Category: News

Updated August 10, 2012

AYALA LAND, INC.

Ayala Land is coordinating with local government units in assisting flood victims. Employees and the public are encouraged to donate urgently needed items including bottled water, biscuits, and easy-to-open canned/pouched food.

Cash or check donations are also accepted through a dedicated BPI Account of Ayala Land, Inc. (Peso Account 0031-0684-95). For donations from overseas:

Swift Code BOPIPHMMTRY
Bank Bank of the Philippine Islands (Ayala Paseo Branch)
Address G/F Philam Life Building, Paseo de Roxas, Makati City

> Ayala Malls

Ayala Malls allowed its merchant stores to close on August 7, but the malls remained open to provide temporary shelter for those who were stranded.

Donations for flood victims may be handed over to Concierge booths in all Ayala Malls.

BANK OF THE PHILIPPINE ISLANDS

To continue to serve its customers especially at this time of emergency, more than 90% of BPI branches are open. For convenience, BPI’s Bank Anywhere capability allows customers to transact in any branch.

BPI also ensures that ATMs that are not affected by flooding or lack of electricity and telecommunications service remain fully functional and have adequate cash to enable withdrawals. A total of 910 ATMs in the Greater Metro Manila area are available to serve customers. BPI’s electronic channels (ExpressOnline, Express Mobile, and Point-of-Sale Terminals) are also working 24/7 to support transactional needs.

BPI Foundation has mobilized resources to reach out to flood victims. Deposits to the BPI Foundation Assistance Fund (Current Account Number 0011-1530-89) are accepted over the counter and via ATM, mobile, and online banking facilities.

GLOBE TELECOM

> Customer Service

Globe’s service in Metro Manila and outlying areas in Luzon is normal, save for isolated service interruptions in areas submerged in floodwaters or affected by loss of commercial power. Less than 1% of the Globe infrastructure in the Greater Manila Area was affected by flooding, as the company has implemented projects to boost network resiliency and redundancy.

Critical service areas that remain flooded include Navotas, Malabon, Valenzuela, and Zambales. Globe is working on full service restoration in these areas. Field engineers and network teams are on alert and have been working 24/7 to ensure subscribers get uninterrupted voice or data services.

> Relief Operations

Globe is conducting simultaneous relief operations through Globe Bridging Communities (Globe BridgeCom) in Concepcion Integrated School, Concepcion, Marikina; Mother of Divine Providence Parish, Payatas, Quezon City; and Holy Trinity Parish, Fairview, Quezon City.

Its employee-volunteers and partner-organizations are distributing ready-to-eat food, canned goods, rice, assorted clothes and drinking water to an estimated 5,300 families temporarily seeking shelter at these evacuation centers.

> Globe Libreng Tawag

Meanwhile, Globe maintains Libreng Tawag operations at the following sites:

1. Concepcion Integrated School, Marikina
2. Municipal Hall, Navotas
3. Bagong Silangan Elementary School, Quezon City
4. Brgy. Burgos, Dinalupihan, Bataan
5. Brgy. Daungan , Hermosa, Bataan
6. Department of Agrarian Rerform, Quzeon City
7. Brgy. Dolores, San Fernando, Pampanga
8. Nangka Elementary School, Marikina
9. Provincial Capitol, Malolos, Bulacan
10. Mandaluyong Elementary School, Mandaluyong City

Affected residents can make free five-minute local calls to any network, send text messages to all networks or make a two-minute international call at the Globe Libreng Tawag facilities.

A soup kitchen, Libreng Tawag and Charging Stations are also open at Malolos Central School, Bulacan.

For customer assistance, call 730-1000 from any landline or toll-free at 211 from any Globe or TM mobile number. Messages may also be posted at the Globe Telecom Facebook page or tweet @talk2globe.

> Text Mo, Libre Ko

For Globe and TM subscribers who have zero balance, send a message through the “Text Mo Libre Ko” service. Recipients may accept to pay for your text to them. Just send the message to 2354+the 11-digit Globe/TM number (ex. 235409171234567). Use the service to check on friends, relatives or co-workers who are in flood-prone areas or evacuation centers. Each message sent costs P1.00 to the text recipient who gave permission to accept charges for text messages.

