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COVID-19

Aboitiz 100

Features

Column

University of Experience

People & Culture

Wisdom Of Listening To Dissenters

Power

Hedcor Gets Int’l Standards Certifications Amid Quarantines

A Summary Of Charlie Munger's ‘The Psychology of Human Misjudgment’

Banking and Financial Services

Towards A Data-Driven Culture:
PETNET Creates Own Data Analytics Unit

Aboitiz Group Advisory to External Stakeholders regarding COVID-19

2019 Bankers’ Night

2019 Brigada Eskwela Cebu

Aboitiz Eyes

Victor Silva

AboitizPower run-of-river hydropower arm Hedcor received recommendations for ISO
re-certifications from the British Standards Group Philippines (BSi) as
organizations across the world continue to confront a global health crisis.

Hedcor remains steadfast in meeting global organizational standards despite the
limitations and challenges brought about by strict anti-virus measures. With
BSi’s innovative auditing process via digital channels to abide by quarantine
protocols, Hedcor advances its goal to operate efficiently and of utmost
quality.

The power firm has been re-certified for Business Continuity Management System,
Information Security Management System, Quality Management System, and
Environmental Management System.

The ISO 22301:2012 (Business Continuity Management System) certification aims to
safeguard an organization from a wide range of potential threats and
disruptions. It was first awarded to Hedcor Sibulan and Tudaya in 2018. After a
recent three-day surveillance audit, both are recommended for continued
certification with zero nonconformities.

Tudaya 2 Hydro powerhouse in Santa Cruz, Davao del SurHedcor Sibulan and Tudaya,
along with Hedcor, Inc., Hedcor Sabangan and Luzon Hydro Corporation were also
recommended for re-certification with zero nonconformity for ISO 27001:2013
(Information Security Management System). The certification is to ensure
security of the organization’s information assets. This came about after a
two-week recertification audit facilitated by BSi.

BSi has also recommended the continued certifications of the aforementioned for
ISO 9001:2018 (Quality Management System) and ISO 14001:2015 (Environmental
Management System) after two weeks of re-certification audit.

On top of this, the power firm has successfully migrated its Occupational Health
and Safety (OSH) Management certification from the previous OHSAS 18001:2007 to
ISO 45001:2018 as recommended by BSi Group. This upgrade will ensure that Hedcor
updates its OSH practices to align with the new ISO standard on OSH management.

Inside Ampohaw Hydro’s powerhouse. Hedcor’s Ampohaw Hydro is the first
ISO-certified mini hydro plant in the country.In its 42 years in the hydropower
business, Hedcor has always worked towards meeting global standards. Having been
awarded its first ISO certification in the year 2000 for Quality Management
System, Hedcor has since been certified for six ISO certifications throughout
the years.  This is a firm display of Hedcor’s continued efforts towards
excellence and resilience building which is especially important in this time of
uncertainty.


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This story was written by Jessa John delos Santos
[https://aboitiz.workplace.com/profile.php?id=100029604488983].

Notes By EMA | Book Summary Of ‘Journey To The Holocaust’

Jill Ison

To keep COVID-19 infection at bay, Aboitiz Construction team members observe
physical distancing and wear face masks outside an Aboitiz Construction site in
Batangas CityLocal government units and private firms commended Aboitiz
Construction, Inc. for its strict compliance with COVID-19 safety guidelines,
open communication, and close coordination as it continues its business
operations while ensuring a healthy and safe working environment for its team
members (construction workers and regular employees) and stakeholders under a
“new normal.”

Part of Aboitiz Construction’s guidelines to combat the spread of the virus is
actively following government-mandated health protocols and the company’s close
coordination on COVID-19 updates with the local community’s government officials
where the company’s projects are present.

“Aboitiz Construction has established an organized and planned response to
COVID-19. We commend the company for their commitment and support to the City
Health Office of Batangas City, their good communication and optimism in
handling the situation,” said Ruel Arce, Barangay Captain of Barangay Pinamucan
Ibaba, in Batangas City.

The barangay also recognized Aboitiz Construction’s leadership, sharing that the
confidence and collaboration exemplified by construction site leaders have
translated into an outstanding response to the needs of construction workers
while focusing on their safety and health.

