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Creating Shared Value Map

Our Vision

To be the most relevant, innovative, and enduring Philippine-based business group, enabling shared value and prosperity for the many stakeholders we serve

Our Mission

To be profitable and create value and synergies while forging partnerships and alliances

Our Core Values

  • Integrity
  • Long-term Vision
  • Empowering Leadership
  • Commitment to National Development

Our Purpose

To improve lives through resilient businesses and risk-calculated investments that have a meaningful and lasting impact on the country’s economic and social landscape

Our Promise

Reinventing businesses, Transforming communities

Key Drivers

  1. Micro and Macro Economics
  2. Megatrends
  3. Leading Sustainability Practices

Sustainability Statement

Our transformation path emphasizes strengthening our environmental, social, and governance aspects in alignment with SDGs to create meaningful and lasting impacts that address marginalization, untapped potential, and irresponsible growth.

Sustainability Blueprint Principles

  1. Outside-in
  2. Bold leadership
  3. Impact at scale
  4. Focus
  5. Public-private partnership

Our Strategy

Ayala addresses structural and societal gaps in the Philippines by building impactful businesses and transforming them into industry-leading subsidiaries. Our long-term value creation is driven by a combination of a robust financial strategy and a holistic non-financial strategy with sustainability at the core. Over decades, this framework has enabled us to create strong franchises by identifying opportunities in nascent or disrupted sectors.

As our financial management strategy helps us be financially strong to grow and expand, our non-financial management strategy helps us ensure that we remain relevant despite the fast-changing business and social climates. Both strategies are given equal importance in Ayala and drives the group to be continually resilient and innovative.

financial management strategy

Our financial management strategy is rooted in discipline and a conscious alignment to the vision of Ayala to be the most relevant, innovative, and enduring business group. Using the five vision pillars as a guide, management gains a better understanding of how decisions on capital allocation, portfolio management, business development, and balance sheet management impact the overall strategy, allowing the company to be agile and ensure its longevity.

Our strategy execution is driven by four elements:

1

Strategic Business
Development

We continue to refine our existing business strategies and to identify new opportunities by leveraging our financial, intellectual, human, and social and relationship capital.
2

Robust Capital
Allocation

We utilized quantitative and qualitative criteria and a multi-step management approach to fund new or existing businesses.
3

Active Portfolio
Management

We continue to balance our holdings to crystalize value.
4

Active Balance Sheet Management

The engine that allows us to stay nimble drives our capacity to grow.

These four are done in the context of key global, regional, and local trends that we believe will impact markets, sectors, and businesses in which we choose to invest and operate.

  • Core Value Drivers
  • Portfolio Investments
  • Emerging Businesses
Our management approach and constant reinvention has cemented our business leadership over the past
185 years

Non-financial management strategy

The other component that defines the way we do business is our commitment to sustainability. Our non-financial management strategy revolves on:

1

Human Resource
Development

The belief that our employees are our primary customers and their welfare is our priority.
2

Corporate
Governance

This makes sure that we comply with policies and regulations required of responsible companies.
3

Stakeholder
Management

This is where we operate with the welfare of our stakeholders in mind.
4

Risk
Management

This gives us the balance and cautions us as we keep our balance sheet strong.
5

Brand
Management

Our mindset is that everything we do affects our brand and reputation.

With these, Ayala annually looks at environmental, social, and governance performance as aligned with its Sustainability Reporting Framework. Moreover, Ayala also monitors how it creates shared value and ensures that it significantly contributes to the UN Sustainable Development Goals through the commitments set in the Ayala Sustainability Blueprint.

Our Business Model

Ayala addresses structural and societal gaps in the Philippines by building businesses and transforming its industry-leading subsidiaries. Our long-term value creation is driven by our strategies with Sustainability at our core.
  • VALUE WE DRAW FROM
  • WHAT WE DO
  • TARGETS FOR 2020
  • VALUE WE CREATED IN 2020

FINANCIAL CAPITAL

Strong financial position including:

  • Reliable operational cash flow
  • Affordable, reliable access to debt supported by a robust capital allocation process

INTELLECTUAL CAPITAL

  • Deep expertise of Philippine ecosystem and key industries
  • Corporate culture focused on lifelong learning
  • Comprehensive governance and risk approach

HUMAN CAPITAL

  • Best-in-class talent across departments and disciplines
  • Diversity of talent, including global perspective and mindset

SOCIAL AND RELATIONSHIP CAPITAL

  • Strong relationships with a vast network of business partners, investors, communities, academe, and other relevant entities
  • Strong, trusted Ayala brand

Financial Management Strategy

  • Strategic Business Development
  • Capital Allocation
  • Portfolio Management
  • Balance Sheet Management