> Red Cross

Donate to the Philippine Red Cross via your Globe phone, text REDAMOUNT to 2899. To donate via GCASH, text DONATE AMOUNT 4-digit M-PIN REDCROSS to 2882.

MANILA WATER COMPANY

Manila Water expanded its tankering service at various evacuation centers to cover: Marikina; Pasig, Taguig, Pateros, San Juan, Mandaluyong, and Quezon City; and San Mateo, Rodriguez, Antipolo, Taytay, Cainta, Binangonan, and Jalajala, all in Rizal Province. Static tanks have also been stationed in Marikina and Rodriguez, Rizal.

Manila Water is also providing water in sealed plastic cups in areas that cannot be reached by tankering services due to high flood levels.

For concerns, call the Manila Water hotline at 1627.

AYALA FOUNDATION, INC.

> Ayala Young Leaders Congress

The Ayala Young Leaders Alumni Association (AYLAA) is also conducting a relief drive in close coordination with different agencies on the ground for the purchase and distribution of needed goods. Cash donations may be deposited to BPI Savings Acct No. 0039-2797-62 (Michelle Almenario, AYLC ‘02/AYLAA Treasurer). Kindly confirm deposits by sending an SMS to the AYLC Alumni Relations line: 0917-854 5191.

> Ayala Museum

A Twitter campaign, “The Filipino Spirit is Waterproof,” begun on Wednesday by Ayala Museum to capture Filipino resilience in the face of calamity has received “overwhelming response, inspiring graphic art and memes in the spirit of spreading positivity amidst crisis.” Visit www.twitter.com/ayalamuseum or www.facebook.com/theayalamuseum.

Ayala Corporation, one of the largest business groups in the country, completed today the placement of 15 million common shares held in its treasury. The shares were priced at P430 per share. This raised cash proceeds of P 6.45 billion for Ayala which it intends to use to fund several sizable projects it is eyeing in the infrastructure and power sectors.

Ayala is looking to invest up to US$1 billion over the next five years in the transport infrastructure and power generation sectors as it builds a portfolio of power generation assets and as it sets its sights on toll road, rail, and airport projects under the government’s public private partnership program (PPP).

On top of the Daang Hari–SLEX Connector road, which was the first PPP project rolled out and which Ayala won last December 2011, the company expressed interest to participate in other PPP projects expected to be bidded out soon. Projects of interest to the group include the NAIA Expressway, the Cavite-Laguna (CALA) Expressway, and the LRT Line 1 extension and O&M. Ayala recently formed a strategic partnership with Metro Pacific Investment Corp. to jointly pursue light rail projects in the Metro Manila area. Ayala said it is also keen to participate in the development of airports such as the Mactan Cebu International Airport.

In the power generation sector, Ayala has established a platform of conventional and renewable technologies and has committed around US$100 million of equity on approximately 180 megawatts of gross generating capacity. It began construction of a 135-megawatt CFB thermal plant in Calaca, Batangas in partnership with the Phinma group’s Trans Asia Oil and Development Corp. It is also currently working on a possible second phase of expansion of the plant. Recognizing the country’s need for both base load capacity and alternative energy sources, Ayala is also gradually building its portfolio of renewable energy sources in solar, wind and hydro technologies. Investments in these technologies will be shaped in part by the implementation of the feed-in-tariffs which the government is expected to announce in the coming months. Beyond these initiatives the company continues to actively pursue a robust pipeline of greenfield projects and acquisition opportunities in the power sector.

Ayala President and Chief Operating Officer, Mr. Fernando Zobel de Ayala, said, “The company is in a phase of active investment and is eyeing to build new businesses in power and transport infrastructure. In the same manner Ayala invested in the telecom and water sector in the past, we believe the power and infrastructure sectors are critical for the country’s growth and development. We hope to be able to contribute in some measure to the development of these sectors and at the same time create future sources of earnings and value for the group.”

While the company remains focused on the Philippines, it also continues to explore opportunities in other markets in the region. It recently acquired a 10% stake in Ho Chi Minh Infrastructure Investment Co. (CII), a leading player in the infrastructure sector in Vietnam. CII holds toll road concession agreements such as the 15.7-kilometer expansion of the existing Ha Noi Highway which connects the northeastern part of Ho Chi Minh City to Bien Hoa, an industrial center located in the southern part of Vietnam.

