I. Company Profile
A. The History of Aboitiz & Co. To say that Aboitiz & Co. is a good example of a successful company would be an understatement, for its history is not just about its successes but of the feats the company had performed to achieve them. Their story is that of how one man started a company that grew into the corporate leviathan, and how his family held it all together. Aboitiz & Co. traces its beginnings to the Spaniard Paulino Aboitiz who hailed from a small town called Lequeitio in northern Spain. In 1870, he together with his wife Emilia Yrastoza and ten children migrated to the Philippines to start a small business in Ormoc, Leyte. Paulino entered into a partnership with an abaca dealer named Jose Meurterui, consequently naming their business Muertegui y Aboitiz. Unbeknownst to them both, this was the humble begins of an empire. Growth in business started the two men thinking of expansion. In 1907 they bought a small ship named “Picket” to facilitate faster transportation of their abaca products to Manila. It was common practice at the time, as ships were still the preferred way to travel. The ship later on became the mother vessel of the soon to be Aboitiz fleet, from which their other businesses would take off. It was during this time that Paulino started grooming his sons to take over the business. His second eldest son, Ramon, gladly assumed the position of partner in the firm in his father stead, managing it together with the help of his elder brother Guillermo. Continued success rained down on the Aboitiz family in the years to follow. So much so that in 1916, the family was able to buy out Muertegui’s share for P95,000 (a small fortune at the time), dissolving Muertegui y Aboitiz partnership. In 1918, Ramon bought the steam boat “Tubig” from Smith, Bell and Co. and started the Aboitiz family into passenger shipping, plying the routes between the ports of Baybay, Inopacan,

Hilongos, Bato and Hindang in the south of the Philippines. The business was doing great. So, in 1919, Ramon sold all his shares in the company and retired to Spain with his wife and son. During this time, his brother Guillermo and Portuguese business man named Arnaldo F. Silva joined to form the corporation called Aboitiz y Compania Incorporada, which was made official on Feb. 4, 1920. Several Aboitiz cousins as well as Aboitiz brothers Paulino and Luis bought a significant number of shares, joining the corporation and thus making it truly a family business. Within a year, however, dark clouds descended over the newly incorporated firm. Due to a series of bad decisions and unfortunate circumstances, the company found itself deep in debt to the tune of P2 million. They were at the brink of bankruptcy and they needed help. In 1921, Ramon Aboitiz goes out of retirement and returns to the Philippines to salvage what he could of the company. He did not want to see what his father had built crumble to the ground. Refusing to declare bankruptcy, he negotiated with the Philippine National Bank for a loan close to P800,000 in order to restructure and rehabilitate the firm. He also made several other loans from friends and wealthy merchants; to Smith Bell in particular, Ramon had to promise a first choice of any abaca shipment in exchange for advancing funds to keep his operations going. This was a triumph in itself, considering that Paulino’s second son had no collateral whatsoever, aside from the goodwill he built up in the past. It would take a total of twenty odd some years for Ramon to pay off all the loans he had made, but clearly he had saved the company. Not only that, the cash injection allowed the company diversify into different fields such as power generation and distribution, sugar production, and hardware retailing. Of course, that was not the end of our story or the trials the Aboitiz family had to face. During the Japanese invasion of the Philippines in World War II, the company tried its best to continue its operations. Before the war had ended however, severe bombing by both the Japanese and Americans saw to the destruction of their factory in Manila, as well as their power plants in Mindanao. Their Cebu operations was considered to have been hardest hit when their shipyard on Mactan Island was partly destroyed along with the hardware store and ice plant in mainland Cebu. Again, the company was left crippled.