Non-Financial Management Strategy

  • Human Resources Development
  • Corporate Governance
  • Stakeholder Management
  • Risk Management
  • Brand Management
Strategic Business Development
  • We continue to explore new sectors, geographies, and expert partners to develop new business models that will drive our growth
  • We identify partnership opportunities among our business units and create an environment for collaborative innovation
Capital Allocation
  • Using quantitative and qualitative criteria and a multi-step management approach, we allocate financial resources to businesses we believe provide the best risk-adjusted stakeholder returns over the long term
Portfolio Management
  • We carefully evaluate the performance of our subsidiaries vis-à-vis market behavior to guide decisions on investments or divestments in a timely manner
Balance Sheet Management
  • We maintain a healthy balance sheet with significant debt capacity and a well spread out maturity profile, which gives us the flexibility to fund future growth opportunities. This is augmented by an optimal foreign exchange and interest rate mix and a healthy cashflow adequacy ratio
Human Resources Development
  • We continue to build competencies to support the growing requirements of our businesses
Corporate Governance
  • We continually improve our policies and monitor our practices to ensure we are at par with the best standards of corporate governance
Stakeholder Management
  • We continue to listen to our stakeholders and keep them informed on matters important to their decision-making
Risk Management
  • We continue to elevate risk management as an essential consideration in every decision, activity, and initiative of the company
Brand Management
  • We continue to build and protect our brand by ensuring we deliver on our promise, and effectively communicate what we stand for as a company
Note that the below priorities have shifted during the pandemic.
  • Strong, diversified portfolio earnings and returns amid economic cycles
  • Net Income: ₱50 billion
  • Return on Common Equity: 15 percent
  • Market Capitalization rank: 1st or 2nd
  • Continue to strengthen Ayala’s Balance Sheet; optimum funding in a volatile market environment, manage financing cost at 5.4 percent or even lower
  • Maintain a high level of Liquidity of at least ₱20 billion, to support budgeted allocation and new investment opportunities
  • Explore opportunities for yield enhancement, and increased focus on Asset and Liability Management and credit management
  • Positively disrupt, transform the industries, and impact the markets we serve
  • Continue to be the employer of choice for a highly engaged employee base
  • Maintain an empowering and motivating environment that allows people to effectively leverage their knowledge, relationships, and expertise to drive value
  • Prepare workforce for potential disruption from increasing adoption of digital technology in business
  • Sustain ongoing relationships with existing business partners while keeping our doors open for new ventures and partnerships
  • Ayala remains a strong and trusted brand
Our diversified portfolio supported financial performance and allowed us to deliver value to our stakeholders amid the ongoing crisis.
  • Consolidated Net Income of ₱17.1 billion
  • ROCE of 5.1 percent
  • Market capitalization of ₱519 billion in 2020
  • Loan to value ratio of 9.2 percent
  • Blended cost of debt of 4.5 percent
Several businesses within the group have also been able to execute key value realization exercises to recycle capital and fund growth:
  • Ayala Land launched the first Real Estate Investment Trust (REIT) in the Philippines and raised ₱12.3 billion
  • VIA Optronics, a subsidiary of IMI, successfully listed on the New York Stock Exchange (NYSE) and raised US$94 million
  • ACEN announced in November 2020 the investment of GIC for a 17.5% stake in the company. The investment is expected to raise a total of ₱20 billion
  • Maintained leadership and strengthened expertise in our businesses, including:
    1. Ayala Land in integrated mixed-use master planned communities
    2. BPI as a trusted financial services provider, and alongside Mynt, a leader in digital banking and electronic wallets
    3. Globe in wireless market and as a purveyor of the Filipino digital lifestyle
    4. AC Energy as a regional player in renewable energy development and power generation
  • A competent workforce of more than 60,000 direct employees across our businesses
  • Continued efforts to build Ayala leaders
  • Good quality of life for employees and their families, including holistic support provided amid the COVID-19 pandemic
  • Management excellence as evidenced by award-winning teams across Finance, Governance, Strategy, and Strategic Human Resources
  • Ayala remains a strong and trusted brand
  • Sustained ongoing relationships with existing business partners, while keeping our doors open for new ventures and partnerships
  • Established strong linkages with private sector and government in the Philippines to jointly address and manage the impact of the COVID-19 crisis
    1. The Ayala Group was part of Project Ugnayan, a private sector consortium which supported economically displaced Filipinos amid the crisis, in partnership with Caritas Manila and the Philippine Disaster Resilience Foundation (PDRF)
    2. The group is also a strong supporter of Task Force T3 (Trace, Test, and Treat), the government’s project with private sector to ramp up the health system capacity and roll out vaccination

Our Outlook

Ayala defines its strategy in the context of key global, regional, and local trends that we believe will impact markets, sectors, and businesses in which we choose to invest and operate. We monitor the evolving macroeconomic environment and adapt our strategic and investment decisions. Our goal is to remain well-positioned to leverage and mitigate the impact of these factors.

The year 2020 was unlike any other, with the COVID-19 pandemic disrupting nearly every aspect of businesses and of people’s lives. The Philippine economy experienced the worst contraction in the region, and there remains much work to be done to ensure a strong and inclusive recovery. While the beginning of the vaccine rollout brings new optimism, we expect considerable uncertainty to remain, which we believe requires organizations to be nimble enough to adapt to changes as they occur.
How Our Strategy Addresses ThisAyala Corporation is focused on maintaining a healthy balance sheet to weather looming economic headwinds. Our strong financial position ensures we have the ability to take advantage of market opportunities. Across the group, we continue to keep a close eye on changes in customer demands and behaviors, and we are prepared with flexible scenario-based plans to continue to serve our customers, maintain the trust of investors, and ensure the health and safety of our employees and partners.
FinancialIntellectualHuman

Increasing access to technology coupled with the mobility restrictions due to the COVID-19 pandemic have accelerated the transition to digital, with rising demand for innovative and contactless product and service solutions. To fulfill this evolving demand, new ecosystems such as e-commerce, fintech, and on-demand logistics continue to grow and mature. We expect competition to intensify as technology-enabled challengers continue to enter traditional industries, and as traditional players begin to make significant investments in upgrading their own capabilities.
How Our Strategy Addresses ThisWe continue to empower our business units to embark on their own digital transformation journeys. Our brick and mortar establishments have accelerated their omnichannel strategies, with many digital solutions expected to remain for the long-term, as we continue to innovate and improve on our touchpoints with the customer. As we explore new ways to integrate digital tools into our businesses, we place greater emphasis on those that will allow us to serve our customers better, and those which help reduce costs and frictions within the organization. Furthermore, we continue to support our investments in new ecosystems – such as GCash for financial payments, Zalora for e-commerce, and Entrego for logistics – as well as build the necessary core capabilities within the organization, such as data analytics, to fuel growth.
FinancialIntellectualHuman

