Professional Documents
Culture Documents
Table of Contents
Corporate Structure
85
Our Businesses
Board of Directors
86
Aboitiz BetterWorld
Corporate Officers
88
Milestones
91
Management Directory
92
10
Financial Highlights
In doing our business, we look beyond profitability and constantly explore better ways to integrate social
development and environmental stewardship into our operations.
As a socially responsible organization, we focus on delivering value to all our stakeholdersour team members,
customers, shareholders, partners, and communitiesby responding appropriately to their evolving needs to
promote inclusive growth.
12
Location of Operations
93
14
Board of Directors
94
Corporate Officers
96
Messages
This is the essence of the Aboitiz sustainability mindset, which all of us in the Group take to heart. We believe
that by doing good, we will do well and achieve long-lasting sustainability.
100
Management Directory
101
16
20
25
29
Board of Trustees
102
Board of Advisers
104
While growing our businesses, we make sure we do our best to minimize any environmental impact that may
result from our decisions and actions. We manage our operations well and utilize resources prudently to achieve
financial growth and profitability.
All these we do, driven by our resolve to make Aboitiz a truly sustainable enterprise that we can entrust to future
generations. We believe that doing well by doing good enables us to secure a BetterWorld for everyone today
and in the future.
34
Feature: Infrastructure/Biofuel
57
Board of Trustees
105
58
Board of Advisers
106
64
Sustainability
67
Corporate Governance
74
107
Talent Management
79
125
Risk Management
83
2014
Business Review
An n ual Report
Results of Operations
Our Businesses
For over a hundred years of doing business, we in the Aboitiz Group have nurtured
and strengthened our core values and beliefs that guide us to be the best at what
we do, and embolden us to uphold our mission of creating long-term value for all
our stakeholders.
We now refer to this comprehensive system of values and beliefs as The Aboitiz Way,
the distinctly unique way we do things.
AboitizPowers
Generation Group
harnesses power from
a right-mix portfolio of
renewable (hydro and
geothermal) and
non-renewable (coal and
oil) sources through its
42 generation facilities
across the Philippines. The Group ensures that its
generated energy is available and reliable, with facilities
operating efficiently at the lowest possible cost, and with
the least adverse effect on the environment and its host
communities.
AboitizPowers
Distribution Group
is composed of eight
companies, including
the second and third
largest private utilities in
the country. The Group
continues to implement
innovative and efficient ways to serve the growing needs
of over 840,000 customers.
Banking
UnionBank is one of
the countrys largest
commercial banks,
offering a wide range
of quality financial
products and services
to retail customers,
middle market and
corporate clients, and major government institutions.
The Bank distinguishes itself through superior
technology, a unique branch sales and service culture,
and centralized backroom operations.
Food
Integrity
Teamwork
Innovation
Responsibility
Pilmico is one of
the countrys largest
manufacturers of flour
and wheat by-products.
It is also a strong player
in the swine production
and animal feeds
businesses. With its
dedicated commitment to quality products and processes,
the company ensures its market competitiveness through
increased customer satisfaction.
Land
AboitizLand is
engaged in the design
and development of
distinct communities
for residential,
industrial, and
commercial use. After
over two decades in
operation, AboitizLand
is today one of the countrys most trusted companies
in real estate development.
The Aboitiz
Foundation is the
corporate foundation
of the Aboitiz Group.
Established in 1988, it
continues to pursue its
mission to help people
help themselves,
implementing
corporate social
responsibility interventions especially in communities
where Aboitiz companies operate. The Foundation
focuses its efforts on education, enterprise
development, and environment but also carries out
projects on health and well-being, as well as disaster
preparedness and response.
WeatherPhilippines
provides the country
with a premier
weather sensing and
forecasting system
made possible by
technology, inclusive
partnerships, and
communication.
Founded in 2012 by the Aboitiz Foundation,
UnionBank, and MeteoGroup, it delivers free, more
localized, and accurate weather information accessed
through weather.com.ph. WeatherPhilippines
complements governments nationwide efforts on
disaster risk reduction, and aims to help build a
#WeatherWiser nation.
An n ual Report
Power
2014
Aboitiz BetterWorld
750
35,133 hours
No. of volunteered hours
860
personnel
million
7 initiatives
AWS
No. of trained
DRRMOs as of 2014
845,004
t CO2
Profit
P18.4 billion
Net Income After Tax
20%
Return on Equity
114,449 beneficiaries
No. of direct beneficiaries
46% (5 years)
P38.4 billion
EBITDA
An n ual Report
2014
893 MW
million trees
No. of trees planted as of 2014
28,518 TM
3.4
People
P610
Planet
Milestones
2003
2004
1995
1998
1996
2005
2007
2006
1999
2000
2002
An n ual Report
1997
2014
1994
Milestones
2009
2010
2011
2012
2013
2014
An n ual Report
2008
2014
At A Glance
Distribution
Banking
Food
Land
A
ggregate energy sales
grew by 10% to 4,480 GWh
Total DU customer base
went up by 4% to 843,802
VECO completed its
first one-kilometer
underground distribution
system in Cebu, from the
Provincial Capitol to the
Fuente Osmea Circle;
two 100-megavolt ampere
power transformers
commissioned
Davao Light began a
seven-year project to
build a robust and reliable
distribution network with
the installation of a 69-kV
loop system.
Cotabato Lights franchise
was renewed for an
additional 25 years
P
osted P20 billion annual
revenue and recorded a
12% year-on-year (YOY)
hike, largely driven by
strengthened volume growth
Full- year Food Group
EBITDA grew by 12% YOY,
including a 64% YOY growth
in Farms EBITDA
F ull-year contribution to
AEV up by 4% to P1.3 billion
E ntered ASEAN market with
acquisition of 70% equity
stake in Vietnam-based
feed mill operator Vinh
Hoan 1 Feed JSC, and
opened first representative
office in Indonesia
Launched Mahalin Pagkaing
Atin advocacy to support
sustainable backyard farming;
initially launched in typhoon
Yolanda-affected areas
A
boitizLand marked its 20th
anniversary
Revenues across all business units up
by 86%
Residential sales grew 15% driven by
sales from high-end projects
Posted 123% growth from commercial
segment
Achieved 100% occupancy for The
Outlets at Pueblo Verde within six
months of operations
Full acquisition of LiMA Land, Inc.
contributed 58% of total net income
after taxes
C
ombined Aboitiz Group CSR
initiatives totaled P610 million, the
biggest allocation to date
Intensified the development of special
science elementary schools (SSES)
and technical vocational (techvoc)
high schools
Donated 272 classrooms in Northern
Cebu as part of its post-Yolanda school
rehabilitation initiatives
Released P14.8 million in loan
packages to various organized groups
nationwide
D
eployed 750 automated weather
stations (AWS) nationwide as of end2014
T rained 435 LGUs and 860 disaster-risk
reduction officers
Signed a 10-year partnership with
platinum donor LBC Express, Inc.
P
artnered with DepEd for weather
education in the Philippines
O
rganized #WeatherWiser Nation
conference and launched a campaign
to use weather information in
decision-making and planning
R
ecognized by three international
award-giving bodies, namely APEX
Global, CMO Asia, and Public Affairs
Asia
2.5B 2.5B
2.2B
3.9B 4.1B
1.2 B
1.3 B
1.3 B
A
ttributable net generation
was up by 3% to 11,272
GWh
Capacity sales rose by 13%
to 1,800 MW
Completed the 13.7-MW
Tudaya hydropower plants
in Davao
Secured 40-MW supply
from the Unified Leyte
Geothermal Power Plant
complex as an Independent
Power Producer (IPP)
administrator
Net sellable capacity
of Therma Mobile
increased to 200 MW after
rehabilitation of its barge
units and transmission lines
Pagbilao Energy began
construction of 420-MW
Pagbilao III coal-fired
power plant
11.7B
10.4B
3.2B
633M
273.5M
63M
WeatherPhilippines
17.5B
10
Aboitiz Foundation
2015 Outlook
C
omplete construction of
Hedcor Sabangans 14-MW
hydro plant in Mt. Province
T herma Souths 300-MW
coal-fired plant in Davao to
go online within the year
B
egin construction of
Hedcors 68-MW Manolo
Fortich hydro plant in
Bukidnon, and Therma
Visayas 340-MW coal-fired
plant in Cebu
2015 Outlook
Start implementation of
Hawkeye Smart Elevated
Meter Cluster technology
across the entire
Distribution Group
Roll out Quantirisk Energy
Management to other
utilities after its successful
deployment at VECO
Go live with Oracles Meter
Data Management by
year-end 2015
Continue underground
cabling in VECOs franchise
area and start it in Davao
Light
Davao Light to expand
e-Bill service to all its
customers
2015 Outlook
Grow retail assets,
particularly credit card,
mortgage, and salary loans
B
roaden customer franchise
by pursuing high-return retail
businesses and grow
fee-based transactions
Strengthen risk
management at an
enterprise level, and
sustain deposit build-up by
focusing on CASA (current
and saving accounts)
C
ontinue building up
the unique Make Da
Diff culture by enabling
communities through Smart
Banking in the spirit of
Ubuntu
2012 2013
2014
2015 Outlook
Increase feeds production
capacities in Iligan and
Tarlac
Increase sow level to
14,000 heads and build
additional farm facilities
Expand aqua feed mill
in Vietnam, and set up
a Pilmico representative
office in Ho Chi Minh
Export flour around ASEAN
region and pursue other
opportunities through
mergers and acquisitions
Build a Pilmico Research &
Training Bakery in Cebu
2012
531M
2013
483M
2014
610M
2015 Outlook
W
ork towards achieving CSR 2.0, which
involvesbigger programs with sustainable
benefits, nationwide in scope,aligned to
Aboitiz core businesses, and encourage
more participation from team members.
A
chieve universal public education by
continuing to establish and develop
Aboitiz BetterWorld schools through
SSES and techvoc schools
Improve community livelihood and
employment opportunities by expanding
microfinance base
M
inimize environmental impact by
continuing to conceptualize and identify
viable programs
U
ndertake projects that address the
health and well-being of communities,
including fund drives for disaster relief
and rehabilitation efforts
2012-2013
125M
From Aboitiz Group
2013-2014
27.4M
From Partners
2015 Outlook
C
ontinue deployment of 250 more AWS
nationwide
C
onduct Weather 101 trainings with LGUs
to include module on storm-tracking
and simulation exercises on disaster risk
reduction
P
artner with SBUs in sharing expertise on
emergency response with LGUs
Continue
to build a #WeatherWiser
Nation through trainings, communication,
and partnerships.
An n ual Report
Power
2014
Generation
11
A EV Financial Highlights
A EV Financial Summary
2012
2013
2014
% Change
(2014 vs. 2013)
81,018
(58,073)
90,876
(69,653)
109,867
(85,321)
20.9%
Operating profit
Equity in net earnings of associates
Other charges
22,945
13,322
(4,210)
21,223
10,597
(4,725)
24,546
7,244
(4,199)
15.7%
-31.6%
-11.1%
32,057
(1,910)
27,095
(887)
27,591
(4,026)
1.8%
353.9%
30,147
(6,182)
26,208
(5,181)
23,565
(5,184)
-10.1%
23,965
21,027
18,381
-12.6%
40,871
36,492
38,356
5.1%
222,463
109,464
21,908
91,090
247,088
124,539
25,622
96,927
280,997
146,062
26,991
107,944
13.7%
17.3%
5.3%
11.4%
4.34
16.50
1.58
34.2%
2.57
0.97
0.45
3.81
17.55
2.00
25.3%
2.64
1.02
0.48
3.32
19.49
1.80
20.4%
2.76
1.08
0.50
-12.9%
11.1%
-10.0%
Revenues
EBITDA
109,867
2014
2013
2012
90,876
81,018
2014
2013
2012
38,356
36,492
40,871
17,945
21,006
23,424
2014
2013
2012
9,939
2014
2013
11,044
2013
8,725
21,027
23,965
2014
2012
18,381
2012
50,482
36,118
33,731
EBITDA
Financial Condition
Total assets
Total liabilities
Non-controlling interests
Equity attributable to equity holders of the parent
Ratios
Per Share (Pesos)
Earnings
Book Value
Cash dividend to common
Return on equity
Current ratio
Debt/Equity
Net debt/Equity
2013
2012
280,997
247,088
222,463
2014
2013
2012
107,944
96,927
91,090
2014
2013
2012
18,789
3,861 4,115
14,195
12,747
Food
3,244
292,383
633
273
291,883
301,218
Land
63*
2012 2013 2014
Power
71,098
62,246 67,379
Banking
25,703
26,307
22,674
Food
3,741
Land
4,544
3,695
3,733
8,559
5,505
An n ual Report
2014
Market Capitalization
Banking
2014
Equity Attributable to
Equity Holders of the Parent
Total Assets
Power
* Only the fourth quarter 2012 income contribution is reflected, following the full acquisition of AboitizLand by AEV in the same period. AboitizLand was previously owned by Aboitiz and Company.
