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Introduction
This company has a rich background that stretches all the way from Spanish era.
The company has a history that can be said in times with the Philippine History from
the Spanish Occupation all the way to the 21
st
century. It is amazing that the
company has evolved and has kept up with the current times and is one of the
magnates. Unlike its peers in the early century; where a lot has already faded in the
background or has already been dissolve. This family corporation owned a group of
diversified companies comprising from the most basic necessity such as power
generation, to the luxury industries such as resorts and hotel chains.

It is interesting to have an understanding and knowledge how this company has
adapted to the recent times and is reached one of the top 10 most riches company
in the country. The challenges faced, solutions provided, adaptations, methods
provided, opportunities that came their way for such success. This are the times
that would come into mind What did these people do to reach such heights and
how is the continuity of such companies be possible where everybody else fails
after a more than a century of business. The decisions made to be able to stay
ahead of the pack and maintain leadership. What would be the next phase of their
empire.

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Currently the family patriarch is having the value of $3 billion net worth.
Surprisingly, they have such large organization that they also have some outreach
program or foundation to provide assiatnce to the less fortunate countrymen.

As a student who is deeply interested in history and its effects on modern times,
this company is truly worth looking into. Also It is a wonder that what we thought as
a budding company is already part of our nations history in its silent ways and
pivotal for the nations economical stability and necessary for the common mans
mundane lives. This company is silent yet is widely respected in business world.
Considering the vast influence of this familys company in our daily lives, It is quite
astounding that we ordinary citizens are clueless on their contributions and work.
Why Aboitiz a person might ask for the topic of my research. Its because of the
following:

History :
Aboitiz & Company, Inc. is the private holding company in the Philippines of
the Aboitiz Family. It traces its roots to the late 1800s starting out as a hemp trading
and general merchandise company in Ormoc, Leyte, central Philippines.
The family corporation traces its roots to a Spaniard mariner from Basque, Spain
named Paulino Aboitiz. Soon after Paulino Aboitiz married Emilia Yrastoza y
Torres, daughter of a Basque shipping merchant from Guipzcoa, Spain and a
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Spanish mestiza from Ormoc, Leyte, he traded in abaca fiber or hemp. Paulino
Aboitiz also operated a general merchandise business with Angel Moraza, his
brother-in-law and husband to his wifes sister, Guadalupe Yrastoza, who was
based in Baybay.
When the Spanish Government in Manila fell in 1900, Paulino Aboitiz moved his
family, wife and his ten children, to Cebu. There, Paulino Aboitiz created a business
partnership with Jose Muertegui, an Abaca dealer based in Palompon, and named
their business Muertegui y Aboitiz. Their business thrived and soon after, they had
the need to buy the ship, Picket in 1907 to transport their abaca products.
Businesses combining shipping and abaca were common at that time.

The companys success and growth in hemp trading opened opportunities to
enter the transport business. It made good business sense to buy a ship to
transport their own goods across the islands. In 1907, the company bought its first
vessel, the Picket. Thus began the Aboitiz transport business. Ramon, Paulinos
second son assumed his position at the firm at the age of 22 and the business
prospered further. Together with his elder brother, Guillermo, Ramon established
another merchandising business named G. y R. Aboitiz to cover areas unreached
by Muertegui y Aboitiz. In 1916, the Aboitizes bought Muerteguis share for
PhP95,000 and the Muertegui y Aboitiz partnership ended.
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In 1918, Ramon bought passenger ship Tubig from Smith, Bell and Co. The
family then formed a new partnership called Viude e Hijos de P. Aboitiz that
operated on passenger shipping. Ramon petitioned to the Commission on Public
Utilities for their passenger ship to operate the route between the Cebu and Leyte
ports of Baybay, Inopacan, Hilongos, Bato and Hindang.
In 1919, Ramon, his wife Dolores and son Eduardo left for Spain and sold his
share to his brothers Guillermo and Vidal. He believed that he has left the business
in good condition for his mother and siblings to live by.
On February 4, 1920, the Bureau of Commerce approved the corporation
founded by Guillermo Aboitiz and a Portuguese businessman named Arnaldo F.
Silva called Aboitiz y Compania Incorporada that capitalized at 1.25 million and
PhP500,000 paid-up capital. Cousins Manuel Moraza and Joaquin Yrastoza bought
300 and 50 shares from the corporation, respectively, thereby joining the
corporation while Paulino and Luis bought 100 shares each.
A few months after, the business was in peril. Ramon Aboitiz had to come
back to the Philippines in September 1920 after his 14-month stay in Spain. He had
found out that corporation owed PhP2 million to the bank and others. Ramon had
an iron grip on the corporations reputation by refusing to declare bankruptcy.
Instead, he had arranged an PhP800,000 loan from Philippine National Bank (PNB)
manager Jose Martinez and borrowed money from businessmen, Gotiaco
Hermanos and Joaquin Castro. He had also convinced Macleod and Smith Bell to
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advance funds to the company in exchange for a first choice of any abaca
shipment. While having financial difficulties, Ramon nevertheless continued to
venture into profit-making businesses by acquiring Cebu Ice and Cold Stores Corp.
The hemp trade continued to flourish and in 1920, Aboitiz & Company was
formally incorporated. By then, it had become one of the leading Cebu-based ship
owners with 11 vessels. It also had a thriving commercial and trading business
offering services of cold storage, sold ice, fruits, meat and other refrigerated and
frozen goods.
Ramon was able to pay off the loan 20 years later and their business caught
up afterwards as demand for abaca hemp and copra grew.

In 1930, the company ventured into power generation and distribution, and
invention the company expand its power generation and distribution business and
enter other business ventures, among them, industrial gases, banking and finance,
insurance brokerage, food, coconut oil milling, construction, real estate
development, oleo chemicals, overseas shipping, crewing and shipbuilding.
WWII
When the Japanese invaded Cebu on April 10, 1942, they did not falter in
conducting their business. However, a huge blow struck them when the bombings
hit their knitting factory in Manila, their power plants in Mindanao, a portion of their
shipyard in Mactan Island, hardware store and ice plant in mainland Cebu.
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Through diversifying their businesses, the family corporation survived the
devastations brought by the war.
The Aboitizess knitting factory and liquor factory continued to bring in profit
throughout the years. At the same time, Ramon and his brothers rebuilt their
enterprises with what was left of their company assets.

Post World War II
With the onset of the American occupation in the Philippines, the US Navy sealed a
contract with the Aboitizes through their companys Cebu Shipyard and Engineering
Works. It allowed the US Navy exclusive use of the shipyard for two years.
From this point, the family corporation is venturing into another shipping company,
started manufacturing oxygen and started reviving their power plants in Cotabato,
Mindanao named Cotabato Light and Power Co. and bought a franchise of Davao
Light and Power Co.
Today, together with joint ventures and alliances with domestic and foreign
partners, Aboitiz focuses on six major areas, namely: power, banking, food, land
development, construction and shipbuilding. Over 60 operating companies with
27,000 team members now make up the Aboitiz Group of Companies.

