Aboitiz Equity Ventures 2014 Annual Report

Doing Well by Doing Good
Aboitiz Equity Ventures, Inc.

2014 Annual Report
Table of Contents

We can do well by doing good, always making the right long-term decisions
that balance the interests of people, planet and profit.
The Aboitiz Way
Corporate Structure
85
Our Businesses
Board of Directors
86
Aboitiz BetterWorld
Corporate Officers
88
Milestones
Business Unit Heads
91
Management Directory
92
Our Businesses At a Glance
10
Financial Highlights
In doing our business, we look beyond profitability and constantly explore better ways to integrate social
development and environmental stewardship into our operations.
As a socially responsible organization, we focus on delivering value to all our stakeholdersour team members,
customers, shareholders, partners, and communitiesby responding appropriately to their evolving needs to
promote inclusive growth.
Aboitiz Power Corporation
Aboitiz Equity Ventures, Inc. (AEV)
12
Location of Operations
93
Aboitiz Power Corporation (AboitizPower)
14
Board of Directors
94
Corporate Officers
96
Messages
This is the essence of the Aboitiz sustainability mindset, which all of us in the Group take to heart. We believe
that by doing good, we will do well and achieve long-lasting sustainability.
Business Unit Heads
100
Management Directory
101
AEV and AboitizPower Chairmen
16
AEV and AboitizPower CEO
20
AEV Chief Financial Officer
25
Aboitiz Foundation, Inc.
AboitizPower Chief Financial Officer
29
Board of Trustees
102
Board of Advisers
104
While growing our businesses, we make sure we do our best to minimize any environmental impact that may
result from our decisions and actions. We manage our operations well and utilize resources prudently to achieve
financial growth and profitability.
All these we do, driven by our resolve to make Aboitiz a truly sustainable enterprise that we can entrust to future
generations. We believe that doing well by doing good enables us to secure a BetterWorld for everyone today
and in the future.
34
WeatherPhilippines Foundation, Inc.
Feature: Infrastructure/Biofuel
57
Board of Trustees
105
58
Board of Advisers
106
64
Sustainability
67
Audited Consolidated Financial Statements
Corporate Governance
74
107
Talent Management
79
125
Risk Management
83
2014
Business Review
An n ual Report
Results of Operations
Our Businesses
For over a hundred years of doing business, we in the Aboitiz Group have nurtured
and strengthened our core values and beliefs that guide us to be the best at what
we do, and embolden us to uphold our mission of creating long-term value for all
our stakeholders.
We now refer to this comprehensive system of values and beliefs as The Aboitiz Way,
the distinctly unique way we do things.
We keep alive our passion for better ways.

Driven is what we aredriven to lead, driven to excel, and driven to
serve.
We are guided by our time-honored values of integrity, teamwork,
innovation, and responsibility.
We value our fellow team members and celebrate our successes.
A boit iz Equi ty Vent ures , In c.
Our leaders lead by example, mentor and foster teamwork, speak

whats on their mind, and deliver results for sustainable growth.
AboitizPowers
Generation Group
harnesses power from
a right-mix portfolio of
renewable (hydro and
geothermal) and
non-renewable (coal and
oil) sources through its
42 generation facilities
across the Philippines. The Group ensures that its
generated energy is available and reliable, with facilities
operating efficiently at the lowest possible cost, and with
the least adverse effect on the environment and its host
communities.
AboitizPowers
Distribution Group
is composed of eight
companies, including
the second and third
largest private utilities in
the country. The Group
continues to implement
innovative and efficient ways to serve the growing needs
of over 840,000 customers.
Banking
UnionBank is one of
the countrys largest
commercial banks,
offering a wide range
of quality financial
products and services
to retail customers,
middle market and
corporate clients, and major government institutions.
The Bank distinguishes itself through superior
technology, a unique branch sales and service culture,
and centralized backroom operations.
Food
Integrity
Teamwork
Innovation
Responsibility
Pilmico is one of
the countrys largest
manufacturers of flour
and wheat by-products.
It is also a strong player
in the swine production
and animal feeds
businesses. With its
dedicated commitment to quality products and processes,
the company ensures its market competitiveness through
increased customer satisfaction.
Land
AboitizLand is
engaged in the design
and development of
distinct communities
for residential,
industrial, and
commercial use. After
over two decades in
operation, AboitizLand
is today one of the countrys most trusted companies
in real estate development.
Corporate Social Responsibility (CSR)
The Aboitiz
Foundation is the
corporate foundation
of the Aboitiz Group.
Established in 1988, it
continues to pursue its
mission to help people
help themselves,
implementing
corporate social
responsibility interventions especially in communities
where Aboitiz companies operate. The Foundation
focuses its efforts on education, enterprise
development, and environment but also carries out
projects on health and well-being, as well as disaster
preparedness and response.
WeatherPhilippines
provides the country
with a premier
weather sensing and
forecasting system
made possible by
technology, inclusive
partnerships, and
communication.
Founded in 2012 by the Aboitiz Foundation,
UnionBank, and MeteoGroup, it delivers free, more
localized, and accurate weather information accessed
through weather.com.ph. WeatherPhilippines
complements governments nationwide efforts on
disaster risk reduction, and aims to help build a
#WeatherWiser nation.
An n ual Report
Power
2014
The Aboitiz Way
Aboitiz BetterWorld
2014 Performance Highlights

As we take significant steps towards our sustainability agenda, here are key figures highlighting the Groups
performance in support of our triple bottom line.
Goal: Partner with our stakeholders to create shared value
750
Team members (TM) employed
35,133 hours
No. of volunteered hours
Renewable energy (RE)

attributable net sellable capacity
Automated Weather Stations

(AWS) deployed as of 2014
860
personnel
million
7 initiatives
AWS
No. of trained
DRRMOs as of 2014
CSR fund allocation
742 CSR projects
845,004
t CO2
Waste management initiatives
Greenhouse Gas (GHG) emission
Profit
Goal: Grow profitably
P18.4 billion
Net Income After Tax
20%
Return on Equity
114,449 beneficiaries
No. of direct beneficiaries
46% (5 years)
Total Return to Shareholder per year

compounded annually
P38.4 billion
EBITDA
An n ual Report
No. of CSR projects
2014
893 MW
million trees
No. of trees planted as of 2014
28,518 TM
Goal: Minimize our environmental impact
3.4
People
P610
Planet
Milestones
2003
The AEV-Davao Light consortium

with Mirantnow known as
Subic EnerZone Corporation
wins the power distribution
management and operation
contract for the Subic Bay
Freeport Zone.
Fil-Am Foods becomes wholly
owned by AEV, and buys out its
partners Tyson Foods and PM
Animal Nutrition.
2004
Hedcor wins bid for the Talomo

hydropower facility in Davao,
the first Napocor asset to be
privatized.
ATS introduces the New
Generation SuperFerries.
1995
1998
AEV consolidates its shipping

businesses with Cebu-based
Carlos A. Gothong Lines and
William Lines to form WG&A.
1996
AEV forms Luzon Hydro to build

the 70-MW Bakun hydropower
plant in Benguet, the first buildoperate-transfer project of
Napocor.
Pilmico partners with Tyson Foods

and PM Nutrition to form feed
and swine company Fil-Am Foods.
2005
2007
The Aboitiz Group launches its

refreshed brand identity and
unveils its new corporate logo.
VECO, Davao Light, and Cotabato
Light sign the largest bulk power
supply contract between Napocor
and a private distribution utility.
2006
UnionBank acquires the

International Exchange Bank.
AboitizPower partners with
Norways SN Power to form SN
Aboitiz Power (SNAP).
SNAP-Magat wins bid for the 360MW Magat hydropower plant.
ATS celebrates its 100th

anniversary.
AboitizPower goes public.
SNAP wins bids for the 75-MW
Ambuklao and 100-MW Binga
hydro plants.
AboitizPower wins bid for a 34%
stake in STEAG State Power, Inc.,
which owns and operates the
232-MW coal-fired power plant in
Misamis Oriental.
AboitizPower acquires half of
East Asia Utilities Corporation
and purchases from the latter a
60% stake in Cebu Private Power
Corporation.
1999
UnionBank pioneers Internet and

wireless access protocol banking
in the country.
Fil-Am Foods begins commercial
swine operations.
AEV implements a new focused

strategy and forms AboitizPower
as the holding company of the
AEV buys into San Fernando
Groups power investments. This
Electric Light and Power Company
is to reinforce its focus on the
of Pampanga, its first power
energy sector as the driving force
distribution investment in Luzon.
behind the Groups future growth. The Bakun hydro plant begins
Pilmico, through Fil-Am Foods,
operations.
opens a feed mill plant in Capas,
Tarlac with a capacity of 640
metric tons per day.
AEV fully acquires WG&A,
renaming it Aboitiz Transport
System (ATS).
2000
2002
An n ual Report
1997
AEV goes public, the first

majority-owned Aboitiz company
to do so.
The 1st Aboitiz Future Leaders

Business Summit is held.
2014
1994
ATS launches new brand 2GO for

all its freight businesses.
Milestones
The Aboitiz Group Foundation

celebrates its 20th anniversary
and changes its name to Aboitiz
Foundation. It is now one of the
largest CSR foundations in the
country.
AP Renewables, Inc. (APRI)
acquires the 289-MW Tiwi
geothermal plant in Albay and
the 458-MW MakBan geothermal
plant in Laguna and Batangas.
Pilmico inaugurates a new feed mill
facility in Kiwalan Cove, Iligan City.
UnionBank launches its new brand
positioning, Smart Banking, as well
as a new corporate logo.
2009
Erramon I. Aboitiz is elected AEV

President and CEO, replacing Jon
2010
AEV fully acquires thrift bank unit

CitySavings.
Therma Marine, Inc. assumes

ownership of two power barges in
Agusan del Norte and Compostela
Valley with a total capacity of nearly
200 MW.
Cebu Energy Development
Corporation begins operations of
its 246-MW baseload power plant
in Toledo City, Cebu.
AEV sells ATS in order to streamline
its businesses and enhance focus
on other core units.
2011
T herma Mobile, Inc. acquires four

diesel-powered barges in Navotas
City with a total capacity of 242 MW.
2012
AEV ventures into biogas

production, partnering with
UKs GazAsia to form Aseagas
Corporation.
AEV acquires land development

unit AboitizLand from Aboitiz and
Company.
WeatherPhilippines Foundation
is established by the Aboitiz
Foundation in partnership with
UnionBank and Europes leading
weather specialist, MeteoGroup.
Pilmico celebrates its 50th
anniversary.
firms entry into the Luzon market.

Hedcor celebrates its 35th
anniversary.
Under its #BangonVisayas
campaign, the Aboitiz Group
raises over P264 million for relief
and rehabilitation efforts in the
aftermath of Typhoon Yolanda. It is
the Foundations largest CSR effort
to date.
2013
2014
AEV moves its corporate

headquarters from Cebu to Manila
in order to secure its business
position and pursue future growth
in the countrys capital.
UnionBank acquires CitySavings,
consolidating AEVs banking units.
AboitizLand acquires industrial park
developer LiMA Land, marking the
The Aboitiz Group launches

BetterWorld, a sustainability
campaign that seeks to instill a
mindset of doing well by doing
good, always making the right
long-term decisions that balance
the interests of people, planet,
and profit.
AboitizLand celebrates its 20th

anniversary, marking two decades
of nurturing communities.
Hedcor inaugurates the Tudaya 1
and 2 hydropower plants in Davao
del Sur with a total capacity of
13.7 MW.
Pilmico enters the international
market, acquiring a 70% stake in
leading Vietnamese aqua feed
firm Vinh Hoan Corporation.
It also opens a representative
office in Indonesia, its first in
Southeast Asia.
AboitizPower and TeaM Energy
break ground on the 420-MW
Pagbilao Unit 3 in Quezon.
The Aboitiz Group exceeds its
#BangonVisayas targets and turns
over 272 classrooms in Yolandahit areas of northern Cebu.
An n ual Report
2008
Ramon Aboitiz, who had led the

company since 1993.
AboitizPower launches its
refreshed brand identity,
including a new logo and a brand
promise.
AboitizPower secures an
Independent Power Producer
Administrator contract for the
764-MW Pagbilao plant in Quezon.
AboitizPower launches the
Pearl Project customer care and
billing system in partnership with
Oracle. It is the Aboitiz Groups
largest single IT project to date.
AEV launches the Groupwide
Sustainability Program and forms
a dedicated Sustainability Team
with a network of stewards across
business units.
2014
UnionBank raises P5.1 billion in new

capital after a 90-million share offer.
At A Glance
Distribution
Banking
Food
Land
2014 Operating Highlights
A
ggregate energy sales
grew by 10% to 4,480 GWh
Total DU customer base
went up by 4% to 843,802
VECO completed its
first one-kilometer
underground distribution
system in Cebu, from the
Provincial Capitol to the
Fuente Osmea Circle;
two 100-megavolt ampere
power transformers
commissioned
Davao Light began a
seven-year project to
build a robust and reliable
distribution network with
the installation of a 69-kV
loop system.
Cotabato Lights franchise
was renewed for an
additional 25 years
Income from UnionBanks

customer businesses rose
to P15.7 billion, driven by
higher interest income
on loans and fee-based
income
Total resources expanded
by 12% to P443.1 billion,
funded mainly by the
increase in bills payable
to P48.4 billion coupled
with solid growth in total
deposits to P311.1 billion
Sustained double-digit
expansion in average credit
portfolio, up by 13% to
P125.0 billion fuelled by
salary loans
P
osted P20 billion annual
revenue and recorded a
12% year-on-year (YOY)
hike, largely driven by
strengthened volume growth
Full- year Food Group
EBITDA grew by 12% YOY,
including a 64% YOY growth
in Farms EBITDA
F ull-year contribution to
AEV up by 4% to P1.3 billion
E ntered ASEAN market with
acquisition of 70% equity
stake in Vietnam-based
feed mill operator Vinh
Hoan 1 Feed JSC, and
opened first representative
office in Indonesia
Launched Mahalin Pagkaing
Atin advocacy to support
sustainable backyard farming;
initially launched in typhoon
Yolanda-affected areas
A
boitizLand marked its 20th
anniversary
Revenues across all business units up
by 86%
Residential sales grew 15% driven by
sales from high-end projects
Posted 123% growth from commercial
segment
Achieved 100% occupancy for The
Outlets at Pueblo Verde within six
months of operations
Full acquisition of LiMA Land, Inc.
contributed 58% of total net income
after taxes
C
ombined Aboitiz Group CSR
initiatives totaled P610 million, the
biggest allocation to date
Intensified the development of special
science elementary schools (SSES)
and technical vocational (techvoc)
high schools
Donated 272 classrooms in Northern
Cebu as part of its post-Yolanda school
rehabilitation initiatives
Released P14.8 million in loan
packages to various organized groups
nationwide
D
eployed 750 automated weather
stations (AWS) nationwide as of end2014
T rained 435 LGUs and 860 disaster-risk
reduction officers
Signed a 10-year partnership with
platinum donor LBC Express, Inc.
P
artnered with DepEd for weather
education in the Philippines
O
rganized #WeatherWiser Nation
conference and launched a campaign
to use weather information in
decision-making and planning
R
ecognized by three international
award-giving bodies, namely APEX
Global, CMO Asia, and Public Affairs
Asia
Net Income Contribution to

AEV (in Php)

AEV (in Php)

AEV (in Php)

AEV (in Php)
Net Income Contribution to AEV

(in Php)
Aboitiz Group CSR Allocation

(in Php)
Total Donations Received

(in Php)
2.5B 2.5B
2.2B
3.9B 4.1B
1.2 B
1.3 B
1.3 B
A
ttributable net generation
was up by 3% to 11,272
GWh
Capacity sales rose by 13%
to 1,800 MW
Completed the 13.7-MW
Tudaya hydropower plants
in Davao
Secured 40-MW supply
from the Unified Leyte
Geothermal Power Plant
complex as an Independent
Power Producer (IPP)
administrator
Net sellable capacity
of Therma Mobile
increased to 200 MW after
rehabilitation of its barge
units and transmission lines
Pagbilao Energy began
construction of 420-MW
Pagbilao III coal-fired
power plant
11.7B
10.4B
1.3B 1.3B 1.3B
3.2B
633M
273.5M
63M
WeatherPhilippines
17.5B
10
Corporate Social Responsibility
Aboitiz Foundation
2012 2013 2014
2012 2013 2014
2012 2013 2014
2015 Outlook
C
omplete construction of
Hedcor Sabangans 14-MW
hydro plant in Mt. Province
T herma Souths 300-MW
coal-fired plant in Davao to
go online within the year
B
egin construction of
Hedcors 68-MW Manolo
Fortich hydro plant in
Bukidnon, and Therma
Visayas 340-MW coal-fired
plant in Cebu
2015 Outlook
Start implementation of
Hawkeye Smart Elevated
Meter Cluster technology
across the entire
Distribution Group
Roll out Quantirisk Energy
Management to other
utilities after its successful
deployment at VECO
Go live with Oracles Meter
Data Management by
year-end 2015
Continue underground
cabling in VECOs franchise
area and start it in Davao
Light
Davao Light to expand
e-Bill service to all its
customers
2015 Outlook
Grow retail assets,
particularly credit card,
mortgage, and salary loans
B
roaden customer franchise
by pursuing high-return retail
businesses and grow
fee-based transactions
Strengthen risk
management at an
enterprise level, and
sustain deposit build-up by
focusing on CASA (current
and saving accounts)
C
ontinue building up
the unique Make Da
Diff culture by enabling
communities through Smart
Banking in the spirit of
Ubuntu
2012 2013
2012 2013 2014
2014
2015 Outlook
Increase feeds production
capacities in Iligan and
Tarlac
Increase sow level to
14,000 heads and build
additional farm facilities
Expand aqua feed mill
in Vietnam, and set up
a Pilmico representative
office in Ho Chi Minh
Export flour around ASEAN
region and pursue other
opportunities through
mergers and acquisitions
Build a Pilmico Research &
Training Bakery in Cebu
2012 2013 2014

2015 Outlook
Pursue aggressive investment plan
in response to increasing market
demands
Continue offering differentiated
services and affordable innovative
products
Further build organizational
capabilities to serve the growing
market both in Cebu and in the
national arena
* Only the fourth quarter 2012 income contribution is

reflected, following the full acquisition of AboitizLand by
AEV in the same period. AboitizLand was previously owned
by Aboitiz and Company.
2012
531M
2013
483M
2014
610M
2015 Outlook
W
ork towards achieving CSR 2.0, which
involvesbigger programs with sustainable
benefits, nationwide in scope,aligned to
Aboitiz core businesses, and encourage
more participation from team members.
A
chieve universal public education by
continuing to establish and develop
Aboitiz BetterWorld schools through
SSES and techvoc schools
Improve community livelihood and
employment opportunities by expanding
microfinance base
M
inimize environmental impact by
continuing to conceptualize and identify
viable programs
U
ndertake projects that address the
health and well-being of communities,
including fund drives for disaster relief
and rehabilitation efforts
2012-2013
125M
From Aboitiz Group
2013-2014
27.4M
From Partners
2015 Outlook
C
ontinue deployment of 250 more AWS
nationwide
C
onduct Weather 101 trainings with LGUs
to include module on storm-tracking
and simulation exercises on disaster risk
reduction
P
artner with SBUs in sharing expertise on
emergency response with LGUs
Continue

to build a #WeatherWiser
Nation through trainings, communication,
and partnerships.
An n ual Report
Power
2014
Generation
11
A EV Financial Highlights
A EV Financial Summary
2012
2013
2014
% Change
(2014 vs. 2013)
81,018
(58,073)
90,876
(69,653)
109,867
(85,321)
20.9%
Operating profit
Equity in net earnings of associates
Other charges
22,945
13,322
(4,210)
21,223
10,597
(4,725)
24,546
7,244
(4,199)
15.7%
-31.6%
-11.1%
Income before income tax

Provision for income tax
32,057
(1,910)
27,095
(887)
27,591
(4,026)
1.8%
353.9%
Net Income before non-controlling interests

Non-controlling interests
30,147
(6,182)
26,208
(5,181)
23,565
(5,184)
-10.1%
Net income attributable to equity holders of parent
23,965
21,027
18,381
-12.6%
40,871
36,492
38,356
5.1%
222,463
109,464
21,908
91,090
247,088
124,539
25,622
96,927
280,997
146,062
26,991
107,944
13.7%
17.3%
5.3%
11.4%
4.34
16.50
1.58
34.2%
2.57
0.97
0.45
3.81
17.55
2.00
25.3%
2.64
1.02
0.48
3.32
19.49
1.80
20.4%
2.76
1.08
0.50
-12.9%
11.1%
-10.0%
(in Php millions)

Income Statement
Revenues
Operating costs & expenses
(in Php millions)
Revenues
EBITDA
109,867
2014
2013
2012
90,876
81,018
Core Net Income

2014
2013
2012
2014
2013
2012
Net Income to Equity

Holders of the Parent
38,356
36,492
40,871
Cash Dividend Paid to

Common
17,945
21,006
23,424
2014
2013
2012
9,939
2014
2013
11,044
2013
8,725
21,027
23,965
Cash and Cash Equivalents
2014
2012
18,381
2012
50,482
36,118
33,731
EBITDA
Financial Condition
Total assets
Total liabilities
Equity attributable to equity holders of the parent
Ratios
Per Share (Pesos)
Earnings
Book Value
Cash dividend to common
Return on equity
Current ratio
Debt/Equity
Net debt/Equity
Income Contribution Breakdown

Per Business Segment (in Php millions)
2013
2012
280,997
247,088
222,463
2014
2013
2012
107,944
96,927
91,090
2014
2013
2012
18,789
3,861 4,115
14,195
12,747
Food
3,244
1,303 1,256 1,307
292,383
633
273
291,883
301,218
Land
63*
2012 2013 2014
2012 2013 2014
2012 2013 2014
2012 2013 2014
Equity Investment Breakdown

Power
71,098
62,246 67,379
Banking
25,703
26,307
22,674
Food
3,741
Land
4,544
3,695
3,733
2012 2013 2014
2012 2013 2014
2012 2013 2014
8,559
5,505
2012 2013 2014
An n ual Report
2014
Market Capitalization
Banking
2014
Equity Attributable to
Equity Holders of the Parent
Total Assets
Power
* Only the fourth quarter 2012 income contribution is reflected, following the full acquisition of AboitizLand by AEV in the same period. AboitizLand was previously owned by Aboitiz and Company.
12
13
AboitizPower Financial Highlights
AboitizPower Financial Summary

2013
2014
Operating revenues
Operating expenses
62,153
41,697
72,055
52,578
86,759
64,409
20%
23%
Operating profit
Share in net earnings of associates
Other charges
20,456
9,940
(4,089)
19,477
6,474
(6,014)
22,351
4,009
(4,930)
15%
-38%
-18%

Provision for income tax
26,306
1,391
19,938
527
21,430
3,424
7%
550%
Net income before non-controlling interests

Net income attributable to non-controlling interests
24,916
(490)
19,411
(834)
18,006
(1,301)
-7%
56%
Net income attributable to equity holders of the parent
24,426
18,577
16,705
-10%
34,242
29,900
31,765
6%
163,105
80,646
1,566
80,893
193,939
102,688
3,622
87,629
216,761
120,681
4,118
91,962
12%
18%
14%
5%
3.32
10.99
1.54
40%
2.65
0.98
0.44
2.52
11.91
1.66
27%
2.87
1.13
0.52
2.27
12.50
1.66
21%
3.36
1.26
0.59
-10%
5%
0%
Income Statement
EBITDA
86,759
2014
2012
72,055
62,153
Core Net Income