> “These strengthened COVID-19 measures of Aboitiz Construction reaffirms the
company’s commitment to maintaining the highest quality and safety standards in
the workplace, ultimately building a better future for its clients,
stakeholders, and team members under this new normal. We remain one with the
country in battling COVID-19, guided by the company’s core values, safety, and
preventive measures set by Aboitiz Group and government institutions,” 
- Antonio Peñalver, Aboitiz Construction Executive Director.
Strict observance of social distancing, wearing of masks and face shields,
assigning of COVID-19 marshals and regular sanitizing are done in project sites
In addition, Aboitiz Construction is working closely with its clients and
stakeholders on-site to properly roll out existing and new safety protocols to
team members. These include regular disinfection of project areas, setting up
isolation facilities, assigning of COVID-19 marshals to control and monitor
physical distancing, and usage of face masks and face shields, among others.

“Aboitiz Construction’s COVID-19 protocols have drastically improved over the
months. The company is compliant in terms of legal aspects, case management, and
emergency response. They have improved their procedures in detection, isolation,
and surveillance,” said Jay Kabamalan, the Field HSSE Manager of Aboitiz
Construction client Technimonth and JGC Philippines Joint Venture.

Isolation Facilities

Macro Lodge & Hotel FacilityAboitiz Construction has also arranged designated
isolation facilities to prevent any possible exposures, break any on-site
COVID-19 transmission chains, and most importantly, to quarantine any possible
team members displaying COVID-19 symptoms.

Its project site in Batangas City has booked 20 hotel rooms with the necessary
amenities to keep Aboitiz Construction team members safe and comfortable during
possible isolation. A Project Nurse and doctors are also available to monitor
the team members’ health.

“Maganda yung napiling hotel, systematic, action agad ang Aboitiz Management sa
mga kailangan mag-isolate,” said Robert Abucay, an Aboitiz Construction team
member.


Daily health monitoring, as well as free food, cleaning materials,
disinfectants, and deodorizers are provided to team members during their stay at
these facilities.

Aboitiz Construction’s Project Nurses in Action inside and outside the isolation
facilities.“I’m blessed, sobra, grabe ang pag care ng Aboitiz. Kakatukin ka lagi
ng health care workers para tignan ka, may kasamang food, sobrang alaga talaga,” 
shared Fortunato Puentenegra, another Aboitiz Construction team member.

When asked about how the Aboitiz Construction management takes care of its
frontline workers tasked to handle probable COVID-19 cases, Project Nurse
Gretchen Solloso shared, “The management has supported us, provided and equipped
us with the resources needed to do our job safely; above all, the management has
hired enough manpower of health workers in the site to ensure balanced workload
while tending for the welfare of all team members.” 


About Aboitiz Construction: 

Aboitiz Construction, Inc. is the construction arm of the Aboitiz Group of
Companies, with a 45-year track record in delivering projects for its local and
international customers in the industrial, infrastructure, and specialty works
industries.


To date, the Aboitiz Group’s total contribution to the national COVID-19
response effort has reached over P2.2 billion (excluding various payments
waived, reduced, extended, or restructured to help customers cope with the
impact of COVID-19), underscoring the group’s sustained campaign to help address
the urgent needs of frontliners and affected communities nationwide.

Construction

Construction Under A New Normal: Stakeholders Laud Aboitiz Construction For Effective COVID-19 Protocols

The following are EMA's key takeaways from a talk by Charlie Munger delivered at
Harvard University in June 1995.


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Enrique Aboitiz Mendieta
09 2020

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> Fairly late in life, I stumbled into this book ‘Influence’ by Bob Cialdini...and
that filled in a lot of holes in my crude system.
– C. Munger
What is being laid out is a copied summary. I hesitate to comment on them as we
are after learning and prefer not to risk offending anyone who may feel
particularly averse to what they hear.

