Category: News

AYALA CORPORATION 
1Q 2021 EARNINGS RELEASE 
May 14, 2021

Ayala’s net profit sustains sequential growth in the first quarter

 1Q21 vs 4Q20 Highlights

• Ayala’s core net income, which excludes the significant increase in BPI’s loan loss provisions and one off items such as the retroactive effect of the CREATE law and the additional remeasurement loss  taken for Manila Water, grew five percent to ₱7.2 billion in the first quarter of 2021 from the fourth  quarter of 2020. This is also at par with the core net income generated in the first quarter of 2019,  pre-pandemic.  
• This quarter-on-quarter improvement in core net income was primarily driven by Globe from stronger contribution from its home broadband segment and AC Energy from its commercial operations. 
• This cushioned the weaker performance of Ayala Land, AC Industrials, and AC Ventures. ▪ On the other hand, Ayala’s reported net income, which includes the abovementioned items, declined  seven percent to ₱5.4 billion. 
•  On the other hand, Ayala’s reported net income, which includes the abovementioned items, declined  seven percent to ₱5.4 billion.

“The challenges and prospects brought about by the pandemic is an opportune time to recalibrate Ayala’s  portfolio strategy. In the next three years, we aim to sharpen the components of our portfolio to optimize  returns and further strengthen our balance sheet. We will place greater emphasis on portfolio strategy  with a sharper focus on optimizing returns from existing businesses and a disciplined process on capital  deployment. In parallel, we will actively explore opportunities for value realization to fund future  investments,” Ayala President and CEO Fernando Zobel de Ayala said. 

1Q21 vs 1Q20 Highlights 

• Ayala’s core net income declined nine percent to ₱7.2 billion in the first quarter from the same period  last year.
• Meanwhile, Ayala’s reported net income dropped 19 percent to ₱5.4 billion:  
  •  Ayala Land recorded a 36 percent net income decline to ₱2.8 billion as the pandemic  continued to affect its business operations.
  • BPI posted a net income decline of 22 percent to ₱5 billion as a result of a one-time tax  adjustments in connection with previously booked loan provisions following the retroactive  implementation of the CREATE law. 
• On the other hand, Globe and AC Energy posted double-digit net income growth during the period:
  • Globe’s net income increased 11 percent to ₱7.3 billion from the combined effect of higher gross  service revenues, decline in non-operating charges, and significant upside from the retroactive implementation of the CREATE law. 
  • AC Energy posted a net income growth of 24 percent to ₱2.4 billion, driven by higher earnings  from both international and Philippine businesses. 

Real Estate 

•  Ayala Land’s consolidated revenues and net income decreased 13 percent to ₱24.6 billion and 36  percent to ₱2.8 billion, respectively in the first quarter of 2021 as it continued to weather the impact  of the ongoing COVID-19 pandemic.  
•  Property development revenues saw a modest decline of six percent to ₱16.2 billion, cushioned by higher bookings and construction progress.
  • Residential revenues were flat at ₱13.6 billion. 
  • Office for sale revenues surged 85 percent to ₱1.8 billion.
  • Commercial and industrial lots decelerated 67 percent to ₱818 million. 
• Residential sales reservations reached ₱28.5 billion, 15 percent higher than the previous year’s level,  as local demand remained strong despite the quarantine.  
  • First quarter sales reservations were up 35 percent from the previous quarter’s ₱21.1 billion.
• Commercial leasing revenues registered a 41 percent decline to ₱5.1 billion as operations of malls,  hotels, and resorts remained restricted. 
  • Shopping center leasing revenues went down 58 percent to ₱2 billion
  • Office leasing income improved two percent to ₱2.5 billion, driven by sustained BPO and  headquarter operations. 
  • Hotels and resorts rental revenues decreased 60 percent to ₱640 million.
• Capital expenditures reached ₱15.3 billion in the opening quarter of the year, 17 percent of full-year ₱88 billion budget.
• AREIT Inc., the country’s first Real Estate Investment Trust, recently secured the approval of its  shareholders for the property-for-share swap transaction with Ayala Land. The asset infusion,  composed mainly of ALI’s office leasing properties located within its prime estates, will expand AREIT’s leasing portfolio to 549,000 square meters and increase its deposited property value to ₱52 billion  upon securing regulatory approvals.

Banking

• BPI posted a net income of ₱5 billion in the first quarter of 2021, 22 percent lower in the same period  last year due to the net effect of one-time tax adjustments from the effectivity of the CREATE law. Net  income before taxes on the other hand grew five percent to ₱8.9 billion in the same period. 
•  Total revenues decreased two percent to ₱24.3 billion due to lower net interest income partially offset  by non-interest income growth.
  •  Net interest income dropped seven percent to ₱16.9 billion on the back of a 31-basis point  contraction in net interest margin, which stood at 3.31 percent. 
  •  Non-interest income increased 12 percent to ₱7.4 billion due to robust fee income that came  from higher fees from bancassurance, asset management, transaction banking, and  investment banking businesses.
• Total loans declined by five percent to ₱1.4 trillion because of softer demand across most loan  products, except for mortgage and microfinance which registered 11 percent growth each.  
• Total deposits were flat at ₱1.7 trillion with CASA growth of 12 percent being offset by the 34 percent  decrease in time deposits. 
  • CASA ratio stood at 82.6 percent. 
  • Loan-to-deposit ratio ended at 81.6 percent. 
• The bank recognized ₱3.6 billion in provisions, 13 percent lower in the same period last year. NPL  ratio stood at 2.76 percent and NPL coverage ratio reached 123.5 percent.
  •  Operating expenses declined two percent to ₱11.8 billion, while cost-to-income ratio improved to 48.6 percent from 49 percent in the same period last year.
• BPI launched several new products and services since the start of the year to better address the  evolving needs of its customers: 
  •  BPI customers can now open a dollar savings account through the BPI mobile app as an  addition to their existing peso account.
  •  BPI now uses mobile keys for select mobile transactions to enhance security and efficiency. ▪ The bank’s digital platform now allows users to transfer funds to other banks using QR codes,  mobile numbers, and email addresses.
  • Through a digital order taking facility, clients can now avail of select loans and credit card  services purely through BPI’s digital platform. 
  • On the corporate side, BPI launched a fully digital auto-debit platform that shortens billers’  collection period for enrolled clients from 20 banking days to just one banking day.