12
13
2014
Operating revenues
Operating expenses
62,153
41,697
72,055
52,578
86,759
64,409
20%
23%
Operating profit
Share in net earnings of associates
Other charges
20,456
9,940
(4,089)
19,477
6,474
(6,014)
22,351
4,009
(4,930)
15%
-38%
-18%
26,306
1,391
19,938
527
21,430
3,424
7%
550%
24,916
(490)
19,411
(834)
18,006
(1,301)
-7%
56%
24,426
18,577
16,705
-10%
34,242
29,900
31,765
6%
163,105
80,646
1,566
80,893
193,939
102,688
3,622
87,629
216,761
120,681
4,118
91,962
12%
18%
14%
5%
3.32
10.99
1.54
40%
2.65
0.98
0.44
2.52
11.91
1.66
27%
2.87
1.13
0.52
2.27
12.50
1.66
21%
3.36
1.26
0.59
-10%
5%
0%
Income Statement
EBITDA
86,759
2014
2012
72,055
62,153
2014
2013
2012
31,765
29,900
34,242
16,841
20,124
23,702
2014
2013
2012
16,705
18,577
24,426
40,232
2014
12,215
2014
2013
12,215
2013
31,383
2012
11,332
2012
30,678
EBITDA
Financial Condition
Total assets
Total liabilities
Non-controlling interests
Equity attributable to equity holders of the parent
Ratios
Per Share (Pesos)
Earnings
Book Value
Cash dividend to common
Return on equity
Current ratio
Debt/Equity
Net debt/Equity
Income Contribution
Equity Attributable to
Equity Holders of the Parent
Total Assets
2014
2013
2012
14
216,761
193,939
163,105
2014
2013
2012
91,962
87,629
80,893
2013
2012
315,684
250,193
271,900
*AboitizPower
Generation
22,758
Market Capitalization
2014
(in GWh)
10,660 10,949
15,226
Generation
13,476
Distribution
2012
Parent &
Others
2,805
11,272
3,227
2014
Distribution
3,203
124
2013
26
3,934
4,076
4,480
2012
2013
2014
(1,138)
2012
2013
2014
An n ual Report
Revenues
2014
2013
% Change
(2014 vs. 2013)
2012
15
Chairmens Message
16
An n ual Report
2014
17
Chairmens Message
18
Succession
With the significant growth of the Groups businesses
over the past few years, coupled with our future
growth aspirations, we would like to ensure a more
seamless transition of leadership and the continued
execution of our long-term strategic plans.
In November 2014, the Board of Directors of Aboitiz
& Company, AEV, and AboitizPower announced the
deferment of the retirement of Group CEO Montxu
Aboitiz and AboitizPower President and COO Tony
Moraza to December 31, 2019. This means a threeyear extension for Montxu and a two-year extension
for Tony. We are confident that in a few years, we will
be ready for an easy handover of leadership.
Our solid corporate governance structure has largely
contributed to the success of the Group over the past
100 years, and this includes a smooth passing of the
baton to the next group of leaders.
Doing Well by Doing Good
In 2014, we further strengthened our Groups
sustainability commitment with the launching of the
Aboitiz BetterWorld campaign. It communicates our
sustainability mindset that we can do well by doing
Enrique M. Aboitiz
An n ual Report
Message of Thanks
As a final word, we thank you, our dear
shareholders, for your unwavering trust and
confidence in our company. Our deep appreciation
also goes out to all our business partners, host
communities, and customers across the country for
their invaluable partnership. We also pay tribute to
all our team members across the Aboitiz Group for
their commitment and contribution, truly driven by
the Aboitiz Passion for Better Ways.
2014
The Groups other core businesses - power, banking, food, and land are uniquely positioned to tap growth opportunities through expansion,
acquisition, greenfield development for power, innovative products, expanded
sales channels, new markets, partnerships and strategic alliances. While we
remain firmly focused on growing our businesses in the Philippines, we will
seek out strategic investment opportunities in the ASEAN region. We will
not bet the farm but aim to take prudent and deliberate steps in planning
and executing our investment plans.
19
CEOs Message
20
An n ual Report
2014
21
CEOs Message
22
Land
AboitizLand registered a 132% year-on-year growth in
its income contribution of P633 million in 2014. The
growth was mainly driven by the completion of its
acquisition of LiMA Land, higher residential sales, and
increased commercial occupancy levels. The Outlets
at Pueblo Verde achieved 100% occupancy within its
first year of operations.
Marking 20 years of building and nurturing
communities, AboitizLands sales reached new
heights as it reached the P3-billion mark, which
is 86% higher than last years performance. The
company is spending P3.7 billion mostly to build its
land bank as it continues to aggressively expand on
the national level and ensure a sustainable flow of
pipeline projects.
In 2015, our joint venture with Ayala Land will break
ground for the development of a new 15-hectare city
center in Mandaue, Cebu that will include innovative
residential, commercial, and office hubs.
Infrastructure
As your Chairmen Jon and Endika have mentioned,
we are adding infrastructure and infrastructurerelated businesses as our fifth business leg. The
Philippines needs to raise public infrastructure
spending from 2.5% to 5% of GDP to catch up with
its ASEAN neighbors. We see huge public and private
investment in this sector in the next 10-15 years, and
we want to play a significant role in it.
Despite delays in the bidding and review process
of governments Public-Private Partnership (PPP)
projects, and our experience during the CaviteLaguna Expressway project bidding, we remain
supportive of these programs. However, we intend to
go beyond dependence on PPP alone, and will pursue
selective acquisition opportunities and project
developments from scratch.
We are currently working on the necessary permits
for the Davao bulk water project, together with
our partner, J.V. Angeles Construction. This project
involves the construction of a water treatment facility
An n ual Report
Banking
UnionBanks income contribution dropped by 21%
year-on-year from P4.1 billion in 2013 to P3.2 billion
in 2014 due to the exceptionally heavy trading gains
earned in 2013. On the other hand, netting out the
impact of trading gains, the bank actually performed
strongly during the year, with net interest income
growing by 20% to P10.6 billion in view of the robust
expansion in average earning assets.
2014
23
CEOs Message
Mission
24
Grow the
Business
Integrity
Stakeholder
Engagement
Teamwork
Build Human
Capital
Innovaon
Execuon
Excellence
Responsibility
Message of Thanks
On a personal note, I would like to thank the Board
of AEV and AboitizPower for their guidance and for
entrusting me to continue to lead as your Group CEO
until 2019, which means a three-year deferment of
my retirement.
With our strategic plans well laid out, exciting times
are certainly ahead of us, and I look forward to
leading and working with you through our continuing
journey of further growth.
Thank you to all our fellow team members
who constantly inspire us with their hard work,
commitment, and contributions to the Groups
Erramon I. Aboitiz
An n ual Report
Core Values
2014
Strategic Pillars
25
60
(projected)
26
25
2011
18
25
31
Stephen G. Paradies
An n ual Report
2014
27
Shareholder Value
Earnings and Dividends
(in Php billions)
23.96
21.24
21.03
8.73
8.73
2011
2012
Earnings
18.38
11.04
Dividends
9.94
*Amounts paid in
succeeding year
2014
2013
2.00
1.58
1.80
Dividend per Share
(in pesos/share)
1.11
3.3%
3.4%
Dividend Yield*
*Yields are computed by
dividing DPS by the closing
price of declaration date
3.0%
1.9%
2012
2013
28
High
Low
2014
61.50
48.90
2013
60.30
40.00
2012
54.80
40.20
AEV
-3%
10%
PSEi
23%
10%
0% 46%
(1 year)
(5 year)
An n ual Report
Year
Year
2015
2014
2014
29
Year-End 2012
30
With Off-taker
Generation Based
1,305 MW
With Off-taker
Capacity Based
381 MW
Without Off-taker
605 MW
With Off-taker
Generation Based
253 MW
26%
17%
Year-End 2014
57%
With Off-taker
Capacity Based
1,682 MW
Without Off-taker
273 MW
12%
12%
76%
Manuel R. Lozano
An n ual Report
2014
31
Shareholder Value
Earnings and Dividends
(in Php billions)
24.43
21.63
18.58
11.33
9.71
2011
2012
16.71
12.22
12.22
Earnings
Dividends
*Amounts paid in
succeeding year
2014
2013
1.66
1.54
1.66**
1.66
4.3%
4.1%
2012
2013
32
High
Low
2014
42.90
33.90
2013
39.95
31.00
2012
37.50
28.75
4.0%
2014
3.7%
2015
Year
Year
Dividend Yield*
AboitizPower
26%
4%
PSEi
23%
10%
30% 42%
(1 year)
(5 year)
Power Generation
AboitizPower currently generates electricity
from coal, geothermal, oil, and hydro power,
and recently forged a partnership to develop
its solar energy capability.
Power Distribution
AboitizPower delivers electricity through its
distribution utilities VECO, Davao Light,
Cotabato Light, SFELAPCO, Subic EnerZone,
Mactan EnerZone, Balamban EnerZone and
LiMA EnerZone.
RES
1
2
Power Generation
Transmission
Power Distribution
5
4
Customers
Contestable Customers
36
Antonio R. Moraza
President and COO
Results of Operations
AboitizPower recorded a consolidated net income of P16.7
billion in 2014, a 10% decline from P18.6 billion in 2013. This
translated to an earnings per share of P2.27 compared to P2.52
in 2013. Core net income for 2014 amounted to P16.8 billion,
down by 16% from the previous year.
(in Php millions)
% change
Consolidated
2012
2013
2014
Revenues
62,153
72,055
86,759
20%
EBITDA
34,242
29,900
31,765
6%
Net Income
24,426
18,577
16,705
-10%
23,702
20,124
16,841
-16%
Beneficial
2012
2013
2014
Revenues
90,639
92,624
100,948
9%
EBITDA
36,530
33,025
32,615
-1%
% change
An n ual Report
The Tudaya 2 hydropower plant generates 7 MW of clean renewable energy for the
Davao del Sur Electric Cooperative that delivers power to the Mindanao grid.
2014
37
Large Hydro
Geothermal
Run-of-River Hydro
38
Power Generation
(Beneficial)
2012
2013
2014
Revenues
62,539
58,836
58,409
-1%
EBITDA
32,121
27,999
27,041
-3%
Income Contribution
22,760
15,226
13,476
-11%
% change
An n ual Report
AP Renewables, Inc.s Tiwi geothermal facility in Albay is a key source of clean and renewable geothermal energy in the country.
2014
39
Coal
Oil
Hydro
463 MW
Renewable
893 MW
Geothermal
430 MW
Coal
828 MW
NonRenewable
1,357 MW
A boit iz P ower Corporati on
Oil
529 MW
The 300-MW Therma South baseload plant, which utilizes modern circulating fluidized bed technology, is expected to come online in 2015.
40
Plant Name
Net
Sellable
Capacity
(MW)
%
Ownership
Attributable
Net Sellable
Capacity
(MW)
Management
Company
Offtaker
Ambuklao
105
50
52.5
SNAP Benguet
WESM
Bakun
70
100
70
Luzon Hydro
Benguet 1-11
37.5
100
37.5
Hedcor
Binga
125.8
50
62.9
SNAP Benguet
WESM / NGCP
Davao 1-5
4.5
100
4.5
Hedcor
Davao Light
Magat
360
50
180
SNAP Magat
WESM / Coops /
NGCP
Sibulan
49
100
49
Hedcor Sibulan
Davao Light
Tudaya
100
Hedcor Tudaya
DASURECO
Tiwi-MakBan
390
100
390
APRI
WESM / Bilaterals
ULGPP
40
100
40
AESI
Mindanao
210
34
71.4
STEAG State
Power
Pagbilao
700
100
700
TLI
IIPA (2025) /
Bilaterals / WESM
Toledo
216
26
56
CEDC
Bilaterals
Cebu
66
60
39.6
CPPC
VECO
Cotabato
6.5
100
6.5
Cotabato Light
Cotabato Light
Davao
38
100
38
Davao Light
Davao Light
General
Santos
55
20
11
SPPC
Mactan
43
50
21.5
EAUC
MEPZ I
Mobile 1
96
100
96
Therma Marine
Bilaterals
Mobile 2
96
100
96
Therma Marine
Bilaterals
Mobile 3-6
200
100
200
Therma Mobile
Bilaterals
Zamboanga
100
20
20
WMPC
3,015
2014
An n ual Report
AboitizPowers portfolio of generation assets accounts for 15% of the countrys installed generation capacity
2,250
41
2012
2013
2014
Davao Light
7.50%
7.87%
5.66%
Cotabato Light
9.50%
8.32%
8.26%
VECO
8.90%
7.79%
7.83%
SFELAPCO
2.06%
8.74%
5.84%
Subic EnerZone
4.40%
4.11%
3.51%
Mactan EnerZone
1.10%
1.05%
1.09%
Balamban EnerZone
1.60%
1.44%
0.99%
LiMA EnerZone
Davao Light employs skilled linemen to work on
its electric poles.
2.48%
42
Power Distribution
(Beneficial)
2012
2013
2014
Revenues
27,726
29,093
32,258
11%
EBITDA
4,554
5,270
5,480
4%
Income contribution
2,795
3,227
3,203
-1%
2012
2013
2014
3,934
4,076
4,480
10%
964
1,026
1,102
7%
% change
An n ual Report
% change
VECO engineers inspect a TR4 transformer in Cebu. The distribution utility ensures that its facilities and
equipment are always well maintained to provide customers with reliable service.
