Limcaoco is ING-FINEX CFO of the Year

The Financial Executives Institute of the Philippines and ING Bank NV have named Ayala Corporation Chief Finance Officer Jose Teodoro K. Limcaoco as this year’s CFO of the Year.

As CFO of Ayala, Limcaoco is tasked to manage P900 billion in assets of the Philippines’ oldest and largest conglomerate which has diverse interests in real estate, financial services, telecommunications, water infrastructure, electronics manufacturing, power generation, transport, automotive, healthcare, and education.

“TG plays a very important role in the growth of Ayala Corp. He has a wide lens in which he views things. Our conversations stretch beyond the financials and encompass what we want Ayala to become,” says Ayala Chairman and CEO Jaime Augusto Zobel de Ayala.

JAZA credits Limcaoco for remodeling the capital allocation process at the parent company. This year, Limcaoco spearheaded the issuance of a $400-million “fixed-for-life” perpetual bond offering to help fund the conglomerate’s long-term investments; it was the Philippines’ first international corporate issuance in 2017 and also signaled Ayala’s return to the offshore debt market after a long hiatus. Moreover, in his concurrent roles as Chief Risk Officer and Chief Sustainability Officer of Ayala, Limcaoco has heightened the parent company’s focus on risk management and the group’s alignment to the United Nations Sustainable Development Goals.

Accepting his award on November 20, Limcaoco said: “The role of the CFO is constantly changing, for finance is the lifeblood and tangible measure of corporate success. As corporations and businesses evolve to be more responsible to all their stakeholders, so, too, will the responsibility of a CFO evolve to address and ensure the long-term sustainability of his or her business. This is the challenge we all face and must prepare our successors to address.”

Limcaoco is the fifth Ayala group CFO to receive the organization’s highest distinction, previously won by Ayala Land’s Jaime Ysmael (2011), Manila Water’s Sherisa Nuesa (2008) and Luis Juan Oreta (2015), and Globe’s Delfin Gonzalez Jr. (2007), who was later appointed Ayala CFO.

Ayala Corporation Chief Finance Officer Jose Teodoro “TG” Limcaoco is honored as the 11th ING-FINEX CFO of the Year by (from left) ING Bank Country Manager Hans Sicat, FINEX President Benedicta Du-Baladad, Ayala Chairman and CEO Jaime Augusto Zobel de Ayala, Bangko Sentral ng Pilipinas Governor Nestor Espenilla Jr., Ayala President and COO Fernando Zobel de Ayala, Chairman of the Board of Judges Edmundo Soriano, former ING Bank Country Manager Consuelo Garcia, FINEX Liaison Director Cecilio Paul San Pedro, and Chair of the 2017 Awards Committee Judith Lopez

Find out more about ING-FINEX CFO of the Year, TG Limcaoco in this video:

AC Energy, Kennedy Renewable light up MSU Tawi-Tawi’s best and brightest

Ayala’s latest social venture brings the benefits of solar energy to one of the most far-flung islands of the Philippines

TAWI-TAWI – Far from commercial grids and power lines, the island of Tawi-Tawi sits at the southernmost part of the Philippines. In this remote province, only 30% of the population has access to electricity, which is predominantly sourced from diesel generators. Due to the unstable electric supply, the island experiences rolling blackouts that stunt progress and slow down the delivery of essential services, such as health and education. For the Mindanao State University (MSU) in Bongao, Tawi-Tawi—whose vision is to be a center of excellence in Fisheries, Marine and Maritime Science and Engineering, and Oceanography— this means that the quality of their educational program is undermined and that the productivity of their students is often disrupted.


Working with MSU, AC Energy has partnered with Kennedy Renewable + Technology Corp. to address the power shortage and provide the school with solar panels. AC Energy, whose recent focus in the development of renewable energy, provided technical and financial support, with Kennedy acting as the main developer and engineering, procurement, and construction (EPC) contractor for the project. Seven campus buildings were outfitted with solar panels, hybrid inverters and batteries, providing not only 141kW capacity to the university, but also energy storage capability. The system works in tandem with the local power supply, thereby reducing the impact of electrical disruptions and lowering the school’s cost of electricity. 

