180 Years of Pioneering the Future
Transcription
180 Years of Pioneering the Future
THE OFFICIAL PUBLICATION OF THE AYALA GROUP OF COMPANIES Volume 18 No 1 Special Anniversary Issue 180 Years of Pioneering the Future Vol 18 • No 1 • 2014 Inside Ayala R ooted in an entrepreneurial vision and carried through generations by an untiring spirit of pioneering and innovation, Ayala has reached 180 years with greater strength than ever, its presence in the nation’s economic, social, and cultural life larger and deeper, its further promise and potential incalculable. The Ayala corporate character is the reason for all these—traced to the company’s founders, cultivated by successions of visionary leaders and managers, and nurtured decade after decade by dedicated and faithful employees. People are what make Ayala’s history. With the communities—mall merchants, telecom retailers, bank clients, cooperatives of water consumers, and microentrepreneurs, to name a few—Ayala continues to create shared value. It keeps a keen eye on their emerging socioeconomic contributions as these become increasingly linked with its own, so that together they can grow and flourish. From 1834 to 2014, an Ayala core value has remained the same and will continue without cease: the deeply held commitment to Philippine development and to the Filipino. From the top: Enrique Zobel de Ayala is seen at the left window in the Ayala y Compañia office, 1901; Founders Antonio de Ayala and Domingo Roxas, and Margarita Roxas de Ayala; Ayala y Cia (represented by managing partner Joseph McMicking, far left) is recognized in 1951 by the National Historical Committee as the oldest commercial house of Spanish origin in the Philippines, noting its “numerous commercial and industrial enterprises that contribute to the country’s economic development, including agricultural estates, urban land, alcohol distilleries, coal mines, indigo industry, brick factories, porcelain and twine, horse-drawn and steam-powered trams, sugar mills, insurance companies, etc.” The company was founded on March 10, 1834. 2 Vol 18 • No 1 • 2014 In a special 180th anniversary publication shared with employees, board members, and partners, Ayala’s story follows the achievements of unique individuals. We look far back and look at the now, and we see their legacy: a truly great company. Our leaders—including the Chairman Emeritus—provide us with a glimpse of what’s in their minds and their hearts, given the dynamic present and the exciting future. Expressing themselves, too, are employees—about how their own Ayala experiences changed, guided, and inspired them. Outstanding alumni and present members of the executive corps remember their beginnings and emphasize the values they consider as true foundations of Ayala’s successes. We acknowledge the public’s constant expectations of us as Ayala individuals ourselves. These do we in celebration of Ayala’s 180-year-old story, one of significant contribution to national development and which at its core continues as a human narrative. Vol 18 • No 1 • 2014 3 1 2 3 4 5 6 7 8 THINGS TO KNOW ABOUT THE PHILIPPINES’ OLDEST BUSINESS HOUSE 9 10 Not too many know the 180-year-old Ayala story—especially that it is in essence a story of people. So, here are 10 essential things that everyone may need to know to better appreciate our company. 4 Vol 18 • No 1 • 2014 AYALA’S BIRTH REPRESENTED A PHILIPPINE TRANSITION FROM 11 AGRICULTURE TO INDUSTRY In an era when Manila’s business houses were into buying and selling commodities for a fee (they were called commission houses), and the Spanish upper class looked down on farming and working on soil, a prominent landowner by the name of Domingo Roxas was deep into agriculture. He and his 29-year-old industrial partner Antonio de Ayala began Casa Roxas, the bulk of whose assets went into the pursuit of a key fundamental idea: to derive greater value from cane sugar. The factory they built would be known in its heyday as Destileria y Licoreria de Ayala y Compañia. 2 FOR A TIME, THE AYALA BUSINESS HOUSE WAS RUN BY A WOMAN Domingo’s eldest child, Margarita, showed strength of character and uniqueness of her own throughout her life. At a time that most wellborn ladies cared little for matters outside the home, Margarita took charge of the family’s primary business, the distillery, while her brothers managed the farms and other interests in Batangas and Laguna. Then, in 1844, another remarkable thing happened. The partnership with Antonio de Ayala was brought to a new level when he and Margarita, aged 29, were married. 