PHILIPPINES CLARK DEVELOPMENT CORPORATIONOND PP W 13 14 15 16 18 20 | CONTENTS Message from the President & CEO Financial Performance Business Development Highlights Reliable & Affordable Utilities Recovery of Lands / Revival of Projects Tourism Highlights Infrastructure Improvements Automation Improving Securit (egat Hishiights a Environmental Protection Values Reformation and Administrative Support CSR Projects Executive Summary Board of Directors Management CommitteeMESSAGE FROM THE PRESIDENT & CEO In December of 2012, | came to CDC with a vision in mind, which was to revitalize the values and culture of the Corporation. | believe that by emphasizing principles such as transparency, accountability, participation, and responsiveness to the needs of our stakeholders, we can truly achieve a stronger and more sustainable Clark. The foundation of good governance laid two years ago has now led to several firsts in the Corporation, most notably, in sectors such as Finance, Business Development and Corporate Social Responsibility From 2012’s Php 1.30 Billion cash position, it has almost doubled by yearend 2014, at PhP 2.277 Billion, while Net Income almost tripled in two years’ time, from PhP 187 Million in 2012 to PhP 554 Million in 2014. In terms of business development, the programs that we have initiated in 2013 have resulted to the acquisition of a total of US$ 277 Million in committed investments and 84,310 in committed employment We have also ensured that these economic gains would impact the surrounding communities through Corporate Social Responsibility programs that are aimed towards skills development, employment generation and independence from dole-outs. CSR is indeed a critical success factor and a lasting measure of our performance. However, having already achieved these does not mean that we will rest on our laurels. These accomplishments only mean that we did make significant progress on our priorities. We still have a lot of work ahead on many fronts in order to keep creating more employment opportunities and generating economic activity. Our time in government may be limited as we serve at the pleasure of the President, however, we should not let these timelines define our advocacy. Our advocacy should instead be defined by the many coming years within which the succeeding generations are still reaping the fruits of our labor. ARTAUR P. TUGADE, Py éident GE CEOs)FINANCIAL PERFORMANCE REVENUES (in Millions PhP) rayne 2a | 4,600 4,400 1,389 1,200 4,000 800 600: 400+ 281 200 1996 2013 2014 2014 gross revenues is PhP 1.389 Billion which is 15% higher than 2013's PhP 1.213 Billion. Of the total aggregate revenues for the last 18 years, revenues from 2013 and 2014 accounts to 20%. NET INCOME (in Millions PhP) 00 252 0 : '332 go 276 5S 187 477 ‘soul 1286 \ (= Extraordinary Income Net income for 2014 is PhP 554 Million which is 67% higher compared to 2013's PhP 332 Million. Net income for 2013 and 2014 is equivalent to the total net income for the last five years (2008-2012), excluding —_ extraordinary income and is also twice the net income for 11 years (1996-2007). Of the total aggregate net income on the last 18 years, the 2013 and 2014 net income of PhP 886 Million represents 41.17%, excluding extraordinary income.CASH POSITION (in Millions PhP) 2,500 2,277 1,906 aa 4,681 ibetd) 1,301 1,000 500 173 4996 2008 V_2012 2013 2014 '§ BCDA Funds ‘CDC Funds - The yearend 2014 Cash Position which is fully backed up by financial documents is 35% higher than 2013's PhP 1.681 Billion. - The 2014 ending cash level of P2.075 Billion, net of BCDA funding for the power infrastructure, is 12 times more than the 1996 ending cash level of PhP 173 Million - The 2014 cash level is also almost twice the 2012 ending cash level of P1.099 Billion, net of BCDA funding. This is after payment of cash dividends, infrastructure projects, and retirement pay. CDC remitted to the government a total of PhP 220 Million cash dividends in 2014, again the highest single-year remittance so far. From 2013 to 2014, total cash dividends paid is PhP 320 Million, or 34% of the total remittances to government since 2006. The outstanding financial performance of CDC is attributed to a combination of trust and hard work. itis the result of the joint efforts of all CDC units to include the shared wisdom of the Board supporting the Bases Conversion Development Authority (BCDA), shared vision by