The publicly-listed holding company of the Aboitiz family is Aboitiz Equity
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Ventures, which in turn has shareholdings in a number of other listed and privately
held companies (see Aboitiz Equity Ventures portion in About Us). After Ramons
management of the corporation, Ramons son, Eduardo, took over before handing it
to Ramons brother, Luis, and finally to, Eduardos son, Jon Ramon, who is
currently the Chief Executive Officer and President of the Aboitiz & Co. 1990s

After 74 years as a private, family-owned business, Aboitiz formed AEV and
subsequently listed it on the Philippine Stock Exchange in 1994. Aboitiz & Co. put
into the Company's basket, the best and most profitable businesses it had with the
view to expanding and growing the Aboitiz' businesses. This included the power
generation and distribution businesses of Aboitiz & Co. Under Jon Ramons
leadership of the Aboitiz & Co., the company has went public in 1994 through
Aboitiz Equity Ventures (AEV), a holding management company or business in
power distribution, financial and insurance services, food and industrial production.
AEV became the publicly listed holding and investment management company. The
thrust of the company is to work towards its business development in banking and
power.

Converting AEV into a Publicly Listed Company (PLC) was a transformation
since, for the first time, the Aboitiz Group not only gained non-family shareholders,
but also local and foreign shareholders. This big step required further
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professionalization of the Aboitiz Group as new disciplines and demands for
transparency, corporate governance and accountability and a more focused
business strategy also evolved. Today, we continue to follow the focused business
strategy and course we have set. And we continue to adapt to the changing
requirements for corporate governance practices and principles expected of a PLC.
The new management also understood the benefits of technology that it has
partnered with Bayantrade, a procurement exchange company and is partnered
with Ayala Corporation, Benpres Corporation, JG Summit, Philippine Long Distance
Telephone Company and United Laboratories. Through this, Aboitiz Equity
Ventures has used information technology to expand its business opportunities and
increase productivity of its employees.
Aboitiz & Co. has expanded into industrial and commercial real estate
development, banking, power distribution and generation, freight forwarding and
food-related business.
AEV's market capitalization of Php 15 billion in 1996 increased to a market
capitalization of Php 292.4 billion in 2012.




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Nature of Business:
Aboitiz Equity Ventures, Inc. is a Philippines-based company primarily engaged in
power distribution and generation. The Company through its various subsidiaries
and Affiliates can be grouped into five main categories: power distribution, power
generation and retail electricity supply, financial services, food manufacturing, real
estate and portfolio investments. The Company operates in five segments: power
segment, which is engaged in power generation and sale of electricity; food
manufacturing segment, which is engaged in the production of flour and feeds and
swine breeding; the financial services segment, which is engaged in banking
operations; and the parent company and others, which include the operations of the
Company, air transport services, ship and crew management services, and real
property business of the Company.
Aboitiz Equity Ventures (AEV) listed in the Philippine Stock Exchange (PSE) in
1994 as the public-held holding company of the Aboitiz Family. Since its IPO, AEV
has been recognized by various local and international surveys and publications as
among the Philippines best managed companies. AEV has likewise received
numerous awards for its corporate governance practices.



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Company profile
Aboitiz Equity Ventures, Inc. was incorporated in September 11, 1989 as Cebu Pan
Asian Holdings, Inc. AEV is the holding company of the Aboitiz Group. To further
increase funding, the Aboitiz Company listed AEV in 1994. To date, the companys
shares are traded under the stock symbol AEV. AEV has business interests in the
following:
power distribution and generation Aboitiz Power Corporation
financial services Union Bank and Cebu City Savings Bank
food manufacturing Pilmico Foods Corporation
transportation Aboitiz Transport System, Accuria, Inc.
portfolio investments - Cebu Praedia Development Corporation, AEV Aviation,
Inc.
Subsidiaries
Power Distribution

Aboitiz Power Corporation is the power distribution and generation arm of AEV. It
owns 76.40% of the outstanding capital stock of AboitizPowe. Since its
incorporation in 1998, it has become of the leaders in the Philippine power industry.
Including the second and third largest in the country in terms of power sales. These
utilities are recognized for setting the standards in innovation, efficiency and
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customer service. AboitizPower, which debuted as a public company in 2007. The
power generation holdings include renewable, such as geothermal and
hydroelectric, and non-renewable plants. AboitizPower's portfolio of plants are
diversified in fuel source and located throughout the country, enabling it to cater to
the diverse needs of every power consumer. It is pioneer in offering Cleanergy, its
brand of clean and renewable power.

Financial services

AEVs financial services group is composed of Union Bank of the Philippines
(Unionbank) and City Savings Bank. Aboitiz Equity Ventures is the largest
shareholder of UnionBank, a publicly-listed universal bank also recognized as
among Asias best companies in banking and finance. UnionBank consistently
ranks as among the top banks in key performance ratios in profitability, liquidity,
solvency and efficiency. It is a pioneer in the application of information technology
in banking services. Aboitiz Equity Ventures also owns City Savings Bank, a
leading thrift bank based in central Philippines and currently expanding into Luzon

Unionbank was incorporated in 1968 as a savings bank. By 1982, the bank has
been granted a commercial banking license, and in 1992, became a universal bank.
Since incorporated, Unionbank has acquired International Corporate Bank in 1994,
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and the International Exchange Bank in 2006. As of December 2010, AEV
beneficially owns 40.91 percent of UnionBank.

City Savings Bank was incorporated in 1965 originally known as Cebu Savings and
Loan Association. It was the first of its kind to be organized under the Savings and
Loan Association Act, otherwise known as Republic Act 3779. AEV currently holds
60 percent equity in City Savings Bank.

Food Manufacturing

Pilmico is one of the countrys largest manufacturers of flour and is ranked
among the top three domestic flour producers in terms of sales. It was incorporated
in 1958 and started out as a JV between the Aboitiz Group Lu Do Group, the
Soriano Group and the Pillsbury Group of the United States. The three groups
eventually sold off their holdings to AEV.
In Food, Pilmico Foods Corporation is one of the largest flour mill
companies in the Philippines. It is a top-3 player in the flour market and a leader in
operating efficiency. Pilmico also manufactures yeast and other bakery products,
and through its wholly-owned subsidiary, Pilmico Animal Nutrition Corporation,
operates a feed milling and swine growing operation

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Other portfolio investments
The Aboitiz Jebsen Group is a joint venture with the Jebsen Group of Norway,
primarily engaged in ship management, manning and crew management, and bulk
transport businesses.

AEV Aviation Inc. holds AEVs aviation assets, including the corporate aircraft and
accompanying support facilities. Incorporated on October 9, 1990, it was originally
known as Spin Realty Corporation, and was reorganized in late 1998 when the
newly acquired AEV corporate aircraft was placed under its holdings.
Cebu Praedia Development Corporation was incorporated in 1997 as a holding
company for AEVs real estate assets. It is engaged in leasing of properties located
in the cities of Makati and Cebu.