31 BANK OF THE PHILIPPINE ISLANDS WAS THE FIRST BANK IN SOUTHEAST ASIA In 1851, the precursor of Ayala’s Bank of the Philippine Islands, El Banco Español-Filipino de Isabel II, was established by Spanish royal decree, becoming the first bank in Southeast Asia. The family’s involvement began when the Spanish government appointed Antonio de Ayala as the bank’s director representing the Manila business community. Its charter gave Banco Español-Filipino the exclusive privilege of issuing currency notes. The original bank notes are collectively called pesos fuertes, Spanish for “strong pesos.” 41 TODAY’S LEADING LIQUOR BUSINESS TRACES ITS ROOTS TO AYALA Many years after its founding, the Ayala distillery acquired sophisticated equipment to improve and expand production. It became known as a leading manufacturer of rum, whiskey, brandy, chartreuse, anis, and anisette, but its prime moneymaker was the gin that still carries the trademark Ginebra San Miguel, today’s prime gin brand. In 1924, Destileria y Licoreria de Ayala was sold to Carlos Palanca. Much later the company would become Ginebra San Miguel Inc, a subsidiary of the conglomerate San Miguel Corporation. 5 SO DOES THE LARGEST POWER RETAILER Antonio and Margarita Roxas de Ayala’s daughter Trinidad married the family company manager’s son and namesake, Jacobo Zobel y Zangroniz. His Compañia de los Tranvias de Filipinas operated modest wood-and- steel carriages and soon converted these into the steam-powered trams that became the city’s major means of public transportation. In the 1900s, Trinidad de Ayala de Zobel sold the tramcar lines to an American firm known as Manila Electric Railway and Light Company, or MERALCO, today the power distributor in Metropolitan Manila. 61 THE MAKATI BUSINESS DISTRICT’S FUTURE SITE WAS DEEMED WORTHLESS In 1851, Domingo Roxas’ son Jose Bonifacio bought the 1,650-hectare Hacienda San Pedro de Makati for 52,800 pesos. It was vast, extending all the way to the banks of the Pasig River on the north side, but it was considered unattractive even for agricultural land and too distant from both where the Roxas family resided in Manila’s San Miguel district and where the commercial and social center was, in Intramuros. 71 THE CORE OF THE MAKATI CBD WAS ONCE AN AIRPORT In 1937, shortly before the Second World War, Ayala leased 42 hectares of land in Makati to a group led by a New Zealand-born businessman, Laurie Reuben Nielson. This became the site of the country’s first commercial airport, servicing the first airline, the Philippine Air Taxi Co. (known today as Philippine Airlines) and the Iloilo-Negros Air Express. Flights to Baguio, Nueva Vizcaya, Cagayan, Leyte, Cebu, Camarines Sur, and Albay originated from there until the war in the Pacific broke out in 1941. 81 MAKATI WAS DEVELOPED WITH CALIFORNIA AS INSPIRATION By the late 1940s, only 900 hectares were left of the sprawling cogon fields bought by Jose Bonifacio Roxas. It was thanks to the vision of Col. Joseph McMicking that Ayala developed a 25-year master plan for a “multi-zone sub-city.” He had seen the results of integrated urban planning in the San Francisco Bay Area, and was inspired by the decorous Spanish-mission homes around Palo Alto.The first subdivision that Ayala opened was Forbes Park. To assure buyers that it was safe to live in Makati, Ayala laid out street lighting and provided motorized patrols at its own expense. The partners demonstrated their confidence in Forbes Park by being among the first to move in. In the first year, only 10 lots were sold. Today, Forbes Park and the other Ayala “villages” in Makati, Alabang, Cebu and elsewhere are among the highest valued residential subdivisions in the Philippines. 9 AYALA PIONEERED IN CORPORATE FOUNDATION WORK Ayala set up its socioeconomic development arm in 1961—long before corporations were deemed to have a social responsibility. Known as Filipinas Foundation, it institutionalized the philanthropy that could be traced all the way back Margarita Roxas de Ayala. In 1990, Jaime Augusto and Fernando Zobel de Ayala decided to harness the Ayala group’s diverse resources and involve the entire group in social development. In conjunction with the foundation, renamed Ayala Foundation, Inc, the subsidiaries would apply their own capabilities to initiate social programs. 