2014
43
44
Justo A. Ortiz
Results of Operations
46
An n ual Report
2014
2014 was a very challenging year for UnionBank and the entire
banking industry, characterized by the continued compression of
net interest margins and tighter regulatory oversight. UnionBank
and its subsidiaries recorded a net income of P6.9billion from
the P9.0 billion registered in the previous year. This translated to
lower profitability ratios: return on average equity at 15.3% and
return on average assets at 1.7%, albeit better than the industrys
10.8% and 1.3%, respectively. Revenue-to-expense ratio was
maintained at 2.0x, cementing the Banks position as among the
industrys least-cost producers.
47
% change
2013*
2014**
3,331.4
519.6
4,115.0
3,244
-21%
7.3
1.4
8.9
10.6
20%
UnionBank
CitySavings
119.7
13.1
142.1
139.4
-2%
UnionBank
CitySavings
189.8
8.8
298.2
311.1
4%
UnionBank
CitySavings
0.3%
1.6%
-0.3%
0.6%
17.5%
26.2%
18.3%
15.3%
3.1%
3.4%
2.6%
1.7%
2012
Banking
48
2015 Outlook
*On March 21, 2013, the Monetary Board of Bangko Sentral ng Pilipinas (BSP) approved UnionBanks acquisition of CitySavings.
**Measure in terms of Philippine Accounting Standards 39 Financial Institute, consistent with AEVs use of that standard.
50
Results of Operations
In 2014, Pilmico and the Aboitiz Group officially entered the
ASEAN market with Pilmico International successfully acquiring a
70% equity stake in Vietnamese aqua feeds producer Vinh Hoan
1 Feed JSC (VHF). The remaining 30% stake will be bought in the
next five years at an agreed preset price. Total investment cost in
VHF amounts to US $28 million. The company also established a
representative office in Indonesia.
On the local front, Pilmico made strides in being partners for
growth with a series of projects.
With the farms backyard segment experiencing a drop in its
sow inventory, the company took the opportunity to support
backyard farmers through an advocacy program that aims to
ensure sustainability in their farms.
Mahalin Pagkaing Atin was initially launched in disaster-stricken
areas of Leyte, Cebu, Bohol. Its goal is to go beyond rehabilitation
and start livelihood programs for backyard farmers. For this
campaign, a total of 100 egg machine kits were distributed
in Leyte province to encourage farmers to engage in poultry
An n ual Report
Sabin M. Aboitiz
Pilmico will advance efforts to further gain market share in the flour industry by exporting to the ASEAN region, opening a
Pilmico Research & Training Bakery in Cebu, and building its own commissary.
2014
51
The last two years saw the expiration of the income tax
holidays of Iligan Feed Mill 1 & 2 with the bulk of the
impact felt in 2014. This resulted to P108 million in taxes
paid in 2014, effectively dragging net income lower.
52
% change
Food
2012
2013
2014
Revenues
15,700
16,426
20,020
22%
EBITDA
2,054
2,059
2,311
12%
Income Contribution
1,299
1,256
1,307
4%
Andoni F. Aboitiz
President and CEO
In 2014, AboitizLand residential sales grew by 15% driven by its high-end projects such as Pristina North Residences 2 and
Priveya Hills Phase 3, as well as a strong interest in The Persimmon Studios.
Results of Operations
Over the past two decades, AboitizLand has gone through a
fulfilling journey, delivering dream homes and business offices
to more than 3,000 vecinos, merchants, and locators.
54
An n ual Report
2014
55
Feature
2013
2014
Revenues
1,760
3,270
86%
EBITDA
389
698
79%
Income Contribution
273
633
132%
2015 Outlook
15% vs 2013
Residential
Revenue
5-yr CAGR at
Residential Sales up by
56
% change
Land
16%
Job Opportunities
provided to over
60,000 people
A strong performance by the companys commercial unit is credited in part to The Outlets at Pueblo Verde, which
achieved 100% occupancy within the first six months of operations.
Biofuel: Aseagas
Aseagas Corporation was established to build
plants that would produce renewable energy
from societys organic waste.This energy yields
fuel for motor vehicles and generates power
from renewable biogas.By-products from biogas
production include carbon dioxide (CO2) and
fertilizer.The company receives CDM (Clean
Development Mechanism) credits from the
reduced carbon emission resulting from the
process.
Its first production plant is located in Lian,
Batangas and the original goal was to produce
fuel in the form of liquefied bio-methane or
bio-liquefied natural gas. However, the current
global environment of lower fuel prices has made
the fuel environment very challenging, thus the
company is exploring the best use for biogas. At
this time, alternatives include pursuing power
generation and registering operations under the
feed-in-tariff of the Department of Energy.Plant
construction has begun and completion is
expected by year-end 2015.
An n ual Report
2014
57
Aboitiz Foundation
The Aboitiz Group allocated a total of P610 million for CSR Projects.
Education received the biggest allocation of P437 million, with the Foundation spending P200 million for
the rehabilitation of schools in the Visayas.
Education
404,154
Enterprise
Development
29,511
Enterprise
Development
24,552
2%
5%
84%
67%
total Php483M
72%
16%
16%
Luzon
154,792
58
Visayas
356,675
25%
Education
32,811
58%
Area
26%
Enterprise
Development
4,959
Environment
5,965
Mindanao
98,638
total Php610M
17%
Visayas
322,944
16%
Mindanao
78,353
Environment
8,839
21%
Environment
14,804
5%
Luzon
82,073
9%
4%
5%
Luzon
72,719
16%
Visayas
33,731
Mindanao
20,285
65%
total Php127M
27%
57%
An n ual Report
Education
436,965
2%
Area
2014
59
Aboitiz Foundation
Over half of the Foundations beneficiaries in 2014 were recipients of education-related projects such as school
buildings, classrooms, and facilities that provide a better learning environment.
60
1,670 computers
833 classrooms
client
979 thin
systems
26,540 scholars
In 2014, the Foundation turned over 42 Silid
Pangarap classrooms built in partnership with the
Aklat, Gabay, Aruga Tungo sa Pag-angat at Pag-asa
(AGAPP) Foundation. It also approved the construction
of 27 SSES and tech-voc classrooms, and supported
3,297 scholars across the country.
An n ual Report
2014
61
Aboitiz Foundation
Environment
More than 18,000 students were brought back to the comfort and safety of their classrooms as the foundation
fulfilled its promise of rehabilitating 272 classrooms in North Cebu after Yolanda.
62
Enterprise Development
Community engagement is an essential part of CSR
that is why the Foundation constantly empowers
beneficiaries in creating a better future for themselves.
Through the Aboitiz Business Assistance and
Guidance (ABAG) program, it assists small enterprising
organizations nationwide earn additional income by
providing them access to livelihood opportunities, and
capability building training.
In 2014, over P14-million worth of loan packages
were granted to cooperatives. About P2.8 million
was allocated for capability-building activities and
450
microfinance loan packages
An n ual Report
15
cooperative training
centers
Hawksbill turtle hatchlings swim for the first time after emerging from the marine turtle
sanctuary at the Aboitiz Cleanergy Park in Davao City.
2014
63
WeatherPhilippines Foundation
Location of AWS deployed
in the Philippines
Building a
#WeatherWiser Nation
Strategic Pillars
64
750 AWS
deployed nationwide
441 Luzon
186 Visayas
123 Mindanao
Partnerships
WeatherPhilippines continuously strengthens and
expands its partnerships with various organizations
to sustain its operations and to implement
initiatives in weather education and proactive
disaster preparedness.
total
568 partners
5 Platinum Donors
18 Gold Donors
11 Service Partners
534 Site Partners
An n ual Report
WeatherPhilippines commits to partner with the Philippine Disaster Recovery Foundation (PDRF) to strengthen the role of business in
building the nations disaster preparedness, response and resiliency.
2014
65
WeatherPhilippines Foundation
Sustainability
860
total number
Embedding Sustainability
#WeatherWiser Nation
435
total number of
of Disaster Risk
LGUs trained
Reduction Officers
80 provinces
trained
170
240 cities
450 municipalities
provinces
128 cities
227 municipalities
Communications
Aside from localized weather information, weather.
com.ph provides a 5-day forecast, as well as national
weather news and updates. It also has Weather TV,
and a Weather Dictionary. Updates are also available in
its Facebook and Twitter accounts.
Severity Matrix
WeatherPhilippines uses the severity matrix to simplify weather alerts and warnings issued during severe
weather conditions. This color-coded system is based on World Meteorological Organization (WMO) standards.
66
An n ual Report
2014
67
Sustainability
Focus Areas and Metrics
To drive sustainability throughout its business, Aboitiz focuses on three key areas based on the triple bottom line
approachpeople, planet, and profitwhere it believes it can make the greatest difference to the Group and its
stakeholders. This framework is used to set targets, improve performance, and extend the scope of the value it creates.
Objectives
PLANET
Goal: Minimize the environmental impact
of the business
68
PROFIT
Corporate Social
Responsibility
Disaster
Resilience
and
Preparedness
Customer Focus
Provide a commercially
sustainable customer
experience
Carbon Emissions
Reduction
Resource
Efficiency
Manage resources
efficiently
Waste
Management
Renewable
Energy (RE)
Reuse and
recycle
1,301
Total number
of hatchlings
released
77%
Average
hatching rate
9.0 million
3.4 million
2.9 million
2.7 million
An n ual Report
Financial Return
Grow profitably
Financial Growth
2003-2012
2013
2014
2020 Target
2014
PEOPLE
Team Member
Engagement
& Development
69
Sustainability
268
total of enrolled
facilities
271,746 mWh
332,892 mWh
2013
2014
832,945 cu.m.
687,135 cu.m.
2013
2014
70
40%
Savings
2.4
44%
Savings
2.3
1.5
2013
Biogas
Production, kWh
1.8
2014
Purchased Electricity,
kWh
Enterprise Development
Pilmicos Mahalin Pagkaing Atin Program
Mahalin Pagkaing Atin is a campaign launched by
Pilmico in partnership with Terra Firma and the local
government of Leyte. It aims to promote sustainable
entrepreneurship through the promotion of locally
grown produce and instill a pride of product, pride
of place mindset for both the farmers and local
consumers.
Under the Aboitiz Groups Wealth on Waste Program, projects like the
Green Fashion Revolution help to raise awareness on the 3Rsreduce,
reuse, recycleamong the youth.
An n ual Report
2014
71
Sustainability
2015 Plans
72
More than just being a successful enterprise, Aboitiz Equity Ventures (AEV) and its business units are committed
towards constantly striking a triple balance of people, planet, and profit.
In its core businesses of power, banking, food, and land, the organization and its team members serve countless
people during the daily course of operations across the country. They all share a goal to touch and enrich lives,
help stakeholders attain a better future, and collectively care for the one planet that sustains us all.
The Group is committed to making Aboitiz a truly sustainable enterprise that can be entrusted to future
generations.
Stakeholder
Power
Food
Provide employment
Team Members
Community
Customers
Suppliers
Pay taxes
Government
Compliance to environment
and regulatory requirements
Regulators
General Public
Pay dividends
Shareholders
Banking
Land
2015 Capital
Expenditures
An n ual Report
2014
73
Corporate Governance
74
An n ual Report
The Aboitiz Way is an all-encompassing corporate governance mindset that recognizes and believes in:
2014
75
Corporate Governance
Rights of Shareholders
76
Role of Stakeholders
An n ual Report
2014
77
78
Comply
Aboitiz Equity
Ventures, Inc.
Aboitiz Power
Corporation
ATTRACT
RETAIN
OPTIMIZE
Build Organizational
Capability through
Leadership
Development and
Competency Building
Stimulate Talent
Engagement through
an Inspiring Aboitiz
Culture
An n ual Report
Talent Management
2014
Corporate Governance
79
Talent Management
1
2
3
80
4
5
6
76%
48%
Replacement Strategy
51%
25%
30%
70%
75%
2012
2013
2014
Internal
Homegrown
External
External
An n ual Report
2014
81
Risk Management
To protect and ensure the long-term sustainability of all of their initiatives, HR has embarked on measuring
and managing human capital risk. Group HR has gone through the rigorous exercise of risk management by
identifying, assessing, and mapping out the human resource risks across the Group and coming up with a
treatment for each identified risk.
HR is also poised to take a hard and honest look at their operations, systems, and processes with the goal of
becoming best in class. To do this, the team has turned to renowned HR experts and engaged Aon Hewitt
to conduct a full-blown audit of the Aboitiz HR practices and procedures from both the tactical and the
strategic angles. The whole process took place in three months as 14 different areas of people practices
were thoroughly examined. Each of these people practices fall under five key HR pillars:
Compelling
Employer
Brand
HighPerformance
Culture
Employee
Value
Proposition
Performance
Management
Workforce
Planning
Recruitment &
On-Boarding
Rewards &
Recognition
Learning
Development
Career
Management
Effective
Leadership
High Employee
Engagement
Efficient &
Effective HR
Organization &
Delivery
People
Manager
Development
Employee
Engagement
HR
Effectiveness
Employee
Health &
Wellness
HR
Development
High Potential
Development
Leadership
Development
& Succession
Planning
82
The results are both inspiring and challenging. The HR team has their work cut out for them in the next few
years as they polish and refine processes to ultimately achieve best practice level. One thing is certain for
Aboitiz HR: they will be moving with passion toward better ways as one HR team, aiming only to achieve HR
excellence for the organization.
