Presented By: Group 6

De Leon, Margarita Isabelle

In the Republic of the Philippines, one such behemoth is the Ayala Corporation. It was founded by
Domingo Róxas and Antonio de Ayala way back in 1834 during the Spanish colonial rule in the country,
thus making it the Philippine's oldest and not to mention largest conglomerate. The company's name
has become synonymous with the term "business" in the country. It has done much to assist the
Filipinos as well, by fighting poverty, giving them job opportunities, developing land for the
community, helping create a telecommunications network through Globe Telecom to give the people
Internet access to the outside world, and many other noteworthy things. They also engage in
philanthropy through the Ayala Foundation, where they create programs that aid in the socio-
economic development of society. The foundation is one of the country's leading corporate donors.
Financial Growth and Opportunities

2017 was a milestone year for Ayala Land as they continued to make headway towards their
2020-40 plan. Their growth trajectory was led by the broadbased contribution of the property
development and commercial leasing businesses as revenues expanded by 14% to P142.3
billion while the net income attributable to equity holders of Ayala Land grew by 21% to an
all-time high of P25.3 billion. With tighter expense management, they continued to
posthealthy margins across their product lines, improving their earnings before interest and
taxes (EBIT) margin to 32.7% from 32.5% and further reducing their general and
administrative expense (GAE) ratio to 5.1% from 5.6%.
Annual Income Report

Ayala is likewise committed to provide value for their — shareholders and stakeholders. The
year 2017 ended on a high note as they achieved new milestones across all our business
segments. Their revenues grew by 14% to P142.3 billion, lifted by the resurgence in property
sales and complemented by the growth in their commercial leasing assets. Their capital
expenditures reached P91.4 billion to support the robust build-up of their core businesses.
With margin improvement initiatives effectively in place, their net income increased by 21%
to P25.3 billion, allowing them to generate a return on equity of 16.1% and distribute
dividends of P7.1 billion, or P0.48 per share. They ended the year with an improved net debt-
toequity ratio of 0.77:1 from their 2016 level of 0.79:1, maintaining a strong balance sheet.
Group Analysis about the Future
Posibilities of Ayala Corporation
Ayala Corporation a solid reputation in long-established markets and an emerging
presence in fields and industries that address the changing needs of Filipinos today.
Ayala is accelerating the future today through brands that have earned the trust of the
people we serve. Ayala foresees to be the most relevant, innovative and enduring
Philippine-based business group, enabling shared value and prosperity for the many.
They have been developing businesses that transform industries and bringing
innovations here in the Philippines and abroad that contribute to the nation’s social
and economic agenda. Also they look for possibilities in the market to drive
advancement. They see challenges as opportunities and tackle problems differently, as
they explore new dynamic business models and introduce pioneering products and
services. They are empowering our leaders and employees to take initiative and make
an impact in everything we do.
Strategies They Used
For over 80 years since the establishment of a real-estate department in Ayala
Corporation, we have strive to maintain our position as the premier developer in the
Philippines. Beginning in the 1940s, we transformed what was deemed a marginally
useful tract of agricultural land into the thriving, green, and cosmopolitan Makati
business and cultural district of today. Using this breakthrough as our inspiration and
benchmark, we pursue our passion to develop sustainable properties and communities
that will continue to generate greater value over time. By developing premier residential
villages, commercial and residential buildings, industrial business parks, and shopping
and cultural enclaves at multiple price ranges, we inspire Filipinos all over the country to
achieve their dreams. At the core of our brand today is the belief that all Filipinos,
regardless of their station in life, are entitled to a clean and sound environment and a
place they can proudly call their own.
Strategies They Have to Use
Mr. Jaime Augusto Zobel de Ayala II, President and CEO of Ayala Corporation, today
announced that Ayala will pursue a new strategy aimed at delivering increased
shareholder value over the medium-term. Speaking before an audience of foreign and
local institutional investors, Zobel noted that the company needs to be much more active
in the management of its portfolio and that it needs to focus on building new businesses
more aggressively. He also mentioned that the company has in fact already begun to
reorganize itself along these lines. Ayala began its strategy review by taking a hard look at
itself and its reason for existence. "We asked ourselves some very tough questions. Why
have a holding company at all? Why not just let shareholders invest directly in our listed
subsidiaries?," Zobel asked. He went on to add that the traditional model for the Asian
conglomerate is under threat because of the rapid globalization of the product, capital
and talent markets as they face the entry of tough regional and global competitor
 AYA LA LA N D I S M O V I N G
TO PROVIDE MORE FILIPINOS
WITH A BRIGHTER FUTURE

With each community we develop,

With each new estate we build,

With every step,