 1.  Understand the power of incentives
 2.  Psychological Denial – You will find mothers of the most obvious criminals
     who think their sons are innocent. Every father thinks their daughter is
     the prettiest and there are monsters out there.
 3.  Incentive-Caused Bias – Caused plus mindset leads to abuse
 4.  Bias from consistency and commitment tendency – Educational institutions
     are in some senses irresponsible
 5.  Bias from Pavlovian association – 3/4 of advertising works on pure Pavlov;
     Persians did kill the messenger who brought them bad news
 6.  Bias from reciprocation tendency – What you think may change what you do
     and you, and what you do will change what you think
 7.  Lollapalooza – One oil company bought a fertilizer plant and every other
     major oil company practically ran out and bought a fertilizer plant—a total
     disaster
 8.  Better to be roughly right than precisely wrong
 9.  Bias from contrast-caused distortions of sensation, perception, and
     cognition – It takes a percentage changed before one notices so the frog
     stays in the warm water as the heat is elevated and dies in it
 10. Bias from over-influence by authority – Hitler succeeded before he failed
 11. Bias from deprival super-reaction syndrome – People are crazy about minor
     decrements down and can reciprocate animosity and things can escalate;
     overweighing the importance of what is lost and things do not get done or
     less gets done; New Coke, some smart people make these terrible boners
 12. Bias from envy/jealousy – They made two of the ten commandments, "It’s not
     greed that drives the world, but envy"
 13. Bias from chemical dependency
 14. Bias from mis-gambling compulsion – People think that if they have
     committed to it, it has to be good; they thought it, they acted on it and
     so it gets extra validity
 15. Bias from liking distortion – Especially like oneself, one's kind and one's
     ideas and the tendency to be especially susceptible to being misled by
     someone liked and the opposite, disliking distortion bias
 16. You're getting advice in this world from your paid advisor with his huge
     load of ghastly bias, a woe to you.
 17. You can learn the basic elements of your advisor's trade.
 18. What this needs is more management consulting!!!
 19. Bias from non-mathematical nature of the human brain in its natural state
 20. A tendency to overweigh conveniently available information
 21. Availability changes behavior, which both Coca-Cola and the Catholic Church
     use as a strategy to alter behavior in their direction
 22. Coca-Cola has raised availability to a secular religion — you will drink a
     lot more Coke if it's always available
 23. What else distorts judgment?
 24. Caution with human sympathy – “I never did it before, I'll never do it
     again”
 25. Vengeance is a waste of time
 26. Bias from over-influence by extra-vivid evidence
 27. Creating sound generalizations developed in response to the question ‘why?’
 28. Failure to obtain deserved influence by not properly explaining why or
     getting the ‘why’ wrong; a ‘why’ in which people do not believe is not a
     ‘why’
 29. Array the facts on the theory structures answering the question ‘why?’, if
     you do not do that, you just cannot handle the world
 30. Other normal limitations of sensation, memory, cognition, and knowledge
 31. Stress-induced mental change, small and large, temporary and permanent
 32. Can reverse condition personality
 33. Psychological ignorance in very high places
 34. Common mental illness and decline
 35. Temporary and permanent
 36. The tendency to lose ability through disuse
 37. Development and organizational confusion from the say-something syndrome
 38. Noise of the say-something syndrome

Institution of the Board of Directors
 * Caution reciprocation tendency
 * A CEO doing asinine things and no one objecting
 * Until things start getting bad and the board is being made to look foolish or
   a threatening legal liability appears

Institution of Voting
US Constitutional Convention – It is secret, not vote until the whole vote, then
just one vote on the whole constitution. If different, everybody would have been
pushed into a corner by his pronouncements and his oratory.

Institution of Training
Watch one, do one, teach one.

Granny Rule
You do not get ice cream until you eat your carrots.
All forced to do what’s unpleasant and important and then rewarded by doing
something you do not like doing.

Post Morten: Johnson & Johnson
 1. Everybody must revisit their old acquisitions and wade through the
    presentations.
 2. Do it routinely.
 3. For most companies, disasters are quickly forgotten—denial.

Open-Cry Auctions – Do not go!

ABOVE ALL, BE RATIONAL!

Listen to the speech via the YouTube video below:


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University of Experience is a new Aboitiz Eyes section that features leadership
discussions drawn from the unique experiences, perspectives, and wisdom of
leaders who have stood at the helm of Aboitiz through the years.

If you enjoyed this article, would like to suggest a topic, or share your
feedback, please CLICK HERE
[aboitiz.eyes@aboitiz.com?subject=UXP%20Reader%20Feedback%20].
[aboitiz.eyes@aboitiz.com?subject=UXP%20Reader%20Feedback%20]

In adopting a “data-first” mindset, the Aboitiz Group has integrated data
science across the development stages of business strategies, from ideation to
production. This means data is becoming more democratized and, therefore, making
the practice of responsible control over sensitive resources securely at the
center of every process.

Initiatives involving data across Aboitiz are, in the spirit of #OneAboitiz, a
seamless exchange of business insights while fully adhering to pertinent
regulatory requirements. Beyond compliance to the Data Privacy Act and other
relevant data protection laws, the company ensures the responsible
democratization and governance of data, especially customer data, by embedding
sound data governance measures in handling consumers’ personal information for
all data science solutions projects and initiatives.

