Our cover quote is taken from the Message of our Chairman & CEO, Jaime Augusto Zobel de Ayala, which begins on page 10.
Our cover collage emphasizes how Ayala’s strategy remains focused on key industries that are fundamental to our nation’s economy. As we strengthen our presence in these industries, we will pursue opportunities in the power and transportation infrastructure sectors to build a platform for longterm growth while remaining aligned with national development goals.
This Ayala Corporation 2011 Annual Report cover is printed on FSC®-certified Mohawk Options 100% PC, which is made of 100% process chlorine-free postconsumer recycled fiber with the balance comprised of elemental chlorine-free virgin fiber. This paper is made carbon neutral with Mohawk’s production processes by offsetting thermal manufacturing emissions with Verified Emission Reduction Credits (VERs), and by purchasing enough Green-e certified Renewable Energy Certificates (RECs) to match 100% of the electricity used in our operations. This paper is certified by Green Seal. The main section of this report is printed on 9Lives Offset, a premium grade recycled paper that is carbon-neutral, FSC®-certified and made of 100% post-consumer waste. The Financial Statements of this report are printed on Limited Woodfree Natural White, which is made of 70% post-consumer recycled pulp.
2 7 8 10 12 16
Ayala at a Glance Financial Highlights Consolidated Financial Highlights Chairman’s Message to Stockholders President’s Report to Stockholders Growth Initiatives
16 20 22 24 26 30
Expanding Into New Markets Diversifying Geographies Strengthening the Core Investing in New Businesses
Sustainable Development in Ayala Business Reviews
30 32 34 36 38 40 41 42 44 48 56 58 60 61 64 66 67 68 198
Real Estate Financial Services Telecommunications Water and Wastewater Services Electronics Automotive Dealership International Real Estate Business Process Outsourcing Social Commitment
Corporate Governance Board of Directors Management Committee Senior Leadership Team Management’s Discussion and Analysis of Financial Condition and Results of Operations Report of the Audit and Risk Committee to the Board of Directors Statement of Management’s Responsibility Independent Auditor’s Report Financial Statements Corporate Directory Corporate Information
Ayala Corporation, a holding company with a diverse business portfolio, has a legacy of pioneering the future. Founded in 1834, it has achieved its position of leadership by being values oriented, goals driven, and stakeholder focused. Anchored on values of integrity, long-term vision, empowering leadership, and with a strong commitment to national development, it fulfills its mission to ensure long-term profitability and value creation. Ayala provides career opportunities and creates synergies as it builds mutually beneficial partnerships and alliances with those who share its philosophy and values. With entrepreneurial strength, it continues to create a future that nurtures to fruition its business endeavors and its aspirations for sustainable national development.
2 Annual Report 2011
• • •
Achieved 16% growth in consolidated core net income Committed P7.0 billion worth of investments in new business initiatives Established AC Energy Holdings Inc. as platform for investments in the power sector, and assembled 180MW of capacity across hydro, wind and thermal technologies
All-time high consolidated revenues and net income of
P44.2 billion and P7.1 billion respectively
Doubled last year’s residential unit launches to 20,613 with corresponding record take-up and sales booking across all brands • • Maiden offering in the socialized housing segment via BellaVita in Cavite Significant improvement in the Hotels and Resorts business largely due to the impact of consolidation of the El Nido Resorts operations in Palawan • Capital expenditure reached a record P29.9 billion...
Please join StudyMode to read the full document