Category: News

April 15, 2020, Laguna, Philippines — In the light of the current COVID-19 global pandemic, Integrated Micro-Electronics Inc. (IMI), a leading global manufacturing and technology solutions expert held its Annual Stockholders’ Meeting earlier today via live streaming.

“Last year (2019) was an exceptionally challenging year for IMI, as the company experienced many of the same geopolitical headwinds that contributed to the world economy’s slowest year-over-year expansion since the financial crisis a decade ago,” said Jaime Augusto Zobel de Ayala, chairman of the board of directors of IMI in his speech. “In the face of these market conditions, we take comfort in the fact that IMI continues to demonstrate resilience and is able to consistently weather the volatile, rapidly evolving nature of the global manufacturing space,” asserted Zobel de Ayala.

In the web simulcast, Arthur R. Tan, IMI chief executive officer articulated how the company ended 2019 reflecting on the achievements accomplished and the challenges IMI was able to overcome despite several business constraints. “Last year proved to be more volatile than we had anticipated,” Tan said in his message.

Despite the headwinds, Tan remains undaunted saying that “the pipeline remains healthy with the significant new projects we won in 2019 worth $407 million of annual revenue potential. In fact, as we continue to drive the development of next generation platforms, we were even able to grow our automotive segment by 9% from the previous year, completely outpacing the market.”

“Business wins related to the automotive camera continue to rise and provide IMI with leverage in offering more advanced technologies such as mirror replacement and camera-video system level modules. Revenues in this group is seen to double to US$ 124 Million in the next five years,” Tan added.

“Our reputation as a leading intelligent solutions provider in automotive, industrial and aerospace markets continue to reinforce our partnerships with more opportunities in the face of newer and faster technologies. We continue to establish our niche in higher value markets and expanded levels of the standard business models. With our experience and reputation, we get to collaborate with the best in the industry in project management from design concept to manufacturing and delivery. To illustrate, back in 2018, among the products that we built, only about 30% of these were classified as those belonging in emerging technologies. By the end of 2019, that number rose to 44%. All these are consistent with IMI’s trajectory over the past ten years. Over this period, the compounded annual growth rate of IMI registered at 13% resulting in the tripling of the company’s global size,” maintained Tan.

Tan spoke about the current global pandemic outbreak as a very dynamic situation affecting the global market in unprecedented ways. “As a global manufacturing partner, we have systems in place for these kinds of market disruptions currently enforced in our sites today. Our capabilities across all the major markets puts us in a unique position to not only survive but to rebuild and emerge stronger and better. Part of our operations now is to sustain and support most of the essential industrial and medical products that the world desperately needs,” he added.

One of IMI’s subsidiaries, Surface Technology International (STI) Ltd. based in the UK, has joined the #VentilatorChallengeUK consortium in producing critically needed medical ventilators in the fight against COVID-19 in the region. It is a consortium of UK industrial, technology and engineering businesses from across the aerospace, automotive and medical sectors, has come together to produce medical ventilators for the country.

IMI is also currently producing printed circuit board assemblies used for ultrasonic welding equipment commissioned by a medical device manufacturer. It is a critical equipment needed to produce medical textiles and filters for syringes and other medical devices.

“As IMI enters its 40^th year in 2020, and with the digital age at the forefront of global megatrends, our corporate values remain as strong as ever in our more than 17,000 employees worldwide. We believe these are the true drivers of success (…) We shall remain true to our aspirations and our goals as we integrate sustainability, risk management and corporate governance in our global strategies. We share in the commitment our parent company ACI and principal Ayala Corporation, to address long term targets in the UN Sustainability Development Goals,” Tan concluded.

IMI ASM SPEECH
2020 ANNUAL STOCKHOLDERS’ MEETING
MESSAGE FROM THE PRESIDENT & CEO ARTHUR R. TAN
APRIL 15, 2020

Fellow Shareholders,

We ended 2019 reflecting on the achievements we accomplished and at the same time learning from the challenges we were able to overcome despite the business constraints we faced. Last year proved to be more volatile than we had anticipated as it brought about heightened sense of risk and uncertainty.

