Makati, Philippines — April 25, 2019 Ayala is committed to helping 1,000 of Pampanga’s hardest-hit families rebuild their homes which were destroyed by the 6.1-magnitude earthquake last April 22, 2019. Ayala continues to work closely with the local government to assist in rescue operations and in ongoing relief initiatives. It is also jumpstarting its rehabilitation efforts in agreement with the provincial government to deliver and distribute building materials.

Today, Ayala is providing 20,000 GI sheets and 20,000 pieces of plywood through Ayala Foundation (AFI), at the request of House Speaker Gloria Macapagal-Arroyo and Governor Lilia Pineda. As of this morning, Ayala has begun transporting these materials to Guagua, Porac and Lubao and aims to complete delivery and distribution within the next few days.

“We feel that this assistance is most critical. It is absolutely imperative that we provide shelter for these 1,000 families that lost their homes in the earthquake. As in most disasters, it is the poor that is worst affected,” said Ayala Chairman & CEO Jaime Augusto Zobel de Ayala. “Ayala continues to support ongoing relief operations, and our resources are available for anything that Pampanga’s community may need.”

“This earthquake destroyed their homes because they were not built to quality structural standards. It’s important that we help them rebuild their homes now so they can also start rebuilding their lives,” shared Ayala President & COO Fernando Zobel de Ayala.

Immediately after the quake, Ayala Land (ALI) sent its Alviera and Makati Development Corporation (MDC) emergency response and safety teams to assist in rescue efforts in Porac, where the 4-storey Chuzon Supermarket collapsed, trapping and killing many. MDC deployed heavy equipment to assist in the rescue and in road clearing operations.

Since the earthquake, the Ayala group has been providing assistance in relief efforts to meet the needs of the Pampanga community. Manila Water Foundation (MWF), for example, delivered 600 units of 5-gallon water bottles to 600 families yesterday as part of its Agapay Tubig Program’s relief efforts. In partnership with the Municipal Government of Porac, Manila Water Philippine Ventures and Clark Water, MWF aims to provide clean, safe and potable water to families in nine hard-hit barangays: Pio, Babo Pangulo, Diaz, Babo Sacan, Cangatba, Mancatian, Manibaug Libutad, Pulung Santol, and Planas. MWF is set to deliver another 400 bottles today.

Globe Telecom (Globe) has set up a “Cell Site on Wheels” in Porac to boost network strength in the area. On April 23, Globe deployed Libreng Tawag and Libreng Charging stations in three sites and restored mobile and broadband signal in Pampanga.

AFI is already working with partners on-ground, including the Philippine Disaster Resilience Foundation (PDRF), and is looking into relief operations in the mountainous areas of Porac, where Aeta schools and communities are affected. AFI will also reach out to LGUs and NGOs to coordinate relief and rehabilitation efforts.

Meanwhile, Ayala Corporation and Ayala Aviation Corporation have a helicopter on standby and are providing PDRF operations center support.

Makati, Philippines – April 23, 2019 The Ayala group is closely coordinating with local government units in Porac, Pampanga to support evacuation and relief efforts following a 6.1 magnitude earthquake that shook Luzon on April 22, 2019. Several Ayala companies are already assisting in emergency operations. 

Last night, Ayala Land (ALI) managed to evacuate 31,000 residents and tenants from all affected ALI-owned residential and commercial properties, plus 55,580 evacuees from all its affected malls in Metro Manila. It also sent an ambulance and emergency response and safety teams from its Alviera estate and construction firm Makati Development Corporation to Porac’s Chuzon Supermarket, which collapsed during the quake. ALI’s tower lights, tents, and heavy equipment were deployed to assist in road clearing operations in Sapang Uwak. 

Manila Water Foundation sent 500-600 five-gallon water bottles to the victims in Pampanga through the Office of the Mayor of Porac. It is also coordinating closely with Manila Water’s subsidiary, Clark Water, to continuously check on other needs of the community. 

Globe Telecom set up Libreng Tawag and Libreng Charging stations in three sites: Public Market Compound, Brgy. Cangatba in Porac, Capitol Ground in San Fernando, and Clark Airport. Globe mobile and broadband signal are also back up in the Pampanga area.

Meanwhile, Ayala Foundation is reaching out and coordinating with the LGU and NGOs to assist the Aeta community in Porac.

Three Ayala companies have been named among the top Philippine winners in FinanceAsia’s 19th Best Companies Poll, beating about 240 other entrants. Ayala Corporation (AC), Ayala Land (ALI), and Globe Telecom (Globe) have all received top citations in multiple categories.

Ayala Corporation placed first in Best Managed Company with Ayala Chairman & CEO Jaime Augusto Zobel de Ayala as Best CEO, and Ayala Chief Financial Officer Jose Teodoro K. Limcaoco as Best CFO. AC also ranked first in Best Growth Strategy, first in Best ESG (Environment, Social and Governance), and third in Best Investor Relations.

