Via ODiSy March 22, 2012 PHILIPPINE STOCK EXCHANGE ... - BDO

- 92 -The BDO Unibank Group’s subsidiaries and associates are all incorporated in thePhilippines, 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 BDOUnibank Group’s associates as of and for the years ended December 31, 2011, 2010 and2009:2011 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 BDOUnibank Group's subsidiaries amounted to P411 and P791, respectively. These arepresented as part of Dividend income under Other Operating Income in the ParentBank statements of income (see Note 22). Out of the total dividends declared, theParent Bank received P95 and P102 in 2011 and 2010, respectively.13.01.02 Mergers Among SubsidiariesOn April 30, 2011, the Parent Bank’s BOD approved the five-way merger (the Merger)of wholly-owned subsidiaries: BDOSHI, Equitable Card Network (ECN), Inc., ESHC,BDO Technology, and Strategic Property Holdings, Inc. (SPHI), with BDOSHI as thesurviving corporation. The Merger has been undertaken as part of the streamlining ofthe BDO Unibank Group’s organizational structure. The Merger was approved by theBSP and the SEC on November 29, 2011 and December 29, 2011, respectively, and wasaccounted for using the pooling-of-interests method. The Parent Bank’s investment inits subsidiaries did not increase as a result of this exercise except for the following:(a) dacion en pago of 3,621,159 preferred shares and 2,000,001 common shares ofBDOSHI held by ESHC for the P557 advances from the Parent Bank (presented aspart of Advances to subsidiaries under Other Resources in the 2010 statement offinancial position), and (b) subscription of additional 40,231,915 preferred shares ofBDOSHI through conversion of advances to BDOSHI and ESHC totalingP2,626 (recognized as part of Advances to subsidiaries under Other Resources in the2010 statement of financial position) and advances to SPHI amounting toP1,397 (recognized as part of Accounts receivable under Loans and Receivables in the2010 statement of financial position) (see Notes 10 and 26).