Ayala believes this investment provides strategic access to other infrastructure opportunities which may present opportunities for the Ayala group to establish a presence across several sectors in Vietnam.

Ayala Corporation’s share price has risen by 46% year-to-date with market capitalization of over P260 billion.

The above statement pertains to the disclosure made today to the Securities and Exchange Commission, Philippine Stock Exchange, and Philippine Dealing and Exchange Corporation, by Ayala general counsel Solomon M. Hermosura.

Ayala Land, Inc. (ALI) successfully placed 680 million shares of its common stock at P20 per share for a total of P13.6 billion. The transaction was structured as a top-up placement where Ayala Corporation sold 680 million of its listed ALI shares and simultaneously subscribed to the same number of new ALI common shares.

Following this transaction, Ayala Corporation’s percentage ownership in the voting stock of ALI will be marginally reduced from 73.07% to 71.22% and its ownership in ALI’s common stock will be reduced from 53.06% to 50.43%.

The transaction is not expected to result in any impact on Ayala’s cash flow and net income.

The transaction was launched as a placement of 530 million shares at an indicative price range of P19.80 to P20.20 per share. Due to strong demand, ALI increased the offer size to 680 million shares. This landmark transaction represents the largest overnight placement by a real estate company in Southeast Asia since 2005, as well as the largest ever overnight placement in the Philippines.

ALI will use the proceeds of the share placement primarily to fund its next phase of expansion, enabling it to sustain its high growth trajectory. In addition to its previously announced P37 billion capital expenditure program for 2012, ALI has identified significant land banking opportunities amounting to approximately P36 billion over the next two to three years. Approximately P20 billion of this may be deployed in Makati City and other parts of Metro Manila and the balance in growth centers in Nuvali and other parts of Luzon and in the Visayas and Mindanao.

Furthermore, a portion of the proceeds is also expected to partially fund ALI’s strategic alliance with a group led by Mr. Ignacio R. Ortigas and resulting participation in OCLP Holdings, Inc., the parent company of Ortigas and Company Limited Partnership, for which it allocated an initial investment of P15 billion. This alliance is expected to provide ALI with access to prime properties in Metro Manila amounting to about 55 hectares.

Ayala Corporation is the Philippines’ best managed company, according to the annual poll of FinanceAsia, a leading financial publication covering the region’s capital and banking markets.

Ayala Land, Inc. (ALI), Bank of the Philippine Islands, Globe Telecom, and Manila Water ranked 3rd, 5th, 6th, and 8th place among Philippines companies, respectively.

Ayala Corporation was also deemed best in corporate governance and corporate social responsibility, and ranked second for investor relations. Ayala subsidiaries also ranked high in these categories. BPI, ALI and Globe were third, fifty, and seventh best in governance. Globe and BPI were in fourth and eighth place for investor relations. MWC, Globe, and BPI were in second, sixth, and seventh place for corporate social responsibility.

Globe, BPI, and Ayala were ranked second, third, and sixth best among companies most committed to a strong dividend policy.

ALI president Antonino Aquino is among the Best CEOs in the Philippines.

Published on May 16, the results of FinanceAsia’s 12th annual poll of Asia’s top companies were gathered from votes of 265 investors and analysts across the region.

In addition, Hong Kong-based publication CorporateGovernanceAsia once again recognized corporate governance in the Ayala group as among the Best of Asia. Ayala Corporation, ALI, Manila Water, and ALI subsidiary Cebu Property Ventures and Development Corporation were among the companies recognized in the magazine’s 8th Annual Recognition Awards for continuing to lead the way in initiating best practices which provide an open, ethical and continuing dialogue with stakeholders in the spirit of fairness and Asian values.

Ayala group has once again topped the list of publicly listed companies with the highest standards in good governance.

Ayala Corporation, Ayala Land, Inc. and Manila Water Company were recognized as Platinum Plus awardees during yesterday’s Annual Dinner staged by the Institute of Corporate Directors (ICD).

