AYALA REFRESHES CORPORATE BRAND

What’s in a business name? For the oldest Philippine business house, the name Ayala is as valuable as its reputation, to which it has given the utmost importance since its establishment in 1834.

What’s in a business symbol? In a yearlong celebration of its 170th anniversary, Ayala has refreshed its corporate logo as the symbol of its vision and fundamental values that have guided it over the years.

Chairman Don Jaime Zobel de Ayala, leading the celebration, recalls that Ayala began as a distillery business by two entrepreneurs when Manila was little more than a village.

“Age is no virtue in itself,” he notes. ‘What is significant is the way we have survived and prospered, and the meaning we have put into our corporate story.”

Through Ayala’s many milestones,including the decision to develop a major mixed-use community in a swampland in Makati in the 1960s, and the engagement in socio-political struggles that led to People Power uprisings in 1986 and 2001, runs a thread that weaves them all together, Don Jaime says.

“That thread is Ayala’s consistent adherence to a clear business philosophy and values,” he says. “Indeed, we have endured and prospered through the decades, not by flowing with the changing political and social tides but by standing firm on our value systems.”

In affirmation, Ayala president and chief executive officer Jaime Augusto Zobel de Ayala II, quotes the book Built to Last: “Visionary companies seek profits, but they are equally guided by a core ideology–core values and a sense of purpose beyond just making money.”

All of Ayala’s key executives cite these core values as responsible for Ayala’s reputation for superb management, outstanding products, and effective exercise of social responsibility, which have become part of its tradition and long history.

However, as Mr. Zobel points out,”these values are also what drive us in generating new ideas and continuing to innovate even as we continue our tradition of excellence in all the things we do.”

These values have won high recognition. In an annual survey of leading Philippine companies, readers of the Far Eastern Economic Review have included four Ayala companies, the highest number for a Philippine group: Ayala Corporation, Globe Telecom Inc., Bank of the Philippine Islands, and Ayala Land.

They cited Ayala Corporation and Ayala Land for their long-term vision and financial soundness; Globe for the high quality of its services and products and for innovation in responding to customer needs; and Ayala Corporation and Globe as companies that others try to emulate.

Ayala decided to review its brand as a corporation in 2003, on the eve of its 170th year. It sought to find a symbol for its new brand promise and values, to renew, re-inspire and nurture them in Ayala’s people and all other stakeholders who share them.

Mr. Zobel cited a need to find a way to strengthen and nurture Ayala continually as an institutional brand name while enhancing complementation with the name brands of its subsidiaries and subsidiaries, which have grown powerful themselves.

The brand review involved all levels of the organization. The Zobels–Jaime, Jaime Augusto, Fernando, and other key executives put their ideas together in brainstorming sessions, and employees participated in focus group discussions. They looked into their history, analyzed the present and peered into the future. To help structure the brand review, they hired Hong Kong-based Enterprise IG.

Values and promise

The first step of the process was to define the Ayala “brand promise,” a statement that acts as a directional compass and inspires everything people say and do in Ayala. The essence of the culture was found in a phrase: “Pioneering the future.” Henceforth this will be the endorsement line in all forms of corporate communication.

The brand review process surveyed the array of corporate values that operated in Ayala, to find what lay at the core. The process ultimately led to a set of four: integrity, long-term vision, an empowering leadership, and commitment to national development.

Long-term vision runs through the center of the Ayala story, as Don Jaime observes, citing the company’s many firsts in the Philippines, ranging from its development of central business districts to electronic banking, to GSM wireless phone services.

His son, Jaime Augusto, adds, “Over the past 17 decades our CEOs had visions that they converted into reality by fostering entrepreneurship and the drive for excellence. They took the best paths present in order to reap the rewards of the future.”

Integrity for the company means doing the right thing, even when no one is looking, and being held accountable for all our actions. It results in solid partnerships based on trust.

Don Jaime explains the concept of leadership that empowers: “In the face of diverse issues in increasingly complex situations, our leaders can succeed only by empowering people at all levels to make decisions and to take action within the framework of the shared vision and the culture of innovation, responsibility and accountability.”

Commitment to national development is a major reason Ayala is universally admired. This value runs deep in the soul of the organization. Other foundations recognize the Ayala Foundation as one of the most deeply involved and most operationally active among them, with its far-reaching achievements in areas of education, youth development, integrated community development, environment, technology and its programs for culture and the arts.

Renewed rallying point

With focus on the brand promise and the core values, the brand review process resulted in a symbol that renews Ayala’s rallying point for its citizens.

Retained is the unique Ayala icon, a symbol of solid achievements, which was created by the late Fernando Zobel, Don Jaime’s late uncle, who was one of the most progressive Philippine artists during his time.

Added is a new word mark “Ayala” in a warm color tone representing vigor and eagerness to continue “pioneering the future.”

At the brand launch held for Ayala officers and employees, Don Jaime declared: “Today, the Ayala name and the Ayala icon have become one symbol for pioneering the future and the core values that we have consistently upheld: integrity, long-term vision, empowering leadership, and commitment to national development.”