10 1 THE PERSONAL PHILANTHROPY CONTINUES Jaime and Bea Zobel de Ayala, with little or no fanfare, have been involved with the Mangyan indigenous people of Mindoro Island since the late 1980s. They have set up a clinic, built a school, helped get their ancestral land title, and provided feeding programs. They have given hundreds of Mangyan scholarships, and a growing number of them have graduated from college and vocational training programs. Now they are developing a housing program for the Mangyan families. JAZA himself has served on the boards of Children’s Hour and World Wildlife Fund, among others, and his brother FZA is a board member of Habitat for Humanity International and actively supports its housing programs in the Philippines.“We devote about one-fifth of our time to social development endeavors, through partnerships with others, as our way of leveraging our own networks to help contribute to developmental initiatives,” JAZA said. “I like to think that at the end of the day, we have to give back and help contribute to something bigger than ourselves.” Vol 18 • No 1 • 2014 5 6 Vol 18 • No 1 • 2014 Vol 18 • No 1 • 2014 7 1 3 2 5 4 10 9 6 A History of Ayala in 18 Objects 7 8 11 13 12 18 14 17 15 16 1 Commemorative token on the occasion of Ayala’s incorporation, 1968 • 2 Volkswagen keychain • 3 IMI brand cube • 4 Door coat hanger from Botica Zobel • 5 Receipt of Ker, MMicking, & Co. for Domingo Roxas’ purchase of boilers for the distillery, 1842 • 6 Medallion to mark the centenary of Ayala, 1934 • 7 Plate presented to JZA by Sung Sio Ma, chairman and CEO of Singapore Telecom, 1993 • 8 Privilege card on the occasion of Ayala’s 165th anniversary • 9 Ayala Land’s 25th anniversary commemorative Swatch • 10 JZA’s speech on the “Golden Decade of Ayala”, 1995 • 11 Book on Ayala’s history published on its 150th anniversary • 12 Special publication on Ayala’s 180th year • 13 A magazine and a Christmas card on Ayala’s 175th anniversary • 14 Pencil used during the negotiations between Ayala and Morgan Guaranty Trust of New York for the merger of People’s Bank with and into BPI, 1974 • 15 An advertisement for Destileria Ayala y Compañia • 16 Passenger ticket for the third-class section of the tranvia • 17 BPI’s 150th anniversary gold and silver ingots bearing images of the Philippine islands and the first currency issued in 1852 • 18 Magnetic tape recording of Jaime Velasquez’s talk on “ The Future of Makati”, 1965 8 Vol 18 • No 1 • 2014 Celebrating 180 Years Vol 18 • No 1 • 2014 9 A Homecoming Close to 300 Ayala citizens and retirees gathered on March 31 at Ayala Museum for a homecoming in celebration of Ayala’s 180th anniversary. A Thanksgiving Mass led by His Eminence Gaudencio Cardinal Rosales was followed by a musical revue presented by maestro Ryan Cayabyab. Highlights of the day included a message from JZA, a short film featuring Ayala alumni and new employees, and a special exhibit on Ayala’s history and legacy. 10 Vol 18 • No 1 • 2014 Vol 18 • No 1 • 2014 11 A Thanksgiving On April 8, JAZA and Lizzie Zobel hosted a thanksgiving dinner at their residence in Forbes Park for Ayala group board directors and management teams and members of the Zobel family. A highlight of the evening’s program was the special recognition of institutions with enduring partnerships with Ayala: the Roman Catholic Archdiocese of Manila for BPI, Mitsubishi Corporation, Singapore Telecom for Globe, and Resins, Inc. for IMI. By row, from the top: FZA, JAZA, and AC board director Ramon del Rosario, Jr.; Zobel family with His Excellency Luis Antonio Cardinal Tagle; FZA, Iñigo Zobel, and JAZA; Marides and Sec. Rene Almendras; ALI board director Riza Mantaring, Chicho Mantaring, and Bobby Dy; ALI, MWC, and BPI board director Oscar Reyes and Aris Estrada; Jaime Urquijo and Monica Urquijo; Esperanza Padilla, Da. Bea Zobel, Maricris Zobel, and Alejandro Padilla; Patricia Zobel; Bea Zobel, Jr; Georgina Padilla Macrohon and Diana Macrohon 12 Vol 18 • No 1 • 2014 JAZA and FZA with AC board director and Mitsubishi Corporation Manila Branch general manager Yoshio Amano and Mitsubishi Corporation senior vice president Yasuhiko Kitagawa; A gift presented to Ayala on its 180th anniversary on behalf of Mitsubishi Corporation chairman of the board Yorihiko Kojima and president and CEO Ken Kobayashi; BPI board