Overview
Ayala
Corporation (the Company or Ayala) is the holding company of one of the
oldest and largest business groups in the Philippines that traces its history
back to the establishment of the Casa Roxas business house in 1834. The
Company was incorporated in January 23, 1968. The Company is organized as a holding
company holding equity interests in subsidiaries, associates and joint
ventures that compose the Ayala Group (the Group). The Group was initially
primarily focused on real estate, banking and insurance. In recent years, Ayala’s business activities continued to develop to
include: (a) real estate, (b) financial services, (c) telecommunications, (d)
water infrastructure, (e) electronics manufacturing, (f) power generation (g)
transport infrastructure, (h) automotive, (i) international real estate (j) healthcare,
and (k) education. In 2016, a new initiative was launched – the establishment
of industrial technologies group that will integrate the electronics
manufacturing, automotive and potential investments in complementary
industrial technologies. Ayala’s real estate business is primarily conducted
through its subsidiary, Ayala Land, Inc. (“Ayala Land” or “ALI”), a
diversified real estate company in the Philippines. Its involvement in
financial services is through an affiliate, the Bank of the Philippine
Islands (“BPI”), which, together with its subsidiaries (together, the “BPI
Group”), form a universal banking group in the Philippines. Ayala’s telecommunications
business is carried out through an affiliate, Globe Telecom, Inc. (“Globe”),
a leading telecommunications companies in the Philippines. Ayala’s investment
in water infrastructure is under Manila Water Company, Inc. (“Manila Water”
or “MWC”). Its international business in electronics manufacturing services
is under Integrated Micro-Electronics, Inc. (“IMI”). Ayala’s automotive
dealerships are under AC Industrial Technology Holdings Inc. (“AC
Industrials”) formerly Ayala Automotive Holdings, Corp., while its interests
in international real estate assets are held under AG Holdings. Ayala’s recent
investments in the power sector are held under AC Energy Holdings, Inc.
(ACEHI), while its first toll road project (the 4-kilometer Daang-Hari
connector road to the South Luzon Expressway) is held under the parent
company. The Company has established AC Infrastructure Holdings Corp.
("AC Infra") as its vehicle for transport infrastructure related
investments. Ayala’s investment in healthcare is conducted through Ayala
Healthcare Holdings (“AC Health”) while its education business is operated
through Ayala Education, Inc. (“AC Education”).
Business
Revenue contribution in 2016 (in million pesos)
Parent
|
Real
Estate
|
Financial
|
Telco
|
Water
|
Electronic
|
Power
|
Automotive
|
2,239
|
124,528
|
10,637
|
4,754
|
15,292
|
1,937
|
2,724
|
1,441
|
1.37%
|
76.14%
|
6.5%
|
2.91%
|
9.35%
|
1.18%
|
1.67%
|
0.88%
|
For management purposes, the Group is
organized into the following business units:
Parent Company represents
operations of the Parent Company including its financing entities such as
ACIFL, AYCFL, PFIL and MHI.
Real estate and hotels is involved
in planning and development of large-scale fully integrated mixed-used communities
that become thriving economic centers in their respective regions.
Financial services and insurance is engaged in commercial banking operations with expanded banking
license.
Telecommunications (Telecoms) is
a provider of digital wireless communications services using a fully digital
network; domestic and international long distance communication services or
carrier services; broadband internet and wireline voice and data
communication services.
Water infrastructure is a contractor
to manage, operate, repair, decommission, and refurbish all fixed and movable
assets (except certain retained assets) required to provide water delivery,
sewerage and sanitation, distribution services, pipeworks, used water
management and management services.
Electronics manufacturing is a
global provider of electronics manufacturing services (EMS) and power semiconductor
assembly and test services with manufacturing facilities in Asia, Europe, and
North America. It serves diversified markets that include those in the
automotive, industrial, medical, telecommunications infrastructure, storage
device, and consumer electronics industries.
Committed to cost-effective and innovative
customized solutions (from design and product development to manufacturing
and order fulfillment), the company's comprehensive capabilities and global
manufacturing presence allow it to take on specific outsourcing needs.
Power generation is a unit
that will build a portfolio of power generation assets using renewable and conventional
technologies which in turn will operate business of generating, transmission
of electricity, distribution of electricity and supply of electricity,
including the provision of related services. It has stake in South Luzon
Thermal Energy Corporation, GNPower Mariveles, South Luzon Thermal Energy
Corporation. It is also investing in Indonesia power project.