The Ayala icon consists of a stylized pair of double-line As, interlocking at the center. These are actually a stylized A, the first letter of the company’s name, rendered four times in blue in free space. Within the blue color are four, straight white lines which suggest movement either pointing to or emanating from the core.

In the way a flag with carefully chosen colors and elements rallies together and inspires citizens, the Ayala brand serves as an emblem and an energizing call to nurture the core values and live up to the promise of pioneering the future.

Internal and external publics

While it is intended primarily for the people of Ayala, the refreshed brand readily elicits a similar response among the investors, partners and many others in the general public who share these core values. It reinforces the Ayala reputation as the company that attracts the best people and develops the finest professionals, and is the partner of choice for the best Philippine and international corporations.

The Ayala subsidiaries and affiliates, including Ayala Land, BPI, Globe, and AC Capital, which have their own varied subsidiaries and affiliates, remain as stand-alone strategic business units. “They are,” says Mr. Zobel, “Ayala’s core business pioneering the future with Ayala.”

For the brand promise of “pioneering the future,” Ayala has created a directional symbol, the “pioneering arrow” that it can use in some of its corporate and marketing communications materials. The arrow, derived from the Ayala icon, can instantly identify business profiles, annual reports, press statements, advertisements, and websites as collaterals belonging to Ayala. The arrows will serve as the frequent visual reminder of Ayala’s promise to pioneer the future.

“Refreshed branding after 170 years makes it a true milestone for Ayala citizens, for our corporate soul,” says Mr. Zobel.

“Except in legal documents, we will no longer use our legal entity name Ayala Corporation,” he says. “We will be simply known as Ayala.”

AYALA DECLARES 20 PERCENT STOCK DIVIDEND

In a disclosure to the Securities and Exchange Commission and the Philippine Stock Exchange, Ayala Corporation announced that its Board of Directors approved on January 20, 2004, the declaration of a 20 percent stock dividend to all stockholders of record as of April 16, 2004, payable on May 12, 2004.

For this purpose, the books of the corporation will be closed for the transfer of shares from April 13 to April 16, 2004, inclusive.

The above declaration will be submitted for the ratification of the stockholders in the corporation’s Annual Stockholders’ meeting on March 26, 2004 as required by law.

AYALA CORPORATE VIDEO REACHES NEW YORK FESTIVALS FINALS

Ayala’s corporate video “What makes a good company great?” will be awarded as finalist of the International Award Competition for Film and Video of the New York Festivals on January 30.

A total of 662 entries from 29 countries competed in the Film and Video competition. The New York Festivals has honored excellence in creative communications worldwide for nearly 50 years.

The Ayala video, a five-minute audio-visual presentation shown to the company’s various stakeholders last year, is the only Philippine entry that reached the finals in the Industrial Productions-Public Relations-Corporate Image category.

Given challenging times for the Philippines in 2003, Ayala chose “Responsible Stakeholder Relations through Corporate Governance” as the theme of its five-minute audio visual presentation and articulated it through the tagline: “What makes a good company great? The people who stand by it.” It expanded the concept to reflect not just corporate stakeholder relations but also unity and stakeholder relations in Philippine society. The campaign was elevated to a national level: “What makes a country great? The people who stand by it?”.

As finalist, the Ayala video bests entries from France, Mexico, Malaysia, Singapore, Scotland, Canada, and Finland. Winning entries represent Germany, USA, the United Kingdom, The Netherlands, and Australia.

Other finalists are entries from China, USA, South Africa, and Ethiopia.

REVIEW 200 SURVEY LISTS BEST PHILIPPINE COMPANIES

Ayala Corporation led Philippine companies in management’s long-term vision for the ninth consecutive year in Far Eastern Economic Review’s Review 200 survey of Asia’s leading companies in 2003.

This confidence among senior management, business owners, and other business executives and professionals who responded to the survey was earned by Ayala’s strategic directions over the years. These included the growth of its subsidiary Globe Telecom, the sale of Pure Foods Corporation, and the industry leaderships of Ayala Land, Inc. and Bank of the Philippine Islands (BPI).

The 11th Review 200 survey asked FEER readers to rank 153 multinational corporations and between 29 and 40 local companies in 12 countries in five leadership categories: high-quality services and products, long-term management vision, innovative response to consumer needs, financial soundness, and a company that others try to emulate.

In the Philippines, strong consumer demand buoyed Jollibee Foods Corporation in the top spot for the sixth consecutive year and pushed San Miguel Corporation to second place. They were followed closely by Ayala Corporation in third place, Globe Telecom in fourth, and BPI in sixth.

Ayala also ranked second in financial soundness and third among companies that others try to emulate. In addition, BPI ranked first in financial soundness while Globe Telecom ranked third in high quality services and products, second most innovative in responding to customer needs, and fourth among companies that others try to emulate.

Ayala Land, Inc., a new entrant to the Review 200, was considered favorably by respondents and posted strong ratings in three categories. It earned the 7th spot among company leaders in the Philippines and was third in long-term vision and fifth in financial soundness.