Management, cooperation of the workforce, and the full confidence of the locators. It was also achieved due to the following: Full recognition of leases after the grace period; lease escalations, and incremental Tevente shares. Lease rate of contracts signed are now more reflective of the actual value of lands in Clark; Continuous implementation of cost-cutting measures on operating expenses. For this year, actual budget savings from total OPEX Is 19% as compared to imposed savings of Yo, Collection of Transfer Fees; Legal actions initiated for the collection of arrears / accrued unpaid lease rentals; Collection of Permits and other fees; Reduction of CDC operating cash funds to the required minimum and investing the Test in one investment basket thereby maximizing interest income as compared to funds invested in several accounts; Realized forex gain of PhP 3.50 Million; Retirement, termination, no replacement & freeze hiring policy of CDC's manpower complement. resulting to a substantial eduction of the number of employees from 730 employees as of 2013 to 660 employees as of end of 2014; Diligent monitoring and rationalization in the availment of health care benefits and overtime pay.BUSIN HIGHLIGHTS SIGNED CONTRACTS US $ 277.15 Million in investments and employment commitments of 84,310, These investment and employment commitments are higher by 123% and 342%, respectively, compared to 2013's committed investment of US. $ 124.95 Million and 19,079 committed employment. Investment Commitments amount to US $ 58.10 Million from Direct Leases and US$ 66.85 from sub-leases (See table below for reference). Employment commitments are broken down to 10,722 jobs from direct leases and 8,357jobs from subleases. A major contract signed was the Capilion Corporate PTE Ltd., a Singapore based company to develop a mixed- use facility for BPOs, offices and tourism facilities. its initial investment is Php 2 Billion” with programmed investment of up to Php 7 Billion and target employment of 75,000 over a period of five to six years. Cie akan ert me Cen 1 meena onereg raps ead 2014| 2013| 2014 2014 | 2013 7572 | OTD Direct Leases| 26 | 17 | 19867 ESS DEVELOPMENT CONTAINER YARD CDC signed a 5-year contract with Cargohaus Inc. for the operations of a 3-hectare Container Yard and Containerized Freight Station to serve empty container vans congesting the Port of Manila and other ports in Northern and Central Luzon. Committed investment is PhP 15 Million TOP EXPORTERS Exports value by yearend is at US $ 4.75 Billion. Our top exporters are Phoenix Semiconductor Philippines, Corp., Nanox Philippines, Inc., and Yokohama Tire Philippines, Inc. Clark's exports of goods are again at its Corporate high of $ 4.75 Billion as of end of December 2014, exceeding last year's total of $ 3.83 Billion by 24%. A robust export performance continues to grow for the manufacturing sector, with PSPC as top exporter with its exports otaling to US$ 2.912 Billion. CFZ's export values exclude the export of Texas Instruments, Inc. amounting to US$ 3.14 Billion. Texas Instruments is located within the Freeport Zone but its exports President Tugade with the ition ofc oteaponcoporation Le mn ws [as | sea8 3a | 8357 are being reported by PEZA MOAs aaa Boi | 202 | 277.5 | 12a95 | Ba St0 | 19,079EMPLOYMENT As of December 2014, total Clark firm employment from 750 registered enterprises, government offices and indirect employment is at 75,538; 4% higher than the 72,616 ‘employees as of end of 2013. ‘Actual Employment {As of December, 2014) 75,538 3 5 2009 2010 «2011«2012«2013 2014 REDUCTION IN PROCESSING TIME 112,228 permits were issued by the Business Enhancement Group and 99% of them were processed within the 50% reduced processing time reckoned from 2012 levels. Due to this focused thrust, CDC was cited by fDi, an international Freeport-focused magazine, for Red-Tape Reduction Meat ent RELIABLE & AFFORDABLE UTILITIES MAKING UTILITIES MORE RELIABLE AND AFFORDABLE AT LOWER COSTS. In an unprecedented move, CDC was able to reduce water and waste water rate in Clark by Php ‘/cubic meter beginning September 201 This reduction in water rate would translate to roughly Php 400,000/ month water tariff reduction among Ciark’s top water utilizers. In addition to the reduction of water rate, CWC has also committed to invest Php 1 Billion within a 4-year period to improve water services in the Zone. Similarly, CDC Management has also