Telco

• Globe’s net income increased 11 percent to ₱7.3 billion in the first quarter of 2021 as the decline in  non-operating charges fully offset the rise in depreciation expenses. Additionally, the improvement  in net income was a result of lower taxes from the retroactive impact of CREATE law.
  •  Excluding the impact of CREATE law, normalized net income decreased 27 percent to ₱5  billion.
• Total service revenues grew three percent to ₱37.8 billion driven by data revenues led by mobile data  and home broadband. Total data revenues accounted for 79 percent of total service revenues, a  growth of 400 basis points from the same period last year.
• Growth in data was present in all segments, most evident in the upward momentum of Globe’s mobile data and home broadband categories.
  • Mobile data revenues increased four percent to ₱19.2 billion. 
  •  Mobile data traffic climbed 60 percent to 836 petabytes.
  •  Home broadband revenues soared 27 percent to a record ₱7.4 billion.
  • Home broadband subscriber base grew 81 percent to over 4 million customers. ▪ Corporate data increased by ₱13 million from ₱3.3 billion in the same period last year. 
• EBITDA dropped 11 percent to ₱18.3 billion on the back of higher expenses across expense line items except for interconnection fees and repairs and maintenance. 
  •  Operating expenses including subsidy grew 19 percent to ₱19.5 billion.
  • EBITDA margin consequently contracted to 48 percent from 56 percent last year.
• Capital expenditures surged 79 percent to ₱19.1 billion, representing 51 percent of gross service  revenues and 105 percent of EBITDA. Moreover, 91 percent of the investment went primarily to data related requirements. 
• As a result of continuous modernization of its network to make 5G as well as fiber technology available  to more customers nationwide, Globe improved its data infrastructure versus the same period last  year:
  • New cell towers ramped up to 318, an improvement of 152 percent 
  • Builds for sites for wireless 4G LTE and 5G reached 4,210 sites, a growth of 106 percent 
  • Installed over 287,000 high-speed lines, an increase of 212 percent

Power

• The AC Energy group registered a net income growth of 24 percent to ₱2.4 billion in the first quarter  of 2021, driven by higher earnings from both international and Philippine businesses. Contribution from the group’s international assets increased 61 percent to ₱952 million driven by fresh contribution  from the Vietnam wind farm, and higher interest income on development loans. Net income  contribution from its listed subsidiary, AC Energy Corporation or ACEN grew 24 percent to ₱628 million due to better results from its commercial operations, higher contribution from renewables,  and improved thermal availability. 
• The AC Energy group is in the process of transforming its listed subsidiary ACEN to become the  group’s main energy platform. ACEN’s recapitalization consists of fresh capital raising of ₱27.5 billion  from the recently concluded ₱5.4 billion Stock Rights Offering last January, the ₱11.9 billion private  placement to GIC affiliate Arran Investment that was completed last March, and proceeds worth ₱10.3  billion from the follow-on offering which is expected to be completed with the listing of 1.58 billion  primary shares on May 14.
• The transformation also includes the infusion of the AC Energy group’s international platform into  ACEN, in a deal valued at ₱85.9 billion. The shareholders ratified the deal during its Annual  Stockholders meeting last April 19. The transaction is currently undergoing regulatory approval  process, with target completion by the end of 2021. 
• Upon the completion of its transformation, ACEN will have approximately 2,500MW of attributable  capacity, of which around 1,900MW or 78 percent is from renewables sources. AC Energy’s vision is  to reach 5GW of renewables capacity by 2025, and it aspires to be the largest listed renewables  platform in Southeast Asia. 

Water

• Manila Water’s net income declined eight percent to ₱1.3 billion in the opening quarter of 2021 from  the combined effect of lower billed volume across the group and lower supervision fees, coupled with  recognized net foreign exchange gains that were partially offset by lower equity share in net income  of associates. Excluding one-offs, net income declined 32 percent to ₱1.3 billion.
• Revenues decreased 12 percent to ₱4.9 billion due to lower billed volume and lower supervision fees,  which continue to be impacted by the COVID-19 health crisis.
• EBITDA declined five percent to ₱3.2 billion despite a decrease in cost of service and operating  expenses. EBITDA margin improved 500 basis points to 67 percent.
• In March 2021, Manila Water executed a Revised Concession Agreement with government for the  operation of the waterworks and sewerage services in the East Zone. The revised agreement confirms  the continuation of the concession until July 31, 2037. Largely adopting the New Clark City Joint  Venture Agreement framework, the agreement has several key features such as the setting of a fixed,  nominal rate of return, the removal of corporate income taxes from tariff collection, discontinuation  of the foreign currency differential adjustment, and the setting of tariff caps for rate adjustment. The  Revised Concession Agreement will be covered by an Undertaking Letter and service obligations will  be adjusted in line with the new standards defined under the agreement. To help alleviate customers’ plight amid the challenges brought by COVID-19, the Revised Concession Agreement includes a tariff  freeze until December 31, 2022.