2014
2013
2012
2014
2013
2012
Net Income to Equity

Holders of the Parent*
31,765
29,900
34,242
Cash Dividend Paid to

Common
16,841
20,124
23,702
2014
2013
2012
16,705
18,577
24,426
Cash and Cash Equivalents
40,232
2014
12,215
2014
2013
12,215
2013
31,383
2012
11,332
2012
30,678
EBITDA
Financial Condition
Total assets
Total liabilities
Equity attributable to equity holders of the parent
Ratios
Per Share (Pesos)
Earnings
Book Value
Cash dividend to common
Return on equity
Current ratio
Debt/Equity
Net debt/Equity
Income Contribution
Attributable Power Sales
Equity Attributable to
Equity Holders of the Parent
Total Assets
2014
2013
A boit iz P ower Corporati on
2012
14
216,761
193,939
163,105
2014
2013
2012
91,962
87,629
80,893
2013
2012
315,684
250,193
271,900
*AboitizPower
Generation
22,758
Market Capitalization
2014
(in GWh)
10,660 10,949
15,226
Generation
13,476
Distribution
2012
Parent &
Others
2,805
11,272
3,227
2014
Distribution
3,203
124
2013
26
3,934
4,076
4,480
2012
2013
2014
(1,138)
2012
2013
2014
An n ual Report
Revenues
2014
(in Php millions)
2013
% Change
(2014 vs. 2013)
2012
(in Php millions)
15
Chairmens Message
In 2014, the Philippines experienced GDP (gross

domestic product) growth of6.1%, falling short of
the governments 6.5-7.5% target for the year, mainly
due to lower fiscal spending. This performance
was, nonetheless, above market expectations and
positioned the country as Asias second fastestrising economy last year. Together with a favorable
international credit rating, and a record-setting
stock market, all these indicate a good amount of
confidence in our economy.
Both government and economic analysts are
confident of achieving higher GDP growth in 2015 on
the back of higher government spending, stronger
private consumption, stable OFW remittances, lower
oil prices, and lower inflation.
The Philippine market today certainly offers

substantial opportunities for growth in all our core
businesses, and we are eager to reap the benefits of
these exciting growth prospects.
16
20 Years of Creating Long-Term Value

In 2014, Aboitiz Equity Ventures (AEV) celebrated
its 20th listing anniversary at the Philippine Stock
Exchange (PSE), and its initial public offering (IPO)
was the inflection point that fueled our companys
explosive growth. Our IPO price in 1994 was P5.70
per share; today, after adjusting it for stock dividends,
it is approximately 15 times its initial price. Our total
return to shareholders over the past five years is
46% compounded annually, and AEV is recognized as
one of the best performers for a PSE-listed company.
Today, we also have one of the highest dividend yields
among blue chip conglomerates.
We interpret the outstanding performance of the

AEV stock price as a vote of confidence and approval
of our business policies, practices, and strategic
initiatives. Over the past two decades, whether
through organic growth, strategic partnerships or
acquisitions, we have remained disciplined and
focused on our core competencies and strategic
plans. Our end goal is to create long-term value for all
our stakeholders, not just our shareholders but also
our customers, team members, and our communities.
Group Strategy
Just as it was in 1994 when there was much optimism
in the air with many exciting opportunities, today with
sustained strong macroeconomic fundamentals and
confidence on the countrys economy, many growth
and investment opportunities are available for the
AEV Group.
Last year, the Board of Directors and the senior
management group conducted an extensive review
of the Groups current and future strategy. We
confirmed that the Philippine market still offers
new investment opportunities across all our core
businesses and with the ASEAN integration, there is
an ever-increasing competition from both local and
foreign players.
The Groups four strategic pillars, which were
discussed in last years annual report, are still highly
relevant to the direction we intend to pursue. As
we move forward, we will remain grounded on our
commitment to grow and expand our business,
increase stakeholder engagement, build human
capital, and carry on execution excellence in
everything we do.
An n ual Report
Warmest greetings to all of you!
2014
Over the past two decades, whether through

organic growth, strategic partnerships or
acquisitions, we have remained disciplined and
focused on our core competencies and strategic
plans. Our end goal is to create long-term
value for all our stakeholders, not just our
shareholders but also our customers,
team members, and our
communities.
17
Chairmens Message
18
The Groups other core businessespower, banking,

food, and landare uniquely positioned to tap
growth opportunities through expansion, acquisition,
greenfield development for power, innovative
products, expanded sales channels, new markets,
partnerships and strategic alliances. While we remain
firmly focused on growing our businesses in the
Philippines, we will seek out strategic investment
opportunities in the ASEAN region. We will not bet
the farm but aim to take prudent and deliberate
steps in planning and executing our investment
plans.
Succession
With the significant growth of the Groups businesses
over the past few years, coupled with our future
growth aspirations, we would like to ensure a more
seamless transition of leadership and the continued
execution of our long-term strategic plans.
In November 2014, the Board of Directors of Aboitiz
& Company, AEV, and AboitizPower announced the
deferment of the retirement of Group CEO Montxu
Aboitiz and AboitizPower President and COO Tony
Moraza to December 31, 2019. This means a threeyear extension for Montxu and a two-year extension
for Tony. We are confident that in a few years, we will
be ready for an easy handover of leadership.
Our solid corporate governance structure has largely
contributed to the success of the Group over the past
100 years, and this includes a smooth passing of the
baton to the next group of leaders.
In 2014, we further strengthened our Groups
sustainability commitment with the launching of the
Aboitiz BetterWorld campaign. It communicates our
sustainability mindset that we can do well by doing
We are doing good by living out our core value

of responsibility through our corporate social
responsibility (CSR) initiatives in the Aboitiz
Foundation and WeatherPhilippines Foundation.
Since the late 1980s, the Groups efforts have evolved
from CSR 1.0, or simple philanthropic activities, to
CSR 2.0 that involves more sustainable projects with
longer-term benefits for our beneficiaries. This means
engaging more effective programs that address
community needs, especially in our focus areas of
education, enterprise development, environment,
health, and well - being, are national in scale, and
encourage more participation from our team
members.
In 2015, we mark the 95th anniversary of our

parent company, Aboitiz & Company. This important
milestone reminds us of our storied journey from
a private, family-owned business to a publicly held
company that has touched the lives of so many of
our stakeholders.
To all our stakeholders, thank you for being our
partners in this exhilarating journey of growth.
Jon Ramon Aboitiz
Chairman of the Board

Enrique M. Aboitiz

An n ual Report
Revisiting our growth strategy also gave us invaluable

insight into the huge demand for infrastructure
in local and regional markets. Encouraged by this
development, we have added infrastructure and
infrastructure-related businesses as the fifth leg
of our core businesses. We foresee an enormous
need for infrastructure investment and want to
play a major role in this sector. We believe that
venturing into the infrastructure sector meets our
growth criteria of being able to tap into existing core
competencies. It is a business that is scalable and has
a potential to provide us with strong recurring profits
and cash flow.
In our commitment to transparency, we apply

international benchmarks in all our sustainability
efforts. Starting in 2014, we have been preparing
our Groups Sustainability Report using the GRIs G4
Reporting Framework. This allows us to focus on
performance indicators that are critical and important
to our business and our key stakeholders.
Message of Thanks
As a final word, we thank you, our dear
shareholders, for your unwavering trust and
confidence in our company. Our deep appreciation
also goes out to all our business partners, host
communities, and customers across the country for
their invaluable partnership. We also pay tribute to
all our team members across the Aboitiz Group for
their commitment and contribution, truly driven by
the Aboitiz Passion for Better Ways.
2014
The Groups other core businesses - power, banking, food, and land are uniquely positioned to tap growth opportunities through expansion,
acquisition, greenfield development for power, innovative products, expanded
sales channels, new markets, partnerships and strategic alliances. While we
remain firmly focused on growing our businesses in the Philippines, we will
seek out strategic investment opportunities in the ASEAN region. We will
not bet the farm but aim to take prudent and deliberate steps in planning
and executing our investment plans.
good, always making the right long-term decisions

that balance the interests of people, planet and profit.
We developed key metrics for each focus area where
we can make the biggest difference in the lives of all
our stakeholders.
19
CEOs Message
Our disciplined investment approach hinges on

two very basic criteria: covering our cost of equity
and a bias for strong cash flow. This has allowed us
to fund our expansion program while at the same
time pay out generous annual cash dividends to all
of you. Over the years, we have been true to our
dividend policy of paying out at least one-third of
the previous years earnings for AEV, and one-half
of the prior years earnings for AboitizPower, and at
times even exceeding it.
You will also see from our CFOs report that our
balance sheet remains to be very strong and we
have ample capacity to lever it up as we pursue
investment opportunities.
With the Groups success over the past 20 years,

our challenge is to outperform ourselves. We will
continue to roll up our sleeves, raring to take even
bigger and bolder steps towards achieving our
growth aspirations.
20
Performance of our Strategic Business Units

AEV closed 2014 with a consolidated net income
of P18.4 billion, 13% lower than in the previous
year. The decline, which was anticipated, was due
to lower contributions from our power and banking
business units.
We expect 2015 earnings to be better than last

year with the commissioning of several power
plants. Our strategic growth plans remain intact
as we pursue to further strengthenand expand
our businesses, in keeping pace with the countrys
economic growth.
Power
AboitizPowers income contribution to AEV amounted
to P12.7 billion, a 10% decrease from the previous year.
The drop in earnings was due to the full-year impact
of the new steam supply agreement, the Geothermal
Resource Sales Contract (GRSC), of our Tiwi-MakBan
plants, limited operations at the Magat plant due to
low water levels, and the expiration of the Pagbilao
and Magat plants income tax holidays. Our large hydro
plants were also adversely affected by lower average
prices for both spot and ancillary services sales.
In 2015, our total attributable net sellable generating
capacity will increase from 2,250 megawatts (MW)
to 2,532 MW, with the addition of 8 MW from
the optimization of Binga hydro plant, and the
commissioning of the 14-MW Sabangan hydro plant,
and 260-MW (net) Davao coal plant.
While power supply in Mindanao continued to be a
challenge, outages in our distribution utilities were
kept to a minimum thanks to our embedded power
plants in Davao Light and Cotabato Light, as well as
the participation of many large customers in the
Interruptible Load Program (ILP). The ILP, which VECO
pioneered in 2010, has proven to be a viable, practical
and cost-efficient solution to address a short-term
power shortage. We fully support the ILP and believe
it will play a key role in increasing power reserves in
the Luzon grid this summer.
The power business continues to provide the lions

share of your companys consolidated net income at As part of our program to increase our power
71%, followed by the banking, food, and land units. generation capacity by over 2,000 MW over the next
An n ual Report
Since going public two decades ago, the AEV

Group has become one of the countrys largest
conglomerates in terms of market capitalization.
Both AEV and AboitizPower are recognized as two of
the best performers at the Philippine Stock Exchange
in terms of total return to shareholders and dividend
yield among blue chip companies.
2014
Our disciplined investment approach

hinges on two very basic criteria: covering
our cost of equity and a bias for strong
cash flow. This has allowed us to fund
our expansion program while at the same
time pay out generous annual
cash dividends.
21
CEOs Message
As we pursue our growth strategy, we look back

at how your company has evolved with the power
industry that has transformed itself into a competitive
and market-driven one, with numerous new entrants
to the business. We have built a diversified portfolio
of power assets with a significant presence in all three
grids from a combination of PSALM-privatized assets,
acquisitions, and greenfield developments in hydro,
geothermal, coal, and oil power plants.
Our goal is to build a great retail bank. UnionBanks

greater focus on expanding its retail business, most
notably CitySavings teacher loan business, will
continue to build market share in Luzon and take
advantage of emerging opportunities in the civil
servant market segment.
Core to our gentailer (generator-retailer) strategy

is Open Access which you often hear us refer to as
the Holy Grail. It is only through Open Access that
end-users are given the power of choice; this will
truly transform our power industry into a competitive
market place. This will also give AboitizPower the ability
to expand our markets beyond distribution utilities and
the spot market. Open Access gives us the ability to
expand our reach to end-users beyond our franchise
borders, selling power to contestable customers.
22
Over time, we hope to see the threshold of the

contestable market moving from 1 MW to 750
kilowatts (kW), then down to 500 kW, and eventually
all the way down to households. We have been
steadily increasing our sales to contestable customers
since Open Access was implemented in June 2013.
Building capacity ahead of demand, expanding our
networks, Open Access, and our gentailer model will
remain at the core of our growth strategy. We are
also looking at expansion opportunities in overseas
markets where it makes sense from a strategic
standpoint, and where we can earn a risk-adjusted
rate of return on these investments.
We are also refocusing our efforts to grow our loan

book and our other consumer products to adapt to an
environment of high liquidity across the industry.
Food
Pilmicos income contribution for 2014 grew by
4% year-on-year to P1.3 billion, propelled by the
remarkable performance of our farms whose net
income jumped by 101% to P377 million. Despite
the influx of cheaper imported flour, our flour
volume increased by 2%, while our feeds volume
grew by 8%, effectively increasing our market
share.
The company experienced a landmark year as it
ushered the Aboitiz Groups entry into the ASEAN
market. Pilmico acquired a 70% equity stake in
Vietnam-based feed mill operator Vinh Hoan 1
Feed JSC (VHF), its first feed mill operations in the
country. We will continue to explore opportunities
for cross-border trade in the region.
We have allocated a total of P2.7 billion to support
Pilmicos efforts to build a new layer farm and
expand the capacity of various facilities for its feeds
and farms divisions.
Land
AboitizLand registered a 132% year-on-year growth in
its income contribution of P633 million in 2014. The
growth was mainly driven by the completion of its
acquisition of LiMA Land, higher residential sales, and
increased commercial occupancy levels. The Outlets
at Pueblo Verde achieved 100% occupancy within its
first year of operations.
Marking 20 years of building and nurturing
communities, AboitizLands sales reached new
heights as it reached the P3-billion mark, which
is 86% higher than last years performance. The
company is spending P3.7 billion mostly to build its
land bank as it continues to aggressively expand on
the national level and ensure a sustainable flow of
pipeline projects.
In 2015, our joint venture with Ayala Land will break
ground for the development of a new 15-hectare city
center in Mandaue, Cebu that will include innovative
residential, commercial, and office hubs.
Infrastructure
As your Chairmen Jon and Endika have mentioned,
we are adding infrastructure and infrastructurerelated businesses as our fifth business leg. The
Philippines needs to raise public infrastructure
spending from 2.5% to 5% of GDP to catch up with
its ASEAN neighbors. We see huge public and private
investment in this sector in the next 10-15 years, and
we want to play a significant role in it.
Despite delays in the bidding and review process
of governments Public-Private Partnership (PPP)
projects, and our experience during the CaviteLaguna Expressway project bidding, we remain
supportive of these programs. However, we intend to
go beyond dependence on PPP alone, and will pursue
selective acquisition opportunities and project
developments from scratch.
We are currently working on the necessary permits
for the Davao bulk water project, together with
our partner, J.V. Angeles Construction. This project
involves the construction of a water treatment facility
and conveyance system that will deliver 300 million

liters per day (MLD) of treated bulk water to support
Davao Citys growing needs. This is the countrys
largest private bulk water supply project to date.
We also joined a consortium with Ayala Land, SM
Prime Holdings and Megaworld to participate in
the bidding for the P123-billion Laguna Lakeshore
Expressway-Dike Project.
Corporate Center
As we pursue further growth, we will strengthen
the AEV Corporate Center as the knowledge center,
governance agent, and business partner of our
strategic business units. It will continue to introduce
best-in-class knowledge and practices, take the
lead in implementing Group initiatives, and provide
value-added services. The Corporate Center is also
responsible for defining policies and standards that
will bring everyone across the Group to the same
level of excellence.
As Jon and Endika mentioned in their message, in
2014 we extensively reviewed the Groups current
and future strategy. The review enabled us to
confirm that our four strategic pillars are still very
much relevant to the Groups future direction.
These pillars are: grow the business, stakeholder
engagement, execution excellence, and build human
capital.
We intend to continue growing AEV but our
challenge is not to grow at all costs, but expand in a
way where we still generate returns that are above
our cost of capital. We also want to grow while
maintaining prudent levels of debt.
Without our stakeholders, we cannot accomplish
our goals. We need to consistently deliver value to
all of them, including our shareholders, our team
members, regulators, our customers, and our
communities. Delivering value is at the heart of
stakeholder engagement.
To support our growth, it is imperative that we build
human capital. We will continue to keep a deep pool
An n ual Report
Banking
UnionBanks income contribution dropped by 21%
year-on-year from P4.1 billion in 2013 to P3.2 billion
in 2014 due to the exceptionally heavy trading gains
earned in 2013. On the other hand, netting out the
impact of trading gains, the bank actually performed
strongly during the year, with net interest income
growing by 20% to P10.6 billion in view of the robust
expansion in average earning assets.
2014
five years, we expect to invest P52 billion in 2015 on

various greenfield and brownfield projects. Along
with the increase in non-renewable capacity, we are
also vigorously pursuing and growing our renewable
energy portfolio. This includes solar power through
our partnership with US-based SunEdison, Inc., a
number of run-of river hydro plants, a potential pump
storage project of SN Aboitiz Power, and several
geothermal projects across the country.
23
CEOs Message
Mission
24
Grow the
Business
Integrity
Stakeholder
Engagement
Teamwork
Build Human
Capital
Innovaon
Execuon
Excellence
Responsibility
of best-in-class team members so there are no issues

on succession and competency gaps. Achieving this is
a joint responsibility of the AEV Corporate Center and
the business units.
success, driven as they are by the Aboitiz Passion

for Better Ways. Let us always be guided by our
core values of integrity, teamwork, innovation and
responsibility in everything we do.
For us to sharpen our competitive edge, we need

to execute best-in-class processes. We will carry on
execution excellence in everything that we do.
To all our shareholders, thank you for your continued

trust and confidence. We hope you are all as excited
as we are about our journey towards realizing our
vision to be a truly sustainable enterprise that we can
entrust to future generations.
Message of Thanks
On a personal note, I would like to thank the Board
of AEV and AboitizPower for their guidance and for
entrusting me to continue to lead as your Group CEO
until 2019, which means a three-year deferment of
my retirement.
With our strategic plans well laid out, exciting times
are certainly ahead of us, and I look forward to
leading and working with you through our continuing
journey of further growth.
Thank you to all our fellow team members
who constantly inspire us with their hard work,
commitment, and contributions to the Groups
Erramon I. Aboitiz
Chief Executive Officer

2015 promises to be an exciting year

for AEV as we continue to explore
new opportunities for growth, both at
home and in the region. The business
landscape is evolving on all fronts, and
we are gearing up financially and
preparing for these changes.
An n ual Report
Core Values
To create long-term value for all our Stakeholders
2014
Strategic Pillars
AEV CFOs Message
25
AEV CFOs Message
Part of the capex will also be deployed to expand the

land bank of AboitizLand along with ongoing projects
that will grow its land development portfolio. Lastly,
we aim to continue to grow the branch network of
UnionBank and its subsidiary, CitySavings.
The domestic economy saw another year of robust
growth under a low interest-rate environment, and
the Aboitiz Group successfully tapped the debt
capital markets to fund its own growth initiatives.
During 2014, we completed several debt transactions,
including the P33-billion project finance loan for
AEV Group Capital Expenditures

(in Php billions)*
60
(projected)
26
25
2011
18
25
31
2012 2013 2014 2015
*Includes 100% of subsidiaries and affiliates
Despite all the additional debt, your companys

balance sheet remains strong, with relatively low
gearing. At year-end 2014, net-debt-to-equity stood
at only 0.5x, with net-debt-to-EBITDA at 1.5x. AEVs
consolidated debt maturity profile is well within the
parameters we have set to mitigate liquidity and
refinancing risk over the remaining life of this debt.
And with the historically low interest rates currently
prevailing, we have deployed a strategy of locking
in interest rates on almost all of our term debt, to
minimize interest rate risk.
In March 2014, your Board approved a total cash

dividend of P1.80 per share, which included a special
dividend of P0.53. Total dividends paid amounted to
P9.9 billion, or 47% of the previous years earnings,
which is well above our 33% minimum dividend
payout ratio. This translated to a dividend yield at the
time of 3%.
We are currently in the advanced stages of closing

several project finance packages for our newest
greenfield power plant projects, including our
510-MW baseload plant in Toledo City, Cebu and
our 68-MW Manolo Fortich run-of-river hydropower
plants in Bukidnon. We expect to close these
transactions within the third quarter or earlier. AEV
also intends to tap the retail bond market in the
second half to fund various infrastructure-related
businesses. I am grateful to the various domestic
and foreign financial institutions for their valuable
support in all these debt transactions.
2015 promises to be an exciting year for AEV as

we continue to explore new opportunities for
growth, both at home and in the region. The
business landscape is evolving on all fronts, and we
are gearing up financially and preparing for these
changes. We are confident that we will continue to
play a meaningful role in the countrys growth story,
mindful of our mission to do well by doing good.
In closing, I wish to thank our various stakeholders
our customers, partners, lenders, and suppliers
for their continued support to the Group. I would
also like to thank you, our dear shareholders, for
your unwavering confidence and trust in your entire
management team.
We have also taken steps to further improve the

way we manage our risks, with the objective of
achieving the optimal balance between retaining and
transferring risk, based on our clear understanding of
our risk appetite and value at risk.
Your company has aggregated the Groups insurance
requirements and has come up with facility
programs to further improve the insurance cover
for both our operational assets and new projects
under development. This initiative has resulted in
lower premiums, more clarity on cover, and better
administration of insurance programs across the Group.
Stephen G. Paradies
Senior Vice President

Chief Financial Officer
An n ual Report
Consolidated EBITDA (Earnings Before Interest, Taxes,

Depreciation, and Amortization) rose by 5% yearon-year to P38.4 billion. Beneficial EBITDA, a more
meaningful metric for us, remained flat at P32.7
billion. By the end of the year, cash balances stood at
P50.5 billion.
For 2015, we have budgeted about P60 billion in

capital expenditures (capex), a significant increase
from the P31 billion in 2014. The bulk of this years
capex will go to AboitizPowers continuing efforts,
together with its partners, to increase total capacity
by over 2,000 MW in the next five years. Meanwhile,
our food unit Pilmico is expanding the scale of its
feeds and farm divisions, including the recently
acquired feeds business in Vietnam.
It has also helped us reduce risk through the continuing

risk surveys performed on our operating assets.
2014
In 2014, your company posted a consolidated core

net income of P17.9 billion, a 15% dip from the prior
years figure. Our banking unit posted lower results,
as trading gains in 2014 were not as robust as in
2013. Power generation also saw a drop in its core
income due to several factors, including the expiry
of the tax incentives granted to Therma Luzon, the
weaker performance of SN Aboitiz Power, due to low
water levels, and the full-year effect of the new steam
supply contract in our geothermal power unit. This
core income translates to an earnings per share of
P3.24, and a Return on Shareholders Equity of 20%.
Total earnings contributions from AEVs strategic
business units came from power, which accounted
for 71%, followed by banking at 18%, food at 7%, and
land at 4%.
Pagbilao Energy Corp., and the P10-billion retail peso

bond for AboitizPower.
27
AboitizPower CFOs Message
Shareholder Value
Earnings and Dividends
(in Php billions)
23.96
21.24
21.03
8.73
8.73
2011
2012
Earnings
18.38
11.04
Dividends
9.94
*Amounts paid in
succeeding year
2014
2013
Dividend Per Share (DPS) and Dividend Yield*
2.00
1.58
Armed with a strong balance

sheet and healthy cash flows, we
are more than prepared to continue
expanding our portfolio by investing
in greenfield and brownfield projects
nationwide to keep pace with the
countrys economic progress.
1.80
Dividend per Share
(in pesos/share)
1.11
3.3%
3.4%
Dividend Yield*
*Yields are computed by
dividing DPS by the closing
price of declaration date
3.0%
1.9%
2012
2013
28
High
Low
2014
61.50
48.90
2013
60.30
40.00
2012
54.80
40.20
Share Price Performance

