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FinanceAsia, Asia’s leading financial publication, has named Ayala Corporation as the Best Managed Company in the Philippines in its 15th annual survey of top public companies in the region.

This is the second consecutive year that Ayala earned the top ranking among Philippine companies. Ayala was also named Best for Corporate Governance in the Philippines for the fourth straight year and ranked second in Investor Relations.

Other listed companies in the Ayala group also figured prominently in the survey. Ayala Land and Globe were also among the country’s best managed companies. Notably, Ayala Land topped the investor relations category and was ranked second overall and for corporate governance. Globe was named fourth best managed company and ranked fourth for investor relations and seventh for corporate governance. Ayala, Globe, Ayala Land, and Manila Water were cited among Philippine companies most committed to a good dividend policy.

The country’s best CEOs were Lance Gokongwei of Universal Robina Corporation (URC), Ernest Cu of Globe, and Napoleon Nazareno of PLDT. The country’s best CFOs were Jaime Ysmael of Ayala Land, Alvin Lao of D&L Industries, and Delfin Gonzalez, Jr. of Ayala.

Other companies that landed in the top 3 of the magazine’s “best managed” categories were URC, Metro Pacific Investments Corporation, and PLDT. D&L Industries was named best mid-cap company and Concepcion Industrial Corporation led the small-cap category.

The 15th annual FinanceAsia poll, published online on March 19, received responses from over 250 portfolio managers and buy-side analysts worldwide who cover listed companies in Asia.

For more information, you may access the FinanceAsia website at: http://www.financeasia.com.

Ayala Corporation’s net income expanded 46 percent in 2014 to P18.6 billion primarily driven by the solid performance of its real estate, telecom and electronics manufacturing units and boosted by a net gain from the sale of its business process outsourcing asset.

Without the impact of the accelerated depreciation from its telecom unit’s network transformation initiative in the previous year, Ayala’s core net income actually grew 25 percent in 2014. Ayala’s profits have been growing above 20 percent for the past three years.

Ayala’s robust earnings performance was a result of the strong equity earnings contribution from its business units, which reached P24.9 billion, a 42 percent-jump from its level a year ago. This was bolstered by equity earnings from Ayala Land Inc. which rose 28 percent and the significant improvement in the contributions of Globe Telecom Inc., which more than doubled, and Integrated Micro-Electronics Inc., which expanded threefold. In addition, the P1.8 billion net divestment gain from Stream Global Services Inc. boosted Ayala’s equity earnings during the year.

The strong equity earnings from these business units counterbalanced the relatively flat contribution from the Bank of the Philippine Islands, which registered lower trading income during the year.

“We are very pleased with the performance of our business units as they continue to benefit from the aggressive growth strategy they executed a few years ago. This has, in turn, allowed us to optimize earnings and value at the parent level. We continued to invest in new areas of growth, particularly in power generation and transport infrastructure. As our business units sustain their growth momentum and the overall business environment continues to be encouraging, we are optimistic we can achieve our net income target of P20 billion this year, a year ahead of the plan,” Ayala President and Chief Operating Officer Fernando Zobel de Ayala said.

Real Estate

As the positive momentum in the real estate sector continued, Ayala Land’s net income expanded 26 percent to P14.8 billion year-on-year. The robust performance of its property development and commercial leasing operations, which rose 21 percent and 18 percent, respectively, fuelled the 18 percent-growth in Ayala Land’s real estate revenues to P93 billion. Residential revenues reached P55.9 billion, up 26 percent from a year ago on new bookings and completion of existing residential projects. Residential sales takeup remained strong, hitting an all-time high of P102 billion, 11 percent higher year-on-year. Sales from overseas Filipinos likewise improved as it now comprise 24 percent of Ayala Land’s residential bookings, which grew 13 percent to P76.7 billion. The sale of office spaces in Bonifacio Global City and Cebu likewise fuelled Ayala Land’s real estate revenues in 2014.

The opening of new gross leasable areas, full year operations of new shopping centers and offices combined with higher occupancy and average rent bolstered the 18 percent growth in Ayala Land’s commercial leasing revenues to P21 billion. This was further lifted by its growing hotels and resorts portfolio, which jumped 40 percent to P5.6 billion year-on-year. Ayala Land continued to build up its recurring income business, with malls, office, hotels and resorts and property development and construction, accounting for 38 percent of its net income in 2014.