Industrial Technologies 

• AC Industrials narrowed its net loss to ₱200 million in the first quarter of the year on the back of  improved contributions across its global manufacturing businesses and local automotive operations. 
• From a net loss in same period last year, IMI recorded a net income of US$2.2 million in the first  quarter amid tight supply levels in the electronics component market.  
  •  Revenues increased 28 percent to US$328 million from improved demand compared to the  same period last year, which was heavily impacted by the first stages of the global health crisis.
  •  Similarly, top line from its wholly owned businesses grew 22 percent to US$255 million with  the continued recovery of mobility and industrial end-markets.
  • IMI’s non-wholly owned subsidiaries posted a revenue growth of 55 percent to US$73 million  as it transitions towards high growth automotive and industrials customers.
• AC Motors significantly reduced its net loss to ₱39 million as demand in the Philippine automotive  market continues to improve. Sales across its automobile portfolio, which includes Honda, Isuzu,  Volkswagen, Kia, and Maxus exhibited quarter-on-quarter growth during the period.

Balance Sheet Highlights 

• Parent level cash stood at ₱20.6 billion.
• Net debt stood at ₱104.5 billion. 
• Parent net debt-to-equity ratio stood at 80 percent.
• Consolidated net debt-to-equity stood at 62 percent.
• Loan-to-value ratio, the ratio of its parent net debt (excluding the fixed-for-life perpetuals which have  no maturity) to the total value of its assets, was at 10.7 percent.
• Parent-only CAPEX stood at ₱2.6 billion, bulk of which went to the newer businesses of Ayala. 
• On May 11, 2021, Ayala Corporation priced the first tranche of its ₱30 billion Debt Securities Program  and is currently applying for a Certificate of Permit to Offer Securities for Sale of the first tranche  under the said program. The first tranche has an aggregate principal amount of up to ₱10 billion, with  a base offer of up to ₱6 billion and an oversubscription option of up to an additional ₱4 billion. The  first tranche consists of 3.0260% Series A Bonds due 2024 and 3.7874% Series B Bonds due 2026. The  indicative offer period will run from May 17 to 21, 2021 and the Bonds are intended to be issued and  listed at the Philippine Dealing & Exchange Corporation on May 28, 2021, subject to market  conditions and receipt of regulatory approvals.

7 May 2021 – The Ayala group of companies officially turned over to Marinduque the province’s  first and only molecular lab which is expected to drastically cut down the current 7 to 14 day  waiting period for Covid testing done through Manila-based laboratories.  

Housed within the Marinduque Provincial Hospital in the municipality of Boac, the laboratory was  designed and constructed under the supervision of AC Health and Ayala Foundation, with the  assistance of Makati Development Corporation, the construction arm of Ayala Land Inc.  

Since the pandemic started, Marinduque depended on laboratories in Metro Manila, particularly  the Research Institute for Tropical Medicine, to confirm COVID-19 cases. Because of the relative  isolation of the island province and its distance from testing laboratories, cases often took over  a week or more to confirm, which posed a challenge to local efforts to contain the spread of the  virus. Once operational, the new molecular laboratory will significantly improve and speed up  the testing capacity of the province.  

The new facility was received by Marinduque Governor Presbitero Velasco Jr. in a virtual turnover  event. Representing the Ayala group were Paolo Borromeo, President and CEO of AC Health; Ruel  Maranan, President of Ayala Foundation; and Solomon Hermosura, Chief Legal Officer of Ayala  Corporation.  

The Marinduque molecular laboratory is part of the Ayala group’s continuing initiatives that sup port the public sector’s COVID-19 efforts, particularly in improving testing capacity. In the past  year Ayala constructed laboratories and quarantine facilities, provided testing equipment, and  donated testing kits, among others.  

“This molecular laboratory is a very vital tool for Marinduque to be able to contain and eventually  defeat the very deadly virus,” said Gov. Velasco. “We were very glad [when the proposal] to set  up the molecular laboratory was relayed to us. Now we have the laboratory constructed. Indeed  this is a very important step in our plan to contain and eventually rid the province of the deadly  virus.”  

“AC Health and the Ayala Group are delighted to partner with the Province of Marinduque,” said  Borromeo. “Testing is a vital component of the country’s public health response, and we are  happy to support Marinduque’s initiatives to improve access to testing. We believe that the pub lic and private sectors must work together to beat this virus, save lives, and accelerate recovery.” 

“It is our privilege to partner with the Provincial Government of Marinduque for meaningful and  relevant initiatives like the molecular laboratory project, as well as various education and com munity programs,” said Maranan. “We continue to stand with the people of Marinduque, as they  stay resilient in the face of various challenges.”  

Aside from constructing the molecular laboratory, the Ayala group also provided various forms  of assistance for students, teachers, and health front-liners in Marinduque in the past month. 

