Category: News

Manila Water Company announced that it has been engaged by the Philippine Tourism Authority (PTA) to devise, implement and monitor management plans that will improve the operations of the Boracay Water and Sewerage System (BWSS).

Department of Tourism Secretary and concurrent PTA general manager Joseph Ace H. Durano today signed the contract for management services with Manila Water to help address growing environmental concerns particularly on water supply and wastewater treatment in Boracay Island, a popular tourist destination. BWSS operates a water treatment plant in mainland Caticlan and a sewage treatment plant on the island.

“As wastewater disposal and treatment have become a major concern, we would like to further help the government’s programs on environmental protection by doing what we can to help preserve Boracay as one of the country’s major tourist destinations,” said Manila Water president Antonino T. Aquino. “This private-public partnership also provides us the opportunity to support the government’s thrusts in tourism as a major vehicle for economic development.”

Manila Water took over the operations of the East Zone concession of the Metropolitan Waterworks and Sewerage System in 1997 as part of the government’s biggest privatization project. It was listed in the Philippine Stock Exchange in 2005. Today, Manila Water provides water and wastewater services to nearly six million people in 23 cities and municipalities of the east zone concession of Metro Manila. It operates and manages the country’s biggest sewage treatment facility in Makati, and the largest and most modern septage treatment facility in Southeast Asia, located in Taguig City. Manila Water also operates and manages a water supply and sewerage project in Tirupur, India.

Integreon, a global leader in corporate, legal and financial complex knowledge process outsourcing (KPO), held a ceremony on Wednesday, January 30, to launch its new office in Makati City, Philippines.

The launch, held at the 6750 Office Tower on Ayala Avenue, was led by Jaime Augusto Zobel de Ayala, chairman and chief executive officer of Ayala Corporation. In October 2006, LiveIt Solutions Inc., Ayala group’s investment arm for business process outsourcing, and Integreon announced a management-led buyout transaction that resulted in a majority stake for LiveIt.

Also present were Fred Ayala, LiveIt CEO; Liam Brown, Integreon President and CEO; and Erik Joseph Tabuena, Integreon Philippines Country Manager.

In his keynote address, Zobel cited the Philippines’ capacity to become a “powerhouse” in knowledge process services and stated that, “The Ayala group is convinced that the time is right for the Philippines to re-position itself to become a leading global provider of outsourced high-value, professional services.”

“Our greatest asset is that Filipinos are well-educated and have an excellent ability to operate successfully across both multiple cultures and knowledge domains,” he stressed.

Zobel noted that globally competitive business organizations are investing heavily to enable their workforce to manage knowledge and to be more productive. In the US alone, there are an estimated 48 million knowledge workers out of its total 137 million workers. The value that can be attained even with a one-percent gain in total productivity by its knowledge workers is substantial, he noted.”The Philippines is well-positioned to gain a significant share of outsourcing serving knowledge-intensive businesses. I expect to see rapid KPO growth here.” he stated.

Fred Ayala, LiveIt Solutions’ chief executive officer, said that Integreon has a strong track record in delivering the highest levels of quality outsourcing services for the world’s top legal and financial firms. Integreon’s customers include six of the ten largest global investment banks, two of three largest global law firms, many Fortune 100 and FTSE 100 corporations, several top private equity firms and hedge funds. Integreon’s services enable its corporate clients to spend more time on high-value work such as strategy and competence enhancement.

“The entry of Integreon into the Philippines marks a breakthrough for the country into the high value add and rapidly growing KPO and LPO (Legal Process Outsourcing) sectors. For Integreon, the opening of our new Philippine operation will enable it to expand its geographic footprint, gain access to a large new pool of skilled managers and professionals, and enhance Business Continuity Planning capabilities,” Ayala said.

Liam Brown, Integreon’s CEO, added that Integreon, which has offices in New York, Mumbai, Delhi, London and North Dakota, has long viewed Manila as a potential strategic delivery site. Its relationship with Ayala Corp. brings a host of advantages from recruitment to commercial real estate procurement.