Despite the challenges faced in previous months, we expect strength in consumption spending to gradually return. Unemployment has recovered to single digit from a 15-year high at the height of the lockdown in April 2020, and we believe this will continue to shrink as mobility returns and as the economy recovers. Strength in consumer demand over the medium- to long-term is supported by a young population, resilient remittances, continuous urbanization, and a steady base of micro, small, and medium-sized enterprises, which help spur economic activity within their own communities.
How Our Strategy Addresses ThisWe continue to prioritize the Philippines with our businesses positioned to both contribute to and grow alongside the country’s development. Each of our businesses continue to explore ways to address the needs and demands of the broader market – such as BPI’s renewed focus on its Consumer and SME segments, providing a broad array of residential options through Ayala Land, and catering to the broad base of Filipino’s healthcare needs through AC Health. As a group, we recently launched the Ayala Enterprise Circle to help support the MSMEs across our network, and continue to find ways to better serve the partners in our ecosystem.
IntellectualSocial and Relationship

We believe that to create sustainable and long-term value, private enterprises must continue to strive for deeper engagement with society to address the various environmental, social, and governance (ESG) issues we face today. In response to these issues as well as a renewed call to action across many stakeholders, we see a trend towards more inclusive business models, investments in promising new technologies, more industries promoting the sustainable use of resources, and an increased focus on socially responsible investing strategies.
How Our Strategy Addresses ThisWe are increasingly deliberate about our contributions to the United Nations Sustainable Development Goals, which we first outlined in our Sustainability Blueprint: Bridging the Filipino to 2030. Several business units within the group are immersed in emerging sustainable technologies, including AC Energy’s commitment to producing 5GW of renewable energy by 2025, and AC Industrials’ investments in manufacturing for smart, electric vehicles, and solar technologies. Beyond these, we as a group, are committed to measuring and improving our ESG risk and impact. Each business unit has committed to actionable and measurable sustainability initiatives, and we continue to institutionalize the SDGs as performance metrics for our leaders.
IntellectualIntellectualSocial and Relationship

Amid these challenging times, greater collaboration between the private, government, non-government, intermediaries and academic institutions is more crucial than ever to unlock innovative and effective solutions. Furthermore, the flexibility and speed that a collaborative ecosystem can provide is critical not only to addressing the COVID-19 crisis, but ultimately to achieve our overall shared goals of a more sustainable and inclusive society.
How Our Strategy Addresses ThisAyala Corporation, and the broader Ayala Group, is proactive in helping address the health, social, and economic needs of the country in line with our shared values of nation building. Across different industries, we actively engage existing and potential partners to jointly address emerging issues. Finally, through collaboration with policymakers, the academe, and partner organizations, our Public Policy team and Regulatory Council participate in policy discussions on key reforms, which contribute to the overall economic growth and development of the country.
HumanSocial and Relationship

Our Vision Pillars

When the COVID-19 pandemic came into full swing in the first quarter of 2020, we understood the need for a more flexible approach to strategic planning. This resulted in a shorter-term planning cycle focused on protecting our workforce, supporting our stakeholders, and safely and efficiently restarting our business operations. Many changes to both business operations and consumer sentiment became apparent throughout the year. We believe these changes call for a renewed way of planning for the future, and a heightened focus on execution to facilitate recovery. Through recent planning sessions held within the Ayala Group, we have articulated a new set of vision pillars, anchored on a shared vision of recovery from the pandemic and resulting economic crisis.

As we look ahead to 2023, we commit ourselves to focused execution, strong capital investment, delivering an unparalleled customer experience, and leadership in sustainability – thus setting the stage for a bold decade of growth ahead. Underpinning our new vision pillars is an unwavering commitment to the Filipino – to doing our part to drive economic recovery from the crisis, and to ensure continued support for national development.
  • 2023 targets

FOCUSED EXECUTION

Our businesses were affected in varying degrees by the pandemic, owing to the diversified nature of the group. Regardless of the magnitude of impact, recovery from the crisis requires focus in executing strategic initiatives that enable the business to not only return to pre-pandemic levels, but to thrive in this new environment.
  • Recovery of financial performance to pre-COVID levels, including our subsidiaries Ayala Land, BPI, AC Industrials, and iPeople
  • Continued reinvention and growth of Globe and AC Energy amid a dynamic market
  • Building scale in our emerging businesses AC Health and AC Infra while addressing critical needs of the country
  • Delivering on key value realization initiatives to sharpen the portfolio and recycle capital into high growth opportunities
  • Continued market leadership in our core industries and developing meaningful presence in emerging sectors
  • Outperform industry peers in total shareholder return (TSR)
  • ₱50 billion NIAT
  • 15% ROCE
  • Outperform peers in total shareholder return and growth in market capitalizaton
  • Outperform PSE TSR
  • Increased earnings capacity and quality, and in addition, pursued value realization consistent with our strategy
  • Diversified returns through exposure to various industries