The succeeding decades saw the company expand its power generation and distribution business and enter other business ventures. real estate development.000 team members now make up the Aboitiz Group of Companies. construction and shipbuilding. During this time. food. he realized that the immediate postwar period was a time for new opportunities that needed to be seized. Unfazed by the destruction. real estate development. crewing and shipbuilding. and industrial chemicals. Aboitiz focuses on six major areas. food.Ramon’s strategy of diversification was the only thing that kept Aboitiz & Co. . among them. namely: power. Figure 1. coconut oil milling. The Business Structure of Aboitiz & Co. luck also played a major factor for it was during that time that the US Navy contracted the company’s Cebu Shipyard and Engineering Works for its exclusive use for two years. together with joint ventures and alliances with domestic and foreign partners. the company ventured into power generation and distribution. coconut oil milling. banking and finance. land development. Ever the businessman. the Aboitiz family strengthened their competencies of the different areas they held. Over 60 operating companies with 27. afloat. construction. a sugar mill. oleo chemicals. Of course. banking and finance. industrial gases. and invested in a sugar plantation. banking. Today. insurance brokerage. food. Ramon started to build from the ashes. The stability provided by the contract allowed for the other Aboitiz businesses to rebuild and rebuild they did. In 1930. a shipyard and hardware store. They expanded its profitable power generation and distribution business and further delved into ventures such as. overseas shipping.

It is pioneer in offering Cleanergy. efficiency and customer service. such as geothermal and hydroelectric. Aboitiz Equity Ventures also owns City Savings Bank. . food and transport businesses. Pilmico Foods Corporation is one of the largest flour mill companies in the Philippines. including the second and third largest in the country in terms of power sales. The power generation holdings include renewable. operates a feed milling and swine growing operation. Pilmico Animal Nutrition Corporation.B. which debuted as a public company in 2007. a leading thrift bank based in central Philippines and currently expanding into Luzon. Aboitiz Equity Ventures is the largest shareholder of UnionBank. UnionBank consistently ranks as among the top banks in key performance ratios in profitability. It is a pioneer in the application of information technology in banking services. Aboitiz Equity Ventures’ investments in Power are coursed through publicly-listed AboitizPower. which in turn has shareholdings in a number of other listed and privately held companies. These utilities are recognized for setting the standards in innovation. and through its wholly-owned subsidiary. Aboitiz & Company listed Aboitiz Equity Ventures in 1994 on the Philippine Stock Exchange as the holding company for its power. solvency and efficiency. a publicly-listed universal bank also recognized as among Asia’s best companies in banking and finance. Aboitiz Equity Ventures The publicly-listed holding company of the Aboitiz family is Aboitiz Equity Ventures. and non-renewable plants. AboitizPower's portfolio of plants are diversified in fuel source and located throughout the country. To fund growth opportunities. Since it went public in 1994. Pilmico also manufactures yeast and other bakery products. enabling it to cater to the diverse needs of every power consumer. Aboitiz Equity Ventures’mission is “To create long-term value for all its stakeholders”. liquidity. it has been recognized in different international surveys as among the Philippines’ best companies. In Banking. AboitizPower also has investments in a number of utilities located in different parts of the Philippines. banking. its brand of clean and renewable power. It is a top-3 player in the flour market and a leader in operating efficiency. In Food.

Figure 2. The Corporate Structure of Aboitiz Equity Ventures .

Jebsen Maritime Inc. Surigao. and the movement of cargos operating under the brand name "2GO". a passenger and cargo shipping company headquartered in Cebu. Inc. This marked the birth of William. 1949 with the establishment of William Lines. and "Cebu Ferries". General Santos. Batangas. Jebsen Management (BVI) Limited. the company changed its registered corporate name from WG&A to its present one. Tagbilaran. and Aboitiz Shipping Corporation. Jagna. Ormoc. (AEV) acquired the combined holdings of the Chiongbian and Gothong Group. Aboitiz Transport System Aboitiz Transport System (ATSC) Corporation's (ATS) history dates back to May 26. Nasipit. Its principal business units are engaged in the movement of people operating under brand names "SuperFerry".. roll-on roll-off (RoRo) services. which the Securities and Exchange Commission (SEC) approved in February 2004.. Figure 3. Cagayan de Oro. namely. Inc. The Corporate Structure of Aboitiz Transport System . Inc. "SuperCat". and MCC Transport Philippines. Inc. Davao. Gothong Lines.C. Calapan. Manila. Inc. and Zamboanga.. (WG&A). Aboitiz Jebsen Manpower Solutions. namely. Iligan.. 1995. On December 21.. Cotabato.. logistics and supply chain solutions. ATS also provides ship management and manpower solutions worldwide under the Aboitiz-Jebsen group of companies. ATS consolidated its resources and expertise with two other Cebu based companies. Subsequently. The company's extensive presence throughout the country is carried out through its branch operations and agency networks. These are located primarily in Bacolod. Inc. Supercat Fast Ferry Corp. Inc. ATS is an integrated transport solutions provider in the Philippines. Aboitiz Equity Ventures. Cebu. Gothong & Aboitiz. Aboitiz Jebsen Bulk Transport Corp. Dipolog. Inc. In 2002. Zoom In Packages. Carlos A. The company's array of services geared towards cargo movements includes containerization. ATS has eight (8) operating subsidiaries and affiliates. Iloilo. Dumaguete. Aboitiz One. Coron. Ozamis. Puerto Princesa.