Its capital spending in 2014 reached a record P83.3 billion, primarily spent in project completion and land acquisitions.

Telecom

Globe Telecom posted another record net income, which more than doubled to P13.4 billion year-on-year buoyed by robust revenue growth from sustained demand for data connectivity across the mobile, broadband and fixed line businesses and the tapering of depreciation charges from its network transformation initiative. The solid revenue growth, which balanced out the subsidy and operating expenses, drove the 8 percent increase in Globe’s earnings before interest taxes depreciation and amortization (EBITDA) to P39.3 billion.

Mobile revenues, which account for 79 percent of consolidated revenues, grew 7 percent to P78.1 billion, propelled by growth in the postpaid and mass market TM brands. Globe’s postpaid revenues continued to improve at P29.9 billion, up 11 percent from the previous year. Despite yield pressures on multi-SIM incidence and value-based bucket offers, its prepaid revenues improved 5 percent to P48.2 billion. Total mobile subscriber base stood at 44 million in 2014, a 14 percent-growth from its year-ago level.

Globe’s broadband business registered a 22 percent growth to P12.7 billion as it continued to launch affordable products and competitive tablet bundles. Globe’s broadband subscriber base reached 2.8 million in 2014, a 37 percent increase from the previous year. Similarly, Globe’s fixed line revenues reported improvement with data and voice segments reporting a 17 percent and 7 percent increase, respectively.

Globe believes that despite a highly competitive market, it can maintain its revenue momentum and current overall EBITDA margin level, given (1) the inroads the company has built in establishing a track record in the data space; (2) the pipeline of programs and offers, built on the back of the portfolio of partnerships with key content providers; and, (3) the additional capacities Globe has in place coming from continued investments in its data network.

Water Infrastructure

Manila Water ended 2014 at a steady pace, registering a one percent growth in consolidated net income to ?5.8 billion primarily driven by improved billed volume and higher contribution from new businesses.

Notwithstanding the absence of a tariff adjustment, the East Zone concession posted profits of ?5.1 billion on the back of a 4 percent growth in billed volume owing to a modest increase in service connections. Manila Water sustained its nonrevenue water (NRW) in the East Zone at 11.3 percent.

Manila Water’s operating units outside the East Zone concession sustained solid growth in billed volume. Laguna Water registered a 52 percent jump in profits to ?164 million following the acquisition of the water reticulation system of Laguna Technopark Inc in January 2014 and new service connections. Boracay Water and Clark Water both posted double-digit growth, expanding 32 percent and 17 percent, respectively. Manila Water’s Vietnam-based associates, Thu Duc Water, Kenh Dong Water and Saigon Water Infrastructure Corporation, contributed a total of ?357 million in earnings. Manila Water’s new businesses accounted for 11 percent of its net income in 2014.

Through a subsidiary, Manila Water delivered its first batch of water to the Metro Cebu Water District in January 2015 under the Cebu bulk water project. It provides 18 million liters per day (mld) in the first year and 35 mld of water in the succeeding years to Cebu City.

Results of the arbitration proceedings related to the rate rebasing process in the East Zone are still pending. A resolution is expected by the end of the first quarter of 2015.

International

Integrated Micro-Electronics Inc. (IMI) recorded solid growth in 2014 with net income soaring nearly threefold to $29.1 million from its year-ago level. Revenue growth was robust, up by 13 percent, to $844.5 million, outpacing the global electronics manufacturing services, which posted around 6 percent growth. Strong demand from the telecom, automotive and storage device markets helped lift IMI’s revenues in 2014.

IMI successfully completed its follow-on offering in December 2014. It listed 215 million common shares, raising ?1.6 billion in proceeds and increasing its public float level to 19 percent.

In business process outsourcing, LiveIt Investments Ltd. reported significant net income, mainly attributable to the divestment of Stream, which resulted in a P1.8 billion net gain for Ayala.

Banking

The strong performance of these businesses balanced out the decline in the net income of Bank of the Philippine Islands (BPI). BPI reported a net income of P18 billion in 2014, a 4 percent decline from the previous year. This was largely due to a 5 percent decline in non-interest income as a result of a sharp contraction in trading gains compared to the previous year as the bank reduced its reliance on securities trading.

The bank’s core lending business, however, continued to drive growth with net interest income growing 15 percent to P34.8 billion. Net loans expanded 27 percent to P800 billion year-on-year. Deposits jumped 19 percent from a year ago to P1.2 trillion. The bank registered a current and savings account ratio of 69 percent.