The Platinum Plus Award is given to companies who have been part of the Gold circle for four consecutive years.

Bank of the Philippine Islands also achieved Gold standing this year joining the category of companies with 95% and above ratings.

Silver citations were also given to Globe Telecom, Integrated Micro-Electronics, Inc., and ALI subsidiary Cebu Holdings Inc. with scores ranging from 90 to 94%.

Evaluation was based on the companies’ practices pertaining to shareholder rights, equitable treatment of shareholders, role of stakeholders, disclosure and transparency, and board responsibilities.

“Our experience in the Ayala group, being an enterprise that has been operating for the past 178 years, affirms that good governance is imperative in creating a sustainable enterprise over the long term,” said Jaime Augusto Zobel de Ayala, Chairman and CEO.

This year’s corporate governance scorecard evaluated a total 196 publicly-listed firms yielding an average score of 76%.

Ayala Corporation’s net income reached P3.5 billion in the first quarter, 42% higher compared to the same period last year. This was driven by a 35% increase in equity earnings as its real estate, banking, and water businesses registered strong double-digit growth in earnings in the first three months of the year. Significant improvements in its electronics and business process outsourcing businesses also helped lift earnings during the period.

Real estate unit, Ayala Land, Inc., maintained solid growth posting a 31% increase in net income to P2.1 billion. This was underpinned by strong revenues and net income margin improvement. Revenues grew by 17% to P12.4 billion with double-digit increases across all business segments. Residential and property development revenues grew by 18% on the back of strong take-up of Ayala Land Premier, Alveo and Avida residential products, which combined, nearly doubled versus the first quarter of last year. Revenues from its commercial leasing and hotels and resorts businesses also grew by 21% and 16%, respectively, as it continued to expand gross leasable area. Ayala Land remains on track with its 37-billion peso capital expenditure program this year for project completion and land acquisitions.

Its banking unit, Bank of the Philippine Islands (BPI), registered a net income of P5.8 billion, significantly ahead of the previous year’s P2.8 billion. This was fuelled by its core banking business as well as securities trading gains. Loans grew by 20% as lending remained brisk across all customer segments, while the bank’s 30-day non-performing loan ratio improved further to 2.0%. BPI’s deposits grew by 7%, putting total assets under management to P716 billion, up 15% year-on-year. Net interest income grew by 8% aided by a 14 basis point improvement in net interest margin. The bank’s earnings were further enhanced by trading gains amounting to P3.7 billion as the bank sold some of its securities in inventory. BPI is set to pay a special cash dividend of P0.50 per share in addition to its regular cash dividend of P0.90 per share for the first half of the year.

Telecom unit, Globe Telecom (Globe), continued to build on the momentum it achieved over the past six quarters. Consolidated revenues in the first quarter reached a new all-time high of P20.2 billion, 6% higher year-on-year. Its mobile business performed strongly driven by robust demand for its postpaid and prepaid services. Globe’s broadband business also continued to grow with revenues up 13% year-on-year. Its new mobile and broadband services attracted subscribers which resulted in higher net adds during the period, pushing mobile subscriber base to 31 million, up 14% versus last year, and broadband subscribers to 1.5 million, 26% higher versus the same period last year. Operating expenses and subsidy were higher driven by the growth in postpaid customers and expenses related to the Company’s network modernization program. This, coupled with higher financing and other non-operating charges, resulted in a 10% decline in reported net income. Core net income, which excludes foreign exchange and mark-to-market charges and one-off items, was 7% lower at P2.7 billion.

Its water unit, Manila Water Co., Inc. posted a net income of P1.3 billion, 64% higher than the same period last year. This was a result of higher revenues due to strong sales in the East Zone and the impact of the tariff increase implemented at the start of this year. Revenues grew by 28% with new businesses in Laguna, Boracay and Clark contributing nearly 5% of total. Operating expenses, however, increased by 23% due to higher power and overhead costs as the company continued to expand its water and wastewater network coverage and pursued new business initiatives. Manila Water was recently awarded the bulk water supply project in Cebu and was also recently awarded the right to purchase a 49% stake in Kenh Dong Water Supply which owns and operates major water infrastructure in Ho Chi Minh City in Vietnam.