“The quality and abundance of talent as well as the affinity for US legal and financial frameworks are definite advantages in locating here” Brown stated, adding that, among popular offshore destinations, the Philippines offers the highest percent of graduates who are suitable for knowledge intensive tasks.

According to Brown, Integreon’s presence in the Philippines enhances the firm’s ability to seize opportunities in the Offshore Legal Services sector, which is expected to grow to nearly $500 million; E-Discovery, which involves the process of securing electronic data for litigation purposes and which is expected to grow to $3.4 billion within five yeas; as well as in Offshoring Research and Analytics in banking and financial services, which is projected to grow to $620 million within five years.

Founded in 1998, Integreon is a pioneer in the KPO and LPO sectors, and was named last year as the world’s leading provider of Research and Analytics outsourcing for the second year running, and the world’s leading provider of Legal Document outsourcing in the fourth annual “Black Book of Outsourcing” which is the Brown Wilson Group’s prestigious annual survey of outsourcing vendors and advisors.

About Integreon
Integreon provides knowledge support services such as research and analytics, electronic discovery and litigation document review, accounting, and document and graphic services, which enable professionals to focus their time and energy on their “highest and best use”. Clients include leading financial services institutions, major international law firms, and Global 2000 corporations. For more information about Integreon, please visit www.integreon.com.

About LiveIt
LiveIt Solutions, Inc. is the holding company for Ayala Corporation’s investments in business process outsourcing. It owns significant stakes eTelecare, Affinity Express, and Integreon. Founded in 1834, Ayala Corporation is the oldest business house in the Philippines and one of the largest conglomerates in the country. Ayala and its listed subsidiaries have a combined market capitalization of approximately $20 billion.

Ayala Corporation and its listed companies, Ayala Land, Inc., Bank of the Philippine Islands, and Globe Telecom, earned four of the five highest rankings of the 2007 Corporate Governance Scorecard Project conducted by the Institute of Corporate Directors (ICD).

A total of 138 companies, or more than half of the 249 companies listed in the Philippine Stock Exchange, participated in the ICD study, which was for the first time undertaken jointly with the PSE, Securities and Exchange Commission, and Ateneo Law School, and supported by the Center for International Private Enterprise. The top five rankings, which also included PLDT, were announced at the PSE Awards Night held on January 8 at the InterContinental Manila.

ICD is a professional, non-government organization that conducts training and advocacy for corporate governance and citizenship. It has been at the forefront of promoting corporate governance reforms in the country and has developed a corporate governance scorecard, a tool that public corporations can use to rate and benchmark their corporate governance practices relative to global and regional standards.

The CG Scorecard Project is envisioned to provide empirical data on the state of corporate governance among Philippine companies, help publicly listed companies strengthen their governance structures, and assist the SEC in reviewing principles for possible adoption by publicly listed companies. The scorecard is used to evaluate practices in the areas of shareholder rights, equitable treatment of shareholders, role of stakeholders in governance, disclosure and transparency, and board responsibilities key governance principles established by the Organisation for Economic Cooperation and Development and used as basis for corporate governance practices globally.

Led by the parent company, Ayala group companies assessed their own governance practices using ICD’s scorecard and submitted supporting documents including the latest annual report, manual of corporate governance, code of conduct, amended articles and by-laws, as well as information on stockholders’ meeting, public ownership, board attendance, and ethical standards. Accomplished scorecards from all companies were validated and analyzed within or outside the SEC in coordination with ICD. Students from the Ateneo Law School also helped verify the survey results against publicly disclosed information.

Manila Water recently received the International Finance Corporation’s Client Leadership Award in recognition of the company’s comprehensive approach in promoting sustainable development in the East Zone of Metro Manila and in the water and wastewater industry. Manila Water is the first Philippine company to receive this global award which is given annually. The awardee is selected after undergoing a rigorous selection process among IFC’s clients globally.