director Gigi Montinola and Luli Heras-de Leon; AC and MWC board director Delfin Lazaro; Ricky Jacinto, Junie Jalandoni, and Fred Ayala; IMI board director Alelie Funcell; JZA, IMI board members Jose Ignacio Carlos and Rafael Ma. Romualdez, and Resins founder Meneleo Carlos, Jr.; Fred Ayala and Ato Jiao; Albert de Larrazabal and Bong Consing; AC board director Xavier Loinaz; Rebecca Eclipse, Globe board director Manuel Pacis, and Gerry Ablaza; Til Mariano and Joey Gotuaco; Amb Jun Paynor and ALI board director Jaime Laya; Monica Zobel Pla, Lizzie Zobel, and former Chief Justice Artemio Panganiban; Cristina Zobel Suarez de Puga; ALI board director Tony Aquino and Sofia Zobel-Elizalde Vol 18 • No 1 • 2014 13 A Truly Filipino Welcome Reception for World Economic Forum on East Asia Ayala culminated its 180th anniversary festivities by hosting the Philippine Welcome Reception for the 23rd World Economic Forum (WEF) on East Asia, held May 21 at Tower One. It was a celebration of Filipino culture, food, and talent. The WEF delegation led by Professor Klaus Schwab, founder and executive chairman of the World Economic Forum, experienced Filipino hospitality at its best as they gathered in the Philippines for the first time. Vice President Jejomar Binay welcomed the participants as did JAZA and FZA. More than 600 WEF delegates and guests from government, business, and the diplomatic corps attended the event. Tower One and Exchange Plaza was transformed by a showcase of fine furnishings created by artisans from Manila and Cebu. The reception program featured a spectacular video presentation on the Philippines, a fashion show of the works of some of the country’s best fashion designers, and performances by Louie Ocampo, Lani Misalucha, Thor Dulay, Steps Dance Studio, the Ramon Obusan Folkloric Group, and The Brat Pack. The Philippine Welcome Reception took place the night before the formal proceedings of the World Economic Forum on East Asia, which focused on the theme “Leveraging Growth for Progress”. On this page, by row from the top: JAZA introduces WEF founder and executive chairman Klaus Schwab to Vice President Jejomar Binay; VP Binay and JAZA welcome the WEF delegates and guests; Manuel Osmena and Gigi Montinola; Nabbie Alejo and Margarita Delgado; Patxi and Sofia Elizalde; Kit Zobel; Tony Paner and Felipe Estrella III; the creative and production team led by Emi de Lara, Mau Barreiro, and Mariana Zobel; Lance Gokongwei and TG Limcaoco; Vic Valdepeñas, Gil Genio, and Tammy Lipana; Bill Luz, Finance Secretary Cesar Purisima, Paolo Borromeo, JP Orbeta, and Eric Francia Opposite page: FZA with Senate president Franklin Drilon; Dan Abando, Bobby Dy, and Joel Luna; WEF senior director Sushant Rao (far right) greets delegates; WEF delegates; Steps Dance Studio scholars from Centex with Louie Ocampo and Anton Mendoza; yoyo performance artists; Perry Rivera, Gerry Ablaza, and Chito Gonzalez; Oscar Reyes and Xie Luming; Art Tan and Anton Huang; Volkswagen is the official VIP vehicle partner of WEF on East Asia in Manila 14 Vol 18 • No 1 • 2014 The official video of the event may be viewed at www.youtube.com/ayala1834. Vol 18 • No 1 • 2014 15 18 FROM 180: MILESTONES IN SOCIAL RESPONSIBILITY AND SUSTAINABILITY Social commitment is integral to Ayala’s business philosophy. These 18 concrete expressions of social responsibility are a few examples of the practice of giving that was there since the beginning. It remains strong to this day: in the personal philanthropy of members of the founding family and employees, the continuous transformation of the country’s first corporate foundation, and recent investments in sustainable development. The Center of Excellence in Public Elementary Education (CENTEX) provides quality public school education to bright children from underprivileged communities, with the support of Ayala Land and Globe. The following year, the Ayala Young Leaders Congress is launched, with the aim to nurture future leaders committed to integrity in service. Margarita Roxas de Ayala helps establish a school for girls, Colegio de la Immaculada Concepcion Concordia. Her social work well known, she is considered the first Filipino woman philanthropist. 