In the meantime, Ayala’s international businesses reported improvements in performance during the quarter. Its electronics unit, Integrated Microelectronics, Inc. (IMI) posted a 128% growth in net income year-on-year as revenues grew by 24%. This was attributed to the company’s business expansion in Europe and Mexico and reduced operating expenses.

The investee companies of its BPO holding company, LiveIt, likewise improved results with combined revenues of US$255 million, of which LiveIt’s share was US$83 million, up 12% versus the prior year. Greater scale and cost efficiencies resulted in its share of EBITDA growing by 18% to US$7 million, and in the further reduction of its net loss, which was primarily due to acquisition related charges.

Ayala Corporation president and chief operating officer Fernando Zobel de Ayala noted, “We are encouraged by the sustained growth trajectory of our core businesses and the improving performance of our international businesses. Domestic consumption remains robust which continues to benefit our core businesses. We continue to pursue our capital investment and expansion plans, taking advantage of this favourable macro-economic environment and ensure we sustain our growth momentum moving forward.”

Ayala is looking to participate in selected infrastructure projects under the government’s public private partnership (PPP) program. The company recently partnered with Metro Pacific Investments Corp. to jointly pursue light rail transit projects in Metro Manila after winning the first road project under the PPP program.

It was also recently awarded by Ho Chi Minh City Infrastructure Investment Joint Stock Company (“CII”), the right to purchase a 10% stake in CII. CII is a leading player in the infrastructure sector in Vietnam with a portfolio of strategic infrastructure assets, including water treatment plants and toll roads serving Ho Chi Minh City and surrounding areas.

Ayala recently raised P10 billion through a corporate bond issue to gear up for potential capital requirements.

Ayala ended the quarter with cash at the parent level of nearly P14 billion and net debt to equity of 0.23 to 1. The company’s share price has risen by 47% year-to-date, closing yesterday at P458.80 per share.

The above statement pertains to the disclosure made today, May 11, 2012, to the Securities and Exchange Commission, Philippine Stock Exchange, and Philippine Dealing and Exchange Corporation, by Ayala chief finance officer Delfin C. Gonzalez, Jr.

Ayala Corporation commences today its public offer of P10-billion 15-year corporate bonds due 2027. This would be the first corporate bond in the domestic capital market with a 15-year tenor. Bonds bear an interest rate of 6.875 per cent per annum.

Ayala is raising funds for its capital requirements to enable the company to realize opportunities for expansion both through organic growth of its existing business lines as well as value-accretive acquisitions. This includes opportunities presented by various domestic infrastructure projects. The company recently won the bid for the Daang Hari connector road under the government’s public private partnership program. It also recently forged an agreement with the Metro Pacific group to jointly pursue and develop light rail transit projects in Metro Manila. Part of the proceeds of the bond offer will also be used to prepay the company’s debt.

Ayala Corporation treasurer Ramon Opulencia noted, “We always ensure that we maintain a highly flexible funding position at the holding company level that will allow us to invest in sizable projects without impeding other value-enhancing initiatives we are currently undertaking. The low-interest rate environment and the robust liquidity in the system provide an ideal environment for us to be able to stretch our tenors and match the anticipated long gestation period of the investments that Ayala envisions.”

Ayala has been a consistent and innovative issuer in the domestic capital market over the past few years. It has pioneered investment products in the local market that provided the broader investing public, particularly retail investors, with alternative investment choices. In May 2011 Ayala raised P10 billion through a bond offering that was the first to provide investors with multiple put options. One of its landmark capital market deals, among others, was a local currency denominated hybrid shares launched in 2006 which had a follow-on offer in 2008.

Ayala Corporation’s balance sheet remains strong. It ended 2011 with a very healthy cash position and a low gearing level with net debt to equity ratio of 0.24 to 1.

This year’s P10-billion bond offer will be offered to the public through the mandated underwriters, namely, BPI Capital Corp., BDO Capital & Investment Corp., First Metro Investment Corp., Hongkong and Shanghai Banking Corp., ING Bank Manila, RCBC Capital Corp., SB Capital Investment Corp., and Standard Chartered Bank.

The bonds will be listed in the Philippine Dealing and Exchange System (PDEX) on May 11, 2012.

