Ayala Corporation

For its real estate subsidiary, see Ayala Land.
Ayala Corporation
Public (PSE: AC)
Founded Manila, Philippines (1834)
Founder Domingo Róxas and Antonio de Ayala
Headquarters Makati City, Philippines
Key people
 Jaime Augusto Zóbel de Ayala (Chairman and CEO)
Fernando Zóbel de Ayala (President and COO)
Revenue PHP94 billion (2011) [1]
PHP15.7 billion (2011) [1]
Slogan Pioneering the Future
Website Ayala.com.ph

Ayala Corporation (Spanish: Ayala y Compañía) is the publicly listed holding company for the diversified interests of the Ayala Group. Founded in the Philippines by Domingo Róxas and Antonio de Ayala during the Spanish colonial rule, it is the country's oldest and largest conglomerate. The company has a portfolio of diverse business interests, including investments in retail, education, real estate, banking, telecommunications, water infrastructure, renewable energy, electronics, information technology, automotive, healthcare, and management and business process outsourcing. As of November 2015, it is the country's largest corporation in terms of assets ($48.7B)

History

The company began in 1834 with the formation of a distillery owned by Casa Róxas, a partnership between Domingo Róxas and Antonio de Ayala.[2] The distillery was the maker of Ginebra San Miguel which was later acquired by La Tondeña, Inc. in 1929.

In the late 19th century, Ayala participated in the construction of the Puente de Ayala (Ayala Bridge) over the Pasig River in Manila. Built of wood in 1872, the bridge was reconstructed in steel in 1908 and became the first steel bridge in the Philippines. In 1888, Ayala introduced the first tramcar service in the Philippines. Ayala was responsible for the development of Makati as the financial district of Manila and the Philippines after World War II.

In April 2010, FinanceAsia named Ayala Corporation as the best-managed company in the Philippines, as well as best for corporate governance and best for corporate social responsibility.[3]

In 2011, Ayala began building its renewable energy portfolio, beginning with a joint venture with Mitsubishi for solar power, the purchase of the iconic Northwind farm for wind power, and its joint venture with Sta. Clara Power for run-of-the-river hydro power. Ayala will contribute 1000 MW to the Philippine power supply, by 2015.[4] In 2015, FinanceAsia awarded Ayala Corporation as the Best Managed Company in the Philippines in the 15th annual survey of top public companies in Asia.

Attached Companies and Investments

Real estate

Atayala Ayala Land Premier Alveoland Avida Land Alveo Leasing Ayala Malls

  • Portico Land Corp. - joint venture with Mitsubishi Corporation [7]
  • Roxas Land Corp. - joint venture with Bank of the Philippine Islands and Hongkong Land
  • Regent Wise Investments Limited
    • MCT Consortium Berhad (32.95% ownership, based in Malaysia)
  • Ortigas & Company Limited Partnership - Since November 2014, Ayala and SM Prime Holdings ended their dispute over the ownership of OCLP Holdings, the parent of Ortigas & Company. Ayala has recently sealed a deal with a group led by Ignacio Ortigas for the development of the Ortigas family's land bank area.[8]
  • Trident Infrastructure and Development Corporation (TIDC) - Formerly known as "Team Trident" and "the super consortium", is a joint-venture between Aboitiz Equity Ventures, Inc. (AEV), Ayala Land Inc. (ALI), Megaworld Corporation (MEG) and SM Prime Holdings, Inc. (SMPH). It is aimed to develop the Laguna Lakeshore Expressway and Dike Project (LLEDP).[9]
  • Ayala-GT Capital - In May 2015, through Ayala's Alveo Land and GT Capital's Federal Land, the two corporations will develop a 45-hectare property in Biñan, Laguna, aimed towards mid-range and high-end markets. [10]