initiated moves to firm up a basket of initiatives that would improve power reliability and make its rate more competitive. Power initiatives include implementation and on-going discussion of various power projects such as: generation of solar energy, waste to energy, bio-fuel, Coal power plant and for BCDA to be a RES (Retail Electricity Supplier) in behalf of all its subsidiaries, including ClarkRECOVERY OF LANDS / REVIVAL OF PROJECTS Contracts were revived for 78.212 hectares and 106.04 hectares were recovered totaling to 184.25 hectares of land. CDC revived/recovered in 2014 a total of more than 184.25 hectares of land from both informal settlers and non-performing locators in Clark, Major properties recovered are as follows: - An area of 78.212 hectares which was left undeveloped and tied up in more than six (6) years of litigation initiated was recovered in view of the dismissal of the pending cases, at no cost to CDC, as agreed under the Court-approved Compromise Agreement among CDC and the parties concerned. - Another 48 hectares was recovered from the farmers near the SM City area pursuant to the implementation of the favorable Decision rendered by the Department of Agrarian Reform Adjudication Board (DARAB) dismissing the complaint filed by the said farmers, claiming tenancy relationship and peaceful possession of the area. [Clearing operations for several areas have been undertaken in 2014] a aaa mes * Recovery and clearing of informal settlers from: (a) 3.95 hectares along Don Juico Avenue, giving way to the full development of the area through a Memorandum of Agreement with the Angeles City Government, and (b) a total of 46.408 hectares within the premises of the Enfinity and TIEZA leased areas. Recovery of a total of another 7.68 hectares for six non-performing contracts in Clark. All in all, total properties recovered / revived projects for 2014 is roughly 184.25 hectares, which are now made available for development. Clearing operations at the Don Juice AreaCLARK SUCCESSFULLY HOSTED THE PHILIPPINE M.1.C.E. CONFERENCE On June 4-7, 2014, Clark successfully hosted the Philippine Meetings, Incentive Travel, Conven- tions, Exhibitions and Events (MICE) Conference dubbed as MICECON 2014 which was officially declared by the Tourism Promotions Board as the biggest of its genre ever to be held since its incep- tion in 2008. The Department of Tourism, thru the Tourism Promotions Board, commended CDC for its efficient handling of the huge requirements of the event which highly contributed to its success. (CDC and the Tourism Promotions Board's (TPB) Top Officials Clark was also host to the 7107 Music Festival in February, the 1st Clark International Motor Show in March of 2014, and the Asia Pacific and Middle East Little League and the 38th National Milo Marathon both held in July. ed to see international artists ‘Chili Peppers & Kendrick Lamar Hoy Muste Festival in. Clark : ‘Teams from all over the Asia Pacific and Middle East competed at the 2044 Little League in Clark Ten thousand participants of tho Jim marathon paint lark roads green CDC also held its 2nd Annual Clark Grand Festival in December, which attracted a total of 17,500 attendees, significantly surpassing last year's total attendance of 6,500. Among the highlights of the event were a celebrity concert, the Clark Grand Festival run, the Drum and Lyre Competition, the Mimosa Pop Idol, Search for Binibini and Ginoong Mimosa’ and the Inter-school Cheer Dance Competitions. Page 9INFRASTRUCTURE IMPROVEMENTS Several infrastructure projects were undertaken by CDC in 2014 to improve over-all experience of Clark locators, residents and visitors in Clark. Incidentally, many of these infrastructure projects were accelerated for them to be also used in time for Clark's hosting of APEC’s first Senior Officers Meeting (SOM) in January — February 2015. The projects are as follows: - Construction of the Bayanihan Park Rotunda to help ease traffic congestion along Balibago Aside from aiding in the improvement of traffic, the project will also add to the aesthetic appearance of the area; - Renovation of the Clark Museum to convert it into the first state of the art, interactive museum in Pampanga, showeasing not only the history of Clark, but also the various products made in Clark. The newly-renovated Clark ‘Museum, F tne Hot air Balloon Fest. xi at the 2nd Floor of th - The Museum houses 4 different galleries