By the end of 2018, AC’s net income grew to ₱31.8 billion, up five percent from the previous year with strong earnings contributions from ALI, Globe, and AC Energy. AC invested ₱43.7 billion in capital expenditure in 2018 and is set to spend ₱22.6 billion in 2019 primarily to grow business in AC Energy, AC Infra, and AC Health. Over all, the Ayala group maintains its capital spending level this year at ₱262 billion, with a bulk allocated to ALI and Globe, which have set aside ₱130 billion and ₱63 billion respectively.

“The aggressive growth strategy that we embarked on over a decade ago has been unprecedented for the Ayala group. Over the past 10 years, we spent close to ₱200 billion in capital expenditure at the parent level alone to support the investment programs of our various business units, including our new growth platforms in power, industrial technologies, infrastructure, education, and healthcare. Our profitability has also improved steadily over the past 10 years, growing at a compounded annual rate of 15 percent,” Ayala President and COO Fernando Zobel de Ayala said.

As Ayala grows its business in 2019, it continues to closely monitor its ESG performance against its 360° Sustainability Reporting Framework, maintain its best practices, and accurately disclose said performance in its Integrated Report. Ayala shall continue to remain highly responsive and accountable to its investors and stakeholders.

“As we celebrated our 30th year in 2018, we remained focused on developing more sustainable communities that enrich the lives of Filipinos. We introduced two new estates to bring our total to 26, registered the highest level of residential sales in our history, and stayed on track to open more commercial developments. These led to strong financial results and positioned our company for continued growth in the coming years,” said ALI President & CEO Bernard Vincent O. Dy.

Last year, robust property development and commercial leasing fueled ALI’s net earnings, which grew 16% to ₱29.2 billion. Of its record ₱110.1 billion in capital expenditures in 2018, ALI spent 41% on residential projects, 23% on commercial projects, 15% on land acquisition, 12% for the development of estates, and 9% for investments.

Since 2014, ALI has been working to reach its “2020-40 plan”, with the goal of achieving ₱40 billion in net income by 2020. It continues to extend beyond its traditional property development while increasing investments in the commercial leasing segment through sustainable means.

ALI continues its strategy of co-creating sustainable communities to help develop sustainable cities and communities, which is one of the United Nations Sustainable Development Goals. To ensure that people can live and work sustainable in all ALI developments, it prioritizes four Sustainability Focus Areas in each of its properties: site resilience, pedestrian-transit connectivity, eco-efficiency, and local economic development.

Additionally, in 2017, ALI kicked off its ambitious plan for all its commercial assets to be carbon-neutral by year 2022. In 2018, ALI offset 64% of its carbon emissions, coming from only 37% in 2017. This was accomplished through ALI’s 560 hectares of carbon forests, the use of passive cooling systems, and renewable energy.

Globe’s 2018 net profits were boosted to ₱18.6 billion in 2018 by the sustained demand for data-related services, which accounted for 61% of total service revenues last year. It invested ₱43.3 billion in capital expenditure in 2018, equivalent to 32% of its service revenues, and is set to spend ₱63.0 billion in capital expenditure in 2019 for continued network expansion. Globe continues to develop new products, services, and partnerships to further enhance the Filipino digital lifestyle.

“We will continue to put Filipinos at the forefront of digitalization by delivering a differentiated level of customer experience as we constantly improve the performance of our network,” said Globe President and CEO Ernest Cu.

Other winners in these categories include SM Investments Corporation, San Miguel Corporation, Metro Pacific investments Corporation, Megawide Construction Corporation, Megaworld, First Gen Corporation, Aboitiz Power Corporation, and D&L Industries.

The full results of the Best Companies in Asia poll will be released in FinanceAsia’s Autumn issue. See more at www.financeasia.com.

Contact Information

Ayala Corporation
May Florentino
Senior Manager, Corporate Communications
Email: florentino.mpp@ayala.com.ph

Ayala Land, Inc.
Suzette P. Naval
Corporate Communications Manager
Email: naval.suzette@ayalaland.com.ph

Globe Telecom, Inc.
Yoly C. Crisanto
SVP, Corporate Communications
Email: gtcorpcomm@globe.com.ph

Shared by seven generations and spanning almost two centuries, Ayala’s commitment to the country continues to evolve as it responds to the changing needs of Filipinos. Deeply rooted in Ayala’s heritage is the belief that good business must not only bring solid financial returns but must equally bring positive change in communities.

We have been consciously integrating sustainability and shared-value principles into our core businesses and scaling them to enrich everyday life. We build sustainable estates and services, and open access to finance, education, healthcare, mass transport, and energy.