Last year, geo-political issues further strained the electronics manufacturing industry which had just begun recovering from a component supply chain imbalance which had peaked the year prior. Along with a confluence of other factors, key business cycle indicators pulled back such as global semiconductor sales and semiconductor manufacturing equipment sales which sank 12% and 10.5% year-over-year, respectively.  

Across the manufacturing end-markets, automotive emerged as the most affected segment reflecting the negative impact of the U.S.-China trade dispute and market adjustments to new emissions standards. This caused production to drop by 4% globally, led by China whose automotive output declined by 8%.  

Against this backdrop of weakened trading conditions, revenues slightly weakened year-on-year by 7 percent to US$1.25 billion following a slowdown in the consumer, telecommunications and industrials segments. The slowdown in global growth, strains on supply chain and significant investments in capacity and technical capabilities into future growth areas that increased company overhead expenditures brought full year performance to a net loss of US$7.8 million.

However, despite the headwinds, the pipeline remains healthy with the significant new projects we won in 2019 worth $407 million of annual revenue potential. In fact, as we continue to drive the development of next generation platforms, we were even able to grow our automotive segment by 9% from the previous year, completely outpacing the market.

Business wins related to the automotive camera continue to rise and provide IMI with leverage in offering more advanced technologies such as mirror replacement and camera-video system level modules. Revenues in this group is seen to double to US$ 124 Million in the next five years.

Beyond sales and profitability, our reputation as a leading intelligent solutions provider in automotive, industrial and aerospace markets continue to reinforce our partnerships with more opportunities in the face of newer and faster technologies. In many ways, IMI is learning and finding its niche in higher value markets and expanded levels of the standard business models in electronics manufacturing. With our experience and reputation, we get to collaborate with the best in the industry in project management from design concept to manufacturing and delivery while investing on our future. To illustrate, back in 2018, among the products that we built, only about 30% of these were classified as those belonging in emerging technologies. By the end of 2019, that number rose to 44%.

These activities and developments are all consistent with IMI’s trajectory over the past ten years. Over this period, the compounded annual growth rate of IMI registered at 13% resulting in the tripling of the company’s global size.

Since 1980, IMI has always adhered to two principles as we continue to strive for growth: that we operate and deliver with the highest level of commitment and service to our current customers; and that we have the right people, skillsets and technologies that will enable us to withstand negative market forces in the foreseeable future. Arguably, the electronics industry is among the most volatile markets in the world.

As we learn and benefit from our experiences in the past and present, IMI, now a global company that started as a domestic Filipino integrated circuit assembler, has become the 17^th largest electronics manufacturing services (EMS) company as of the end of 2018 and the 5^th largest in the automotive EMS space.

Today, in addition to its independent mandate as one of the world’s leading electronics manufacturing services firms, IMI also holds the core manufacturing competencies of AC Industrials, Ayala’s industrial technologies group. IMI’s manufacturing prowess will continue to enable AC Industrials and its portfolio of businesses in automotive engineering & design, vehicle distribution & retail, and smart solar technology.

As a global company, IMI will continue to be a leading technology solutions partner in the mobility, connectivity and smart energy spaces, providing higher value contributions in design, collaboration, manufacturing and delivery to major Brands, Original Equipment Manufacturers and Tier One Suppliers in the global automotive and industrial segments.

As IMI enters its 40^th year in 2020, and with the digital age at the forefront of global megatrends, our corporate values of integrity, customer focus, concern for others and excellence remain as strong as ever in our more than 17,000 employees worldwide. We believe these are the true drivers of success that will continue to push us to stay at the edge of innovation, creativity, collaboration and design. At the same time, we will remain true to our aspirations and our goals as we integrate sustainability, risk management and corporate governance in our global strategies. We share in the commitment our parent company ACI and principal Ayala Corporation, to address long term targets in the UN Sustainability Development Goals.

Today, with our 22 manufacturing sites and in 10 countries, providing services beyond the standard deliverables of electronics manufacturing, we will continue to aggressively press forward in exploring synergies, partnerships and ventures in the areas of new technologies and markets. With the age of intelligence and digitalization reinventing conventional business models and supply chains across global markets, we at IMI have put in place the essential elements needed for us to work with the leading players in the world.