The discussion below aims to provide insights as to how the implementation of best practices in different functions ultimately results to significant benefits for the company and its stakeholders. insurance. The other businesses were either sold or closed down such as those involved in industrial gases. A. long-term value for stakeholders. which now the second largest power distribution company in the country. banking. paper. as exemplified by the company’s pioneering in different areas such as: the development of renewable and environment-friendly energy resources like hydropower. it has shown exceptional capability to adapt to change in order to ensure the sustainability of its businesses. However. . BEST MANAGEMENT PRACTICES As the company continues to grow. manufacturing and recopying. Company Profile II. cement. the application of information technology in its banking services and the introduction of containerization in the country. transport. marketing. copra. This focus strategy also enabled the company to continually innovate in its chosen businesses. food preserving.II. all translated into better products and services for the customers which provide the company not only an edge over competitors but more importantly. management has chosen to realign its strategy by analyzing where the company is currently standing and where it should be headed. Such practices enable the company to continually improve by finding and utilizing the best ways of working so as to achieve the business objectives all the while optimizing the use of available resources. Planning The company’s portfolio comprised of several investments in a diverse range of businesses. construction and shipbuilding. This is highlighted by the best practices that the company employs. food. This renewed focus enabled the company to capitalize on its core strengths thereby concentrating only on a number of businesses including that of power. Proceeds of sale were then used to re-invest in power. It has also allowed sufficient flexibility for modernization and adoption of management practices and strict standards of governance that in the end. land.

However. there had to be more professional managers employed. There was also an established separate family council whereby the entire clan including the in-laws can give suggestions related to running the business. there were only 17 members of the family working for the company. Since the company recognizes that its strength lies in teamwork. seven of which belonged to the board of directors of Aboitiz and Company. but rather considers the collective efforts and accountability of everyone in delivering the results. Since there were only few family members involved in the company. Not only does it communicate the time-honored values of integrity. C. There was also the board of advisers that was formed as a way to train the younger senior officers of the company to come up. which is further enhanced by the company’s values of integrity and trust. it represents the passion for continuously finding and improving ways of ultimately creating and delivering value to all stakeholders. the culture instilled amongst its employees is one that neither blames nor credits the efforts of an individual. just as what happened during the Asian crisis. the company does take calculated risks if warranted. Human Resources The company employs a formal process for hiring and selection of employees. However. allowing it to be reasonably shielded from the effects of economic downturns. its financing needs does not rely much on debt. This is essential in establishing a team that is truly united by a common vision. Exams must be passed and requirements for work experience must be met. trust and competence that drive the company’s commitment for sustainable growth. This reinforced the value of fairness among all employees. Also. . the organization structure still remains very lean so as to facilitate an efficient and effective decision-making process. the company implements a conservative management style which is manifested in its financial policies. Starting from the bottom not only hones an employee’s leadership skills and establishes his track record. which is also applied to family members interested in joining the company. D. but also helps him gain the acceptability of his peers as he goes up the ranks. Organizational Structure and Decision-making As of the time of writing of the group’s reference.B. but more importantly. They all have to start from the bottom and work their way up through merit. the Aboitiz brand name has equalled the company’s commitment to quality. E. Financials Overall. Marketing Through the years.

