Amended Annual Report for the year ended 31 December 2011 (17-A)

I-Remit currently operates in 24 countries and territories worldwide.
Lucky Star Management Limited, the first international office of I-Remit, opened in Hong Kong
in May 2001. In the same year, I-Remit started its aggressive global expansion by forging
alliances in other countries with high concentrations of overseas Filipino workers (OFWs) and
Filipino migrants. In July 2001, I-Remit forged a tie-up with its Canadian partner International
Remittance (Canada) Limited (IRCL), and established operations in three (3) major provinces
of Canada: British Columbia, Alberta, and Ontario. In 2005, I-Remit acquired 65% ownership
in the said company, and which was subsequently increased to 95% in 2006, and further
consolidated to 100% by the end of June 2007. Also, in July 2001, I-Remit entered into its first
European partnership in the United Kingdom (UK), and eventually started the operation of its
subsidiary, IRemit Global Remittance Limited, in January 2003. It was sold by the Company in
2004 and was repurchased in June 2007. iRemit’s expansion in Europe is in pursuit of the
authorization obtained from the Financial Services Authority of the United Kingdom by its
wholly-owned subsidiary, IRemit Global Remittance Limited to operate as a payment institution
in the European Economic Area (EEA). Under the European Payment Services Directive,
IRemit Global Remittance Limited may avail of its “passporting” rights and carry on its business
activities in other EEA states by establishing branches, engaging agents, or providing crossborder
services. I-Remit started its second Asian operation in Singapore through IRemit
Singapore Pte Ltd, which commenced its commercial operations in October 2001. I-Remit
acquired 49% ownership in the said company in June 2007. I-Remit further expanded in Asia
through a tie-up in Taiwan, Hwa Kung Hong & Co., Ltd., which became operational in 2001. I-
Remit acquired 49% ownership in the said tie-up in July 2009. I-Remit forged a tie-up in
Australia that began its operations in September 2002. I-Remit Australia Pty Ltd (“IAPL”) was
incorporated in December 2002 and in June 2007 ownership has been consolidated to 100%.
Worldwide Exchange Pty Ltd (“WEPL”) in Australia started commercial operations in
September 2003. The Company acquired 20% ownership of WEPL in June 2007 and
additional 15% ownership in September 2007. On March 31, 2011, I-Remit acquired the 35%
interest of minority shareholders in WEPL. With its 30% indirect voting interest through IAPL, I-
Remit effectively owns 100.00% of WEPL. On July 25, 2007, the Financial Monetary Authority
of Austria granted the remittance license of IREMIT EUROPE Remittance Consulting AG in
which the Company has 74.9% equity interest. It started commercial operations on September
16, 2007. In November 2009, IREMIT EUROPE Remittance Consulting AG was registered by
Banca D’Italia Eurosistema in the general list of financial intermediaries as a provider of money
transfer services under Article 106 of the legislative decree 385/1993 of Italy’s Banking Law.
On May 5, 2011, the Parent Company acquired the 25.10% ownership interest in IREMIT
EUROPE Remittance Consulting AG from the noncontrolling stockholder. The acquisition
increased the Parent Company’s ownership interest in IREMIT EUROPE Remittance
Consulting AG to 100.0% from 74.9%. Consequently, on October 11, 2011, IREMIT EUROPE
Remittance Consulting AG changed its legal name to IREMIT Remittance
Consulting GmbH and changed its legal status from a stock company to a limited
liability company. It also amended its Articles of Incorporation to include management
consultancy in its business activities. I-Remit New Zealand Limited, a wholly-owned subsidiary
was incorporated and its registration was approved by the New Zealand Ministry of Economic
Development on September 11, 2007. It started commercial operations on February 13, 2008.
On November 28, 2008, I-Remit’s Board of Directors (“Board”) ratified the acquisition of the
100.00% ownership interest in Power Star Asia Group Limited, a company based in Hong
Kong which is engaged in foreign currency trading. On January 9, 2009, the Board of I-Remit
authorized the acquisition of up to 49% of the outstanding capital stock of Hwa Kung Hong &
Co., Ltd., a company engaged in the remittance business in Taiwan with offices in Taipei and
Kaohsiung. The acquisition of the shares was completed on July 1, 2009.
The Company’s presence in various countries hosting overseas Filipino workers (OFWs) and
Filipino migrants and several strategic partnerships and tie-ups with various local and
international banks, pawnshops, couriers, and telecommunications companies makes it the
largest independent local remittance company.
The Company was also the first remittance company registered with the Board of Investments
(BOI) as a New Information Technology (IT) Service Firm in the Field of Information
Technology Services (Remittance Infrastructure System) on a Non-Pioneer Status under the
Omnibus Investments Code of 1987 which entitled the Company to Income Tax Holiday (ITH)
Incentive for four (4) years and which was later extended to two (2) years and which expired
on November 11, 2007.
2