As our business grows, so does our responsibility for good citizenship. This we exercise through various social commitments, but close to our hearts are these programs:

• Ayala Foundation’s Center of Excellence in Public Elementary Education (CENTEX) – helping bright children from economically disadvantaged families
• the Ayala Young Leaders Congress (AYLC) – building a community of like-minded youth leaders across the country to nurture nationalism and faithful stewardship; and
• the HERO Foundation – where we collaborate with other business leaders in helping ensure a better future for the children of our fallen soldiers through education.

Over the years, these collaborations have given rise to many of the country’s inspiring servant leaders, five of whom we are grateful to have met. Here are their stories.

Starting Over with a Little Help from Your Friends

Sam Abanto, 48 years old, lost everything to Typhoon Ondoy but has rallied against all odds to eventually lead an organic farming cooperative in Calauan, Laguna. With the help of Ayala Foundation through the MDC Greens program, Sam’s group found a way to better their lives through social entrepreneurship. Aside from growing ornamental plants for Ayala Land’s developments, the group now grows organic produce for healthy grocers and restaurants. Sam’s group has recently taken ownership of the program by establishing a cooperative called Inang Kalisakan. From a group of 10, the cooperative has grown to 30 people. Their P158,000 worth of plant orders in 2015 has grown to P4.7M in 2018. Sam is now approaching more agencies and potential partners to further scale their operations.

Taking the Road Less Traveled

Ann Marie Cunanan, batch 2004 of AYLC, is a young leader who quit her high-paying job to create a social enterprise—one that merges philanthropy, community development, and tourism into an innovative business venture. Ann’s company, called Meaningful Travels PH, is a for-profit venture with a strong non-profit core. The group aims to turn people’s wanderlust into actions that enrich remote and poor communities. The enterprise upholds a host of sustainability ideals, including cultural heritage preservation, environmental conservation, and the support of grassroots industries. For Ann, AYLC inspired her to pursue her advocacies with vigor: “AYLC really helped me in terms of my formation as a leader. It was life-changing to be part of the program. A lot of us, even after several years, are really doing something for the country.” To date, Meaningful Travels has engaged over 600 travelers and volunteers and has distributed almost 7,000 school kits around the Philippines.

A Father’s Legacy, a Son’s Calling

Staff Sergeant Jealvies Sarte, an officer under the Civil Relations Service group of the Armed Forces of the Philippines (AFP), upholds the legacy of his father who died in the line of duty. He was a scholar of HERO Foundation from high school to college and has also served two Philippine Presidents and high-ranking foreign delegates as closed-in security. Today, Staff Sergeant Sarte and his team serve as a conduit between civilians and the military, making sure that civilians have access to disaster relief assistance and accurate information about military operations. To follow his passion and pay HERO’s support forward, Staff Sergeant Sarte decided to also pursue a career in the military despite losing his father to the same vocation. “Serving the country gives us an immense source of pride. It is the ultimate form of service for all of our troops here at the AFP.”

“Every Filipino Child . . . a Peace Hero”

Bai Rohaniza Sumndad-Usman, AYLC batch 2003, is one of the youngest and staunchest peace advocates in the country today. She founded Teach Peace Build Peace Movement Inc. (TPBPM), a non-partisan and non-profit organization that aims to make every Filipino child a peacebuilder. She regularly works onsite in Marawi and Maguindanao, where she brings various groups together to foster dialogue and understanding. AYLC has inspired her to dream bigger. “AYLC was a lifechanger for me,” she said. “Our batch theme then was ‘Everyday Leadership’. This is directly connected to what I do now. AYLC taught me how I can make a difference.” To date, Ms. Usman’s movement for peace has reached over 65,000 children, youth leaders, teachers, and young professionals.

The Privilege to Serve

John Macneil Mendoza of CENTEX exemplifies Ayala’s commitment to service and volunteerism. After finishing class valedictorian at CENTEX, John went to De La Salle Lipa high school and Ateneo de Manila on full scholarships. Now pursuing a career in international relations, John still volunteers his time to various causes. “One of the core values I learned in CENTEX was servant leadership,” he said. “While the school aimed to raise future leaders, it also taught us that leadership is not only about being at the forefront but is more about serving the community. It is easy to be blinded by prestige and achievements, but this will lead to a tiring life if they are one’s only goals. With servant leadership, one will always be aware that true service is less about the self, but is more about the people who gave one the privilege to serve.”

On our 185th celebration, we pay tribute to the thousands of beneficiaries who continue to share our business and social commitment to improving lives.

In tandem and throughout 2019, Ayala citizens across the group will come together and scale key volunteer programs in each business unit to achieve 185,000 hours of volunteer work in communities where we live and work.

Together, we are Committed to the Filipino.