Financial Services

Telecommunications

Utilities

  • Manila Water Company Inc.
  • Ayala Corporation Energy Holdings, Ltd. - is the power unit of Ayala Corporation, with investments in the development of conventional as well as solar, wind, and mini-hydro energy sources.[11][12][13][14] [15]
  • AC Infra - pursues toll road, rail and airport projects under government’s public-private partnership program. One of its latest projects include MCX (Muntinlupa-Cavite Expressway).
  • Light Rail Manila Corporation - a consortium between the Ayala Corporation and Metro Pacific Investments Corporation regarding the LRT Line 6 or more commonly known as the LRT Line 1 South Extension, the LRT Line 1 Common Station, and the LRT Line 1 Concession.[16]
  • AF Payments, Inc. - another consortium between the Ayala Corporation and Metro Pacific Investments Corporation regarding the unified Automated Fare Collection System (BEEP) for LRT-1, LRT-2, MRT-3, and eventually also for the PNR and other public transport.[17]

Automotive

Healthcare

  • Generika - Drugstore chain, with 50% stake
  • QualiMed - Hospitals and clinics, a joint-venture with Mercado General Hospital Inc. (MGHI)

Education

  • University of Nueva Caceres - Ayala Education’s flagship University [26]
  • Affordable Private Education Center, Inc. (APEC Schools) - a joint venture between the Ayala Corporation and Pearson PLC's Affordable Learning Fund (Pearson ALF). It promotes affordable but high-quality education.[27][28]

Nonprofit organizations

  • Ayala Foundation [29]
    • CENTEX [30]
    • Ayala Museum [31]
    • Philippine Development Foundation [32]
    • Ayala Technology Business Incubator [33]
    • Filipinas Heritage Library [34]
    • Ayala Social Initiatives [35]

Business Process Outsourcing and IT

Retirement of the Ayala chairman

In January 2006, the board of directors publicly announced the decision by Jaime Zóbel de Ayala to retire as chairman of the corporation by April 2006. The board also announced Zobel de Ayala's appointment as chairman emeritus upon his retirement. His elder son, Jaime Augusto Zóbel de Ayala, succeeded him as Chairman and Chief Executive Officer of the corporation, while his younger son, Fernando Zóbel de Ayala, has assumed the position of President and Chief Operating Officer. The Zóbel de Ayala family's holding company, Mermac, Inc., continues to hold the controlling stake in Ayala Corporation.[44]

Oldest business house in Philippines

In 2014, Ayala celebrated its 180th anniversary. The company is credited for having contributed to the socio-economic development of the Philippines.[45]