IFC, a member of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilizing private capital in local and international financial markets, and providing advisory and risk mitigation services to businesses and governments. IFC’s Client Leadership Award is a significant award as it recognizes highly successful corporate clients that significantly help IFC’s sustainability mission. Manila Water was given the award as the Company demonstrated strong management commitment to environmental and social sustainability and corporate governance while achieving commercial success.

“IFC has been a valuable partner in helping us prove that business objectives and sustainability initiatives are perfectly aligned, which is the core of our business strategy. We are honored to receive this award and proud of our longstanding partnership with IFC. We hope to continue this valuable relationship with IFC as we continue to grow our business,” said Manila Water president Antonino Aquino.

At the award ceremony in Washington, DC, IFC executive vice president and CEO Lars Thunell, said, “Manila Water’s innovative programs to bring water to poor people and its success in supplying the city’s eastern zone are just some of the ways that the company embodies IFC’s ideals in social sustainability and corporate governance.”

Globe Telecom posted a strong net income of P3.5 billion in the first quarter of 2006, flowing from its highest-ever quarterly EBITDA and EBIT of P9.7 billion and P5.7 billion, respectively. These results build on the momentum that started in the second half of 2005 when Globe introduced various compelling value-offers to its subscribers. They also reflect continuing efforts to manage the company’s cost of operations.

Globe’s first-quarter net income of P3.5 billion is up 19 percent from last year, despite the tripling of provisions for income tax year on year to P1.5 billion. The company’s effective income tax rate increased from 15 percent to 31 percent with higher corporate-tax rates and the expiry of the Globe’s tax holiday in March 2005. If the impact of mark-to-market and forex changes were to be excluded, the first quarter net income would be up 40 percent year on year and 19 percent quarter on quarter.

Net service revenues at P14.2 billion are 5 percent higher than the same period last year, but lower by 3 percent quarter on quarter with fourth-quarter 2005 revenues reflecting peak seasonal demand. Quarterly EBITDA and EBIT reached historic high points and grew by 23 percent and 39 percent, respectively, from first-quarter 2005 levels. EBITDA margins improved to 68 percent from 59 percent in the first quarter of 2005 and 64 percent in the fourth quarter of 2005.

In line with its thrust to improve price competitiveness and provide value propositions for specific customer segments, Globe further expanded its roster of innovative offers. Last February, Globe Text NonStop, under the banner offering Globe UNLIMITXT, was made a permanent feature to cater to the needs of heavy SMS users.

Extending its unique and compelling per-second offering for local calls to the IDD service, Globe introduced last March its Globe Tipid IDD Kada-Segundo, which allows per-second charging of US$0.003 to 12 select countries and US$0.007 for other destinations. Globe also made available its Tipid IDD rates of P7.50 per minute for calls to the U.S. and Canada on off-peak hours, and P7.50 per minute for calls to Hong Kong CSL mobile numbers. In addition, under Globe’s Kababayan Program, all Globe and Touch Mobile subscribers were offered reduced rates for calls to Saudi Arabia and Japan, as well as discounted SMS and voice calls to SingTel Mobile of Singapore. Finally, on April 16, Globe introduced another tariff breakthrough, the P0.90 per text to all networks, the lowest inter-network SMS rate in the market today.

This array of value offerings has helped strengthen Globe’s competitiveness and provide impetus for subscriber growth. Globe’s total wireless subscriber base reached 13.2 million at the end of the first quarter of 2006, 6 percent higher than the previous quarter’s 12.4 million and 2 percent better than last year’s 12.9 million. Net additions of about 0.8 million SIM cards reflect a significant turnaround from the previous quarter’s net disconnections of about 6,000.

On the wireline front, Innove Communications, Inc., registered a 2 percent year-on-year growth in service revenues to P1.6 billion by end-March, spurred by growth in the consumer broadband and corporate data businesses. This improvement in revenues was also underpinned by a roster of promotions such as free NDD calls of Globelines postpaid subscribers to any Globelines phone; lower IDD rates; the WorldPass Prepaid service that offered reduced internet browsing rates; and various bundled voice and unlimited dial-up and broadband internet services for Globelines subscribers.