As I speak, the current challenges of the Corona virus pandemic affecting the entire global market in unprecedented ways is upon us. It is a very dynamic situation as all the countries and their respective economies will enter and exit this situation independently. This single event may have hastened a new world order in the way we live our lives and operate businesses.

As a global manufacturing partner, we have had systems in place to prepare for these kinds of market disruptions. These systems are currently enforced in some of our sites today. In addition, our diverse manufacturing capabilities across all the major markets puts IMI in a unique position to not only survive this event but to rebuild and emerge stronger and better. Today, part of our operations sustain and support most of the essential industrial and medical products that the world desperately needs.

To all our stakeholders, thank you for your trust guidance and support that have enabled us to remain a robust and enduring company now and for the decades to come.

Together, we are now ready for more giant leaps into the future.

IMI ASM SPEECH
2020 ANNUAL STOCKHOLDERS’ MEETING
MESSAGE OF THE CHAIRMAN JAIME AUGUSTO ZOBEL DE AYALA
APRIL 15, 2020

My fellow shareholders, good morning.

2019 was an exceptionally challenging year for IMI, as the company experienced many of the same geopolitical headwinds that contributed to the world economy’s slowest year-over-year expansion since the financial crisis a decade ago. Global economic growth was a modest 2.9 percent amid a general slowdown in more advanced economies. While their individual economies remained relatively stable, the United States and China continued to engage in a trade conflict whose impact was felt profoundly by those of us who do business within these markets.

Meanwhile, European economic momentum decelerated, largely over the prolonged uncertainty of Britain’s exit from the European Union and lingering social unrest in other key markets across the continent.

These macro headwinds, together with the disruptive changes currently sweeping many key industries, have created a challenging environment for worldwide manufacturing and trade. In the electronics space, intensifying competition and increasing demand posed operational challenges to players like IMI and resulted in longer fulfillment times and higher material costs. Meanwhile, global automotive unit sales likewise experienced weakness as the industry’s megatrends of connectivity, autonomy, sharing, and electrification take hold.

In the face of these market conditions, we take comfort in the fact that the company has continued to demonstrate resilience. Its ability to plan and prepare for the future has allowed it to consistently weather the volatile, rapidly evolving nature of the global manufacturing space.

IMI also retains and continues to invest in the specialized technical resources that will keep it competitive as its industry and competitive cycles turn. These include proprietary capabilities in power electronics, camera and vision and connectivity components, to name a few. The company also retains the competencies that have formed the foundation of its manufacturing prowess, such as design and development, advanced manufacturing engineering, automation, and quality systems, which have, in turn, allowed it to selectively expand beyond the electronics space into AC Industrials’ core manufacturing platform. Most of AC Industrials’ key products and technologies, including the export-oriented motorcycle joint venture with KTM AG and its specialty photovoltaics arm Merlin Solar, are supported by IMI. The company’s manufacturing expertise has enabled these strategic investments to not only locate manufacturing in the Philippines, but also to help serve their respective global markets.

The year 2020 also represents a landmark year for IMI. The company celebrates not only its 40^th year in existence, but also its 10^th year as a publicly traded company. It remains well positioned in the electronics manufacturing space, as it ranks among the top 20 in the world in terms of revenue and 5^th in automotive-related business. We will continue to build on these strengths as we leverage key technologies to ensure IMI’s continuity and relevance in an evolving environment. Beyond manufacturing, IMI will continue transforming itself to remain a leading corporate citizen in the coming years as the world digitizes, grows more connected, and more focused on sustainably doing business.

As a final note, I would like to thank our Board of Directors for their guidance and engagement, our management and staff for their untiring dedication and commitment, and our global stakeholder community for their consistent support.

We believe IMI’s best days continue to lie ahead of it, and we look forward to sustainably building shareholder value in the years to come.

As a parting thought, let me end my message with a video that shows how IMI is operating and moving towards a sustainable future.

Thank you.

April 15, 2020 – The Ayala Group of Companies has completed the conversion of portions of the World Trade Center (WTC) in Pasay City into a temporary healthcare facility that will cater to patients affected by COVID-19.