“The successful launch of this project highlights the reality of conglomerates successfully working with small companies that labor under challenging circumstances to promote sustainable development. This installation is a living, although modest, testament of how organizations like AC Energy and Kennedy Renewable + Technology Corp. solve real problems of power shortages that affect critical institutions in remote areas. Many more projects like this will help advance the cause of energy derived from sources that are replenished by nature,” said Dr. Philip Ella Juico, Chairman of Kennedy Renewable + Technology Corp.


This renewable source of power enhances MSU’s role, as the only university in the province, in providing quality education despite the inefficiencies in the current local power situation. In these far-flung areas, access to electricity is directly linked to access to education. As the island’s sole institution for higher education, MSU Tawi-Tawi is now closer to its goal of producing experts in fisheries and agriculture, which are key drivers of their local industry. AC Energy’s President & CEO, Eric T. Francia added “Our company sees great value in not only providing electricity to far-flung regions of our country, but also to critical institutions of growth like MSU. Partnering with Kennedy Renewable and MSU to stabilize their campus’ power supply directly impacts the quality of education that the school’s students will receive. We are excited about the possibilities energy can provide—especially to the education of our future generation.” 


AC Energy is one of the fastest growing businesses of Ayala Corporation with more than US$ 1 billion of invested and committed capital, with investments in renewable energy and conventional power.

AC Energy is positioned to exceed 2,000 MW of attributable generation capacity and scale up its renewable energy portfolio to over 1,000 MW by 2020.

AC Energy is expanding beyond the Philippines and expected to grow its presence in Indonesia and other Southeast Asian markets.  

For inquiries and more information, please contact:

Irene Maranan

Head – Corporate Marketing and Sustainability

AC Energy

Email :

Contact number:  0917.5298339 or 908.3373


Ayala’s nine-month net income reaches ₱23.2 billion, up 18 percent from a year ago

Ayala Corporation sustained its earnings momentum in the first nine months of the year, with net income reaching ₱23.2 billion, an 18 percent-growth from its year-ago level. This was bolstered by the strong performance of its real estate unit, and boosted by the continued ramp-up of its power business. 

In the third quarter, Ayala’s net income jumped 39 percent year-on-year to ₱8.2 billion, driven by robust earnings from Ayala Land, Bank of the Philippine Islands, and AC Energy. This was lifted by transaction gains realized by Globe Telecom from the investment of Ant Financial in its fintech unit Mynt. Moreover, the income realized by AC Energy from services that enabled the financial close and construction of a power plant lifted Ayala’s net earnings in the third quarter. Isolating these transaction gains, Ayala’s third quarter net income grew 26 percent from a year ago. 

“Most of our business units have continued to achieve solid growth this year,” Ayala President and  Chief Operating Officer Fernando Zobel de Ayala said. “We are pleased to note that even excluding the transaction gains from various strategic initiatives for the period, Ayala’s ninemonth net income still expanded 18 percent from the previous year,” Mr. Zobel said.

Real Estate

The sustained performance of the residential segment, office-for-sale, and commercial leasing businesses drove the 18 percent growth in Ayala Land’s nine-month net income to ₱17.8 billion.

In property development, residential revenues jumped 30 percent from its year-ago level to ₱57.3 billion driven by new bookings and project completions led by the Alveo and Avida brands. Reservation sales in the first nine months amounted to ₱94.2 billion, 12 percent higher year-onyear, with average monthly sales amounting to ₱10.5 billion. Unbooked revenues from reservation sales reached its highest level to date at ₱141 billion from ₱127 billion in end-2016, while net booked sales for the period climbed 16 percent to ₱66.9 billion.

