PLDTLandline Plus

PLDTTelepresence

PLDTVOX

PLDTI-Gate

PLDTBudget Card

PLDTWatcher

SUBSIDIARIESWirelessSmart Communications, Inc. and SubsidiariesPilipino Telephone CorporationSmart Broadband, Inc.ACeS Philippines Cellular Satellite CorporationMabuhay Satellite Corporation

Information and Communications TechnologyePLDT, Inc. and SubsidiariesSPi Technologies, Inc.ePLDT Ventus, Inc.Vocativ Systems, Inc.Parlance Systems, Inc.Infocom Technologies, Inc.Digital Paradise, Inc.Level Up! (Philippines), Inc.

About the CoverAt PLDT, we are mapping out the digital future of communications. Fromengaging interactive services to deep social media experiences to rich broadbandentertainment, our leading edge technologies and services are transforming the livesof Filipinos at home and overseas. Thanks to the Group’s vision and innovation, weremain resilient despite the challenging business environment. We are fortifying ourleadership and driving our business to the next level by focusing on our customers’needs and investing in the country’s future.

TABLE OF CONTENTS

PLDT is the leading telecommunications serviceprovider in the Philippines. Through its threeprincipal business groups—wireless, fixedline, and information and communicationstechnology—PLDT offers the largest andmost diversified range of telecommunicationsservices across the Philippines’ most extensivefiber optic backbone and wireless, fixed line,broadband and satellite networks.

PLDT is listed on the Philippine Stock Exchange(PSE:TEL) and its American Depositary Sharesare listed on the New York Stock Exchange(NYSE:PHI). In 2008, PLDT was one of thelargest Philippine-listed companies in terms ofmarket capitalization.

MISSION / VISIONPLDT will be the preferred fullservice provider of voice, videoand data at the most attractivelevels of price, service quality,content and coverage, therebybringing maximum benefit tothe Company’s stakeholders.

VALUESAccountabilityWe take full responsibility for ouractions and decisions.

IntegrityWe are honest, moral and legal.We do the right thing.

FairnessWe uphold justice and fair play.

TransparencyWe are truthful. We discloseaccurate and promptinformation.

Fixed LinePLDT Clark Telecom, Inc.PLDT Subic Telecom, Inc.PLDT Global Corporation and SubsidiariesPLDT-Maratel, Inc.Bonifacio Communications CorporationSmart-NTT Multimedia, Inc.

Comparative Highlights

Consolidated Financial Performance Highlights

A Message from the Chairman of the Board

A Letter from the President and CEO

2008: A Year of Transformation

CSR Report 2008: Taking CSR to the Next Level

Corporate Governance Report 2008: A Continuing Commitment to Performance with Principle

The Board of Directors

Key Officers

Financial Review

Audit Committee Report

Statement of Management’s Responsibility for Financial Statements

Independent Auditors’ Report

Consolidated Balance Sheets

Consolidated Statements of Income

Consolidated Statements of Changes in Equity

Consolidated Statements of Cash Flows

Notes to Consolidated Financial Statements

Registrars, Transfer Agents and Depositary

02

03

04

08

12

17

22

30

34

37

74

75

76

77

79

80

82

84

179