which feature the geology, geography, history of Clark and its’ surrounding communities, the Kapampangan culture, and the Clark Freeport. - The museum features a multitude of interactive exhibits, “Made in Clark” products Genie, Kapampangan Crafts, a Souvenir shop, historical relics, and others. ‘The Clark Museum offers vast Jearning experiences to its visitorsThe interactive displays include a hologram narrating CDC's history, a realistic Hot Air Balloon display, and an augmented reality display at the Museum's ground floor. Interactive Mount Pinatubo display Next to the museum, CDC has constructed a 4D Theater showing the past, present, and future of Clark where guests can experience every tremor, sight, sound and smell that was experienced ‘by the residents of Pampanga and Tarlac during the 1991 Mt. Pinatubo eruption;INFRASTRUCTURE IMPROVEMENTS - One of the most visited places and the most preferred event locations in Clark, several improvements were made to the Clark Parade Grounds in order to accommodate night sporting events and to make it a safer, more enticing and friendly place to spend recreational time. CDC instigates aesthetic. improvements around Clark - In. addition, several repainting and rehabilitation programs for Clark Freeport facilities and buildings, gutters, and pavement markings, and ~ landscaping works were also undertaken in 2014. Old, ugly and dilapidated housing units were rehabilitated and spruced up; Parade Grounds jogging path perspective - Upgrading of the parade grounds through the installation of a rubberized jogging path, - construction of benches and construction of comfort rooms along the parade grounds were undertaken in 2014 Newly-constructed comfort rooms at the Clark Parade Grounds LED park lights along the jogging path were also installed; Aesthetic improvements, such as the demolition of the old CFZ Main Gate and other dilapidated structures were also among the projects initiated by CDC in 2014. Roadway improvement projects, such as the installation of additional traffic lights and signages along major roads; and, Installation of new LED streetlights to reduce our electric consumption and reduce our carbon footprint. Not only do LEDs provide energy savings, they also work longer without failing. This greatly reduces maintenance schedules as well as cutting the cost of replacing incandescent bulbs. LED Streerlights along M.A. Some RoxasCDC in 2014 has also completed /Ten (10) major Capex “Projects and 32 Maintenance- Related Projects. Capex Projects completed includes _ the Construction of 120 meter length Foot Bridge and 1,311 linear meters Base Course Access Road that connects Sitio Haduan to Clark Special Economic Zone including the provision of Community Health Center Bldg., Construction of 267 linear meters Slope Protection Structures along A. Bonifacio Avenue Extension and 1,020 linear meters along Lower Dolores Creek, Road Repair fronting former Jacinto and asphalting of 513.41 linear meters along Bayanihan Street including the 614 linear meters along R. Magsaysay Extension, Del Rosario and De Jesus Street which also includes construction of new drainage and sidewalk. The Provision of 26 sets Trash Bins, 11 sets barbeque grill and re-painting of Playground equipment were also undertaken to improve the Bi-Centennial and Children’s Park and also includes the replacement of Park lights to LED at, Parade Grounds. Drainage improvements were also undertaken to improve drainage systems along CDC Locators mm AUTOMATION As part of CDC's thrust to improve the security in the Zone and its service to its clients, CDC implemented in 2014 numerous IT projects: - Setting up of CCTV throughout the Zone backed up by a fully automated Command Center. We are the first ever Freeport in the country with a zone-wide surveillance system powered by underground fiber- optics. The system is capable of license plate recognition, vehicle counting capabilities, and other analytics. - Development of a mobile application for Clark that is now available for - android phones and will also. be available soon for Apple units. The = mobile application provides ready information in Clark most useful for (cD now on MOBILE® Visitors and locators oS = Upgrading and maintenance of other existing systems: CDC Business Registration System and Document Tracking System;IMPROVING SECURITY In addition to the installation of CCTV throughout the Zone, the Public