Two of the country’s largest conglomerates are joining forces to develop light rail projects in Metro Manila.

Ayala Corporation and Metro Pacific Investments Corporation signed today a memorandum of agreement to form an exclusive strategic partnership to jointly pursue and develop light rail projects in the greater Metro Manila area. Under the agreement, each of the parties will own a 50% interest in the light rail projects and related real estate development undertakings. The partnership is initially eyeing to bid for the light rail transit projects identified under the government’s Public Private Partnership program (PPP). However, it is also open to work together on other rail-related opportunities.

Ayala and MPIC are two of the largest conglomerates in the Philippines with a combined market capitalization of over 300 billion pesos. They each have a solid track record and experience in developing large-scale infrastructure projects. These two companies have proven their respective capabilities in delivering public utilities such as water infrastructure services and toll road operations and management. The combination of their experiences in these sectors, plus their individual expertise and capabilities in other areas, power distribution and healthcare in the case of MPIC, and large scale mixed-use real estate projects in the case of Ayala, create a unique and powerful alliance that can bring immense value as the country seeks to improve its light rail transit system.

According to Ayala Corporation Chairman and Chief Executive Officer, Jaime Augusto Zobel de Ayala, “We are glad to be partnering with the Metro Pacific Investments group for this specific purpose. We each have unique strengths and capabilities that, when combined, create a unique value proposition in rail development. We hope to contribute meaningfully in helping raise the standards of our public utilities. This is vital to our nation’s progress and competitiveness. Developing an efficient mass transit system is a huge endeavor which will be better served by the synergies created by this partnership.”

For his part, MPIC Chairman, Manuel V. Pangilinan said, “We are pleased to share a common ground with Ayala Corporation through the Light Rail Projects. This strategic alliance will create integrated solutions that will improve public transportation through our vision to transform the country’s light rail transit system into a network very much like those in Hong Kong, Singapore, Kuala Lumpur and Osaka.”

“The existing system is over capacity and under invested – the need to improve the existing rail systems now cannot be overemphasized. Our initiative to join hands in addressing these concerns, signifies our commitment to help Filipinos become more productive and to contribute to the country’s overall infrastructure development and economic growth. ” Mr. Pangilinan said in closing.

This is not the first time Ayala and MPIC forged an alliance. Both companies also combined forces in the bid for the Angat water project in March 2010.

Ayala Corporation’s consolidated audited net income for 2011 reached P9.4 billion on the back of strong recurring earnings growth posted by the core businesses in real estate, banking, and water as well as improvements in its international real estate business and BPO businesses.

The Ayala businesses’ growth momentum has been very positive. They remain dominant in their respective industries despite intense market competition. The growth trajectory of Ayala’s businesses is expected to continue as it aggressively expands its products and services to a broader market base.

For this year, the Ayala group has allotted P91 billion for capital expenditures, 38% higher compared to capital expenditures last year. The bulk of this year’s allotment is for real estate development, network improvement in its telecom unit, and acquisitions as well as investments in its water business.

The company is also expanding into new businesses, particularly in power generation and transport infrastructure. Last year, Ayala committed capital of close to P7B for the development of projects in solar, wind, hydro, and thermal power generation, as well as for the construction of a four-lane 4-kilometer road that will link Daang Hari road in Cavite to the South Luzon Expressway under the first public-private partnership (PPP) project of the Aquino government.

Ayala looks to continue with its development works and progress in its pipeline of projects in both conventional and renewable energy sources. It is also actively monitoring opportunities under the government’s PPP program that are expected to be rolled-out this year, particularly rail, road, and airport-related projects.

Ayala’s share price has risen by 37% year-to-date to P424.80 per share as of the close of trade April 19, 2012, outperforming the Philippine Stock Exchange composite index which rose by 18% over the same period.

Press statement on the occasion of Ayala’s Annual Stockholders’ Meeting held today, April 20, 2012 at InterContinental Manila.

The consolidated unaudited reported net income of Ayala Corporation reached P9.4 billion in 2011. This was 16% lower than reported net income in 2010, which included an extraordinary net gain of P3.6 billion versus only P611 million this year. Excluding extraordinary gains this year and last year, net income grew by 16% year-on-year. The strong growth in recurring earnings was driven by core businesses in real estate, banking, and water as well as improvements in its international real estate business and BPO businesses.

