Disclosures

Corporate Governance Scorecard

QUESTION COMPLIANCE ANS SUPPORTING DOCUMENTS
1.a Does the GOCC disclose a policy that: Stipulates the existence and scope of its effort to address customer's welfare?

LLFC Corporate Governance Manual (LLC-COO-PM-003.03), page 55 C. Formal Recognition of Stakeholders and E. Customers
1.b Does the GOCC disclose a policy that: Elaborates its efforts to interact with the communities in which they operate?
  1. LLFC Corporate Governance Manual (LLC-COO-PM-003.03) pg. 54 - B. CSR Principle.
  2. CSR Statement - disclosed in the LLFC website
1.c Does the GOCC disclose a policy that: Ensure that its value chain is environmentally friendly or is consistent with promoting sustainable development?
  1. LLFC Corporate Governance Manual (LLC-COO-PM-003.03) pg. 56 H. Environment
  2. LLFC Annual Report 2023 page 26 - Environment
2.a Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Customer health and safety)
  1. LLFC Corporate Governance Manual (LLC-COO-PM-003.03) pg. 56 - G. Health and Safety
  2. Disclosed in the LLFC website - CSR Activities 2023
  3. LLFC Annual Report 2023 page 27 - Customer and Employee Safety, Health and Wellness
2.b Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Interaction with the communities)
  1. Disclosed in LLFC website the CSR Activities for the year 2023
  2. LLFC Annual Report 2023 page 26 - Community
2.c Does the GOCC disclose the activities that it has undertaken to implement the abovementioned policies? (Environmentally friendly value chain)
  1. Disclosed in LLFC website the CSR Activities for the year 2023
  2. LLFC Annual Report 2023 page 26 - Environment
3. Does the GOCC have a separate corporate social responsibility (CSR) report/section or sustainability report/section?
  1. Disclosed in the LLFC website the CSR Activities in 2023
  2. LLFC Annual Report 2023 page 26
4. Where stakeholder interests are protected by law, stakeholders should have the opportunity to obtain effective redress for violation of their rights. Does the GOCC provide contact details via the company's website or Annual Report which stakeholders (e.g. customers, suppliers, general public etc.) can use to voice their concerns and/or complaints for possible violation of their rights?

  1. Customer Assistance Channels and Feedback Form disclosed in Office Circular 22-037, series of 2022: Guidelines on Customer Assistance and Customer Complaints Management - E page 3

    Specific email at customercare@lbpleasing.com located at the LLFC website
  2. Added to Feedback and Complaints Mechanism is the LLFC Citizen's Charter that provide the citizens/ clients with all the information pertinent to submitting or filing their feedback and complaints upon transacting the agency. It includes feedback submission and processing, complaint fining and processing and contact information that is aligned with the requirements of ARTA, BSP,SEC related to such.
5.a Performance-enhancing mechanisms for employee participation should be permitted to develop. Does the GOCC explicitly mention the health, safety and welfare policy for its employees?
  1. LLFC Corporate Governance Manual (LLC-COO-PM-003.03) page 56 - Health and Safety
  2. LLFC Annual Report 2023 page 27 - Customer and Employee Safety, Health and Wellness
5.b Does the GOCC publish data relating to health, safety and welfare of its employees?

LLFC 2023 Annual Report page 27 - Customer and Employee Safety, Health, and Wellness

5.c Does the GOCC have training and development programs for its employees?

Human Resources Management Policies and Procedures Manual - Part II Chapter II Personnel Development
5.d Does the GOCC publish data on training and development programs for its employees?
  1. Employees' Trainings and Activities FY2023 document is uploaded in the LLFC Website
  2. LLFC 2023 Annual Report page 24 to 25 - Employee Training and Development
6.a Stakeholders including individual employee and their representative bodies, should be able to freely communicate their concerns about illegal or unethical practices to the board and their rights should not be compromised for doing this. Does the GOCC have procedures for complaints by employees concerning illegal (including corruption) and unethical behavior?
  1. The Whistleblowing policy of the Corporation was revised in November 2023 to align with the latest issuance from GCG and uploaded om the LLFC website.
  2. LLFC 2023 Annual Report page 23 - Whistleblowing Policy
6.b Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?