Awards and citations
AEV has received numerous awards and citations. Among them:
Asian CSR Award in 2010 Asian Institute of Management
Best Management Company, 2010 Asia Money
Asias Best Company, 2009 Finance Asia
Best Project Finance for Magat Hydro Power, 2007 The Asset Asian Awards
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Recent business development
On December 1, 2010, AEV together and Aboitiz & Company, Inc. (ACO) entered
into a Securities Purchase Agreement with Negros Navigation Company, Inc.
(NENACO) for the purchase by NENACO of the entire equity stake of AEV and
ACO in AEVs transport subsidiary Aboitiz Transport System (ATSC) Corporation
(ATS). The sale included all the logistics and shipping businesses of ATS except
the ship management, manning and crew management, and bulk transport
businesses of ATSs joint venture companies with the Jebsen Group of Norway.
Current Company Holdings:
ShipBuildings
The Shipbuilding has been one of the core businesses of the Ablitiz Group. By
1920, it had become one of the leading Cebu-based ship owners with 11 vessels.
To date, its partner includes Tsuneishi Heavy Industries (Cebu), Inc., a world-class
shipbuilder located inside the companys industrial park in Cebu, central
Philippines.

Tsuneishi Heavy Industries (Cebu) Inc. is a joint venture between Aboitiz &
Company and Japanese shipbuilder the Tsuneishi Group. Tsuneishi (Cebu) builds
bulk carriers of up to 100,000 dead weight tons, car and truck carriers and soon,
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container ships.

In Construction, the Aboitiz Construction Group is a major player in the
country that specializes in civil, industrial facilities installation and steel fabrication
works. It is also a leading contractor for roads and bridges. Under Metaphil, It is a
major player in the country that specializes in civil, industrial facilities installation
and steel fabrication works. It is also a leading contractor for roads and bridges.
Metaphil is currently an ISO 9001:2000 company.
Real Estate

Aboitiz Land is the real estate arm of the Aboitiz Group. Aboitiz Land focuses on the
development of residential subdivisions, housing and the management of industrial
parks including Mactan Economic Zone 2, and West Cebu Industrial Park. It has
developed the trust and confidence in the market for quality and reliability.
Other projects include:
Residential
Ajoya
Kishanta
Molave Highlands
The Persimmon
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Pristina North
Office and Retail
iMez
The Persimmon Plus
Pueblo Verde
Leisure
Aboitiz Foodball Cup
Aboitiz Sports Field

Leisure Resorts

Aboitiz & Company is also part owner of the A. Soriano Corporation
subsidiary, Seven Seas Resort and Leisure, which in turn operates and promotes
the the world-famous Amanpulo luxury beach resort in Pamilican Island, Palawan





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Corporate Structure
As of End - 2012

Ownership
POWER

%
Aboitiz Power Corporation

76

Power Generation


Aboitiz Renewables, Inc.

100

AP Renewables, Inc.

100

Cleanergy, Inc.

100

Hydro Electric Development
Corporation
99

Cordillera Hydro Corporation

100

Hedcor Benguet, Inc.

100

Hedcor Bokod, Inc.

100

Hedcor Bukidnon, Inc.

100

Hedcor Sabangan, Inc.

100

Hedcor Sibulan, Inc.

100

Hedcor Tamugan, Inc.

100

Hedcor Tudaya, Inc.

100

Hedcor, Inc.

100

Luzon Hydro Corporation

100
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Manila-Oslo Renewable
Enterprise, Inc.
83

SN Aboitiz Power-
Magat, Inc.
60

SN Aboitiz Power-
Benguet, Inc.
60

Neptune Hydro
Corporation
(Formerly: SN
Aboitiz Pangasinan,
Inc.)
60

Therma Power, Inc.

100

Therma Central Visayas, Inc.

100

Therma Luzon, Inc.

100

Therma Marine, Inc.

100

Therma Mobile, Inc.

100

Therma Power Visayas, Inc.

100

Therma South, Inc.

100

Therma Southern Mindanao,
Inc.
100

Therma Subic, Inc.

100
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Therma Visayas, Inc.
(Formerly: Vesper Industrial and
Development Corporation)
100

Teraqua, Inc.

60

Redondo Peninsula Energy,
Inc.
25

Abovant Holdings, Inc.

60

Cebu Energy
Development
Corporation
44

STEAG State Power, Inc.

34

Cebu Private Power Corporation

60

East Asia Utilities Corporation

50

Southern Philippines Power
Corporation
20

Western Mindanao Power
Corporation
20

Power Distribution


Visayan Electric Company, Inc.

55

Davao Light & Power Company, Inc.

99

Cotabato Light & Power Company

99
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Cotabato Ice Plant, Inc.

100

Subic EnerZone Corporation

99

Mactan Enerzone Corporation

100

Balamban Enerzone Corporation

100

San Fernando Electric Light & Power
Company, Inc.
44

Retail Electricity Services


Aboitiz Energy Solutions, Inc.

100

Adventenergy, Inc.

100

Prism Energy, Inc.

60

Banking


Union Bank of the Philippines

45

Food


Pilmico Foods Corporation

100

Pilmico Animal Nutrition
Corporation
100

Filagri Inc

100

Land


Aboitiz Land, Inc.

100

Propriedad Del Norte, Inc

100

Cebu Industrial Park

100
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Development Corp.

Cebu Praedia Devt. Corp.

100

Integrated Maritime Services


Aboitiz Jebsen Company, Inc.
(Formerly: Aboitiz Jebsen Bulk
Transport Corporation)
62

Aboitiz Jebsen Manpower Solutions,
Inc.
62

Jebsens Maritime, Inc.

62

Others


AEV Aviation, Inc.

51

ASEAGAS Corporation

100

.

POWER AboitizPower Corporation

Generation Assets:
Renewable: Hydro, Geothermal
Non-Renewable: Coal-fired, Thermal
Distribution Assets: Davao Light and Power Company ,
Cotabato Light and Power Company , Visayan Electric
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Company , San Fernando Electric Light and Power
Company , Subic Enerzone Corporation , Mactan
Enerzone Corporation , Balamban Enerzone Corporation