Under the Brigada ng Ayala program, Ayala Foundation distributed at least 675 hygiene kits, 100  Globe Home Prepaid WiFI kits, and 4,000 children’s books (from a donation by UBS Securities  Philippines.), to be used by students and teachers from Boac Central School and 10 public ele mentary schools in the town of Torrijos. Teachers and students also received vitamin supple ments. Brigada ng Ayala is the Ayala group’s unified support for the Department of Education’s  Brigada Eskwela and Oplan Balik Eskwela programs.  

The foundation also turned over 1,250 face masks and 250 personal protective equipment (PPEs)  for use by health front-liners at the Marinduque Provincial Hospital.  

In addition, the town of Torrijos is one of the sites for ProFuturo, a digital education program  implemented in the Mimaropa region by Ayala Foundation. ProFuturo, which is implemented in  10 public elementary schools in Marinduque, uses digital technology to provide access to quality,  transformational, and universal education, and through it, access to equal opportunities for students. It focuses on enhancing teachers’ skills, methods, and competencies, and leveraging on  digital technologies.  

For more information:  

YLA ALCANTARA
Head, Brand and Reputation Management
Ayala Corporation
e-mail – alcantara.ypg@ayala.com

CELERINA AMORES
Senior Director, Corporate Communications 
Ayala Foundation
e-mail – amores.cr@ayalafoundation.org  

MANILA, April 23, 2021 – Today, after the company’s Annual Stockholders Meeting and as announced last December 2020, Ayala Corporation (AC) transitioned the position of Chief Executive Officer from Jaime Augusto Zobel de Ayala to Fernando Zobel de Ayala, who has been designated President and CEO. Jaime Augusto Zobel de Ayala will focus on his role as Chairman of the Ayala Board. Jaime and Fernando will continue to represent Ayala, retaining their current roles, as Chairman or Vice-Chairman, in the subsidiary boards of various Ayala group companies.

In his remarks, Fernando lauded Jaime for the latter’s outstanding leadership and track record of creating shareholder value in his 26 years of tenure as CEO. “Since 1995, our market capitalization expanded more than sixfold; our net income similarly grew more than six times. Since 1995, we rewarded our shareholders with dependable returns that averaged at 15 percent per annum. Over that period, we cumulatively paid P118 billion in dividends to our common shareholders.”  

Beyond the stellar financial returns, Fernando also cited and thanked Jaime for his strategic five-point legacy which Fernando said will serve as a firm foundation for Ayala Corporation’s future sustainable growth: 

1. Stronger, expanded and balanced portfolio mix. In the last 26 years, Ayala made massive and transformative investments in real estate, banking, telecommunications, energy, water, health, education, and logistics where large societal gaps exposed opportunities to serve a broader, more inclusive set of customers, generate meaningful returns and improve our risk-resilience;  
2. A culture of relevant and relentless innovation where Ayala’s inspired teams sparked new or enhanced solutions to remain relevant to the dynamically changing needs of customers;
3. Rigorous financial management discipline, thus enabling decisive investments to capitalize on opportunities and generate attractive returns, while strengthening risk-resilience especially in times of crises, including the current COVID-19 pandemic; 
4. Championing the alignment of Ayala’s corporate ambition and goals with world-class standards for sustainability; and environmental, social, and corporate governance; and
5. Placing Ayala at the forefront of the evolving role of corporations to address society’s pain points—to create inclusive and sustainable prosperity for all stakeholders and to aid in nation-building. 

“As incoming President and CEO, I aim to build on the firm foundation that Jaime established, guided by our core strategy of maintaining leadership and relevance in the markets we serve,” Fernando said.  “To support this, we will place greater emphasis on our portfolio strategy with a sharper focus on optimizing returns from existing businesses, a highly disciplined approach on capital deployment; and explore opportunities for value realization initiatives to fund future investments.” 

Fernando said that Ayala will continue to support the expansion of its core value drivers—Ayala Land, BPI, Globe, and AC Energy, while scaling up its healthcare and logistics businesses through AC Health and Entrego. In total, Ayala Group is allocating a combined capex of P196 billion in 2021.      

During the meeting, Fernando also congratulated three senior executives who have been given new roles in the Ayala Group. Ayala Corporation’s CFO, TG Limcaoco, takes the helm at BPI as President and CEO; upon the retirement of his predecessor, Bong Consing.  Bong will continue to be engaged with the Ayala Group as a member of the Board of Directors of BPI, Ayala Corporation, Globe Telecom and AC Energy Corporation. Albert De Larrazabal, most recently Globe’s Chief Commercial Officer, succeeds Limcaoco as AC’s CFO.  Eric Francia, current President and CEO of AC Energy, was appointed to concurrently chair AC’s Investment Committee. 

“We are cautiously optimistic about the business environment and will continue to prepare for a post-pandemic economic recovery. We are hoping for a successful implementation of the country’s vaccination program that would pave the way for a revival of the economy,” Fernando said. “With a healthy balance sheet and a set of diversified and strong franchises in our portfolio, we are confident that we will come out of this difficult period stronger.” #    

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For more information:

YLA ALCANTARA

Head, Brand & Reputation Management

e-mail – alcantara.ypg@ayala.com

FACTS AND FIGURES: 

AYALA’S PERFORMANCE IN 2020 & 2021 PRIORITIES

For the full-year 2020, Ayala Corporation reported a net income of P17 billion, 51 percent lower than the previous year. Much of this decline is attributed to non-recurring items, such as provisions booked by various businesses, an accounting reclassification, and the non-recurrence of divestment gains from its power and education units. Excluding such, the year-on-year contraction in Ayala’s net profits was at 16 percent. For 2021, the Ayala Group has allocated a combined capex of P196 billion to support the continued expansion of its core businesses and fund emerging opportunities in the healthcare and logistics sector.   