Governance
An established governance structure that supports
the risk management process across the Group
Risk Finance
A risk finance strategy and program to achieve an
acceptable balance of retaining and transferring
risks
Capability Building
A continuous education and training program that
builds organization capability, raises awareness,
and enhances the Groups understanding of
managing and measuring risk
2.7
3.3
3.9
TOP
15
of all global
respondents
Dec
2011
Mar
2013
Sept
2014
An n ual Report
2014
Talent Management
83
Risk Management
Process and
Integration
POWER
BANKING
FOOD
LAND
Risk Quantification
Integration Risk Management with Key Internal and External Process
Risk Finance
GENERATION
Capability
Building
DISTRIBUTION
VISAYAN ELECTRIC
COMPANY, INC.
55.25% (D)
SUBIC ENERZONE
CORPORATION
65.00% (D)
99.98% (B)
Ongoing/Upcoming 2015
84
HEDCOR, INC.
100.00% (B)
AP RENEWABLES, INC.
100.00% (B)
HEDCOR SABANGAN,
INC. 100.00% (B)
CLEANERGY, INC.
100.00% (B)
RES/OTHERS
PILMICO ANIMAL
NUTRITION
CORPORATION
100.00% (D)
REDONDO PENINSULA
ENERGY, INC. 25.00% (B)
ARCHIPELAGO INSURANCE
PTE. LTD.
100.00% (D)
PILMICO INTERNATIONAL
PTE. LTD. 100.00% (B)
APO AGUA
INFRASTRUCTURA
70.00% (D)
MANILA-OSLO RENEWABLE
ENTERPRISE, INC. 83.33% (B)
TAGOLOAN HYDRO
CORPORATION
100.00% (B)
ASEAGAS CORPORATION
100.00% (D)
FILAGRI, INC.
100.00% (B)
OTHERS
An n ual Report
Governance
SN ABOITIZ POWER
BENGUET, INC. 60.00% (D)
SN ABOITIZ POWER
GENERATION, INC. 60.00% (D)
2014
Pillars
Corporate Structure
85
Erramon I. Aboitiz
Roberto E. Aboitiz
Enrique M. Aboitiz
86
Justo A. Ortiz
Antonio R. Moraza
Director
Director
An n ual Report
Director
Director
Director
Jose C. Vitug
Independent Director
Stephen T. CuUnjieng
Independent Director
Raphael P. M. Lotilla
Independent Director
2014
87
Stephen G. Paradies
Robert McGregor
Sabin M. Aboitiz
Susan V. Valdez
Melinda R. Bathan
Horacio C. Elicano
Narcisa S. Lim
An n ual Report
M. Jasmine S. Oporto
Gabriel T. Maalac
Senior Vice President
Group Treasurer
William W. Paradies
Vice President
Finance
Susan S. Policarpio
Vice President
Government Relations
2014
88
Mikel A. Aboitiz
89
Annacel A. Natividad
Joseph Y. Tugonon
Vice President
Business Development
Vice President
Treasury Services Group
Vice President
Business Development
President
Chief Operating Officer
Aboitiz Power Corporation
Justo A. Ortiz
Chairman
Chief Executive Officer
Union Bank of the Philippines
Emmanuel V. Rubio
Catalino S. Abacan
Sabin M. Aboitiz
President
Chief Executive Officer
City Savings Bank
President
Chief Executive Officer
Pilmico Foods Corporation
An n ual Report
Vice President
Tax Advisory & Compliance
Vice President
Financial Risk Management
Antonio R. Moraza
Angelita M. Azuelo
Vice President
HR Operations and Talent Retention
Andoni F. Aboitiz
President
Chief Executive Officer
Aboitiz Land, Inc.
2014
Vice President
Strategy
90
91
Roberto E. Aboitiz
Justo A. Ortiz
Jose C. Vitug
Erramon I. Aboitiz
Enrique M. Aboitiz
Antonio R. Moraza
Stephen T. CuUnjieng
Director
Director
Director
Director
Independent Director
Director
Independent Director
Independent Director
Corporate Officers
LiMA EnerZone
Erramon I. Aboitiz
Sabin M. Aboitiz
Stephen G. Paradies
Horacio C. Elicano
Mikel A. Aboitiz
Melinda R. Bathan
Robert McGregor
Susan V. Valdez
M. Jasmine S. Oporto
Senior Vice President
Chief Legal Officer
Corporate Secretary
Compliance Officer
Gabriel T. Maalac
Narcisa S. Lim
William W. Paradies
Vice President
Finance
Susan S. Policarpio
Vice President
Government Relations
Annacel A. Natividad
Vice President
Financial Risk Management
Joseph Y. Tugonon
Vice President
Tax Advisory & Compliance
Angelita M. Azuelo
Vice President
HR Operations and Talent Retention
Marilou P. Plando
Assistant Director
Business Development
Leah I. Geraldez
Catherine R. Atay
Erwin I. Jallorina
Christopher M. Camba
Ronaldo S. Ramos
Olyzza M. Oyangoren
Aylmerita C. Pealoza
Assistant Vice President
Treasury
Francis S. Cabanban
Tiwi Geothermal
MakBan Geothermal
Mobile 3-6
Magat Hydro
Subic EnerZone
SFELAPCO
Binga Hydro
Benguet Hydro 1-11
Andy G. Torrato
Bakun Hydro
Ambuklao Hydro
Pagbilao
VECO
AESI
Cebu
Mactan
Mactan EnerZone
Balamban EnerZone
Toledo
Mobile 2
Mindanao
Zamboanga
Mobile 1
Davao Light
Sibulan Hydro
Davao
Cotabato Light
92
Jose C. Vitug
Stephen T. CuUnjieng
Roberto E. Aboitiz
M. Jasmine S. Oporto
Stephen T. CuUnjieng
Member of the Committee
Independent Director
Roberto E. Aboitiz
Erramon I. Aboitiz
Justo A. Ortiz
Stephen T. CuUnjieng
Stephen G. Paradies
AdventEnergy
ULGPP
Justo A. Ortiz
General Santos
Susan V. Valdez
Ex-Officio Member
Chief Reputation Officer and
Risk Management Officer
Renewable
Non-Renewable
Sales and Retail
Distribution
An n ual Report
2014
Cotabato
93
Enrique M. Aboitiz
Erramon I. Aboitiz
Antonio R. Moraza
94
Mikel A. Aboitiz
Director
Director
An n ual Report
Vice Chairman
Director
Director
Carlos C. Ejercito
Independent Director
Romeo L. Bernardo
Independent Director
Alfonso A. Uy
Independent Director
2014
95
Erramon I. Aboitiz
Manuel R. Lozano
Manuel M. Orig
Susan V. Valdez
James J. Timko II
Alvin S. Arco
An n ual Report
Donald L. Lane
Executive Director
Business Development
M. Jasmine S. Oporto
Corporate Secretary
Compliance Officer
Executive Director
Projects
Senior Director
Business Development
Senior Director
Business Development
2014
Gabriel T. Maalac
96
Emmanuel V. Rubio
Antonio R. Moraza
97
Vice President
Customer Services
Power Distribution Group
Marco R. Carlos
Vice President
Safety, Health, Environment and Quality
Roland U. Gaerlan
Susan S. Policarpio
Yari A. Miralao
Vice President
Business Development
Artemio D. Magnayon
Vice President
Business Development
Cristina B. Beloria
Dennis A. de la Serna
Vice President
Human Resources and Quality
Vice President
Trading
Vice President
Sales and Marketing
Vice President
Business Development
Vice President
Business Development
Commercial
An n ual Report
Kenton E. Heuertz
Vice President
Controller
Vice President
Strategy, Systems and Performance
Vice President
Regulatory Affairs
Raul C. Lucero
Vice President
Engineering
Power Distribution Group
2014
Vice President
Government Relations
98
Bienamer D. Garcia
Director
Asset Management
Vice President
Chief Financial Officer
Power Generation Group
99
Erramon I. Aboitiz
Mikel A. Aboitiz
Carlos C. Ejercito
Antonio R. Moraza
Romeo L. Bernardo
Cristina B. Beloria
Clovis B. Racho
Irwin C. Pagdalian
Cherry Aquino-Javier
Director
Director
Corporate Officers
Enrique M. Aboitiz
Chairman of the Board
Erramon I. Aboitiz
Antonio R. Moraza
Emmanuel V. Rubio
Emmanuel V. Rubio
President
Chief Executive Officer
SNAP-Magat / SNAP-Benguet
President
Chief Operating Officer
Therma Luzon, Inc. / Therma South, Inc.
Rene B. Ronquillo
President
Chief Operating Officer
Hedcor Group
Donald L. Lane
Executive Director
Business Development
M. Jasmine S. Oporto
Corporate Secretary
Compliance Officer
Gabriel T. Maalac
President
Chief Operating Officer
AP Renewables, Inc.
President
Chief Operating Officer
Therma Marine, Inc. / Therma Mobile, Inc.
Sebastian R. Lacson
Alvin S. Arco
James J. Timko II
Senior Director
Business Development
Kenton E. Heuertz
Vice President
Strategy, Systems and Performance
Dennis A. de la Serna
Vice President
Regulatory Affairs
Anne S. Jimenez
Roberto V. Orozco
Marco R. Carlos
Vice President
Safety, Health, Environment and Quality
Roland U. Gaerlan
Vice President
Sales and Marketing
Arazeli L. Malapad
Consuelo D. Labao
Paquita S. Tigue-Rafols
Vice President
Human Resources and Quality
Artemio D. Magnayon
Rowena V. Romero
Katrina M. Platon
Vice President
Business Development
Head
IT Facilities Group
Gil G. Cardiel
Carlo P. Cruz
Raul C. Lucero
Vice President
Government Relations
Vice President
Engineering
Power Distribution Group
Vice President
Business Development
Yari A. Miralao
Vice President
Business Development
Raizza L. Manuel
Lemuel P. Quilos
Head
Business Solutions Group
Bienamer D. Garcia
Susan S. Policarpio
Independent Director
Director
Asset Management
Susan V. Valdez
Vice President
Controller
Independent Director
Vice President
Customer Services
Power Distribution Group
Manuel R. Lozano
Director
Alfonso A. Uy
Independent Director
Vice President
Business Development
Commercial
Felino M. Bernardo
Manuel M. Orig
Director
Benedick M. Salvador
100
Xavier J. Aboitiz
Ex-Officio Member
SVP - Chief Human Resources Officer AEV
Erramon I. Aboitiz
Romeo L. Bernardo
Alfonso A. Uy
Ex-Officio Member
Compliance Officer
Romeo L. Bernardo
Alfonso A. Uy
Antonio R. Moraza
Mikel A. Aboitiz
Arturo M. Milan
Rodger S. Velasco
Dante T. Pollescas
Enrique M. Aboitiz
Antonio R. Moraza
Mikel A. Aboitiz
Carlos C. Ejercito
Alfonso A. Uy
Manuel R. Lozano
Ex-Officio Member
Chief Financial Officer
Susan V. Valdez
Ex-Officio Member
Chief Reputation and Risk Management Officer
An n ual Report
M. Jasmine S. Oporto
2014
101
Erramon I. Aboitiz
Susan V. Valdez
102
Andoni F. Aboitiz
Trustee
Trustee
An n ual Report
President / Trustee
Sabin M. Aboitiz
Trustee
Stephen G. Paradies
Treasurer / Trustee
Antonio R. Moraza
Trustee
2014
Chairman
103
Board of Advisers
Enrique M. Aboitiz
Sabin M. Aboitiz
Dennis Schulze
Chairman
Susan V. Valdez
President / Trustee
Danel C. Aboitiz
Adviser
Management
Treasurer / Trustee
Trustee
Hans T. Sy
Independent Trustee
104
An n ual Report
2014
Augusto P. I. Carpio
105
Ana Aboitiz-Delgado
Liza B. Silerio
Adviser
Genaro V. Lapez
Adviser
Dennis G. Zamora
Adviser
Adviser
Management
106
Membership
As of December 31, 2014, the Board Audit Committee is composed of five (5) members, three (3) of whom are independent directors.
Jose C. Vitug, a retired Justice of the Supreme Court (Independent Director) Chair of the Committee is ably assisted by Atty. Raphael
P. M. Lotilla (Independent Director), Stephen T. CuUnjieng (Independent Director), Justo A. Ortiz (Executive Director) and Roberto E.
Aboitiz (Non-Executive Director).
Meetings
There were four (4) regular Committee meetings held during the yearMarch 4, May 6, July 22 and October 28one (1) special
meeting on July 30, and two (2) joint meetingsJune 2 and Dec 11with the Board Risk and Reputation Management Committee.
Also present in these meetings is the Group Internal Audit Head, the Chief Reputation and Risk Management Officer, and by invitation,
the AEV Chief Financial Officer and the AEV Controller.
Financial Reports
On a high level basis, the Committee reviewed, discussed, and endorsed for the approval of the Board the quarterly unaudited
consolidated financial statements and the annual audited financial statements of Aboitiz Equity Ventures, Inc., and its Subsidiaries.
Included in the review are the Management Discussion and Analysis of Financial Condition and Results of Operations after these have
been presented and discussed with management, accounting and the companys independent external auditor, SyCip Gorres Velayo &
Co. (SGV)a member practice of Ernst & Young (EY) in the Philippines.