BPI’s operating expenses rose 12 percent attributed to the bank’s investment in infrastructure and technology as it positions itself for future growth. Cost-to-income ratio stood at 53.7 percent in 2014.

Despite the increase in its loan portfolio, the bank maintained strong asset quality and remained well capitalized in 2014 with gross 90-day non-performing loans (NPL) level dropping to 1.5 percent of total loans in the fourth quarter of 2014 from 1.78 percent the previous quarter. BPI’s reserve levels also improved to 109.3 percent of NPLs in the fourth quarter of 2014 from 107 percent the previous quarter. Equity capital stood at P144 billion, resulting in BASEL III capital adequacy ratio of 14.2 percent in 2014.

Power Generation and Transport Infrastructure

Ayala continued to ramp up its power generation and transport infrastructure units in 2014. In power, Ayala assembled 700 megawatts of attributable capacity in both conventional and renewable power generating assets. This translates to over $700 million in equity committed over the past three years in the power sector, underscoring the conglomerate’s commitment to help augment the country’s power requirements which is vital to sustaining economic growth.

In transport infrastructure, Ayala was awarded two public-private partnership projects (PPP) in 2014 together with various strategic partners. The consortium comprising the Ayala and First Pacific groups won the Automated Fare Collection System project as well as the LRT 1 Cavite Extension project together with the Metro Pacific and Macquarie groups. The conglomerate has committed around US$200 million in equity for these projects including its first PPP project, the Muntinlupa-Cavite Expressway (MCX), formerly known as Daang Hari Connector Road.

Balance Sheet and Capital Spending

Ayala parent company ended the year with a gross debt of P101 billion and cash of P48.3 billion. Its balance sheet remains comfortable with parent company net debt to equity ratio at 0.24 to 1 and consolidated net debt to equity ratio at 0.85 to 1.

Last year, Ayala raised debt and equity capital for its expected pipeline of new projects. It raised a total of $1.3 billion in proceeds through the issuance of exchangeable bonds, reissuance of preferred shares, loan drawdowns and an equity placement. This healthy balance sheet and cash position allow Ayala to pursue investments as well as cover its dividend and debt obligations comfortably.

At the parent level, Ayala has set aside P21 billion in capital spending in 2015 to fund its growing pipeline of power generation and transport infrastructure projects, among others. The Ayala group has earmarked P185 billion in combined capital expenditures this year mainly to support the massive expansion plans of its real estate and telecom units.

The above statement pertains to the disclosure submitted today, March 10, 2015, to the SEC, PSE, PDEx by Ayala’s group head for Corporate Strategy and Development Paolo F. Borromeo.

Ayala Education has partnered with Arellano University to offer a junior college program in the latter’s Pasig campus starting June this year.

In ceremonies held at the Arellano Pasig campus, LINC@Arellano junior college program (LINC@Arellano) was formally launched with Ayala Education CEO Fred Ayala, Arellano Chairman & CEO Francisco P. V. Cayco, officials from Arellano and the local government, teachers and staff, and hundreds of students in attendance.

LINC@Arellano is open to all Grade 10 graduates and is an early implementation of the Department of Education’s K to 12 Senior High School Program. LINC stands for Learning with Industry Collaboration.

Said Fred Ayala, “Ayala Education aims to deliver high quality, affordable education that can significantly enhance the career potential of students, by equipping them with practical skills through programs designed in close partnership with prospective employers.”

Through LINC, he added, students would be prepared to pursue a college degree while also being ready to enter the workforce through an entry-level job.

Cayco underscored the importance of “bridging the gap” between academic curriculum and industry needs. “The partnership with Ayala Education through LINC is one of the biggest opportunities afforded Arellano University. What this program can do is open the doors for all the students as far as opportunities in the field of accountancy and business management are concerned,” said Cayco.

Ayala Education, a unit of Ayala Corporation, sought a partnership with a recognized leader in the academe such as Arellano, which was founded in 1938 and is one of the largest universities in the country with over 30,000 students.

LINC is the Ayala conglomerate’s second venture into education. The group earlier teamed up with the UK-based Pearson, the world’s largest education provider, to roll out starting last year a chain of private high schools in Metro Manila under the new brand Affordable Private Education Center (APEC) Inc.

The Ayala group has earmarked P185 billion in capital expenditures this year as it continues to support the massive expansion plans of its core businesses, particularly its real estate and telecom units, while continuing to ramp up its investments in power generation and transport infrastructure.