• In 2020, Ayala Land pioneered the country’s first real estate investment trust called AREIT, which raised P12.3 billion in proceeds and encouraged other property developers to launch their own REIT vehicles. For 2021, ALI has programmed P88 billion in capital expenditures. It is prepared to launch P100 billion-worth of residential projects as it gears for recovery in the next two to three years.    

• BPI’s substantial investments in digital transformation, over the last 3 years, enabled the bank to meet the changing, alternative banking needs of its customers; and become a leading digital bank. BPI’s mobile app was the most downloaded banking app during the pandemic. Fifty-two percent of the bank’s customers are now digitally enabled; more than half of them are active users; and an average of 70 percent of total transactions are now done online.   

• In 2020, Globe Telecom invested P60 billion in capital expenditure, 18 percent higher than in 2019. Globe built nearly 1,300 new cell sites, upgraded more than 11,500 sites to 4G/LTE technology, and deployed 5G sites in various cities and provinces. For 2021, Globe earmarked a record P70 billion in capital spending to support the shift in demand from mobile to home broadband.  

• Mynt’s GCash is now the number one finance app in the country, serving over 33 million users or one in every three Filipinos. With the exponential growth of GCash in 2020, not only has it topped the Finance App Category when it comes to active users, but it has also gone ahead of global social media and entertainment apps like Tiktok, Twitter, Netflix, Grab, Spotify, and Viber, based on App Annie, a reputable global app ranking authority. Last year, the value of transactions that passed through GCash crossed P1 trillion, which was double that of the combined totals for the three-year period of 2017 to 2019. GCash recently attracted USD175 million in fresh capital, including an investment from Bow Wave, a New York-based private equity fund. With a post-money valuation of nearly USD1 billion, this investment validates GCash as a formidable player in contributing to and transforming financial services in the country. 

• AC Energy has set a bold goal to build five gigawatts of renewable energy by 2025 and become one of the largest listed renewables platforms in Southeast Asia. In 2020, AC Energy continued its aggressive geographical expansion, and now currently operates in five markets—the Philippines, Vietnam, India, Indonesia, and Australia. It is transitioning to a low carbon portfolio and is committed to divest all its coal assets by 2030.   

• In 2020, IMI’s subsidiary, VIA Optronics, a leading supplier of enhanced display solutions, was listed on the New York Stock Exchange. VIA’s IPO resulted in proceeds of USD94 million, and a valuation that implied a 34 percent gain from its acquisition price. Meanwhile, IMI’s parent AC Industrials narrowed its losses to P1.8 billion in 2020, despite manufacturing disruptions during the year. It also posted a net profit in the fourth quarter after restoring plant operations to full capacity, improving factory efficiency, and optimizing margins from contract negotiations. AC Industrials’ array of disruptive technology is poised to ride on emerging megatrends around autonomous vehicles, more electronic components in automobiles, and green energy.  

• In 2020, Manila Water continued to deliver the necessary infrastructure towards the fulfillment of its service obligations, spending P12.1 billion in capital expenditures—81 percent was channeled to the East Zone Concession to carry out various projects on wastewater expansion, network reliability, and water supply. The entry of Trident Water of the Razon group to Manila Water will enable the regulated company to seek expansion opportunities locally and internationally. 

• Leveraging its nationwide reach, AC Infrastructure’s Entrego has gained a foothold serving major e-commerce players in the country. Over the past year, its revenues grew 10 times since 2018 and volume of packages delivered doubling since the start of the pandemic. It aims to expand its presence across the broader logistics supply chain, including contract logistics and freight forwarding.   

• AC Health is scaling up its portfolio to take advantage of the momentum in the healthcare ecosystem. It completed the acquisition of a majority stake in QualiMed Health Network last February, complementing AC Health’s 85 outpatient clinics and 80 corporate clinics under the Healthway brand, as well as the country’s first specialty cancer hospital, which is set to open in 2023. Its telemedicine brand, HealthNow, proves to be a great alternative medical consultation solution, alongside online purchasing of medicines and scheduling of onsite clinic appointments. Currently, HealthNow is the most downloaded medical app on App Store.  

• In 2020, the Ayala Group spent a total of P13.2 billion in various initiatives to help employees, partners, customers, the broader community and the country cope with the impact of the COVID–19 pandemic.

• When the government implemented ECQ on March 2020, Ayala’s first response was to protect employees and help assure their peace of mind, financially and physically/medically. An emergency assistance package, which consisted of a mix of wages, leave conversions, loan deferments, and advance release of employee bonuses, was rolled out so employees feel financially secure.   Contract workers who would have been on a “no-work, no-pay” dilemma (including personnel, maintenance staff, and construction workers) also received financial assistance from the Ayala group. Consistent with DOH mandate, strict health protocols were implemented to ensure the safety of essential workers who had to be physically present at work. Shuttle services, sleeping quarters, and regular testing were made available as well. 

• In 2020, Ayala sought to also protect its extended business community. Aside from offering loan payment extensions, waivers of fees and interest charges and rent reprieves to our partners and mall tenants, the Ayala group also launched the Ayala Enterprise Circle as a platform to engage, upskill, connect and empower the over 250,000 SMEs who are either clients or partners of Ayala.  