2014 (%)
YTD March 31, 2015 (%)
AEV
-3%
10%
PSEi
23%
10%
0% 46%
(1 year)
(5 year)
* TRS is computed by combining share price appreciation

and dividends paid to show TRS expressed as a
compounded annual growth rate (CAGR)
An n ual Report
Total Return to Shareholder (TRS)*
Year
Year
2015
2014
Share Price (Peso/Share)
2014
29
AboitizPower CFOs Message
Year-End 2012
30
With Off-taker
Generation Based
1,305 MW
With Off-taker
Capacity Based
381 MW
Without Off-taker
605 MW
With Off-taker
Generation Based
253 MW
26%
17%
Year-End 2014
57%
With Off-taker
Capacity Based
1,682 MW
Without Off-taker
273 MW
12%
12%
76%
To help us gear up for our growth initiatives,

AboitizPower tapped the bond market for its capital
expenditures (capex) last year, raising P10 billion from
the issuance of our fixed-rate retail bonds, which
earned the highest possible score from PhilRatings for
their strength as a debt instrument. We also closed
a new loan amounting to P33 billion to support our
Pagbilao expansion project. I am pleased to note that
for both these deals, we were able to secure terms
that reflect the risk profile and long-term nature of
our investments.
In April 2014, we were able to pay out a total of P12.2

billion in cash dividends, or 66% of the previous years
earnings, with a yield of 4.0%.
For 2015, AboitizPower together with its partners

have earmarked about P52 billion for capex as part of
the companys ongoing efforts to boost total capacity
by around 2,000 MW over the next five years. These
investments will be tapping the right mix of energy
sources that aim to balance the interests of people,
planet, and profit. We recognize that demand for
power will continue to grow as the economy expands,
and we are prepared to do our share.
Armed with a strong balance sheet and healthy

cash flows, we are more than prepared to continue
expanding our portfolio by investing in greenfield and
brownfield projects nationwide to keep pace with the
countrys economic progress. After all, we consider
it our responsibility to provide reliable, ample, and
reasonably priced power. It is our way of doing well
by doing good. I will do my best as your CFO to work
closely with our stakeholders to realize this.
Despite many challenges, AboitizPower has remained

committed to deliver value to its stakeholders. Market
capitalization is now at P315.7 billion, an increase of
26% from P250.2 billion in 2013. Combining this with
our historically attractive dividend yield, total return
to shareholders registered at a compounded annual
growth rate of 42% over the past five years.
To bankroll these growth plans, we expect to draw

Thank you very much for your continued support,
down more debt in 2015. At present, your finance
trust, and confidence in AboitizPower.
team is already engaged in talks with lenders for
innovative debt structures designed to prolong tenors
and manage more efficiently our capital infusion,
which will help enhance equity returns. This is
possible because as a company, we have maintained
a strong balance sheet over the years, with a current
consolidated net debt-to-equity ratio of 0.6x from
0.5x a year before.
Our borrowing strategy is a key component of our
ability to maximize returns and effectively manage
our debt maturity profile. For 2014, our Return on
Equity was 21%, which is admirable considering the
prevailing low-interest rate environment we are
experiencing. Additionally, this has allowed us to
Manuel R. Lozano
First Vice President

An n ual Report
Bulk of the offtake agreements now under capacity-based contracts
maintain a balance between strong dividend payments

and funding growth.
2014
In line with our thrust to transform AboitizPower into

one of the countrys largest generator-retailers, we
were able to contract 14% of our net sellable capacity
of 2,250 MW with contestable customers amounting
to 311 MW. We expect to further grow this share in
The decline in the companys bottom line is attributed the coming years. Through these initiatives, we are
able to minimize our risk and realize the benefits of a
mostly to the expiration of the tax holidays some of
our plants had enjoyed in previous years, the impact more stable and predictable cash flow environment.
of the higher fuel cost brought on by the full-year
However, due to the aforementioned factors, the
implementation of the Geothermal Resource Sales
Generation Group ended 2014 with a net income of
Contract (GRSC) for the Tiwi-MakBan geothermal
P13.5 billion versus the previous years P15.2 billion.
facilities, as well as the unusually dry spell that
adversely impacted several of our hydropower plants,
Our distribution business saw its distributed volume
especially Magat.
expand by 10% to 4,480 GWh from 4,076 GWh in the
previous year. However, net income at year-end 2014
In 2014, our generation business registered a 13%
year-on-year increase in capacity sales due to robust remained flat at P3.2 billion. Gross margins on a per
kWh basis decreased from P1.77 to P1.71 because
demand. During the year, we were able to contract
we needed to operate our embedded plants to meet
close to 90% of our capacity, even as we tried to
the shortfall in the Mindanao grid. Strong demand
further diversify our customer base.
For 2014, AboitizPowers core net income decreased
by 16% to P16.8 billion from P20.1 billion in 2013,
even as revenues grew by 9% from P92.6 billion in
2013 to P100.9 billion on the back of stronger sales.
growth from our lower-margin industrial customers

also contributed to the decline in margins.
31
Shareholder Value
Earnings and Dividends
(in Php billions)
24.43
21.63
18.58
11.33
9.71
2011
2012
16.71
12.22
12.22
Earnings
Dividends
*Amounts paid in
succeeding year
2014
2013
Dividend Per Share (DPS) and Dividend Yield*
1.66
1.54
1.66**
1.66
Dividend per Share

(in pesos/share)
4.3%
4.1%
2012
2013
Share Price (Peso/Share)
32
High
Low
2014
42.90
33.90
2013
39.95
31.00
2012
37.50
28.75
Share Price Performance

2014 (%)
4.0%
2014
3.7%
*Yields are computed by

dividing DPS by the closing
price of declaration date
**Composed of P1.14/
share (regular) and P0.52/
share (special)
2015
Total Return to Shareholder
Year
Year
Dividend Yield*
YTD March 31, 2015 (%)
AboitizPower
26%
4%
PSEi
23%
10%
30% 42%
(1 year)
(5 year)
*TRS is computed by combining share price appreciation

and dividends paid to show TRS expressed as a
compounded annual growth rate (CAGR).
Power Generation
AboitizPower currently generates electricity
from coal, geothermal, oil, and hydro power,
and recently forged a partnership to develop
its solar energy capability.
How Power is Provided
Power Distribution
AboitizPower delivers electricity through its
distribution utilities VECO, Davao Light,
Cotabato Light, SFELAPCO, Subic EnerZone,
Mactan EnerZone, Balamban EnerZone and
LiMA EnerZone.
AboitizPowers strategy is to provide the right mix of energy sources

that supplies the nation with reliable and ample power supply
at a reasonable cost, and produced with the least impact on the
environment and its host communities.
Retail Electricity Supplier (RES)

AboitizPower supplies electricity directly to
large-scale users through AESI and
AdventEnergy, the ocial retail electricity
suppliers of AboitizPower. They empower
customers to choose their own sources of
energy and rate structure.
RES
1
2
Power Generation
Transmission
Power Distribution
Power plants across the country

produce energy from various
energy sources.
The energy produced by the

power plants pass through
transmission lines to reach
the power distribution
network.
Distribution utilities and

electric cooperatives deliver
power to their customers.
5
4
Retail Electricity Supplier (RES)
Customers
Contestable Customers
A RES is an entity authorized by

the Energy Regulatory
Commission to sell, broker, or
market electricity directly to
large-scale users.
Industrial, business, and

residential customers get their
electricity from distribution
utilities and electric
cooperatives.
Some customers who

consume an average demand
of 1 MW and above contract
their power requirements
directly from the RES in order
to have more exibility in
choosing their preferred
energy sources, rate structure,
and supplier.
Business Review: Power
We see ourselves as an integral partner in

nation-building, which is why we are consistently
increasing our capacity and exploring
new sources of energy.
In five years we should have increased capacity
by more than 2,000 MW, providing the right mix
of renewable and non-renewable energy sources
that sufficiently meet the economys increasing
energy demands, with the least impact on the
environment and our host communities.
36
Antonio R. Moraza
President and COO
AboitizPower recorded a consolidated net income of P16.7
billion in 2014, a 10% decline from P18.6 billion in 2013. This
translated to an earnings per share of P2.27 compared to P2.52
in 2013. Core net income for 2014 amounted to P16.8 billion,
down by 16% from the previous year.
(in Php millions)
% change
Consolidated
2012
2013
2014
Revenues
62,153
72,055
86,759
20%
EBITDA
34,242
29,900
31,765
6%
Net Income
24,426
18,577
16,705
-10%
Core Net Income
23,702
20,124
16,841
-16%
Beneficial
2012
2013
2014
Revenues
90,639
92,624
100,948
9%
EBITDA
36,530
33,025
32,615
-1%
(2014 vs. 2013)
% change
(2014 vs. 2013)
An n ual Report
Beyond our shores, AboitizPower is exploring

investment opportunities in Asia.
The Tudaya 2 hydropower plant generates 7 MW of clean renewable energy for the
Davao del Sur Electric Cooperative that delivers power to the Mindanao grid.
2014
We are also looking at ways to constantly

innovate and modernize services. Our
vision is to operate an electric distribution
network that optimizes the latest
technology to improve reliability, resiliency,
flexibility, and efficiency in the delivery of
electric service to our customers.
37

Power Generation
Large Hydro
The Generation Group accounted for 81% of

earnings contributions from AboitizPowers business
segments, recording an income share of P13.5 billion
in 2014, down by 11% from P15.2 billion in 2013.
The decline is attributed to the full-year impact of
the implementation of the Geothermal Resource
Sales Contract (GRSC) of the Tiwi-MakBan plants,
the limited operations of the Magat plant due to low
water levels, and the expiration of the Pagbilao and
Magat plants income tax holiday during the year.
The large hydropower plants were also adversely
impacted by lower average prices for both spot and
ancillary sales.
The Groups revenues went down by 1% to P58.4
billion. The attributable net generation rose by 3%
from 10,949 gigawatt hours (GWh) to 11,272 GWh,
as electricity sold through bilateral contracts, which
made up 86% of total energy sold during the period,
expanded by 7% to 9,661 GWh. On the other hand,
spot market sales decreased by 16% from 1,914
GWh to 1,612 GWh as low water levels during the
dry season constrained the operations of the Magat,
Ambuklao, and Binga plants.
Higher capacity sales in 2014 through bilateral
contracts and ancillary services resulted to a 13%
increase in AboitizPowers attributable sales to 1,800
megawatts (MW). The growth was driven by the 200MW full capacity operations of Therma Mobile, Inc.
in the second quarter of 2014, and the increase in
water levels in the second half of 2014 for the large

hydropower plants.
Geothermal
Attributable energy sold from the Tiwi and MakBan

geothermal plants of AP Renewables, Inc. (APRI)
amounted to 2,772 GWh, a 4% decrease from the
previous year due to the post-effects of typhoon Glenda,
affecting the capability of the steam fields during the
second half of the year. This translated to P12.4 billion
in revenues, down by 11% from the previous year, and a
capacity sold factor of 79% for 2014.
On the other hand, fuel costs have increased yearon-year by 20%, with the full-year implementation of
the GRSC and the interim agreement between APRI
and Philippine Geothermal Production Company, Inc.
(PGPC).
In December 2014, Aboitiz Energy Solutions, Inc. (AESI)
successfully secured a 40-MW supply from the Unified
Leyte Geothermal Power Plant (ULGPP) complex as an
Independent Power Producer (IPP) administrator after
the Power Sector Assets and Liabilities Management
Corporation (PSALM) bid out strips of the power
plants capacity to various IPP administrators.
Attributable volume sold from the large hydropower

plants of SN Aboitiz Power (SNAP) increased by 5% to
1,652 GWh as a result of higher ancillary sales, owing
to the full-year effect of the firm volumes sold to the
National Grid Corporation of the Philippines (NGCP),
based on its provisional Ancillary Services Provider
Agreement (ASPA), which took effect in August 2013.
Year-on-year revenues dropped by 32% to P6.2 billion,
as prices from the spot market normalized from its
high levels during the November to December 2013
price hike.
In 2014, SNAP-Magat completed the rehabilitation of
the 360-MW Magat plant after undergoing half-life
refurbishment of the facilitys electro-mechanical
equipment. With its three large plants now operating at
a more efficient level, SNAP is now powering the Luzon
grid with nearly brand-new hydropower plants.
Meanwhile, SNAP-Magat and National Irrigation
Administration (NIA) have signed a Memorandum of
Understanding for SNAP to develop the proposed 6-MW
Maris South Canal and 1.75-MW Maris North Canal minihydropower projects. This was after SNAP-Greenfield
secured renewable energy service contracts (RESCs)
from the DOE for the two projects in December 2013.
SNAP-Greenfield is currently waiting for DOEs approval
of the assignment of the RESCs to SNAP-Magat.
Moreover, SNAP-Ifugao has also secured RESCs for its

proposed 350-MW hydropower complex project in
Ifugao, which is composed of three facilities: the 100MW Alimit and 10-MW Olilicon plants, and the 240-MW
Alimit pumped storage facility. Both the Maris and Alimit
projects are currently in the feasibility study stage.
In late 2014, SNAP-Magat and NIA held a ground-breaking
ceremony for the optimization of the Maris Reservoir. This
project aims to increase the reservoirs storage by 8 million
cubic meters and improve its structure for better irrigation
water delivery and safety by the first quarter of 2016.
Run-of-River Hydro
Attributable energy sold from Hedcors run-of-river

plants rose by 9% to 690 GWh year-on-year, brought
on by the addition of the fully-contracted Tudaya plant
in Davao, which came on-stream in 2014. Capacity
sold factor in 2014 was at 51%, and total revenues
amounted to P3.1 billion, up by 10% from the
previous year.
In its bid to improve operational efficiency, Hedcor
updated and automated some of its plants and
substations in Benguet. 2014 was another banner year
for the company with the completion of its 13.7-MW
Tudaya plants in Davao del Sur, which are now online
to serve Davao Light and Power Company, and Davao
del Sur Electric Cooperative.
Growing its geothermal power supply portfolio,

through the exploration of potential steam wells
in Negron Cuadrado and Mt. Apo, remains one of
AboitizPowers goals for 2015.
38
Power Generation
(Beneficial)
2012
2013
2014
Revenues
62,539
58,836
58,409
-1%
EBITDA
32,121
27,999
27,041
-3%
Income Contribution
22,760
15,226
13,476
-11%
% change
An n ual Report
(2014 vs. 2013)
AP Renewables, Inc.s Tiwi geothermal facility in Albay is a key source of clean and renewable geothermal energy in the country.
2014
(in Php millions)
39

Generation Companies Overview
Coal
Attributable energy sold from AboitizPowers coal

power plants amounted to 5,511 GWh, slightly up by
2% from 2013. However, revenues from coal plants
were lower by 1% to P23.7 billion, mainly driven by
forced outages experienced by STEAG State Power,
Inc. during the first half of the year and Therma Luzon,
Inc. (TLI) during the onset of typhoon Glenda. Capacity
sold factor still rose to 93%, up by 3% year-on-year as
a result of the full-year effect of TLIs ASPA with NGCP
for 2014.
With demand for power expected to rise in the
coming years, AboitizPower aims to provide reliable
power through its various baseload plants. Hence, the
company launched the 420-MW Pagbilao III circulating
fluidized bed (CFB) coal-fired plant of Pagbilao Energy
Corporation, a consortium of AboitizPower and TeaM
Energy Corporation. Completion is expected in 2017.
Meanwhile, the 300-MW CFB coal-fired plant of
Therma South, Inc. (TSI) in Davao will be online within
2015 and will provide much-needed power to the
Mindanao grid.
Meanwhile, the 340-MW Therma Visayas baseload

plant in Cebu will likewise commence construction
in 2015, and the 600-MW Subic plant is expected to
resume construction after hurdling legal challenges.
Attributable Net Sellable

Capacity by Type
Oil
The Oil Group performed well in 2014 with an

attributable energy sold of 1,504 GWh, 25% higher
from 2013. Capacity sold factor also went up to 95%,
which translates to revenues of P12.9 billion, 46%
higher than the previous year.
The strong growth in revenues largely came from the
full operations of Therma Mobile, Inc. (TMO) in 2014
and its increase in capacity by another 100 MW after
the rehabilitation of its Navotas barges. TMO will
continue to supply a total of 200 MW of capacity to
its sole customer Meralco in 2015.
Hydro
463 MW
Renewable
893 MW
Meanwhile, Therma Marines power barges M1 and

M2 were utilized at near-baseload levels in 2014
due to the continuous power supply shortages in
Mindanao region.
Geothermal
430 MW
Overall, the Generation Group is on target in its

capacity expansion of an additional 2,000 MW in
the next five years and looks forward to a slight
improvement in 2015 earnings, with the start of
operations of TSI and Hedcor Sabangan. The Group
will continue to ensure that capacity is maximized
and customers are being served across the country.
Coal
828 MW
NonRenewable
1,357 MW
Oil
529 MW
The 300-MW Therma South baseload plant, which utilizes modern circulating fluidized bed technology, is expected to come online in 2015.
40
Plant Name
Net
Sellable
Capacity
(MW)
%
Ownership
Attributable
Net Sellable
Capacity
(MW)
Management
Company
Offtaker
Ambuklao
105
50
52.5
SNAP Benguet
WESM
Bakun
70
100
70
Luzon Hydro
NPC (2026) / BOT
Benguet 1-11
37.5
100
37.5
Hedcor
NPC (2018) / BOO

/ Bilaterals
Binga
125.8
50
62.9
SNAP Benguet
WESM / NGCP
Davao 1-5
4.5
100
4.5
Hedcor
Davao Light
Magat
360
50
180
SNAP Magat
WESM / Coops /
NGCP
Sibulan
49
100
49
Hedcor Sibulan
Davao Light
Tudaya
100
Hedcor Tudaya
DASURECO
Tiwi-MakBan
390
100
390
APRI
WESM / Bilaterals
ULGPP
40
100
40
AESI
IPPA (2022) / VECO
Mindanao
210
34
71.4
STEAG State
Power
NPC (2031) / BOT
Pagbilao
700
100
700
TLI
IIPA (2025) /
Bilaterals / WESM
Toledo
216
26
56
CEDC
Bilaterals
Cebu
66
60
39.6
CPPC
VECO
Cotabato
6.5
100
6.5
Cotabato Light
Cotabato Light
Davao
38
100
38
Davao Light
Davao Light
General
Santos
55
20
11
SPPC
NPC (2016) / BOO
Mactan
43
50
21.5
EAUC
MEPZ I
Mobile 1
96
100
96
Therma Marine
Bilaterals
Mobile 2
96
100
96
Therma Marine
Bilaterals
Mobile 3-6
200
100
200
Therma Mobile
Bilaterals
Zamboanga
100
20
20
WMPC
NPC (2015) / BOO
3,015
2014
By the second quarter of 2015, Hedcor expects to

complete the 14-MW Sabangan project, the companys
first plant in Mountain Province. Construction of the 68MW Manolo Fortich plant in Bukidnon is also underway
as compliance requirements for the project have
already been secured.
An n ual Report
AboitizPowers portfolio of generation assets accounts for 15% of the countrys installed generation capacity
2,250
41

Power Distribution
As in the previous year, all distribution utilities (DUs)

in 2014 registered system losses under the 8.5%
government-mandated cap that resulted to lower
rates. Notably, the DUs succeeded in further reducing
their system losses in 2014 after already being below
the cap in 2013.
The AboitizPower Distribution Groups revenues

increased by 11% from P29.1 billion to P32.3 billion.
The growth was driven by Davao Lights energy sales
amounting to 1,980 GWh, a 12% increase from the
previous year, and VECOs 5% higher attributable
energy sales to 1,397 GWh. Moreover, the four
EnerZones recorded a growth in total energy sales of
21% to 748 GWh due to a 16% growth in demand in
Subic EnerZone and the addition of LiMA EnerZone to
the Distribution Group portfolio. The Groups income
share was largely unchanged at P3.2 billion in 2014.
As a segment, this represents a 19% contribution to
AboitizPowers 2014 results.
Beneficial energy sales increased by 10% to 4,480
GWh from 4,076 GWh in 2013. The growth was driven
primarily by a 15% increase in the industrial customers
segment. Sales to industrial customers in 2014 reached
2,758 GWh. Energy sales from residential customers
increased as well by 3% to 1,117 GWh, while sales
from commercial customers grew by 2% to 548 GWh.
Moreover, customer growth for all distribution utilities
was up by 4%, with 843,802 customers served in 2014.
System loss (%)
2012
2013
2014
Davao Light
7.50%
7.87%
5.66%
Cotabato Light
9.50%
8.32%
8.26%
VECO
8.90%
7.79%
7.83%
SFELAPCO
2.06%
8.74%
5.84%
Subic EnerZone
4.40%
4.11%
3.51%
Mactan EnerZone
1.10%
1.05%
1.09%
Balamban EnerZone
1.60%
1.44%
0.99%
LiMA EnerZone
Davao Light employs skilled linemen to work on
its electric poles.
2.48%
The year presented some challenges as the Mindanao

grid faced a supply shortfall in the first half of the
year. But outages in Davao Light and Cotabato Light
were minimized by the standby power plans as well
as participation of many large customers to the
Interruptible Load Program (ILP). Pioneered by VECO,
the ILP is a system relief program aimed to ease the
supply shortage in the Visayas grid, and it is now also
being implemented by Davao Light.
In 2014, various projects were completed to further
improve service efficiency and reliability. VECO
completed its first one-kilometer underground
distribution system in Cebu City, from the Provincial
Capitol to the Fuente Osmea Circle. Two
100-megavolt ampere power transformers were also
commissioned.
AboitizPower was also given support by the United
States Trade and Development Agency to develop
a smart grid roadmap and implementation plan for
the Visayas region. As a result, the Hawkeye Smart
Elevated Meter Cluster technology was devised and
deployed by VECO in 2014.
42
Power Distribution
(Beneficial)
2012
2013
2014
Revenues
27,726
29,093
32,258
11%
EBITDA
4,554
5,270
5,480
4%
Income contribution
2,795
3,227
3,203
-1%
Beneficial power sales

and peak demand
2012
2013
2014
Power sales (GWh)
3,934
4,076
4,480
10%
Peak demand (MW)
964
1,026
1,102
7%
% change
An n ual Report
(2014 vs. 2013)
% change
(2014 vs. 2013)
VECO engineers inspect a TR4 transformer in Cebu. The distribution utility ensures that its facilities and
equipment are always well maintained to provide customers with reliable service.
2014
(in Php millions)
43