these ventures provide synergized strength that continually drives excellence and growth in their respective fields. Ortiz   Chairman of the Board of Directors Chairman of the Compensation/Remuneration and Nomination Committee   Director of the Board Audit and Corporate Governance Committee Member Sabin M. External Relations The company further enhances its capabilities by forming strong ties and alliances with both domestic and foreign partners. Mr.F.    President and Chief Executive Officer Compensation/Remuneration and Nomination Committee Member Risk Management Committee Member Emily A. Jr. Aboitiz Justo A. respectively. ATSC Board Of Directors Jon Ramon M. Abrera   Independent Director Compensation/Remuneration and Nomination Committee Member Erramon I. The ATSC Board . Aboitiz. Aboitiz Roberto D. Osamu Nakamura and the Jebsen group of Norway. Tiu  Corporate Secretary Figure 4. Together. The business in shipbuilding as well as in the international maritime services came to materialize through the company’s joint venture with a Japanese partner. Sycip    Independent Director Chairman of the Audit and Corporate Governance Committee Risk Management Committee Member Enrique M. Gothong   Director of the Board Audit and Corporate Governance Committee Member   Vice Chairman of the Board of Directors Chairman of Risk Management Committee Washington Z. Helen G. Aboitiz  Director of the Board Atty.

Competence and Dynamism exemplified in Aboitiz Transport Corporation. Integrity. These core values were very much inherited from its founder Paulino Aboitiz and were passed on to the succeeding 4 generations of the Aboitiz family up to Jan Ramon Aboitiz.III. Dynamism In line with its passion to serve and its commitment to competence. These core values have shaped his management style and as CEO. Competence The Aboitiz team is composed of highly skilled and dedicated people that provide peace of mind to their customers. Passion. The workforce is considered as Aboitiz’ most valuable asset and as a commitment to them. in a considered and stable manner. and fairness. Company COMPETENCIES III. Take for example the core values of Integrity. Core Values The Core Values and Beliefs of a company are highly influenced by the principles and philosophies of its founder or owner. ATS is constantly looking to find new ways of delivering value to our customers . he has made sure that his subordinates observe these values as well. Super Cat. Cebu Ferries and the Joint venture AboitizJebsen. They are committed to deliver constant growth. Passion to deliver and perform way above industry standards unifies ATS and it brought about the birth of 2go. The degree of influence is magnified specially in family owned corporations because relationships are not only bounded by profession but by blood as well. Passion Passion ignite ATS’ attitude and drive to constantly challenge industry standards to strengthen their competitive edge. CORE VALUES & Profile A. transparency. Integrity Aboitiz management uphold honesty. continuous training together with employee satisfaction is of paramount importance.

Today. and Cebu Ferries and the movement of cargos operating under the brand name 2GO. in 1907. creating more and more value for all. Its principal business units are engaged in the movement of people operating under the brand names SuperFerry. ATC hold the distinction of being the first shipping company in the Philippines to have received the prestigious International Ship Management (ISM) Code . These statements sets the tune in the whole corporation and clearly states the reason why top executives at Aboitiz work with such Passion and Commitment to excellence. ATS is also guided by the following: ATS Vision Our dreams inspire a passion for better ways to delight those we serve. Through Aboitiz-Jebsen joint venture. ATS' array of services geared towards cargo movements includes containerization. it is the largest inter-island movers of passengers and cargo in the Philippines. Core Competency The Aboitiz name has been synonymous with transport since it purchased its first vessel. maintenance of the ship requirements. ATS Mission ATS is in the business of providing solutions for the movement of people and products. The company also provides ship management and manpower solutions worldwide under the Aboitiz-Jebsen group of companies. True to the vision of the founders. logistics and supply chain solutions. . B. emergency preparedness. The joint venture showcases the merging of the best of the East and West. We will keep on improving our people.a certification of compliance to international standards on safety management. SuperCat. providing integrated maritime services. the Picket. RoRo services. and development plans for shipboard operations.Apart from the above mentioned core values. making it easier for you to deal with us. systems and our network. environmental protection. ATS continue to strive for excellence by setting new standards in the local maritime industry. qualified and well-trained crew. ATS is the only total and integrated transport and logistics solutions provider in the country.