Most of the company’s core business units posted record earnings in 2011. Ayala Land, Inc. achieved a record net income of P7.1 billion, 31% higher than prior year on the back of strong double-digit revenue growth across all business segments and margin improvements. Banking unit, Bank of the Philippine Islands, posted an all-time high net income of P12.8B in 2011, a 13% increase over 2010 earnings. This was underpinned by strong net interest income growth and higher net interest margins. The bank’s net loans grew by 20% as top-tier corporates, middle market and SMEs and consumer loans expanded at double-digit rate. Telecom unit Globe outperformed the industry as core net income grew by 11% to P10 billion. Globe’s revenues reached an all-time high of P67.8B up 9% from last year and ahead of industry’s 2% growth. This was driven by the market’s positive reception of its product and technology innovations and service enhancements. Finally, water unit, Manila Water, Co., Inc. also posted an all-time high net income of P4.3 billion, 7% higher than prior year as billed volume continued to improve and as it connected more households into the system. Its new businesses in Laguna, Boracay, Clark, and Vietnam have likewise contributed positively to earnings.

Earnings of Ayala’s international real estate business turned positive in 2011 from gains realized from the exchange in ownership in Arch Capital and Arch Capital Asian Partners with The Rohatyn Group in the first quarter of last year. 2010 also included provisions for certain assets in its US operations.

The four investee companies under BPO holding company, LiveIt Investments, achieved combined revenues of US$1 billion of which LiveIt’s share was US$318 million, up 16% versus the prior year. Greater scale and cost efficiencies resulted in its share of EBITDA rising by 63% to US$25 million, and in the significant reduction of its net loss, which was primarily due to acquisition related charges.
The weak global economic environment, however, impacted the earnings of its electronics unit, Integrated Microelectronics, Inc. (IMI). While IMI’s revenues grew by 40%, its net income declined by 30% as a result of margin pressures from rising direct labor and materials cost.

“We are pleased with the solid performance of our core businesses in real estate, banking, telecom, and water”, said Ayala President and COO Fernando Zobel de Ayala. “Their growth momentum has been very positive and they remain dominant in their respective industries despite intense market competition across these sectors. The robust consumption trend and the healthy macro-economic fundamentals have created a very favorable operating environment. We expect the growth trajectory of our businesses to continue as we aggressively expand our products and services to address the needs of a still largely untapped segment of our population. We also expect our international businesses to improve their profitability moving forward as they benefit from scale following their acquisition initiatives the past years and as they benefit from cost optimization efforts.”

The Ayala group has allotted P91 billion for capital expenditures this year, an increase of 38% from capital expenditures last year. The bulk of this year’s allotment is for real estate development, network improvement in its telecom unit, and acquisitions as well as investments in its water business.

Last year, parent company Ayala established a platform for its new businesses in the power and transport infrastructure space. In 2011, the holding company committed capital of close to P7B for the development of projects in solar, wind, hydro, and thermal power generation, as well as for the construction of a four-lane 4-kilometer road that will link Daang Hari road in Cavite to the South Luzon Expressway under the first public-private partnership (PPP) project of the Aquino government. Ayala is eyeing other projects in the PPP list expected to be rolled-out this year, particularly rail, road, and airport-related projects.

The company has taken an aggressive stance in terms of expansion in the Philippines across multiple sectors, signifying its increased level of commitment to the country’s continued development. It has strong capacity to make these investments. Ayala ended 2011 with a very strong balance sheet with parent company cash of P18 billion and a very low gearing ratio with parent net debt-to-equity of 0.24 to 1. Return on equity was at 9%.

Ayala’s share price has risen year-to-date by 34% to P417 per share as of the close of trade March 8, 2012, outperforming the Philippine Stock Exchange composite index which rose by 13% over the same period.

This press statement refers to the disclosure submitted today to the Securities and Exchange Commission, Philippine Stock Exchange, and Philippine Dealing and Exchange Corporation by Ayala chief finance officer, Delfin Gonzalez, Jr.