• For the broader Filipino community, Ayala worked with the Philippine Disaster Resilience Foundation and Caritas Manila on Project Ugnayan, where over 270 private entities convened to raise P1.7 billion worth of food vouchers for over 14 million of the most economically vulnerable individuals in the Greater Manila Area.  Ayala also actively contributed towards capacitating the national and local governments’ response to the pandemic. Through Task Force T3, Ayala converted the World Trade Center into a 502-bed isolation facility. It donated the swabbing booths for the national government’s four mega swabbing centers, and it also converted two QualiMed hospitals into COVID referral centers, complete with appropriate testing and critical care facilities, including ventilators. Together with the City of Manila, Ayala constructed a new molecular laboratory inside Sta. Ana Hospital. We also donated PCR machines and medical supplies to Quezon City and Davao City.  

• Ayala’s participation in T3 now encompasses support for the national government’s vaccine implementation roadmap – including strategy, procurement, administration, and communications. With the IATF, DOH, and the ICTSI Group, Ayala helped consolidate and finalize the private sector component of the tripartite agreement for the purchase of Moderna vaccines. Together with the 450,000 vaccines ordered from AstraZeneca, Ayala has procured 1 million doses, inclusive of our donation to the government. 

“We entered this pandemic with a strong balance sheet; and we navigated this unpredictably long, deep and complicated crisis with the strength of our balance sheet intact,” Fernando Zobel de Ayala noted. “This strength has allowed Ayala to sustain operations and service debt; and to provide generous support to our varied stakeholders at a time of crisis. It also gives us the continued capacity and flexibility to pursue potential opportunities.” #

As we celebrate International Women’s Month, Ayala Corporation President and COO Fernando Zobel de Ayala made a commitment to promote gender diversity from the staff to the board level during his keynote address at the “#ChooseToChallenge: Inclusive Leadership in Times of Crisis” webinar hosted by Male Champions of Change on Thursday.    

Zobel said Ayala Corporation already set a Board Diversity Policy, committing that the Board, which is intended to be the company’s guiding principle as it evolves top leadership towards greater diversity and improved representation.  He also committed to continue increasing the number of women from entry-level to senior leadership positions.   

“Advancing workplace gender equality, and the other dimensions of diversity in all our companies is a priority area moving forward,” Zobel said. “We plan to align our diversity programs with best-in-class global standards, while working with peers to make diversity and inclusion as the norm in Philippine business.”   

A 2018 report by McKinsey showed that leading gender-diverse companies were 21% and 27% more likely to outperform their less diverse peers in short-term profitability and long-term value creation, respectively. These outperforming companies were also found to have more women executives in revenue-generating roles.  

Across the Ayala Group, based on 2014 to 2019 records, female employees dominate male employees by an average of 31%. At the top management level, 44% of senior leaders are women.   

Recently, Globe also announced the appointment of Issa Guevarra-Cabreira as the company’s first female deputy chief commercial officer. Mynt, Ayala’s digital financial services company that grew very significantly at the onslaught of the pandemic, is also headed by a female executive, Martha Sazon.    

Ayala Land, meanwhile, is among the founding members of the Philippine Business Coalition for Women Empowerment. Its construction arm, Makati Development Corporation, has a strong pool of female executives and skilled workers, a deviation from the traditionally male-dominated construction industry.   

“Diversity is a means to a better end,” noted Ayala Corporation’s Chief Human Resources Officer John Philip Orbeta, who was a panelist at the event.   

“But there’s still a lot of stereotyping like men are supposed to be the breadwinners and women are supposed to stay at home.  I think there should be a whole re-education campaign on the benefits of gender equality, diversity, and inclusion.” 

According to Orbeta, the Ayala Group, which is committed to the United Nation’s Sustainable Development Goals, will continue to champion equality and inclusion in gender, age, or cultural background. “Equality and inclusion are very important to us. But we’re doing it not because of the numbers. We do it because we believe in it. That’s enshrined in our value of empowering leadership.”       

For more information:

Yla Alcantara

Head, Brand and Reputation Management

e-mail – alcantara.ypg@ayala.com

On March 19, the QualiMed Health Network shared its progress of vaccinating over 1,400 of its healthcare worker population. The QualiMed Health Network, with hospitals in Sta. Rosa, Laguna, San Jose Del Monte, Bulacan, Tanauan, Batangas, and Iloilo City, Iloilo, are among the first to receive the doses of AstraZeneca and Sinovac vaccines from the DOH-IATF, in collaboration with respective local government units.

“The QualiMed team is extremely grateful to the DOH and IATF for providing vaccine doses for our frontline healthcare workers. This week, nearly 90% of our team have reported that they are willing to be vaccinated which is encouraging not only for us, but also for other Filipinos. As we continue to ramp up our vaccination program, we also hope to address vaccine hesitancy in the country and emphasize its crucial role in providing safer and more reliable healthcare to our patients,” said Jimmy Ysmael, President and CEO of the QualiMed Health Network.

“The AC Health network renews its commitment to support the government in the fight against the pandemic. With the surge of COVID cases, we are gearing up our testing sites, facilities, and digital platforms to continue providing accessible healthcare to Filipinos. Moving forward, we are preparing to contribute to the country’s vaccination efforts as we gear up for large-scale administration. We have identified and are setting up nearly 20 mega-sites nationwide with a goal to administer 1,000,000 doses by 2021,” said Paolo Borromeo, President and CEO of AC Health.