Signing of data sharing agreements not only facilitates the accountable
collection, use, processing, and disclosure of personal information, but also
enables free-flowing of data among teams and functional groups across the
organization.

> True to our value of Responsibility, we emphasize on the importance of following
rules in the way we collect, use, process, share, and dispose of personal data.
That is why every sharing and disclosure of personal data within the Aboitiz
Group follows a signed and agreed data sharing arrangement spelling out the
details of the responsibilities in handling personal data in the pursuit of our
goal to create long term value for our stakeholders. 

– Atty. Cyril Arnesto, Associate General Counsel – Compliance, AEV
UnionBank understands that data sharing agreements informs its decisions and
allows it to provide better customer service as these provide a framework on the
data use, and clearly outline the key process involved.  This is why in
UnionBank, a data sharing agreement was executed between various counterparts
within the banking group in order to establish a multi-tiered arrangement
covering shared services for data science solutions and acceptable business
initiatives in compliance with privacy and banking laws and regulations.

> Ethical and responsible management of customer data cannot exist without
informing data subjects in a concise and easily accessible way of how their data
is held and used. Data sharing enables alternative credit scoring and financial
inclusion of the ‘unbanked’.

– Maria Francesca Montes, Data Protection Officer, UnionBank
The hyperpersonalized digital universe produces an offering of new financial
solutions and services, which has also pushed corporations to collaborate with
one another in order to more effectively leverage data’s full potential and
offer customers greater customization and better products and services. This is
the driver for data sharing; but for the Aboitiz Group, we call it responsible
and ethical data sharing by maintaining transparency, establishing
accountability, and ensuring customer privacy and due diligence through
enforceable contracts.

As the Aboitiz Group’s digital transformation continues, there is an increasing
need to share knowledge on the evolving landscape of data management, the
essential elements of appropriate data governance, and how consumers can better
manage their data—all aimed at making consumer data protection more robust. This
groupwide collaboration and exchange of business insights leads to new
opportunities between business leaders, reduced inefficiencies, and increased
bottom lines.

Aboitiz Group Ensures Responsible Governance In Data Collaboration

The Aboitiz Group and the private sector have heeded the call of the United
Nations Global Compact (UNGC) to mobilize support for micro, small, and medium
enterprises (MSMEs) worldwide amid the COVID-19 pandemic by helping achieve 10
key industry goals in 10 years.

The UNGC is considered the world’s largest corporate sustainability initiative,
a commitment of the private sector to do good business through Ten Principles
and to align their corporate strategy to the achievement of the UN Sustainable
Development Goals (SDGs).

“While COVID-19 has created an immense negative impact on societies and
economies around the world, it also afforded countries like the Philippines an
opportunity to accelerate progress toward collaborative solutions to the
development issues the virus has created or exacerbated,” DJ Sta. Ana, Aboitiz
Equity Ventures, Inc. Chief Corporate External Relations Officer, shared with
participants at the UNGC Annual Sustainability Summit, a high-level
sustainability meeting between business leaders and government ministers.

Held last November 5, the summit (with the theme “Uniting  Business for MSME
Recovery and Resilience”) culminated in the “10-Year, 10-Point Business Ambition
for SDGs in the Philippines (10 in 10),” a joint commitment to take action
toward supporting MSMEs.

The Aboitiz Group was part of the “Prosperity” expert group meeting
presentation, where MSME financing and government stimulus, supply/value chain,
business continuity management, diversification and market access, and digital
transformation were discussed.

> In support of the country’s move toward digital transformation, we stand ready
to collaborate with partners in strengthening industrial policies;
infrastructure development and establishment of an innovation ecosystem;
development of a skills and re-tooling strategy for human resources; supporting
curriculum development; facilitating MSME access to finance and technologies;
and creating awareness.

– DJ Sta. Ana, Chief Corporate External Relations Officer, AEV
The 10-in-10 Business Ambitions encompass five priority areas: “Chains” (supply
and value chains), “Community” (the important role of human capital and skills
development), “Competitiveness” (adopting innovative approaches), “Clean”
(decoupling environmental degradation from economic growth), and “Collaboration”
(no one should be left behind in progress).

“While the world has made great strides in achieving some of the 17 SDGs,
progress on others has however stalled or even reversed. With the SDGs and the
10 principles of the UNGC as our guide, I believe it is possible to recover
better together and build more resilient small enterprises. I look forward to
not just continuing, but accelerating these efforts with our networks and
participating businesses in the Philippines,” said Sandra Ojiambo, UNGC CEO and
Executive Director.