Davao Light is gearing up for the incoming power
supply from Therma South, Inc. (TSI) by completing its
69-kilovolt (kV) substation. It has also begun a sevenyear project to build a robust and reliable distribution
network with the installation of a 69-kV loop system.
With an increase in commercial establishments in its
franchise area and stable power supply from the TSI
Davao Coal project, Davao Light is looking to a fruitful
year ahead.
Cotabato Lights franchise has been renewed for an
additional 25 years, and it is looking forward to a
favorable year with more commercial establishments
coming to the city coupled with the steady power
supply from TSI Davao.
The Power Distribution Group is expecting another
strong year ahead despite the a mild drought in
Mindanao; the presence of TSI is expected to meet
any shortfall in supply.
2015 Outlook: Building A Better Future
For 2015 to 2019, AboitizPower has lined up greenfield

and brownfield projects across the country to meet its
target to increase capacity by 2,000 MW. The company
will also continue to pursue development opportunities,
both locally and abroad, in other energy technologies.
The Generation Group recently announced its foray

into solar energy, partnering with United States-based
SunEdison to explore the development of up to 300
MW of utility-scale solar photovoltaic power generation
projects in the Philippines over the next three years.
It has also successfully identified roughly 200 MW of
potential run-of-river hydro power projects located
across the archipelago for the next five years.
44
However, today, while the nation is still in the process

of increasing its power supply capacity, it finds itself
in the midst of a power shortage in Luzon in 2015.
AboitizPower has heeded governments call for an
expanded ILP to combat this supply deficit, and has
encouraged both its contestable customers and
DU customers to participate in the program. Eighty
customers have committed to participate, with a total
177 MW of deloading capacity made available to the
Luzon grid. The company is optimistic that ILP, along
with energy conservation measures, will be sufficient
The Groups drive to innovate and modernize

services will continue in 2015. The Hawkeye Smart
Elevated Meter Cluster technology will begin to be
implemented across the entire distribution group.
Most importantly, the technology will ensure system
resiliency to limit the impact of natural and manmade disasters, as well as further minimize system
loss. To improve operating efficiency and bring down
costs, three major initiatives will continue to be
implemented across the Group in 2015. These are the
rollout of the Quantirisk Energy Management system
to other utilities after its successful deployment
in VECO; Oracles Meter Data Management that is
set to go live by year-end 2015; and the continued
development of Google Maps-based applications.
Underground cabling will continue in VECOs
franchise area while Davao Light will implement it in
2105. Davao Light will also expand its e-Bill service to
all customers.
to address this temporary shortfall while it waits for the

completion of more power plants.
These challenges only reinforce the need to relentlessly
pursue reforms in the power sector, such as Open Access,
which AboitizPower strongly believes is the best way to
support the power industrys continued expansion. The
company looks forward to the continued drop in the
threshold for contestable customers from the current
1 MW and above, to 750 kilowatts (kW), and eventually
to 500 kW, in order to encourage more investors and
assure the viability of the Philippine power industry.
Although this may pose as a threat to its franchises,
AboitizPower believes that its knowledge of the industry
allows the company to offer better power solutions that
will differentiate it from its competitors. Looking ahead,
the company would like to maximize the benefits of Open
Access to further improve income and reduce risks. It
intends to have a balanced portfolio of contracted and
spot capacity, and contract majority of its baseload and
diesel capacity under price-stable bilateral contracts,
while offering most of its hydropower capacity for
peaking and ancillary services. Doing it this way will
minimize volatility while yielding the highest returns for
its resources.
Business Review: Banking
We are optimistic that we would be able to

overcome the challenges that lie ahead. We
are on track in the execution of our FOCUS
2020 strategy with the end view of becoming
a great retail bank. We have a constancy of
purpose that helps us ride through the cycles
to Make Da Diff by fulfilling dreams,
elevating lives, and enabling the communities
we serve through Smart Banking (relevant,
expert, challenging conventions) in the
spirit of Ubuntu.
The UnionBank Platinum MasterCard is a cash-back credit card that delivers instant 1.5% cash rebates on purchases.
Justo A. Ortiz
Chairman and CEO
46
Thrift bank CitySavings, UnionBanks wholly

owned subsidiary, continues to expand its reach
beyond Visayas and Mindanao. By year-end
2014, it had 65 branches nationwide.
An n ual Report
Gross revenues slid to P23.1 billion as a result of the 35% drop in

other income, which was not offset by the 12% growth in interest
income. However, income from UnionBanks customer businesses
rose to P15.7 billion, up by 7% from the previous year, driven by
15% and 34% increases in interest income on loans, and fee-based
income to P9.6 billion and P3.3 billion, respectively. These were
underpinned by the healthy expansion in the credit portfolio,
primarily salary loans granted by City Savings Bank. Corresponding
to this improvement, the share of customer businesses in gross
revenues advanced to 68% from 57% a year ago. On the other
hand, income from treasury businesses declined to P7.4 billion,
2014
Aboi ti z Equ it y Vent ures , Inc.
2014 was a very challenging year for UnionBank and the entire
banking industry, characterized by the continued compression of
net interest margins and tighter regulatory oversight. UnionBank
and its subsidiaries recorded a net income of P6.9billion from
the P9.0 billion registered in the previous year. This translated to
lower profitability ratios: return on average equity at 15.3% and
return on average assets at 1.7%, albeit better than the industrys
10.8% and 1.3%, respectively. Revenue-to-expense ratio was
maintained at 2.0x, cementing the Banks position as among the
industrys least-cost producers.
47
Business Review: Banking

equivalent to 32% of gross revenue, as trading gains fell
to P1.9 billion.
Total resources expanded by 12% to P443.1 billion,
funded mainly by the increase in bills payable to P48.4
billion and solid growth in total deposits to P311.1
billion. Average low-cost CASA (current and savings
accounts) deposits increased by 22%, reflecting the
Banks continued execution of its branch sales and
cash management strategies.
Average credit portfolio sustained its double-digit
expansion as it rose by 13% to P125.0 billion fuelled
by the robust growth in salary loans, which surged to
P34.1billion. Consequently, total retail loans rose by
over a quarter to P55.7 billion, improving its share of
average credit portfolio to 45% from 38%. Middlemarket lending similarly posted a modest growth of
3% to P23.9 billion while corporate loans were stable
at P45.4 billion.
(in Php billion)
As UnionBank expands its balance sheet, it will invest

in risk management capabilities at an enterprise level
and sustain deposit build-up initiatives concentrating
on CASA. The Bank shall further strengthen its culture
and promote employee and customer engagement
as a means to enhance its competitive edge in a fast
commoditizing marketplace.
% change
2013*
2014**
3,331.4
519.6
4,115.0
3,244
-21%
7.3
1.4
8.9
10.6
20%
UnionBank
CitySavings
119.7
13.1
142.1
139.4
-2%
UnionBank
CitySavings
189.8
8.8
298.2
311.1
4%
UnionBank
CitySavings
0.3%
1.6%
-0.3%
0.6%
Return on Average Equity

UnionBank
CitySavings
17.5%
26.2%
18.3%
15.3%
Return on Average Assets

UnionBank
CitySavings
3.1%
3.4%
2.6%
1.7%
Net Interest income

UnionBank
CitySavings
Total Loans
Total Deposits
Looking ahead, UnionBank will continue to grow its retail

assets, particularly credit card, mortgage, and salary
loans. The Bank will deepen customer relationships
and broaden its franchise as it pursues high-return retail
businesses and grow fee-based transactions. To support
margins, it will continue focusing on its debit card and
flagship cash management businesses. Given the early
adoption of Philippine Financial Reporting Standard 9
(PFRS 9), UnionBank expects reduced volatility in its
capital line. As such, the Bank can increase risk assets as
planned to improve the accrual business, even as it keeps
a close watch on the market for trading opportunities.
2012
Banking
Net Income Contribution to AEV (In Php millions)

UnionBank
CitySavings
48
2015 Outlook
Net NPL ratios
(2014 vs. 2013)
*On March 21, 2013, the Monetary Board of Bangko Sentral ng Pilipinas (BSP) approved UnionBanks acquisition of CitySavings.
**Measure in terms of Philippine Accounting Standards 39 Financial Institute, consistent with AEVs use of that standard.
Business Review: Food
50
President and CEO
In 2014, Pilmico and the Aboitiz Group officially entered the
ASEAN market with Pilmico International successfully acquiring a
70% equity stake in Vietnamese aqua feeds producer Vinh Hoan
1 Feed JSC (VHF). The remaining 30% stake will be bought in the
next five years at an agreed preset price. Total investment cost in
VHF amounts to US $28 million. The company also established a
representative office in Indonesia.
On the local front, Pilmico made strides in being partners for
growth with a series of projects.
With the farms backyard segment experiencing a drop in its
sow inventory, the company took the opportunity to support
backyard farmers through an advocacy program that aims to
ensure sustainability in their farms.
Mahalin Pagkaing Atin was initially launched in disaster-stricken
areas of Leyte, Cebu, Bohol. Its goal is to go beyond rehabilitation
and start livelihood programs for backyard farmers. For this
campaign, a total of 100 egg machine kits were distributed
in Leyte province to encourage farmers to engage in poultry
An n ual Report
Sabin M. Aboitiz
Pilmico will advance efforts to further gain market share in the flour industry by exporting to the ASEAN region, opening a
Pilmico Research & Training Bakery in Cebu, and building its own commissary.
Following a 64% YOY growth in the farms EBITDA, Pilmico

will increase its sow level to 14,000 heads to strengthen
its feeds business in the competitive Luzon market.
2014
Our quest for growth and expansion has taken us

outside the Philippines, with our first acquisition
of an aqua feed mill in Vietnam in 2014, and we
have many more plans in the pipeline for 2015. The
first few steps have been challenging and quite
a slow process, but we will accelerate our pace in
the next two years. Our expansion, both here and
abroad, will provide our team members with endless
opportunities for professional and personal growth.
At the same time, it will create opportunities for
employment that will help local economies
especially in areas where we operate. The
opportunities are now here and are real,
so we need to continuously gear up
and arm ourselves with more skills,
knowledge, and experience. 2015 will
be the beginning of our move towards
building a more purpose-driven
organization, guided by our core values
of integrity, teamwork, innovation
and responsibility.
51
Business Review: Food

2015 Outlook
production. This provides a quick and sustainable

livelihood for Yolanda victims in Eastern Visayas.
In line with Mahalin Pagkaing Atin, the Pilmico Livelihood
Expo was held in Cagayan de Oro City. Activities included
free seminars and live demos on the latest practices and
technology in hog raising and gamefowl breeding, as well
as in bakery operations.
With its annual revenues at P20 billion in 2014, Pilmico
recorded a 22% year-on-year (YOY) hike largely driven by
strengthened volume growth, with the feeds and farms
businesses as major contributors. The newly acquired
feed mill in Vietnam likewise contributed P1.7 billion in
revenues to the Food Group.
With the ASEAN integration in play, competition is

expected to get tougher both on the domestic and
regional fronts. The company also expects to raise the bar
for innovation and quality as it competes head-on with
regional players.
The Food Groups full-year EBITDA also went up by 12%

YOY, with the farms division contributing the most to the
growth. The improvement in market hog prices, increase
in volume, along with operating efficiencies, translated to
a 64% YOY growth in the farms EBITDA.
Pilmico aims to strengthen its flour business as it battles

for market share against cheaper imported flour. The
company will export its flour products to the ASEAN
region, build a Pilmico Research & Training Bakery in
Cebu, as well as explore the commissary business.
The rise in commodity prices, which accounts for

majority of the costs, affected the flour and feeds
businesses. Flour EBITDA went down by 2%, while the
feeds EBITDA dropped by 6% due to the increase in raw
materials, operating expenses, and the one-time project
costs for the investment in Vietnam as well as other
growth initiatives. Feeds Vietnam pitched in P45 million
to EBITDA growth.
To answer consumer demand, the feeds business will

increase its production capacities in Iligan and Tarlac,
build a new inter-island pier facility for raw materials and
finished goods, and introduce additional feeds products.
The last two years saw the expiration of the income tax
holidays of Iligan Feed Mill 1 & 2 with the bulk of the
impact felt in 2014. This resulted to P108 million in taxes
paid in 2014, effectively dragging net income lower.
52
Pilmico operates primarily in a demand-driven market.

The fast-rising private consumption in the coming years
will bring in greater demand and drive larger volume
production. For these reasons, the company strives to
achieve efficiencies through economies of scale and
integration. It aims to protect margins and grow market
share through strategic expansion and by continuing to
be a low-cost producer.
All of these translated to a 4% increase in Pilmicos

contribution to AEV of P1.3 billion.
The farms business will increase its sow level to 14,000

heads, build additional farm facilities, accelerate
capability for its meats business, and operate its own
layers farms with a monthly output of four million eggs.
Internationally, Pilmico VHF is set to expand its aqua
feed mill in Vietnam. In addition to the existing
representative office in Indonesia, it is also setting up
another one in Vietnam. Pilmico will also actively pursue
other opportunities in the region through mergers and
acquisitions.
(in Php millions)
% change
Food
2012
2013
2014
Revenues
15,700
16,426
20,020
22%
EBITDA
2,054
2,059
2,311
12%
Income Contribution
1,299
1,256
1,307
4%
(2014 vs. 2013)
Business Review: Land
We are at a very exhilarating phase in our

journey as an organization. We have accepted
the challenge to go national. We are keenly
focused on achieving the bolder goals we
have set for ourselves. We know that growth
is never by chance but is the result of a
dedicated team working closely together to
achieve a singular vision.
Andoni F. Aboitiz
President and CEO
In 2014, AboitizLand residential sales grew by 15% driven by its high-end projects such as Pristina North Residences 2 and
Priveya Hills Phase 3, as well as a strong interest in The Persimmon Studios.
Over the past two decades, AboitizLand has gone through a
fulfilling journey, delivering dream homes and business offices
to more than 3,000 vecinos, merchants, and locators.
54
AboitizLands record-breaking growth in 2014 surpassed

P3 billion, attributed to the acquisition of LiMA Land and
proceeds from the sale of LiMA Utilities to AboitizPower.
An n ual Report
Parallel to the countrys strengthening economy, AboitizLand

likewise posted another record-breaking year. There was
growth across all its business units as revenues went up by
86%, breaching the P3-billion mark and net income increased
by 242%. The surge is attributed to the acquisition of LiMA
Land, Inc. (LLI), which brought in significant incremental
industrial income, and the gains realized from the sale of LiMA
Utilities Corp. to AboitizPower. The residential construction
accomplishment and the new revenue stream of the commercial
business unit also contributed to the growth.
2014
In 2014, on its 20th year, the company took on the challenge to

support and participate in the Philippines economic resurgence.
The economy has remained robust, as reflected in reassuring
indicators including positive GDP growth, low interest rates, and
strong consumer spending.
55
Feature
2013
2014
Revenues
1,760
3,270
86%
EBITDA
389
698
79%
Income Contribution
273
633
132%
The companys commercial unit benefitted from the

strong retail business environment, posting a 123%
revenue growth. This is attributable to the performance
of The Outlets at Pueblo Verde, which achieved 100%
occupancy within its first six months of operations.
The industrial business unit spearheaded the

companys national expansion when it acquired LLI. It is
the developer of LiMA Technology Center in Batangas
which currently comprises 77% of total industrial
revenue. With this new acquisition, AboitizLand now
owns and operates three major industrial zones
including Mactan Economic Zone II and West Cebu
Industrial Park.
2015 Outlook
15% vs 2013
Residential
Revenue
5-yr CAGR at
(2014 vs. 2013)
AboitizLands residential sales grew by 15%, a

welcome development driven by sales of its high-end
projects, including Pristina North Residences 2 and
Priveya Hills Phase 3. There was also a strong interest
in The Persimmon Studios.
Residential Sales up by
56
% change
Land
16%
As the real estate sector experiences sustained

demand across residential, commercial, and industrial
segments, AboitizLand will pursue its aggressive
investment plan. The company will strengthen its
organizational capabilities to respond to the growing
demands of both its Cebu and national markets.
AboitizLand will remain true to its promise of nurturing
communities.
Job Opportunities
provided to over
60,000 people
Infrastructure: APO Agua

AEV has formed a new joint venture with J.V. Angeles
Construction Corporation (JVACC). The joint venture,
named Apo Agua Infrastructura, Inc. (APO Agua), is an
agreement with the Davao City Water District (DCWD)
to design, build, and operate the countrys largest
private bulk water supply project at an estimated cost
of P10 billion.
This project is AEVs first non-power venture in
infrastructure. Under the agreement, APO Agua will
supply the DCWD with up to 300 million liters per day
(MLD) of potable bulk water from the Tamugan River.
The project will directly benefit Davao Citys one million
residents, and its many commercial and industrial
establishments.
JVACC, which has over 48 years of experience
in the construction and development of waterrelated infrastructure in the Philippines, will be the
engineering, procurement, and construction (EPC)
contractor for the entire project.
The project includes the countrys first 100% renewable
energy-powered water treatment facility, giving
Davao City the distinction of having an innovative and
sustainable bulk water supply system.
For the Aboitiz Group, this venture is another
testament of its commitment to Davao City and its
people. For more than 80 years now, Aboitiz has
been supporting the citys growth and advancement,
providing quality and reliable electric service through
Davao Light.
Apart from the bulk water supply project, AEV
is actively participating in various Public-Private
Partnership (PPP) bids including the Laguna Lakeshore
Project (the largest PPP project to date), and the LRT-2
operations and maintenance contract.
In its continuing journey of supporting the nations
long-term needs, the Aboitiz Group will constantly
be on the lookout for infrastructure investment
opportunities.
A strong performance by the companys commercial unit is credited in part to The Outlets at Pueblo Verde, which
achieved 100% occupancy within the first six months of operations.
Representatives from Aboitiz Equity Ventures and JV Angeles Construction

Corporation sign the countrys largest bulk water supply deal with the
Davao City Water District and the Davao City government, represented by
Mayor Rodrigo Duterte.
Biofuel: Aseagas
Aseagas Corporation was established to build
plants that would produce renewable energy
from societys organic waste.This energy yields
fuel for motor vehicles and generates power
from renewable biogas.By-products from biogas
production include carbon dioxide (CO2) and
fertilizer.The company receives CDM (Clean
Development Mechanism) credits from the
reduced carbon emission resulting from the
process.
Its first production plant is located in Lian,
Batangas and the original goal was to produce
fuel in the form of liquefied bio-methane or
bio-liquefied natural gas. However, the current
global environment of lower fuel prices has made
the fuel environment very challenging, thus the
company is exploring the best use for biogas. At
this time, alternatives include pursuing power
generation and registering operations under the
feed-in-tariff of the Department of Energy.Plant
construction has begun and completion is
expected by year-end 2015.
An n ual Report
(in Php millions)
2014
Business Review: Land
57
Aboitiz Foundation
2014 Financial Highlights
The Aboitiz Group allocated a total of P610 million for CSR Projects.
Education received the biggest allocation of P437 million, with the Foundation spending P200 million for
the rehabilitation of schools in the Visayas.
Education
404,154
Aboitiz Group Initiatives*
Enterprise
Development
29,511
Enterprise
Development
24,552
Health & Well-being

and Other Donations
45,825
2%
5%
Health & Well-being

and Other Donations
128,825
84%
67%
total Php483M
72%
16%
16%
Luzon
154,792
58
Visayas
356,675
Business Units (BU) Direct CSR Initiatives
*Aboitiz Group Initiatives (Aboitiz Foundation + BUs Direct CSR)
25%
Education
32,811
58%
Health & Well-being

and Other Donations
83,000
Area
26%
Enterprise
Development
4,959
Environment
5,965
Mindanao
98,638
total Php610M
17%
Visayas
322,944
Program Component (in Php thousands)

Area
16%
Mindanao
78,353
Environment
8,839
21%
Environment
14,804
5%
Luzon
82,073
9%
4%
5%
Luzon
72,719
16%
Visayas
33,731
Mindanao
20,285
65%
total Php127M
27%
57%
An n ual Report
Education
436,965
2%
Area
2014
59
Aboitiz Foundation
Over half of the Foundations beneficiaries in 2014 were recipients of education-related projects such as school
buildings, classrooms, and facilities that provide a better learning environment.
In 2014, the Foundations annual budget increased to

P483 million, with education-related initiatives getting
the biggest allocation. A total of P200 million was spent
on the rehabilitation of schools in the Visayas in the
aftermath of Bohol earthquake and typhoon Yolanda.
Over the past 26 years since it was established, the Aboitiz

Foundation has been committed to its mission of helping people
help themselves. The Foundation has shifted the nature of its CSR
interventions from one-time donations at the onset to carefullydesigned programs that empower beneficiaries to pursue their
aspirations. It also partners with communities to promote inclusive
growth through education and capability building programs.
60
In doing so, the Foundation aims to realize its vision to be

the neighbor of choice among its stakeholders, including
communities where Aboitiz business operations are located.
In a 2014 reputation survey, Aboitiz team members, customers,
suppliers, investors, media and host communities rated CSR as the
most excellent among seven reputation dimensions. This indicates
a high appreciation for the Foundations efforts, and a high level of
trust that it delivers on its stakeholders expectations.
In the past year, over 100,000 people benefitted from the
Foundations programs. More than 50% were beneficiaries of
Starting 2015, the Foundation has carefully been

selecting projects that would help reach its goal of
achieving CSR 2.0. It is mapping out projects based on
selected parameters, and establishing baseline and
targets per business unit to determine the percentage
of projects that are not yet under 2.0.
The total Aboitiz Group CSR budget for 2014 reached

P610 million the biggest funds it has had so farup
by 26% from the previous year. The Groups business
units continued implementing their own CSR projects,
appropriating a total of P127 million.
Special science elementary schools and
technical-vocational high schools are CSR 2.0 projects for
nationwide implementation.
The year 2014 tells a story of resilience among Filipinos

as the nation united to help the Visayas get back
on its feet after typhoon Yolanda. This bayanihan
spirit moved the Foundation to fulfill its promise to
rehabilitate more than 200 northern Cebu classrooms
damaged by the typhoon, as part of the Aboitiz
#BangonVisayas relief and rehabilitation program.
With the overwhelming support of kind and generous
donors, the program exceeded its target. In November
This fulfilled promise was the culmination of the

Groups #BangonVisayas efforts, which gave birth to
Aboitiz BetterWorld schools.
Education
Aboitiz BetterWorld aims to provide a better learning
environment for communities with the establishment of
special science elementary school (SSES) and technicalvocational (tech-voc) high schools. It also involves the
construction and repair of regular classrooms, donation
of AGAPP Silid Pangarap classrooms, teacher skills
training, integrated computerization, and scholarships
for deserving students.
1,670 computers
833 classrooms
client
979 thin
systems
26,540 scholars
In 2014, the Foundation turned over 42 Silid
Pangarap classrooms built in partnership with the
Aklat, Gabay, Aruga Tungo sa Pag-angat at Pag-asa
(AGAPP) Foundation. It also approved the construction
of 27 SSES and tech-voc classrooms, and supported
3,297 scholars across the country.
An n ual Report
Achieving CSR 2.0

