**CEBU IN OUR HEARTS.** Aboitiz executives share with Cebu media updates and initiatives across the various business units. In photo (from left to right): CitySavings Bank COO Chut Santiago Jr.; Pilmico Country Director Norie Bermudez; AboitizPower Coal Business Unit President and COO Celso Caballero; Visayan Electric President and COO Engr. Raul Lucero; Aboitiz InfraCapital (AIC) President and CEO Cosette Canilao; AIC AVP for Project Development Rafa Aboitiz; AIC Vice President for Economic Estates Cebu Operations Cyel Auza; AIC Head of Water Business Anna Lu; and Aboitiz Construction Vice President for Business Generation and Technical Services Levi Agoncillo.

The century-old history of the Aboitiz Group humbly began with the abaca trade in the Visayas. Over the decades, they have grown into one of the country’s largest diversified businesses, synonymous with trade and industry. Today, Aboitiz dives head-first into the challenges and opportunities of the digital age.

Through its Great Transformation, they are well on their way to becoming the Philippines’ first ‘Techglomerate.’ That means leveraging disruptive technologies as well as reinvigorated team members. With innovation and a renewed entrepreneurial mindset propelling its growth, Aboitiz continues to commit to its mission of advancing businesses and communities, now to thrive in the modern world.

One community in particular remains close to the heart of Aboitiz. As a Cebu-based firm, they recognize the bright and endless possibilities to be found in the region. During a recently held media conference in Cebu, the executives of various Group’s business units, namely AboitizPower, CitySavings, Aboitiz InfraCapital, Aboitiz Construction, Republic Cement, AboitizLand and Pilmico, highlighted their performance and progress, and provided a glimpse of what else the Great Transformation would bring.

AboitizPower

AboitizPower’s 59-MWP solar power facility in San Carlos City, Negros Occidental.

Inspired by its new purpose of Transforming Energy for a Better World, AboitizPower is making great strides in powering progress in the Visayas and the rest of the country.

AboitizPower aims to grow its total generation capacity to 9,200 MW by the end of this decade, half of which will be sourced from renewable energy. To this end, the company is optimizing its existing baseload facilities to meet critical market needs as baseload demand in the Philippines is still expected to increase. AboitizPower is currently exploring different pathways for viable alternatives to coal. The company is looking at a LNG-to-Power project as an alternative to a third unit of Therma Visayas. Luzon will need an average of 600 MW year on year and we are eyeing to fill some of these gaps with LNG-to-Power projects, unless a cleaner technology proves to be the more economical option.

AboitizPower is also working on a 150-MW solar power plant in Calatrava, Negros Occidental, which is in the early stages of development. This is expected to be the company’s second solar plant on the island and its fourth in the Philippines.

The firm’s run-of-river hydro business Hedcor recently inaugurated the country’s first National Operations and Control Center (NOCC), which allows them to manage 21 hydropower plants in Luzon and Mindanao as well as one solar facility in San Carlos City, Negros Occidental.

AboitizPower subsidiary Visayan Electric Co., the second largest distribution utility in the country, has rolled out eBillTXT. This supplemental service allows customers to receive their monthly electric bills via SMS or text messages on their mobile phones, elevating their customer experience. Visayan Electric encourages customers to download MobileAP, a phone-based application that allows them to view their electricity bills, visualize their consumption, and even manage multiple accounts — empowering individuals with information at their fingertips.

Visayan Electric partnered with Global Electric Transport (Philippines), Cebu Leads Foundation Inc., IMI, and Globe Telecom to launch Cebu City’s first e-bus fast charger in Cebu and the Visayas at the Visayan Electric Learning Hub to move people for a better Cebu. Visayan Electric will provide electricity to electric buses rolled out within the City of Cebu.

With these projects and initiatives in place, the company is poised to transform energy to advance businesses and communities.

CitySavings

UnionBank’s thrift subsidiary, City Savings Bank (CitySavings) continues to introduce innovative digital initiatives and relevant products to deliver the best customer experience to the mass market.

As the thrift bank subsidiary of Union Bank of the Philippines (UnionBank) and member of the Aboitiz Group, CitySavings is ramping up its digital transformation to deliver the best customer experience to existing clients and expand to underserved markets. This has been led by the new CitySavings Chairman Henry Aguda, who is also the UnionBank Chief Technology and Operations Officer and Chief Transformation Officer.

While maintaining its lead in the teachers’ salary lending market, CitySavings has grown and diversified its loan program. With regards to affiliate banks, Bangko Kabayan, First Agro-Industrial Rural Bank and Progressive Bank have merged with Bangko Kabayan as the surviving entity. This streamlining provides Bangko Kabayan with a wider reach to offer its MSME products and services nationwide.

As it undergoes its Great Transformation, CitySavings is poised to become the Philippines’ leading digital mass market bank, paving the way for inclusive and sustainable prosperity nationwide.

Aboitiz InfraCapital

Aboitiz InfraCapital (AIC) maintains its purpose-driven approach as it infuses innovation in quality infrastructure projects that spur economic growth and uplift communities.

AIC continues its development of Economic Estates throughout the country. Lima Estate, its largest project in Lipa and Malvar, Batangas, which won a 5-star BERDE-District Certification, is quickly emerging as a center for commerce in the Batangas province. Its 30-hectare Central Business District recently broke ground for new commercial lots and has started the construction of the first office building in its Office Park. In addition, it also broke ground on a 57-hectare industrial expansion early this year. Projects in Mactan Economic Zone 2 Estate and West Cebu Estate are also well underway. A 39-hectare expansion in the West Cebu Estates is ongoing, catering not just to heavy but also light and medium industries for a diversified locator mix. There are also plans for its own commercial business district to start construction in 2023 to include commercial areas as well as housing and dormitories.