Safety Department (PSD) adopted other measures to ensure safety in the Zone, as follows: - Cutting back response time from emergency calls/ incidents from an average of 10.58 minutes in the first quarter of 2014 to only 7.165 minutes by yearend. - Increasing police visibility, resulting to more assistance extended to guests and the general public and apprehensions of Violators minimizing illegal and unauthorized activities. ~ Introducing innovations in the drafting of the seourity services Terms of Reference (TOR), ie. ten (10) patrol cars, alcohol breath analyzers, speed guns and night vision goggles were included in the special equipment to be provided by the Security agencies; = Conduct_of Special Training on Urban Counter-Terrorism to enhance CDC capabilities; CDC's Seculity personnel attend the Special Traiting on Counter-Terrorism : - Accreditation of security agencies engaged by locators to ensure they are able to meet, general security requirements in Clark; - Conduct of fire safety _ inspections, earthquake and fire safety trainings to ensure preparedness during such emergencies. Seminars for road safety have also been conducted. LEGAL HIGHLIGHTS Compared to the previous years, major cases of considerable impact were duly concluded andior decided in 2014. The most significant case yield and freed-up an area of 78 hectares, which has been tied up in litigation and barred from development for more than six years. The said area is ready for lease and development. Also, the settlement of another case resulted to the appraisal of an area of 33 hectares of CDC/BCDA propetties, including the former Mimosa Leisure Estate, at no cost to CDC. Collection of arrears from the delinquent lessees was successfully pursued giving CDC a guaranteed collection of PhP2.6 million. While a money claim of significant value (PhP18 million) has been adjudged for payment by the Commission on Audit (COA), the same was filed against CDC way back in 2003 and was finally decided by the Supreme Court in 2010 CDC consistently showed firmness in the prosecution of offenders and law violators, Tegardless of amount involved to establish accountability and to protect government propetties. In one case covering the Sacobia area, CDC's police power within the Clark Freeport Zone was legally sustained by the Office of the Provincial Prosecutor which ordered the filing of the criminal case in Court. Also, in various complaints for Estafa/BP 22 filed by more than 77 employees of the CDC-SPRO against a former payroll officer, a Warrant of Arrest has been Issued against the accused. In the same vein, the disbarment case against the former General Counsel of CDC is submitted for resolution before the Integrated Bar of the Philippines (IBP). CDC further won over the illegal dismissal cases filed by some of the dismissed employees. While major cases were settled/decided in favor of CDC, CDC continues to face certain labor challenges as carry-over of the past or brought about by new laws and government regulations.ENVIRONMENTAL PROTECTION CDC advocates environmental preservation and protection as it pursues economic development in the Zone. For this purpose, various initiatives were implemented in 2074, such as: - Signing of contract with Enfinity Philippines Renewable Resources Inc., for the establishment of 10-20 MW Solar Power Facility in Clark with an investment of Php 800 Million; - Initial discussions with proponents for the use of electric public transport system in Clark. CDC supported DOST in its design of a prototype for an electric bus to be used for public transport; and, - Holding of the 11th Annual Recyclables Event which resulted to the collection of 15,581 busted lamps, 476 empty cartridges, 982 used lead acid batteries, 2,216 liters of used oil and 5,016 kgs. of used oil, and other recyclables and e-wastes. Officers of DENR and CDC at the 11th Annual Recyclables Collection Event VALUES REFORMATION & ADMINISTRATIVE SUPPORT CDC Directors, Officers, and rank and file signed a re-confirmation of the Integrity Pledge in November 2014 as a way of reminding everyone of an earlier commitment to tread the straight path (Daang Matuwid). Important values, such as: no receiving of gifts even during Christmas time, service with sincerity and professionalism, wearing of IDs and a smile, sharing of employees thoughts and experiences on work culture and values during flag ceremony, coming to office