Automotive, IT/BPO and Others includes
operations of Automotive unit’s business on manufacturing, distribution and
sale and providing repairs and services for passenger cars and commercial
vehicles. In 2016, this unit launched initiatives to include industrial
manufacturing activity for long-term synergy and integration with automotive
business. Ayala Automotive renamed AC industrials Technology Holdings Inc. The subsidiary will
continue to hold the Ayala group’s automotive distributorship interests,
which include the 13 percent stake in Honda Cars Philippines, Inc. (HCPI),
the 15 percent stake in Isuzu Philippines Corp. (IPC), and the wholly owned
interests in Automobile Central Enterprise Inc. (ACEI), the official
Philippine importer and distributor of Volkswagen, and in Adventure Cycle
Philippines Inc. (ACPI, 100%), the official motorcycle distributor of KTM
(67% of KTM Asia Motorcycle manufacturing, Inc.) in the Philippines. This segment also includes the Information Technology and BPO
services unit (venture capital for technology businesses and emerging
markets; International unit (investments in overseas property companies and
projects); Aviation (air-chartered services); consultancy, agri-business and
other operating companies. This business segment group also includes the
start-up companies like Infrastructure (development arm for its transport
infrastructure investments); education, human capital resource management and
health services (50% stake of Generika drug store, etc).
Subsidiaries / Affiliates / Join Ventures
Ayala Land, Inc (ALI, 47.2%)
Ayala Land, Inc. is the real estate arm of
the Ayala Group. Its defining project was the development of a planned
mixed-use community on 930 hectares of swamp and grassland in the Makati
district of Metro Manila. It will be discussed in a separate section since
it’s also a Publicly Listed company.
AC Industrial Technology Holdings Inc. (formerly Ayala Automotive
Holdings Corp., 100%)
INTEGRATED MICRO-ELECTRONICS, INC.(IMI, 50.64% by
AC Industrial)
Established
in 1980, Integrated Micro-Electronics, Inc.
(alternately referred to as IMI or “the Company” in the entire
discussion of Integrated Micro-Electronics, Inc), has grown into a global
company offering core manufacturing capabilities as well as higher value
competencies in design, engineering, prototyping and supply chain management.
IMI is a vertically integrated EMS provider to leading global original equipment manufacturers (“OEMs”) across industries
including computing, communications, consumer, automotive, industrial and
medical electronics segments, as well as emerging industries like renewable
energy. IMI also provides power semiconductor assembly and test services. It will be discussed in a separate section since it’s also a
Publicly Listed company.
Manila Water Company, Inc.(total 51.6%)
Manila
Water Company, Inc. (MWC) holds the exclusive right to provide water and used
water services to the eastern side (“East Zone”) of the
franchise area of the Metropolitan Waterworks and Sewerage System pursuant to
the Concession Agreement entered into between the Company and MWSS on
February 21, 1997. The original term of the concession was for a period of
twenty five (25) years to expire in 2022. The
Company’s concession was extended by another fifteen (15) years by MWSS and the Philippine
Government in 2009, thereby extending the term from May 2022 to May 2037. It will be discussed in a separate section since it’s also a
Publicly Listed company.
Bank
of the Phil. Islands (BPI, total 48.2%) and Globe Telecom (GLO, 31%)
They
are significant associate and joint venture of the Ayala Corporation. . It will be discussed in a separate section since they are also
Publicly Listed companies.
Ayala Healthcare Holdings, Inc. (100%, formerly Ayala Technology
Inv., Inc) holds 50% of Generika group.
AC Energy Holdings, Inc. (100%) has stakes in Northwind Power development corp., South Luzon
Thermal Energy Corp. (35%), GNPower Kauswagan, GNPower Mariveles, GNPower
Dinginin, etc.
AC Infrastructure Holdings Corp. (100%) holds 35% of Light Rail Manila Corp. (LRMC), 50% of CALAx Project,
50% of LRT 2 project, 50% of LRT 6.
Liontide Holdings Inc. (73.8%)
Ayala Education, Inc. (100%)
AG holdings Ltd.
(100% through Bestfull HLDGS LTD.)
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