AEV Chief Corporate External Relations Officer represented the Aboitiz Group at
the GCNP Sustainability Summit and shared key points from the "Prosperity"
discussions of the Business Expert Group Meetings held in October.In September,
Aboitiz Group President and CEO Sabin M. Aboitiz joined over 1,000 CEOs from
more than 100 countries in signing the UNGC Statement for Renewed Global
Cooperation (related story here
[https://aboitizeyes.aboitiz.com/post/sma-joins-global-ceos-in-renewed-cooperation-for-un-sdgs]
), urging further collaboration with the public and private sectors in the face
of the ongoing COVID-19 pandemic.

Further, the Aboitiz Group earlier reaffirmed its commitment to operate its
businesses with a sustainability mindset that upholds best practices in
environmental management, social responsibility, and good governance while
ensuring long-term financial growth and business capability.

With the Group’s involvement in critical sectors such as energy, banking, food,
real estate, infrastructure, and construction, Aboitiz’s commitment to
sustainability is at the core of its business operations.

Sustainability

Aboitiz Group, Global Compact Network PH Commit To MSMEs Recovery From COVID-19

PETNET, in its constant pursuit of ways to improve services to its communities,
sees the need to eliminate risks and predict market trends as a major challenge.
To address this, the organization began to build a data analytics team that will
maximize the potential of its big data — mostly composed of customer and
transaction data — and, ultimately, help establish a data-driven culture.

The Challenge
The beauty of PETNET’s business is that it is a data-rich organization. The
challenge, however, was how the company can actually use that data to better
grow the business.  The vision was clear: get minor to major decisions derived
from these data and information. With data analytics, PETNET aims to be ahead of
its competitors while being efficient in maximizing the resources available. 

The Journey
As businesses are compelled to adapt innovation and technology at a much faster
pace, PETNET started with redeveloping systems and processes when it became part
of the Aboitiz Group in 2015. One major initiative was to build an analytics
team as PETNET takes a more active role in the Group’s continuing digital
transformation. The team's data scientists and analysts are tasked to squeeze
information to discover new opportunities.

Among the company's primary goals is to ensure that people are data driven and
analytically capable in running the business. Understanding that data analytics
will be a major factor in the business operations, PETNET is determined to take
advantage of technologies that will ensure a better future for the company. 

The Solution
The early months since the formation of the Data Analytics unit proved to be
beneficial as it helped the organization in reading trends and presenting data
into simplified reports while drawing up insights to make data-driven and
informed decisions. It started off with the PERA HUB mobile app project wherein
the team was tasked to create a data dashboard, which identified customer
profiles and potential target customers. 

The Data Analytics team introduced Qlik as a tool and reference for data
insights, analysis and recommendations. PETNET uses Qlik dashboards as a
powerful and efficient way to track and analyze real-time information within the
organization.

For the mobile app, the dashboard included a tracker tool showing its monthly
performance along with other essential information, which provides the app's
working group with better guidance on activities that help them to achieve
business objectives. 

Interface of PETNET's dashboard tool for the mobile appPETNET’s usage of the
Qlik tool, allows data within business units to be centralized, updated in
almost real-time and easily visualized for presentations. Qlik dashboards are
easy to customize when meeting the specific needs of a team. As an information
management tool, it helps in visually tracking, analyzing, and displaying key
performance indicators (KPIs), metrics, and key data points to monitor the
health of a product, service, department, or specific process in the
organization. The dashboard connects to PETNET’s big data and presents it in the
form of tables, charts, and indices. This also serves a central source for the
PETNET team members to monitor and analyze performance, saving time on analyzing
and coordinations that previously challenged the company. 

Since introducing the analytics tool, PETNET has been training and enhancing
team members' data analytics capabilities across the organization. Now,
different departments are building dashboards set to their data needs towards
empowered analyses. Exciting times ahead for this group as they continue to
expand and advance in the field of data analytics.

Aly Virrey

West Cebu Industrial Park (WCIP) is a 540-hectare mixed-use development in
Balamban, Cebu, which hosts 11 locators from medium to heavy industries.Cebu
Industrial Park Developers, Inc. (CIPDI)—a joint venture between the Aboitiz
Group and the Tsuneishi Group of Japan— is set to expand West Cebu Industrial
Park (WCIP) to take advantage of strong demand from foreign and local locators
for industrial spaces.