earlier, among others, have been advocated by the Management To ensure efficiency of business operations and to further increase productivity, CDC embarked on ISO 2001:2008 Quality Management certifica- tion process. For this purpose, the Development Academy of the Philippines (DAP) was hired by CDC to guide it in the ISO certification process Various trainings and workshops were conducted the whole of 2014 to bring everyone to a commitment of pursuing quality and excellence. CDC has actively participated in increasing awareness on gender rights and issues among its employees during the celebration of Women’s Month in March 2014 with the film showing of ‘Girls’ Rising” and Forum on Women's and Children’s rights. The signing of a MOA calling for the establishment of a Halfway House and GAD (Gender and Development) Centrale, in partnership with the Bases Conversion and Development Authority (BCDA) and the Clark Intemational Airport Corporation (CIAC), has. shown the continued support of CDC in protecting women from falling prey to human trafficking CDC implemented a succession program for CDC officers “and employees through a scholarship grant to Masters of Management Progen in part- Rership with the Universty of the Philippines — Diliman Extension Program in Pampanga (UPDEPP). The CDC employees admitted in the program will be reassigned to key positions un- dertaking duties and functions on various units of the CorporationCORPORATE SOCIAL RESPONSIBILITY PROJECTS Clark's CSR projects are testament to the corporation's commitment and advocacy to contribute to economic development while improving the quality of life of the surrounding communities. It is also a hallmark of our performance, as CSR is one of CDC's critical Success factors. CDC continued to ensure that the economic benefits gained by the businesses inside CFZ trickle down to the communities and is really felt by its residents. Residents of Sitio President Arthur T CDC completed CSR projects such as the Community Health Center at Sitio Haduan and Foot Bridge Leading to Sitio Haduan, to aid our surrounding communities and in the development of Clark as a tourist destination as access to the Haduan Falls is now made easier and safer by the foot bridge. 1g bridge Is 120 meters long and 1.2 | meters wide. It links the Aeta Community to the rest of Pampanga" ‘ wy Te nan CDC also successfully coordinated a total of four jobs fairs in 2074, the Clark Jobs Fair Events held in April, 2014, in November 2014, a Mini Jobs Fair Event in December 2014 during'the Clark Grand Festival, and the Jobs Fair 2014 for PWD and IPs in May, 2014, resulting to the initial hiring of forty two (42) IPs. A breakdown of the results of the Clark Jobs Fair Events in 2014 is as follows: TTY or irae APRIL 24, 2014 254 MAY 29, 2014 (for PWDs and AETAs) 42 NOVEMBER 27, 2014 101 DECEMBER 5, 2014 (MINI JOBS FAIR 1 ‘AT CLARK GRAND FESTIVAL) TOTAL 398 Our constant social development endeavors include the following: 1. The STEP-UP program, which is a_ joint collaboration between CDC, L & T, City of Angeles and Mabalacat City College in a Specialized Training and Employment Program for underprivileged persons; 2. CateractPterygium | Surgery, program: ‘Twenty-Five (25) were treated and given eye glasses, Eight (8) were scheduled for Cataract and Pterygium surgery.3. Provision of safe and potable water to communities surrounding Clark through a MOA with the Angeles City Water District. 4. Distribution of 14 Pangkabuhayan Karts, with P6,000 worth of groceries to PWDs of Porac, Angeles City, Capas, City of San Fernando, Bamban, and Mabalacat; 5. Distribution of 10 Bahay Kubo worth Php 11,000 each to Aeta vendors to enhanced the location of their livelihood stores and not be seen as eyesores to shoppers of duty free shops. eS ‘APar kabuhayan at 6. Implementation of Specialized Tour Guiding Training program for 28 indigenous people; | Tour Guide training for indigenous People 7. Signing of MOA with the Municipality of Capas in Tarlac for the creation of a facility needed for chopsticks production 8. Participation, in the vaccination program speattieaded by Department of’ Health (DOH) wherein more’ than 2,000 infants and children, including members of the Aeta tribe Were given measles and oral polio vaccines. 