Services: Aboitiz Energy Solutions, Inc. , AdventEnergy,
Inc. ,Prism Energy, Inc.
BANKING UnionBank of the Philippines , City Savings Bank
FOOD Pilmico Foods Corporation , Pilmico Animal Nutrition
REAL ESTATE
AboitizLand , Cebu Industrial Park Developers, Inc. ,
Mactan Export Zone 2
CONSTRUCTIO
N
Aboitiz Construction Group, Inc. , Metaphil Division
OTHER
INVESTMENTS
Aboitiz Jebsen Bulk Transport Corporation, Tsuneishi
Heavy Industries (Cebu), Inc. , Seven Seas Resorts &
Leisure, Inc.
SOCIAL Aboitiz Foundation, Inc. , Ramon Aboitiz Foundation, Inc.
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Business Organizational Structure
DIRECTORS
Jon Ramon Aboitiz Erramon I. Aboitiz Roberto E. Aboitiz
Enrique M. Aboitiz, Jr. Justo A. Ortiz Antonio R. Moraza
Raphael P.M. Lotilla Jose C. Vitug Stephen CuUnjieng
Independent Director Independent Director Independent Director
OFFICERS
Jon Ramon Aboitiz Erramon I. Aboitiz Stephen G. Paradies
Chairman of the Board President & Chief Executive
Officer
Senior Vice
President/Chief Financial
Officer/Corporate
Information Officer
Mikel A. Aboitiz Enrique M.Aboitiz, Jr. Juan Antonio E. Bernad
Senior Vice
President/Chief
Information Officer
Senior Vice President Senior Vice President
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Xavier Jose Aboitiz Gabriel T. Maalac M. Jasmine S. Oporto
Senior Vice President -
Chief Human Resources
Officer
Senior Vice-President - Group
Treasurer
First Vice-President -
Chief Legal
Officer/Corporate
Secretary/Compliance
Officer
Susan V. Valdez Luis Miguel O. Aboitiz Horacio C. Elicano
First Vice President -
Chief Reputation
Officer/Chief Risk
Management Officer
First Vice President First Vice President -
Chief Technology Officer
Patrick B. Reyes Romn V. Azanza III Melinda R. Bathan
First Vice President -Chief
Strategy Officer
First Vice President -
Business Development
First Vice President -
Controller
Narcisa S. Lim Joseph Trillana T. Gonzales Susan S. Policarpio
First Vice President -
Human Resources and
Quality
Vice President - Legal and
Corporate Services
Vice President -
Government Relations
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Robin Patrick R.
Sarmiento
Vivien Vicente-Limjoco
Assistant Vice President -
Strategy and Corporate
Finance
Assistant Vice President -
Strategy and Corporate
Finance

Ronaldo S. Ramos Annacel A. Natividad
Assistant Vice President -
Business Risk
Management
Assistant Vice President -
Financial Risk Management

Dave Michael V.
Valeriano
Julie Ann T. Diongzon Aylmerita C. Pealoza
Assistant Vice President -
Investor Relations
Assistant Vice President -
Treasury
Assistant Vice President -
Treasury
Geraldine Polanco -
Onganon
Ma. Kristina V. Rivera Noemi Sebastian
Assistant Vice President -
Human Resources and
Quality (seconded to the
Assistant Vice President -
Human Resources and
Quality (seconded to Aboitiz
Assistant Vice President -
Human
Resources and Quality
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Food Group) Power Corporation -
Generation Group)
Benedict James B.
Duran
Marilou P. Plando Maria Lourdes Y. Tanate
Assistant Vice President -
Human
Resources and Quality
(Seconded to City Savings
Bank, Inc.)
Assistant Vice President -
Business Administrator for
Legal and Corporate Services
Assistant Vice President -
Audit
Andy G. Torrato Joseph Y. Tugonon Catherine R. Atay
Assistant Vice President -
Plant Security
Assistant Vice President - Tax
Management Services for
Legal and Corporate Services
Assistant Vice President -
Corporate Secretarial and
Compliance Services for
Legal and Corporate
Services/Assistant
Corporate Secretary
DIRECTORS
Jon Ramon Aboitiz Roberto E. Aboitiz Luis M. Aboitiz,
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Jr.
Chairman Vice Chairman Director
Antonio R. Moraza Enrique M. Aboitiz, Jr. Mikel A. Aboitiz
Director Director Director
Erramon I. Aboitiz
Director
OFFICERS
Jon Ramon Aboitiz Roberto E. Aboitiz Erramon I.
Aboitiz
Chairman of the Board Vice Chairman President and
Chief Executive
Officer
Stephen G. Paradies Mikel A. Aboitiz Xavier J. Aboitiz
Senior Vice President - Finance/
Treasurer
Senior Vice President -
Strategy
Senior Vice
President - Human
Resources

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Enrique M. Aboitiz, Jr. Antonio R. Moraza Luis Miguel O.
Aboitiz
Senior Vice President Senior Vice President First Vice-
President
Catherine R. Atay Mailene M. De la Torre
Corporate Secretary Assistant Corporate
Secretary

BOARD of ADVISERS
Enrique M. Aboitiz, Jr. Jaime Jose Y. Aboitiz Sabin M. Aboitiz
Chairman Emeritus Member Member
Andoni F. Aboitiz Luis Miguel O. Aboitiz Xavier J. Aboitiz
Member Member Member
Stephen G. Paradies Iker M. Aboitiz
Member Member
STRATEGY COMMITTEE
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Jon R. Aboitiz Erramon I. Aboitiz Roberto E.
Aboitiz
Chairman Member Member
Enrique M. Aboitiz, Jr. Mikel A. Aboitiz
Member Ex-Officio Member
SUCCESSION and COMPENSATION COMMITTEE
Jon. R.Aboitiz Erramon I. Aboitiz Enrique M.
Aboitiz
Chairman Member Member
Roberto E. Aboitiz
Member




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Findings:
Honor, Reputation, Trust and Integrity

The Legacy of Core Values
Aboitiz, hold Trust very dearly. They realize the importance of Trust from our
customers and that they value our products and services; that they are not cheated,
nor are they short changed in any way. We value Trust from our management and
employees, that they are respected and treated fairly and appreciated in their
contributions to the growth of the Company. We acknowledge the importance of
Trust that is reposed in us by our shareholders and investors, that their investments
are being handled with integrity, for their benefit, and not for those who run the
institution. Lastly, we value Trust from the community at large, that we are an asset
to the community by being a responsible member that shares and adds value to all.
We believe that Reputation is the Company's most important asset. It is the
sum of values that our stakeholders attribute to us, based on their perception and
interpretation of the image the Company communicates over time. We believe that
corporate reputation has to be earned; and once earned protected and managed,
and integrated into the Company's business strategy. Trust, Transparency,
Expertise, Commitment and Empathy are four factors that uphold our Reputation.
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Even at a young corporate age, Trust, Reputation, Governance and Corporate
Social Responsibility have since been important to the Aboitiz organization. Aboitiz
is what it is today because the family, shareholders, our professional team leaders
and team members in our various organizations and business units (BUs) have
always upheld strong values that we all believe in and practice, such as Honor,
Trust, Loyalty, Fairness and helping those who are less fortunate. From these
strong core values, we have also adopted the complimentary values of adherence
to quality, innovation, and service excellence.
A culture of Hard work, Sacrifice, Trustworthiness, Constant Improvement,
Customer focus, Quality and Social Commitment - this set of characteristics makes
us different and unique. This is what our Reputation is all about since the times
when Don Ramon Aboitiz laid the foundational legacy of core values and
characteristics for family and non-family team members to hold on to.
Corporate Social Responsibility
Corporate Social Responsibility is being practiced by the company long before
it became a corporate buzzword. We believe that CSR is a very integral part of how
we operate our businesses and an integral part of our overall governance and
philosophy of being responsible members of our society by sharing and being a
neighbour of choice wherever our companies operate.
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An integral part of the Aboitiz Corporate Philosophy is its Corporate Social
Responsibility institutionalized through the Aboitiz Foundation. Aboitiz
companies contribute yearly a percentage of their profits to the Foundation. The
Foundations areas of focus are on education, enterprise development, primary
health- and child-care, and environmental conservation & protection.