The activities of the Audit Committee were performed in the following context:
That management has the primary responsibility for the financial statements and the financial reporting process; and
T hat the companys independent external auditor is responsible for expressing an opinion on the conformity of the Companys
audited financial statements with Philippine Financial Reporting Standards.
Independent Auditors
On July 22, 2014, the Board Audit Committee endorsed the re-appointment of SyCip Gorres Velayo & Co. (SGV) as the independent
external auditor for the company. The overall scope and audit plan of SGV were reviewed and approved during the October 28, 2014,
regular Board Audit Committee meeting. The terms of engagement which covers audit-related services provided by SGV and its related
fees were also reviewed and found to be reasonable.
The results of the SGV audits and its assessment of the overall quality of the financial reporting process were discussed. SGV presented
the effects of changes in relevant accounting standards and presentation of financial statements that impact on the reported results.
These matters were covered during the first Board Audit Committee meeting held the following year on March 5, 2015.
The delegation to the Board of Directors of the appointment of the Companys external auditor was made upon the recommendation
of the Board Audit Committee.
108
Also, in the review of non-audit services provided by independent auditors, the Committee unanimously concurred/ratified the
opinion that there is no conflict of interest and that the work that Ernst & Young (Indonesia) have been contracted to do for the
Company is compatible with the general standard of independence for auditors imposed by relevant regulations.
Internal Auditors
The Group Internal Audit (GIA) takes the lead in setting the standards, initiatives and overall direction of the group-wide resident
internal audit teams deployed to the different business units. It remains to be the single point of contact for the Board Audit
Committee. The restructuring of the internal audit organization has proven to be a worthwhile endeavour as the scope and coverage of
audits have increased with resident audit teams being able to specialize in areas of business covered by their teams.
The Committee reviewed and approved the annual audit program for the year which also covers the adequacy of resources,
qualifications and competency of the staff and independence of the internal auditor.
With reference to the IPPF Attribute Standard 1100 which states that The Internal Audit Activity must be independent, and internal
auditors must be objective in performing their work, the Committee confirms that the internal auditors conducted its responsibilities
objectively and in an unbiased manner. The Committee further confirms that, to the best of its knowledge and belief, the auditors
have no personal or other impairments that prevent them from objectively planning, conducting, reporting, or otherwise participating
and reaching independent conclusions in the audit assignments in 2014. Internal audit is organizationally positioned to be
independentadministratively reporting to the President and Chief Executive Officer and functionally reporting to the Board Audit
Committee.
Based on the information from the results of the audits conducted in 2014 for Aboitiz Equity Ventures, Inc., its subsidiaries and
alliances, with the contribution provided by management and other key leaders on the issues raised to their attention, Internal Audit
believes that, overall there is reasonable assurance that the existing system of internal controls allows for a generally adequate
management of identified risks and effectively supports the improvement of the management of the Company as a whole.
Review of the Audit Charter
The Committee reviewed and assessed the current audit charter in its meeting held October 29, 2014 and found it adequate. No
modification were found to be needed.
Self-Assessment
The Committee conducted its annual self-assessment in accordance with the guidelines of SEC Memo Cir. No. 4, series of 2012. The
assessment result showed that it fully complied with the requirements set forth in the Audit Charter and met the necessary and most
important requirements set by global standards and best practices.
Risk Management
The Committee had two (2) joint meetings with the Board Risk and Reputation Management Committee in 2014 where the updated
results of the Risk Management Plan validation conducted by GIA, and the resident audit teams were presented. Considering the
dynamic nature of risks, this closed-looped process from risk identification to risk treatment validation should be ongoing and
continual in order to ensure that risk treatment activities that the business units commit to do are being done. The ultimate value of
this process is to assist the business units in enhancing their capability to manage and monitor its top risks.
It is in the joint meetings that the members of the Audit Committee are apprised of the top key strategic risks consequential to the
Companys ability to execute its strategies and achieve its business objectives for the following year. High-level risk exposures are
presented and discussed as these issues can affect shareholder value and ultimately the viability of the company. The significant
potential impact of these strategic risks warrants a more focused attention from the board and its directors.
As in previous years, the Committee continues to monitor action plans and commitments developed by management to address audit
issues and to ensure that proposed solutions are workable, strategic and sustainable.
Finally, the Committee has undertaken its activities to see to it that it continues to deepen its focus on the integrity of financial
reporting, effectiveness of internal controls, risk management, governance and compliance within the Aboitiz Power group of
companies.
In behalf of the Committee,
Jose C. Vitug
(Retired Justice, Supreme Court/Independent Director)
Chairman
An n ual Report
The Board Audit Committees roles and responsibilities are embodied in the Board Audit Committee Charter approved by the Board of
Directors. Its primary function is to provide assistance to the Board in fulfilling its oversight responsibility to the shareholders relating
to: (a) the quality and integrity of the Companys accounting, auditing, legal, ethical and regulatory compliance; (b) risk management;
(c) financial reporting practices; and (d) corporate governance. Any proposed changes to the Audit Committee Charter are referred to
the Board for approval.
All technical audits related to information systems and technology are handled by the group internal auditors until such time that
competencies to handle such audits can be transferred to the resident audit teams. Focus areas reviewed in 2014 include information
technology general controls and software applications reviews.
2014
109
Statement of Managements
Responsibility for Financial Statements
SEC FORM 20 - IS (INFORMATION STATEMENT)
166
110
An n ual Report
STEPHEN G. PARADIES
Senior Vice President - Chief Financial Officer
Signed this 10th day of March, 2015.
2014
ERRAMON I. ABOITIZ
President & Chief Executive Officer
167
111
-2Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of Aboitiz Equity Ventures, Inc. and Subsidiaries as at December 31, 2014 and 2013,
and their financial performance and their cash flows for each of the three years in the period ended
December 31, 2014 in accordance with Philippine Financial Reporting Standards.
SYCIP GORRES VELAYO & CO.
112
168
An n ual Report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
169
2014
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
113
Consolidated
Balance Sheets
ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES
December 31
2014
2013
=P50,481,566
16,639,775
7,664,499
53,500
4,041,372
78,880,712
=36,118,190
P
17,122,945
8,759,165
30,900
3,900,052
65,931,252
Noncurrent Assets
Trade receivables - net of current portion (Note 5)
Investments and advances (Note 10)
Property, plant and equipment (Notes 13 and 19)
Land and improvements (Note 13)
Investment properties (Notes 14 and 29)
Intangible asset - service concession rights (Note 15)
Available-for-sale (AFS) investments (Note 3)
Net pension assets (Note 30)
Derivative asset - net of current portion (Note 36)
Deferred income tax assets (Note 31)
Goodwill (Notes 9 and 12)
Other noncurrent assets (Notes 8 and 16)
Total Noncurrent Assets
292,414
52,267,310
126,203,724
1,970,211
4,441,417
3,400,354
64,244
133,882
59,044
350,005
1,550,106
11,383,133
202,115,844
405,544
47,906,352
112,721,907
2,041,356
3,940,854
3,663,275
64,980
99,996
610,314
1,334,878
8,367,367
181,156,823
P
=280,996,556
P
=247,088,075
=7,343,700
P
=3,959,509
P
2,907,302
1,216,469
40,000
40,000
1,971,739
15,631,565
694,604
28,588,910
780,905
18,499,480
444,290
23
24,940,676
TOTAL ASSETS
114
172
(Forward)
An n ual Report
We have audited in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Aboitiz Equity Ventures, Inc. and Subsidiaries included in this Form 17-A and have
issued our report thereon dated March 10, 2015. Our audits were made for the purpose of forming
an opinion on the basic financial statements taken as a whole. The schedules listed in the Index to
Financial Statements and Supplementary Schedules are the responsibility of the Companys
management. These schedules are presented for purposes of complying with the Securities
Regulation Code Rule 68, as amended (2011) and are not part of the basic financial statements.
These schedules have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, fairly state in all material respects the financial data
required to be set forth therein in relation to the basic financial statements taken as a whole.
Current Assets
Cash and cash equivalents (Note 4)
Trade and other receivables (Note 5)
Inventories (Note 6)
Derivative asset (Note 36)
Other current assets (Notes 7 and 8)
Total Current Assets
173
2014
115
-2-
in Thousands,
Except
Per Share Amounts)
(Amounts(Amounts
in Thousands,
Except Earnings
Per Earnings
Share Amounts)
December 31
2014
2013
Non-controlling Interests
Total Equity
A boit iz Equi ty Vent ures , In c.
116
=P54,421,858
34,984,519
223,865
465,104
5,418,458
2,008,669
1,370,814
704,640
99,597,927
124,538,603
5,694,600
6,911,044
5,694,600
6,110,957
5,376,176
5,376,176
469,540
(1,577,075)
469,540
(1,262,862)
14,627
35,533
7,881
(14,534)
(708,448)
(857,602)
(315,444)
(156,925)
(277,293)
(295,546)
(1,496,305)
94,995,596
(1,178,397)
107,944,154
26,990,810
134,934,964
(3,403,534)
86,554,345
(1,295,163)
96,927,333
25,622,139
122,549,472
P
=280,996,556
P
=247,088,075
=P86,136,648
17,862,179
3,267,741
1,878,236
252,028
470,458
109,867,290
=71,810,961
P
15,125,115
1,760,573
1,306,475
714,428
158,742
90,876,294
=61,837,754
P
14,506,723
237,553
1,181,061
416,387
2,202,204
636,118
81,017,800
50,870,515
14,722,760
17,383,920
2,235,576
108,789
85,321,560
42,357,799
13,300,399
12,844,466
1,078,392
71,755
69,652,811
31,893,729
12,686,202
12,439,203
187,029
776,187
90,193
58,072,543
OPERATING PROFIT
Share in net earnings of associates (Note 10)
Interest expense (Notes 22, 34 and 35)
Interest income (Notes 4, 34 and 35)
Other income - net (Notes 29 and 34)
24,545,730
7,244,241
(6,696,445)
591,136
1,906,530
21,223,483
10,596,577
(5,748,235)
481,461
541,503
22,945,257
13,322,144
(7,571,446)
1,008,811
2,352,476
27,591,192
27,094,789
32,057,242
4,026,326
886,552
1,910,604
NET INCOME
P
=23,564,866
=P26,208,237
=P30,146,638
ATTRIBUTABLE TO:
Equity holders of the parent
Non-controlling interests
=18,380,620
P
5,184,246
=21,027,470
P
5,180,767
=23,964,674
P
6,181,964
P
=23,564,866
=P26,208,237
=P30,146,638
=P3.324
P
=3.808
P
=4.340
An n ual Report
P
=52,489,282
53,814,682
216,015
345,915
5,943,305
2,353,250
1,760,139
550,094
117,472,682
146,061,592
2014
174
2014
Noncurrent Liabilities
Noncurrent portions of:
Obligations under finance lease
(Notes 13 and 22)
Long-term debts (Note 19)
Long-term obligations on PDS (Note 15)
Trade payables (Notes 18 and 34)
Customers deposits (Note 20)
Asset retirement obligation (Note 21)
Deferred income tax liabilities (Note 31)
Net pension liability (Note 30)
Total Noncurrent Liabilities
Total Liabilities
175
117
ATTRIBUTABLE TO:
Equity holders of the parent
Non-controlling interests
176
118
P
=25,534,811
=P22,266,092
=P29,400,585
=20,353,550
P
5,181,261
=25,534,811
P
=16,977,564
P
5,288,528
=22,266,092
P
=23,311,281
P
6,089,304
=29,400,585
P
(P
=1,577,075)
P
=14,627