Capitalizing on their areas of expertise. and Aboitiz Shipping Lines. a new era of shipping was begun through Cebu Ferries. Responding to the 21st century thrust of going global. The newest addition to the ATS family is the total supply chain solutions 2GO. It now proudly marks the islands of Visayas and Mindanao with quality service in sailing. tracking & customer support and supply chain solutions. Inc. Inc. ATC through 2GO have focused on four key service areas: delivery and transport. know-how and an integrated menu of services as it provides solutions to customers. The company's multicultural team of top-flight technicians. 2GO leverages on unsurpassed local knowledge from over a hundred years of experience and a passion to consistently deliver cargo and information on time while offering simplified solutions to meet the most complex requirements. ATS introduced Super Ferry and Super Cat. ABOJEB puts forward quality and professionalism on bringing ship management and crew management services to our customers. Cebu Ferries planted the banner and was born with modest beginnings.. three of the biggest shipping lines in the country. engineers and managers is recognized for its EFFICIENCY. 2GO combines flexibility. respond with resounding measures to offer ultimate customer satisfaction and commitment to continued service. In answer to the challenge of the shipping deregulation in the 1990s. These brands have reshaped the rules and practice of sea travel and have been pivotal and strategic to the fast ferry industry in the country. Certified by the American Bureau of Shipping for being ISO 9001:2008 compliant. .The greatest driver of Aboitiz Jebsen’s continued success is human capital. fast craft vessels have made it possible for enterprises and governments to crisscross throughout the region to conclude business deals. RELIABILITY and ENTERPRISE. This is further confirmed by the consistent honor of receiving the Top Performer and Excellence Awards in the past years. open new markets and build long-term partnerships. Gothong Lines. William Lines. With globalization. ATS have created synergies that have enlarged the fast ferry industry to benefit economies of scale and complement travel related products. special services. This development propelled commerce and trade and accelerated tourism and tourism-related activities to new and wider dimensions. Carlos A.

The first was in 2002. Aboitiz Equity Ventures purchased the shares at P3. the families had been engaged in a boardroom battle over control of WG&A. Based on the agreement. 2002 stockholders meeting where representatives of the Gothong and Chiongbian clans tried but failed to remove Enrique Aboitiz Jr. a competitor. This came to a head at the July 12. the Aboitiz group controled over 92 percent of the company. Aboitiz Equity Ventures initially had 31 percent ownership in WG&A. 1995 to form the very successful WG&A. It later became difficult for the three families to manage WG&A. B. . 2002.98 each. The deal was completed on September 25. Company Profile IV. The second change in control came just this year. For months before the consolidation. and Aboitiz Shipping Lines have dominated the shipping industry for many years until the three shipping giants merged in December 21. when Aboitiz bought WG&A. Upon completion of the sale transaction. with the buyout of ATS by Negros Navigation. As relationships between Gothong-Chongbian and Aboitiz had been strained by this event. RESPONDING TO CHANGE A. as company president and CEO.. Two Acquisitions in the Past Decade Over the past ten years. Gothong Lines Inc.IV. AEV will pay half of the purchase amount in cash as of the closing date with the remaining balance payable over five years with interest fixed at 12 percent and a one year grace period on principal. The Birth of Aboitiz Transport System in 2002 William Lines Inc.. the transportation business of the Aboitiz group of companies has experienced two major control changes. the sale of the 61 percent Gothong-Chongbian stake in WG&A to Aboitiz Equity Ventures was regarded as the reasonable solution. Carlos A.

strong cash flows and a leadership position in the industry.) Iligan City (Cebu-Iligan v.Responses to Change Despite the bitter-sweet end of the WG&A ties. each company had the following separate assets in the company: WILLIAM LINES INC.v. low leverage. GOTHONG LINES INC. With a deregulated industry.) OLO Medjugorje (Manila-Dumaguete-Ozamis-Iligan-Cebu v.) OLO Sacred Heart (Manila-Roxas-Palompon-Isabel-Cebu v. As for the constituent companies." Before the acquisition.v. a strong brand name.v. In 2004. Victor Chiongbian. the consolidation was viewed as a win-win situation for the shareholders. CEO of the Chiongbian group said: "We believe that we have divested at a very reasonable price and that we would be able to re-channel our resources in the fast-growing logistics business. the acquisition was considered a very strategic move for Aboitiz Equity Ventures.v. banking and food. Mabuhay 1 (Manila-Cebu and Manila-Iloilo) Mabuhay 2 ((Mnl-Sur-But-Tag-Mnl and Mnl-Tag-CDO) Mabuhay 3 (Mnl-Dav-Dadiangas-Mnl and Mnl-CDO-Ilo-Mnl) Mabuhay 5 [after a few voyages permanent fielding overtaken by merger] Dona Virginia (Manila-Dumaguete-Ozamis-Iligan v.v.) Tacloban City (Manila-Batan-Dumaguit-Dipolog v.v.: OLO Akita (Manila-CDO-Butuan v.v. WG&A can provide AEV with the earnings growth to complement its other investments in power.) Misamis Occidental (Cebu-Ozamis v.) . Very healthy returns and cash flow for the Aboitiz group was highly anticipated. and Manila-Cebu v.) Maynilad (Manila-Zamboanga-Davao) Masbate I (Manila-Masbate-Catbalogan-Tacloban) Zamboanga City (Manila-Puerto Princesa v. improved port facilities in Manila for both freight and passage.v. the Securities and Exchange Commission approved WG&A change of business name to Aboitiz Transport System Corporation. It consolidated Aboitiz’ ownership and management position in a company which is the dominant leader in the shipping industry.) CARLOS A.v.