CAPITAL INVESTMENT

We believe capital investment is an important piece in driving recovery. We seek investments that enable growth and generate positive economic externalities, balanced with good returns.
  • Delivery of capital expenditure plans to fuel growth and economic activity, while maintaining a disciplined portfolio strategy that ensures balanced returns
  • Active management of our debt and cash flows to ensure that our balance sheet remains strong enough to support recovery and fuel concentric ventures
  • 20% of Equity Earnings from emerging businesses
  • Higher earnings contribution of emerging businesses, driven by AC Energy which continues to grow its renewable energy portfolio

UNPARALLELED CUSTOMER EXPERIENCE

As consumer demands evolve and new digital channels transform the way we interact with customers, excellence in the way we deliver our products and services is a key differentiating factor, which can drive growth.
  • Delivering a best-in-class customer experience across both traditional and digital channels for all business with consumer touchpoints
  • Identifying and executing key synergy initiatives across our business units, which drive value for the group, our businesses, and our customers
  • Further the data analytics capabilities of the Ayala Group to drive meaningful insights for strategic decision-making and to harness opportunities
  • 10% of Equity Earnings from international businesses
  • Expanded our presence in Southeast Asia through a landmark investment in the Yoma Group, and furthered our operations in Vietnam, Indonesia, and Australia

LEADERSHIP IN SUSTAINABILITY

We believe that recovery is most meaningful when it is inclusive, and strive to continue addressing gaps in environmental, social, economic, and governance frameworks. We also continue to invest in our employees and partnerships as critical pieces of what enables businesses and society as a whole to thrive.
  • Establish an ESG management framework focusing on climate change and broader ESG risks across our core businesses
  • Continued progress towards our 2030 Ayala Sustainability Blueprint, which is aligned with the UN Sustainable Development Goals Framework
  • Solidify the Ayala brand as employer of choice in the Philippines and across the region, through providing continued support and meaningful opportunities to our employees, and through developing a reputable and diverse bench of leaders within the different business units
  • Furthering partnerships with the private and public sectors, and supporting the rollout of the country’s national vaccination roadmap to alleviate the impact of COVID-19
  • Define shared value targets for all business units (UN SDG)
  • Board stakeholder recognition
  • Forged partnerships with strong institutions that can further our growth ambitions
  • Further strengthened the integration of Sustainability and Risk Management to company strategy by aligning with Corporate Governance and including them as part of the Board Agenda
  • Forged partnership with a leading global Sustainability group
  • Continued commitment to the Ayala Sustainability Blueprint

Risk Management

At the apex of the risk intelligent enterprise is risk governance—the unifying touchstone and guide to the organization’s risk management efforts. It seeks not to discourage appropriate risk-taking, but to embed relevant and effective risk management procedures into all of an enterprise’s business pursuits.

Designed to encourage integrated thinking, Ayala’s risk management framework is based on Deloitte’s concept of the Risk Intelligent Enterprise. This framework supports the broader principles of ISO 31000 risk management standard, such as integration, structured and comprehensive, inclusive, and human and culture factors. We aim to be risk intelligent by aligning people, processes, tools, technologies and governance into an integrated risk management system tied to corporate strategy, then prioritizing and allocating scarce resources to the highest return opportunities.

By adopting the practices of a risk intelligent enterprise, we have a clearer vision of risks and opportunities, therefore, we integrate the following characteristics into our strategy planning:

  • Pursuing opportunities that risk presents while protecting existing assets
  • Creating a strategic philosophy while maintaining operational discipline
  • Increasing senior executives’ confidence in their decisions
  • Providing assurance to the board that the risks are being managed

The Risk Intelligent Enterprise stands on three foundational elements:

ACKNOWLEDGING THE PAST IN MOVING FORWARD
As we transition to an integrated risk management framework, we must first ensure that we have achieved the targets we have set for ourselves in the past. Below is our seven year roadmap and our milestones per phase that ushered us into our next ERM journey

  • Broken down silos and instituted risk management as a collaboration platform
  • Established a holistic risk management approach-risk ownership, risk consolidation that allows an end-to-end risk management, and highlighted interdependency of risks
  • Organized the ERM council of the group
  • Each risk category was tied to the five vision pillars that guided Ayala’s plan of records from 2016 – 2020
  • Developed the group’s common risk language to aid reporting of aggregated risk at the parent level
  • Conducted a risk maturity assessment for benchmarking and for continuous improvement especially in areas of risk culture and risk financing strategy
  • Reviewed risk tolerance levels of the parent company and major business units
  • Formalized risk appetite to aid management in decision-making
  • Started integrating risk management and sustainability to capture the increasing environmental and social concerns in the way we do business

RISK PRIORITIZATION RESULT

Major events of 2020 have profoundly affected various risk factors in all business sectors; from the persistent threat of COVID-19, the eruption of Taal and its looming resurgence, and the increased turbulence of the political climate in the Philippines. In conducting our annual risk assessment, we have identified six (6) major risk categories with the highest likelihood of occurring and would have the most impact to our business objectives: (1) Political and Regulatory, (2) Brand and Reputation, (3) Information and Cyber Security, (4) Portfolio Management, (5) Competition and, (6) Capital Markets.

*Risk score was arrived at by multiplying the overall impact grade by the likelihood score

Click here to learn more about our Risk Management

Focus on climate action through TCFD

Climate change is a defining issue of our time. The United Nations exhorts the world to act with urgency because it touches all aspects of life— environmental, societal, economic, political, regulatory, and technological. Its effect on the global economy is potentially devastating. This effect varies from one country to another. Studies show that impact is higher than the global average in Southeast Asia, one of the most complex seismic zones in the world.