WCIP is currently a 540-hectare mixed-use development, anchored by a 283-hectare
Philippine Economic Zone Authority (PEZA) registered zone that has complementary
commercial, institutional, and residential components. It hosts 11 locators from
medium to heavy industries, some of which are the biggest shipbuilding firms in
the world, making Balamban the Shipbuilding Capital of the Philippines.

WCIP is strategically located in the west side of Cebu, known to be a major
industrial belt with its proximity to various access points. It is accessible by
land via the Transcentral Highway and South Coastal Road via Manipis Road or
Naga City from the province’s capital, as well as sea through a private shipping
port for common logistics support.

To help support locators’ manpower requirements, nearby is the Balamban Campus
of the University of San Jose-Recoletos, which offers basic education up to
Senior High level, and Don Bosco Balamban Technological Center, which offers
skills training programs on welding (arc and smaw), practical electricity,
sewing, automotive mechanic, and soon AutoCAD.

Like other Aboitiz Integrated Economic Centers, WCIP is thoughtfully planned and
masterfully designed so people can work, live, and play within a secure,
interconnected, and engaging environment.

Tsuneishi Heavy Industries started developing land and construction of
shipbuilding facilities in 1994. Today, it has grown to become one of the
largest shipbuilding factories in the Philippines with the capacity to build
about 20 vessels per year.With the proposed new development, WCIP is set to grow
by an additional 30 hectares over the next three years. It will allow for more
industrial spaces, commercial centers, transport terminals, dormitories, and
even leisure components for tourists. New locators and businesses that will be
brought in are expected to yield up to 5,000 new jobs for the community.

> Our vision is to transform WCIP into a fully integrated economic center that
will spur further economic growth in the area, similar to our two developments
LIMA Estate in Batangas and Mactan Economic Zone II in Lapu-Lapu City, Cebu.
With its strategic location, skilled population, lower cost of doing business,
and well-established ecosystem of infrastructure, we believe that WCIP is the
ideal location for light, medium, and heavy industries looking to expand or
locate in Cebu.

– Rafael Fernandez De Mesa, First Vice President for Operations, Aboitiz
Integrated Economic Centers.
With the expansion on the horizon, CIPDI has been in talks with several
potential locators amid the pandemic for the last few lots in WCIP’s existing
inventory. These are among the only PEZA-proclaimed inventory left in Cebu. It
recently landed Advanced Catamaran Composites, its third shipbuilding firm,
which is targeting to start its operations in the first quarter of next year.

> We are excited to have Advanced Catamaran Composites as our newest locator in
the West Cebu Industrial Park. With our 30-hectare expansion set to break ground
next year, we are hoping to attract more locators to Balamban. At Aboitiz, we
are committed to making lasting partnerships with our locators by ensuring the
ease of doing business and providing them with fully integrated solutions of
infrastructure services such as power, water, and land. WCIP is only set to grow
further, and now is the perfect time to invest here.

– Eduardo Aboitiz, Vice President for Business Development, Aboitiz Integrated
Economic Centers.
In 1992, Balamban, Cebu was a simple coastal town which transformed into a
first-class municipality when CIPDI began operations in the area to develop
WCIP.

The initial success of WCIP enabled the estate to grow from 202 to 540 hectares.
More than 14,000 skilled workers are being employed by its industrial and
commercial locators. The expansion hopes to continue WCIP’s growth story and
turn Balamban into a vibrant city.

As a Special Economic Zone, import and export businesses in WCIP enjoy tax
incentives and other privileges. It also offers a secure location and ease of
doing business.For more information on WCIP’s industrial lot offerings, email 
sales.leasing@aboitiz.com.

Infrastructure

West Cebu Industrial Park's Expansion Set To Create 5,000 New Jobs

Jomes Kemuel Ibanez

By Theresa Clare Tanas

City Savings Bank, Inc. (CitySavings) bagged the Philippines Best Employer Award
2020 from one of Asia’s prominent award-giving bodies, recognizing the Bank’s
commitment to providing outstanding customer experience by continuously building
high levels of employee engagement and exceptional workplace culture.

The award was conferred last October 10 by the Employer Branding Institute -
India via a virtual awarding ceremony during the 15th Employer Branding Awards.

It is given to organizations that have used effective human resources strategies
in managing talents and building competencies for the future.

CitySavings Human Resources Head Hannah Contreras considered this recognition as
a testament to every City Savings Banker’s shared purpose of delivering value to
people of moderate means.