The project, dubbed WTC We Heal as One Center, was made possible through the collective efforts of Ayala Land Inc., Globe Telecom Inc., Manila Water Co. Inc., Integrated Micro-Electronics Inc. (IMI), and AC Energy Inc., together with the ICCP Group and Manila Exhibition Center Inc. (MEC), and with support from the Bases Conversion Development Authority (BCDA) and the National Government. The Ayala Group of Companies was able to pool P46.4 million for this project.

Ayala Land unit Makati Development Corp. (MDC) headed the fit-out construction for 9,700 square meters of space at WTC in a span of 7 days.

Following the layout and design by MDC with guidance from the Department of Health and Architect Daniel Lichauco, the facility features 500 beds enclosed in safe, clean, and controlled isolation cubicles, as well as examination rooms, nurses’ stations, doctors’ work areas, and medical staff quarters.

“When the national government asked for Ayala Land’s support, we immediately mobilized and pooled our resources to assist in the best way we can,” Ayala Land President and CEO Bobby O. Dy said.

“We hope that this facility will help our country get through the COVID-19 pandemic. We are privileged to work with like-minded partners who want to do what’s best for the Filipino people,” Dy added.

Globe Telecom funded a large portion of the facility’s construction cost, as well as unlimited Wi-Fi services.

“Collaboration between the public and private sectors is vital during these times, and we will continue to lend support to the government to help the country recover from this pandemic soon,” Ayala Land Chairman Fernando Zobel de Ayala said.

Meanwhile, MEC provided the spaces in WTC rent-free. It also supplied bathroom toiletries in addition to security and janitorial services.

“Even before MEC, the owner of World Trade Center Metro Manila, was approached through the ICCP Group, we were already thinking about offering the exhibition hall, either as a Command or Testing Center for COVID-19,” WTC Metro Manila President and CEO Pamela D. Pascual recalled.

WTC is among the largest events facilities in the country, having hosted several big gatherings such as the Association of Southeast Asian Nations in 2017 and the Southeast Asian Games in 2019.

“So when this came into fruition, through the partnership with Ayala Group, we are more than happy and proud to be given the chance to make a difference by helping government in its fight to quell COVID-19,” Pascual explained.

The facility was turned over on April 14 to the Armed Forces of the Philippines Health Service Command, who will serve as its medical operator.

For its continued operations, AC Energy donated 500 bedframes and pillows and has committed to cover 50% of the facility’s electricity costs until May 31, 2020. Partner donor Manila Electric Co. has pledged to cover the other half.

Manila Water also built 27 private cubicle shower areas for patients and 10 in a converted container van for medical workers.

For its part, IMI is providing two sanitation booths at the entrance of the facility and another two at the exit.

Other donors include: The Philippine Constructors Association, which contributed cubicles for the facility; Smart Communications Inc., which set up the WiFi internet connectivity; and San Miguel Corp., which is supplying the center’s alcohol requirements. MDC construction partners also contributed supplies and equipment to complete the fit-out of the facility. Collectively, Ayala’s partners in this initiative contributed P29.5 million.

Several companies were tapped to provide security, cleaning and maintenance, and laundry services. Food commissary suppliers and a cafeteria operator have also been recruited.

The cost of medical equipment, supplies, and services will be shouldered by the National Government along with private donors and other financiers.

“We are grateful to all our private partners for setting up a much-needed facility in such a short period of time. In partnership with ICCP Group, Ayala Group, and Meralco, the conversion of the World Trade Center Metro Manila into a COVID-19 quarantine facility is testament to what the public and private sectors can achieve when they work together for the good of our country,” BCDA President Vince Dizon said.

The Ayala Group’s contributions to the conversion of WTC into a quarantine area for COVID-19 patients is its latest in a string of initiatives to help stem the spread of the virus.

Most recently, the Ayala Group took part in Project Ugnayan, a relief effort together with more than 50 private companies and in partnership with the Philippine Disaster Resilience Foundation and Caritas Manila.

Through Project Ugnayan, the country’s leading businesses were able to raise P1.7 billion for the purchase of grocery vouchers that aims to feed 1.5 million urban poor families or 7.6 million individual residents who are most burdened by the enhanced community quarantine in Metro Manila.