9. Wellness Massage Training Program for IPs and PWDs 7 male 10. Inclusion of a provision for the hiring of PWDs and IPs in our Lease Agreements with locators. DC President Tugade | head, Peter Tay Yaw Beng with Capilion a Page 17| | EXECUTIVE SUMMARY The year in review has seen more significant changes in our corporate policies, practices, business environment and surrounding communities. Best practices for policies and procedures have been put in place and solidified, leading to a more efficient, more transparent, and more accountable organization. POLICIES AND PROCEDURES BEST PRACTICES FOR FUND. MANAGEMENT IMPLEMENTED: Seeing the need for reforms on fund administration, the Management has prompted the following changes: 1. Use of a standard template for daily Cash Position report and monthly financial statements; 2. Cost-cutting expenses; measures on operating 3. Setting aside various deposits and placements to the following CDC Accounts: a. CDC Infrastructure Account b. CDC Non-Infrastructure Account c. CDC Retirement Fund Account d. CDC OPEXWorking Capital Account These practices have led to the breaking of records in 2013 and 2014 by CDC, in terms of revenues, net income and cash position based on unaudited financial statements. In fact, the results of operation for 2013 and 2014 surpassed the performance of the past five years combined, BREAKTHROUGH PROGRAMS Revolutionary programs, such as the Enhanced Account Officer System, the 3-Year Certificate of Registration and. Tax Exemption (CRTE) Program, and the 50% Reduction in Processing time were also implemented, resulting 0 significant and positive changes in the way we do things in Clark. For 2014 alone. investment commitments total $ 277 Million, while employment commitmentis at 84,310. Processing time for permits have been considerably reduced, from an average of 18 days per permit in 2042, itis now at only 2 to 3 ays. IMPROVED UTILITIES AND INFRASTRUCTURE One of the hallmarks of an effective Freeport Zone is the reliability of its infrastructure and utilities. In 2014, a high-impact agreement with Clark Water Corporation was signed for the reduction of water tariff and commitments for a water infrastructure plan to meet future water requirements, To address concerns on the availability of power, a contract with Enfinity Philippines Renewable Resources, Inc. for the establishment of a 10-20 MW ‘Solar Power Facility in Clark. The development of new infrastructure and improvement of existing infrastructure have also been accelerated. These projects include the establishment of a Freeportwide CCTV System, the construction. of the new Bayanihan Park Rotunda, and the renovation of the Clark Museum and construction of the first and only 4D Theater in Pampanga ‘The new Bayanihan Park Rotunda will helplease trafic congestion Issues in BalibagoTOURISM PROMOTIONS STRENGTHENED, With a renewed focus on Tourism as one of Clark's major growth engines, Clark is now being recognized as one of thé premier destinations for meetings, incentives, | conferences, and exhibitions, with the hosting of the successful Philippine ‘M.LC-E. Conference in June 2014 Clark’has also been chosen as the site for the 2015 APEC Senior Finance Officials and First Senior “Officials Meetings.» (SOM1). One of CDC's signature events, the 2nd Annual Clark Grand_Festival was held in December, attracting 17,500 attendees surpassing the previous year’s attendance of 6,500. d GDC Directors, officers, and rank and le ‘Signed a re-cohfirmation of the ity Pledge In November 2014 GOOD GOVERNANCE PRACTICES SUSTAINED Having recognized the rle of good governance in development, CDC, in December of 2012, has started revitalizing its values and culture. Léd by its President, Atty, Arthur P. Tugade, CDC pu emphasis On transparency, ~ accountability, participation and responsiveness to the needs of our stakeholders. Policies, such as the, smile, punctuality and the “No Receiving of Gifts" policy have been instituted and strictly implemented by Management. These Policies have now taken root and, by heart, are now being practiced by all CDC employees and officials. In November of 2014, CDC Directors, officers, and rank - and. file) employees signed | a re-confirmation of the Integrity Pledge, signifyin their commitment to the “Daang’ Matuwi advocacy of our government. CORPORATE SOCIAL RESPONSIBILITY Critical success factor is an element that is necessary for an organization to achieve its mission. At Clark, we recognize Corporate Social Responsibility (CSR) as a critical success factor and ‘its role in