Since the late 1980s, the Aboitiz Foundations initiatives
have evolved from a CSR 1.0, which involves simple
philanthropic activities, to more sustainable programs
leading towards a CSR 2.0. The Foundation is now
undertaking bigger programs with longer-term benefits,
are of national scale with greater positive sustainable
impact on beneficiaries, those that are aligned to Aboitiz
businesses and encourage more participation from team
members.
2014, the Foundation formally turned over 272

classrooms192 repaired and 80 newly constructed
to 34 schools in the towns of Bogo, Borbon, San
Remigio, Daanbantayan, and Medellin benefitting more
than 18,000 students.
2014
education-related projects while a significant number

benefitted from the health and well-being program.
These included medical missions, installation of water
systems, and disaster relief operations. The number
of beneficiaries was almost evenly spread across the
country, with approximately one-third each coming
from Luzon, Visayas, and Mindanao.
61
Aboitiz Foundation
Environment
For the environment, the Group achieved its 2015 target

of planting 3 million trees one year ahead of schedule;
by mid-2014, the entire Group had already planted 3.4
million trees. As a new challenge, it is pushing for a new
target: 6 million more trees by 2020.
In June 2014, 10 turtle nests which yielded 1,803 pawikan
eggs were discovered on the beach at the Aboitiz
Cleanergy Park in Davao City. The park is truly becoming a
nature and biodiversity haven as it was envisioned to be.
Health and Well-being
Aboitiz business units continue to extend community

assistance, whenever needed. Medical, dental, and
optical missions conducted last year benefitted more than
11,000 individuals throughout the country. They have also
approved P5 million-worth of water system projects in
2014.
More than 18,000 students were brought back to the comfort and safety of their classrooms as the foundation
fulfilled its promise of rehabilitating 272 classrooms in North Cebu after Yolanda.
62
Enterprise Development
Community engagement is an essential part of CSR
that is why the Foundation constantly empowers
beneficiaries in creating a better future for themselves.
Through the Aboitiz Business Assistance and
Guidance (ABAG) program, it assists small enterprising
organizations nationwide earn additional income by
providing them access to livelihood opportunities, and
capability building training.
In 2014, over P14-million worth of loan packages
were granted to cooperatives. About P2.8 million
was allocated for capability-building activities and
The Foundation also gained re-accreditation from the

Cooperative Development Authority as a certified
technical training provider, allowing it to offer free
technical trainings to more cooperatives across the
country.
450
microfinance loan packages
An n ual Report
These education-related initiatives amounted to P437

million or 72% of the Groups total approved budget.
livelihood skills training, which benefitted over 1,000

would-be entrepreneurs.
As the Aboitiz Foundation moves towards the

implementation of CSR 2.0 initiatives, it will continue to
create greater long-term value for its stakeholders. It
will identify what are important to stakeholders, deliver
on their high expectations, collaborate with the public
sector, build better organization capability, and accurately
measure CSR effectiveness to address the gaps.
worth P135 million
15
cooperative training
centers
Hawksbill turtle hatchlings swim for the first time after emerging from the marine turtle
sanctuary at the Aboitiz Cleanergy Park in Davao City.
2014
To keep students abreast with technology, the

Foundation donated 36 stand-alone and 454
computer units under its thin client system to various
schools nationwide.
Aboitiz Foundation promotes inclusive growth, which involves capability

building programs and livelihood skills training that empower beneficiaries
to create a better future for themselves.
63
Location of AWS deployed
in the Philippines
Building a
#WeatherWiser Nation
The Foundation aims to install 1,000 Automated

Weather Stations (AWS) nationwide to complement
governments efforts in disaster risk reduction, and to
prevent loss of lives and damage to property caused
by adverse weather conditions. Its website, weather.
com.ph, provides accurate and localized weather
information to the public.
As of year-end 2014, 568 public and private partner
organizations enabled WeatherPhilippines to deploy
a total of 750 AWS across the country. More than 860
disaster officers were trained on how to install the
AWS and how to access the website.
Strategic Pillars
64
Technology, partnerships and communications

are three key strategic pillars that keep
WeatherPhilippines on track with achieving its vision
to be the trusted and most reliable private weather
organization in the country.
Technology
WeatherPhilippines technology partner MeteoGroup,
provides the software which processes data collected
from the AWS, and posts localized forecasts at
weather.com.ph.
Power source configurations and data transmission
capabilities have been improved by developing solar-
Lightning detectors have been installed in the

facilities of WeatherPhilippines partners like Cebu
Pacific to ensure safer operations. These detectors
enhance weather forecasting capabilities in
localized thunderstorm scenarios.
Out of the total 750 AWS already deployed
nationwide, 47 units were installed in the Visayas to
support governments post-Yolanda initiatives. It was
done in partnership with the Office of the Presidential
Assistant for Rehabilitation and Recovery (OPARR).
In priority meteorological sites frequently visited by
typhoons all across the country, 227 AWS have been
deployed.
750 AWS
deployed nationwide
441 Luzon
186 Visayas
123 Mindanao
Partnerships
WeatherPhilippines continuously strengthens and
expands its partnerships with various organizations
to sustain its operations and to implement
initiatives in weather education and proactive
disaster preparedness.
total
568 partners
5 Platinum Donors
18 Gold Donors
11 Service Partners
534 Site Partners
An n ual Report
In November 2013, typhoon Yolandas devastation

moved WeatherPhilippines to answer governments
call to help strengthen the countrys disaster risk
reduction capability. It launched a campaign to build a
#WeatherWiser Nation.
powered AWS for communities with minimal access to

electricity. SMS-enabled data loggers that can transmit
weather data to MeteoGroups systems despite
Internet connectivity issues have also been added.
WeatherPhilippines commits to partner with the Philippine Disaster Recovery Foundation (PDRF) to strengthen the role of business in
building the nations disaster preparedness, response and resiliency.
2014
In 2012, the Aboitiz Group, in partnership with

leading international weather specialist, MeteoGroup,
established WeatherPhilippines Foundation to
proactively address the issue of disaster preparedness
in a more sustainable way. The Aboitiz Foundation
and UnionBank set up an initial fund of P125 million
to start the foundation, while MeteoGroup provided
the technology for weather forecasting.
65
Sustainability
860
total number
WeatherPhilippines looks forward to launching its new

website and mobile application in 2015.
Embedding Sustainability
#WeatherWiser Nation
As one of the best-managed companies in the

Philippines and in the region, Aboitiz Equity Ventures
touches the lives of millions through its major
investments in power, banking, food, and land.
435
total number of
of Disaster Risk
LGUs trained
Reduction Officers
80 provinces
trained
170
240 cities
450 municipalities
provinces
128 cities
227 municipalities
Communications
Aside from localized weather information, weather.
com.ph provides a 5-day forecast, as well as national
weather news and updates. It also has Weather TV,
and a Weather Dictionary. Updates are also available in
its Facebook and Twitter accounts.
Severity Matrix
As the campaign to build a #WeatherWiser Nation

deepens and widens in scope, WeatherPhilippines
is developing a program that will have specific,
measurable, and long-term engagement strategies
with various stakeholders in the public and private
sector. This program will highlight customized
Weather 101 modules that will include storm
tracking and simulation exercises.
WeatherPhilippines will also encourage current
and future partners to use weather technology and
Weather 101 trainings for strategic business planning,
especially in the fields of agriculture, fishing, tourism,
and logistics.
WeatherPhilippines uses the severity matrix to simplify weather alerts and warnings issued during severe
weather conditions. This color-coded system is based on World Meteorological Organization (WMO) standards.
Sustainability is nothing new in the Aboitiz Group. Even

before this global advocacy was coined, sustainability
practices were already implemented in many of its
business units.
To enable the Group to create positive and lasting
contributions, it has forged a commitment to long-term
sustainabilityone that is anchored on the belief that
it can do well by doing good. This means making the
right long-term decisions that balance the interests of
people, planet, and profit.
Since embarking on its sustainability journey in 2009,
Aboitiz has been moving towards embedding its
sustainability agenda throughout the organization.
In 2013, the Group crafted a sustainability policy
and identified focus areas with the ultimate goal of
looking beyond profitability, and exploring better ways
to integrate social development and environmental
stewardship into its business operations.
its 2014 Sustainability Report to demonstrate its

strong adherence to corporate governance principles
and transparency. This also allows the Group to focus
on performance indicators that it deems critical
and important to its business and key stakeholders.
GRI is the globally accepted standard for corporate
sustainability reporting used by more than 3,000
companies worldwide.
In pursuing its vision to be a truly sustainable enterprise
that can be entrusted to future generations, Aboitiz will
continue to instill a mindset that it can do well by doing
good, and always making the right long-term decisions
that balance the interests of people, planet, and profit.
This mindset is founded on the companys core values
of integrity, teamwork, innovation, and responsibility,
which drive its corporate culture.
The path became clearer and more concrete in 2014

with the unveiling of the Aboitiz BetterWorld campaign.
66
The Group adopted the latest Global Reporting

Initiative (GRI) G4 Reporting Framework in preparing
In 2014, a team from Davao Light released a total of 1,301 hatchlings

of the critically endagered Hawksbill species on the beaches of the
Cleanergy Park in Punta Dumalag.
An n ual Report
The Groups commitment was further strengthened

in 2014, as metrics were developed to better track
the yearly sustainability performance of each and
every business unit. This transition makes the Aboitiz
sustainability journey more concrete and aligns the
implementation of the Groups sustainability initiatives
to global best practices.
2014
Aboitiz BetterWorld is a key step towards forging a

deeper understanding of the Groups sustainability
agenda, gaining the commitment of all stakeholders,
and rallying everyone behind making Aboitiz a
sustainable enterprise.
67
Sustainability
Focus Areas and Metrics
To drive sustainability throughout its business, Aboitiz focuses on three key areas based on the triple bottom line
approachpeople, planet, and profitwhere it believes it can make the greatest difference to the Group and its
stakeholders. This framework is used to set targets, improve performance, and extend the scope of the value it creates.
Objectives
As a socially responsible organization, Aboitiz

focuses on delivering value to its stakeholders by
being more responsive to their evolving needs:
FOR TEAM MEMBERS: giving employment and
ensuring their career growth within and
outside the organization.
FOR COMMUNITIES: entering into partnerships to
make them sustainable and disaster-resilient.
FOR CUSTOMERS: providing a commercially
sustainable customer experience and ensuring
that the company delivers on its promise.
PLANET
Goal: Minimize the environmental impact
of the business
Being an industry leader comes with great

responsibility. This is why Aboitiz is committed
to growing its business in a manner that takes
into account the environmental impact of its
commercial operations. It aims to improve its
energy efficiency and emissions performance, and
manage its impact on water and biodiversity. It also
strives to provide reliable and reasonably-priced
power while at the same time pursuing other
renewable energy sources.
68
PROFIT
Corporate Social
Responsibility
Partner with communities

to promote
inclusive growth
Disaster
Resilience
and
Preparedness
Increase the capacity of local

government and the public in
disaster preparedness
Customer Focus
Provide a commercially
sustainable customer
experience
Carbon Emissions
Reduction
Reduce Greenhouse Gas

(GHG) emissions across
facilities under its control
Resource
Efficiency
Manage resources
efficiently
Waste
Management
Renewable
Energy (RE)
Reuse and
recycle
1,301
Total number
of hatchlings
released
In 2014, professors from the University of the

Philippines in Mindanao and the University of
Southeastern Philippines conducted a scientific
baseline research and biodiversity assessment to aid in
the development of the Cleanergy Park.
During the year, Cleanergy Park also served as home
to 10 turtle nests, which yielded 1,803 eggs of the
critically endangered hawksbill turtle species. This was
a significant development as only one turtle nest has
been discovered annually over the past years.
77%
Average
Applying their newfound skills in turtle hatchery, a

team from Davao Light was able to release 1,301
hatchlings (baby turtles).
hatching rate
(Total number of eggs hatched

divided by total number of eggs)
Funded by the Aboitiz Foundation, in partnership

with Davao Light, the Aboitiz Cleanergy Park is an
eight-hectare private property developed as an
outdoor biodiversity classroom to give the public the
opportunity to explore and learn about nature.
Located in Sitio Punta Dumalag, Matina Aplaya
in Davao City, the park hosts a rare and diverse
ecosystem all in one place: a mangrove forest, coastal
A-Park Program: 9 million trees by 2020

Since forging a commitment in 2010 to plant 3
million trees by 2015, in line with the United Nations
Environment Programs Billion Tree Campaign, AEV
business units across the country have been planting
trees in their respective areas of operations.
By 2014, the Group had already planted 3.4 million
treesalmost one year ahead of schedule. This
success emboldened the Group to plant 6 million more
trees by 2020, or a total of 9 million trees by 2020.
Accumulated no. of trees planted (groupwide)
Tap other RE sources and

strengthen its renewable
energy portfolio with the
development of more
hydropower and geothermal
capacity
9.0 million
3.4 million
2.9 million
2.7 million
An n ual Report
Goal: Partner with stakeholders to create

shared value
Attract, retain, and optimize

A-people
Aboitiz Cleanergy Park
forest, marine turtle habitat and nesting area, shoal,

coral reefs, sea grasses, and a fish sanctuary declared
as a marine protected area (MPA).
Financial Return
Goal: Grow profitably

Looking after the interest of shareholders, Aboitiz
aims to continually enhance its value by remaining
ethical in its business practices, sticking to its core
competencies, and executing defined strategies. It
will explore expansion opportunities while managing
its operations well and prudently utilizing resources
to achieve financial growth and profitability.
Grow profitably
Financial Growth
2003-2012
2013
2014
2020 Target
2014
PEOPLE
Team Member
Engagement
& Development
Groupwide Sustainability Programs and Initiatives

To firmly embed Aboitiz BetterWorld into the
organization, the Group embarked on the following
initiatives in 2014:
69
Sustainability
To make a collective impact, the program aims to

enroll all facilities across the Group.
Phase 2 involved the celebration of the support

generated from these stakeholders. An evening
of recognition was held for the ILP partners and a
morning caravan of activities with the Boy Scouts.
In 2014, there were 268 enrolled facilities compared

to 2013.
No. of Enrolled Facilities
268
total of enrolled
facilities
Energy Consumption in mWh
271,746 mWh
332,892 mWh
2013
2014
Water Consumption in cu.m.
832,945 cu.m.
687,135 cu.m.
2013
Phase 3 was a door-to-door campaign where flyers, solar

alarm, and refrigerator magnets were distributed to
remind citizens of the 8 simple ways to conserve energy.
Wealth on Waste Program
This program aims to creatively recycle waste materials
after its useful life. It has been able to turn individual
refuse into everyday items that help the communities
and the environment.
3rd Green Fashion Revolution
This annual fashion design competition organized by
the Group challenges students of Metro Cebu colleges
and universities to create clothing, footwear, and
accessories made from recyclable materials.
Aside from showcasing talent and creativity in fashion
design, the competition also aims to raise public
awareness on the importance of the 3Rs (reduce,
reuse, and recycle), as the young participants are made
to propose environmental intervention programs for
their respective barangays.
2014
70
Pilmico Biogas Project

Pilmico Feeds in Tarlac has converted waste materials
from its swine operations into energy for its farm
facilities. It started to incur a 37% savings in 2011 to
44% savings in 2014.
Biogas Plant Generation, Purchased Electricity
40%
Savings
2.4
44%
Savings
2.3
1.5
2013
Biogas
Production, kWh
1.8
2014
Purchased Electricity,
kWh
Enterprise Development
Pilmicos Mahalin Pagkaing Atin Program
Mahalin Pagkaing Atin is a campaign launched by
Pilmico in partnership with Terra Firma and the local
government of Leyte. It aims to promote sustainable
entrepreneurship through the promotion of locally
grown produce and instill a pride of product, pride
of place mindset for both the farmers and local
consumers.
VECOs Cebu Unplugged

Cebu Unplugged is an energy conservation campaign
spearheaded by Visayan Electric Company, Inc.
(VECO) to pave the way for a greener and sustainable
environment for future generations. It aims to
spread awareness, create advocacies, and become an
influence to other provinces.
Cebu Unplugged promotes 8 simple ways one can
conserve energy and reduce Cebus carbon footprint
through the promotion of responsible energy use.
Phase 1 of the campaign involved discussions with
stakeholders: local government units, high school
On the third year of the competition held on October

18, 2014 at the SM City Cebu Trade Hall, a team from
the University of the Philippines Cebu emerged as
the overall winner. The team proposed a livelihood
program for Barangay Camputhaw, which involved
making woven products out of used tarpaulins and
other recyclable materials.
Under the Aboitiz Groups Wealth on Waste Program, projects like the
Green Fashion Revolution help to raise awareness on the 3Rsreduce,
reuse, recycleamong the youth.
The campaign kicked off with the distribution of 100

egg machines in Leyte. This promotes the efficient
production of table eggs and provides their immediate
consumers (neighbors) with fresh and clean produce.
It will serve as backyard integration for those

who already have existing businesses. It will also
provide livelihood to out-of-town entrepreneurs as
the production units are best in areas where prices
of eggs are high.
Aside from egg machines, the new entrepreneurs
will be provided with both technical and social
trainings so they can sustain their business longer
and thus, continuously grow their profits.
Capability Building Program
Project TeACH
CitySavings, together with the Coalition for
Better Education (CBE) and the Department of
Education (DepEd), launched Project Teach,
Aspire, Challenge, Help (TeACH) in October
2013. The project aims to enhance the skills of
public teachers with the introduction of new
methodologies and approaches in classroom
teaching.
In 2014, the first batch of 25 teachers from 25
public schools in the National Capital Region (NCR)
graduated and completed the course. They may
have their trainings used as basis for potential
promotion under DepEd.
Weather 101 and Tropical Cyclone 101 Training
WeatherPhilippines conducted Weather 101
and Tropical Cyclone 101 trainings for private
organizations to increase peoples knowledge on
timely response to adverse climate changes. A
number of trainings were also held for partners
including VECO, Davao Light, SNAP Group,
AboitizPower, the Rotary Club of Cebu, and
Center for Disaster Emergency Response.
These initiatives strengthened two significant
areas for WeatherPhilippines: stronger
communication of its message on proactive
disaster preparedness, and better community
engagement among its partners in the public
and private sectors.
GHG Inventory and Resource Efficiency Training
To heighten awareness on the efficient
management of critical resources such as water
An n ual Report
and college students, partner organizations, and

Interruptible Load Program (ILP) partners. The aim
was to encourage the stakeholders to get involved in
the advocacy.
2014
Race to Reduce Program

The Race to Reduce (R2R) Program underpins the
Groups commitment to the efficient use of enterprise
resources.
71
Sustainability
2015 Plans
Aboitiz Foundation and Davao Light developed the Cleanergy Park as

an outdoor biodiversity classroom to give the public the opportunity to
explore and learn about nature.
72
Moving forward, Aboitiz will continue to execute its

sustainability initiatives while remaining focused on its
four strategic pillars: to grow and expand its business,
increase stakeholder engagement, build human capital,
and carry on execution excellence in everything it does.
Emboldened by the outstanding ratings Aboitiz earned
in a 2014 reputation survey among key stakeholders,
notably in the area of corporate social responsibility
(CSR) where it was rated most excellent, the
Group will now work towards achieving CSR 2.0 in
its programs. This entails moving away from CSR 1.0,
which involves simple philanthropic activities, and
shifting to engaging projects that are more sustainable
More than just being a successful enterprise, Aboitiz Equity Ventures (AEV) and its business units are committed
towards constantly striking a triple balance of people, planet, and profit.
To amplify the impact of its sustainability initiatives,

Aboitiz will also embark on more partnerships,
stakeholder engagement initiatives, and capacity
building. These involve:
In its core businesses of power, banking, food, and land, the organization and its team members serve countless
people during the daily course of operations across the country. They all share a goal to touch and enrich lives,
help stakeholders attain a better future, and collectively care for the one planet that sustains us all.
Continuing to conceptualize and identify viable

programs to minimize its environmental impact.
The Group will pursue its long-term commitment
to plant another 6 million trees nationwide,
develop the 8-hectare outdoor biodiversity
Cleanergy Park in Davao City, and expand to
other areas of operation. Projects that address
the health and well-being of local communities,
including fund drives for disaster relief and
rehabilitation efforts, will also be continued;
Continuing to establish and develop Aboitiz
BetterWorld schools to achieve the goal of
providing universal public education. This means
more special science elementary schools,
technical-vocational high schools, AGAPP Silid
Pangarap donations, and regular Foundation
classrooms, scholarships, and teacher skills
trainings for the public school system;
Expanding the microfinance base and training
organized groups outside Cebu to improve
community livelihood and employment
opportunities;
Conducting the annual Aboitiz Future Leaders
Business Summit (AFLBS), participated by the
brightest college student leaders all over the
country, to further develop their leadership
skills and learn how to concretize management
concepts in a corporate environment;
Training local governments on the basics of
weather and tropical cyclones so they can apply
their knowledge to improve their communities
tourism, agriculture and fisheries, and local
economy; and
Identifying viable projects that will involve
more team member participation and engaging
stakeholders more closely through the use of
social media and other possible channels of
communication.
The Group is committed to making Aboitiz a truly sustainable enterprise that can be entrusted to future
generations.
Stakeholder
Power
Food
Provide employment
Team Members
Help people help themselves

through Corporate Social
Responsibility (CSR)
Community
Deliver beer goods and

services
Customers
Pay for goods and services
Suppliers
Pay taxes
Government
Compliance to environment
and regulatory requirements
Regulators
Invest for expansion & growth
General Public
Pay dividends
Shareholders
Banking
Land
2015 Capital
Expenditures
An n ual Report
Thirty-five sustainability stewards, pollution control

officers, and facility officers from various Aboitiz
business units learned the necessary tools to
compute and manage greenhouse emissions and
formulate management plans for water, energy, and
waste.
for beneficiaries and also more aligned to its

businesses.
2014
and energy, which have a significant impact on

businesses in the coming years, the Group conducted
a technical training on greenhouse gases (GHG)
inventory and management, and resource efficiency at
the Bonifacio Global City in Taguig City.
Providing Stakeholder Value
73
The distinctly unique Aboitiz way of doing things;