CARITAS MANILA (a church-based non-profit organization that serves as the lead social service and development ministry of the Catholic Church in the Archdiocese of Manila) through its “spiritual frontliners” of priests, nuns and lay volunteers in various parishes in mega-manila have distributed a total of 1,367,495,000 pesos worth of Gift Certificates covering 5,445,255 urban poor families (or over 7.6 million individuals) currently affected by the Enhanced Community Quarantine in the entire of Luzon.

Under Project Ugnayan (a fund-raising initiative led by top business groups in cooperation with the Philippine Disaster Resilience Foundation) Caritas Manila was able mobilize its parish-based grassroots structure to provide social assistance to vulnerable communities of the Greater Manila Area.

To date the distribution of Gift Certificates are as follows:

The initiative earned praises from Archdiocese of Manila Apostolic Administrator Bishop Broderick Pabillo, San Pablo Bishop Buenaventura Famadico and other Prelates of the Suffragan Dioceses of Manila. The Prelates thanked the businessmen and private organizations that collectively help to make Project Ugnayan possible. This unprecedented assembly of so many of the country’s corporations and business families coming to the assistance of the most helpless in our society illustrates and speaks of the heart and generosity of the business community.

Special thanks to the donors of Project Ugnayan, which include (in alphabetical order): Aboitiz Group, ABSCBN/First Gen, Alaska Milk Corporation, Alliance Global Group & Megaworld, AY Foundation & RCBC, Ayala Corporation. Bench/Suyen Corp, Bonifacio West Devt Corp. Carmelray Group, Cathay Land, Inc, Cebuana Lhullier, Century Pacific, Coca Cola Philippines, Concepcion Industrial, Consuelo “Chito” Madrigal Foundation, Inc., Daiichi Properties, DMCI Group of Companies, Dowell Container and Packaging Corporation, Far Eastern University, First Life Financial Company, Focus Global, Inc., Global Food Group, Glorious Commercial Exports, Inc., Gokongwei Group of Companies/Robinsons Retail Holdings, ICTSI, JAKA Group 1, Jollibee, Kawit Prime Holdings, Inc., Leonio Group, Mercury Drug Corporation, Metrobank, Mumuso Group, National Grid Corp of the Philippines, New World Hotel, Nutri-Asia, Oishi/Liwayway Marketing Group, One Meralco Foundation, Penshoppe, People R People, PepsiCo/PepsiCo Foundation, Philippine Racing Club, Inc, PLDT/Metro Pacific Investments Corporation, Puregold, Ramon S. Ang & Family, RRK/Lee Jeans, Shang Properties Inc, SM/BDO, Sta. Elena Construction, Sugar Junction Inc.. Sunlife of Canada, Super Prime Holdings, Inc, The Alpha Suites Inc., Unilab, and Wilcon Depot.

Contact Person:

REV. FR. ANTON CT PASCUAL
Executive Director
Caritas Manila
09175660846 / 09189245095

Project Ugnayan, the fund-raising initiative led by top business groups in cooperation with the Philippine Disaster Resilience Foundation (PDRF), reached over 7.6 million people in the vulnerable communities of Greater Metro Manila.

“As we close, we wish to reiterate our wholehearted thanks to all our generous Donors for making this project possible. By coming together in a Bayanihan spirit so quickly, we were able to create a program of this scale and importance. This unprecedented assembly of so many of the country’s corporations and business families coming to the assistance of the most vulnerable in our society illustrates and speaks of the heart and generosity of the business community.

Our special thanks go to the 10 Bishops of the Dioceses in Metro Manila, Rizal, Bulacan, Cavite, and Laguna, as well as to Caritas Manila under the leadership of Father Anton Pascual, and the network of Parish Priests, Volunteers, and Barangay Captains who distributed the gift certificates door-to-door in the lowest-income communities of Greater Metro Manila. We appreciate the swiftness and efficiency of their work under very difficult conditions and over very long hours each day,” said Project Ugnayan Lead, Fernando Zobel de Ayala.

“We are grateful for this opportunity to be part of this business community effort to help people in a time of crisis. This is a movement we should nurture as we prepare to let people return to work and to re-start our economy in the post-quarantine period.” said PDRF Co-Chairman Jaime Augusto Zobel de Ayala.