ensuring our long-term success. The full integration of the interests and needs of customers, ‘employees, communities, and our environment - as Well as to those of stakeholders - into our corporate strategies guarantees not only the success of Clark, but also fe Success of the people who have a stake in it. Employment generation being one of our primai missions, our CSR endeavors in 2014 included Jobs Fairs, including the 2nd Jobs Fair for Persons with Disabilities and Indigenous People (IP), resulting to the initial hiring of almost 400, In an unprecedented move, we have also. included the mandatory hiring of PWDs and IPs in our Lease Agreements” with locators. CDC also rovided potable | water, toa community enefiting 841 familes. Other lvelinood projects include the distribution of 14 Pangkabuhayan Karts, and 10 Bahay Kubos. STRUCTURE ORGANIZATIONAL REFORMS RESULTING TO MORE EFFICIENCY To align personnel requirements in support of the new thrust of CDC for business efficiency, transparency and accountability, reforms on the organizational structure have also __ been instigated, resulting to a more mean and lean organization. These changes in the organizational structure have also led to a 9% reduction in total operating expenses in the last two years. Department ado account Officer Systemcpc @ ¢ BOARD OF DIRECTORS . Top Row (L-R) Justice Armando R. Melo (Director), Francis Raphael C. Elum (Director) 2nd row (L-R) Francisco L. Villanueva (Director Atty. Cresencio P. Aquino (Director), Jose Danilo A. Honrado (Director) 3rd row (L-R) Engr.Rommel A. Bondoc (Director), Ricardo S. Baron (Director), 4 Manuel M. Feliciano (Director) Last row (L-R) Engr.Eliseo B. Santiago } (Chairman, CDC Board of Directors) Atty. Arthur P. Tugade (Director and CDC President and CEO) Atty. Amel Paciano D. Casanova, Esq. (Vice Chairman CDC Board of Directors and BCDA President and CEO) | MANAGEMENT COMMITTEE Top Row: a e } (LR) Gen. Ricardo C. Banayat . (Assistant VP for Security Services), Alizado F. Paras (Assistant VP for Finance), Franco Alejo L. Mandlangbayan (Vice President for Operations) Second Row: Noel F. Manankil (Vice President for Admin & Finance), Atty. Arthur P, Tugade (President and CEO), Atty. Perlita Mateo-Sagmit E (Chief Legal Counsel and Corporate Secretary) Last Row: Engr. Teresito T. Tiotuyco (Assistant VP for Technical Services), Roberto C. Tagamolila, Jr. (Assistant VP for Information Technology), Evangeline G. Tejada (Assistant VP for Marketing), Engr. Mariza 0. Mandocdec (Officer-in-Charge for the Office of the Vice President for Business Development and Business Enhancement Group)THE CDC PRAYER Almighty Father, You bestowed Gideon with the gift of trust, Solomon with the gift of wisdom, Abraham with the gift of faith, and Noah with the gift of obedience. We do not mean to ask for Solomon's great wisdom, But as your stewards of the Clark Development Corporation, May we imbibe a litle To know and discern what is best for the company. May we fully trust in you as Gideon did, That we may follow Your will with the obedience of Noah. Make Abraham our model of faith, to know that in Your good name, All will be set in place. And if we somehow manage to accomplish something beneficial, May we behave as the philosopher Seneca said: As the horse when it has ran the race, As the dog when it has tracked the game ‘As the bée when it has made the honey, So a man when he has done a good act, Does not stop and calll out others to come and see, : But goes on to another good act as the vine goes on to produce again the grapes in season And in everything we do. let us ever say: Not to.us O Lord, not to us, But to Thy Name be the glory. Amen. - By Justice A.R. Melo ABOUT THE COVER: The theme of the 2014 Management Report was inspired by the good governance advocacy of President Arthur P. Tugade. The groundwork for this advocacy started late 2012. With this in mind, we have chosen to align our theme with triangles which symbolize stfength, stability and structure. The colors of Clark were chosen to depict growth and the company, in as much as the corporation saw growth,revitalized Paterson values and renewed unity. 20 | 4 The CDC 2014 Management Report is a Dearie project of Clark Development Corporation ns eon an aneen sens coneRK GH CLARK DEVELOPMENT CORPORATION Clark Development Corporation Building 2125 E. Quirino Street Clark Freeport Zone 2023 info@clark.com.ph (+6345) 599-9000