Ayala Corporation has won Asia’s Best Integrated Report (“Highly Commended”) at the 4th Asia Sustainability Reporting Awards (ASRA), Southeast Asia’s highest recognition for corporate reporting. The awarding took place in Singapore last March 6, 2019.

“Sustainability reporting has become an important tool for investors and stakeholders to assess a company’s full value. High quality reporting and disclosure allows organizations to communicate how they manage their economic, environmental, social and governance impacts, risks and opportunities to create value in the short, medium and long term,” explained Rajesh Chhabara, managing director at CSRWorks International and the creator of the Awards. “Ayala Corporation’s winning report demonstrates the company’s leadership in sustainability reporting and a deep sense of commitment to transparency, disclosure and value creation.”

The Ayala group’s first Integrated Report is the first of its kind in the Philippines. It shows how Ayala uses its different capitals—financial, manufactured, intellectual, human, social, and natural—to create business strategies that would benefit not just the company but the communities that it serves. The report details Ayala expansion from its core businesses in real estate, telecommunications, banking, and water, to more transformative businesses in healthcare, education, infrastructure, industrial technology, and energy that would serve broader markets and create shared value for all its stakeholders. The report also discloses how Ayala supports and aligns its environmental endeavors throughout the company, and the importance of groupwide interconnectivity in matters such as governance, risk management, and investor relations.

“We thank the organizing committee and judges for this honor. This confirms that we in Ayala are on the right direction in communicating our sustainability efforts and overall performance. We continue to innovate to make our reporting platform more comprehensive and informative. This achievement calls us to more action in taking greater responsibility to all our stakeholders. Ultimately, this inspires us to keep our focus towards our purpose of improving lives,” said Ayala Chief Sustainability Officer Jose Teodoro K. Limcaoco.

The awards ceremony was hosted by the British High Commissioner in Singapore H.E. Scott Wightman, and was attended by senior business leaders from 13 countries. Also in attendance were dignitaries from other fields such as academia, non-profit, embassies, trade associations and advocacy organizations.

The awards were presented by the Guest of Honor Jessica Cheam, managing editor of Eco- Business, H.E. Scott Wightman, and special guests Dr. Lawrence Loh, Director of Corporate Governance, Institutions and Organizations at NUS Business School, and Dr. Wu Huijuan, Assistant Director, Singapore Institute of International Affairs. Ayala’s award was received by Audrey Chong of Ayala International.

A record 82 companies from 14 countries made it to the final round of the 2018 Asia Sustainability Reporting Awards across 17 categories. Finalists can be viewed at https://csrmatters.com/finalists-2018/

Harnessing the Potentials of Today towards a Future-Ready Philippines

To the Board of Governors of the Management Association of the Philippines,

Fellow members of MAP,

Ladies and gentlemen,

Good afternoon. Let me first thank all those involved in making this event and recognition possible. Thank you to the MAP Board of Governors led by Mon Fernandez, the MAP Management Man of the Year Judging and Search Committees led by Gigi Montinola, Ed Chua, Marife Zamora, and Perry Pe. 

I also extend a very special thanks to the individuals who have so kindly nominated me for this honor: Amb. Albert Del Rosario, Lilia De Lima, Tony Aquino, and Jess Estanislao, as well as the many others behind the scenes who were involved in the nomination process. Let me also take this opportunity to congratulate the incoming Board of Governors, and your incoming President, Riza Mantaring.

Allow me to also acknowledge representatives from the senior management of Ayala present today. My brother Jaime and I often discuss how privileged we are to be able to work with these exceptional individuals. They are passionate about our country and share our desire to bring the Philippines to the highest stage of development within the community of nations.

I would also like to express my warmest appreciation to the many friends, partners, and customers of the Ayala group of companies. Our group’s stability and success would not have been possible without your continued trust, and we are very thankful for your faith in us throughout the years. Let me also acknowledge a good friend of our family, Mr. Fred Borromeo, who joined MAP in 1954, and at 92 years old is certainly the wisest MAP member in the room. Last but certainly not the least, I would like to thank the members of my family present today—my parents, my wife Kit and siblings, spouses and friends. We owe so much to my father, who took a risk and entrusted the leadership of Ayala to Jaime and I at a fairly young age. He had already set high standards of professionalism in the company and a deep sense of commitment to the developmental goals of the country. Jaime and I had a great platform to build from. 

I am deeply honored to receive this recognition, and greatly humbled to join the company of such an illustrious group of individuals—many of whom I have admired and respected, and have had many fond memories with as friends, business partners, and mentors. We are also deeply honored as a family that I am now the third member of the family, after my father and brother, to be recognized for this award. 

MAP’s overarching theme for 2018 is “Competing in the Age of Disruption.” As I was reflecting on the many achievements of our esteemed previous awardees, as well as MAP’s enduring work in advancing the management profession in the country,

I realize that this theme remains relevant and resonant, regardless of the period. In every timeframe in our history, we have had to deal with disruptions on various fronts. These challenge us to continuously find ways to put our organizations—and our country through our collective contributions—on a clear path to shared prosperity. 