6,746
P
=35,533
50,067
50,067
(P
=708,448)
149,154
149,154
(P
=315,444)
(158,519)
(158,519)
(P
=277,293)
18,253
18,253
(9,939,369)
18,380,620
(P
=1,496,305) P
=94,995,596
1,907,229
1,907,229
6,746
(9,939,369)
(314,213)
20,353,550
1,907,229
18,253
(158,519)
149,154
50,067
116,766
916,853
(P
=1,178,397) P
=107,944,154
1,405
(9,939,369)
(314,213)
25,534,811
1,914,372
13,068
(172,593)
149,154
64,539
(3,752,913)
(3,752,913)
916,853
(59,677)
(59,677)
P
=26,990,810 P
=134,934,964
5,181,261
7,143
(5,185)
(14,074)
14,472
(5,341)
Noncontrolling
Interest
Total
P
=25,622,139 P
=122,549,472
5,184,246
23,564,866
An n ual Report
P
=469,540
(314,213)
6,746
Treasury
Stock
(Note 23)
Total
(P
=1,295,163) P
=96,927,333
18,380,620
Aboitiz
Equity Ventures, Inc. and Subsidiaries
SEC FORM 20 - IS (INFORMATION STATEMENT)
Consolidated Statements of Comprehensive Income
2014
800,087
=P6,911,044
=P5,376,176
Cumulative
Translation
Adjustment
(P
=14,534)
For the years ended December 31, 2014, 2013 and 2012
(Amounts in Thousands, Except Dividends Per Share Amounts)
(52,731)
(67,384)
135,660
(299,952)
(172,593)
(23,439)
(14,653)
(435,612)
149,154
(3,750)
(678,669)
(6,651)
(3,642,193)
1,405
1,993,384
(259,284)
(114,798)
(4,246,487)
151,913
Cash dividends - P
=1.80 per share
(Note 24)
1,914,372
64,539
Gain on
Dilution
=P5,376,176
(300,837)
Acquisition
of Noncontrolling
Interest
(Note 2)
(P
=1,262,862)
459,032
Share in
Actuarial Gains Actuarial Gains
(Losses) on
(Losses) on
Defined
Defined
Benefit Plans, Benefit Plans
net of tax of Associates
(Note 30)
(Note 9)
(P
=857,602)
(P
=156,925)
13,068
=23,964,674
P
6,181,964
30,146,638
Net
Unrealized
Mark-toMarket Gains
(Losses) on
AFS
Investments
=7,881
P
=21,027,470
P
5,180,767
26,208,237
Additional
Paid-in
Capital
=P6,110,957
Capital Stock:
Common
(Note 20)
=P5,694,600
Share in Net
Unrealized
Mark toMarket Gain
(Losses) on
Share in
AFS
Cumulative
Translation Investments
of an
Retained
Adjustments
Associate
Earnings
of Associates
(Note 10)
(Note 24)
(Note 10)
(P
=295,546) (P
=3,403,534) P
=86,554,345
18,380,620
(Amounts in Thousands)
Excess of
Book Value
Over
Acquisition
Cost of an
Acquired
Subsidiary
(Note 9)
P
=469,540
2014
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 and 2012
(Amounts in Thousands, Except Dividends Per Share Amounts)
(Amounts in Thousands)
119
178
120
=P6,110,957
=P5,694,600
=P6,110,957
=P5,694,600
Additional
Paid-in
Capital
=P6,110,957
Capital
Stock:
Common
(Note 20)
=P5,694,600
2014
An n ual Report
Additional
Paid-in
Capital
=P6,110,957
Capital Stock:
Common
(Note 20)
=P5,694,600
=P5,376,176
Gain on
Dilution
=P5,376,176
=P5,376,176
Gain on
Dilution
=P5,376,176
P
=469,540
469,540
(96,931)
(P
=1,165,931)
(638,728)
Acquisition
of Noncontrolling
Interest
(Note 2)
(P
=527,203)
(P
=1,262,862)
Excess of
Book Value
Over
Acquisition
Cost of an
Acquired
Subsidiary
(Note 9)
P
=
P
=469,540
-3-
(P
=14,534)
118,229
118,229
Cumulative
Translation
Adjustment
(P
=132,763)
(P
=857,602)
(435,612)
(435,612)
Actuarial
Gains (Losses)
on Defined
Benefit Plans,
net of tax
(Note 30)
(P
=421,990)
(P
=156,925)
165,606
165,606
=4,851
P
(4,787)
(4,787)
(P
=132,763)
(89,058)
(89,058)
(P
=421,990)
(11,707)
(11,707)
(P
=322,531)
(50,658)
(50,658)
(P
=648,552)
(230,891)
(230,891)
Actuarial
Net
Share in
Gains
Share in
Unrealized
Cumulative
(Losses)
Actuarial
Mark-toTranslation
on Defined Gains (Losses)
Market
on Defined Adjustments
Benefit
Gains
of
Plans, Benefit Plans
(Losses) Cumulative
Associates
net of tax of Associates
on AFS Translation
(Note 10)
(Note 9)
(Note 30)
Investments Adjustment
=9,638
P
(P
=43,705) (P
=410,283)
(P
=271,873)
(P
=417,661)
(P
=295,546)
353,006
353,006
(11,043,744)
21,027,470
Retained
Earnings
(Note 24)
P
=76,570,619
21,027,470
P
=850,631
(266,293)
(266,293)
Share in Net
Unrealized
Mark toMarket Gain
(Losses)
on AFS
Investments
of an
Associate
(Note 10)
=P1,116,924
P
=76,570,619
(8,724,557)
23,964,674
Retained
Earnings
(Note 24)
=61,330,502
P
23,964,674
(P
=3,403,534) P
=86,554,345
(4,254,165)
(4,254,165)
Share in Net
Unrealized
Mark toMarket Gain
Share in
(Losses) on
Actuarial
Share in
AFS
Gains (Losses)
Cumulative
on Defined
Translation Investments
of an
Benefit Plans Adjustments
Associate
of Associates of Associates
(Note 10)
(Note 10)
(Note 9)
(P
=322,531)
(P
=648,552)
P
=850,631
=7,881
P
3,030
3,030
Excess of
Net
Book Value
Unrealized
Over
Mark-toAcquisition Acquisition of
Cost of an
Non- Market Gains
(Losses) on
Acquired
controlling
AFS
Interest
Subsidiary
(Note 2) Investments
(Note 9)
P
=469,540 (P
=1,165,931)
=4,851
P
-2-
3,030
(11,043,744)
(96,931)
16,977,564
(4,254,165)
353,006
165,606
(435,612)
118,229
(4,787)
(638,728)
(8,724,557)
23,311,280
469,540
(266,293)
(230,891)
(50,658)
(11,707)
(89,058)
(P
=1,295,163) P
=91,090,444
Treasury
Stock
(Note 23)
Total
(P
=1,295,163) P
=76,672,909
23,964,674
(P
=1,295,163) P
=96,927,333
Treasury
Stock
(Note 23)
Total
(P
=1,295,163) P
=91,090,444
21,027,470
(6,651)
(11,043,744)
(83,886)
22,266,092
(4,246,487)
459,032
135,660
(435,612)
151,913
(637,611)
(8,724,557)
29,400,583
469,540
(259,284)
(300,837)
(52,731)
(14,653)
(114,800)
(3,750)
Total
P
=94,498,068
30,146,638
(2,712,541)
(2,712,541)
704,807
704,807
P
=21,907,845 P
=112,998,289
1,117
6,089,303
7,009
(69,946)
(2,073)
(2,946)
(25,742)
1,037
Noncontrolling
Interest
P
=17,825,159
6,181,964
(3,930,354)
(3,930,354)
2,343,075
2,343,075
P
=25,622,139 P
=122,549,472
13,045
5,288,528
7,678
106,026
(29,946)
33,684
(9,681)
Noncontrolling
Interest
Total
P
=21,907,845 P
=112,998,289
5,180,767
26,208,237
121
-2-
(Amounts in Thousands)
180
122
P
=27,591,192
=27,094,789
P
=32,057,242
P
6,696,445
5,160,897
188,901
5,748,235
4,339,683
2,110,910
64,677
103,514
875,541
2,834
657,510
7,571,446
3,974,281
(1,670,536)
897
(7,244,241)
(394)
(10,596,577)
(1,826)
(13,322,144)
(638,878)
(15,958)
23
(591,136)
(1,294,659)
(47,291)
(481,460)
(24,103)
(30,956)
(1,008,811)
(5,001)
(89)
(20,884)
(338)
(964,600)
368,904
(562)
31,210,563
27,017,342
(27,095)
28,392,477
(5,034)
1,514,708
(560,495)
(3,923,828)
(1,488,493)
(1,124,068)
(4,544,845)
126,717
(118,974)
(2,600,976)
605,996
30,164,762
(40,000)
(3,020,302)
27,104,460
3,710,855
2,921,525
27,113,333
(40,000)
(1,729,652)
25,343,681
2,990,316
262,872
27,108,563
(40,000)
(1,595,124)
25,473,439
5,957,286
254,343
506,094
5,248,482
3,418,636
427,767
14,811,410
1,040,179
637,732
340,430
574,401
25,176
456
144,057
11,800
40,886
28,589
Additions to:
Property, plant and equipment and investment
properties (Notes 13 and 14)
Investments in and advances to associates (Note 10)
Land and improvements (Note 13)
AFS investments
Increase in other noncurrent assets
Acquisition through business combination, net of cash
acquired (Note 9)
Increase in intangible asset - service concession
rights (Note 15)
Cash flows used in investing activities
(P
=16,651,075)
(1,400,685)
(200,083)
(1,173)
(2,285,272)
(P=17,335,118)
(2,058,015)
(617,608)
(1,252,453)
(P=11,291,424)
(881,242)
(515,761)
(1,428,396)
(1,229,760)
(847,934)
(3,191,731)
(36,286)
(14,423,247)
(41,584)
(12,561,540)
(100,101)
(913,190)
22,788,325
28,976,900
5,819,121
(2,002,259)
(6,970,625)
3,666,100
(12,888,615)
(6,722,939)
(62,140)
(3,712,791)
(10,854,568)
(2,476,221)
(31,070)
1,281,534
(9,939,369)
(11,043,744)
(8,724,558)
(3,752,913)
(2,033,042)
(1,010,045)
916,853
1,663,025
(3,930,354)
(968,925)
(84,018)
(10,436,626)
(2,906,981)
(1,800,877)
(638,728)
(20,332,348)
14,344,238
2,345,515
4,227,901
19,138
42,144
36,118,190
33,730,531
29,543,492
P
=50,481,566
=P36,118,190
=P33,730,531
(40,862)
An n ual Report
2014
2014
2014
123
Investor Information
Head Office: NAC Tower, 32nd Street, Bonifacio Global City,
1634 Taguig, Metro Manila , Philippines
Tel (632) 886.2800 | Fax (632) 886.2407
Cebu Office:
Common Stock
The Companys common stock is listed and traded on the Philippine Stock Exchange.
Stockholders Meeting
The Companys regular stockholders meeting is held on the third Monday of May of every
year.
Stockholder Services and Assistance
The Hongkong and Shanghai Banking Corporation, Ltd. (HSBC) serves as the Companys
stock transfer agent registrar.
For matters concerning dividend payments, account status, lost or damaged stock
certificates, change of address, please write or call:
THE HONGKONG AND SHANGHAI BANKING CORPORATION, LIMITED
7/F HSBC Centre, 3058 Fifth Avenue, West Bonifacio Global City
Taguig City 1634, Philippines
Telephone No.: (632) 581.7594 | (632) 581.7524
Fax No.: (632) 755.5548
Contact Person:
Mr. Mike Sison - stkmnl@hsbc.com.ph
Ms. Rosh Oliva - stkmnl@hsbc.com.ph
AEV welcomes inquiries from institutional investors, analysts, and the financial community.
Please write or call:
Investor Relations
Aboitiz Equity Ventures, Inc.
Mr. Dave Michael Valeriano
Mr. Aristo de Borja
Tel. No. (63-2) 886-2423
Fax No. (63-2) 817-3560
Email: aev_investor@aboitiz.com
Website: www.aboitiz.com
Membership
As of December 31, 2014, the Board Audit Committee is composed of five (5) members, three (3) of whom are independent directors.
I, Carlos C. Ejercito, Independent Director and Chair of the Committee is ably assisted by Romeo L. Bernardo (Independent Director),
Alfonso A. Uy (Independent Director), Mikel A. Aboitiz (Non-Executive Director) and Antonio R. Moraza (Executive Director).
Meetings
There were four (4) regular Committee meetings held during the yearMarch 4, May 6, July 22 and October 28one (1) special
meeting on July 30, and two (2) joint meetingsJune 2 and Dec 11with the Board Risk and Reputation Management Committee.
Also present in these meetings is the Group Internal Audit Head, the Chief Reputation and Risk Management Officer, and by invitation,
the Aboitiz Power Chief Financial Officer and the AP Controller.
Financial Reports
On a high level basis, the Committee reviewed, discussed, and endorsed for the approval of the Board the quarterly unaudited
consolidated financial statements and the annual audited financial statements of Aboitiz Power Corporation and Subsidiaries. Included
in the review are the Management Discussion and Analysis of Financial Condition and Results of Operations after these have been
presented and discussed with management, accounting and the companys independent external auditor, SyCip Gorres Velayo & Co.
(SGV)a member practice of Ernst & Young (EY) in the Philippines.
The activities of the Audit Committee were performed in the following context:
That management has the primary responsibility for the financial statements and the financial reporting process; and
T hat the companys independent external auditor is responsible for expressing an opinion on the conformity of the Companys
audited financial statements with Philippine Financial Reporting Standards.
Independent Auditors
On July 22, 2014, the Board Audit Committee endorsed the re-appointment of SyCip Gorres Velayo & Co. (SGV) as the independent
external auditor for the company. The overall scope and audit plan of SGV were reviewed and approved during the October 28, 2014
regular Board Audit Committee meeting. The terms of engagement which covers audit-related services provided by SGV and its related
fees were also reviewed and found to be reasonable.
The results of the SGV audits and its assessment of the overall quality of the financial reporting process were discussed. SGV presented
the effects of changes in relevant accounting standards and presentation of financial statements that impact on the reported results.
These matters were covered during the first Board Audit Committee meeting held the following year on March 5, 2015.
The delegation to the Board of Directors of the appointment of the Companys external auditor was largely upon the recommendation
of the Board Audit Committee.
126
Also, in the review of non-audit services provided by independent auditors, the Committee unanimously concurred/ratified the
opinion that there is no conflict of interest and that the work that Ernst & Young (Indonesia) have been contracted to do for the
Company is compatible with the general standard of independence for auditors imposed by relevant regulations.
Internal Auditors
The Group Internal Audit (GIA) takes the lead in setting the standards, initiatives and overall direction of the group-wide resident
internal audit teams deployed to the different business units. It remains to be the single point of contact for the Board Audit
Committee. The restructuring of the internal audit organization has proven to be a worthwhile endeavour as scope and coverage of
audits have increased with resident audit teams being able to specialize in areas of business covered by their teams.