Office-for-sale revenues surged 50 percent year-on-year to ₱6.3 billion bolstered by sales from the High Street South Corporate Plaza 2 project. In the commercial and industrial lots segment, Ayala Land posted ₱4.8 billion revenues in the first nine months, up 8 percent from a year ago, fueled by strong lot sales in Arca South, Vermosa, and Naic, Cavite.

During the period, Ayala Land launched ₱53.9 billion worth of residential and office-for-sale projects.

In commercial leasing, shopping center revenues reached ₱11.8 billion, 11 percent higher than the previous year backed by contributions from new malls. Office leasing revenues grew 11 percent to ₱4.5 billion, lifted by stabilized occupancy of UP Town Center, Ebloc 4, and Alabang Town Center BPO offices. Moreover, hotel and resorts revenues were steady at ₱4.8 billion, up six percent year-on-year, driven by higher occupancy and average room rates of El Nido Resorts. Property management revenues climbed 51 percent to ₱1.6 billion supported by increase in managed properties. These recurring income businesses contributed 35 percent of Ayala Land’s net income during the period.


In banking, the sustained momentum of Bank of the Philippine Islands’ core banking and feebased businesses cushioned the absence of significant gains from a capital exercise in the previous year. The bank posted ₱17 billion in net income in the first nine months, 1.9 percent lower yearon-year

The bank’s total revenues rose five percent to ₱53 billion as net interest income rose 13.5 percent to ₱35.5 billion driven by higher asset yields and expansion of its average asset base. Non-interest income fell to ₱17.5 billion, down 8.4 percent from a year ago, due to the absence of significant one-off securities trading gains similar to those realized in June 2016. The lower trading gains was partially offset by the bank’s fee-based income, which rose 20.1 percent during the period backed by credit card, investment banking, and trust fees. BPI’s cost-to-income ratio increased to 52.5 percent as the bank continues to invest in new technology to improve operating efficiencies.

BPI’s loan book expanded 21 percent as of end-September 2017 to ₱1.1 trillion compared to the same period a year ago, supported by a 24 percent-growth in corporate loans. The corporate segment accounted for 80 percent, while the consumer segment comprised 20 percent of the bank’s loan portfolio. BPI maintained its asset quality with a 90-day non-performing loans ratio of 1.5 percent and a 126 percent reserve cover. Total deposits in the first nine months of the year stood at ₱1.5 trillion, 14 percent higher than a year ago, with its current and savings account ratio at 71 percent.


Continued demand for data-related services, lifted by a ₱1.9 billion gain from the strategic partnership forged by Mynt, drove Globe Telecom’s net income to ₱13 billion, 11 percent higher than a year ago. This one-time gain pared Globe’s share in equity losses and amortization charges related to the acquisition of San Miguel’s telco assets, higher interest expenses, and depreciation.

Globe’s gross service revenues improved six percent to ₱95.1 billion led by a broad-based growth across its mobile, home broadband and corporate data segments. Mobile revenues grew 7 Ayala Corporation | 9M 2017 Earnings Release 3 | P a g e November 10, 2017 percent to ₱73.1 billion, driven by sustained high demand for mobile data. Mobile data revenues increased 20 percent to ₱31.3 billion as mobile data traffic soared 73 percent to 430 petabytes in the first nine months of the year.

Home broadband revenues rose eight percent from its year-ago level to ₱11.7 billion, tracking a nine percent growth in broadband subscribers to 1.3 million. Meanwhile, corporate data revenues ended the period four percent higher to ₱7.6 billion. On a combined basis, Globe’s revenues from data-related services amounted to ₱50.6 billion, up 14 percent year-on-year. Data services accounted for 53 percent of Globe’s gross service revenues in the first nine months compared to 49 percent in the previous year.