OLO Lourdes (Manila-Dumaguit-Palompon-Cebu v. and Manila-Iloilo v. and Cebu-Palompon v.v. w/ Boracay (summer) Dumaguit-Roxas v.) OLO Fatima (Nasipit-Cebu v.v. and Nasipit-Jagna v.v. Carmel Dona Cristina Dona Lili .v.v.v. and Iligan-Dumaguete v.) OLO Mt. and CDO-Jagna v.v.) Don Calvino [reserve] ABOITIZ SHIPPING LINES SuperFerry 1 (Manila-Iloilo-GSC-Davao v.v.v.v.) OLO Naju (Cebu-Ozamis v.v.) OLO Rule (CDO-Cebu v. the following changes were made: The following ship names were changed: Mabuhay 1 became SuperFerry10 Mabuhay 2 became SuperFerry 7 Mabuhay 3 became SuperFerry 8 Mabuhay 5 became SuperFerry 9 OLO Akita became SuperFerry 6 Masbate I became OLO Manaoag (in 1998) Misamis Occidental became OLO Montserrat (in 1998) The following ships were passed to Cebu Ferries: OLO Lourdes OLO Rule OLO Fatima OLO Mt. Carmel (Iligan-Cebu v.v.v.) OLO Guadalupe [reserve] Dona Cristina (Cebu-Tacloban v.) SuperFerry 5 (Mnl-Ceb-Ili-Dum-Mnl) and Mnl-Dum-CDO-Ceb-Mnl) Elcano (was not used.v.v.v.) SuperFerry 2 (Manila-Cebu-CDO v. obsolete) and Mnl- After the consolidation.v. and Cebu-Maasin v.) SuperFerry 3 (Mnl-Zamboanga-Cotabato v.) Dona Lili (Cebu-Surigao v.

It also ventures into containerization. ATS focused on moving towards being the only integrated transport solutions provider in the Philippines.4 million for the company during the first nine months of 2009. Aboitiz Transport System Corp. The company noted its margins may improve if fuel prices continue to decline. However. is scheduled for completion in January 2009. offered to buy the Aboitiz family's transport business. logistics and supply chain solutions. The following year.. signed an agreement selling its entire 93. was badly hit by the economic crisis. It engaged principally in the movement of people operating under the brand names SuperFerry. Aboitiz Equity Ventures Inc. a company owned by Kuwaiti Gulf Link Investments. To help mitigate the negative impact of fuel prices to margins. During this very difficult time for the shipping industry. . The sale. Negros Navigation Company’s (NENACO) parent firm KGLI-NM Holdings Inc. C. which includes all of the shipping and logistics businesses of ATS except the Aboitiz Jebsen Group. the company began transforming itself into value-added service organization with its efforts focused on integrating its services to build complete supply chain management solutions. Divestment of Aboitiz Transport System in 2011 In 2008. ATS said fuel expenses account for majority of its total cost. RoRo services. SuperCat. Net income for the year was P402 million. ATS' parent company. In September 2008. and ship management and manpower solutions. and Cebu Ferries and the movement of cargos operating under the brand name 2GO. the deal fell through after the Kuwaiti group's finances were strained by the financial crisis. total costs and expenses resulted in a net loss of P49.03 percent stake in ATS to competitor KGLI-NM for P5 billion.Don Calvino SF 11/OLO Banneux (later) OLO Guadalupe Misamis Occidental/OLO Montserrat Masbate 1/OLO Manaoag (later) The following ships were sold: Tacloban City Iligan City Dona Virginia Zamboanga City After the consolidation.