The Philippines, being one of the Southeast Asian nations, is thus highly vulnerable. It stands to lose six percent of its GDP annually by 2100 if no action is taken on climate-related issues, according to a study by the Asian Development Bank. The country is expected to face an increase in extreme weather events, rising sea levels, rising temperatures, and severe rainfall. Moreover, its level of vulnerability is aggravated by its geographical location, which has high exposure to tropical cyclones and earthquakes. The Ayala group recognizes that climate change poses risks across its business units and has long since been an advocate of environmental stewardship, ensuring that its companies and subsidiaries operate responsibly.

Stakeholder Engagement

Ayala embraces a stakeholder-inclusive approach to value creation. We take into consideration the influence our stakeholders have in our business decision-making process and consult, involve, or collaborate with them, articulating the value we seek to deliver through various platforms. By understanding their requirements and meeting their value expectations, we strengthen trust in our organization.

stakeholders

  • Investors and Shareholders
  • Employees
  • Government Agencies and Regulators
  • Business Partners and Affiliates
  • Bank Counterparties and Creditors
  • Suppliers
  • Customers
  • Community
  • Media
  • Industry Associations

How We Engage

Regular Channels of Engagement

  • Membership
  • Special events such as conference, forums
  • Webinar/online
  • Face to face meetings

Special activities or initiatives related to the pandemic (Covid-19)

INITIATIVES

RESULTS

Public Forums
  • Supported our principals in their participation in public forums organized by business clubs and other institutions (e.g. Makati Business Club, DTI)
  • Increased awareness of Ayala's initiatives in supporting our stakeholders throughout the pandemic; furthered discussions in relevant industries (e.g. electronic payments)

Key Concerns Raised

  • Continuing support and long-term relationship on key stakeholders
  • Sponsorship requests go through an evaluation which includes an assessment on the alignment of interest

Our Strategic Response

  • Sponsorship requests go through an evaluation which includes an assessment on the alignment of interest
  • Ayala Corp. provides the speaker or attends the event

How We Engage

Regular Channels of Engagement

  • Media conferences and briefings
  • Corporate website
  • News advisories
  • Fact sheets
  • Social media
  • Emails and phone calls
  • Third party consultants

Programs/Activities

  • Press briefings and conferences
  • Social gatherings
  • Informal media huddles
  • One on one meetings
  • Sponsoring of media-initiated events that are aligned with our principles and advocacies

Special activities or initiatives related to the pandemic (Covid-19)

INITIATIVES

RESULTS

Online webinars and media briefings
  • Online webinars and media briefings
  • Have kept media and public informed about AGC’s initiative and contribution to the country’s fight against the pandemic.

Key Concerns Raised

  • Follow-through questions are typically based on the press releases issued
  • Questions are also asked that are based on the cases of the business units or Ayala Corp.

Our Strategic Response

  • Answered as the questions arise
  • We connect them to the BUs corp. comms. For AC, we direct it to the involved department/s

How We Engage

Regular Channels of Engagement

  • Education and youth leadership programs focused on online delivery of services: training, well-being activities, provision of internet connections, among others.
  • Providing opportunities for the Ayala group to exercise corporate citizenship and help the foundation’s partner schools and communities through Brigada ng Ayala and Project Pananagutan, which provided support for communities affected by the COVID-19 pandemic and the accompanying calamities that struck the country in 2020
  • Providing income opportunities to our communities despite the challenges of the pandemic by maximizing online channels to continuously link them to our customers. Our efforts were directed to keeping our existing customers and expanding our network and partners

Special activities or initiatives related to the pandemic (Covid-19)

INITIATIVES

RESULTS

Tuloy ang Byahe
  • Provided a stop-gap measure through grants-in-aid for jeepney drivers most affected by the Covid-19 crisis in Cebu City. Together with the Ayala Multi-Purpose Cooperative (AMPC), ten (10) drivers were given assistance amounting to ₱250,000
  • Until end of December 2020, combined gross sales of the drivers for 16 weeks of operation is ₱1.862M
BuyANI
  • AFI linked community enterprises and cooperatives as suppliers of the goods. Originally with Macquarie (one time relief to 10,020 families), partnership was expanded to the Ayala Malls, and later on with the Shang Wack Wack Properties, Inc. (relief to the same 2,100 families for 6 times
  • Provided quality food packs for a total of 12,120 families across the country
    Through BuyANI, farm income in Calauan increased and approximately 46 other farm suppliers benefited from the project
Virtual Museum
  • Even though the Ayala Museum and Filipinas Heritage Library were closed for renovation in 2020, the foundation continued to widen cultural appreciation through an omnichannel approach, reaching over 1 million individuals locally and internationally
Project Alalay
  • Provides job and livelihood opportunities to Filipinos affected by the COVID-19 pandemic
  • 6 hired, with 158 active applicants being processed as of Dec 2020
Online Marketing of Products
  • Calauan, El Nido and Iraya Mangyan products shifted heavily on online marketing
  • Calauan income reached ₱12.793M in 2020; generated 35 jobs and 46 more individuals directly benefited
    EL Nido achieved gross sales of ₱3.192M; a total of 378 jobs were generated with 95 jobs active during the pandemic)
    Iraya garnered a total gross sales of ₱ 1,574,580; with a total income distributed of ₱659,652 in 2020
Fundraising Initiatives for Education
  • Provide equipment and materials for online and distance learning (e.g. for students - tablets, laptops, webcams, headsets, prepaid Wifi; for schools - papers, printers, ink, copiers, toners)
  • Raised a total of ₱2.224M benefitting 23,357 students; 638 teachers; and 24 schools
Project Ugnayan
  • With the Philippine Disaster Resilience Foundation, Caritas Manila, ABS-CBN Foundation, Jollibee FoodAID, and the Asian Development Bank, the Ayala Group initially convened 50 private sector leaders who together raised ₱1.7B for Project Ugnayan
  • In all, the project united 270 corporate individual donors who gave grocery vouchers and food assistance for urban poor families in Greater Metro Manila. As of May 27, 2020, it reached over 2.8M families or 14M individuals

