THE INDUSTRY, over 2009 VOICE BPO 344, , NON-VOICE BPO/KPO 136, , IT 44,

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1 THE INDUSTRY, 2010 FTEs % Change over 2009 Revenue (Million EUR) % Change over 2009 VOICE BPO 344, , NON-VOICE BPO/KPO 136, , IT 44, TOTAL 525, , Between , 2010, FTEs grew by 22% annually. Revenues by 29.5% annually. Non-Voice BPO/KPO includes Transcription, Engineering Services, Animation and Game Development. The fastest growing segment. PHL at par, if not bigger, than India in Voice FTEs. Far second to India in Non-Voice and IT. PHL potential in Non-Voice and IT is high. PHILIPPINES INFORMATION TECHNOLOGY & BUSINESS PROCESS OUTSOURCING

2 TARGETS, 2016 PHILIPPINES INFORMATION TECHNOLOGY & BUSINESS PROCESS OUTSOURCING Low-End Baseline Road Map Revenue (Million EUR) 9,452 12,355 15,286 FTEs 680, ,000 1,300,000 Global market for Offshore Services to grow by 13-16%, 16%, To reach EUR Billion by 2016 (percentage of total share)

3 THE PHILIPPINES OFFERS... PHILIPPINES INFORMATION TECHNOLOGY & BUSINESS PROCESS OUTSOURCING VALUE FOR MONEY SERVICES Sales and Customer Support BPO: Finance, Accounting, Payroll, HR Software Development IT Services Transcription, incl. Film Subtitling Games Development Engineering Design Animation KPO: Marketing Research, Legal Case Research and Preparation, Medical Research Insurance, Mortgage AND A DISTINCT ADVANTAGE Strong customer service orientation Multi-cultural adaptability Good language skills World-class telecom/ reliable and redundant connectivity Affordable real estate and diverse locations High degree of trainability and loyalty Familiarity with western systems and processes

4 PHILIPPINES INFORMATION TECHNOLOGY & BUSINESS PROCESS OUTSOURCING PH IT & BPO: A mature Tier-1 1 destination Mexico, Brazil, Colombia, Chile, and Argentina: Evolving rapidly as near-shore base to drive penetration in North America Eastern Europe: Established nearshore destination China: Domestic and APAC-centric scale and capabilities Philippines: Reaching #1 in voice BPO: 330K+ FTEs #2 in non-voice/it-bpo: 200K+ FTEs Egypt, Morocco, and South Africa: Significant government-backed push to target UK and Europe India: Industry leading scale and capabilities Voice BPO: 350K+ FTEs Non-voice/IT-BPO: 1.4M+ FTEs Source: Everest Analysis

5 PHILIPPINES INFORMATION TECHNOLOGY & BUSINESS PROCESS OUTSOURCING COMPETITIVE INVESTMENT INCENTIVES Income Tax Holiday (ITH) for 4 years, extendable to 8 years After the ITH period, special 5% tax on gross income in lieu of all national and local taxes Exemption from duties and taxes on imported capital equipment, spare parts, supplies, and raw materials Domestic sales allowance of up to 30% of total sales Exemption from export taxes, wharfage dues, imposts and fees Exemption from Value Added Tax (VAT) on allowable local purchases such as telecom, power, and water bills Additional deduction of 50% of total manpower training cost under the special 5% gross income tax regime There are 129 IT parks and centres across the country Source: Philippine Economic Zone Authority

6 PHILIPPINES INFORMATION TECHNOLOGY & BUSINESS PROCESS OUTSOURCING COMPETITIVE RATES (in Euro* per month) SALARIES** Financial Analyst Accountant IT/Oracle Technician IT/Oracle Administrator 980 1,310 Legal Counsel 1,310 1,970 Operation Manager 1,800 2,620 Office Administrator 1,970 2,590 MAKATI CITY OFFICE RENT*** (in sqm) Premium Grade A Grade B * PHP 61.00/Euro, Jan-Jul 2011 average ** as of end-december 2010 *** as of end-march 2011

7 PHILIPPINES INFORMATION TECHNOLOGY & BUSINESS PROCESS OUTSOURCING GROWING, COMPETING, SUCCEEDING...

8 EARLY LOCATORS WITH EUROPEAN EQUITY ABB Deutsche Bank Maersk Global Service Center Air France-KLM DHL Global Forwarding McKinsey Alstom Emerson Financial Services Nestle Areva T&D Ericson Philips Electronics & Lighting Astrazeneca Festo Procter & Gamble BASF Glaxosmithkline Roche Bauer Foundations Phils. Inc. Hewitt Associates Sanofi-Aventis BG Philippines Holcim Schenker BNP Paribas HSBC Shell Boehringer Ingelheim ING Bank Standard Chartered Bank BP JP Morgan Chase Steag State Power Chevron Lexmark TNT Express Worldwide Citibank Lufthansa Unilever

9 INDUSTRY SUPPORT

10 TESTIMONIALS FROM P.E.Z.A. - LOCATORS INFORMATION TECHNOLOGY CENTER ASIA Started in 2003 Resources on board: 7 at the start, now 93 Services Offered Why in the Philippines Success Story SAP Enterprise Resource Planning Product lifecycle management software and tools Messaging, Collaboration and application development Project management IT service desk operations Abundance of skilled technical resources including IT Cost competitive compensation Language proficiency Cultural adaptability Support to 38 locations in Asia with 500+ projects in just 8 years.

11 TESTIMONIALS FROM P.E.Z.A. - LOCATORS FRITZ & MACZIOL ASIA INC Started in 2006 Resources on board: 8 at the start, now 45 Services Offered Why in the Philippines Success Story Individual IT solutions for hardware, software and services based on IBM servers and software and VAS Optimised corporate communication services using Lotus Notes/Domino and IBM Websphere technologies Saw potential in the Philippines as a preferred business partner Springboard to penetrate Singapore and other Asian markets The best talent pool Trustworthy business partners Fritz & Macziol is now a Tier 1 IBM Software Partner, and a SAP Services Partner in just 5 years.

12 TESTIMONIALS FROM P.E.Z.A. - LOCATORS PAYMENT PROCESSING CORPORATION Started in 2003 Resources on board: 15 at the start, now 140 Services Offered Why in the Philippines Success Story Front-end acquiring solutions Backroom data system support Value-added marketing services Merchant service provider to financial institutions in the card acquiring business Vast resources of IT experienced well-adapted and language-proficient workforce Reasonable wages, office location Established IT and telecommunication infrastructure Good food, good entertainment, good people Transition from tourism to a successful merchant service provider with the support of PEZA.

13 Source: TeamEurope

14 Offshoring Destination of the Year 2010 awarded by the National Outsourcing Association of the UK Placed Manila 3rd as an established outsourcing city according to Tholons Study 2007 Ranked second after India in BPO, IT and Contact Centres in the Duke University/Booz Allen Hamilton Survey 2006

15 Binondo Manila (est 1911) Rockwell Makati

16 Net Cube (left) Net Quad (right) in Global City, Taguig

17 Libis, Quezon City Makati

18 Makati

19 MAKATI

20 ORTIGAS CENTRE