Aboitiz Equity will buy the 62. enhanced frequency and improved customer care to its valued passengers and freight.In 2010. At a special meeting on December 1.12% ownership of ATS. on January 3.5 percent equity of Aboitiz Transport in Aboitiz Jebsen for P355. China-Asean Investment is a private equity fund sponsored by the China Export-Import Bank. the Board of Directors of Aboitiz Equity Ventures voted unanimously to accept the offer of NENEACO to buy its shareholdings in its transport subsidiary. except the business interests the family co-owns with the Jebsen Group of Norway. the . The deal was completed recently.043 per share. Responses to Change The Board of Directors of Aboitiz Transport admitted that its divestment was a very difficult decision to make.. 2011. The Board of Directors. a Netherlands-incorporated company wholly owned by China-ASEAN Investment Cooperation Fund (CAF). 2010. logistics and supply chain customers. This time. and bulk transport held by the Aboitiz Jebsen group. Aboitiz claims they are happy to transfer the ownership of ATS to NENACO and its principal shareholders. Aboitiz & Co. Management also felt confident that the increased resources of the combined company will enable Aboitiz to provide innovative services. The expected P5-billion proceeds from the deal will be invested in other interests of the company including power and its banking arm Union Bank. manning and crew management. NENACO again offered to buy the respective equity stake of AEV and AEV's major shareholder Aboitiz & Company in ATS on a per share purchase price to be computed based on an ATS equity value of USD105 million (about P4.V. These business interests include ship management. This was followed by a completed tender offer to buy all other remaining shares of ATS which effectively gave NENACO 98.28 billion )or equivalent to approximately USD0. felt the NENACO offer was reasonable and representative of ATS' value and that reinvestment of the sale proceeds in other identified areas will greatly enhance shareholder value over the long term. considering that the Aboitiz group has been in the transport business for over 100 years. however. Under the terms of the deal with Nenaco. the Kuwaiti-backed firm will buy the Aboitiz family’s interests in the transport sector. will also acquire Aboitiz Transport’s 50 percent equity in Aboitiz Jebsen’s chartering business for P44 million.91 million. Nenaco will finance the purchase of Aboitiz Transport with equity investments from China-ASEAN Marine B. To limit the deal with Nenaco.

major in Management. he takes on several manager positions before he became the President of Aboitiz Shipping at the age of 27. He started working in the family owned corporation in 1970 wherein he assumed clerical and rank & file positions. will be integrated to cut costs and boost profitability. V. He also served at Davao Light and Power Company (DLPC) as the President and Chairman of the Board from 1988 to 2001. The Aboitiz Group is fully committed in the transition to the new management and they are assuring employees and management of ATS that their interests will be taken care of. Eventually after learning the hard part of the business. CEO Profile Jon Ramon Aboitiz descends from a family of Spanishorigin in Cebu. He serves as the Chairman of the Board of Pilmico Foods Corporation . IN FOCUS: JON RAMON ABOITIZ A. Operations. until January 2009. Company Profile V. however. because they share the same long term vision of Aboitiz and appreciate the need for industry consolidation and collaboration to improve efficiencies and lower transport costs. with ancestry tracing back to the Basque Country in northern Spain. He graduated from University of Santa Clara. California with a degree of BS Commerce. The business of Aboitiz Transport and Negros Navigation will still be run as separate brands.Chinese-ASEAN Investment Cooperation Fund. The combined NENACO-ATS entity will have 31 vessels. President and Chief Executive Officer in 2002. The peak of his career started in 1994 when he became the Chief Executive Officer and President of Aboitiz Equity Ventures Inc.