A bulk of this amount is allotted to Ayala Land, Inc., which has set aside a record P100 billion to bankroll its aggressive expansion program in line with its “2020 Vision” business plan. The plan will support Ayala Land’s target to post an average growth of 20 percent annually with an end goal of reaching P40 billion in net income by 2020 from P11.7 billion in 2013.

In addition, a large portion of the conglomerate’s capital spending this year will be via Globe Telecom, Inc., which has programmed ? around P29 billion in 2015 primarily for data-related initiatives and LTE network infrastructure upgrades. ?With P8 billion from its planned capital expenditures in 2014 slid?ing into the first half of this year largely due to timing issues?, Globe’s total capital spending ?will be ?a?bou?t P37 billion in 2015.

At the parent level, Ayala Corp. will deploy P21 billion primarily to support investment programs in power generation and transport infrastructure. The rest of the amount will be deployed to fund the growth initiatives of the other business units, including Manila Water Company, Inc., Bank of the Philippine Islands, and Integrated Micro-Electronics, Inc.

“We started an aggressive growth strategy a few years back and we continue to undertake value enhancing opportunities amidst this sustained momentum in our economy. Each of our business units are seizing investment opportunities within their individual spaces under this positive environment,” Ayala Corporation Chairman and CEO Jaime Augusto Zobel de Ayala said. “In particular, we continue to strengthen our positions in power and transport infrastructure—two sectors that are presenting opportunities for investments with potential to become new growth platforms for Ayala,” Mr. Zobel added.

“We have seen robust growth in our earnings in the first three quarters of 2014 and we are optimistic that our fourth quarter growth will be at an even faster pace. We remain positive about the country’s overall macroeconomic environment this year as reflected in the aggressive capital spending we have planned out,” Ayala Corporation Chief Finance Officer Delfin Gonzalez noted. The company will release its full year financial and operating results next month.

For the first nine months of 2014, Ayala registered a net income of P14.1 billion, a 35 percent growth from the previous year primarily driven by the robust performance of its real estate, telecom and water units.

In a disclosure made today to the Securities and Exchange Commission, Philippine Stock Exchange, and Philippine Dealing and Exchange Corporation, Ayala Corporation said that GNPower Kauswagan Ltd. Co., a limited partnership owned by AC Energy Holdings, Inc., a fully-owned subsidiary of Ayala Corporation, the Philippine Investment Alliance for Infrastructure (PINAI) Fund, and Power Partners Ltd. Co., has signed definitive documentation for the financing to commence the phased construction of a 4 x 135MW coal-fired power plant in Kauswagan, Lanao del Norte.

The total project cost will be funded by both debt and equity. The debt will be financed by a syndicate of domestic banks with additional debt from international banks.

The plant will help alleviate the tight power supply situation in Mindanao. Construction of the plant is scheduled to start in early 2015.

A copy of the disclosure signed by Ayala’s group head for corporate strategy and development Paolo F. Borromeo may be found on the PSE Edge Portal.

The first toll road project bid out under the Aquino administration’s public private partnership program is set to open within the first quarter of 2015.

Formerly known as the Daang Hari-SLEX Connector Road, the Muntinlupa Cavite Expressway or MCX, is scheduled to complete construction in the next 3-4 months. The road will connect Muntinlupa City to Cavite via Bacoor.

Construction went on high gear in February 2014 when access to the interchange was obtained. As of November, construction is estimated to be over 60% complete and is expected to ramp up to 80% by year-end.

Ayala invested around P2.2 billion in the project and will operate and maintain the road for 30 years.

The toll rate for the 4-kilometer, four lane road is set at P17 for Class 1 vehicles and P34 for Class 2 vehicles. MCX is expected to relieve traffic congestion along the Daang Hari Road and Commerce Avenue and give commuters from Molino and Bacoor Cavite faster and easier access to the South Luzon Expressway.

Ayala Corporation’s consolidated net income during the first 9 months of the year expanded by 35% to a total of P14.1 billion. Robust growth from core businesses, particularly Ayala Land, Globe Telecom and Manila Water, contributed to the expansion in consolidated net income. The healthy performance across these business units helped counterbalance lower equity earnings from the Bank of the Philippine Islands (BPI), which had generated sizeable gains from securities trading during the prior year. International businesses also helped improve earnings, given the gain from the divestment of Stream Global Services, Inc. and substantial growth in income from Integrated Microelectronics, Inc. (IMI). Total equity earnings for the first 9 months amounted to P18.8 billion, representing a 35% increase from the same period last year. Without the impact of accelerated depreciation from its telecom unit’s network transformation initiative during the previous year, Ayala’s core net income grew 15%.