In its over a century of doing business, the Aboitiz name has built a reputation
that stands for quality products and services. Today, more than ever, all Aboitiz
companies move as one in pursuing a strategic direction of focusing on their core
competencies, people, customers and systems. We see Corporate Social
Responsibility (CSR) as a way for businesses enterprises like the Company, to
manage their business processes to produce an overall impact to society. As a
corporate citizen, it is a our Company's continuing commitment to behave eithically
and contribute to the economic development of the country, while improving the
quality of life of its workforce, their families, our customers, our local communities,
our government and society at large. Bottom line being, that Corporate Social
Responsibility is about business giving back to society and acting in an ethical and
transparent manner in all its dealings with all stakeholders in society.
In 1965 or 47 years ago, Don Ramon Aboitiz gave a big part of his personal
wealth to establish the Ramon Aboitiz Foundation, Inc. It is one of the largest
shareholders of the Company. Our Company was one of the founding members of
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the Philippines Business for Social Progress when it was established in 1979 and
today is still active in both the Board of Trustees and Regional Executive
Committees. As the Aboitiz Group grew, CSR began to take on a much broader
and more meaningful perspective; it was no longer merely about doing philanthropic
acts but also reaching out to partners within our different communities. It has since
evolved into a more organized, structured, and professionalised commitment from a
dedicated team and from the Aboitiz workforce.
Thus, in 1988, the Aboitiz Group established the Aboitiz Foundation as the
social development arm of the Aboitiz corporate group. CSR teams from business
units nationwide were formed and now work together with the Aboitiz Foundation in
areas where our companies are located. These BUs are mandated to allocate a
percentage of their profits every year to fund the Foundation's projects in their
respective areas of operations and be the neighbour or choice to their host
communities.
The focus areas of our group CSR are primarily education, enterprise
development, health and environment. Over the last five (5) years, we have
allocated 1.5 billion for our various CSR projects. For 2012 alone, 390 million
was earmarked for projects. In addition, Aboitiz Foundation has collaborated and
partnered with other organizations and foundations when there was alignment of
goals or when a greater need of society required more interdependent CSR
strategies were required to assist society
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To fund growth opportunities, Aboitiz & Company listed Aboitiz Equity
Ventures in 1994 on the Philippine Stock Exchange as the holding company for its
power, banking, food and transport businesses. Aboitiz Equity Ventures mission
is To create long-term value for all its stakeholders. Since it went public in
1994, it has been recognized in different international surveys as among the
Philippines best companies.

Aboitiz Equity Ventures investments in Power are coursed through publicly-
listed.
.
An integral part of the Aboitiz Corporate Philosophy is its Corporate Social
Responsibility institutionalized through the Aboitiz Foundation. Aboitiz
companies contribute yearly a percentage of their profits to the Foundation. The
Foundations areas of focus are on education, enterprise development, primary
health- and child-care, and environmental conservation & protection.

Companies are challenged throughout the world to incorporate more
Sustainability practices into the business model. The Aboitiz Group is committed to
this effort and believes that in order to thrive, it must consider the triple bottom line
of people-planet-profit into everything it does.

In its over a century of doing business, the Aboitiz name has built a reputation
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that stands for quality products and services. Today, more than ever, all Aboitiz
companies move as one in pursuing a strategic direction of focusing on their core
competencies, people, customers and systems.
Aboitiz Foundation also addresses the shortage of adequate infrastructure facilities
for basic social services by building water systems and health centers, day-care
and cooperative training centers.
Water is a basic necessity not readily available to everyone. Hence, the Foundation
has made the building of water systems the flagship project in the area of primary
health and childcare. So far, the Foundation has donated 30 water systems that
benefit 13,150 households in different marginalized communities in Cebu, Davao
and Iligan. Most of these water systems are level 3, which means water is piped
directly into individual households, making it easily accessible and convenient.
In order to improve the medical and dental services provided in certain
communities, the Foundation donates a starter set with basic medical and dental
equipment that poorer communities cannot obtain on their own.
Aboitiz companies, through the Aboitiz Foundation, also conduct medical, dental
and optical missions to make health services available to their host communities.
Aboitiz Power Renewables, Inc., Luzon Hydro Corporation, Subic Enerzone and
Hedcor regularly conduct medical missions in their areas of operations, namely in
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37

Maco, Nasipit, Davao, Subic, Ilocos, and Benguet.

The Foundation hopes to eventually see more children learning in classrooms than
roaming the streets. By holding non-formal education sessions under the Street
Education Program, the Foundation and the Children of Cebu Foundation aim for
street children to be motivated to go to school. The Foundation's goal is to bring at
least 40% of these children to get a formal education the following school year. Two
hundred fifty street children in six urban centers in Metro Cebu are supported
annually in this program. Aside from these non-formal education, the children were
also given bags and education supplies to use in their classes.

Some years ago, the Aboitiz Foundation became more involved in environmental
concerns in light of the global urgency to protect Mother Earth. As we see the need
to proactively respond to this call, the environment is now a new program
component in our CSR.

Through this and with the help of Aboitiz Equity Ventures' in-house sustainability
team, we will be able to tackle sustainability issues and take a step further
in environment conservation efforts.
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Every year, the Aboitiz Group conducts a simultaneous tree planting all over the
country. Over 2,000 Aboitiz employees coming from about 20 Aboitiz companies
commit to spare their weekend and lend a hand for mother nature. Last July 21
alone, a total of 2.68 million seedlings were planted together by employees across
the group. This is in support of the Aboitiz Passion for Reforest and Agroforest to
Keep (APARK) initiative that seeks to plant 3 million trees by 2015.
Aboitiz Foundation has been conceptualizing new projects and started taking small
steps to see it come to life. An example of this is a training workshop for organic,
natural and biodynamic farming systems, which will be open to its existing partner
cooperatives for a start.