“The unity in diversity demonstrated by Project Ugnayan reveals the private sector’s serious commitment to help our country recover from the lost economic momentum because of the pandemic. We are proud to be part of this extraordinary collaboration of industries which will prove most valuable in getting the economy back on track,” PDRF Co-Chairman Manuel V. Pangilinan said.

According to Father Anton CT Pascual, Executive Director of Caritas Manila, the initiative earned praises from Archdiocese of Manila Apostolic Administrator Bishop Broderick Pabillo, San Pablo Bishop Buenaventura Famadico and other Prelates of the Suffragan Dioceses of Manila. The Prelates thanked the businessmen and private organization who collectively help to make Project Ugnayan possible.

“The true spirit of Easter is about hope and has special significance in these difficult times. We thank all the generous benefactors of Project Ugnayan for this opportunity to fulfill a great mission of compassion for our vulnerable brothers and sisters. Your gifts have warmed their hearts and uplifted their spirits,” Father Pascual said.

Caritas Manila’s Project Damayan, the project’s main distributor of emergency cash through P1,000 supermarket gift certificates has so far reached 1,070,854 families or 5,354,270 people. It is on target to deliver gift certificates to 1,366,495 families or 6,832,475 people by Wednesday, April 15 (the original end-date of the Enhanced Community Quarantine).

ABS-CBN’s Pantawid ng Pagibig has reached 238,854 families or 1,194,270 people through food packs delivered through Local Government Units. They will reach a total of 631,921 families or 3,151,605 people by the end of their program.

ADB and the Government’s Bayan, Bayanihan has delivered food packages to 13,370 families or 66,850 people through the Philippine Army and DSWD. ADB has provided funding to reach 80,000 families or a total of 400,000 people.

Jollibee’s FoodAID program delivers ready-to-cook chicken to low-income families from its commissary through a network composed of Don Bosco, Caritas Manila, and the Samahan ng Nagkakaisang Pamilya ng Pantawid (SNPP). So far, they have delivered to 199,491 families or 977,455 people. They are targeting to reach 500,000 families or 2,500,000 people by end-April.

“In sum, Project Ugnayan and its Partners have reached 1,522,569 families or 7,612,845 people in just over three weeks. This number will rise as all deliveries have already been programmed by the partners,” said Fernando Zobel de Ayala.

The donors of Project Ugnayan are (in alphabetical order): Aboitiz Group, ABSCBN/First Gen, Alaska Milk Corporation, Alliance Global Group & Megaworld, AY Foundation & RCBC, Ayala Corporation. Bench/Suyen Corp, Bonifacio West Devt Corp. Carmelray Group, Cathay Land, Inc, Cebuana Lhullier, Century Pacific, Coca Cola Philippines, Concepcion Industrial, Consuelo “Chito” Madrigal Foundation, Inc., Daiichi Properties, DMCI Group of Companies, Dowell Container and Packaging Corporation, Far Eastern University, First Life Financial Company, Focus Global, Inc., Global Food Group, Glorious Commercial Exports, Inc., Gokongwei Group of Companies/Robinsons Retail Holdings, ICTSI, JAKA Group 1, Jollibee, J.P. Morgan, Kawit Prime Holdings, Inc., Leonio Group, Mercury Drug Corporation, Metrobank, Mumuso Group, National Grid Corp of the Philippines, New World Hotel, Nutri-Asia, Oishi/Liwayway Marketing Group, One Meralco Foundation, Penshoppe, People R People, PepsiCo/PepsiCo Foundation, Philippine Racing Club, Inc, PLDT/Metro Pacific Investments Corporation, Puregold, Ramon S. Ang & Family, RRK/Lee Jeans, Shang Properties Inc, SM/BDO, Sta. Elena Construction, Sugar Junction Inc.. Sunlife of Canada, Super Prime Holdings, Inc, Supreme Steel Pipe Corp, The Alpha Suites Inc., Unilab, and Wilcon Depot.