Constantly nurturing the Aboitiz passion for better ways;
Being driven: driven to lead, driven to excel, and driven to serve;
Being guided by core values of integrity, teamwork, innovation, responsibility;
Creating long-term value for all stakeholders;
Giving value to fellow team members and celebrating everyones successes;
Leading by example, mentoring and fostering teamwork, creating a work environment that fosters
speaking out, and delivering results for sustainable growth; and
Sustainability as being the core of the Companys vision for the future.
The Aboitiz Group and its management team believe
that there is only one way to realize this vision: through
the continuous adoption of corporate governance best
practices encapsulated in the Aboitiz Way. It is believing
that the Company can do well by doing good. The Aboitiz
Way is the Groups corporate compass.
The mission of Aboitiz Equity Ventures, Inc. (AEV) is
to create long-term value for all its stakeholders. To
pursue this mission, the company is guided by four
strategic pillars: (1) grow the business; (2) stakeholder
engagement, (3) execution excellence; and (4) build
human capital.
AEVs strategic focus areas revolve around growing the

business, engaging stakeholders more closely, creating
a deep pool of best-in-class team members to plug
succession and competency gaps, and executing bestin-class processes to achieve competitive edge while
adhering to sustainability principles and practices that
make sense to all stakeholders.
74
In 2014, AEVs Board and its management team reviewed

these four strategic pillars and reiterated their relevance
to the companys business roadmap for the future. As a
result of the major strategic planning and refresh in 2014,
AEV has now added a fifth leg infrastructure to its core
businesses alongside power, banking, land, and food.
Aboitiz Power Corporation (AboitizPower) and its
business units are also aligned to AEV Corporate
Centers strategic pillars. AboitizPowers vision is A Better
Future and its mission is To find Better Solutions. The

companys corporate brand attributes are pro-active,
expert, and responsible. AboitizPower considers the
following as its responsibilities: to provide reliable and
ample power supply needed by the country; to ensure
that supply of electricity is provided at a reasonable and
competitive price, and with the least adverse effect on
the environment and communities.
AboitizPower is passionate about achieving its vision and
goals. The company has been constantly striving to be
the best at operations, maintenance, capacity and supply
optimization, as well as project execution. With the goal
of becoming a world-class organization, AboitizPower
has set its goals to creating a good-to-great organization
with policies and standards that promote cost efficiency
and steady growth, with service levels that improve
stakeholder engagement.
AEV and AboitizPower are proud of the health, safety,
and environmental track record of their businesses. This
is clear and measurable proof that businesses can be
aligned both to the principles of sustainability and good
economic sense. 2014 posed many challenges to the
Aboitiz Group, but it has shown resilience to dynamic
business conditions as well as to the changing or shifting
regulatory environment.
The Boards of AEV and AboitizPower ensured that they
were kept abreast of developments and challenges in
the businesses and guided Management accordingly.
With the full support of the management teams, AEV
Aboitiz Corporate Governance Guiding Principles
The Aboitiz governance structure is grounded on its

core values of integrity, teamwork, innovation, and
responsibilty. These values, together with the Groups
brand attributes of being driven, driven to lead, driven
to excel, and driven to serve, provide a compass for
meeting challenges in the business landscape and in
satisfying various stakeholder interests and claims. These
core values, attributes, vision, and mission constitute the
Aboitiz DNA. More importantly, these values provide the
glue that gives integrity to the organizations corporate
governance structure.
The Aboitiz Group continues to believe in and adopt the
following core principles and practices: (i) the Companys
personality is independent from that of its Board, officers
and employees; (ii) the Company has its own distinct
rights and duties; (iii) the Board has the original power to
decide on the Companys policies; (iv) the Company can
demand loyalty from its Board, officers and employees;
(v) the Companys business must be pursued through a
long-term sustainability strategy; (vi) shareholders and
stakeholders must be treated equitably and with fairness;
(vii) a system of accountability; (viii) transparency in
corporate operations and company reports; (ix) an ethical
business; (x) corporate social responsibility (CSR); and
most importantly, (xi) sustainability and environmental
compliance.
In 2014, AEV and AboitizPower Boards also worked
on refreshing and strengthening the roles and
responsibilities of the Boards of Directors. Together with
the Management team, they worked to preserve and
modify (or adopt where needed) protocols, systems,
and policies. These are intended to preserve and protect
the rights of shareholders, to ensure shareholders
equitable treatment by the companies, to enhance the
stakeholder value, to promote continuous improvement
of stakeholders engagement, and to make timely

and responsive corporate disclosures balanced with
the requirements for confidentiality in a competitive
business environment.
Responsibilities of the Board
The Boards of Directors under the Aboitiz Group are

fully engaged Boards, composed of highly professional
members and working under environments of respect
and collegiality, where candidness and robust discussions
are not only encouraged, but are the norm.
The AEV and AboitizPower Boards are each composed
of three independent directors, and independentminded executive and non-executive members who
have diverse professional backgrounds, such as
economics, corporate finance, engineering, accounting,
audit, chief executive and chief operations experience,
investment banking, private, government sector and
multilateral agencies sector, as well as experience in
policy-making bodies.
These directors lend their in-depth experience and
expertise to the Board and the Management team
in all relevant matters affecting the Aboitiz Group.
AEV and AboitizPower are continually reviewing the
roles and responsibilities of their Boards to assess the
propriety and value of existing and proposed Board
and Board Committee protocols, systems and policies.
All directors have been carefully selected, nominated,
and elected based on their credentials as well as their
ability to contribute and share their expertise in all
relevant matters affecting the business units of AEV and
AboitizPower.
The existing company policies of AEV and AboitizPower
such as those found in the By-Laws, the Amended
Manual of Corporate Governance, the Code of Ethics
and Business Conduct, Board protocols, other Board
secretariat guidelines, and the Aboitiz Information
Management System protocols, ensure excellence in the
performance of the directors roles and responsibilities.
The Independent Directors of both AEV and AboitizPower
worked closely with the internal audit team in the
performance of their functions as members of the Board
Audit Committee.
An n ual Report
The Aboitiz Way is an all-encompassing corporate governance mindset that recognizes and believes in:
and AboitizPower set and pursued their 2014 strategic

goals and business objectives without losing sight of
the corporate compass, the companies corporate
governance practices. The respective Boards worked
tirelessly to ensure accountability of past company
actions through review of reports to shareholders,
legal and regulatory compliance reports, audit reports,
financial results and budgets, and contemporaneous
events that affect the business of AEV and AboitizPower.
2014
Corporate Goverance, a Corporate Compass
75
In 2014, the directors of AEV and AboitizPower were very

active and consistent in their attendance at regular and
special meetings, and were diligent in the performance
of their duties. They had an attendance score of above
86% and the 2013 Board performance appraisal was a
4.6 average on a scale of 1-5.
Rights of Shareholders
76
The rights of shareholders are unequivocally recognized

in the AEV and AboitizPower By-laws, Code of Ethics
and Business Conduct, and Amended Manual of
Corporate Governance. The policy statements found
in these documents reflect the commitment of AEV
and AboitizPower to ensure protection of shareholder
interests and concerns, as well as the free exercise of
these rights. These include the rights to receive notices
and attend shareholders meetings, to participate and
vote in meetings on the basis of the one-share, one-vote
rule, to cumulate their votes, to inspect corporate books
of shareholders, the rationale of agenda items subject

to shareholder approval is included in the notices to
shareholders meetings.
The Aboitiz Group is fully cognizant of the rights of

shareholders and believes that its interests are aligned
to that of its shareholders, not only in terms of returns
on their investments, but also in the sustainability of
the businesses. AEV and AboitizPower take exceptional
efforts in ensuring that shareholders receive timely public
information affecting the businesses they have invested
in, and that they receive their dividends on time.
As long as shareholders provide their contact details, AEV

and AboitizPower send out notices to all shareholders
of record for all annual shareholders meetings, as well
as provide them with copies of the Annual Report. The
agenda items are listed in the notices and are discussed
and voted upon at the annual shareholders meetings. At
the meetings, the Board of Directors, the chief executive
officer (CEO), chief financial officer, the auditors, the
stock transfer agent, and other key officers of AEV and
AboitizPower attend and make themselves accessible
and available for any questions that shareholders and
investors may have. Questions from shareholders are
encouraged by the CEO.
The commitment of AEV and AboitizPower to their

shareholders rights is shown in their well-defined and
published dividend policy, the regular holding of the
annual shareholders meetings, and the timely and
accurate disclosures with the Philippine Stock Exchange,
among others. The Board Secretariats of AEV and
AboitizPower liaise and direct the companies stock
transfer agent to ensure appropriate responses and
the immediate resolution of shareholders queries and
requests brought to their attention.
Equitable Treatment of Shareholders and Fair

Dealings for All Shareholders
All shareholders, regardless of the amount of their

shareholdings, are given the right to participate in
company decision-making, pursuant to the one-share
one-vote policy of AEV and AboitizPower.
As a matter of policy and practice, to ensure that directors,
officers, and even majority shareholders do not take
advantage of their position of knowledge in AEV and
AboitizPower Group, all shareholders are apprised of all
related party transactions, with amounts disclosed, within
the Group. All related party transactions in the Group are
reported in its consolidated Audited Financial Statements
every year. AEV and AboitizPower also strictly enforce
their respective Policies on Trading of Company Securities,
which regulate insider trading policy, and impose a trading
blackout policy to prevent insider opportunism.
All shareholders likewise receive notices to all
shareholders meetings and all agenda items to be
discussed and decided upon during the said meetings
are set out in the notices and that no new agenda item
will be taken up during the meeting. For the guidance
AEV and AboitizPower strictly enforce their Codes

of Ethics and Business Conduct. The Codes outline
the general expectations of and set standards for
directors, and employee behavior and ethical conduct.
The Codes encompass prohibited practices involving
conflicts of interest, proper dealings with proprietary
and confidential information, and truthful disclosures
of material information with transparency in the
best interests of the customers, the companies, the
shareholders, and the public.
Role of Stakeholders
The business model of AEV and AboitizPower is one

anchored on the sustainable growth of the Groups
businesses with full engagement of its stakeholders.
The key stakeholders comprise the team leaders and
team members who work toward achieving business
strategies; the host communities they work with; the
local government units that support and host the Groups
businesses; the customers whom they serve, and the
environment that sustains their growth.
The Group recognizes that corporate governance
principles revolve around relationships between and
among these stakeholders and the Groups goals.
Together, they contribute to the successful pursuit
of business goals. AEV and AboitizPower corporate
governance practices include policies and procedures
that promote awareness and observance of stakeholders
rights at the company level.
The Aboitiz Group is committed to the principles of

sustainability to balance the interests of people, planet,
and profit. By following this rule, the Group has obtained
and maintained a good health, safety, and environmental
track record, a clear proof that a business can align
itself to the principles of sustainability while operating a
profitable business.
The Group launched its Sustainability Policy in 2013,
in the belief that all stakeholders must be treated
with fairness and that corporate social responsibility
is an integral part of doing business. In 2014, AEV and
AboitizPower continued to implement this policy and as
an initiative for the year, jointly launched the BetterWorld
campaign to encourage all stakeholders to adopt this
policy for sustainability. (See Sustainability Report at
www.aboitizfoundation.org)
As a commitment to its employees, both AEV and
AboitizPower embarked on a transformational leadership
program across the organization through the creation
of Leadership Circles. As a result of the Leadership Circle
initiatives, both organizations committed to six leadership
dimensions that would characterize the way the leaders
of AEV and AboitizPower would lead.
The leadership dimensions are mentoring and
development, fostering teamwork, courageous
authenticity, achieving results, sustaining growth, and
integrity. These are intended to transform the Aboitiz
organization from good to great, with the objective to
achieve sustainable breakthrough performance.
The Aboitiz Group is especially proud of its track record
in corporate social responsibility (CSR) commitments.
AEV and AboitizPower, through their business units
and through the Aboitiz Foundation, Inc., have long
standing and deeply rooted practices, commitments,
and partnerships in the field of CSR. Over the last five
years, the Group has allocated more than P2 billion for
its various CSR projects that are focused on education,
enterprise development, and the environment
For 2014 alone, the Aboitiz Foundation earmarked around
P423 million for its CSR projects. These projects were
funded by the business units of AEV and AboitizPower. (See
Aboitiz Foundation Report on its website)
An n ual Report
AEV and AboitizPower each have three Board

committees established to assist their respective
Boards in their oversight responsibility over the Aboitiz
business units. These committees are the Board
Corporate Governance Committee (incorporates the
former Nomination and Remuneration Committee), the
Board Risk and Reputation Management Committee,
and the Board Audit Committee. Three independent
directors sit on the Board Corporate Governance and
Board Audit Committees, comprising a majority of the
membership of these Board Committees. In the Board
Risk and Reputation Management Committee, while not
constituting the majority of the committee membership,
two independent directors sit in the committee.
and records, to vote in person, in absentia or by proxy, to

receive dividends, to nominate and elect directors to the
Board, and to ratify corporate action, among others.
2014
To broaden the directors depth of knowledge and

industry competence, AEV and AboitizPower organize
seminars, lectures and orientations on highly technical
topics unique to or relevant to the Aboitiz Groups
businesses. These include discussions on changing
regulatory oversight of the WESM market and their
impact to AboitizPower, analysis and review of Aboitiz
company risks, the ASEAN integration, the ASEAN
Corporate Governance Scorecard, new developments
in accounting and financial reporting standards, the role
of directors in the audit process, Philippine economic
briefings, and the Aboitiz Groups strategic objectives and
identified strategies.
77
The Boards and Management of AEV and AboitizPower

believe that good governance, especially in the
areas of disclosure and transparency, earns the trust
of stakeholders. The Aboitiz Group provides a high
premium to its collective reputation and exerts efforts
to maintain the trust gained from its dealings with
stakeholders over the years.
To this end, AEV and AboitizPower strive to consistently
maintain their legal compliance and good corporate
governance track record. For 2014, there was no
deviation from or violation of the rules set forth in the
Manual of Corporate Governance, other company
governance and compliance policies, and protocols.
Below is the 2014 PSE Governance Disclosure Report of
AEV and AboitizPower, in a nutshell.
Pursuant to the Groups commitment to transparency
and accountability, AEV and AboitizPower have
maintained their own dedicated corporate governance
web pages on their websites (www.aboitiz.com) and
(www.aboitizpower.com). These web pages contain
company information such as the annual corporate
governance reports, the Board Committees, the Manual
of Corporate Governance, Code of Ethics and Business
Conduct, minutes of the Annual Shareholders Meetings,
investor relations data, and other relevant information
to stakeholders. The pages serve as a resource center for
stakeholders and the public. As part of the commitment
to sustainability, AEV and AboitizPower are maximizing

the use of digital technology rather than using scarce
paper sources.
Visit www.aboitiz.com for the full AEV and AboitizPower
Corporate Governance Report with more details on current
corporate governance practices, corporate achievements,
milestones, and initiatives for the year 2014.
2014 AEV and AboitizPower Awards
AEV and AboitizPower have built and consistently

maintained their core values and conformed to corporate
governance principles in the face of evolving stakeholder
concerns and demands in an ever-changing business
environment. The Aboitiz Groups dedicated and steadfast
adherence to these values and principles is clear proof of
the value of the Aboitiz business motto: We can do well
by doing good.
AEV and AboitizPower, along with their subsidiaries and
affiliates, have been consistently recognized in local and
international surveys, assessments, and scorecards, as
among the Philippines best-managed companies. In
2014, they received many awards, especially in the field of
corporate governance and stakeholder engagement. AEV
and AboitizPower, together with UnionBank, ranked among
the top 50 public companies in the ASEAN Corporate
Governance Scorecard. These awards and recognition
reflect the commitment of the Aboitiz Group to adopt and
implement good corporate governance best practices.
OUR PSE SCORECARD

Develops and executes a sound business strategy
Establishes a well-structured and functioning board
Maintains a robust internal audit and control system
78
Recognizes and manages its enterprise risk

Ensures the integrity of financial reports as well as its external auditing function
Respects and protects the rights of its shareholders, particularly those that belong
to the minority or non-controlling group
Adopts and implements and internationally accepted disclosure and transparency regime
Respects and protects the rights and interests of employees, community, environment,
and other stakeholders
Does not engage in abusive related-party transactions insider trading
Develops and nurtures a culture of ethics, compliance and enforcement
Comply
Aboitiz Equity
Ventures, Inc.
Aboitiz Power
Corporation
HR MISSION: To Attract, Retain, and Optimize our A-People;

constantly adding value to our business
ATTRACT
RETAIN
OPTIMIZE
Strengthen our Ability

to Acquire Talent
through Innovative
Talent Attraction
Strategies
Build Organizational
Capability through
Leadership
Development and
Competency Building
Stimulate Talent
Engagement through
an Inspiring Aboitiz
Culture
Develop Forward-looking HR Strategies
Building Human Capital

The Aboitiz Way
When the Aboitiz Group crystallized its business
objectives into four strategic pillars Grow the Business,
Stakeholder Engagement, Execution Excellence, and
Build Human Capital HRs role in the organization could
not have been any clearer. The team needed to step up
and heed the call to gear up for growth and expansion.
As a response, HR quickly came up with their own set
of strategic goals for the next three years under the HR
pillars of Attract, Retain, and Optimize.
Strengthening the Ability to Acquire Talent

through Innovative Talent Attraction Strategies
The Aboitiz employer brand tagline BetterWays,

launched in 2013, was derived from the Aboitiz brand
essence of Passion for Better Ways.
In 2014, the challenge for the team was clear:
Bring the brand message closer to all A-People and
make them brand beacons while reaching out to
potential A-People outside the organization. Business
imperatives set out a tall order for HR to push the
boundaries in finding better ways to market the
employer brand using non-traditional media.
Internally, several campaigns were rolled out

and integrated to various existing team member
engagement programs. BetterWays became more
than just a tagline; it became every A-Persons story
of why they work in Aboitiz. During the BetterWays
Day anniversary celebration, team members across
the Group became living examples of BetterWays. The
BetterWays e-bulletin and the visual campaign known
as the BetterWays Challenge were launched to keep
the brand spirit alive.
Tapping non-traditional ways of reaching external
talents, Aboitiz Careers added a fresh set of
innovative talent attraction strategies to its already
broad and assorted roster of social media talent
sources. The new Aboitiz Careers mobile application,
one of the first career mobile apps in the Philippines,
is steadily gaining ground. Betterways.ph, a nonbranded work and lifestyle improvement tips
website, has opened a new pool of talent sources
for the Groups career site, and being a member of
LinkedIn Premium has already produced quick wins in
its hiring success rate.
An n ual Report
Disclosure and Transparency
Talent Management
2014
79
Talent Management
These leadership dimensions were then cascaded to

all officers across the Group. In order to sustain these
throughout the organization, group initiatives geared
towards closing the gap between the current and
future state of each dimension among the leaders
were identified.
For instance, Pilmico revitalized its Partners in

Leadership program, while the AboitizPower
Generation Group rolled out the Inyovation Program,
a play on the words inyo (your) and innovation,
to encourage and reward teams for coming up with
continuous improvement and innovative ideas. The
Group sustained last years values launch through
the BetterWays Forum and embedded the values in
various activities conducted throughout the year.
1
2
3
The Groups talent engagement and culture building

initiatives are all anchored on the Aboitiz core values
of integrity, teamwork, innovation, and responsibility.
Various programs that highlight these values have
been put in place across the Group as business units
work towards instilling them in their respective
organizations.
80
In order to measure knowledge and behavioral

indicators, the Reputation Management Team
conducted a brand health check. The results showed a
very clear understanding of each of the values and how
these are manifested and experienced in the workplace,
scoring a consistent 4 out of 5 for both knowledge
and behavior. Indeed, the HR Team is moving a step
closer everyday in achieving their goal of cultivating the
Aboitiz Way across the Group.
Building Organizational Capability through

Leadership Development and Competency
Building
To create a truly high-performing enterprise, it is

important to have defined leadership characteristics.
Mentoring and Developing - The leaders ability

to develop others through mentoring and
maintain growth-enhancing relationships.

Building Competencies Across the Group

Aside from the initiatives for leaders, learning and
development is still a high priority across all levels
in the organization. The Aboitiz Universal Training
Program (UTP) is still very much in place and remains
instrumental in imparting the essential competencies
for an A-Person to excel. In 2012, the Group
UTP Participation Rate
Fostering Teamwork - The leaders ability to

foster high performance teamwork among
team members.
Courageous Authenticity - The leaders

willingness to take tough stands, bring up the
undiscussable (risky issues the group avoids
discussing), and openly deal with difficult
relationship problems.
4
5
6
Succession remains to be an important challenge

for the Group, and HR has responded by continuing
the practice of holding succession reviews twice a
year and tracking talent analytics. These leadership
developments are paying off nicely, since a large
percentage of the Groups succession strategy continues
to come from an internal pool of talents. The current
senior executive team is also largely homegrown.
76%
48%
Replacement Strategy
51%
25%
30%
70%
75%
Achieving Results - The leader is goal-directed

and has a track record of goal achievement and
high performance.
Sustainable Growth - The leaders ability to

achieve results that maintains or enhances the
organizations long term effectiveness.
Integrity - How well the leader adheres to the
set of core values and beliefs he/she espouses,
how well he/she can be trusted to walk the talk.
2012
2013
Source of Key Talent
2014
Internal
Homegrown
External
External
An n ual Report
These differentiate what makes up a leader within

our culture. From April 2013 to May 2014, a core
group of our 22 most senior executives embarked on
a leadership assessment and development journey,
setting out to identify how to raise the level of
leadership competence across the enterprise. This
group of leaders worked with a US-based consulting
firm, Catalyst Leadership, to help us define the
dimensions that make up an Aboitiz Leader:
Creating our Future Organization Blueprint

In order to better prepare the workforce to deliver
on the Groups strategic plans, the practice of future
workforce planning has been incorporated into the
annual calendars of all units Group-wide. In 2014, HR
was able to collate the three-year future workforce
outlook for the leadership team, which was presented
to the Aboitiz Succession Committee.
2014
Stimulating Talent Engagement through an

Inspiring Aboitiz Culture
The six dimensions support the Aboitiz core values

and beliefs that enable everyone to achieve the
Groups mission to create long-term value for all
stakeholders.
participation rate to the UTP was at 48%; as of 2014,

it reached a record-high 76% and is well on its way to
achieving 100% by the end of 2015.
81
Risk Management
To protect and ensure the long-term sustainability of all of their initiatives, HR has embarked on measuring
and managing human capital risk. Group HR has gone through the rigorous exercise of risk management by
identifying, assessing, and mapping out the human resource risks across the Group and coming up with a
treatment for each identified risk.
HR is also poised to take a hard and honest look at their operations, systems, and processes with the goal of
becoming best in class. To do this, the team has turned to renowned HR experts and engaged Aon Hewitt
to conduct a full-blown audit of the Aboitiz HR practices and procedures from both the tactical and the
strategic angles. The whole process took place in three months as 14 different areas of people practices
were thoroughly examined. Each of these people practices fall under five key HR pillars:
Compelling
Employer
Brand
HighPerformance
Culture
Employee
Value
Proposition
Performance
Management
Workforce
Planning
Recruitment &
On-Boarding
Rewards &
Recognition
Learning
Development
Career
Management
Effective
Leadership
High Employee
Engagement
Efficient &
Effective HR
Organization &
Delivery
People
Manager
Development
Employee
Engagement
HR
Effectiveness
Employee
Health &
Wellness
HR
Development
High Potential
Development
Leadership
Development
& Succession
Planning
Aboitiz Enterprise Risk Management:

Achieving Level 4 in Risk Maturity
Now on its third year of assessing the risk maturity of
the Aboitiz Group, AEV is pleased to announce that
the Groups average rating is at 3.9 on a scale of 1 -5.
This puts the Group at the top 15% of all organizations
that participate in the global Risk Maturity Index (RMI)
assessment conducted by AON annually. The 2014
assessment was participated by 110 Aboitiz Group
team leaders, including board members, C-Suite, key
operating team leaders, and risk managers from 16
business units.
The RMI is designed to assess, benchmark, and track
an organizations risk management process covering 10
characteristicsboard understanding and commitment,
risk stewardship, risk communication, engagement
and accountability, risk identification, stakeholder
participation, risk information & decision making
process, integration and human capital processes, risk
analysis and quantification, and value creation.
Achieving level 4 in risk maturity is about achieving
enterprise resiliency.
The audit arrived at four general conclusions
Most Aboitiz HR practices are very mature

with several Best Practices in place, although
differences exist across BUs
82
Top priorities for improvement are

Strategic Workforce Planning, Performance
Management, Career Management and People
Manager Development
To prepare for regional growth, Aboitiz should

consider implementing common HR IT Systems
and enhancing HR Shared Services capabilities
Strong Leadership buy-in and support will be

necessary to continue to succesfully position
Aboitiz HR for the future
The results are both inspiring and challenging. The HR team has their work cut out for them in the next few
years as they polish and refine processes to ultimately achieve best practice level. One thing is certain for
Aboitiz HR: they will be moving with passion toward better ways as one HR team, aiming only to achieve HR
excellence for the organization.
Over the last three years, AEV and the Group

business units have worked together in developing
and executing the key deliverables to achieve level 4
anchored on four pillars or focus areas of the Aboitiz
Group Enterprise Risk Management (ERM) Framework:
Governance
An established governance structure that supports
the risk management process across the Group
Risk Finance
A risk finance strategy and program to achieve an
acceptable balance of retaining and transferring
risks
Capability Building
A continuous education and training program that
builds organization capability, raises awareness,
and enhances the Groups understanding of
managing and measuring risk
These programs, many of them already ongoing,

require updating and enhancement year on year to
manage internal and external business challenges and
opportunities.
An integral part of the Aboitiz Groups ERM efforts
is to understand and anticipate risks that are crucial
to the success of AEV and its businesses. The Group,
therefore, undertakes an annual risk management
process to identify and report on new and emerging
risks, as well as changes to existing key risks, with
special emphasis on treatment mechanisms relating to
said risks. A detailed discussion of these risks is in the
2014 AEV 20-IS Form submitted to the Securities and
Exchange Commission.
Aboitiz Groupwide Average RMI Score
2.7
3.3
3.9
TOP
15
Process and Integration

Having the tools and processes for assessing,
mitigating, monitoring, and reporting risks
including the integration of risk process with
Strategy, Human Resources, Information
Technology, Internal Audit, Legal, Regulatory,
Business Development, and other key internal and
external processes
of all global
respondents
Dec
2011
Mar
2013
Sept
2014
An n ual Report
Developing Forward-looking HR Strategies
2014
Talent Management
83
Risk Management
Board Approved Group RM Policy, Risk Appetite and Tolerance Policy

RM Organizational Structures, Roles and Responsibilities
Strategic, Operational Risk Management Plan, Risk Maps
Project Risk Management
Process and
Integration
Business Continuity Plans
POWER
BANKING
FOOD
LAND
ABOITIZ POWER CORPORATION

76.88% (D)
UNION BANK OF THE PHILIPPINES

47.43% (D)
PILMICO FOODS CORPORATION

100.00% (D)
ABOITIZ LAND, INC.