Key Concerns Raised

  • In all, the project united 270 corporate individual donors who gave grocery vouchers and food assistance for urban poor families in Greater Metro Manila. As of May 27, 2020, it reached over 2.8M families or 14M individuals
  • Hunger and anxiety experienced by AFI communities
  • Need of youth and program alumni for continuing leadership training, and professional development for teachers

Our Strategic Response

  • Set-up online ordering and marketing for Calauan, El Nido and Mindoro products via MS forms, Lio E-Lengke and AFI FB page
  • The Inang Kalikasan Agriculture Cooperative or IKAC assisted nearby farms and acted as an aggregator of their products. The Lio E-Lengke FB page consolidates the orders for vegetables, meat, other fresh produce, snacks and cooked food. Both IKAC and Lio E-Lengke products were used as sources of fresh produce distributed during AFI’s BuyANI relief initiative in the NCR, Cavite and Palawan.
  • Under the BuyANI, we have also arranged for other organizations in Mindoro, Visayas and Mindanao to include their fresh produce into the relief packs instead of the usual noodles and canned goods.
  • Based on the initial success of the AC supported Urban Container Household Gardening (UCHG) in Cagayan de Oro and given our experience in this pandemic, AFI is starting to develop Food on the Table and Community Farming into full blown program to ensure food security at the household level.
  • AFI organized its online communities of youth and alumni leaders, and teachers to intensify alumni engagement through LeadComElearning. To keep teachers engaged, AFI initiated #UsapangGuro, #PalarongGuro, and #GuroVlogs. AFI also started developing DepEd aligned online modules so that our teachers can continue to earn CPD points

Engagement Strategy

  • Continue to provide customers reliable access to our services during the pandemic and beyond
  • Adopt novel and innovative engagement activities that aid in the transition to the “new normal

Our Strategic Response

  • Improve our internal communications infrastructure to provide uninterrupted customer service
  • Actively practicing recommended safety protocols in all of our business units
  • Increase customer engagement and response in our social media accounts
  • Increase functionality of our digital platforms to include previously face-to-face customer interactions
  • Develop and strengthen our digital platforms for direct customer interface
  • Provide physical services that espouse the rules and principles of safe social distancing

Key Concerns Raised

How each key concern was addressed

Ayala Land
  • Home buying and turnover amid the pandemic
  • Online purchase and virtual turnover of residential units
  • Keeping Ayala Land properties running during the lockdown
  • Deployed 5,000+ APMC workers in 253 properties
  • Implemented strict safety protocol
  • Shopping amid the lockdown
  • Provided the Ayala Malls Neighborhood Assistant (A.N.A)
  • Low merchant business performance due to closure of malls
  • ₱6.2 billion rent condonation for mall merchants
AC Energy
  • Timely bill payments given the strict community quarantine and challenges in operations
  • Offered flexible payment options and temporarily lifted late payment charges during the community quarantine
  • Hampered ability to fulfill minimum energy contract obligations as a result of reduced demand
  • Agreed to suspend availability of contract capacity and waive minimum energy contract obligations. Parties agreed on contract extension corresponding to affected periods of reduced demand
AC Motors
  • Delayed parts availability
  • Proactively executed supply chain optimization and managing customer expectations regarding delays
  • Limited services availability
  • Launch ACM online platforms: The Mechanics, AC Motors online store; activated home service/off-site service for individual/corporate customers
  • Extended Letter of Authority (LOA) turnaround time from insurance companies
  • Driven prompt follow-ups and close monitoring to expedite service turnaround
AC Health AIDE (APPPPS Partners, Inc.)
  • Home service requests for areas outside of Metro Manila
  • Onboarded additional doctors to cater to other regions - services are already available in CALABARZON
  • Increase in demand for Home Service COVID Tests were in high demand
  • Partnered with healthcare workers and laboratories to provide access to home COVID swab testing
  • Fear of physical consultation with healthcare practitioners
  • Addition of e-consultation features the mobile application
AC Health Generika Drugstore (Actimed Inc.)
  • Need for alternative access to medicines and other health products
  • Offered medicine call & pick-up/delivery service in July 2020
  • Hampered ability to access consultation with doctors
  • Introduced Libreng Tele-Konsulta so that customers can remotely consult Generika’s partner doctors
  • Declining foot traffic impacted profitability of franchisees
  • Partnered with GCash to leverage on its growing number of users and piloted its own e-commerce platform
  • Disruption of franchisees’ supply chain
  • Initiated a forecasting program to effectively capture the demands of the stores and timely availability of the products
AC Health Healthway
  • Seizing the opportunity to increase brand awareness as a healthcare service
  • Active promotion and engagement in social media communities
  • Provide services in-line with the “new normal”
  • Introduced Park and Test, Triage and Home services
  • Increase the range of products offered to cater to arising markets
  • PExpanded HMO, Specialist and Lab Packages offered
  • Improve convenience and accessibility
  • Practiced recommended clinic safety protocols
MWC
  • Financial distress caused by lockdowns hamper timely bill payments
  • Provided flexible payment solutions and temporary suspension of utility disconnection
  • Increase in concern over employee-customer exposure risks
  • Launched one-stop customer portal for bill inquiry, payments, and more through My Manila Water App (MMWA)
AC Infra
  • LRMC
    Train delays due to train faults
  • Use of technology to optimize operations (GOAL Systems and Automated Train Operations Management System) and ensure operational KPIs are achieved