“We are fully supportive of the latest pronouncement by President Duterte on extending the enhanced community quarantine to April 30. This is consistent with the research data on past pandemics, evaluation of initiatives in other countries and various statistical analyses that we have been studying to help break the COVID-19 pandemic. While we await for new guidelines from the national government, the Ayala group will continue to take care of its employees as a priority and extend support as much as we could to our partners and communities through collaborative efforts. In partnership with over 30 private conglomerates, the Philippine Disaster Resilience Foundation and Caritas Manila, we are heavily involved in Project Ugnayan, an initiative that seeks to feed 1.5 million urban poor families or 7.5 million individual residents greatly affected by the ECQ in Greater Metro Manila. We are also completing the conversion of some 8,000 sqm of the World Trade Center in Pasay into a 500-bed quarantine facility for COVID positive patients with the ICCP group. This will be turned over to the AFP, as the medical operator next week, “ said Ayala chairman and CEO Jaime Augusto Zobel de Ayala.

Makati, Philippines – March 12, 2020  As Ayala Corporation caps its 185^th founding anniversary, its network of 227,000 small medium enterprises (SMEs) and allied businesses of some 27,000 partners and suppliers across the group are recognized as pillars in its continuing growth story.

“Beyond our products and services, our businesses create multiplier effects for society and the economy. Our group creates employment opportunities for a broad segment of Filipinos– whether professionals, skilled or unskilled—as well as various entrepreneurial opportunities for many micro, small, and medium businesses. With the Ayala group’s unique attributes in diversity, scope, and brand equity, we are fortunate to have the ability to contribute to providing livelihood opportunities with scale and serve as catalyst for economic and social progress for many communities throughout the country,” noted Ayala Chairman and CEO Jaime Augusto Zobel de Ayala.

More than half of these 227,000 unique SMEs within the Ayala network, partner with Globe for their data transaction needs and various ICT solutions to run their daily business operations.

Another 100,000 enterprising Filipinos are already growing their business ventures with BPI’s Banko through zero collateral, low interest loans of up to ₱150,000 and sound financial advice.

An estimated 1,000 SMEs are also doing business in 35 AyalaLand Malls nationwide and some subcontractors at the Makati Development Corporation that build sustainable residential and commercial spaces.

According to a DTI report, micro small medium enterprises (MSMEs) are becoming a significant contributor in the Philippine economy. They make up 99.5% of the businesses in the country where 60% are micro entrepreneurs with annual revenues of less than P10 Million. MSMEs employ 63% of working Filipinos and contribute to 35% of the country’s GDP. Ayala supports the growth of the MSMEs in the country.

In addition, some 27,000 suppliers and partners across the Ayala group continue to benefit from the income derived from Ayala’s diverse businesses. All these economic activities aim to include as many players as possible creating more income generating prospects and jobs.

The Ayala group reported 71,823 total direct hires in 2019, up 19% from 2018. Ayala’s suppliers and SME partners are part of the country’s most productive citizens. The Philippine Statistics Authority estimates the country’s employment rate at 94.9% at December 2019.  

Ayala’s net income in 2019 reached ₱35.3 billion, which included divestment gains from AC Education and AC Energy. The strong consumer-driven growth of Ayala Land, BPI, and Globe lifted Ayala’s bottomline during the period.

An infrastructure company of businessman Enrique K. Razon Jr., Prime Metroline Holdings Inc., through a company that it will incorporate for the transaction (hereafter, “Trident Water”), is joining Ayala Corporation as a strategic investor in Manila Water with the acquisition of a 25 percent stake in the company. Ayala remains a shareholder with a 38.6 percent stake.

The transaction will bring ₱10.7 billion in fresh funds for Manila Water, which will support its capital spending program to improve the water and wastewater distribution system in Metro Manila’s east zone concession.
The partnership with Trident Water, which demonstrates Ayala’s ability to attract sizeable and long-term investments into the business group, adds enormous value to Manila Water as it executes on its long-term strategic direction.

“Across all our partnerships, Ayala values the complementary strengths and expertise that we can leverage off a team-based approach, which has been a hallmark of our many joint undertakings with both local and international groups. Both Ayala and Mr. Razon share a deep commitment to contributing to the country’s water infrastructure development,” Ayala Chairman and CEO Jaime Augusto Zobel de Ayala said.

“Together, both our groups can provide a unique, holistic, and long-term solution to providing predictable and dependable long-term supply to the growing needs of the east zone concession and likewise contribute to strengthening the infrastructure required to deliver an important resource to preserve the city’s livability and health at a time of growth and expansion in the metropolis,” Ayala’s Chairman and CEO noted.