Ayala Corporation President and Chief Operating Officer Fernando Zobel de Ayala stated that “The strong economic environment has allowed our operating subsidiaries to show significant growth, particularly in the real estate, telecommunications, manufacturing and water services sectors.”

Real estate unit, Ayala Land, expanded net income by 25%

Ayala Land continued to expand, with net income increasing by 25% to reach P10.8 billion. Revenues were up by 20%, due to robust performance across all business segments.

Healthy growth of the property development, commercial leasing and services businesses helped raise real estate revenues by 21% to approximately P66.6 billion. Residential revenues grew by 40% to P40 billion, primarily due to increased bookings and construction progress for ongoing projects. Residential sales take-up and bookings remain solid, with increases of 18% and 15%, respectively. Gross construction services also expanded at a healthy pace of 25% to close to P20 billion.

Growth in commercial leasing of 17% was achieved due to the contribution of new shopping centers and offices, and improved occupancy of all hotels and resorts. Shopping center revenues rose 9% to P8.3 billion, office revenues grew by 19% to P3.1 billion and hotels and resorts were up by 37% to P4 billion.

Margins improved across most product lines, contributing to a wider overall EBIT margin of 31% from 29% a year ago. Capital expenditures for project completion and land acquisition amounted to P59 billion, which is in line with target.

Globe Telecom performed robustly across key services and increased revenues by 8%

Globe Telecom grew across all key services for the first nine months of 2014, generating increased gross service revenues of P72.7 billion and representing a rise of 8% from the prior year. Mobile revenues of P57.6 billion, which rose by 6% on the strength of both postpaid and prepaid subscriber growth, remain strong with Globe’s mobile subscriber base now totalling 42.9 million. Revenues from postpaid subscribers went up by 11% while growth for prepaid subscribers was 4%.

For the third quarter of 2014, mobile data revenues also expanded by 30% to P4 billion. In spite of the continued expansion in mobile data revenues, core services have remained resilient. Voice revenues rose by 5% to P8.5 billion whereas SMS revenues also grew by 3% to P7.3 billion.

Broadband and fixed line data services have also sustained their advancement over the first 9 months of 2014, with both businesses increasing revenues by 16% to P9 billion and P4 billion, respectively. Likewise, total EBITDA improved by 5% year-on-year to P29.8 billion, with strong revenue growth offsetting the increase in subsidies and operating expenses, and 3Q14 EBITDA margin widening to 43%. Core NIAT was also up by 22% compared to the previous year to P11.6 billion due to higher EBITDA, lower overall depreciation and non-operating expenses, which offset higher provisions for income taxes.

Manila Water reported solid results, with revenues and income higher by 6%

Manila Water continued to perform well, with consolidated revenues increasing by 6% to P12.2 billion as a result of steady expansion in the East Zone and escalating contribution from subsidiaries. A 4% increase in billed volume boosted East Zone revenues, with the growth of residential customers from the expansion areas of Marikina, Pasig and Rizal, as well as increased business from commercial and industrial customers as key drivers.

Outside of the East Zone, the ramp up of Kenh Dong Water in Vietnam, Laguna Water and growth in domestic concessions also contributed to the growth in billed volume. As a result, earnings contribution from new businesses account for 12% of total net income.

Overall, while consolidated cost of services and operating expenses rose by 15% to P3.8 billion due to higher direct costs and overhead costs, EBITDA improved by 3% from last year to P8.8 billion and yielded a 72% EBITDA margin. Net income also grew by 6% to P4.5 billion.

Banking arm, BPI, generated P12.8B in net income and 15% growth in net interest income

Continued outperformance by Ayala’s core businesses helped compensate for BPI’s results. BPI reported net income of P12.8 billion or a decline of 19% from net income during the same period last year, which included significant gains from securities trading. Net interest income grew 15% to P25.7 billion due to the bank’s strong loan growth and improving deposit mix. Net loans climbed 28% to P702 billion versus the previous year, whereas deposits increased 17% to reach more than P1 trillion. Non-interest income was P14.8 billion, which is 17% lower than that of the previous year largely due to reduction in income related to securities and foreign exchange trading. However, excluding securities and foreign exchange trading, non-interest income was up by 7% to P12.7 billion.