    MCX recalibrated its equipment and revisited processes to facilitate a more efficient traffic management scheme
  • AF Payments Inc.
    Need for contactless fare payments
  • Developed fare collection hardware and software that can capture cash, beep™, and QR transactions
iPeople
  • Students/parents apprehension and concerns on IPO schools’ shift to remote/online delivery of classes due to the COVID pandemic
  • Surveys, consultation and dialogue with students and parents; issuance of bulletins, revised academic policies to ensure that student will pass and/ or achieve the required outcomes without sacrificing school academic standards
  • Health and Safety in Schools Campuses
  • Meetings, issuance of health and safety protocols and bulletins (with IPO standards based on current/latest IATF, CHED and DOH issuances) and consultation with HEI/ School associations/ groups (COCOPEA and PACU), LGUs and IATF

How We Engage

Regular Channels of Engagement

  • Re-training activities
  • Email Communication
  • Mobile (messages, calls)
  • App (messaging and file sharing)
  • Instead of appreciation lunch, we provided them with grocery baskets for Christmas (since protocol does not allow mass gatherings like parties)

Programs/Activities

  • Press briefings and conferences
  • Social gatherings
  • Informal media huddles
  • One on one meetings
  • Sponsoring of media-initiated events that are aligned with our principles and advocacies

Special activities or initiatives related to the pandemic (Covid-19)

INITIATIVES

RESULTS

Transportation of Frontline Healthcare Workers
  • Provided transport following protocols and safety procedures
  • They were able to go to and from work comfortably and without worrying about transportation
Continuing Salaries and Wages
  • Our outsourced personnel continued to receive their wages during the lockdown period
  • They were appreciative that they are still receiving wages despite the lockdown
Re-entry kits
  • We distributed re-entry kits (consists of Vit C, Reusable face masks, Face shield, and alcohol) for their use
  • They are prepared and protected in the workplace and are following the safety protocols

Key Concerns Raised

  • Transportation in and out of the workplace
  • COVID protocols
  • Transportation of Frontline Healthcare Workers

Our Strategic Response

  • Work scheduling for those who have access public transportation and/or bicycles and motorcycles
  • Daily health monitoring was done and PPEs were also provided to meet minimum health standards in the workplace.
  • Provided for Rapid Tests prior to accessing the workplace and for those who are symptomatic they were tested via RT-PCR

How We Engage

Regular Channels of Engagement

  • Meetings and video conference calls
  • Economic briefings and client appreciation events
  • Roadshow presentations
  • Formal correspondence and email

Programs/Activities

  • The company communicates regularly with creditors on financing requirements, market and credit updates especially during the loan management cycle.
  • The company organizes conference calls to provide updates and guidance for creditors and investors.
  • Creditors are invited to attend company forums and given access to quarterly and annual earnings releases and analyst briefings.
  • The company invites creditors to share financing alternatives, and outlook on the economy and financial markets; attendees include the finance group of Ayala Corporation, Ayala business units, and subsidiaries.

Special activities or initiatives related to the pandemic (Covid-19)

INITIATIVES

RESULTS

Business Continuity Protocols
  • Engaged with bank counterparties to ensure seamless cash management; implementation of electronic payments, and e-signatures
  • The company serviced all payment requirements with high level of efficiency; and accessed its credit lines during the pandemic

Key Concerns Raised

  • Ayala Corporation’s financing plans
  • Ayala as an issuer is viewed as a proxy to Philippine sovereign credit

Our Strategic Response

  • The Company communicated that its issuances are opportunistic in nature. Access to attractive bank financing remained as one of the priorities, and capital markets issuance is for consideration given high level of market liquidity
  • The Company maintained its strong credit reputation, reduced its borrowing costs, and high engagement with creditors during the COVID-19 pandemic

HOW WE ENGAGE

Regular Channels of Engagement

  • Dialogues
  • Meetings (Board and Executive Committee level)
  • Partnerships
  • Due Diligence
  • Business organizations and/or clubs (Makati Business Club, MAP)

Programs/Activities

  • Bespoke Ayala group corporate access days
  • Calendar of non-deal roadshows
  • Calendar of investor conferences
  • Bespoke Ayala group IR summit
  • Company analyst coverage
  • Share buy-back program

Special activities or initiatives related to the pandemic (Covid-19)

INITIATIVES

RESULTS

Supporting Business Partners and the Broader Ecosystem
  • Continued to support strategic partners such as Yoma and Mitsubishi by exchanging best practices and assisting our partners during the pandemic
  • Supported various group-wide initiatives for the broader ecosystem of partners, vendors, and suppliers
  • Ayala continues to be a partner of choice despite challenging times. Increased engagement and greater inclusion and support for MSMEs in our ecosystem
Public-Private Sector Discussions
  • Supported our management and principals in key dialogues between public and private sector representatives (e.g. IATF, Tast Force T3)
  • Thought leadership amidst uncertainty given the pandemic; promoted greater and more frequent collaboration between the public and private sectors

Key Concerns Raised

  • Management team (i.e. succession plans, transitions, diversity, compensation) Governance
  • Financial performance (i.e. COVID-19 impact on earnings, balance sheet strength) Business Outlook and Risk
  • Network and Relationship (International) Growth Opportunities