References

  1. 1 2 http://www.ayala.com.ph/statements/AYALA%20CORP%20%20SEC%2017A.pdf
  2. ↑ Borja, Marciano (May 1, 2005). Basques in the Philippines. Nevada: University of Nevada Press. ISBN 0874175909. Retrieved 6 June 2014.
  3. ↑ "Asia's best managed companies: Indonesia and the Philippines", Finance Asia
  4. ↑ "Ayala Corp Builds Renewable Energy Portfolio with Run-of-the-River Hydropower", The Philippine Daily Inquirer
  5. ↑ http://investing.businessweek.com/research/stocks/people/person.asp?personId=8459585&ticker=AC:PM&previousCapId=878942&previousTitle=AYALA%20CORPORATION
  6. ↑ http://news.xinhuanet.com/english/2009-04/06/content_11139785.htm
  7. ↑ http://www.interaksyon.com/business/74118/japans-mitsubishi-taps-ayala-land-for-ortigas-property-venture
  8. ↑ http://www.thedailyguardian.net/index.php/iloilo-business-news/13601-ayala-land-ortigas-group-seal-p15b-deal
  9. ↑ http://rp1.abs-cbnnews.com/business/02/27/15/why-ayala-aboitiz-sy-tan-formed-team-trident
  10. ↑ http://www.abs-cbnnews.com/business/09/30/15/dpwh-mulls-bid-submission-extension-laguna-lakeshore-ppp
  11. ↑ http://www.manilatimes.net/index.php/business/top-business-news/16059-ayala-unit-seeks-regulatory-approval-for-capital-hike
  12. ↑ http://www.global-imi.com/media/IMI-Definitive-IS.pdf
  13. ↑ http://business.inquirer.net/105673/ac-energy-of-ayala-group-to-invest-200m-in-2013
  14. ↑ http://www.abs-cbnnews.com/business/04/19/13/ayala-corp-allots-700-m-energy-projects
  15. ↑ http://manilastandardtoday.com/2013/08/01/ayala-to-build-405-mw-plant/
  16. ↑ http://business.inquirer.net/174432/govt-expected-to-award-p65-b-lrt-project-to-ayala-mpic-group-next-week
  17. ↑ http://www.philstar.com/headlines/2014/04/01/1307460/govt-mpic-ayala-sign-deal-mrt-lrt-single-ticket-system
  18. ↑ http://www.gmanetwork.com/news/story/238195/economy/ayala-corp-posts-p7-3b-net-in-first-9-mos-up-7
  19. ↑ OECD, Organisation for Economic Co-operation and Development (2001). Corporate Governance In Asia: A Comparative Perspective. OECD Proceedings Series. OECD Publishing. ISBN 9789264183285.
  20. ↑ http://www.hondaphil.com/ver2/ourcompany.php
  21. ↑ http://www.pinoyprofile.com/jaime-zobel-de-ayala/
  22. ↑ http://www.isuzuphil.com/corporate-information/the-story-of-isuzu-philippines/
  23. ↑ http://ai.myvirtualpaper.com/doc/ayala/ayala-corp-2009-annual-report/2010063001/7.html
  24. ↑ http://www.philippine-builder.com/featured/company/178-ayala-corporation-pseac.html
  25. ↑ http://www.abs-cbnnews.com/business/09/29/13/ayala-group-brings-back-vw-beetle-2014
  26. ↑ http://ayalanews.com/ayala-corporation/news/2015/07/ayala-education-inc-invests-university-nueva-caceres
  27. ↑ "APEC". Pearson PLC. Retrieved August 4, 2014.
  28. ↑ "Tuition in new private schools: 'P65 a day'". rappler.com. May 16, 2014. Retrieved August 4, 2014.
  29. ↑ http://www.mb.com.ph/articles/359007/in-honor-iconoclast
  30. ↑ http://www.inmetromanila.com.ph/company/ayala-foundation-centex-manila.html
  31. ↑ http://www.makaticity.com/museums/ayala-museum.php
  32. ↑ http://www.phildev.org/site/News2?page=NewsArticle&id=5556
  33. ↑ http://www.bgn.org/institutions/page/10
  34. ↑ http://lifestyle.inquirer.net/36333/cultural-advocate-to-speak-at-filipinas-heritage-librarys-workshop
  35. ↑ http://opinion.inquirer.net/inquireropinion/columns/view/20090117-183867/Can-business-do-good-in-bad-times
  36. ↑ http://www.philstar.com/Article.aspx?articleId=576354&publicationSubCategoryId=66
  37. ↑ http://in.reuters.com/article/2009/11/13/idINIndia-43913520091113
  38. ↑ http://www.philstar.com/Article.aspx?articleId=379522
  39. ↑ http://www.abs-cbnnews.com/business/04/17/12/ayalas-bpo-unit-expects-post-profit-it-expands
  40. ↑ http://www.reuters.com/finance/stocks/AC.PS/key-developments/article/2292805
  41. ↑ http://ph.news.yahoo.com/ayala-bpo-unit-buys-la-outsourcing-firm-20110418-094743-054.html
  42. ↑ http://www.global-imi.com/about-imi/imi
  43. ↑ http://www.philstar.com/business/2014/10/20/1382077/ayala-led-imi-aims-billion-dollar-revenues
  44. ↑ "Zobel retires as Ayala chairman," Manila Bulletin, January, 2006 http://www.mb.com.ph/node/58957
  45. ↑ "Ayala on solid ground after 175 years", Philippine Star, March 10, 2009

External links

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