Because of the bank’s continued investment in technology and headcount expansion, operating expenses increased by 13%. Cost to income ratio as of 2014 Q3 stands at 53%. Asset quality and capitalization ratios remain robust with a 90-day NPL ratio of 1.8%, Basel III Capital Adequacy Ratio (CAR) of 15.7% and CET 1 ratio of 14.9%.

International and new businesses continue to ramp up

According to Mr. Zobel de Ayala, “Aside from our core businesses, our international and new businesses are gaining momentum. Our international businesses contributed positively to earnings this year, while our investments in the power and transport infrastructure sectors will contribute significantly to group earnings in the next few years.”

IMI maintained its positive trajectory with revenues increasing by 19% to P28.8 billion for the first 9 months of 2014 and corresponding net income surging four-fold to P930 million. Strong demand in telecommunications infrastructure, automotive electronics and storage devices contributed to IMI’s robust performance. Group-wide margins also increased by 270 basis points to 11.2% as a result of operational savings, direct material procurement and continued shift to high value products. In BPO, the P1.8 billion net gain from the divestment of Stream Global Services, Inc. booked earlier during the year contributed to the improvement in LiveIt’s earnings.

Ayala’s energy unit, AC Energy Holdings, Inc., is moving towards completion of projects. The first phase of its 2x135MW project under its joint venture company with the Phinma group, South Luzon Thermal Energy Corp., is expected to start operations in the first quarter of 2015. It has also recently finished its wind projects in Ilocos. The 19-MW expansion of its wind farm in Bangui, Ilocos Norte, was concluded last October 10 and has been delivering power to the grid. It also completed its 81MW wind farm in Pagudpud, Ilocos Norte last November 11 and has likewise begun operations.

In transport infrastructure, the company, through its wholly-owned subsidiary, AC Infrastructure Holdings, Inc., together with the Metro Pacific Group, recently signed the Concession Agreement for the 35-year LRT Line 1 concession. The consortium expects to complete certain requirements prior to taking over the existing rail line some time the second half of 2015. Ayala also expects to operate by the first quarter of 2015 its first PPP project, the Daang Hari-South Luzon Expressway Link Road Project, a 4-kilometer toll road linking the Daang Hari road to the South Luzon Expressway. To date, Ayala Corporation has committed over US$ 600 million in equity in both power and transport infrastructure projects.

As of the end of the period, Ayala has P74 billion in consolidated cash with a parent company net debt to equity ratio of 0.44 to 1. On November 5, 2014, the company issued 27 million Preferred Class “B” Series 2 shares amounting to P13.5 billion with an over subscription of P3.5 billion from the base offer. Proceeds of the issue will be utilized to refinance certain peso denominated debt obligations of the parent company.
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Ayala Corporation’s fully owned energy unit, AC Energy Holdings, Inc. (AC Energy) announced that it recently completed several power generation projects which, combined, add a total of 235 megawatts (MW) to the Luzon grid. These projects utilize both renewable and conventional power sources.

AC Energy, under its investee company, Northwind Power Development Corp., completed its 19-MW wind expansion project in Bangui, Ilocos Norte last October 10, 2014. It has since been operational and has been successfully delivering power to the grid. This expansion increases Northwind’s capacity to a total of 52MW. Following the completion of this expansion phase, the Department of Energy issued a Certificate of Endorsement for Feed-in-Tariff for Northwind’s 19-MW expansion.

Barely a month after, the Ayala-led power unit, through its affiliate North Luzon Renewable Energy Corp. (NLREC), completed another 81-MW wind farm in Pagudpud, Ilocos Norte last November 11, 2014. This wind project, which consists of 27 turbines supplied by German manufacturer Siemens, has likewise since been operational. The project is awaiting the issuance of a Certificate of Endorsement for Feed-in-Tariff from the Department of Energy. Combined, Northwind and NLREC put Ayala’s total wind power capacity at 133MW.

In addition to its wind projects, the company, in partnership with Trans-Asia Oil and Development Corp., is also reaching the final stages of completion of the first of two 135-MW CFB Coal-fired power plant units in Calaca, Batangas. The company expects to begin commercial operations of the plant by the first quarter of 2015. The second 135-MW unit is likewise planned for completion and operation by the end of 2015.