With close to three million trees in its inventory, a newly launched Cleanergy Park,
and a strengthened sustainability agenda, the Aboitiz Group is gearing up its
sustainability program for 2014, as it levels up its sustainability reporting with the
Global Reporting Initiative (GRI), one of the worlds generally accepted standards.
It is currently at Level B self-declared, while the target is to accomplish the GRI-
checked Level B Sustainability Report. This entails reporting fully on a minimum of
20 performance indicators set by GRI with at least one on each area, namely
economic, environment, human rights, labor, society, and product responsibility.
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Last year, the group developed a sustainability policy, charter, and framework as
well as focus areas. The intent is to establish measurable objectives, set achievable
targets, and track them year on year.
Through its BetterWorld campaign, Aboitizs sustainability program aims to
increase awareness among stakeholders about its existing initiatives supporting the
triple bottom line of people, planet, and profit.
We will pursue an exciting future with the mindset that we can do well by doing
good, said Aboitiz Equity Ventures chief executive officer Erramon Aboitiz.
This complements the companys passion for better ways, as it makes the right
long-term decisions that balance the interests of the triple bottom line.
The Aboitiz Group, through its corporate social development arm Aboitiz
Foundation, exemplifies the best of people initiative as it focuses on education as
its flagship program.
Last year, the foundation also raised over P200 million in relief funds to help the
survivors of Super Typhoon Yolanda, the most powerful tropical cyclone that hit the
Philippines.
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Some 3,000 team members from across 24 business units also committed personal
time in 2013 for the Aboitiz Group-wide tree-planting program, APARK, which aims
to plant three million trees by 2015.
To date, a total of 2.9 million trees have been planted, and Aboitiz expects to meet
its target ahead of schedule.
Aboitiz said it is also committed to look into new businesses that are linked to its
core competencies, are scalable, and with strong recurring profits and cash flow.
These include the expansion of its investment portfolio, as it builds the countrys
first liquid bio-methane fuel plant through its joint venture, Aseagas.
TO PREVENT its employees from leaving for better-paying jobs abroad, the Aboitiz
Group continues to touch the emotional side of its workers.
If we keep telling ourselves that we cant compete with the pay abroad, were lost.
We have to make decisions to attract, retain and optimize our people, said Txabi
Aboitiz, vice president on quality and people development of Aboitiz and Co. Inc.
He said that human resource managers should ask why their people are making
decisions to leave for overseas jobs and recommended that the body, heart, mind
and spirit of employees should be addressed to help pump up the company.
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Several managers at Aboitiz and Co. sat in a panel during the second day of the
Third Aboitiz-organized Future Leaders Summit at the Waterfront Cebu City Hotel
and Casino to share how good bosses, work challenges, training and fun made
them stay with the company for years.
Among them is Judd Salas who has been with Aboitiz for more than 12 years, He is
presently corporate communications manager of the Aboitiz Transport System
(ATS).
Salas said that some of the ATS seafarers and information technology
professionals are among those who joined the the movement of labor to other
countries that is part of globalization.
Aboitizgives you opportunities to think world-class and be the best. If you value
learning, there is a place for you here to make a difference in the world, he added.
Meanwhile, Aboitiz Equity Ventures executive vice president and chief operating
officer Erramon Aboitiz attributed the companys success to a carefully laid out
strategic map (that is) skillfully executed by (its) great team of professionals.
As proof, he cited the bottom line contribution of the Aboitiz power business, which
grew to 61 percent last year from 41 percent in 1995. He also mentioned the 32-
percent increase of City Savings Banks net income in 2007, among others.
Aboitiz has evolved into a group totally focused on its core businesses growing its
assets to P61 billion from P21 billion at the start of the decade, he added.
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Conclusion:
Business & Family Values
A strong sense of business acumen lived through the legacy of the Aboitizes.
Ramon Aboitizs refusal to declare bankruptcy of Aboitiz y Compania Incorporada in
the 1920s proved that business astuteness and esteem could overcome such
difficulties. He wrote to Silva, the Aboitiz y Compania Incorparada president and
general manager at that time, "The biggest fortune that I have is my word and my
reputation. Money can be lost and can be recovered, but once reputation is lost and
ones word is worthless, one is surely finished."
Taking calculated risks allowed the Aboitiz group to evolve into a
conglomerate rather than to remain as a mere trading company was key through its
survival through World War II and maintain its longevity up to the present. When
Ramon Aboitiz acquired Cebu Ice & Cold Stores Corp., the company invested on
buying new equipment. However, after upgrading the companys equipment,
electric refrigerators at that time are coming into fashion. A market study was
inevitable and Ramon Aboitiz found out that only 20% of his clientele are able to
afford the refrigerators so he pursued investing on Cebu Ice & Cold Stores Corp.
This attitude of taking calculated risks combined with a keen sense of timing is
also an essential business practice among the Aboitizes. Through the years, the
company was able to find opportunities in businesses and selling their goods at the
right time. Ramon Aboitizs timing is near perfect that his particular businesses are
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43

acquired sell at their peak. He sold goods with potential and sold them successfully
and however bleak the business economy is, his goods still sold and brought profit
to the company.
At the advent of the new century and the pervasiveness of technology, Jon
Ramon carries the same attitudes and leads Aboitiz Equity Ventures to invest on
the internet and e-commerce. "Every company has to have an Internet strategy
because future business is completely intertwined into the Internet and e-
commerce," notes Jon Ramon.
Jon Ramon is aware that closeness within his Aboitiz family is not enough to
succeed in business. "We realized early that its not an easy thing to stay together.
We have to work at it," he explains. It was necessary for them to create a family
council as a venue for regular meetings and discuss issues. Decisions emanating
from their family council are decisions voted by the majority.
After a decision is made, everybody abides by it, he says. Even family
members are not exempted from company rules. "Rules must be equally applied to
all," he adds. At present, 17 family members are working within the company.
Many people think were all-family, but were only 17 working family members, Jon
Ramon says.
Aboitizs family business has been passed on for four generations and they
have maintained a smooth transition from one generation to the next. Jon Ramons
father, Eduardo, made a ruling that family members employed in the company who
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44

are over 60 years of age must step down from position but will still serve as elderly
advisers to the younger generations.
Aboitiz family members do not become part of the Aboitiz & Co. merely
because of genealogy. They have to prove their worth. Starting from childhood, the
Aboitiz children should learn about the different aspects of their businesses. Taking
school breaks as an avenue to work for the company and learn the Aboitiz way of
doing business.
It is also important to the Aboitizes to maintain close ties with the Chinese
community and Aboitiz scions studied Mandarin in Beijing and Taipei to ensure this
relationship continues. Even Jon Ramon was branded useless by his grandfather
for not being able to speak in Chinese.
Business & Family Values
A strong sense of business acumen lived through the legacy of the Aboitizes.
Ramon Aboitizs refusal to declare bankruptcy of Aboitiz y Compania Incorporada in
the 1920s proved that business astuteness and esteem could overcome such
difficulties. He wrote to Silva, the Aboitiz y Compania Incorparada president and
general manager at that time, "The biggest fortune that I have is my word and my
reputation. Money can be lost and can be recovered, but once reputation is lost and
ones word is worthless, one is surely finished."
Taking calculated risks allowed the Aboitiz group to evolve into a
conglomerate rather than to remain as a mere trading company was key through its
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45

survival through World War II and maintain its longevity up to the present. When
Ramon Aboitiz acquired Cebu Ice & Cold Stores Corp., the company invested on
buying new equipment. However, after upgrading the companys equipment,
electric refrigerators at that time are coming into fashion. A market study was
inevitable and Ramon Aboitiz found out that only 20% of his clientele are able to
afford the refrigerators so he pursued investing on Cebu Ice & Cold Stores Corp.
This attitude of taking calculated risks combined with a keen sense of timing is
also an essential business practice among the Aboitizes. Through the years, the
company was able to find opportunities in businesses and selling their goods at the
right time. Ramon Aboitizs timing is near perfect that his particular businesses are
acquired sell at their peak. He sold goods with potential and sold them successfully
and however bleak the business economy is, his goods still sold and brought profit
to the company.
At the advent of the new century and the pervasiveness of technology, Jon
Ramon carries the same attitudes and leads Aboitiz Equity Ventures to invest on
the internet and e-commerce. "Every company has to have an Internet strategy
because future business is completely intertwined into the Internet and e-
commerce," notes Jon Ramon.
Jon Ramon is aware that closeness within his Aboitiz family is not enough to
succeed in business. "We realized early that its not an easy thing to stay together.
We have to work at it," he explains. It was necessary for them to create a family
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46

