see Notes 10 and 26).www.bdo.com.ph 105