100.00% (D)
FILAGRI HOLDINGS, INC.

100.00% (D)
Risk Quantification
Integration Risk Management with Key Internal and External Process
Risk Finance
GENERATION
DAVAO LIGHT & POWER

COMPANY, INC.
99.93% (D)
THERMA POWER, INC.

100.00% (D)
Group Insurance Programs

Optimize Captives, Self Insurance and Alternative Risk Transfers
Risk Maturity Index Assesment
Capability
Building
DISTRIBUTION
COTABATO LIGHT & POWER

COMPANY
99.94% (D)
RM Metrics at all levels
VISAYAN ELECTRIC
COMPANY, INC.
55.25% (D)
RM Training Programs and Communication
SAN FERNANDO ELECTRIC

LIGHT & POWER CO., INC.
20.29% (D) 43.78% (B)
Risk Management Information System
SUBIC ENERZONE
CORPORATION
65.00% (D)
99.98% (B)
Completed and Continuous
Ongoing/Upcoming 2015
MACTAN ENERZONE CORPORATION

100.00% (D)
BALAMBAN ENERZONE
CORPORATION
100.00% (D)
2015 Onwards: Sustaining Enterprise Resilience
84
AEVs risk governance and management will continue

to evolve as the Group faces an ever-changing business
environment in its journey to build organization
resiliency. The organization has to be ready for an
unwelcome visit by Murphy, or of a disaster like
Typhoon Yolanda that has catastrophic impact.
With the Groups growth and expansion plans, the
magnitude of risk exposures and opportunities
increases. Sustaining enterprise resiliency can
become difficult; it is therefore imperative to raise
awareness and understanding about emerging and

new risks. The more aware the Group is of the risks
and opportunities in all areas of its businesses, the
better its capability to weather turbulent storms.
Strongly committed to risk management excellence,
the Aboitiz Group believes that enterprise resiliency is
essential in order to achieve its mission to create longterm value for all its stakeholders.
LIMA ENERZONE CORPORATION

100.00% (D)
HEDCOR, INC.
100.00% (B)
THERMA MARINE, INC.

100.00% (B)
AP RENEWABLES, INC.
100.00% (B)
THERMA MOBILE, INC.

100.00% (B)
LUZON HYDRO CORP.

100.00% (B)
THERMA SOUTH, INC.

100.00% (B)
HEDCOR SIBULAN, INC.

100.00% (B)
THERMA POWER VISAYAS, INC.

100.00% (B)
HEDCOR TAMUGAN, INC.

100.00% (B)
THERMA SUBIC, INC.

100.00% (B)
HEDCOR SABANGAN,
INC. 100.00% (B)
THERMA SOUTHERN MINDANAO,

INC. 100.00% (B)
HEDCOR TUDAYA, INC.

100.00% (B)
THERMA CENTRAL VISAYAS, INC.

100.00% (B)
CLEANERGY, INC.
100.00% (B)
THERMA VISAYAS, INC.

80.00% (B)
HEDCOR MT. PROVINCE, INC.

100.00% (B)
ABOVANT HOLDINGS, INC.

60.00% (B)
HEDCOR BUKIDNON, INC.

100.00% (B)
PAGBILAO ENERGY CORPORATION

50.00% (B)
ABOITIZ ENERGY SOLUTIONS, INC.

100.00% (D)
ADVENTENERGY, INC.
100.00% (D)
PRISM ENERGY, INC.
60.00% (D)
ABOITIZPOWER
INTERNATIONAL PTE. LTD.
100.00% (D)
ABOITIZ RENEWABLES, INC.

100.00% (D)
THERMA LUZON, INC.

100.00% (B)
CEBU ENERGY DEVT. CORP.

44.00% (D)
RES/OTHERS
PILMICO ANIMAL
NUTRITION
CORPORATION
100.00% (D)
REDONDO PENINSULA
ENERGY, INC. 25.00% (B)
AEV AVIATION, INC.

99.98% (B)
CEBU INDUSTRIAL PARK

DEVELOPERS, INC. 60.00% (B)
ACCURIA, INC. &

SUBSIDIARIES 49.54% (D)
MISAMIS ORIENTAL LAND

DEVT. CORP. 60.00% (B)
ARCHIPELAGO INSURANCE
PTE. LTD.
100.00% (D)
LIMA LAND INC.

100.00% (B)
LIMA WATER CORP.
100.00% (D)
CEBU DISTRICT PROPERTY

ENTERPRISE INC. 50.00% (B)
CEBU PRAEDIA DEVT. CORP.

100.00%
AEV INTERNATIONAL PTE. LTD.

100.00% (D)
PILMICO INTERNATIONAL
PTE. LTD. 100.00% (B)
PILMICO VHF JOINT STOCK

COMPANY 100.00% (D)
APO AGUA
INFRASTRUCTURA
70.00% (D)
HEDCOR BENGUET, INC.

100.00% (B)
HEDCOR ITOGON, INC.
100.00% (B)
EAST ASIA UTILITIES

CORPORATION
50.00% (D)
MANILA-OSLO RENEWABLE
ENTERPRISE, INC. 83.33% (B)
WESTERN MINDANAO POWER

CORPORATION
20.00% (D)
PROPRIEDAD DEL NORTE,

INC. 100.00% (B)
HYDRO ELECTRIC DEVT. CORP.

100.00% (B)
TAGOLOAN HYDRO
CORPORATION
100.00% (B)
SOUTHERN PHILIPPINES POWER

CORPORATION
20.00% (D)
ASEAGAS CORPORATION
100.00% (D)
CORDILLERA HYDRO CORP.

100.00% (B)
CEBU PRIVATE POWER

CORPORATION
60.00% (D)
STEAG STATE POWER, INC.

34.00% (D)
FILAGRI, INC.
100.00% (B)
OTHERS
SN ABOITIZ POWER MAGAT,

INC. 60.00% (D)
An n ual Report
Governance
Key Deliverables To Achieve Level 4
SN ABOITIZ POWER RES, INC.

60.00% (D)
SN ABOITIZ POWER
BENGUET, INC. 60.00% (D)
SN ABOITIZ POWER
GENERATION, INC. 60.00% (D)
AS OF MARCH 31, 2015
2014
Pillars
Corporate Structure
85

Board of Directors
Jon Ramon Aboitiz
Erramon I. Aboitiz
Roberto E. Aboitiz
Enrique M. Aboitiz
86
Justo A. Ortiz
Antonio R. Moraza
Director
Director
An n ual Report
Director
Director
Director
Jose C. Vitug
Independent Director
Stephen T. CuUnjieng
Raphael P. M. Lotilla
2014
87

Corporate Officers
Stephen G. Paradies
Xavier Jose M. Aboitiz
Robert McGregor
Juan Antonio E. Bernad
Luis Miguel O. Aboitiz
Sabin M. Aboitiz
Susan V. Valdez
Romn V. Azanza III
Melinda R. Bathan

Chief Reputation and
Risk Management Officer
Horacio C. Elicano

Chief Technology Officer

Business Development

Controller
Narcisa S. Lim

Human Resources and Quality
An n ual Report

Chief Strategy and Investment Officer
M. Jasmine S. Oporto

Chief Legal Officer / Corporate Secretary/
Compliance Officer
Gabriel T. Maalac
Group Treasurer
William W. Paradies
Vice President
Finance
Susan S. Policarpio
Vice President
Government Relations
2014

Chief Human Resources Officer
88
Mikel A. Aboitiz

Corporate Information Officer
89

Corporate Officers
Ricardo F. Lacson, Jr.
Annacel A. Natividad
Julie Ann T. Diongzon
Joseph Y. Tugonon
Jerome J.N. Cachau
Martina Michaela Dampf
Vice President
Vice President
Treasury Services Group
Vice President
President
Chief Operating Officer
Justo A. Ortiz
Chairman
Union Bank of the Philippines
Emmanuel V. Rubio
Jaime Jose Y. Aboitiz
Catalino S. Abacan
Sabin M. Aboitiz
Executive Vice President

Power Generation Group
President
City Savings Bank

Power Distribution Group
President
Pilmico Foods Corporation
An n ual Report
Vice President
Tax Advisory & Compliance
Vice President
Financial Risk Management
Antonio R. Moraza
Angelita M. Azuelo
Vice President
HR Operations and Talent Retention
Andoni F. Aboitiz
President
Aboitiz Land, Inc.
2014
Vice President
Strategy
90
Business Unit Heads
91
Management Directory 2014-2015

Board of Directors
Jon Ramon Aboitiz
Roberto E. Aboitiz
Justo A. Ortiz
Jose C. Vitug
Erramon I. Aboitiz
Enrique M. Aboitiz
Antonio R. Moraza
Director
Director
Director
Director
Raphael P.M. Lotilla
Director
Corporate Officers
LiMA EnerZone
Jon Ramon Aboitiz
Erramon I. Aboitiz
Sabin M. Aboitiz
President & Chief Executive Officer
Stephen G. Paradies
Horacio C. Elicano


Chief Technology Officer
Mikel A. Aboitiz

Melinda R. Bathan

Robert McGregor

Chief Strategy and Investment Officer
Susan V. Valdez

Chief Reputation and Risk
Management Officer
Chief Legal Officer
Corporate Secretary
Compliance Officer
Gabriel T. Maalac
A diversified portfolio with assets

located all over the country
Romn V. Azanza III

Controller
Narcisa S. Lim

William W. Paradies
Vice President
Finance
Susan S. Policarpio
Vice President
Ricardo F. Lacson, Jr.

Vice President
Strategy
Annacel A. Natividad
Vice President
Financial Risk Management

Group Treasurer
Julie Ann T. Diongzon

Vice President
Treasury Services Group
Joseph Y. Tugonon
Vice President
Tax Advisory & Compliance
Angelita M. Azuelo
Vice President
HR Operations and Talent Retention
Jerome J.N. Cachau

Vice President
Martina Michaela Dampf

Vice President
Robin Patrick R. Sarmiento
Marilou P. Plando
Ellen Nikoline B. Felding
Assistant Vice President

Business Administrator
Legal and Corporate Services
Assistant Director
Leah I. Geraldez
Catherine R. Atay

Corporate Secretarial and
Compliance Services for Legal and
Corporate Services
Assistant Corporate Secretary
Maria Lourdes Y. Tanate

Group Internal Audit

Labor and Litigation
Legal and Corporate Services
Erwin I. Jallorina


Physical Assets Security
Francisco Victor G. Salas
Ma. Theresa L. Gaddi

Human Resources
Christopher M. Camba
Ronaldo S. Ramos
Maria Luisa L. Marasigan
Olyzza M. Oyangoren
Jose Angelo T. Fernandez

Dave Michael V. Valeriano

Investor Relations
Aylmerita C. Pealoza
Treasury

Francis S. Cabanban

Accounting
Juan Manuel M. Gatmaitan


IT Architect
Martin John S. Yasay
Jose Grego U. Sitoy


IT Operations and Information
Security
Tiwi Geothermal
MakBan Geothermal
Mobile 3-6

Corporate Branding and
Communication

Sustainability, Corporate Branding &
Communication
Magat Hydro
Subic EnerZone
SFELAPCO

Strategy and Corporate Finance
Business Risk Management
Binga Hydro
Benguet Hydro 1-11
Ma. Clarice U. Marucut

Project Finance
Andy G. Torrato
Bakun Hydro
Ambuklao Hydro
Pagbilao
VECO
AESI
Cebu
Mactan
Mactan EnerZone
Balamban EnerZone
Toledo
Mobile 2
Mindanao
Zamboanga
Mobile 1
Davao Light
Mercedes Maria B. Zamora
Davao Hydro 1-5

Talent Optimization
Sibulan Hydro
Davao
Board Committees 2014-2015
Cotabato Light
Board Corporate Governance Committee
92
Chairman of the Committee

Member of the Committee

Jose C. Vitug
Roberto E. Aboitiz
Board Audit Committee

Jose C. Vitug


Ex-Officio Member of the Committee

Compliance Officer
Roberto E. Aboitiz

Director

Director
Jon Ramon Aboitiz

Erramon I. Aboitiz
Justo A. Ortiz
Stephen G. Paradies

Director

AdventEnergy
ULGPP
Ex-Officio Member of the Committee

Justo A. Ortiz

Director
Board Risk and Reputation Management Committee

Enrique M. Aboitiz
General Santos

President and Chief Executive Officer
Ex-Officio Member
Susan V. Valdez
Ex-Officio Member
Chief Reputation Officer and
Renewable
Non-Renewable
Sales and Retail
Distribution
An n ual Report

Director

2014
Jon Ramon Aboitiz
Cotabato
93

Board of Directors
Enrique M. Aboitiz
Jon Ramon Aboitiz
Erramon I. Aboitiz
Antonio R. Moraza
94
Mikel A. Aboitiz
Director
Director
An n ual Report
Vice Chairman
Director
Director
Carlos C. Ejercito
Romeo L. Bernardo
Alfonso A. Uy
2014
95

Corporate Officers
Erramon I. Aboitiz
Manuel R. Lozano
Ma. Chona Y. Tiu
President & Chief Operating Officer
Manuel M. Orig
Joseph Trillana T. Gonzales

Mindanao Affairs

General Counsel

Regulatory Affairs
Susan V. Valdez
Thomas J. Sliman, Jr.
John Anthony Crane
James J. Timko II

Power Marketing and Trading


Alvin S. Arco
An n ual Report

Strategy and Regulation

Group Treasurer
Donald L. Lane
Executive Director
Corporate Secretary
Compliance Officer
Chief Reputation and

Executive Director
Projects
Senior Director
Senior Director
2014
Gabriel T. Maalac


96
Emmanuel V. Rubio
Antonio R. Moraza
97

Corporate Officers
Liza Luv L. Tajanlangit-Montelibano
Vice President
Customer Services
Marco R. Carlos
Vice President
Safety, Health, Environment and Quality
Roland U. Gaerlan
Crisanto R. Laset, Jr.
Susan S. Policarpio
Wilfredo R. Bacareza, Jr.
Yari A. Miralao
Vice President
Ma. Kristina C.V. Rivera
Artemio D. Magnayon
Rodrigo M. San Pedro, Jr.
Vice President
Cristina B. Beloria
Ana Liza M. Aleta
Dennis A. de la Serna
Vice President
Vice President
Trading
Vice President
Sales and Marketing
Vice President
Vice President
Commercial
An n ual Report
Kenton E. Heuertz
Vice President
Controller
Vice President
Strategy, Systems and Performance
Vice President
Regulatory Affairs
Raul C. Lucero
Vice President
Engineering
Ronald Enrico V. Abad

Vice President
Project Development
2014
Vice President
98
Bienamer D. Garcia
Director
Asset Management
Vice President
99
Business Unit Heads
Management Directory 2014-2015

Board of Directors
Enrique M. Aboitiz
Erramon I. Aboitiz
Mikel A. Aboitiz
Carlos C. Ejercito
Jon Ramon Aboitiz
Antonio R. Moraza
Romeo L. Bernardo
Cristina B. Beloria
Clovis B. Racho
Irwin C. Pagdalian
Aladino B. Borja, Jr.
Cherry Aquino-Javier

Vice Chairman
Director
Director
Corporate Officers
Enrique M. Aboitiz
Jon Ramon Aboitiz
Vice Chairman of the Board

Mindanao Affairs
Erramon I. Aboitiz
Joseph Trillana T. Gonzales
Antonio R. Moraza
President & Chief Operating Officer
Emmanuel V. Rubio
Emmanuel V. Rubio
President
SNAP-Magat / SNAP-Benguet
Benjamin A. Cariaso, Jr.
President
Therma Luzon, Inc. / Therma South, Inc.
Rene B. Ronquillo
President
Hedcor Group



Strategy and Regulation

Power Marketing and Trading
Donald L. Lane
Executive Director
Corporate Secretary
Compliance Officer
Gabriel T. Maalac
President
AP Renewables, Inc.
Jose Venancio P. Batiquin
President
Therma Marine, Inc. / Therma Mobile, Inc.
Sebastian R. Lacson

Visayan Electric Company, Inc.

General Counsel
Alvin S. Arco

Regulatory Affairs
Liza Luv L. TajanlangitMontelibano

Vice President
Chief Financial Officer Power
Generation Group
Thomas J. Sliman, Jr.

Executive Director
Projects
John Anthony Crane

Senior Director
James J. Timko II
Senior Director
Kenton E. Heuertz

Vice President
Strategy, Systems and Performance
Dennis A. de la Serna
Vice President
Regulatory Affairs

Procurement and Logistics

Special Projects

Information Services

Industry Affairs
Anne S. Jimenez
Roberto V. Orozco
Marco R. Carlos
Vice President
Safety, Health, Environment and Quality
Roland U. Gaerlan
Vice President
Sales and Marketing
Crisanto R. Laset, Jr.

Vice President
Trading
Ma. Kristina C.V. Rivera

Legal and Regulatory Affairs

Energy Accounts and Support
Services
Arazeli L. Malapad
Consuelo D. Labao

Accounting
Power Generation Group (Luzon)
Paquita S. Tigue-Rafols
Vice President
Artemio D. Magnayon
Ma. Cielita C. Aiga
Rodrigo M. San Pedro, Jr.
Rowena V. Romero
Katrina M. Platon

Corporate Services
Power Generation (Oil Group)
Vice President

Energy Sales (Luzon)

Civil Site Construction
Head
IT Facilities Group

Gil G. Cardiel
Carlo P. Cruz
Raul C. Lucero
Katrina Michaela D. Calleja
Vice President
Vice President
Engineering
Wilfredo R. Bacareza, Jr.
Mark Albert B. Canlas
Vice President
Yari A. Miralao
Vice President

Carlos Copernicus S. Payot

Controller

Key Accounts
Timothy Joseph P. Abay

Nina Ylagan-Pedro

Corporate Branding and
Communication

HR Operations, Attraction &
Optimization
Raizza L. Manuel
Dave Michael V. Valeriano

Socorro L. Patindol

Geosciences
Controller

Marketing Services

Investor Relations
Lemuel P. Quilos
Pascualito Timothy D. Masion
Ronald Enrico V. Abad

Vice President
Project Development

Finance-Special Projects
Head
Business Solutions Group
Bienamer D. Garcia
Susan S. Policarpio
Ma. Chona Y. Tiu
Ana Liza M. Aleta
Director
Asset Management
Susan V. Valdez

Vice President
Controller
Raymond Carl R. Roseus
Vice President
Customer Services
Manuel R. Lozano
Director
Alfonso A. Uy
Vice President
Commercial

Group Treasurer
Chief Reputation and Risk

Management Officer
Felino M. Bernardo
Manuel M. Orig
Director

HR Retention & Systems
Benedick M. Salvador

Energy Sales (Visayas and Mindanao)

Environmental Management
Board Committees 2014-2015
100
Xavier J. Aboitiz

Vice Chairman

Ex-Officio Member
SVP - Chief Human Resources Officer AEV
Erramon I. Aboitiz
Romeo L. Bernardo
Alfonso A. Uy

Ex-Officio Member
Compliance Officer

Board Audit Committee

Carlos C. Ejercito

Romeo L. Bernardo

Alfonso A. Uy

Antonio R. Moraza

Director
Mikel A. Aboitiz

Director
Board Risk and Reputation Management Committee
Arturo M. Milan

Davao Light and Power Company, Inc.
Rodger S. Velasco

Cotabato Light and Power Company
Dante T. Pollescas

Subic, Balamban, Mactan, and LiMA EnerZones
Enrique M. Aboitiz

Antonio R. Moraza

Director
Mikel A. Aboitiz

Director
Carlos C. Ejercito

Alfonso A. Uy

Manuel R. Lozano
Ex-Officio Member
Susan V. Valdez
Ex-Officio Member
Chief Reputation and Risk Management Officer
An n ual Report

Director
2014
Board Corporate Governance Committee

Jon Ramon Aboitiz
Carlos C. Ejercito
101

Board of Trustees
Erramon I. Aboitiz
Susan V. Valdez
102
Andoni F. Aboitiz
Trustee
Trustee
An n ual Report
President / Trustee

Trustee
Ma. Aurora F. Tolentino

Independent Trustee
Sabin M. Aboitiz
Trustee

Trustee
Stephen G. Paradies
Treasurer / Trustee
Antonio R. Moraza
Trustee
2014
Chairman
103

Board of Trustees
Board of Advisers
Enrique M. Aboitiz
Manuel B. Zamora Jr.
Sabin M. Aboitiz
Dennis Schulze
Chairman
Anton Mari G. Perdices

Adviser
Tristan Roberto C. Aboitiz

Adviser
Vice Chairman / Trustee
Susan V. Valdez
President / Trustee
Danel C. Aboitiz
Adviser
Management
Treasurer / Trustee
Trustee
Hans T. Sy
Independent Trustee
Tristan Roberto C. Aboitiz

Adviser
104
An n ual Report

Fulgencio S. Factoran, Jr.