Globe posted an earnings before interest, taxes, depreciation and amortization (EBITDA) of ₱40.6 billion, up eight percent from the previous year, backed by strong revenues despite higher operating expenses. Moreover, EBITDA margin improved to 43 percent from its year-ago level of 42 percent.

Without the impact of the gains from the increase in fair value of its retained equity interest in Mynt and the costs related to the acquisition of San Miguel’s telecom assets, Globe’s net earnings dropped 2 percent year-on-year owing to higher depreciation expense and interest and financing charges.

As part of its commitment to improve internet services in the country, Globe is deploying US$100 million in additional capital expenditures for the year to fund the expansion of its mobile data network, bringing Globe’s total capital spending plan to US$850 million for 2017. The additional investment will be used to deploy new cell sites that utilize the 700 and 2600 megahertz frequencies aimed at expanding internet capacity and mobile coverage.

In October, with partners Ant Financial and Ayala, Globe launched its digital payment platform through GCash, which utilizes Quick Response (QR) codes for retail merchants. The system allows customers to pay for goods and services using their smartphones. The system was first launched with Ayala Malls and is targeted to expand to other retail outlets.


Manila Water’s nine-month net earnings ended flat from a year ago at ₱4.9 billion, as higher operating costs and expenses from expansion initiatives weighed down its topline growth.

Manila Water’s revenues rose three percent to ₱13.8 billion, in step with a three percent expansion of total billed volume to 554.4 million cubic meters. In the first nine months of the year, the Manila Concession registered ₱4.5 billion in net income, three percent higher than the previous year, supported by a steady growth in billed volume and lower depreciation expenses. Billed volume stood at 366.6 million cubic meters, two percent higher than its year ago level, on the back of higher demand from domestic and semi-commercial clients. Operating efficiencies remain at a Ayala Corporation | 9M 2017 Earnings Release 4 | P a g e November 10, 2017 comfortable level with non-revenue water at 13.1 percent, while collection efficiency stood at 99 percent in the first nine months.

Revenues from Manila Water’s domestic subsidiaries, Manila Water Philippine Ventures, jumped 26 percent to ₱2.3 billion bolstered by strong growth across all its subsidiaries. This was led by Estate Water and Laguna Water, which posted revenue growth of 42 percent and 32 percent, respectively. All in all, Manila Water’s non-Manila Concession businesses contributed ₱770 million accounting for 16 percent of total consolidated net income.

Operating costs and expenses in the first nine months rose 11 percent to ₱4.9 billion, due to higher direct and personnel costs.

Manila Water remains aggressive in its business-building efforts, with business development costs more than doubling to ₱162 million. In addition, Manila Water continued to invest in service improvements with capital expenditure up 66 percent to ₱8.2 billion, with a bulk allocated to the Manila Concession.

Power Generation

AC Energy sustained its earnings momentum with net income surging 73 percent to ₱2 billion in the first nine months, primarily driven by the fresh contribution of its geothermal asset in Indonesia, boosted by services income derived from the financial close of a new power plant.

Equity earnings from AC Energy’s operating assets expanded 20 percent year-on-year to ₱1.6 billion, bolstered by the robust performance of its renewable energy assets and the contribution of SD Geothermal (formerly Chevron Indonesia). During the period, its renewable platforms contributed 52 percent to AC Energy’s equity earnings from operating assets.

AC Energy’s first greenfield offshore project, the 75-megawatt Sidrap Wind Farm located in South Sulawesi, Indonesia, is expected to be operational by the first quarter of 2018.

Industrial Technologies

AC Industrials registered a net income of ₱1 billion in the first nine months of the year, a five percent increase from a year ago, as the solid performance of its electronics manufacturing business offset weaker contributions from its vehicle retail segment.

In electronics manufacturing, Integrated Micro-Electronics, recorded a 16 percent increase in net earnings to US$24.1 million (₱1.2 billion), driven by its automotive and industrial segments. Revenues surged 29 percent year-on-year to US$795.2 million (₱40.4 billion), lifted by its Europe and Mexico operations, which contributed US$263.4 million (₱13.4 billion) in revenues on increased demand for automotive lighting.