“We expect this partnership to likewise help accelerate Manila Water’s regional aspirations given Mr. Razon’s solid experience in penetrating overseas markets,” Ayala President and COO Fernando Zobel de Ayala stated.

Over the past decade, Manila Water has been establishing itself as a major water infrastructure player in Southeast Asia with investments in various platforms across Vietnam, Thailand, and Indonesia and is constantly on the lookout for opportunities in the region.

“Mr. Razon’s successful global operations in economies around Asia Pacific, Latin America, Middle East, and Africa is a testament to his strong ability to establish business leadership overseas and navigate the nuances and challenges that come with operating in new territories, including differences in culture, social structures, and economic development,” Ayala’s President and COO said.

“We are excited to enter into this partnership with the Ayala group. We will dedicate our efforts to further develop this unique business both here in the Philippines and abroad. We are confident that our collective experience, technical capabilities, and corporate synergies will be of great benefit to Manila Water, the people it serves, and its other stakeholders,” commented Enrique K. Razon Jr.

The Bulk Water Supply Project of the Razon-led Wawa JVCo Inc. is expected to start supplying an additional 80 MLD of water to Metro Manila by the end of 2021.

Over 320 evacuees, most of whom were residents in “locked down” towns of Agoncillo and Laurel in Batangas, have been housed at the Municipal Covered Court of Alitagtag. Those coming from the San Andres Elementary School in Bauan were mostly from Lemery where some areas are still partly locked down. The evacuees needed medical assistance for treatment of common cough and colds, muscle pains, hypertension, diarrhea, diabetes and other skin care concerns. A number of patients also required nebulization services and wound treatment.

In coordination with the Batangas provincial government and the municipal health office, the Ayala group sent a medical mission organized by AFI with various business units and partners – AC Health, Ayala Land’s Makati Development Corporation (MDC) and the Ateneo School of Medicine & Public Health.

The medical mission composed of 41 doctors and 50 allied health professionals was also able to provide patients assorted medicines, supplied by AC Health’s Family Doc and Healthway clinics, Generika drugstores, IE Medica and MedEthix.

The Filipino Young Leaders Program Alumni (FYLPRO), an AFI affiliated non-profit next generation leadership organization based in the United States, also donated 200 N-95 face masks to protect against possible ashfall. They were distributed by AFI to residents of Lemery who were staying in the town of Bauan.

Additionally, Manila Water Foundation (MWF) provided the volunteers with five hundred 500ml bottles of Healthy Family drinking water to ensure proper hydration as they attended to patients throughout the day.

“Bayanihan is very much alive in the hearts of the Batanguenos. In a letter written by Archbishop Garcera, he said and I quote – Tayo ay Taal. Tatag. Abilidad. Angas. Lingap. Qualities that kept the Batanguenos knitted together. No words can express the gratitude we give to all who are lending a helping hand to lift us back to our feet,” shared Dr. Flordeliz Castillo, Alitagtag Municipal Health Officer as she welcomed the medical mission team.

Aside from the medical outreach, one of the 10 KIA K2500 Karga utility vehicles recently donated by AC Motors to the Batangas provincial government was deployed in Alitagtag, a fourth class municipality. The vehicle allowed the Alitagtag Municipal Disaster Risk Reduction Management Office (MDRRMO) to transport patients, evacuees and relief goods to and from the neighboring towns. Prior the assignment of the vehicle, the MDRRMO said that the only utility vehicle available at their disposal was a garbage truck covered with canvas.

With Taal volcano’s alert level status reduced to level 3 last January 26 by the Philippine Institute of Volcanology and Seismology (PHIVOLCS), many of the displaced families have begun to make their way back to their residences. However, it is clear that there is still a lot more to be done as a significant number of them have lost all their possessions and sources of livelihood. Some of those who were allowed to return to their homes eventually made their way back to evacuation centers as their houses were found to be severely or totally damaged. A provincial evacuation center was set up in the town of Ibaan to accommodate evacuees from areas declared as permanent danger zones.

The Ayala group will continue to work closely with the concerned local government units in bringing other relief and rehabilitation efforts to communities to help rebuild lives.