council as a venue for regular meetings and discuss issues. Decisions emanating
from their family council are decisions voted by the majority.
After a decision is made, everybody abides by it, he says. Even family
members are not exempted from company rules. "Rules must be equally applied to
all," he adds. At present, 17 family members are working within the company.
Many people think were all-family, but were only 17 working family members, Jon
Ramon says.
Aboitizs family business has been passed on for four generations and they
have maintained a smooth transition from one generation to the next. Jon Ramons
father, Eduardo, made a ruling that family members employed in the company who
are over 60 years of age must step down from position but will still serve as elderly
advisers to the younger generations.
Aboitiz family members do not become part of the Aboitiz & Co. merely
because of genealogy. They have to prove their worth. Starting from childhood, the
Aboitiz children should learn about the different aspects of their businesses. Taking
school breaks as an avenue to work for the company and learn the Aboitiz way of
doing business.
It is also important to the Aboitizes to maintain close ties with the Chinese
community and Aboitiz scions studied Mandarin in Beijing and Taipei to ensure this
relationship continues. Even Jon Ramon was branded useless by his grandfather
for not being able to speak in Chinese.
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Vision and Mission:
AEV is the publicly listed investment vehicle of the Aboitiz Group (or the Group).
The Companys Mission and Vision are as follows:
Investments focuses on businesses that provide basic goods and services to meet
the demands of a growing economy. We will develop and rely on our core
competencies, financial strength, and reputation to achieve our goals. We are
committed to continuously maximize shareholder value and seek to become the
premier investment company in the Philippines.
Our corporate journey is not complete without telling you the story of our roots,
our past, and the core values that we have inherited and aim to preserve. It is a
past that is inextricably linked to a gentleman's tale of "Palabra de Honor" or "Word
of Honor".
Our corporate journey began in the 1920s with the founding of Aboitiz & Co. It
was during this period in history when the Aboitiz families consolidated and
expanded their existing businesses into a corporate entity. Whilst full of hope and
expectations, that period of corporate inception coincided with the deflation of World
War I's economic exuberance. Prices of abaca and other agricultural commodities
dropped dramatically. But, during this period of great difficulties was forged a deep
commitment to corporate governance.
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Aboitiz & Co. was on the brink of bankruptcy with big losses and a large debt.
However, the founder, Don Ramon Aboitiz, his brothers, cousins and employees
resisted calls from well meaning friends to walk away from the debts. Instead,
guided by the principles of "Palabra de honor", Don Ramon, as he is fondly
remembered, borrowed money from banks and friends for the purpose of reviving
the business with a commitment to pay back the debts.
In a letter to his sibling, he wrote: "The biggest fortune I have is my word and
reputation. Money can be lost and can be recovered but once your name and
reputation is lost, one's word is worthless and one is truly finished". Without that
determination to survive business hardships, with hard work and a commitment to
honor their word and reputation, the Aboitiz Group would not be around today.
One of the greatest lessons thus learned from that singular moment in our
corporate past has been woven into AEV's business fabric: That Honor, Reputation,
Trust and Integrity, are of paramount importance in running both our businesses
and in managing our personal lives. The practice of governance and ethics in our
business and our expanding Aboitiz family was crucial in the past and still remains
so for the challenges our companies will inevitably face in the future.
Honor, Reputation, Trust and Integrity

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The Legacy of Core Values
Aboitiz, hold Trust very dearly. They realize the importance of Trust from our
customers and that they value our products and services; that they are not cheated,
nor are they short changed in any way. We value Trust from our management and
employees, that they are respected and treated fairly and appreciated in their
contributions to the growth of the Company. We acknowledge the importance of
Trust that is reposed in us by our shareholders and investors, that their investments
are being handled with integrity, for their benefit, and not for those who run the
institution. Lastly, we value Trust from the community at large, that we are an asset
to the community by being a responsible member that shares and adds value to all.
We believe that Reputation is the Company's most important asset. It is the
sum of values that our stakeholders attribute to us, based on their perception and
interpretation of the image the Company communicates over time. We believe that
corporate reputation has to be earned; and once earned protected and managed,
and integrated into the Company's business strategy. Trust, Transparency,
Expertise, Commitment and Empathy are four factors that uphold our Reputation.
Even at a young corporate age, Trust, Reputation, Governance and Corporate
Social Responsibility have since been important to the Aboitiz organization. Aboitiz
is what it is today because the family, shareholders, our professional team leaders
and team members in our various organizations and business units (BUs) have
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50

always upheld strong values that we all believe in and practice, such as Honor,
Trust, Loyalty, Fairness and helping those who are less fortunate. From these
strong core values, we have also adopted the complimentary values of adherence
to quality, innovation, and service excellence.
A culture of Hard work, Sacrifice, Trustworthiness, Constant Improvement,
Customer focus, Quality and Social Commitment - this set of characteristics makes
us different and unique. This is what our Reputation is all about since the times
when Don Ramon Aboitiz laid the foundational legacy of core values and
characteristics for family and non-family team members to hold on to.

Innovation & Growth.

The company is committed to deliver bestinclass products and services to all
clients, developing deep client insight, selecting the right people and employing the
most innovative yet appropriate technology. The focus on quality and the customer
is the root and result of our passion for better ways.

Looking for APeople.

Aboitiz are strongly motivated individuals who like to get things done and who live
out our culture to deliver the brand promise every time, anytime. Apeople, the most
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qualified and driven to excel in everything with the company. Bold and Dynamic,
They have good training ground and developing individuals to able to work
cohesively as a unit and yet drive these same individuals to lead. Service oriented
company that instills service to meet client needs. Apeople take responsible action
and display personal discipline, integrity and pride in being part of a conglomerate
with a trusted name in business.