VIA Optronics and Surface Technology International registered a combined US$136.2 million (₱6.9 billion) in revenues, contributing 17 percent of total revenues. VIA and STI supported the 25 percent-improvement in gross profit of US$89.2 million (₱4.5 billion) during the period.

Meanwhile, revenues from AC Industrials’ vehicle retail segment expanded 30 percent to ₱21.2 billion, supported primarily by strong sales of its Honda BR-V, Honda Civic and Isuzu truck models. Despite higher sales during the period, net income declined 10 percent to ₱445 million as a result of lower dividend income from Isuzu Philippines Corporation and lower equity earnings from Honda Cars Philippines Inc.

In motorcycle manufacturing, KTM Philippines has assembled 1,148 units as of September since it began operations in June this year.


AC Infrastructure continues to strengthen the operations of its three public-private partnership projects. Light Rail Manila Corporation, the operator of LRT-1, served an average daily ridership of over 431,000 in the first nine months of the year. Capacity has improved with 106 light rail vehicles available for operation, a 15 percent increase from its year-ago level, while average weekday daily trips have increased to 554, 10 percent higher year-on-year. LRMC continues to upgrade the facilities of stations along the line to provide a better commuting experience to the public.

The Muntinlupa-Cavite Expressway now serves over 28,300 vehicles a day, 22 percent higher from a year ago. Meanwhile, the Beep ticketing system now has 4.6 million cards in circulation, with ₱8.1 billion in transactions across rail, bus, and retail platforms since its launch in 2015. It recently added Robinsons Movieworld to its non-rail platforms

Social Infrastructure

AC Health continues to ramp up the operations of Generika, its retail network of affordable quality generic medicines, and FamilyDOC, its chain of community-based primary care clinics, to meet the healthcare needs of Filipinos.

Generika’s revenues grew 13 percent to ₱2.3 billion year-on-year, mainly driven by higher network retail sales during the period. The pharmacy chain opened 76 new stores in the first ten months, bringing the total branch footprint to 730 as of October 2017. Meanwhile, FamilyDOC continues to ramp up with 15 clinics in its network as of October 2017 after it opened five new clinics in Cavite, Las Pinas, Paranaque, Pateros and Pasig. FamilyDOC has served over 40,000 unique patients since it launched in 2015. This year, AC Health is expected to launch a new clinic format, which will place a FamilyDOC clinic inside a Generika branch.

In education, after completing enrollment for both its Affordable Private Education Centers (APEC schools) and the University of Nueva Caceres in Naga, AC Education now has a combined student population of 24,275 as of September 2017.

APEC Schools opened the school year 2017-2018 with 16,221 students across 23 sites, a 54 percent increase from the previous year. Meanwhile, UNC’s total student population increased by 5 percent to 8,054, despite the lack of a freshman cohort due to the implementation of the K-12 Law

Balance Sheet

Ayala’s balance sheet continues to be healthy to support its investments as well as meet debt and dividend obligations. Moreover, Ayala’s consolidated assets breached the 1-trillion-peso level as of end-September 2017.

Cash at the parent level stood at ₱29.7 billion, while net debt stood at ₱67.2 billion. Net debt-toequity ratio during the period was 0.68 at the consolidated level and 0.61 at the parent level. Ayala’s loan-to-value ratio or the ratio of its parent net debt to the total value of its investments was 10 percent as of end-September 2017.

In September, Ayala successfully issued US$400 million senior Perpetual bonds with an annual coupon rate of 5.125 percent with no reset nor step-up, a first in the Philippines. The issuance of this fixed-for-life Perpetual was more than five times oversubscribed with 81 percent allocated to foreign institutional investors. The issuance allows Ayala to optimize its average cost of funding and extend its debt maturity profile and diversify its funding source.