16 Vol 18 • No 1 • 2014 Ayala provides a prime one-hectare site in Makati for the Asian Institute of Management, the pioneering international management school in Asia. In later years, parcels of land in Ayala’s subdivisions are also donated to other educational institutions, including De La Salle University in Alabang and Colegio de San Agustin in Makati, in keeping with Ayala’s commitment to develop fully integrated communities. Ayala Museum is opened to the public in its own building designed by Leandro Locsin. Crowds are drawn to the Dioramas of Philippine History, ethnic and anthropological specimens, historical papers, and its fine art collection. Pedro Pablo Roxas is involved in civic and social work including Real Hospicio de San Jose, San Juan de Dios Hospital, and the College of the Society of Jesus. A lover of art and culture, Enrique Zobel de Ayala establishes Premio Zobel, the Philippines’ oldest literary award given to works written in Spanish. He also funds Fernando Amorsolo’s art education in Europe. Ayala publishes the first conglomerate sustainability report in the Philippines based on the guidelines of the Global Reporting Initiative, reinforcing its commitment to disclose—and improve—its economic, social, and environmental bottom lines. BPI Foundation shares with the public the results of its first study on Climate Risk Adaptation in partnership with WWF Philippines. In the same year, Globe’s mobile cash transfer service is used to deliver immediate assistance for humanitarian services as part of the initiative of the United Nations World Food Programme. Following its immediate response in the wake of Typhoon Haiyan/Yolanda, the Ayala group and its partners continue to rebuild and rehabilitate communities in Central Philippines. Fernando Zobel de Ayala leads the Ayala group’s volunteer efforts in Habitat for Humanity’s Jimmy Carter Work Project, and Jaime Augusto Zobel de Ayala is instrumental in bringing the Children’s Hour fundraising campaign to the Philippines. They remain actively involve in these programs. Ayala Foundation USA is established to allow Filipino communities in the U.S. to support projects of various organizations back home. In the Philippines, Ayala Foundation begins a decade of many technology-enabled projects including the U.P.-Ayala Technology Business Incubator, Text2Teach, and Gearing up Internet Literacy and Access for Students (GILAS). Ayala Land partners with WWF Philippines to ensure the sustainable development of its property developments including Nuvali in Laguna and Anvaya Cove in Bataan. Filipinas Foundation becomes Ayala Foundation, signifying that corporate social responsibility has become a joint undertaking of the Ayala group with the foundation acting as its lead agency. It becomes a more development-oriented institution, emphasizing strategic approaches to poverty alleviation. Ayala Foundation donates a 3.3-hectare property for the Iraya Mangyan of Mindoro, inspired by the personal commitment of Jaime and Bea Zobel de Ayala to their livelihood and education since the late 1980s. Manila Water rolls out “Tubig Para Sa Barangay”, a program that provides access to safe, potable, and affordable water in densely populated communities in its concession area. Ayala partners give rice to employees to help them through postwar inflation and food shortage. Despite depleted reserves, Insular Life does not close down, as nearly all of its prewar competitors did, with the conviction that the company has a social obligation to remain in existence. It honors all claims, including those on policies paid for in subsequently nullified wartime pesos. Fernando Zobel y Montojo remains immersed in the Philippine art scene, helping solidify modern art in the country. He secures scholarships for Filipino artists to study overseas, supports the excavation of pre-colonial ceramics in the family’s estates, and lectures art history at Ateneo de Manila University Joseph and Mercedes Zobel McMicking establish the Filipinas Foundation, precursor of Ayala Foundation and the country’s first corporate foundation. Programs include social science and scientific research, entrepreneurship, community work, emergency response, and art and culture. Vol 18 • No 1 • 2014 17 180 and Beyond Discover more of Ayala on the occasion of its 180th anniversary Apple Apps and iBooks Early this year, Ayala’s 2012 Annual Report was made available as a downloadable application from the Apple ITunes Store—the first for a listed Philippine company. Ayala also developed iBooks for its special magazine, Ayala at 175, and for its corporate videos