In pursuit of a more focused strategy, the company agreed to share a common
set of core values that represent us as a Group. The collective output of all the
different values we have espoused across the Group throughout the years, fused
together to become the Aboitiz Group Core Values, recognized and embrace by all
as their own.
Issues and Concern:
Lower selling prices of electricity and revaluation of dollar liabilities dampened
Aboitiz Equity Ventures Inc.s profit results in the second quarter.
In a regulatory filing, AEV said its consolidated net income declined 15 percent to
P5.1 billion in the April to June period compared with a year ago.
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For the three-month period, the revaluation of consolidated dollar-denominated
liabilities and placements resulted to a non-recurring loss of P1.1 billion versus last
years non-recurring gain of P294 million, the Aboitiz holding firm said.
However, core income, which excludes non-recurring items, rose six percent to
P6.2 billion in the second quarter.
The power business accounted for 74 percent of total earnings, followed by
banking, food and property at 19 percent, six percent and one percent, respectively.
Even with the drop in second quarter earnings AEV managed to post P11.9 billion
in consolidated net income in the first half, up one percent from P11.8 billion a year
ago.
First semester core net income grew 3.5 percent to P11.7 billion. The core earnings
stripped off the non-recurring gain of P217 million from the revaluation of dollar-
denominated liabilities and placements and P1.27-billion earnings from the sale of
City Savings Bank Inc. to AEV subsidiary Union Bank of the Philippines in January.
Our first semester performance figures are within our expectations. As a
conglomerate, our earnings are diversified, which gives it more stability, said AEV
president and CEO Erramon I. Aboitiz.
In terms of specific units, Aboitiz Power Corp.s income contribution sank 22
percent to P7.3 billion from P9.4 billion in the first half last year.
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When adjusted for non-recurring items, the power strategic business unit recorded
a six-percent year-on-year decrease in its earnings share to P8.4 billion from P8.9
billion, AEV said.
This as average price for its power output dropped 11 percent in the first half due to
weaker selling price in the Wholesale Electricity Spot Market and in bilateral
contracts.
AboitizPowers net generation rose five percent to 5,360 gigawatt-hours (gwh) in
the first half from 5,096 gwh a year ago due to the increase in demand brought
about by the hotter weather during the summer months, AEV said.
The power distribution groups earnings contribution jumped 15 percent to P1.6
billion from P1.4 billion as total attributable electricity sales increased two percent to
1,997 gwh from 1,949 gwh, AEV said.
The banking and food units, for their part, posted higher earnings in the first six
months of the year.
The drop in earnings of the power business was made up by the stellar
performances of the banking and food businesses, Aboitiz said.
The banking strategic business units income contribution surged 42 percent to
P2.8 billion from P2 billion last year, driven by increases in both net interest income
and other income, AEV said.
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Net interest income climbed 11 percent to P4.1 billion primarily due to the
expansion in the average level of earning assets.
UnionBanks resources climbed 22 percent to P340.8 billion as of end-June on the
by back of the 37-percent growth in total deposits to P259.5 billion.
Pilmico Foods Corp. enjoyed a 22-percent uptick in its first semester income
contribution to P630.7 million from P522.2 million.
The movement was primarily due to the strong performance of the farms division,
which registered a net income of P114.6 million versus last years net loss of close
to P7 million as a result of the improved average selling price of market hogs for the
period in review, AEV said.
But the flour divisions income contribution eased six percent to P229.9 million as a
result of softer prices. The feeds divisions earnings inched up one percent to
P285.9 million, weighed down by higher input costs.
For the real estate business, Aboitiz Land Inc. posted a consolidated net income
contribution of P111.1 million during the first half of 2013 as revenues hit P612.5
million.
Our investment in AboitizLand has already begun to contribute to our earnings and
will further diversify our earnings base, Aboitiz said. In November, AEV folded
AboitizLand into the group.
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Moving forward, the company is gearing up for further expansion, particularly in the
infrastructure sector.
We remain excited about the opportunities that the Public-Private-Partnership
(PPP) projects of the government will bring to us, Aboitiz said.
Our cash flows and balance sheet continue to be strong, which will give us the
capability of funding our expansion plans, he added.

Shares in the Philippines' Aboitiz Equity Ventures (AEV) jumped as much as 5.6%
to a record high on Tuesday, with investors expecting it to benefit as power
shortages push up electricity prices.
AEV, a large shareholder of energy developer Aboitiz Power, was the most actively
traded stock by mid-morning as it rose to a peak of P14.25.
At 0250 GMT, the stock was at P13.75, up 1.9% and outperforming a 0.4% fall in
the broader market and other stocks in the sector.
AEV, which has risen 52.8% so far in 2010 in a market that is up just 0.4%,
accounted for 26% of market turnover by the mid-session on Tuesday.
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"It stands to be a major beneficiary of the spike in demand for power and with the
recent surge in the wholesale retail prices of energy," said Jojo Gonzales, research
head at Philippine Equity Partners.
"Its energy rivals either do not have as much merchant capacity or have all of their
output contracted out already. Investors see that the Aboitiz group could benefit
from this the most."
Dry weather due to the El Nino weather pattern has hit hydro-electricity production
in the Southeast Asian nation, leading to power outages even in the capital Manila.
Manila Electric Co. (Meralco), the Philippines' largest power distributor, last week
warned of a significant hike in charges for March due to higher costs for the power
supplied by generation companies.
Shares in Energy Development Corp., which contracts the bulk of its power to
Meralco, were steady on Tuesday. First Gen Corp., the country's biggest privately
owned power producer, was down 2.4% at mid-trade.
Last week, the government declared a state of calamity in the southern island of
Mindanao, where there have been blackouts of up to eight hours per day.
Recommendation:
The Aboitiz Family Governance
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Much is said about family owned companies or companies with controlling
shareholders - that these companies may lack the commitment to corporate
governance principles, or the discipline to work towards a long term horizon. This is
certainly not the case with the Company and the Aboitiz Group. Our track record in
the country clearly shows this.
After more than 100 years of doing business, the Aboitiz Group has grown
from a closely held family enterprise of less than 10 employees to a professionally
run business group focused in seven industries with about a 30,000 strong
workforce. This includes thirteen 4th generation Aboitiz family members and about
eight 5th generation family members working for the Aboitiz group in a professional
capacity. The unity and harmony of the Aboitiz family has been an important factor
to the Aboitiz Group's success and continuity. Open Communication, Trust and
good Family Governance are the cornerstones of the relationships of the Aboitiz
Family. The Aboitiz family has its own Family Constitution to guide family members
in their actions and to set rules family members must follow. This Family
Constitution, together with the legacy core values and philosophies, are especially
relevant to the handling of their corporate interests vis a vis the stakeholders of the
Company. In addition, the Aboitiz family also has a Family Council that is separate
from the business corporation and is intended to promote family unity and
involvement in different activities whether social or otherwise. Staying together and
building a legacy for the Aboitiz name and reputation is important.
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Aboitiz & Co. Inc. owns about 49.54% of Aboitiz Equity Ventures, Inc. (AEV)
as of March 31, 2013. AEV in turn currently owns about 76.83% of AboitizPower.
As of fiscal year 2012, AboitizPower accounted for 78% of the total net earnings
contributions of AEV's business segments.
Total Quality Management
In 1992, AEV launched its internal cultural evolution through the adoption of
the Total Quality Management (TQM) movement within the organization. To keep
up with the fast changing times, the Aboitiz Group needed to experience a re-birth,
a change in mindset to make the big transitional step to professionalize the
organization. Believing that only organizations that value and practice the quality
process, professionalism and good governance would grow and survive in the long
run, Management embraced TQM as the key ingredient and driving force behind its
business strategy. At that time, globalization and competition in the market place
required companies to step up and adopt a culture of constant improvement,
innovation, and customer focus. Quality in everything we did was crucial to our
continued growth and success. Customer focus and customer satisfaction became
our battle cry.
The Aboitiz Group recently launched the new core corporate values last July 2013
to realigned main components of the Aboitiz Way. The company adopted its new
group-wide corporate values Integrity, Innovation, Teamwork, and Responsibility.
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