We live in a world that is very volatile, uncertain, complex, and ambiguous. But while current developments appear bleak, today’s dynamic times have likewise given birth to impressive advances and amazing possibilities. We live in an era where technological innovation, new business models, and new ways of thinking can be used to benefit a larger number of our population. 

This is the notion that I would like to put forward today—that the ingredients to bring the country to the next level are already within our grasp. MAP and our individual organizations carry the challenge and responsibility to properly harness the potentials of today and use them to create a progressive, equitable, and Future-Ready Philippines. 

Our journey towards future-readiness requires a strong platform from where we can launch ourselves. I believe that we have already been building this over the last few years. I refer to our macroeconomic foundations, and our highly talented and committed human capital. 

On the former, I think we would all agree that we have had a unique period of continued economic growth that has transformed our country. This growth has largely been consumer-led, supported by strong overseas remittances, the growing BPO and services sector, and complemented by increasing investments. I would also like to emphasize the enormous role that local private capital from many of the companies represented here today has played in the growth of our economy. 

We also see many positive developments with our people, whose median age is 24 and where a third of the total population are millennials. We are also seeing a continuing influx of young and talented Filipinos who have studied and trained overseas. These young Filipino professionals not only possess excellent technical skills, but are also technologically adept, and more importantly, have the ideals and innate passion to contribute to national development. They are also prepared to take on significant managerial responsibilities at a much younger age than we may have been used to in the past. 

The challenge we all now face as a business community is to determine where we want our country to be in the next 10, 20 and 30 years. There are many areas where the private sector is focusing its efforts. From our point of view in Ayala, we have decided that four areas hold tremendous potential to make a lasting and meaningful impact as we build a Future-Ready Philippines. These sectors are: inclusive finance, education, healthcare, and sustainable tourism. 

Let me start with financial inclusion. It is unacceptable that only 23% of Filipinos are part of the banking system. The rest are exposed to unauthorized lenders charging exorbitant rates and face the risks of the unofficial economy.

We are doing our part through banking channels and mobile solutions. BPI formed BanKo a few years ago to serve micro, small, and medium enterprises with their lending requirements. We further recognize that mobile technology has likewise provided a unique opportunity to serve the financial needs of a broad segment of our people. Through one’s mobile device, there are now several solutions available for payments and mobile wallets, digital lending, plus wealth management and credit analytics. Our partnership with Ant Financial, a subsidiary of Alibaba, has brought forth an enormous amount of knowledge in the fintech and mobile space, given the cutting edge technology that China has been deploying for their population. While the Philippines is still far from having fintech as ubiquitous as it is in China, together with Ant Financial, we are excited to further develop our fintech industry to reach our financially underserved countrymen. Ensuring the success of our financial inclusion efforts through mobile technology, however, requires massive investments in telecom infrastructure. The telcos have been spending record amounts to keep up with the exponential demand for more data and faster connections.

Let me now shift to education. McKinsey estimates that up to 15% of the global labor force, or 375 million workers, will have to switch jobs by 2030. As certain professions are rendered irrelevant, new opportunities will emerge. However, this will require the right type of training in 21st Century skills and values. 

On a more basic level, we must immediately tackle the serious condition we face in many of our schools, wherein 3.6 million Filipino youths find themselves out-of-school. Even more stunning are the findings of the Philippine National Employability Report, published in 2017 by employability assessment firm, Aspiring Minds. From their survey of 60,000 fresh graduates from 80 tertiary level institutions, they found that 65% of Filipino graduates lacked the appropriate skills and were thus unemployable in their sector of choice.

Our educational system is in serious need of help and it is very encouraging that the private sector has been contributing in a significant way. In our own case, our solutions revolve around some of the key problems that we have had to address through our schools. These include a huge reduction in dropout rates; increasing the employability of our students; and producing competent teachers to sustain education reform. At the basic education level, through CENTEX and APEC Schools, we have changed the way students are taught with a curriculum that focuses on practical skills and innovative teaching methods. Through close coordination with the needs of industry, we were also able to design programs where recent graduates are employed within 90 days and receive starting salaries that are significantly higher than the average. At the teacher level, we are delighted that through our partnership with the National Teachers College, we now havean opportunity to equip our teachers with the necessary skills to drastically improve the quality of instruction in the country.

Aside from our students, we also need to give the workforce an opportunity to upskill and retrain themselves. A number of online digital learning solutions are readily accessible with content from the world’s top universities offering customized training programs, suited to the individual’s needs, and at a very modest cost. We have recently launched Ayala University, a digital learning platform that brings together carefully selected online global content from the best schools to upskill our employees at an exponential scale. 