since 2006. These apps were preloaded on iPads given to Ayala and Sonoma employees as part of an anniversary gift set that also included a copy of Inside Ayala, notebooks, and a special note signed by JZA, JAZA, and FZA. The 2013 annual report as well as Inside Ayala will soon be available as a free download on iTunes. Exhibits JZA in High Life A visual history of Ayala was presented to employees and retirees, Ayala group shareholders, and the general public in exhibits at Ayala Museum, Tower One, and Fairmont Makati. Businessworld gave a fresh account of JZA’s career in Ayala in the first issue of its redesigned magazine in July. New plane Ayala Aviation’s new King Air 350i uses the call sign RP-C1834, a reference to Ayala’s founding year. 18 Ayala’s New Corporate Website Online Timeline 2013 Ayala Annual Report Mini-Site Launched in April, the new Ayala website supports the conglomerate’s commitment to good governance practices for transparency and accountability. The new website uses a modern user interface to engage various stakeholders. www.ayala.com.ph This interactive timeline allows website visitors to trace the company’s entrepreneurial roots and transformation, as well as sort the milestones according to themes that define how Ayala has done business over the past 180 years. www.ayala180.com To make our primary investor communication tool available to a broader audience, the mini-site for the Ayala Annual Report has been updated to cover 2013 financial and operational highlights. Mini-sites for other AGC annual reports are also being developed. annualreport.ayala.com.ph. Vol 18 • No 1 • 2014 Inside Ayala For the homecoming celebration of Ayala’s 180th anniversary, this short video gives life to stories of Ayala’s recent past and demonstrates that its culture, its principles and values, and its promise to pioneer the future remain as relevant and as vibrant today. I think all of us have to be very proud of the legacy we built for the last 180 years. But in the same breath I think we have a duty to perpetuate and preserve those traditions, those legacies, and those values. And if everything goes well, as I’m sure it will, let me assure you that the best is still to come. Xavier P. Loinaz Former BPI President and Ayala Independent Board Director In Every Day, Ayala It’s the break of dawn. You open your eyes. Ahead of you is a familiar day. Friendly faces in places you know and the work you do. The daily routine is good. But there is a way to make this every day even better. Within each routine and every repetition lies the chance to make a decision. You and I look past our immediate goals, ask why we do what we do, and we realize: Beyond the self, something bigger is at stake. Beyond every success is a chance for significance. This is what Ayala is about every day. Each employee sparks change in every action. Every action sparks the wheels of progress in motion. We wake up and seize the day. We break ground and build the future. We innovate and create better opportunities. We reach out, connect, and transform lives. Because when we create ideas and put care in every effort, we expand your horizon of possibilities. At Ayala we do this every day. We did it for 180 years. We are ready to do more. So that a better future becomes familiar to all Filipinos. Ayala group employees and stakeholders participated in the making of Ayala’s 180th anniversary video. View it online at www.youtube.com/ayala1834. Vol 18 • No 1 • 2014 19 Incredulity—bewilderment—gratitude, deep gratitude! I thought I was dreaming. But when I realized that I was not, I thanked God for your being such an integral part of me. From the bottom of my heart, THANK YOU for your lovely surprise! GOD BLESS YOU ALL! View the official video of the Ayala group flash mob at www.youtube.com/ayala1834 PUBLISHER John Philip Orbeta EDITOR IN CHIEF Emily de Lara MANAGING EDITOR Janella Cacdac-Siena DESIGN Medium3 We take this opportunity to thank all those who participated in the 180th anniversary celebrations and supported the production of Inside Ayala, our videos and apps, and Ayala Now. To access online material on your mobile device, download a QR (quick-response) code application and scan the codes printed in this publication. EDITORIAL OFFICE: Ayala Corporation–Corporate Communications, 32F Tower One, Ayala Triangle, Ayala Avenue, Makati City 1226 Philippines | Email: [email protected]