Recently, the Ayala Group, led by Ayala Healthcare Holdings, Inc (AC Health), has collaborated with ICTSI and Moderna to reach a supply deal for 13 million vaccine doses for the Philippines.  The group aims to launch its COVID vaccination program for employees and partners in June, pending the delivery of procured vaccines from manufacturers and the allocation of vaccines by the national government.

AC Health also continues to respond to the recent COVID surge by leveraging its network that has established testing sites, COVID-19 referral hospitals, and digital platforms over the past year.

Last November, AC Health expanded QualiMed Hospital – Sta. Rosa’s COVID-dedicated bed capacity to 75 beds, and QualiMed Hospital – San Jose Del Monte’s to 30 beds, effectively doubling the total bed capacity for COVID patients since the facilities were initially upgraded last year. Healthway’s Family and Multi-Specialty clinics also remained open to serve as extended frontline care. Since the beginning of the pandemic, AC Health’s network of QualiMed hospitals and Healthway clinics has triaged over 500,000 patients.

On testing sites, the Ayala Group, led by AC Health, engaged with private sector partners to build 4 Biosafety Level 2 modular laboratories in QualiMed hospitals across the country. This consortium was formed as part of the Ayala Group’s initiative to contribute an additional capacity of 5,500 confirmatory RT-PCR tests per day in support of the Department of Health’s and the Inter-agency Task Force’s Project T3 (Test, Trace, Treat). As of today, the laboratories have already conducted over 150,000 tests.

AC Health’s Vigos Ventures and Globe’s 917Ventures, also launched HealthNow, an all-in-one healthcare app that offers telemedicine consultations, online medicine ordering and delivery, and clinic and diagnostic testing booking. To date, HealthNow has recorded over 160,000 app installs and more than 400 onboarded doctors.

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AC Health

Ayala Healthcare Holdings, Inc. (AC Health) is a wholly-owned subsidiary of the Ayala Corporation, and serves as the portfolio company for healthcare businesses. Its vision is to build an ecosystem that links every patient to a seamless healthcare experience. Its portfolio includes Generika Drugstore, the pioneer in generic retail pharmacies, IE Medica and MedEthix, major pharmaceutical importer and distributor, Healthway, the country’s largest network of primary care, multi-specialty, and corporate clinics, and QualiMed, a comprehensive network of full-service hospitals, multi-specialty clinics, and stand-alone day surgery centers. AC Health is also investing in health technology solutions, such as its HealthTech arm, Vigos Health Technologies, HealthNow, a healthcare aggregator app that offers online consultations, medicine delivery, and clinic and diagnostic booking, AIDE, a home health care platform, Fibronostics, an algorithm-based health-risk assessment tool, and ObvioHealth, a digital clinic trials platform.

For further inquiries, contact:

Janelle Panganiban

Strategy and External Affairs Specialist

Contact: 0917-836-3077

E-mail: panganiban.jms@achealth.com.ph

Healthway Medical has formalized its partnership with Ateneo de Manila University School of  Medicine and Public Health (ASMPH) as the institution’s affiliate community clinic. With this  collaboration, 4th and 5th year medical students of ASMPH are granted the opportunity to  complete supervised training at Healthway’s clinics during their clerkship and internship.  

This development is in line with the existing partnership between AC Health and Ateneo  Professional Schools (APS) that focuses on healthcare advocacy, research, and recruitment and  training.  

The signing event was held on February 23, 2021, with Paolo Borromeo, President and CEO of AC  Health, Dr. John Paul Vergara, Vice President of Ateneo Professional Schools, and Dr Cenon  Alfonso, Dean of Ateneo Professional Schools as acting signatories. The event was also attended  by Paul Darroca, President and CEO of Healthway, Dr. Irene Limpo, General Manager of  Healthway Family Clinics, Dr. Suzanne Pama, General Manager of Healthway Multi-Specialty  Clinics, and Dr. Sonny Duran, Medical Affairs Head of Healthway.  

“AC Health and the Ateneo Professional Schools continue to work towards our shared vision of  creating an integrated healthcare ecosystem which relies on doctors that are more than just  clinicians, but are also dynamic leaders and social catalysts. We are excited to welcome future  Atenean doctors into Healthway and provide them opportunities to enhance their patient care 

advocacy, ensure their professional competence, and maximize the resources available for  learning and formation, especially in this time of crisis when we need them most,” said Paolo  Borromeo, President and CEO of AC Health.  

“ASMPH is excited to launch this program with AC Health and to provide an opportunity for our  students to train across Healthway’s clinic network. Through the years, we continue to take pride  in our Atenean doctors who have served in the leadership and medical teams of AC Health’s  network, and are excited to open up this experience to our students, working towards providing  quality and accessible healthcare to patients,” mentioned John Paul Vergara, Vice President of  Ateneo Professional Schools.  

The first batch of interns began their rotations last January at select Healthway Family and Multi Specialty clinics. Under this partnership, Healthway provides a venue for practical skills training  supervised by physician mentors from Healthway’s pool of physicians. This is in line with ASMPH’s  advocacy for health leadership, public health research, and community engagement.  