Revised Whistleblowing Policy OC 23-018, page 5 F.2. Rights of Whistleblower

QUESTION COMPLIANCE ANS SUPPORTING DOCUMENTS
7.a Does the GOCC's website disclose the following items: Corporate objectives
  1. Disclosed in the website: the 2023 Approved Charter Statement, Strategy Map, and Scorecard Targets
  2. LLFC 2023 Annual Report page 3 to 4 - Operational Highlights and 2023 Performance Scorecard Accomplishment
7.b Does the GOCC's website disclose the following items: Financial performance indicators
  1. LLFC 2023 Annual Report page 3 to 4 and 29 to 106
  2. Accomplishments and/or Validated Performance Scorecard for year 2023
7.c Does the GOCC's website disclose the following items: Non-financial performance indicators
  1. 2023 Annual Report page 4 - 2023 Performance Scorecard Accomplishment
  2. Accomplishments and/or Validated Performance Scorecard for year 2023
7.d Does the GOCC's website disclose the following items: Details of whistle-blowing policy

Revised Guidelines on Whistleblowing Policy (OC No. 23-018)
7.e Does the GOCC's website disclose the following items: Biographical details (at least age, qualifications, date of first appointment, relevant experience, and any other directorships of listed companies) of directors/commissioners
  1. Disclosed in the LLFC Website "About-Us"
  2. LLFC 2023 Annual Report page 107 to 115
7.f Does the GOCC's website disclose the following items: Training and/or continuing education program attended by each director/commissioner

Disclosed in LLFC website - Board of Directors' Trainings for the year ending December 31, 2023

9. Does the GOCC's website contain a statement confirming the company's full compliance with the code of corporate governance and where there is non-compliance, identify and explain reasons for each such issue?
  1. Disclosed in the Corporate Governance Seal of the LLFC website - Corporate Governance Compliance Certificate FY 2023
  2. LLFC 2023 Annual Report page 22 - Compliance to Good Governance Conditions

QUESTION COMPLIANCE ANS SUPPORTING DOCUMENTS
11.a Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?

LLFC Annual Report page 4 Prior to submission to GCG, the Vision, Mission and Strategy as part of the 2023 Annual Performance Scorecard was discussed, reviewed and approved by the Board of Directors during its regular meeting on 25 August 2022 which include its Charter Statement, Strategy Map and Targets.

11.b Does the Board of Directors monitor/oversee the implementation of the corporate strategy?
  1. LLFC Corporate Governance Manual page 9 - Specific Duties and Responsibilities of Board of Directors
  2. LLFC 2023 Annual Report page 6 - Responsibilities
13.a Are the details of the code of ethics or conduct disclosed?

LLFC 2023 Annual Report page 23 - Code of Ethics and Conduct, No Gift Policy

13.b Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?

2022 HR Manual - Part II, Chapter IX - Code of Conduct and Employee Discipline - Statement of Policy

13.c Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?
  1. LLFC Annual Report 2023 - page 23 - Code of Ethics and Conduct
  2. Code of Conduct for Employees - CorpGov Manual pg 29
  3. The copies of the code of conduct for Employees and Code of Conduct for Directors and Officers are available in the LLFC website
14. Does the Board appoint a Nomination Compensation / Remuneration Committee?
  1. Disclosed in LLFC Website - Corporate Governance Committee (Nomination and Remuneration Committee) Membership 2023
  2. LLFC 2023 Annual Report page 15 to 16
15. Did the Nomination Compensation/Remuneration Committee meet at least twice during the year?
  1. Disclosed in LLFC Website - Corporate Governance Committee (Nomination and Remuneration Committee) Attendance 2023
  2. LLFC 2023 Annual Report page 15 to 16
16. If yes, is the report of the Nomination Compensation/ Remuneration Committee publicly disclosed?
  1. Disclosed in LLFC Website - Corporate Governance Committee (Nomination and Remuneration Committee) Accomplishment 2023
  2. LLFC 2023 Annual Report page 15 to 16
17. Does the Board appoint an Audit Committee?
  1. Disclosed in LLFC Website - Audit Committee Membership 2023
  2. LLFC 2023 Annual Report page 12 to 13
18. If yes, is the report of the Audit Committee publicly disclosed?
  1. Disclosed in LLFC Website - Audit Committee Accomplishment 2023
  2. LLFC 2023 Annual Report page 12 to 13
19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?
  1. LLFC Annual Report page 12, 110, 112, and 115 3 out 4 members of the Audit Committee has a background in finance namely Dir. Sangutan, Dir. Kong, and Dir. Damasco
20. Did the Audit Committee meet at least four times during the year?
  1. Disclosed in LLFC Website - Audit Committee Attendance 2023
  2. LLFC 2023 Annual Report page 12 to 13
21. Does the Board appoint a Risk Management Committee?
  1. Disclosed in LLFC Website - Risk Management Committee Membership 2023
  2. LLFC 2023 Annual Report page 17
22. If yes, is the report on Risk Management Committee publicly disclosed?
  1. Disclosed in LLFC Website - Risk Management Committee Accomplishment 2023
  2. LLFC 2023 Annual Report page 18
23. Does at least one member of the Risk Management Committee have a background in finance and investments?