All technical audits related to information systems and technology are handled by the group internal auditors until such time that
competencies to handle such audits can be transferred to the resident audit teams. Focus areas reviewed in 2014 include information
technology general controls and software applications reviews.
The Committee reviewed and approved the annual audit program for the year which also covers the adequacy of resources,
qualifications and competency of the staff and independence of the internal auditor.
With reference to the IPPF Attribute Standard 1100 which states that The Internal Audit Activity must be independent, and internal
auditors must be objective in performing their work, the Committee confirms that the internal auditors conducted its responsibilities
objectively and in an unbiased manner. The Committee further confirms that, to the best of its knowledge and belief, that the
auditors have no personal or other impairments that prevent them from objectively planning, conducting, reporting, or otherwise
participating and reaching independent conclusions in their audit assignments in 2014. Internal audit is organizationally positioned to
be independentadministratively reporting to the President and Chief Executive Officer and functionally reporting to the Board Audit
Committee.
Based on the information from the results of the audits conducted in 2014 for Aboitiz Power Corporation, its subsidiaries and alliances,
with the contribution provided by management and other key leaders on the issues raised to their attention, Internal Audit believes
that, overall there is reasonable assurance that the existing system of internal controls allows for a generally adequate management of
identified risks and effectively supports the improvement of the management of the Company as a whole.
Review of the Audit Charter
The Committee reviewed and assessed the current audit charter in its meeting held October 28, 2014 and found it adequate. No
modification needed.
Self-Assessment
The Committee conducted its annual self-assessment in accordance with the guidelines of SEC Memo Cir. No. 4, series of 2012. The
assessment result showed that it fully complied with the requirements set forth in the Audit Charter and met the necessary and most
important requirements set by global standards and best practices.
Risk Management
The Committee had two (2) joint meetings with the Board Risk and Reputation Management Committee in 2014 where the updated
results of the Risk Management Plan validation conducted by GIA and the resident audit teams were presented. Considering the
dynamic nature of risks, this closed-looped process from risk identification to risk treatment validation should be ongoing and continual
to ensure that risk treatment activities that the business units commit to do are being done. The ultimate value of this process is to
assist the business units in enhancing their capability to manage and monitor its top risks.
It is also in these joint meetings that the members of the Audit Committee are apprised of the top key strategic risks consequential to
the Companys ability to execute its strategies and achieve its business objectives for the following year. High-level risk exposures are
presented and discussed as these can affect shareholder value and ultimately the viability of the company. The significant potential
impact of these strategic risks warrants a more focused attention from the board and its directors.
As in previous years, the Committee continues to monitor action plans and commitments developed by management to address audit
issues and to ensure that proposed solutions are workable, strategic and sustainable.
Finally, the Committee has undertaken its activities to ensure that it continues to deepen its focus on the integrity of financial
reporting, effectiveness of internal controls, risk management, governance and compliance within the Aboitiz Power group of
companies.
In behalf of the Committee,
Carlos C. Ejercito
Chairman, Independent Director
An n ual Report
The Board Audit Committees roles and responsibilities are embodied in the Board Audit Committee Charter approved by the Board of
Directors. Its primary function is to provide assistance to the Board in fulfilling its oversight responsibility to the shareholders relating
to: (a) the quality and integrity of the Companys accounting, auditing, legal, ethical and regulatory compliance; (b) risk management;
(c) financial reporting practices; and (d) corporate governance. Any proposed changes to the Audit Committee Charter are referred to
the Board for approval.
2014
127
128
An n ual Report
133
134
2014
Statement of Managements
Responsibility for Financial Statements
129
SEC
FORM
BOA/PRC Reg.
No.
0001,20 - IS (INFORMATION STATEMENT)
December 28, 2012, valid until December 31, 2015
SEC Accreditation No. 0012-FR-3 (Group A),
November 15, 2012, valid until November 16, 2015
Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of Aboitiz Power Corporation and Subsidiaries as at December 31, 2014 and 2013,
and their financial performance and their cash flows for each of the three years in the period ended
December 31, 2014 in accordance with Philippine Financial Reporting Standards.
December 31, 2014, and a summary of significant accounting policies and other explanatory
information.
We have audited the accompanying consolidated financial statements of Aboitiz Power Corporation
Managements
Responsibility
forthe
theconsolidated
Consolidatedbalance
Financialsheets
Statements
and
Subsidiaries, which
comprise
as at December 31, 2014 and
2013, and the consolidated statements of income, statements of comprehensive income, statements
is responsible
for the preparation
andfor
fair
presentation
of these
of Management
changes in equity
and statements
of cash flows
each
of the three
yearsconsolidated
in the periodfinancial
ended
statements
in
accordance
with
Philippine
Financial
Reporting
Standards,
and
for
internal control
December 31, 2014, and a summary of significant accounting policies and othersuch
explanatory
as management determines is necessary to enable the preparation of consolidated financial
information.
We have
audited
the
accompanying consolidated financial statements of Aboitiz Power Corporation
Leovina
Mae V.
Chu
and Partner
Subsidiaries, which comprise the consolidated balance sheets as at December 31, 2014 and
CPA
Certificate
No. 99910statements of income, statements of comprehensive income, statements
2013,
and
the consolidated
SEC Accreditation
No.statements
1199-A (Group
A), flows for each of the three years in the period ended
of changes
in equity and
of cash
March
15,
2012,
valid
until
March
31, 2015 accounting policies and other explanatory
December 31, 2014, and a summary of significant
Tax Identification No. 209-316-911
information.
statements that are free from material misstatement, whether due to fraud or error.
Management is responsible for the preparation and fair presentation of these consolidated financial
Our responsibility is to express an opinion on these consolidated financial statements based on our
statements in accordance with Philippine Financial Reporting Standards, and for such internal control
audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those
as standards
management
determines is necessary to enable the preparation of consolidated financial
require that we comply with ethical requirements and plan and perform the audit to
statements
that
are
free from about
material
misstatement,
whether
due tostatements
fraud or error.
obtain reasonable assurance
whether
the consolidated
financial
are free from
material misstatement.
Management is responsible for the preparation and fair presentation of these consolidated financial
March 10, 2015
statements in accordance with Philippine Financial Reporting Standards, and for such internal control
as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
control. performing
An audit also
includes evaluating
appropriateness
of accounting
policies
used
Aninternal
audit involves
procedures
to obtainthe
audit
evidence about
the amounts
and disclosures
the reasonableness
of accounting
estimates
made by management,
as well
in and
the consolidated
financial
statements.
The procedures
selected depend
on as
theevaluating
auditorsthe
overall
presentation
of
the
consolidated
financial
statements.
judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, the auditor
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
considers internal control relevant to the entitys preparation and fair presentation of the
for our audit opinion.
consolidated financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting Annual
policies
used
Report
2014
and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
Our responsibility is to express an opinion on these consolidated financial statements based on our
audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
135
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
130
136
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal
control. An audit also includes evaluating the appropriateness of accounting policies used
Aboitiz
Power Corporation
An n ual Report
Auditors Responsibility
2014
Our
is to
expressstatements.
an opinionThe
on these
consolidated
statements
based on our
in responsibility
the consolidated
financial
procedures
selectedfinancial
depend on
the auditors
audits.
We conducted
ourassessment
audits in accordance
with
Philippine
Standardsofon
Those
judgment,
including the
of the risks of
material
misstatement
theAuditing.
consolidated
standards
that whether
we comply
ethical
requirements
planrisk
and
perform the
audit
to
financial require
statements,
duewith
to fraud
or error.
In makingand
those
assessments,
the
auditor
considers
internalassurance
control relevant
the entitys
preparation and
fair presentation
thefree from
obtain
reasonable
about to
whether
the consolidated
financial
statementsofare
consolidated
financial statements in order to design audit procedures that are appropriate in the
material
misstatement.
131
Aboitiz
PowerPOWER
Corporation
and Subsidiaries
ABOITIZ
CORPORATION
AND SUBSIDIARIES
Consolidated
Balance
Sheets
CONSOLIDATED BALANCE SHEETS
BOA/PRC Reg.
Reg. No.
No. 0001,
0001,
BOA/PRC
December 28,
28, 2012,
2012, valid
December
valid until
until December
December31,
31,2015
2015
SECAccreditation
Accreditation No.
No. 0012-FR-3
SEC
0012-FR-3(Group
(GroupA),
A),
November
15,
2012,
valid
until
November
16,
2015
November 15, 2012, valid until November 16, 2015
(Amounts in Thousands)
(Amounts in Thousands)
Current Assets
Cash and cash equivalents (Note 5)
Trade and other receivables (Note 6)
Derivative assets (Note 35)
Inventories (Note 7)
Other current assets (Note 8)
Total Current Assets
Noncurrent Assets
Investments in and advances to associates (Note 10)
Property, plant and equipment (Note 13)
Intangible asset - service concession rights (Note 14)
Investment properties
Derivative assets - noncurrent portion (Note 35)
Available-for-sale (AFS) investments - net of impairment of
P
=5,254
Goodwill (Note 12)
Net pension assets (Note 28)
Deferred income tax assets (Note 30)
Other noncurrent assets (Note 15)
Total Noncurrent Assets
audited
accordance with
Philippine Standards
on Auditing, of
theAboitiz
consolidated
We We
havehave
audited
theinaccompanying
consolidated
financial statements
Power financial
Corporation
of which
Aboitizcomprise
Power Corporation
and Subsidiaries
includedasinatthis
Form 17-A
have
issued
and statements
Subsidiaries,
the consolidated
balance sheets
December
31,and
2014
and
our
report
thereon
dated
March
10,
2015.
Our
audits
were
made
for
the
purpose
of
forming
an
2013, and the consolidated statements of income, statements of comprehensive income, statements
opinion in
onequity
the basic
statements
a whole.
listed
in the
Indexended
to
of changes
andfinancial
statements
of cashtaken
flowsasfor
each ofThe
theschedules
three years
in the
period
Financial
Statements
and
Supplementary
Schedules
are
the
responsibility
of
the
Companys
December 31, 2014, and a summary of significant accounting policies and other explanatory
management. These schedules are presented for purposes of complying with the Securities
information.
Regulation Code Rule 68, as amended (2011) and are not part of the basic financial statements.
These schedules have been subjected to the auditing procedures applied in the audit of the basic
Managements Responsibility for the Consolidated Financial Statements
financial statements and, in our opinion, fairly state in all material respects the financial data
required to be set forth therein in relation to the basic financial statements taken as a whole.
Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with Philippine Financial Reporting Standards, and for such internal control
as management
is necessary to enable the preparation of consolidated financial
SYCIP GORRESdetermines
VELAYO & CO.
statements that are free from material misstatement, whether due to fraud or error.
TOTAL ASSETS
=P31,383,499
13,037,999
30,900
2,841,387
1,736,966
49,030,751
24,816,278
119,646,640
3,400,354
28,300
59,044
25,330,356
106,754,751
3,663,275
13,300
3,620
1,094,687
79,000
243,756
10,663,253
160,034,932
6,654
806,090
10,468
519,689
7,803,483
144,908,066
P
=216,761,021
=193,938,817
P
P
=103,000
=
P
1,388,991
1,971,739
832,877
780,905
40,000
12,778,001
604,158
P
=16,885,889
40,000
15,075,584
23
348,145
17,077,534
(Forward)
139
140
An n ual Report
Current Liabilities
Bank loans (Note 17)
Current portions of:
Long-term debts (Note 18)
Finance lease obligation (Note 36)
Long-term obligation on power distribution system
(Note 14)
Trade and other payables (Note 16)
Derivative liabilities (Note 35)
Income tax payable (Note 30)
Total Current Liabilities
Our Leovina
responsibility
to express an opinion on these consolidated financial statements based on our
Mae V.isChu
Partner
audits.
We conducted our audits in accordance with Philippine Standards on Auditing. Those
CPA Certificate
No. 99910
standards
require that
we comply with ethical requirements and plan and perform the audit to
SECreasonable
Accreditation
No. 1199-A
(Group
A), the consolidated financial statements are free from
obtain
assurance
about
whether
March
15,
2012,
valid
until
March
31, 2015
material misstatement.
132
P
=40,231,875
12,332,513
53,500
2,168,832
1,939,369
56,726,089
Auditors Responsibility
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
December 31
2013
ASSETS
The The
Stockholders
andand
thethe
Board
of of
Directors
Stockholders
Board
Directors
Aboitiz
Power
Corporation
Aboitiz
Power
Corporation
32nd32nd
Street,
Bonifacio
Global
City
Street,
Bonifacio
Global
City
Taguig
City,
Metro
Manila
Taguig City, Metro Manila
Philippines
Philippines
judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, the auditor
March 10, 2015
considers internal control relevant to the entitys preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting Annual
policies
used
Report
2014
and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
2014
2014
SyCip
Gorres
Velayo
& Co. Tel:
Tel:
(632)
891
0307
SyCip
Gorres
Velayo
& Co.