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For further details, please contact:  

Princess Acle  

Contact Number: 0977-866-0809  

E-mail Address: princess.acle@healthway.com.ph 

07 MARCH 2021 – Ayala Healthcare Holdings, Inc. (AC Health) launched a vaccination drive for its doctors and healthcare workers at QualiMed Hospital Sta. Rosa, the first hospital outside of Metro  Manila to receive doses of the AstraZeneca vaccines. A total of 600 AstraZeneca and Sinovac vaccines were provided by the Inter-Agency Task Force and the Department of Health, in collaboration with the  local government of Laguna. All 600 doses have been allocated to volunteer recipients. 

The ceremonial vaccination led by Fernando Zobel de Ayala, President and COO of Ayala Corporation,  and Paolo Borromeo, President and CEO of AC Health, is a precursor to COVIDShield – AC Health’s large scale COVID-19 vaccination initiative in support of the Philippine National Vaccine Deployment Program. The QualiMed Health Network was represented by Dr. Edwin Mercado, Vice-Chairman of QualiMed’s  founding group Mercado General Hospital, Inc. (MGHI), and Jimmy Ysmael, President and CEO of the  QualiMed Health Network. Also in attendance were Sec. Carlito Galvez, Jr., Chief Implementer of the  National Taskforce Against COVID-19, Sec. Vince Dizon, Deputy Chief Implementer, Sta. Rosa Mayor  Arlene Arcillas, Dr. Aleli Sudiacal, DOH Director III for Field Implementation and Coordination, and Dr.  Noel Pasion, DOH Region IV Local Health Support Division Chief. 

“The Ayala Group and AC Health have always been strong supporters of the National Vaccine  Deployment Program. I am delighted to see all the efforts of the government and private sector come to  fruition with the launching of the National Vaccine Program. Moreover, it has been encouraging to see  other healthcare institutions support the IATF’s and DOH’s efforts. This gives me hope that in addition to  providing much-needed protection for individuals, the vaccines will eventually reduce the burden to our

healthcare system, stem disease transmission, and accelerate the path to recovery for our country,” said  Fernando Zobel de Ayala, President and COO of Ayala Corporation. 

“We are honored and privileged to have been included by the DOH and IATF as first recipients outside of  Metro Manila for the AstraZeneca vaccines, as well as some doses of the Sinovac vaccines. Our  healthcare workers are extremely grateful to be given this additional layer of protection, and we hope  this will also encourage more Filipinos to be vaccinated too. For our part, we look forward to  contributing to the country’s vaccination efforts as we gear up for large-scale administration. We have  identified and are setting up nearly 20 mega-sites nationwide with a goal to administer 1,000,000 doses by 2021,” said Paolo Borromeo, President and CEO of AC Health.  

Through COVIDShield, AC Health has combined the extensive resources of QualiMed, Healthway, and  HealthNow to offer an end-to-end COVID-19 vaccination program, which complements public sector  efforts to vaccinate majority of Filipinos by the end of the year. HealthNow, powered by AC Health’s  

Vigos Health and Globe’s 917Ventures, is a primary care platform that offers telemedicine consultations,  online medicine ordering and delivery, and clinic and diagnostic testing booking. It will serve as the  platform for masterlisting, prioritization, screening, and scheduling, aligned with government standards  and systems. The platform will also maintain patient records, produce vaccination passports, report  adverse reactions, and perform data analytics. QualiMed and Healthway will lead the administration of  vaccines, in line with DOH and LGU guidelines. 

QualiMed Sta. Rosa is part of QualiMed Health Network, the healthcare chain whose majority ownership  was recently acquired by AC Health through its subsidiary Healthway Philippines, Inc.  

The first to be vaccinated during the event were key doctors of QualiMed, led by Dr. Edwin Mercado, Dr.  Manuel Francisco Roxas, Senior Vice President for Medical Affairs of MGHI, Dr. Lilibeth Maravilla,  Medical Director of QualiMed Sta. Rosa, and Dr. Gina Nazareth, Consultant for Patient Safety and  Quality Management, QualiMed Health Network. 

“Participation in this program is a vital exercise for our healthcare teams in promoting COVID vaccine  acceptance. By vaccinating ourselves, we are not only protecting our teams but our patients as well. To  succeed against this pandemic, vaccination is crucial in providing safer and more reliable healthcare to  our patients,” said Jimmy Ysmael, newly-appointed President and CEO of the QualiMed Health Network. 

Vaccination of healthcare teams and other front liners under the Ayala Group and the AC Health  network will continue in the following months, pending the delivery of procured vaccines from  manufacturers and the allocation of vaccines by the national government. 

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AC Health  

Ayala Healthcare Holdings, Inc. (AC Health) is a wholly-owned subsidiary of the Ayala Corporation, and serves as the  portfolio company for healthcare businesses. Its vision is to build an ecosystem that links every patient to a seamless  healthcare experience. Its portfolio includes Generika Drugstore, the pioneer in generic retail pharmacies, IE Medica  and MedEthix, major pharmaceutical importer and distributor, and Healthway, the country’s largest network of  primary care, multi-specialty, and corporate clinics. AC Health is also investing in health technology solutions, such  as its HealthTech arm, Vigos Health Technologies, HealthNow, a healthcare aggregator app that offers online  consultations, medicine delivery, and clinic and diagnostic booking, AIDE, a home health care platform, Fibronostics,  an algorithm-based health-risk assessment tool, and ObvioHealth, a digital clinic trials platform. 

For further inquiries, contact: 

Janelle Panganiban 

Strategy and External Affairs Specialist 

Contact: 0917-836-3077 

E-mail: panganiban.jms@achealth.com.ph