She emphasized that this award “brings the organization pride and affirmation
that City Savings Bankers are doing their part in elevating the lives of their
customers.”

“It strengthens our commitment to deliver purposeful and relevant service to our
customers and the community.  It reinforces our belief that the services and
solutions we provide make a difference in the lives of those whom we serve,” she
said.

Contreras also highlighted the significance of CitySavings’ culture of high
collaboration and teamwork in bringing value-driven banking services to the
underserved.

> City Savings Bankers are driven by our purpose to serve people of moderate
means. It energizes and drives us to continue to do more, do better, and do
greater as we pursue our purpose of enabling financial inclusion and inclusive
prosperity. 

- Hannah Contreras, Human Resources Head, CitySavings
“Our customers can expect that we will continue to innovate, improve, and
enhance their experiences with CitySavings so that we remain a strong partner to
them and the community," Contreras added.

Winners in this year’s Employer Branding Awards were comprehensively researched
and assessed by the former dean of the Indian Institute of Management, Ahmedabad
(IIMA) Dr. Indira Parikh. The IIMA is a prestigious and topmost business
education institute in India.

The Employer Branding Institute is a virtual global organization composed of
several senior HR leaders from over 36 countries known for their contributions
to employer branding and talent innovation practices.

CitySavings Wins Big At Asia’s Employer Branding Awards 2020

Aboitiz Equity Ventures (AEV) reported a net income of PHP8.3 billion from
January to September this year, 47% lower than the PHP15.7 billion recorded
during the same period last year.
The company recognized non-recurring losses of PHP5 million, versus the PHP155
million in non-recurring losses recorded during the same period in the previous
year. Without these one-off losses, AEV’s core net income for the first nine
months of 2020 was PHP8.3 billion, 48% lower than the PHP15.9 billion recorded
in the corresponding period last year. AEV recorded consolidated EBITDA of
PHP38.8 billion during the first nine months of 2020, a 13% decrease from the
PHP44.8 billion recorded in the same period last year.

Power accounted for 49% of the total income contributions from AEV’s Strategic
Business Units (SBU) during the first three quarters of 2020, while Banking and
Financial Services accounted for 39%. Income contributions from Food,
Infrastructure, and Land SBUs were at 9%, 3%, and 1%, respectively.

Visayan Electric linemen at work> The first nine months of the year brought about
unprecedented challenges that truly tested the resilience of the nation and the
Aboitiz Group as well. We saw some signs of recovery in the third quarter, but
we will continue to operate with caution and focus on providing the country with
the services it needs to cope and recover.

Moving forward, we expect our environmental, social, and governance initiatives
will help us achieve our targets by the end of the decade and in the years to
come. Digital innovation played an important role in helping us cope with this
year’s challenges, and will continue to enable us in the future.

The Aboitiz Group will continue to support the government in addressing our
country’s needs under a ‘better normal.’ As One Aboitiz, it is important that we
stay agile, self-motivated, and collaborative moving forward in order to advance
business and communities and create long-term value for all our stakeholders.

– Sabin M. Aboitiz, President & CEO, Aboitiz Group
POWER 
Aboitiz Power Corporation’s (AboitizPower) net income contribution to AEV for
the first three quarters of 2020 decreased by 48% YoY, from PHP10.4 billion to
PHP5.4 billion. 

On a stand-alone basis, AboitizPower’s core net income for the first nine months
of 2020 was PHP6.5 billion, 53% lower than what was recorded in the same period
last year. Including non- recurring gains of PHP528 million, AboitizPower’s net
income for the first three quarters of 2020 was PHP7.0 billion, 48% lower YoY.

> The pandemic has significantly impacted our financial performance, but we have
sustained the delivery of the much-needed energy products and services to our
customers and our communities. We continue to carry out our initiatives to
ensure the availability, reliability, and efficiency of our power plants and
distribution units. Despite the challenges and uncertainties, our growth
strategy for the next 10 years remains the same — to significantly grow our
renewables portfolio and shift our overall energy mix into an almost 50:50
Cleanergy and thermal capacities by 2030.

– Emmanuel V. Rubio, President & CEO, AboitizPower
BANKING AND FINANCIAL SERVICES 
The income contribution of Union Bank of the Philippines (UnionBank) to AEV for
the first three quarters of 2020 amounted to PHP4.3 billion, 2% higher than the
PHP4.2 billion recorded in the same period last year. 