The third sector I want to highlight is healthcare. I strongly believe that the next critical need for the country is a ramp up in affordable, quality healthcare. How can we possibly have a productive workforce and a higher quality of life for our people without proper healthcare? Our research is staggering: 43% of low to middle income Filipinos have not seen a doctor in more than a year, with 6 out of 10 Filipinos dying without even seeing a doctor. The Economist ranked the Philippines 78th out of 80 countries in an index that measures the quality and availability of the country’s palliative care environment, which includes hospices, nursing homes, and professionals. 

The Filipino patient deserves better—from birth to end-of-life. At Ayala, we strongly believe that healthcare is a fundamental right for all. This principle has shaped our approach to our healthcare business. Our focus has been to find disruptive models and technologies that make healthcare products and services more accessible and affordable to a broader segment of the population. A critical part of this offering is a strong emphasis on preventive healthcare, which we believe will significantly impact health outcomes and our stakeholders’ disposable incomes. This is essential as the World Health Organization reports that lifestyle-related diseases, such as diabetes and hypertension, account for as much as 70% of deaths worldwide—deaths that are easily preventable if there is a focus on proactive and preventive medicine. Towards this end, we continue to grow our FamilyDoc clinical network to expand the reach of primary care to more Filipinos. Meanwhile, through our investment in Generika drugstore, we are expanding the reach of generic medicines to help provide affordable options for preventive healthcare. We view this as a key component to democratize healthcare and promote disease prevention, as our research shows that generic medicines can be cheaper by up to 85% compared to their branded equivalents. The elements to substantially improve the state of our healthcare are within our grasp. We have excellent healthcare professionals, a plethora of health technologies are available, and favorable regulation, through the Universal Healthcare Act, exist. Let us not let this opportunity pass us by. Let us boost our efforts at giving our people the healthcare that they deserve. Lastly, let me focus on tourism. I believe it is time to dramatically focus on tourism as an industry that can have an enormous impact to our country. To illustrate the magnitude of its effects, consider Thailand that attracted close to 35 million visitors last year. According to the World Travel and TourismCouncil, tourism directly contributed close to 10% to Thai GDP in 2017. 

I feel that we have yet to adequately embrace tourism as a valuable component of our development. While tourism continues to contribute much to the economy, there remains significant value to be unlocked. I say this because while we invest only $1.9 billion for tourism—which is close to last in ASEAN and below the global average—our numbers are steadily increasing. For instance, international arrivals grew from 2.8 million in 2006 to a record 6.6 million in 2017. Tourism’s direct economic impact has also more than doubled over the last 10 years, accounting for 8.7% of GDP and 2.3 million jobs. The World Travel and Tourism Council forecasts that by 2028, tourism could directly account for P2.5 trillion, close to 10% of GDP, and support 3.2 million jobs. If we are to make a quantum leap in tourism, we need to involve many more partners, have a far more holistic and visitor-centric masterplan, and be more aggressive and strategic in deploying capital. I believe that this is where the Philippines can differentiate itself from our neighbors. Too many Asian countries have developed their tourism sectors too quickly, and in the process, have severely damaged their ecosystems. It is wonderful to hear that the tourism agenda currently being discussed under Secretary Berna Romulo Puyat is one that strongly includes environmental protection and sustainability. To support this drive, we must create the appropriate governance structures to ensure that there is proper planning and project execution inour best tourism sites. This includes ensuring a seamless and 
exceptional visitor experience—from arrival at the airport, to transportation to hotels, and to the overall experience at the destination. Let me also emphasize the need for strong visitor impact management—that is that we properly manage what practitioners call as carrying capacity and limits of acceptable change or put simply, the maximum number of visitors and degree of impact that any single destination can take and withstand. 

From our point of view, we have moved into substantial tracts of land and are looking for more in the hope that we can create several sustainable tourism environments. In all our tourism developments, we want to make sure that the employment benefits to the local communities are maximized, environmental impact is properly managed, and that these destinations can serve as a showcase for the rest of the world on how tourism’s potentials can and should be harnessed. The multiplier effects of tourism and the impact that it can have on communities—especially the poor—is enormous. As the Ayala group enters its 185th year in 2019, we are more committed than ever, along with the rest of the business community, to continue building our growth platforms for our country, and to ensure that Filipinos have the skills necessary to take advantage of these opportunities. 

It is interesting that as far back as 1962, John F. Kennedy was already anticipating the same challenge and responsibility that the world continues to face today. He stated in a speech and I quote, “if men have the talent to invent new machines that put men out of work, then they have the talent to put those men back to work.” Generating new jobs for the next generation and providing opportunities for value creation will be our utmost priority. This, however, requires a comprehensive response from the private sector and the full support of government. Like many of you, I am a great believer in the critical role that the business community plays in nation-building. Today’s disrupted times, while alarming on many instances gives us access to several resources: capital is accessible for new ventures; new technologies and business models are available to be harnessed; and there is a wealth of talent among our people waiting to be unleashed. 