“We are delighted by the market’s response to our initiatives and are encouraged by the results of the first quarter,” said Gerardo C. Ablaza, Jr., president and CEO of Globe. “While we expect competition to remain intense in the succeeding quarters, we will stay on course and strive to further strengthen our market position. We also remain committed to improving our operating efficiency and productivity.”

The above information was submitted on May 8, 2006, by Globe Telecom in compliance with the disclosure requirements of the Securities and Exchange Commission and the Philippine Stock Exchange.

The executive committee of the Board of Directors of Ayala, in the exercise of its authority set forth in the by-laws, has approved today the issuance and offering of Preferred “B” shares of the corporation in the amount of P3 billion with an option to increase the offer size up to P5.8 billion.

The Preferred “B” shares will be offered at its par value of P 100.00 per share with a fixed quarterly dividend rate based on a 5-year Mart. If the shares are not redeemed at the end of the 5th year from date of issue, the Optional Redemption Date, the dividend yield shall be adjusted to the higher of the original dividend yield and the 10-year FXTN benchmark as displayed on Mart1 page. Payment of current dividends shall be cumulative. The Preferred shares shall be non-convertible and shall have no voting and pre-emptive rights.

BPI Capital Corp. and Hongkong and Shanghai Banking Corp., Ltd. will be the Joint Issue Managers and book runners for the Issue. BPI Capital Corp., Hongkong and Shanghai Banking Corp., Ltd. and First Metro Investment Corp. will act as the Joint Lead Underwriters.

The executive committee likewise approved the filing of the Registration Statement covering the shares with the Securities and Exchange Commission and the application for listing of the shares with the Philippine Stock Exchange.

The above information was submitted on May 2, 2006 by Ayala managing director for corporate governance and legal affairs Renato O. Marzan in compliance with the disclosure rules of the Securities and Exchange Commission and the Philippine Stock Exchange.

Ayala has approved an investment of up to US$20 million in The Rohatyn Group Special Opportunity Fund Ltd (SOF). TRG Management LP, a member of The Rohatyn Group (TRG), is the investment manager of the SOF.

The investment will be made by Azalea International Venture Partners, Ltd., a subsidiary of Azalea Technology Investments.

The SOF is a fund whose primary (but not exclusive) investment objective is to generate superior risk adjusted returns and, from time to time, current income by opportunistically acquiring a diversified portfolio of undervalued investments and investments with significant growth potential in emerging market regions, including, without limitation, Latin America, Eastern Europe, Asia and Africa.

Ayala’s placements in investment funds such as the SOF, are part of Ayala’s strategy to work with partners to seek opportunities to expand its equity portfolio and generate returns from medium term investments.

The above information was submitted on April 3, 2006 in compliance with the disclosure requirements of the Securities and Exchange Commission and the Philippine Stock Exchange by Ayala managing director and head of corporate governance and legal affairs Renato O. Marzan.

The Board of Directors of Ayala Corporation approved on February 10 2006, the reclassification of the unissued Preferred shares and redeemed Preferred shares of the Corporation, into 5.8 billion new class of Preferred shares with a par value of P1.00 per share or an aggregate par value of P5,800,000,000.

The new Preferred shares, to be known as Preferred “B shares”, will have the following features :

1. Optional redemption by the Corporation;

2. Issue value, dividend rate and declaration thereof to be determined by the Board of Directors;

3. Cumulative in payment of current dividends as well as any unpaid back dividends, and non-participating in any other further dividends;

4. Non-convertible into common shares;

5. Preference over the holders of common stock in the distribution of corporate assests in the event the dissolution and liquidation of the Corporation and in the payment of the dividend at the rate specified at the time of issuance;

6. Non-voting except in those cases specifically provided by law;

7. No pre-emptive rights to any issue of shares, Common or Preferred; and

8. Reissuable when fully redeemed.

 The Board likewise approved the amendment of Article VII of the Amended Articles of Incorporation of the Corporation to reflect the aforesaid reclassification of preferred shares.