LLFC Annual Report page 17, 110, 112, and 115 3 out 4 members of the Risk Management Committee has a background in finance namely Dir. Sangutan, Dir. Kong, and Dir. Damasco

24.a Are the Board of Directors meetings scheduled at the beginning of the year? (end of Q1)
  1. Disclosed in LLFC Website - Schedule of Board and Board-Level Committee Meetings for the year 2023
  2. LLFC 2023 Annual Report page 7 - Board Meetings and Attendance
24.b Does the Board of Directors meet at least monthly?
  1. Board of Directors Attendance 2023
  2. LLFC 2023 Annual Report page 7 - Board Meetings and Attendance
24.c Did the Board of Directors meet on at least 75% on their scheduled meetings?
  1. Disclosed in LLFC Website - Board of Directors Attendance 2023
  2. Disclosed in LLFC Website - Schedule of Board and Board-Level Committee Meetings for the year 2023
  3. LLFC 2023 Annual Report page 7 - Board Meetings and Attendance
24.d Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?

Disclosed in LLFC website - Board of Directors Attendance 2023
24.e Did the Board of Directors meet separately at least once during the year without the President/CEO present?

LLFC Annual Report 2023 page 7 During its 29 November 2023 meeting, the BOD held a meeting without the President/CEO, Mr. Michael P. Arañas present.

25.a Does the GOCC have a policy that stipulates board papers for Board of Directors/Commissioners meetings be provided to the Board at least three (3) working days in advance of the board meeting?

LLFC Annual Report 2023 page 7 Release of Materials and Conduct of Meeting

25.b Is the Board Secretary trained in legal, accountancy or company secretarial practices?

Atty. Reo S. Andarino - Corporate Secretary Holds a degree in Bachelor of Laws/Juris Doctor from Adamson University School of Law. He also holds a degree in Master's in Mass Communication. Currently, he is the Officer-In-Charge of Overseaas Filipino Bank.

26.a Does the company have a separate internal audit function?
  1. LLFC Annual Report 2023 page 20 - Revised Table of organization
  2. Disclosed in LLFC Website - Table of Organization
26.b Does the appointment and removal of the internal auditor require the recommendation of the Audit Committee?
  1. Audit Committee Charter G.1, page 5
  2. LLFC 2023 Annual Report page 20
27.a Does the company disclose the internal control procedures/risk management systems it has in place?

LLFC Annual Report page 21 - Risk Management

Certification on the Adequacy of LLFC Internal Control, Risk Assessment and Governance

27.b Does the Annual Report disclose that the board of directors/commissioners has conducted a review of the company's material controls (including operational, financial and compliance controls) and risk management systems?
  1. LLFC Annual Report 2023 page 12
  2. Disclosed in LLFC Website - Certification on the Adequacy of LLFC Internal Control, Risk Assessment and Governance
27.c Does the company disclose how key risks are managed?
  1. Disclosed in LLFC Website - Material Risk Factor & Measures to Manage the Risk
  2. LLFC Annual Report 2023 - page 21
27.d Does the Annual Report contain a statement from the Board of Directors or Audit Committee commenting on the adequacy of the GOCC's internal controls/risk management systems?
  1. LLFC Annual Report 2023 - page 20
  2. Internal Control/Risk Mgmt. Certification of Adequacy
28. Do different persons assume the roles of Chairman and CEO?

Disclosed in LLFC Website - About Us

29.a Does the GOCC have orientation programs for new Directors?
  1. LBP-LFC Corporate Governance Manual (LLC-COO-PM-003.03) page 29 - Trainings and Orientation Program for Directors
  2. 2023 Directors' Orientation Materials
29.b Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programs?
  1. LBP-LFC Corporate Governance Manual (LLC-COO-PM-003.03) page 29 - Trainings and Orientation Program for Directors
  2. Disclosed in LLFC Website - Certification of Training Budget for Directors
29.c Did all Appointive Directors attend at least 1 training for the calendar year?

Disclosed in LLFC website - Board of Directors Trainings 2023
30.a Is an annual performance assessment conducted of the Board of Directors?

Disclosed in LLFC website - Result of Board Self-Assessment

30.b Does the GOCC disclose the process followed in conducting the Board assessment?
  1. LBP-LFC Corporate Governance Manual (LLC-COO-PM-003.03) - page 73 - Performance and Self Rating System
  2. Disclosed in LLFC Website - Self Assessment Questionnaire
  3. LLFC Annual Report page 8
30.c Does the GOCC disclose the criteria used in the Board assessment?
  1. Disclosed in LLFC Website - Self Assessment Questionnaire
  2. LLFC Annual Report - page 8
31. Is an annual performance assessment conducted of the Board of Directors Committees?

Disclosed in LLFC website under Corporate Governance Seal - Board Level Committee Assessment 2023 - Executive Committee - Corporate Governance Commiittee - Audit Committee - Risk Management Committee - Related Party Transactions Committee