Through MAP and the other business organizations in the country, the private sector can accelerate efforts to build a progressive, inclusive, dynamic, and Future-Ready Philippines that we can all be proud of. With a unified public and private sector; an appropriate plan designed for the medium and long term; and a consistent vision that will keep us on track through political cycles, we can certainly direct our country on an irreversible path towards equitable and sustainable progress. 

Once again, good afternoon, and thank you very much for this great honor. 

December 11, 2018 – This year, the Ayala group of companies has listed PHP 203.13 billion worth of bonds, making up about 20% of Philippine bond market today. Last December 7, 2018, BPI reported to have listed PHP 25 billion—the largest single bond issue ever to be listed
in the Philippine Dealing & Exchange Corp. (PDEx), bringing the total local peso bond market to the trillion-peso level.

“Today’s trillion-peso bond market is the result of many factors — a vibrant economy, an
innovative private sector, and a commitment by the government sector to enhance the
enabling environment,” shared Ephyro Luis Amatong, Commissioner of the Securities and
Exchange Commission (SEC).

According to PDEx, the Ayala group has been a pioneer in the Issuer Community since the
exchange started in 2008, when Ayala Corporation and Ayala Land listed a combined total of
PHP 10 billion.

Since then, the Ayala group has consistently tapped the debt market to support the aggressive
growth strategy of its various businesses in real estate, banking, telecommunications, water,
and power.

Over the last five years alone, Ayala has invested a cumulative groupwide total of PHP 748.3
billion in capital expenditures to fund investments largely in Ayala Land and Globe Telecom,
including new ventures in energy, industrial technologies, infrastructure, healthcare, and
education.

Ayala Corporation Chairman & CEO Jaime Augusto Zobel de Ayala strongly believes that the
Philippine economy is ripe for investments.

“Ayala has been a beneficiary of the country’s significant economic growth. This has served
as a catalyst for us to unlock many opportunities and push us to develop new ideas to incubate
new businesses, and to explore prospects for disruptive innovation,” Zobel said.

Contact Information
Ayala Corporation
May Florentino
Corporate Communications
Email: florentino.mpp@ayala.com.ph

Makati, Philippines – December 5, 2018 Following the conferment of The Order of the Rising Sun, Gold and Silver Star last April 29, 2018 by the Government of Japan, Ayala Corporation (AC) Chairman Emeritus Jaime Zobel de Ayala paid a visit to the Japanese Ambassador’s residence in Forbes Park. He was accompanied by sons AC Chairman & CEO Jaime Augusto Zobel de Ayala and AC President & COO Fernando Zobel de Ayala, as well as AC Head of Corporate Support Services Ambassador Marciano A. Paynor, Jr., and AC Group Head of Public Affairs Jose Rene Gregory D. Almendras. He was received by Japanese Ambassador to the Philippines His Excellency Koji Haneda.

During the celebratory lunch, Zobel and party were treated to a Japanese meal with a Filipino twist. Zobel and Ambassador Haneda then gave toasts to commemorate the occasion and the prestigious honor. The Order of the Rising Sun is one of the highest distinctions bestowed by the Japanese government on a civilian.

Zobel’s leadership in AC, the oldest major conglomerate in the Philippines spanning a diverse range of businesses in real estate, banking, telecommunications, water, power, industrial technologies, infrastructure, healthcare and education has enabled many successful business partnerships with the Japanese, and has helped AC to promote a greater appreciation for Japanese culture through several Japanese-related exhibitions. Ultimately, Zobel’s contribution has helped to strengthen the economic and cultural bond between Japan and the Philippines over the course of his esteemed career.

Ayala’s group-wide, nation-wide reforestation and forest protection program called Project Kasibulan continues this year with its first batch of volunteers who planted at North Luzon Renewables (NLR) in Pagudpud. The group is composed of heads and representatives who are part of the Enterprise Risk Management Council across the Ayala Group.

Last November 22, they were immersed in the proper end-to-end planting strategy applied in NLR, including how seedlings are grown and cared for. They also met the communities that the organization is in partner with to see how the efforts contribute in improving the lives of the locals.

Despite the rainy weather the following day, the group pursued planting. To date, the total number of seedlings planted is 3,851, covering an average of 2.4 hectares.

In December 2018, another batch will be opened to employees who wish to make a difference. If interested, please contact your company’s Sustainability Officer.