On a stand-alone basis, UnionBank and its subsidiaries recorded net income of
PHP8.5 billion in the first nine months of 2020, 1% lower than the PHP8.6
billion recorded in the corresponding period last year. This was mainly due to
higher provisions for loan losses set aside for 2020. Net interest income grew
to PHP21.4 billion, 36% higher YoY, due to higher earning assets and margins
compared to the same period in 2019, while non- interest income was PHP10.4
billion, up 26% YoY, mainly due to higher trading gains.

UnionBank team members at the bank’s headquartersOne of Pilmico’s overseas feeds
facilities in VietnamFOOD 
AEV’s non-listed food subsidiaries’ (Pilmico Foods Corporation, Pilmico Animal
Nutrition Corporation, and Pilmico International Pte. Ltd. — which includes Gold
Coin Management Holdings Pte. Limited) income contribution to AEV amounted to
PHP969 million for the first three quarters of 2020, 5% lower than the PHP1.0
billion recorded in the same period in 2019.

LAND
AEV’s non-listed real estate businesses, comprising AboitizLand, Inc.
(AboitizLand) and its subsidiaries, reported a consolidated net income of PHP85
million for the first nine months of 2020,90% lower than the PHP829 million in
income recorded in the same period last year.

AboitizLand contributed PHP2.1 billion in revenues for the first three quarters
of 2020, 2% higher than revenue contributions from the same period in 2019. Of
AboitizLand’s revenue for the first three quarters of 2020, the residential
business unit contributed PHP715 million, the commercial business unit
contributed PHP159 million, while the industrial business unit and other
subsidiaries contributed the remaining PHP1.3 billion, equivalent to 33%, 7%,
and 60%, respectively.

AboitizLand’s Kishanta residentialBohol-Panglao International Airport which
Aboitiz InfraCapital is seeking to upgrade, expand, and operateINFRASTRUCTURE 
For the Infrastructure group, Republic Cement & Building Materials, Inc.
reported a net income of PHP400 million to AEV for the first nine months of
2020, 37% lower compared to the PHP631 million in net income recorded during the
same period last year. This negative variance was mainly due to the contraction
in the demand for cement as COVID-19 dramatically slowed down construction
activities, particularly during the enforcement of COVID-related community
quarantines.

Corporate Center

AEV Earns PHP8.3 Billion
In First Nine Months Of 2020

Telecommunications companies Globe Telecom, Inc. and DITO Telecommunity
Corporation have partnered with Aboitiz InfraCapital, Inc. for small cell
deployments to help boost their respective network capacity and coverage.

To date, under separate lease agreements, the two telcos have deployed small
cells across Aboitiz InfraCapital’s pole network in Cebu and Davao.

Globe Chief Finance Officer Rizza Maniego-Eala said, “The partnership with
Aboitiz InfraCapital will complement the company’s target expansion and ensure
we sustain the momentum of our aggressive network build.”

The Aboitiz Group’s infrastructure arm expects significant increase in pole
leases within the next two years as telcos prepare for 5G deployment. This would
need antenna densification to provide users with large data quantities at higher
speeds.

> While forging strong partnerships with telcos like Globe and DITO, we are also
looking at growing our small cell sites beyond our current footprint as we
anticipate the increased demand from telcos and other internet service providers
(ISPs). We are particularly keen on expanding in other key urban cities in
Visayas and Mindanao, where network congestion is a primary issue that hampers
service quality. 

– Rafael Aboitiz, Project Development Manager, Aboitiz InfraCapital
Heeding the government’s call to help improve the Philippine’s Information and
Communications Technology (ICT) infrastructure, Aboitiz InfraCapital announced
earlier this month that it is venturing into the small cells sites business in
addition to its common tower project.

The company is offering its sites nationwide to support telcos and ISPs with
their wireless network capacity and coverage.

A small cell network is a series of small low-powered, short-ranged antennas
that provide coverage and capacity, meant to work in conjunction with macro cell
towers. Similar to the common towers business model, telcos and ISPs can
co-locate small cell attachments in Aboitiz InfraCapital’s pole network, thereby
helping fast-track expansion, increase service reliability, reduce costs, and
lessen redundant sites.

While significant upgrades have been made in recent years, the country still has
a long way to go to address network quality, particularly for internet speeds.
According to Speedtest by Ookla, mobile internet speed in the Philippines for
September 2020 is ranked 119th in the world with an average download speed of
16.89 Mbps compared to the global download average of 35.96 Mbps.

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