Our Strategic Response

  • Transparency and timeliness of disclosures and reporting; set appropriate risk management processes and strong governance processes
  • Transparency in reporting financial performance; championed adaptability in plans and processes to respond to the changing environment, while keeping an eye on avenues for long term growth
  • Active and constant engagement with business partners and affiliates through various channels

How We Engage

Regular Channels of Engagement

  • Attendance in policy dialogues, consultations and meetings, and in legislative hearings
  • Submission of regular reportorial requirements and other official correspondence
  • Briefings, forums and conferences (mostly online)
  • Annual audits
  • Formal proceedings
  • Membership in committees organized by the Government
  • Coordination with local government organizations, i.e., League of Cities of the Philippines and League of Municipalities of the Philippines
  • Face-to-face meetings

Key Concerns Raised

  • Continuous compliance with laws and regulations, and putting mechanisms in place to ensure compliance with new laws and regulations
  • Contributing to policy directions on areas of national interest (e.g., government response to the pandemic, economic recovery, public-private sector collaboration)
  • Contributing inputs to proposed measures/reforms on: Tax, Water, Labor, Education, Health, among othersEnsuring protection of personal data and the rights of data subjects
  • Ensuring protection of personal data and the rights of data subjects

Our Strategic Response

  • Continuous dialogue with national government, regulatory agencies, and various organizations
  • Updating of company policies and rules to keep abreast with the changing policies and regulations, align the procedures and reporting, and publish the same in the company website, as needed
  • Submission of inputs/comments to government policies through various organizations/associations
  • Participation in policy dialogues and consultations
  • Submission of inputs/position paper to proposed measures
  • Reporting of data breach to the National Privacy Commission and notification to affected data subjects
  • Annual training of the company officers and employees (mandatory for both old and new employees)
  • Continuous legal gap assessment

How We Engage

Regular Channels of Engagement

  • 1-on-1 meetings/teleconferences
  • Email correspondences
  • Quarterly results briefings
  • PSE/PDEX disclosures
  • Company website
  • Integrated Report
  • Investor Conferences
  • Deal and non-deal roadshows
  • Annual stockholders' meeting
  • Investor perceptions audit

Programs/Activities

  • Bespoke Ayala group corporate access days
  • Calendar of non-deal roadshows
  • Calendar of investor conferences
  • Bespoke Ayala group IR summit
  • Company analyst coverage
  • Share buy-back program

Special activities or initiatives related to the pandemic (Covid-19)

INITIATIVES

RESULTS

Proactive stakeholder engagement especially at the height of the lockdown
  • Senior management across the group proactively addressed investors on a regular basis since the start of the lockdown to apprise investors and analysts of the impact, how the group is pivoting, and perspectives on a near-term outlook
  • The level of transparency and accessibility contributed to share price recovery, evidenced by the outperformance of Ayala versus index and peers
Utilization of online platforms to ensure stakeholder engagement
  • Ayala’s Investor Relations group shifted all stakeholder engagements to online channels to ensure proper and regular information dissemination to analysts, investors, and other stakeholders despite the lockdown
  • Ensured accessibility of management by conducting regular meetings with investors and analysts and participated in several investor conferences and non-deal roadshows hosted by sell side
  • Conducted the Annual Stockholders’ Meeting and published the annual Integrated Report within the deadline prescribed by regulators despite being at the height of the lockdown

Key Concerns Raised

  • Impact of COVID-19
  • Regulatory environment

Our Strategic Response

  • Continuous and consistent communication of the various initiatives of the Ayala group to manage the crisis, including emphasis on prioritization of the physical and financial health of employees, support to SME partners and the broader communities we operate, as well as the group’s focus on financial sustainability, proactive monitoring of economic indicators and consumer behavior, and highlighting the developments across each business unit.
  • Proactive and closer collaboration with government in addressing the pandemic through various initiatives such as the deployment of emergency packages to the most vulnerable communities, active participation in Project T3, which aimed to improve the testing capacity of the Philippines at the onset of the pandemic and is now focused on the implementation of a national vaccination program.
  • Forthcoming entry of Trident Water as a strategic partner in Manila Water, which would spread out any regulatory risks in the business given the former’s solid experience in managing risks of such nature

How We Engage

Regular Channels of Engagement

  • Email correspondences
  • Team meetings
  • One-on-One discussions between staff and line manager
  • Focus group discussion
  • Employee surveys

Engagement Strategy

Remote Communication

  • Set-up digital infrastructure for remote work
  • Restructured task management to accommodate work-from-home scheme
  • Migrated team building activities to online platforms

Professional development

  • Migration of classroom programs to Virtual Training Sessions
  • Annual performance appraisal to identify improvement opportunities
  • Email Communication

Holistic growth

  • Hybrid/Flexible work arrangements
  • Online Engagement activities
  • Regular health assessments
  • Voluntary in-person office reporting

Compensation and Benefits

  • Virtual townhall meetings
  • Online fund transfers in place of physical payslips
  • Ready access to RT-PCR for covid-affected employees and contingent workers

Key Concerns Raised

  • Access to immediate cash during the pandemic
  • Access to immediate medical assistance for COVID-affected employees and contingent workers during the pandemic

Our Strategic Response

  • We advanced the payment of the mid-year bonus at the start of the lockdown to provide financial security to the employees. Total Rewards initiated the improvement of the Salary Loans facility where the maximum terms of the loans were extended.
  • AC-HR created a COVID-19 Task Force composed of Total Rewards, Employee Engagement, Occupational Safety and Health, and the Ayala Clinic to assist employees and contingent workers affected by COVID-19. Emphasis was also given to Mental Health with the availability of the resident psychologist for online consultations every 2nd and 4th Friday of the month.