AC Infrastructure and the Global Fashion Group Team Up to Transform Logistics

E-commerce and digital payment platforms are changing the way people purchase goods. These ecosystems give small, medium, and large-scale businesses a space to innovate services for new markets and grow at a faster pace. As the digital economy expands, traditional logistics infrastructure and systems is also undergoing a similar digital transformation to meet the needs of this growing marketplace.
Ayala Corporation, through its wholly-owned subsidiary AC Infrastructure Holdings Corporation (AC Infra), has partnered with Brillant 1257 GmbH & Co. Vierte Verwaltungs Kg, a subsidiary of the Global Fashion Group, the leading online fashion destination for growth markets, to form a technology-driven end-to-end fulfillment solutions company. The joint venture company, Entrego Fulfillment Solutions Inc. (Entrego), is 60% owned by AC Infra and 40% owned by Brillant.
Entrego draws from its strong competence and track record in e-commerce fulfillment solutions, having started in 2013 as ZALORA Philippine’s logistics division. The company takes its name from the Spanish word entregar, which means “to deliver”. “Entrego” literally translates to “he delivered”, which aptly captures the company’s ultimate objective of fulfilling its commitment to its clients.
Entrego intends to build on its expertise in e-commerce logistics and fulfillment solutions and offers an integrated suite of fulfillment services including management of parcel, document and bulky deliveries for B2B and B2C customers.
AC Infra has so far committed 580 Million pesos to grow Entrego into a significant technology-driven fulfilment solutions provider in the Philippines.
Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala sees benefits for the Ayala group with Entrego. He shares “Our business units overlap on several fronts and managing their supply chain and their fulfillment services needs to its customers is one such front where we see Entrego adding value.”
He adds that Ayala’s entry into the fulfillment space “unlocks opportunities for its real estate, banking, telecom, health, automotive, and industrial manufacturing businesses and paves the way for new business models.”
Emerging opportunities for Ayala, as well as the growth of many SMEs, are anchored on having a highly-efficient, reliable, and inexpensive platform to move goods across the archipelago. Entrego is well positioned to meet these expectations with its 45 hubs as of October 2018 covering over 1,500 cities and municipalities all over the Philippines. Since starting operations, Entrego is averaging a 99% on-time delivery rate nationwide, and even
reaches 100% on-time delivery in certain areas.
Patrick Schmidt, co-CEO of Global Fashion Group shared, “We are proud of how the synergy between Ayala and ZALORA Philippines has created a new retail environment that benefits the Filipino consumer and with Entrego, we hope to deliver a positive impact on the country’s fulfilment sector by using technology and data as the main driver. This will unlock huge opportunities for e-commerce and brands in the Philippines.”

Technology-Driven Logistics for a Digital Economy

“We are applying technology to transform the logistics ecosystem. Our intent is to innovate and organize services to achieve better operating and cost efficiencies for the various customers we have, whether large, medium, or small-scale companies,” shared AC Infra CEO and Chairman of the Board of Entrego Rene D. Almendras.
Entrego helps businesses manage their B2C and B2B fulfillment needs by providing customized end-to-end solutions. Its technology backbone enables real-time tracking of shipments, providing clients visibility and peace of mind that goods get to their destination. Entrego’s data-driven approach allows it to provide value-added services and detailed performance analytics, providing business managers valuable decision-making tools.
“With our technology-driven fulfillment solutions, our mission is to enable businesses to grow and allow them to focus on their core competencies by taking on the burden of logistics: that of getting goods from origin to destination economically and efficiently, with more visibility in the supply chain, and better customer experience,” said Entrego’s President Constantin Robertz.
To further support its investment in Entrego, AC Infrastructure will also be building a state-of-the-art e-commerce center to support back office operations. This facility can support the fulfillment of more than 100,000 orders daily when fully operational by the second half of 2019.

Empowering Businesses is Our Fulfillment

Entrego’s technology aims to level the playing field for small, medium, and large-scale enterprises across a broad spectrum of industries and sectors.
Through its ecosystem of relationships with different players in the logistics industry and driven by a dynamic team, Entrego puts itself in a unique position to scale rapidly, move with agility, and respond effectively to the evolving needs of its clients.
From you to there, Entrego delivers.

(In photo, L-R)

Rene D. Almendras, AC Infra CEO and Chairman of the Board of Entrego
Constantin Robertz, President of Entrego

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AC Infrastructure Holdings Corp. (AC Infra) is the Ayala group’s wholly owned subsidiary that pursues projects to support the growing infrastructure needs of the public and private sectors. AC Infra meets the country’s urgent needs for efficient, reliable, safe, and sustainable modes of mass transportation, transport services, and fulfilment solutions services.

For further inquiries, contact:
Ken Lerona
Head for Marketing and CSR, Entrego
ken.lerona@entrego.com.ph
Joseph Anthony M. Quesada
Corp. Comm. and Sustainability Manager, AC Infra
quesada.jam@acinfra.com.ph
May Florentino
Senior Manager, Corporate Communications
Ayala Corporation
florentino.mpp@ayala.com.ph