“Besides Globe, Ayala Land also contributes to Ayala Corp.’s bottom line, as does Bank of the Philippine Islands, the only commercial bank in the top 10, noted FEER.

Year of Optimism

The Review 200 survey noted “a mood of optimism’s despite a year that plagued regional economies with the Severe Acute Respiratory Syndrome and conflict in Iraq. Close to the two-thirds of respondents believed that business would improve in 2004.

A similar attitude of optimism is also apparent in the Philippines with 49.3 percent of respondents believing that business prospects will be better next year and 30 percent saying that prospects will be much the same as 2003.

AYALA CORPORATION SIGNS DEFINITIVE AGREEMENT TO PURCHASE GLOBE SHARES FROM DETEASIA

In a disclosure to the Philippine Stock Exchange and Securities and Exchange Commission, managing director and compliance officer Renato O. Marzan said that Ayala Corporation has signed today a definitive agreement covering the purchase from DeTeAsia Holding GmbH of 10,037,565 common shares of Globe Telecom, Inc. at P 680 per share.

The transaction is expected to close on 30 October 2003 and is subject to exchange and regulatory approval.

AYALA CORPORATION CONFIRMS ARRANGING TERM LOAN FACILITY

In a letter to the Philippine Stock Exchange, Ayala Corporation confirmed that its wholly owned subsidiary AC International Finance Limited (ACIFL) has arranged a US$100 million syndicated term loan facility with BNP Paribas, Standard Chartered Bank and ING Bank.

The purpose of the loan is to refinance ACIFL’s maturing loan obligations in 2004 and not to fund the acquisition of the 10.04 million shares of Globe Telecom that Ayala Corporation has agreed to purchase from DeTeAsia Holding GmbH.

AYALA CORPORATION ACCEPTS OFFER FROM DETEASIA

Ayala Corporation has accepted the offer from DeTeAsia Holding GmbH (DT) to purchase 16,037,565 common shares of Globe Telecom, Inc. at P 680 per share.

Ayala has advised DT that it reserves its option to designate Globe Telecom Inc. or any of its affiliates or another affiliate of Ayala to purchase part of its Accepted Shares prior to the execution of the share purchase agreement.

The above information is being disclosed in accordance with the disclosure rules of the Securities and Exchange Commission and the Philippine Stock Exchange.

(Sgd) RENATO O. MARZAN
Managing Director & Compliance Officer

AYALA CORPORATION RECEIVES NEW OFFER FROM DETEASIA ON GLOBE STAKE

Ayala Corporation and Singapore Telecom International Pte. Ltd. have received late yesterday, 13 October 2003, from DeTeAsia Holding GmbH (DT) a new offer to sell DT’s entire shareholdings in Globe Telecom, Inc. The offer covers 37,674,681 common shares of Globe. The new offer however is not contingent upon all of the total number of shares offered being purchased by Ayala and Singtel.

Ayala and SingTel will evaluate DT’s offer and will revert to DT within 45 days with their decision in accordance with the rights of first offer among the three parties.

The above information is being disclosed in accordance with the disclosure rules of the Securities and Exchange Commission and the Philippine Stock Exchange.

(Sgd) RUFINO LUIS T. MANOTOK
Managing Director, Corporate Strategy

AYALA CORP TO RECEIVE 63.375 MILLION NEW AYALA LAND COMMON SHARES

In a disclosure to the Securities and Exchange Commission and the Philippine Stock Exchange, Ayala Corporation announced that it will receive 63.375 million new common shares from Ayala Land, Inc. (ALI) in exchange for AC’s conveyance to ALI of a 2,340 sq. m. lot at Greenbelt, along Makati Avenue, Makati City. The issuance of the new shares was approved today by the Board of Directors of ALI.

The issuance by ALI of the new shares is in pursuance to an earlier resolution of its stockholders approving the authority to issue new shares in exchange for properties needed by the corporation for its development and landbanking activities. The exchange will enable ALI to consolidate its ownership of the 11-hectare Greenbelt property, currently undergoing the initial phase of a major redevelopment. A new site will be provided for a state-of-the-art Ayala Museum which is integral to the unique leisure environment being created in Greenbelt. The new museum, with over 6,000 square meters of floor space, is expected to be completed in early 2004.

MANILA WATER COMPANY TO ISSUE NEW PREFERRED EQUITY SHARES TO AYALA

In a special meeting of the board of directors and stockholders of Manila Water Company (“MWC”), Ayala Corporation agreed to subscribe to P310 million in new preferred equity shares to be issued by MWC. The shares, totalling P500 million, are part of a capital restructuring being undertaken by MWC.

Also approved in the meeting was MWC’s acquisition of the shares owned by one of its foreign shareholders, International Water (IWL) S.a.r.l. (formerly BEn MWSS Holdings Ltd.), a subsidiary of US-based Bechtel Corporation.

The capital restructuring and issuance of the new Shares will be implemented upon completion of MWC’s acquisition of the shares of IWL.