I.

Financial Strategies
For the past 180 years, Ayala Corporation has been recognized as the oldest and biggest

operating conglomerate in the Philippines. What kept the company running is its excellent
management and unbeatable strategies. Ayala Corporation started as a simple partnership
business, but now it does not only own a single business but several businesses in various sectors
of the industry.
Developing financial strategies is an essential part of a companys strategic planning. A
company must understand how to plan and manage its finances in order keep its operations on
track. Ayala Corporations financial strategy focuses on maintaining an aggressive investment
portfolio.
For the past 5 years, Ayala Corporation has been undertaking several investment projects
in order to achieve the companys target.
a. Intended
The continuous growth in earnings of Ayala Corp. has sustained the growth of its
subsidiaries. This growth has led the company on pursuing opportunities for its real estate,
banking, telecommunications, electronics manufacturing, transportation, infrastructure, and IT
and BPO subsidiaries. Throughout the years, Ayala has been expanding its operations by
investing in several kinds of businesses. Through these investments, the company continuous to
increase the welfare of its shareholders and improve the overall performance of the company.

b. Deliberate
In 2010, Ayala Corporation announced the expansion of the companys buyback program
from P5 billion to P10 billion. The additional P5 billion was allocated for the companys health,
technology, and engineering programs.
In 2012, Ayala expanded its banking services by purchasing a total of P25.6 billion worth
of BPI shares from DBS Bank Ltd.
In 2013, Ayala bought P140 million worth of shares of Manila Water Co. from Mitsubishi
Corporation to expand its water utility subsidiary.
In 2014, according to the annual report of Ayala Corporation, the company is allocating
P185 billion in capital expenditure to finance its expansion plans and new investments. The
company is setting a P20 billion net income target by 2016, which they plan to achieve before
the said target year.
In 2015, Ayalas subsidiary, AC Education, Inc. acquired a 60% stake in University of
Nueva Caceres (UNC) in Naga, Camarines Sur to expand its education subsidiary. In the same
year, Ayala also acquired a 50% stake in the Generika group for the expansion of its medical
subsidiary.
c. Realized

In 2011, South Luzon Thermal Energy Corporation, established by AC Energy Holdings,

Inc. partnered with Trans-Asia Oil and Energy Development Corporation to invest on the
construction and operation of a 135-megawatt Circulating Fluidized Bed (CFB) power plant. The
two signed a P9-billion project loan facility through Banco de Oro Unibank, Security Bank

Corporation, and Rizal Commercial Banking Corporation. The facility was expected to be
functional by 2014.
In the same year, Ayala also signed a partnership with Phinma Corporation, to build a
thermal power plant in Calaca, Batangas.
In 2012, Ayala Corporation entered into a sale and purchase agreement to acquire the
GNPower Mariveles 600-megawatt power plant. In this year, the company with AboitizLand
participated in the public bidding of the Mactan-Cebu International Airport Passenger Terminal
under the Philippine governments Public Private Partnership Program.
In 2013, Ayala Corporation also invested to develop wind projects in Ilocos Norte by
signing an agreement with UPC Philippines Wind Holdco I B. V., and Philippine Investment
Alliance for Infrastructure.
In 2014, Ayala invested P2.2 billion in constructing Daang Hari-SLEX Connector Road,
which was opened to the motorists last July 24, 2015. They are expecting to acquire the returns
for this project on the next 30 years.