The foregoing acts of the Board will be submitted for the ratification of the stockholders during the annual stockholders’ meeting of the Corporation on 07 April 2006.

The above information was submitted by Ayala managing director for corporate governance and legal affairs Renato O. Marzan in compliance with the disclosure requirements of the Securities and Exchange Commission and the Philippine Stock Exchange.

Ayala Corporation has sold and transferred all its 50,600 outstanding shares of Aon Philippines Inc. (formerly Ayala Aon Risk Services, Inc.) in favor of Aon Holdings B. V. for the aggregate purchase price of P65.7 million. The above information was submitted on January 17, 2006 by Ayala managing director for corporate governance and legal affairs Renato O. Marzan in compliance with the requirements of the Securities and Exchange Commission and the Philippine Stock Exchange.

Businesses can use their core competencies to come up with sustainable corporate social responsibility programs that help uplift the lives of the underprivileged.

This new paradigm of how business can do good was put forward by Globe Telecom president and CEO Gerardo C. Ablaza, Jr. at the recently concluded Corporate Social Responsibility (CSR) Week Expo organized by the 59-strong League of Corporate Foundations.

Ablaza said that by including social issues into the development and execution of core business strategies, companies have the opportunity to contribute to the development of marginalized sectors of society and turn them into consumers and active participants in nation building. This way, CSR efforts go beyond promoting good public relations and become sustainable solutions to social problems.

The Ayala group, for instance, has integrated CSR in its corporate strategy. The parent company actively manages its portfolio to ensure that investments in property, banking, telecommunications, water infrastructure, electronics and information technology deliver innovative and high quality products and services to its stakeholders.

“In the Ayala group, we believe that the daunting task of leading our country to progress does not rest solely on the shoulders of government,” explained Ablaza, “One of the better ways of participating in national development is the effective use of our core products and services to uplift the lives of the Filipino.”

Meanwhile, programs driven by the Ayala Foundation and Ayala subsidiaries and affiliates are focused on education, information technology, livelihood, microfinance, and community development”‚”areas that not only reflect the companies” core values but also form part of their core competencies.

In the case of Manila Water, its flagship program Tubig Para Sa Barangay has not only improved water supply, addressed health and environmental issues, and enhanced the quality of life in underserved communities, it has also reached a substantial market and reduced revenue losses from illegal connections and leaks.

Bank of the Philippine Islands has extended credit of over P60 million to non-profit institutions, cooperatives and micro-entrepreneurs. BPI Foundation also trains small and medium enterprises to help improve viability and profitability.

Ayala Land’s Dagdag Kita sa Pamilya program conducts livelihood training for the unemployed. This also helps ensure that its property developments would continue to have vibrant neighboring communities.

At Globe Telecom, the Bridging Communities, or BridgeCom program is focused on community leadership and development, education, information technology, and livelihood.

Ablaza cited the case of Brgy. Bolton, a farming and fishing community eight hours away from Davao City that has begun to struggle with increasing unemployment and migration of its skilled workers to the city. Globe Telecom, in partnership with ABS-CBN Foundation, created the BridgeCom sa Bayan training program in local governance and business development. As an offshoot of this, three store owners have started a Globe Autoload Max business and community leaders have defined their own micro-enterprise plans.

In another case, G-Cash, a service that allows payments and fund transfers through mobile phones, is now being tapped by the Rural Bank Association of the Philippines to facilitate loan amortizations and deposits for its microfinance borrowers.

According to Ablaza, BridgeCom addresses the needs of two major underserved sectors: the entrepreneurial poor who have the capacity to become successful business people using the Autoload Max platform, and micro-credit institutions and cooperatives through G-Cash. While these cases are unique to the Ayala group, Ablaza said that businesses can follow similar paradigms that deliver returns for its investors as well as society at large. By shifting CSR from charity and ad hoc forms of support to more strategic programs, business can make a real and lasting impact on society.

As Ablaza said: “Nothing brings greater joy and fulfillment than the knowledge that we have offered our talents and efforts in helping others stand on their feet and live their lives with dignity.”

Bridging Communities