Ayala Corporation (AC) is a holding company that is mainly in the businesses of real
estate development, banking and financial services, telecommunications, electronics
and information technology, water infrastructure development and management, and
business process outsourcing, and new investments in power, renewable energy, and
transportation infrastructure. The company is engaged in almost all segments of
property business from land development and mass housing to mall and hotel
operations. AC owns a significant share of Bank of the Phil. Islands and Globe Telecom,
one of cellular companies in the Philippines. AC's other businesses are water utilities,
electronics and IT and automotive. The company's head office is located in Makati City.
“We need to establish the appropriate environment for progress. In my view, we need a
deliberate and strong alignment with sustainability principles and adopt long-term
thinking. This of course should also be complemented by effective execution and
meaningful impact in critical sectors, especially finance, tourism, education and
healthcare.”
-Fernando Zobel de Ayala, Ayala President & COO
MISSION
Anchored on values of integrity, long-term vision, empowering leadership, and
with a strong commitment to national development, Ayala fulfills its mission to
ensure long-term profitability and value creation. Ayala creates synergies as it
builds mutually-beneficial partnerships and alliances with those who share its
philosophies and values.
VISION
We will be the most relevant, innovative and enduring Philippine-based
business group, enabling shared value and prosperity for the many
stakeholders we serve.
HISTORY
1834 (colonial period):
CASA ROXAS – CASA AYALA – AYALA E COMPANIA – THE AYALA COMPANY – AYALA
CORPORATION
La Tondena, inc. (by Carlos Palanca Sr) – oldest distillery (still active); acquired by the
SMC in 1987
Ayala – 1st distillery in PH
Notable drinks:
Cognac
Rum
Whiskey
Gin (Ginebra SM) noon: Ginebra Ayala/Ginebra Nacional –
incredibly powerful brand
Another Growing industry : BANKING in 1851 – EL BANCO ESPANOL FILIPINO DE
ISABELA II (named after Queen Isabela II)
- 1st bank in PH and 1st southeast Asia’s private commercial bank – was
extablished due to the development of the financial sector in PH
Agricultural led to the rise of abaka – a textile fiber crop, coconut oil started to rise, and
trade in general started picking up foreign trade made up 30% of the country’s GDP
and so along with the demand merchants started to need financing, therefore, the use
in business activities led to an increased in the money supply in PH. One of the
problems it was intended to solve for the usage of single currency because since 1851
many currencies were used and so the back was established the power to produce PH
peso.
The banks is a quasi bank ( the government is involved in running the bank) and then
became BPI
Note: Ayala stem actually owned the bank (kahit na nagging director si Roxas sa BPI)
1969 – ayala became the majority shareholder of BPI
GLOBE (started 1928 Robert Dollar Company)
Globe wireless limited – Globe Mackay – GMcr globe Telecom -
Ayala entered in 197 4 when Ayala acquired 60% shares, 30% of common shares
Singtel (Singapore company) owns 47% shares partnered with globe in 1983
Question: International companies can only acquire 40% of a company here in
the PH, why does the Singtel group have 47% of common shares?
Explanation: Common stock has voting rights so if the company needs to make
sessions, if you have common shares you get to have a say in those decisions.
They issue new type of stock called preferred shares wherein get dividends but
no voting rights. 100% of preferred shares of globe was owned by Asiacom. So,
they issue a lot of preferred shares to dilute the total number of shares. The
loophole is that the constitution only counts the percentage base on the shares
you own divided by the total number of shares regardless of what type of shares
and so even though the Singtel group owns 47% common stock effectively
giving them majority control of the company. If you add in the preferred stock
on paper it dilutes the 47% into 20%. And that is the magical creativity of
corporations in PH.
Asiacom (which is the owner of 100% ps of globe) is owend by Ayala for 60%
and Singtel for 40%. Bottom line: Globe is controlled by Singtel and Ayala corp.
Makaty City – center of financing or financial center as it has the highest concentration
of multinational and local corps. PSE is located in Makati City.
Hacienda san pedro de Makati (Don Jose Bonifacio Roxas)
1937: Lauri Neilson – an entrepreneur an aviation enthusiast wanted to take the
opportunity to build an airport in the PH. Don Enrique Zobel De Ayala (partner of Ayala)
offered a portion of Hacienda. But it has beed a coarsed sale because of Japan
negotiated the sale of hacienda. Hacienda in Makati will be a killing blow to their wealth.
Luckily, there’s Don Alfonso Zobel de Ayala, the sole managing partner, he delayed the
transaction because he knew that this sale of property is inevitable. In 1943, puppet
government pays off, thus install Independence. Converted to a road – Ayala Avenue
AYALA LAND (real estate) – most profitable company across Ayala Corp and 1 of the 3
real estate companies in the PH. Net income: 31.8 Billion in 2018. Ayala Land is also
doing moves abroad increasing their stake in MCP 66% stake in the company. MCP is
the springboard into Malaysia. Ayala acquired 50.4% of BGC (Bonifacio Global City).
Basic Set-up: Ayala is acquiring several hectares of land in key metropolitan areas they
will build their condominiums, office spaces, hotel branch, hospital branch under the
Ayala owned, and Ayala mall
AC HEALTH – Healthway Medical has 7 based clinics and 40 corporate clinics. Includes
Generika Drugstore, Family Doc, Med Grocer, and partnered up with the Mercado
General Hospital to form qualimed.
AC EDUCATION – Unknown to many is Ayala Corporation’s 2014 tie-up with U.K.-based
education and publishing company Pearson PLC. This gave birth to the firm’s Affordable
Private Education Center Schools or APEC Schools which offer top-notch education at an
affordable price.
Because of the raising demand of E-Commerce or online shopping, AC ventures
acquired Zalora Ph – an online shopping website that houses over thousand brands.
Entrego – fulfilment division of Zalora but ended up becoming independent company –
LBC and APCargo
AC INDUSTRIALS – Integrated Microelectronics Inc (IMI) which is launched by AC and
Resins Inc. which has 20 manufacturing sites and 16,00 employees across 8 countries.
They make a wide array of parts which includes circuit boards, electronic parts for
vehicles, and medical diagnostic devices. Car Leadership Division: ownership of
Volkswagen PH, Honda Cars in Makati and Cebu, minority stake in Isuzu PH. In 2018,
AC INDUSTRIALS became the official distributor of Kia cars
AC ENERGY – solar farms and diesel plants. In 2019, Ayala is investing up to 1.8 Billion
in a 120 megawatt solar farm and also invested 350 megawatt diesel that in result.
AC INFRASTRUCTURES – subsidiary for road rail and airport projects under the
government public-private p’ship program (Muntinlupa expressway, LRT, and the North
Avenue Grand Central Station.
MANILA WATER (1997) water supply over 7 million people. This brought 6.5 Billion net
income.
Ayala land – brought 29 Billion net income
Globe – 18 Billion net income
BPI – 23 Billion
AC Energy – 4.1 Billion
AC Industrials – 578 Million
AC Motors – 164 Million