(632)
891
0307
Ayala
Avenue
Fax:
(632)
8190872
0872
67606760
Ayala
Avenue
Fax:
(632)
819
Makati
ey.com/ph
12261226
Makati
CityCity
ey.com/ph
Philippines
Philippines
133
Noncurrent Liabilities
Noncurrent portions of:
Long-term debts (Note 18)
Finance lease obligation (Note 36)
Long-term obligation on power distribution system
(Note 14)
Customers deposits (Note 19)
Asset retirement obligation (Note 20)
Net pension liabilities (Note 28)
Deferred income tax liabilities (Note 30)
Total Noncurrent Liabilities
Total Liabilities
Equity Attributable to Equity Holders of the Parent
Capital stock (Note 21a)
Additional paid-in capital (Note 21a)
Share in net unrealized valuation gains on AFS investments of an
associate (Note 10)
Cumulative translation adjustments (Note 35)
Share in cumulative translation adjustments of associates
(Note 10)
Actuarial losses on defined benefit plans (Note 28)
Share in actuarial losses on defined benefit plans of associates
(Note 10)
Acquisition of non-controlling interests
Excess of cost over net assets of investments (Note 9)
Retained earnings (Note 21b)
Appropriated
Unappropriated (Notes 10 and 21c)
Non-controlling Interests
Total Equity (Note 21c)
TOTAL LIABILITIES AND EQUITY
2014
OPERATING REVENUES
Sale of power (Notes 22 and 32):
Generation
Distribution
Retail electricity supply
Technical, management and other fees (Note 33)
P
=41,394,084
52,489,282
=P22,455,062
54,421,858
216,015
5,686,490
2,353,250
405,854
1,249,717
103,794,692
223,865
5,138,155
2,008,669
452,807
910,110
85,610,526
120,680,581
102,688,060
7,358,604
12,588,894
7,358,604
12,588,894
119,087
38,091
88,187
(24,511)
(375,489)
(519,854)
(388,557)
(694,746)
(48,589)
(259,147)
(421,260)
(31,815)
(259,147)
20,900,000
52,581,755
91,962,092
4,118,348
96,080,440
68,991,854
87,628,763
3,621,994
91,250,757
P
=216,761,021
=193,938,817
P
OPERATING EXPENSES
Cost of purchased power (Note 23)
Cost of generated power (Note 24)
General and administrative (Note 25)
Depreciation and amortization (Notes 13, 14 and 15)
Operations and maintenance (Note 26)
FINANCIAL INCOME (EXPENSES)
Interest income (Notes 5 and 33)
Interest expense and other financing costs
(Notes 17, 18 and 34)
134
142
141
2012
P
=36,877,070
39,975,961
9,702,714
203,641
86,759,386
P
=39,436,267
28,067,236
4,372,597
179,067
72,055,167
P
=46,031,304
15,849,591
272,270
62,153,165
29,834,149
21,037,658
5,458,309
4,643,300
3,435,211
64,408,627
24,715,315
17,642,484
4,073,550
3,875,299
2,271,230
52,577,878
13,184,697
18,721,284
3,424,696
3,516,396
2,850,331
41,697,404
471,915
413,795
928,913
(5,994,097)
(5,522,182)
(5,343,728)
(4,929,933)
(7,001,842)
(6,072,929)
4,009,488
591,925
4,601,413
6,474,370
(1,083,764)
5,390,606
9,939,763
1,983,606
11,923,369
21,429,990
19,937,962
26,306,201
3,424,089
526,625
1,390,567
P
=18,005,901
P
=19,411,337
P
=24,915,634
P
=16,705,184
1,300,717
P
=18,005,901
P
=18,576,845
834,492
P
=19,411,337
P
=24,425,708
489,926
P
=24,915,634
P
=2.27
P
=2.52
P
=3.32
An n ual Report
December 31
2014
2013
2014
-2-
135
For the years ended December 31, 2014, 2013 and 2012
Dividends Per Share Amounts)
136
144
(1,141,673)
341,958
P
=96,080,440
(1,141,673)
341,958
P
=4,118,348
P
=52,581,755
P
=20,900,000
(P
=421,260)
(P
=259,147)
(P
=48,589)
(P
=519,854)
(P
=375,489)
P
=38,091
P
=12,588,894
P
=7,358,604
P
=119,087
(12,215,283)
(12,215,283)
18,265,941
(421,260)
(16,774)
1,296,069
16,705,184
(20,900,000)
20,900,000
(421,260)
(16,774)
(16,774)
174,892
13,068
62,602
30,900
170,244
(4,648)
174,892
13,068
13,068
62,602
An n ual Report
143
2014
=23,990,873
P
488,872
=24,479,745
P
=18,951,123
P
764,039
=19,715,162
P
P
=16,969,872
1,296,069
P
=18,265,941
(435,889)
=24,479,745
P
303,825
=19,715,162
P
260,040
P
=18,265,941
(34,220)
(303,432)
62,602
153,470
(6,514)
59,659
(16,774)
(27,706)
(363,091)
170,244
(401,669)
607,257
106,570
(300,836)
459,032
30,900
13,068
(112,177)
Total
P
=91,250,757
18,005,901
145,334
62,602
Retained Earnings
Appropriated Unappropriated Non-controlling
(Note 21b)
(Note 21b)
Interests
P
=
P
=68,991,854
P
=3,621,994
16,705,184
1,300,717
11,344
Movement in
Cumulative
Translation
Adjustments
(P
=24,511)
2,891
Share in
Actuarial Actuarial Losses
Losses on
on Defined
Excess of cost
Defined
Benefit Plans
Acquisition of over net assets
Benefit Plans
of Associates Non-controlling of investment
(Note 28)
(Note 10)
Interests
(Note 9)
(P
=694,746)
(P
=31,815)
(P
=259,147)
P
=
30,900
Share in
Cumulative
Translation
Adjustments
of Associates
(Note 10)
(P
=388,557)
=24,425,708
P
489,926
=24,915,634
P
Capital Stock
Additional
(Note 21a) Paid-in Capital
P
=7,358,604
P
=12,588,894
ATTRIBUTABLE TO:
Equity holders of the parent
Non-controlling interests
=18,576,845
P
834,492
19,411,337
P
=16,705,184
1,300,717
18,005,901
Share in Net
Unrealized
Valuation
Gains on AFS
Investments of
an Associate
(Note 10)
P
=88,187
2012
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
(Amounts in Thousands, Except Dividends Per Share Amounts)
2014
30,900
in Thousands,
Except
SEC FORM 20(Amounts
- IS (INFORMATION
STATEMENT)
(Amounts in Thousands)
137
138
Annual Report 2014
145
146
Aboitiz Power Corporation
=12,588,894
P
=7,358,604
P
=12,588,894
P
=7,358,604
P
Additional
Paid-in Capital
=12,588,894
P
Capital Stock
(Note 21a)
=7,358,604
P
Additional
Paid-in Capital
=12,588,894
P
Capital Stock
(Note 21a)
=7,358,604
P
2014
An n ual Report
=85,296
P
11,344
11,344
Share in Net
Unrealized
Valuation
Gains on AFS
Investments of
an Associate
(Note 10)
=73,952
P
=88,187
P
2,891
2,891
Share in Net
Unrealized
Valuation
Gains on AFS
Investments of
an Associate
(Note 10)
=85,296
P
-3-
(P
=388,557)
459,032
459,032
(P
=694,746)
(292,638)
(P
=169,845)
(112,177)
(112,177)
Movement in
Cumulative
Translation
Adjustments
(P
=57,668)
(P
=847,589)
(300,836)
(300,836)
Share in
Cumulative
Translation
Adjustments
of Associates
(Note 10)
(P
=546,753)
(292,638)
Actuarial
Losses on
Defined
Benefit Plans
(Note 28)
(P
=402,108)
(P
=402,108)
(26,652)
(26,652)
Actuarial
Losses on
Defined
Benefit Plans
(Note 28)
(P
=375,456)
(P
=24,511)
145,334
145,334
Movement in
Cumulative
Translation
Adjustments
(P
=169,845)
Share in
Cumulative
Translation
Adjustments
of Associates
(Note 10)
(P
=847,589)
-2-
(P
=91,474)
(6,514)
(6,514)
Share in
Actuarial Losses
on Defined
Benefit Plans
of Associates
(Note 10)
(P
=84,960)
(P
=31,815)
59,659
59,659
Share in
Actuarial Losses
on Defined
Benefit Plans
of Associates
(Note 10)
(P
=91,474)
(P
=259,147)
Acquisition of
Non-controlling
Interests
(P
=259,147)
(P
=259,147)
Acquisition of
Non-controlling
Interests
(P
=259,147)
=62,630,292
P
24,425,708
(11,332,251)
Unappropriated
Retained
Earnings
(Note 21b)
=49,536,835
P
24,425,708
=68,991,854
P
18,576,845
(12,215,283)
Unappropriated
Retained
Earnings
(Note 21b)
=62,630,292
P
18,576,845
(431,308)
(114,707)
=1,566,040
P
488,872
(1,054)
Non-controlling
Interests
=1,623,183
P
489,926
(612,229)
1,904,144
=3,621,994
P
764,039
(70,453)
Non-controlling
Interests
=1,566,040
P
834,492
(431,308)
(114,707)
=82,458,963
P
24,479,745
(11,332,251)
(6,514)
(27,706)
(300,836)
(112,177)
11,344
Total
=69,857,484
P
24,915,634
(612,229)
1,904,144
=91,250,757
P
19,715,162
(12,215,283)
59,659
(363,091)
459,032
145,334
2,891
Total
=82,458,963
P
19,411,337
139
(Amounts in Thousands)
-2-
140
P
=21,429,990
P
=19,937,962
P
=26,306,201
5,994,097
5,343,728
7,001,842
4,630,515
3,861,129
3,509,974
563,278
188,018
26,000
12,787
14,055
2,078,138
85,051
14,170
819,024
(1,658,983)
6,422
2,834
568,125
897
(395)
368,904
(1,826)
(964,600)
(4,792)
(27,087)
(4,904)
(13,195)
(15,000)
(471,915)
(4,009,488)
28,333,914
(1,323)
(413,795)
(6,474,370)
24,411,987
3,616
(928,913)
(9,939,763)
25,090,507
(362,479)
477,019
(202,403)
(2,181,712)
(311,931)
(680,254)
(1,379,002)
203,211
68,361
(2,834,127)
548,335
25,960,259
(2,482,280)
(40,000)
23,437,979
3,700,017
898,974
25,837,081
(1,383,938)
(40,000)
24,413,143
1,769,105
240,166
25,992,348
(1,084,609)
(40,000)
24,867,739
4,618,730
390,638
4,241,994
364,490
13,977,589
953,637
31,599
101,835
17,406
323,717
25,000
10,222
573,236
151,947
412
(15,003,744)
(15,618,273)
(9,856,235)
(36,286)
(41,694)
(48,920)
(1,182,366)
200
(12,979,595)
217,862
(11,502,024)
4,516,210
20,634,755
(12,215,283)
20,797,150
(13,834,176)
1,540,280
(9,713,358)
(854,220)
(6,970,625)
103,000
(949,131)
(1,367,428)
(1,618,932)
(8,965,920)
(6,722,939)
(2,332,000)
(612,229)
(513,562)
(62,140)
(12,245,816)
(9,156,183)
(2,476,221)
(337,600)
(625,748)
(1,255,161)
(31,070)
(22,055,061)
8,839,452
665,303
7,328,888
8,924
39,703
31,383,499
30,678,493
23,391,561
P
=40,231,875
P
=31,383,499
P
=30,678,493
(41,956)
(Forward)
Annual Report 2014
2014
(P
=1,915,107)
(2,500)
An n ual Report
2012
147
148
2014
141
Investor Information
Head Office: NAC Tower, 32nd Street, Bonifacio Global City,
1634 Taguig, Metro Manila , Philippines
Tel (632) 886.2800 | Fax (632) 886.2407
Cebu Office: Aboitiz Corporate Center, Gov. Manuel A. Cuenco Avenue
Kasambagan, 6000 Cebu City, Philippines
Tel (6332) 411.1800 | Fax (6332) 231.4037
Common Stock
The Companys common stock is listed and traded on the Philippine Stock Exchange.
Stockholders Meeting
The Companys regular stockholders meeting is held on the third Monday of May of every year.
Stockholder Services and Assistance
The Hongkong and Shanghai Banking Corporation, Ltd. (HSBC) serves as the Companys stock
transfer agent registrar.
For matters concerning dividend payments, account status, lost or damaged stock certificates,
change of address, please write or call:
THE HONGKONG AND SHANGHAI BANKING CORPORATION, LIMITED
7/F HSBC Centre, 3058 Fifth Avenue, West Bonifacio Global City
Taguig City 1634, Philippines
Telephone No.: (632) 581.7594 | (632) 581.7524
Fax No.: (632) 755.5548
Contact Person:
Mr. Mike Sison - stkmnl@hsbc.com.ph
Ms. Rosh Oliva - stkmnl@hsbc.com.ph
AboitizPower welcomes inquiries from institutional investors, analysts, and the financial
community.
Credits
Design and Layout: AEV and Publicis JimenezBasic
Photography: Sarah Black and Pia Puno (Portraits)
Paintings: Jason Sto. Domingo
142
Investor Relations
Aboitiz Power Corporation
Mr. Dave Michael Valeriano
Mr. Aristo de Borja
Tel. No. (63-2) 886-2423
Fax No. (63-2) 817-3560
Email: ap_investor@aboitiz.com
Website: www.aboitizpower.com
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