Humble Despite of his position in the corporation and status of the Aboitiz clan. it is important to assess the traits and leadership qualities of Jon Ramon Aboitiz. Jon Ramon Aboitiz serves as the Chairman of the Board of Aboitiz Equity Ventures Inc. Before passing a judgment. To be effective. He goes to work early in the morning and sees to it that everything goes smoothly as planned. He has been Chairman of Aboitiz Transport System Corporation since January 21. the CEO must be first a leader of good character. Washington Sycip Policy Forum at the Asian Institute of Management. He also serves as Vice Chairman of Union Bank of the Philippines and has been its Director since June 1. 2001.. Excellence is “being all you can be” within the bounds of doing what is right for your organization. they build excellence. Personality traits and characteristics affect the one’s ability to lead and to make sound decisions for the best interest of the company. 2011. Personnel Qualities Leaders do not command excellence. They have a ruling in the company which states that executives are required to retire from day to day operations at the age of 60 after which they can assume a non-executive position. Thus. . he also serves as trustee of the Ramon Aboitiz Foundation Inc. and Vice Chairman of Aboitiz Power Corp. After his retirement age. in May 2009. he first checks all the facts and hears everyone out. Fair in dealing with others He deals with others consistently and justly.and Pilmico-Mauri Foods Corporation. In their system. Dedicated to his craft He spends whatever time or energy is necessary to accomplish the task at hand. everyone works as a team. and the Association of Philippine Foundations. He is not self-effacing but rather tries to elevate everyone by recognizing their accomplishments. the Aboitiz Group Foundation Inc. He does not jump into conclusions based on incomplete evidence. Jon Ramon remains humble and down-to-earth. B. and is a member of the Board of Advisors. the President and CEO of Aboitiz and Co. In addition to these positions.

they need to create more employment for the people. then others can also do it as well. C. and its evolving environment.Creative He sees things in a different perspective and thus lead followers in new directions. With the current state of the economy. he gets outside of the box that constrains solutions. Respect for Others How leaders treat others speaks volumes about who they are. Support to radical changes (organizing and resourcing for changes) Jon Ramon Aboitiz envisions the future of the organization. He provides inspiration and motivation to his subordinates to seek out accomplishments. in order to determine the need for change. . He critically examines the business. If leaders could work hard to attain something. Being a role model As the CEO of Aboitiz. and “stands for” something worthwhile and detectable. To widen his options. operates out of discernible principles. for them to have more purchasing power. he is a type of leader that people look up to and admire. He continues the initiatives of his predecessors in expanding and strengthening the company. he believes that to be able to develop. he exhibits the following characteristics: Trustworthy He possesses integrity and does the right thing even if no one is looking or even if he does not receive acknowledgment for his act. D. its current performance and resources. To be an effective leader. He has consistency of purpose. Perseverance He leads by example and shows the importance of dedication and hard work. He listens to others and also considers opposing points of view. Jon Ramon knows the importance of his employees to the success of company. as such he treats them fairly and with due respect.

Leadership Jon Ramon Aboitiz was the fourth president of Aboitiz following the footsteps of his grandfather and father. seen and unseen. He “brings out the best” in each of those who follow. F. he involves his people in decisions wherever possible and continuously encourages them to excel in their craft. Mandated empowerment He believes that nothing can be done by one person alone.E. When it comes to his leadership style. He redefines their brand essence. To support the vision and philosophies of Aboitiz. . G. 1 but being the biggest is not that important. he is always looking for a better way of doing things. Support to vision One of the philosophies of the company is to be the best at what they do. and delights in each person’s growth in capability and character. Thus. he is more of a transactional type. Whatever the company do. he keep the lines of communication open so that his employees feel free to share their ideas and in return he can offer direct recognition of their unique contributions. driven by the company’s initiative to lead and to set the trends in the industry. seeks the development and advancement of all employees. He rose from the ranks from being a messenger and assistant until he reach the top position. For him success is not because of one person but the collective efforts of many people. In order to foster supportive relationships. He believes that learning is a value and that unexpected situations are seen as opportunities to learn. Quality and Customer focus are their top priorities. He encourages creativity and nurtures people who think independently. They are not necessarily no. that something of lasting value is almost always the result of a group effort. Jon Ramon develops a passion for better ways.

the history of a Spanish business in Cebu.References: “Aboitiz y Compania. 2011 http://beta.aboitiz.tv/story/131856/business/aboitiz-transport-incurs-losses-due-to-highfuel-costs http://www. Philippine Daily Inquirer http://www. Central Philippines”. Sino-Cruz.ph/ http://www.com/news-archive/2010/news20101206-a.gmanews.portcalls.php accessed on March 21.com/AEV/index.php http://www.ufs. Irene R.ph/2009-10/node/4760 .atsc.com.

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