AC Energy President & CEO, Mr. Eric Francia said, “We believe the completion and operation of our two wind projects as well as the completion of our project in Calaca come very timely as these will significantly help meet the country’s immediate demand for power.” Mr. Francia added, “Ayala has always recognized the need to build both base load power and develop renewable energy sources. We continue to work on a pipeline of power projects to meet our goal of assembling around 1,000 MW in generating capacity over the next few years.”

Over the past three years Ayala has invested approximately US$500 million in equity in developing various power generating projects.

Ayala Corporation, one of the oldest and largest business groups in the Philippines, was awarded the 19th Annual IMD-Lombard Odier Global Family Business Award at the 25th Summit of the Family Business Network International (FBN-I) held October 16 in Dubai.

Given by IMD, a top-ranked global business school based in Switzerland, and Lombard Odier, one of the most respected private banks in Europe, this prize is regarded as the most prestigious recognition for successful family businesses. It recognizes the way in which multi generational families separately manage the interests of their families and businesses, combining tradition and innovation while demonstrating a clear commitment to the social and civic responsibilities of their community.

“The Ayala story is close to two centuries old, and is both fascinating and impressive,” said IMD president Dominique Turpin. “Over seven generations, this company has provided numerous lessons for other family businesses to learn from, in particular the importance of long-term vision, a broader social awareness and an ability to adapt. I warmly congratulate Ayala on winning this year’s award.”

Said Thierry Lombard, FBN-I chairman and managing partner of the Lombard Odier Group, also a seventh-generation family firm: “This award highlights the vital contribution that family businesses like Ayala make to the global economy. We want to recognize an outstanding company operating according to the very best practices and offering inspiration to its peers. Ayala’s exceptional standards show just what family businesses are capable of.”

Established in 1834 by two enterprising individuals and built by seven generations of its founding families, Ayala is a widely diversified and publicly listed conglomerate. It has leadership positions in a broad range of sectors: property development (Ayala Land), financial services (Bank of the Philippine Islands), telecommunications (Globe Telecom), electronics manufacturing services (Integrated Micro-Electronics, Inc.), water infrastructure (Manila Water), automotive distribution (Ayala Automotive) and business process outsourcing (LiveIt Investments). It also has new investments in traditional and renewable sources of power (AC Energy Holdings), transportation infrastructure (AC Infrastructure Holdings), and the for-profit education sector.

Fernando Zobel de Ayala, together with several sisters and their spouses were present in Dubai to receive the award. In a joint statement on behalf of the family, Jaime Augusto and Fernando Zobel de Ayala thanked the organizers, “We are absolutely delighted and honored to be the recipients of the IMD-Lombard Odier Global Family Business Award for 2014. As we celebrate our 180th anniversary this year, we share this award with the many generations of exceptional executives, board members, and family members that have led the company over the years.”

Previous winners include world-class companies such as LEGO, S.C. Johnson, Hermès, Barilla, Yazaki Corporation, Merck, Odebrecht, Firmenich and Bel Group.

IDEA’YALA, an inspiring new competition created by Ayala Malls and co-founded by Paloma U. Zobel, is inviting young individuals in the Philippines to develop design concepts that will define the “mall of the future”—one that is sustainable, market inclusive, and with the potential to address social and environmental concerns.

The competition, launched September 9 at the Glorietta Activity Center, invites the youth to imagine innovative mall experiences that challenge established business or market assumptions, and turn them into viable entrepreneurial and design solutions. These could be in the form of mall enhancements such as new concepts for retail, dining, and entertainment, or ideas for sustainable mall development that Ayala Malls can then implement.

Paloma U. Zobel, who graduated from Parsons School of Design and worked in product development at Estee Lauder and Tom Ford, is one of the ideators and mentors, as are Ayala Corporation corporate strategy associates Mariana Zobel and Jaime Urquijo Zobel, TBWA|SantiagoMangada Puno’s Chief Creative Officer Melvin Mangada, and Manila Music Festival co-founder Katrina Razon.

Youth innovators who will share their experiences at IDEA’YALA workshops are Robi Domingo, Gretchen Ho, Dan Matutina, Tal de Guzman, Ann Enriquez, and Louie Poco.

The panel of judges will be led by Ayala Corporation chairman emeritus Jaime Zobel de Ayala as well as Ayala Land executives Junie Jalandoni and Rowena Tomeldan.

For more information, visit http://ideayala.ayalamalls.com.ph.