The investment in Mactan-Cebu International airport is a vote of confidence for the travel sector, which has been steadily improving in the last few months. The latest MCIA statistics show that they have already welcomed more than 2 million passengers during the first half of 2022.

The company recently entered into a landmark deal with Megawide Construction Corporation (Megawide) and GMR Airports International (GAIBV) for the acquisition of shares in GMR Megawide Cebu Airport Corporation (GMCAC), the developer and operator of the award-winning Mactan-Cebu International Airport (MCIA). As a Cebu-based organization, AIC will be leveraging local knowledge and relationships to support the travel sector, which has been steadily improving in the past few months, and to contribute to the growth trajectory of MCIA and the surrounding communities.

Airport sustainability presents a number of opportunities which the Aboitiz Group companies can leverage, such as using renewable energy sources, sustainable building material and construction techniques, just to name a few. Furthermore, as a champion of innovation and technology, the company will explore the use of Data Science and Artificial Intelligence through Aboitiz Data Innovation (ADI) to tech-up MCIA operations. Through this, AIC will be able to take MCIA to new heights, bringing greater progress to the province, region, and the country.

Aboitiz Construction

Aboitiz Construction continues its expansion into operations in heavy and light industries, infrastructure and maintenance sectors.

Last February, ACI completed the site development works for the future eco-tourism site of Magspeak Nature Park, located in the mountainous area of Balamban, Cebu.

Development work at the Aboitiz Group’s LIMA Estate in Batangas. Once completed, it is expected to generate 22,000 job opportunities.

ACI is also pursuing site development works for the Aboitiz Group’s LIMA Estate industrial land expansion project in Batangas. Once completed, this will accommodate new businesses in the area and generate 22,000 job opportunities. Another key project is the completion of the construction of a 69 kV overhead transmission line project for LIMA EnerZone, which is part of a bigger move to enhance power delivery in LIMA Estate.

In line with the Group’s Great Transformation, ACI recently tapped international visionary consultants Fragile to Agile to design the company’s digital transformation roadmap that will propel them towards becoming the top-of-mind construction company in the country.

Republic Cement

Republic Cement was able to offset its plastic packaging footprint from 2020 to 2022 year-to-date, which is equivalent to over 890 dump trucks of plastic waste.

Over 20 years ago, Republic Cement through ecoloop, its official resource recovery group, pioneered the use of alternative fuel in Philippine cement manufacturing through co-processing. Today, Republic Cement is proud to announce that the company has achieved plastic neutrality, in addition to helping other companies achieve the same.

By collecting and co-processing the equivalent volume of residual plastic waste as what is used in the packaging and transport of its cement products, Republic Cement has been able to offset its plastic packaging footprint for 2020 to 2022 year-to-date. This is equivalent to over 890 dump trucks filled with plastic waste. This achievement of Republic Cement goes to show that doing well by providing high-quality products, and doing good through promoting sustainability, go hand-in-hand in the Great Transformation.

Republic Cement is also actively supporting other organizations in both the private and public sectors in achieving plastic neutrality as well as support in compliance with the newly passed Extended Producer Responsibility Act of 2022.

AboitizLand

An artist's perspective of Foressa Mountain Town, AboitizLand's premier development and the residential component of Aboitiz-owned West Cebu Estate in Balamban, Cebu.

As more and more Filipinos appreciate bigger living spaces and open areas, AboitizLand has met the rise in demand with residential developments outside city centers. As a testament to robust market demand, Foressa Mountain Town in Cebu has launched a new phase offering bigger residential lots. Foressa investors will greatly benefit from the expansion plans of Aboitiz-owned West Cebu Estate and the transfer of the provincial seat of power to Balamban. In Luzon, Meadow Village at The Villages in Lipa, Batangas, is slated to launch in October, offering premium residential lots ranging from 250 sqm to 1500 sqm. Situated in LIMA Estate, investors in Meadow Village are assured of property value growth.

Leveraging on property technology, AboitizLand has been partnering with innovation-forward companies such as SMCC Philippines, for its Japanese precast technology making house construction more efficient and more sustainable. Other construction technologies being pursued include the use of smart block systems, building information modeling, Trimble, and an integrated construction management platform.

Homebuyers and investors can also feel the technological advancements right at their fingertips with the AboitizLand Vecino App. The digitally-enabled contactless home buying service continuously evolves and delivers convenience and safer home buying options. Through a partnership with UnionBank and ADI, an improved customer profiling system and a predictive model that detects construction delay is on its way. With these upgrades, in 2021, AboitizLand achieved its highest sales in its 16-year history, and is poised for more growth as it continues to lead and develop the industry.

Pilmico

Pilmico celebrates being a partner for growth to its customers and stakeholders for 60 years with the goal to offer more innovative and quality products in the future.

This September, Pilmico and Gold Coin Group (Pilmico), the food subsidiary of the Aboitiz Group, celebrates its 60th anniversary. This anniversary milestone also marks Pilmico’s journey towards the Great Transformation. This means continuously finding solutions and opportunities to better serve the lives of its customers through innovative and quality products and services.

Innovation for Pilmico comes in the form of creating solutions to address the specific needs of its customers. Their state-of-the-art facilities such as our meat-cutting facility Tarlac MeatMasters and the newest breeder and nursery farm are equipped with technologically advanced equipment and processes to ensure efficient production. Elite XP, their hog feeds brand, recently reformulated to speed up pigs' efficient growth and productivity to boost local swine production. Furthermore, as pet ownership has increased over recent years, pet foods are becoming one of the most rewarding ventures for Pilmico. Their brand Woofy was reformulated to add more nutrients, like omega fatty acids, in order to create a more balanced diet for dogs, all while maintaining affordability.

At its core, Pilmico continues to be a partner for growth to all customers and stakeholders.