Independent Trustee
2014
Augusto P. I. Carpio
105

Board of Advisers
Ana Aboitiz-Delgado
Liza B. Silerio
Adviser
Genaro V. Lapez
Adviser
Dennis G. Zamora
Adviser
Adviser
Maria Monica Araneta

Adviser
Management
106
Celso Caballero III

General Manager

Audited Consolidated
Financial Statements
The Audit Committee Report to the Board of Directors
Membership
As of December 31, 2014, the Board Audit Committee is composed of five (5) members, three (3) of whom are independent directors.
Jose C. Vitug, a retired Justice of the Supreme Court (Independent Director) Chair of the Committee is ably assisted by Atty. Raphael
P. M. Lotilla (Independent Director), Stephen T. CuUnjieng (Independent Director), Justo A. Ortiz (Executive Director) and Roberto E.
Aboitiz (Non-Executive Director).
Meetings
There were four (4) regular Committee meetings held during the yearMarch 4, May 6, July 22 and October 28one (1) special
meeting on July 30, and two (2) joint meetingsJune 2 and Dec 11with the Board Risk and Reputation Management Committee.
Also present in these meetings is the Group Internal Audit Head, the Chief Reputation and Risk Management Officer, and by invitation,
the AEV Chief Financial Officer and the AEV Controller.
Financial Reports
On a high level basis, the Committee reviewed, discussed, and endorsed for the approval of the Board the quarterly unaudited
consolidated financial statements and the annual audited financial statements of Aboitiz Equity Ventures, Inc., and its Subsidiaries.
Included in the review are the Management Discussion and Analysis of Financial Condition and Results of Operations after these have
been presented and discussed with management, accounting and the companys independent external auditor, SyCip Gorres Velayo &
Co. (SGV)a member practice of Ernst & Young (EY) in the Philippines.
The activities of the Audit Committee were performed in the following context:
That management has the primary responsibility for the financial statements and the financial reporting process; and
T hat the companys independent external auditor is responsible for expressing an opinion on the conformity of the Companys
audited financial statements with Philippine Financial Reporting Standards.
Independent Auditors
On July 22, 2014, the Board Audit Committee endorsed the re-appointment of SyCip Gorres Velayo & Co. (SGV) as the independent
external auditor for the company. The overall scope and audit plan of SGV were reviewed and approved during the October 28, 2014,
regular Board Audit Committee meeting. The terms of engagement which covers audit-related services provided by SGV and its related
fees were also reviewed and found to be reasonable.
The results of the SGV audits and its assessment of the overall quality of the financial reporting process were discussed. SGV presented
the effects of changes in relevant accounting standards and presentation of financial statements that impact on the reported results.
These matters were covered during the first Board Audit Committee meeting held the following year on March 5, 2015.
The delegation to the Board of Directors of the appointment of the Companys external auditor was made upon the recommendation
of the Board Audit Committee.
108
Also, in the review of non-audit services provided by independent auditors, the Committee unanimously concurred/ratified the
opinion that there is no conflict of interest and that the work that Ernst & Young (Indonesia) have been contracted to do for the
Company is compatible with the general standard of independence for auditors imposed by relevant regulations.
Internal Auditors
The Group Internal Audit (GIA) takes the lead in setting the standards, initiatives and overall direction of the group-wide resident
internal audit teams deployed to the different business units. It remains to be the single point of contact for the Board Audit
Committee. The restructuring of the internal audit organization has proven to be a worthwhile endeavour as the scope and coverage of
audits have increased with resident audit teams being able to specialize in areas of business covered by their teams.
The Committee reviewed and approved the annual audit program for the year which also covers the adequacy of resources,
qualifications and competency of the staff and independence of the internal auditor.
With reference to the IPPF Attribute Standard 1100 which states that The Internal Audit Activity must be independent, and internal
auditors must be objective in performing their work, the Committee confirms that the internal auditors conducted its responsibilities
objectively and in an unbiased manner. The Committee further confirms that, to the best of its knowledge and belief, the auditors
have no personal or other impairments that prevent them from objectively planning, conducting, reporting, or otherwise participating
and reaching independent conclusions in the audit assignments in 2014. Internal audit is organizationally positioned to be
independentadministratively reporting to the President and Chief Executive Officer and functionally reporting to the Board Audit
Committee.
Based on the information from the results of the audits conducted in 2014 for Aboitiz Equity Ventures, Inc., its subsidiaries and
alliances, with the contribution provided by management and other key leaders on the issues raised to their attention, Internal Audit
believes that, overall there is reasonable assurance that the existing system of internal controls allows for a generally adequate
management of identified risks and effectively supports the improvement of the management of the Company as a whole.
Review of the Audit Charter
The Committee reviewed and assessed the current audit charter in its meeting held October 29, 2014 and found it adequate. No
modification were found to be needed.
Self-Assessment
The Committee conducted its annual self-assessment in accordance with the guidelines of SEC Memo Cir. No. 4, series of 2012. The
assessment result showed that it fully complied with the requirements set forth in the Audit Charter and met the necessary and most
important requirements set by global standards and best practices.
Risk Management
The Committee had two (2) joint meetings with the Board Risk and Reputation Management Committee in 2014 where the updated
results of the Risk Management Plan validation conducted by GIA, and the resident audit teams were presented. Considering the
dynamic nature of risks, this closed-looped process from risk identification to risk treatment validation should be ongoing and
continual in order to ensure that risk treatment activities that the business units commit to do are being done. The ultimate value of
this process is to assist the business units in enhancing their capability to manage and monitor its top risks.
It is in the joint meetings that the members of the Audit Committee are apprised of the top key strategic risks consequential to the
Companys ability to execute its strategies and achieve its business objectives for the following year. High-level risk exposures are
presented and discussed as these issues can affect shareholder value and ultimately the viability of the company. The significant
potential impact of these strategic risks warrants a more focused attention from the board and its directors.
As in previous years, the Committee continues to monitor action plans and commitments developed by management to address audit
issues and to ensure that proposed solutions are workable, strategic and sustainable.
Finally, the Committee has undertaken its activities to see to it that it continues to deepen its focus on the integrity of financial
reporting, effectiveness of internal controls, risk management, governance and compliance within the Aboitiz Power group of
companies.
In behalf of the Committee,
Jose C. Vitug
(Retired Justice, Supreme Court/Independent Director)
Chairman
An n ual Report
The Board Audit Committees roles and responsibilities are embodied in the Board Audit Committee Charter approved by the Board of
Directors. Its primary function is to provide assistance to the Board in fulfilling its oversight responsibility to the shareholders relating
to: (a) the quality and integrity of the Companys accounting, auditing, legal, ethical and regulatory compliance; (b) risk management;
(c) financial reporting practices; and (d) corporate governance. Any proposed changes to the Audit Committee Charter are referred to
the Board for approval.
All technical audits related to information systems and technology are handled by the group internal auditors until such time that
competencies to handle such audits can be transferred to the resident audit teams. Focus areas reviewed in 2014 include information
technology general controls and software applications reviews.
2014
The Board Audit Committee Report to the Board of Directors
109
Statement of Managements
Responsibility for Financial Statements
SEC FORM 20 - IS (INFORMATION STATEMENT)
SECURITIES AND EXCHANGE COMMISSION

SEC Building, EDSA Greenhills
Mandaluyong, Metro Manila
STATEMENT OF MANAGEMENT'S RESPONSIBILITY
FOR FINANCIAL STATEMENTS
The management of Aboitiz Equity Ventures, Inc. is responsible for the preparation and fair
presentation of the consolidated financial statements for the years ended December 31, 2014
and 2013, including the additional components attached therein, in accordance with the
prescribed financial reporting framework indicated therein. This responsibility includes
designing and implementing internal controls relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error,
selecting and applying appropriate accounting policies, and making accounting estimates that
are reasonable in the circumstances.
The Board of Directors reviews and approves the consolidated financial statements and submit
the same to the stockholders.
Sycip Gorres Velayo & Co., the independent auditors, appointed by the stockholders for the
period December 31, 2014 and 2013 has examined the consolidated financial statements of the
company in accordance with Philippine Standards on Auditing, and in its report to stockholders,
has expressed its opinion on the fairness of presentation upon completion of such examination.
JON RAMON M. ABOITIZ

166
110
An n ual Report
STEPHEN G. PARADIES
Senior Vice President - Chief Financial Officer
Signed this 10th day of March, 2015.

Annual Report 2014
2014
ERRAMON I. ABOITIZ
President & Chief Executive Officer
167
111
Independent Auditors Report

SyCip Gorres Velayo & Co.
6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 891 0307

Fax: (632) 819 0872
ey.com/ph

BOA/PRC Reg. No. 0001,
December 28, 2012, valid until December 31, 2015
SEC Accreditation No. 0012-FR-3 (Group A),
November 15, 2012, valid until November 16, 2015
INDEPENDENT AUDITORS REPORT
The Stockholders and the Board of Directors

We have audited the accompanying consolidated financial statements of Aboitiz Equity Ventures, Inc.
and Subsidiaries, which comprise the consolidated balance sheets as at December 31, 2014 and
2013, and the consolidated statements of income, statements of comprehensive income, statements
of changes in equity and statements of cash flows for each of the three years in the period ended
December 31, 2014, and a summary of significant accounting policies and other explanatory
information.
-2Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of Aboitiz Equity Ventures, Inc. and Subsidiaries as at December 31, 2014 and 2013,
and their financial performance and their cash flows for each of the three years in the period ended
December 31, 2014 in accordance with Philippine Financial Reporting Standards.
SYCIP GORRES VELAYO & CO.
Managements Responsibility for the Consolidated Financial Statements

Management is responsible for the preparation and fair presentation of these consolidated financial
statements in accordance with Philippine Financial Reporting Standards, and for such internal control
as management determines is necessary to enable the preparation of consolidated financial
statements that are free from material misstatement, whether due to fraud or error.
Auditors Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our
audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from
material misstatement.
Leovina Mae V. Chu

Partner
CPA Certificate No. 99910
SEC Accreditation No. 1199-A (Group A),
March 15, 2012, valid until March 31, 2015
Tax Identification No. 209-316-911
BIR Accreditation No. 08-001998-96-2015,
January 5, 2015, valid until January 4, 2018
PTR No. 4751341, January 5, 2015, Makati City
March 10, 2015
112
168
Annual Report 2014
A member firm of Ernst & Young Global Limited
An n ual Report
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
169
2014
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the consolidated financial statements. The procedures selected depend on the auditors
judgment, including the assessment of the risks of material misstatement of the consolidated
financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entitys preparation and fair presentation of the
consolidated financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entitys
internal control. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of accounting estimates made by management, as well as evaluating the
overall presentation of the consolidated financial statements.
113
Independent Auditors Report on Supplementary Schedules

6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 891 0307

Fax: (632) 819 0872
ey.com/ph

Consolidated
Balance Sheets
ABOITIZ EQUITY VENTURES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

Aboitiz Equity Ventures, Inc. and Subsidiaries
(Amounts in Thousands)
Consolidated Balance Sheets
December 31
2014
2013

ON SUPPLEMENTARY SCHEDULES
ASSETS
SYCIP GORRES VELAYO & CO.
=P50,481,566
16,639,775
7,664,499
53,500
4,041,372
78,880,712
=36,118,190
P
17,122,945
8,759,165
30,900
3,900,052
65,931,252
Noncurrent Assets
Trade receivables - net of current portion (Note 5)
Investments and advances (Note 10)
Property, plant and equipment (Notes 13 and 19)
Land and improvements (Note 13)
Investment properties (Notes 14 and 29)
Intangible asset - service concession rights (Note 15)
Available-for-sale (AFS) investments (Note 3)
Net pension assets (Note 30)
Derivative asset - net of current portion (Note 36)
Deferred income tax assets (Note 31)
Goodwill (Notes 9 and 12)
Other noncurrent assets (Notes 8 and 16)
Total Noncurrent Assets
292,414
52,267,310
126,203,724
1,970,211
4,441,417
3,400,354
64,244
133,882
59,044
350,005
1,550,106
11,383,133
202,115,844
405,544
47,906,352
112,721,907
2,041,356
3,940,854
3,663,275
64,980
99,996
610,314
1,334,878
8,367,367
181,156,823
P
=280,996,556
P
=247,088,075
=7,343,700
P
=3,959,509
P
2,907,302
1,216,469
40,000
40,000
1,971,739
15,631,565
694,604
28,588,910
780,905
18,499,480
444,290
23
24,940,676
TOTAL ASSETS
Leovina Mae V. Chu

Partner
CPA Certificate No. 99910
SEC Accreditation No. 1199-A (Group A),
March 15, 2012, valid until March 31, 2015
January 5, 2015, valid until January 4, 2018
March 10, 2015
114
172
LIABILITIES AND EQUITY

Current Liabilities
Bank loans (Note 17)
Current portions of:
Long-term debts (Note 19)
Long-term obligation on Power Distribution System (PDS)
(Note 15)
Obligations under finance lease
(Notes 13 and 22)
Trade and other payables (Notes 18, 34 and 38)
Income tax payable
Derivative liabilities (Note 36)
Total Current Liabilities
(Forward)
Annual Report 2014
An n ual Report
We have audited in accordance with Philippine Standards on Auditing, the consolidated financial
statements of Aboitiz Equity Ventures, Inc. and Subsidiaries included in this Form 17-A and have
issued our report thereon dated March 10, 2015. Our audits were made for the purpose of forming
an opinion on the basic financial statements taken as a whole. The schedules listed in the Index to
Financial Statements and Supplementary Schedules are the responsibility of the Companys
management. These schedules are presented for purposes of complying with the Securities
Regulation Code Rule 68, as amended (2011) and are not part of the basic financial statements.
These schedules have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, fairly state in all material respects the financial data
required to be set forth therein in relation to the basic financial statements taken as a whole.
Current Assets
Cash and cash equivalents (Note 4)
Trade and other receivables (Note 5)
Inventories (Note 6)
Derivative asset (Note 36)
Other current assets (Notes 7 and 8)
Total Current Assets
173
2014

32nd Street, Bonifacio Global City
Taguig City, Metro Manila, Philippines
115
Consolidated Statements of Income

CONSOLIDATED
OF INCOME
Consolidated
StatementsSTATEMENTS
of Income
-2-
in Thousands,
Except
Per Share Amounts)
(Amounts(Amounts
in Thousands,
Except Earnings
Per Earnings
Share Amounts)
December 31
2014
2013
Non-controlling Interests
Total Equity
TOTAL LIABILITIES AND EQUITY
116
See accompanying Notes to Consolidated Financial Statements.
=P54,421,858
34,984,519
223,865
465,104
5,418,458
2,008,669
1,370,814
704,640
99,597,927
124,538,603
5,694,600
6,911,044
5,694,600
6,110,957
5,376,176
5,376,176
469,540
(1,577,075)
469,540
(1,262,862)
14,627
35,533
7,881
(14,534)
(708,448)
(857,602)
(315,444)
(156,925)
(277,293)
(295,546)
(1,496,305)
94,995,596
(1,178,397)
107,944,154
26,990,810
134,934,964
(3,403,534)
86,554,345
(1,295,163)
96,927,333
25,622,139
122,549,472
P
=280,996,556
P
=247,088,075
REVENUES (Note 25)

Sale of:
Power and electricity
Goods
Real estate (Notes 13 and 25)
Fair value of swine (Note 8)
Service fees (Note 38)
Bank revenues (Note 9)
Others (Note 34)
Years Ended December 31

2013
2012
=P86,136,648
17,862,179
3,267,741
1,878,236
252,028
470,458
109,867,290
=71,810,961
P
15,125,115
1,760,573
1,306,475
714,428
158,742
90,876,294
=61,837,754
P
14,506,723
237,553
1,181,061
416,387
2,202,204
636,118
81,017,800
50,870,515
14,722,760
17,383,920
2,235,576
108,789
85,321,560
42,357,799
13,300,399
12,844,466
1,078,392
71,755
69,652,811
31,893,729
12,686,202
12,439,203
187,029
776,187
90,193
58,072,543
OPERATING PROFIT
Share in net earnings of associates (Note 10)
Interest expense (Notes 22, 34 and 35)
Interest income (Notes 4, 34 and 35)
Other income - net (Notes 29 and 34)
24,545,730
7,244,241
(6,696,445)
591,136
1,906,530
21,223,483
10,596,577
(5,748,235)
481,461
541,503
22,945,257
13,322,144
(7,571,446)
1,008,811
2,352,476
INCOME BEFORE INCOME TAX
27,591,192
27,094,789
32,057,242
4,026,326
886,552
1,910,604
NET INCOME
P
=23,564,866
=P26,208,237
=P30,146,638
ATTRIBUTABLE TO:
Equity holders of the parent
=18,380,620
P
5,184,246
=21,027,470
P
5,180,767
=23,964,674
P
6,181,964
P
=23,564,866
=P26,208,237
=P30,146,638
=P3.324
P
=3.808
P
=4.340
COSTS AND EXPENSES

Cost of generated and purchased power
(Notes 5, 26, 27 and 38)
Cost of goods sold (Notes 6 and 27)
Operating expenses (Notes 27, 34, 38 and 39)
Cost of real estate sales (Note 6)
Bank interest expense (Note 9)
Overhead expenses (Note 27)
PROVISION FOR INCOME TAX (Note 31)
EARNINGS PER SHARE (Note 32)

Basic and diluted, for net income for the year
attributable to ordinary equity holders of the
parent
An n ual Report
Equity Attributable to Equity Holders of the Parent

Capital stock (Note 23)
Additional paid-in capital (Note 23)
Other equity reserves:
Gain on dilution (Note 2)
Excess of book value over acquisition cost of an acquired
subsidiary (Note 9)
Acquisition of non-controlling interests (Note 2)
Other components of equity:
Net unrealized mark-to-market gains on AFS
investments
Cumulative translation adjustments (Note 36)
Actuarial losses on defined benefit plans
(Note 30)
Share in actuarial losses on defined benefit plans
of associates (Note 10)
Share in cumulative translation adjustments
of associates (Note 10)
Share in net unrealized mark-to-market gains (losses) on AFS
investments of an associate (Note 10)
Retained earnings (Note 24)
Treasury stock at cost (Note 23)
P
=52,489,282
53,814,682
216,015
345,915
5,943,305
2,353,250
1,760,139
550,094
117,472,682
146,061,592
2014
Annual Report 2014
174
2014
Noncurrent Liabilities
Noncurrent portions of:
Obligations under finance lease
(Notes 13 and 22)
Long-term obligations on PDS (Note 15)
Trade payables (Notes 18 and 34)
Customers deposits (Note 20)
Asset retirement obligation (Note 21)
Deferred income tax liabilities (Note 31)
Net pension liability (Note 30)
Total Noncurrent Liabilities
Total Liabilities
175
117
TOTAL COMPREHENSIVE INCOME
ATTRIBUTABLE TO:
176
118
P
=25,534,811
=P22,266,092
=P29,400,585
=20,353,550
P
5,181,261
=25,534,811
P
=16,977,564
P
5,288,528
=22,266,092
P
=23,311,281
P
6,089,304
=29,400,585
P
(P
=1,577,075)
P
=14,627
6,746
P
=35,533
50,067
50,067
(P
=708,448)
149,154
149,154
(P
=315,444)
(158,519)
(158,519)
(P
=277,293)
18,253
18,253
(9,939,369)
18,380,620
(P
=1,496,305) P
=94,995,596
1,907,229
1,907,229
6,746
(9,939,369)
(314,213)
20,353,550
1,907,229
18,253
(158,519)
149,154
50,067
116,766
916,853
(P
=1,178,397) P
=107,944,154
1,405
(9,939,369)
(314,213)
25,534,811
1,914,372
13,068
(172,593)
149,154
64,539
(3,752,913)
(3,752,913)
916,853
(59,677)
(59,677)
P
=26,990,810 P
=134,934,964
5,181,261
7,143
(5,185)
(14,074)
14,472
(5,341)
Noncontrolling
Interest
Total
P
=25,622,139 P
=122,549,472
5,184,246
23,564,866

Consolidated Statements of Changes in Equity
Annual Report 2014
An n ual Report
P
=469,540
(314,213)
6,746
Treasury
Stock
(Note 23)
Total
(P
=1,295,163) P
=96,927,333
18,380,620
Aboitiz
Equity Ventures, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income
2014
800,087
=P6,911,044
=P5,376,176
Cumulative
Translation
Adjustment
(P
=14,534)
For the years ended December 31, 2014, 2013 and 2012
(Amounts in Thousands, Except Dividends Per Share Amounts)
(52,731)
(67,384)
135,660
(299,952)
(172,593)
(23,439)
(14,653)
(435,612)
149,154
(3,750)
(678,669)
(6,651)
(3,642,193)
1,405
1,993,384
(259,284)
(114,798)
(4,246,487)
151,913
Balances at January 1, 2014

Net income for the year
Other comprehensive income
Movement of net unrealized mark-tomarket gains on AFS investments
Movement in cumulative translation

adjustments
Actuarial losses on defined benefit

plans, net of tax
Share in movement in actuarial losses

on defined benefit plan of
associates
Share in cumulative translation

adjustment of associates
Share in movement in unrealized markto-market gains on AFS investments

of an associate
Total comprehensive income (loss) for the

year
Excess of acquisition cost over carrying
value of non-controlling interests
(Note 2)
Cash dividends - P
=1.80 per share
(Note 24)
Cash dividends paid to non-controlling

interests
Sale of treasury shares
Changes in non-controlling interests
Balances at December 31, 2014

=P5,694,600
1,914,372
64,539
Gain on
Dilution
=P5,376,176
(300,837)
Acquisition
of Noncontrolling
Interest
(Note 2)
(P
=1,262,862)
459,032
Share in
Actuarial Gains Actuarial Gains
(Losses) on
(Losses) on
Defined
Defined
Benefit Plans, Benefit Plans
net of tax of Associates
(Note 30)
(Note 9)
(P
=857,602)
(P
=156,925)
13,068
=23,964,674
P
6,181,964
30,146,638
Net
Unrealized
Mark-toMarket Gains
(Losses) on
AFS
Investments
=7,881
P
=21,027,470
P
5,180,767
26,208,237
Additional
Paid-in
Capital
=P6,110,957
Items that will not be reclassified to

consolidated statements of income:
Movement in actuarial gains (losses) on defined
benefit plans, net of tax
Share in movement in actuarial gains (losses) on
defined benefit plans of associates, net of tax
2013
2012
Capital Stock:
Common
(Note 20)
=P5,694,600
OTHER COMPREHENSIVE INCOME

Items that may be reclassified to
consolidated statements of income:
Share in movement in cumulative
translation adjustments of associates
(Note 10)
Share in movement in net unrealized mark-to-market
gains (losses) on AFS investments of an associate
(Note 10)
Movement in cumulative translation adjustments
Movement net unrealized mark-to-market gains (losses)
on AFS investments
=18,380,620
P
5,184,246
23,564,866
Share in Net
Unrealized
Mark toMarket Gain
(Losses) on
Share in
AFS
Cumulative
Translation Investments
of an
Retained
Adjustments
Associate
Earnings
of Associates
(Note 10)
(Note 24)
(Note 10)
(P
=295,546) (P
=3,403,534) P
=86,554,345
18,380,620
Excess of
Book Value
Over
Acquisition
Cost of an
Acquired
Subsidiary
(Note 9)
P
=469,540
NET INCOME ATTRIBUTABLE TO:

Attributable to equity holders of the parent
2014
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 and 2012

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY


177
119
178
120
=P6,110,957
=P5,694,600
=P6,110,957
=P5,694,600
Additional
Paid-in
Capital
=P6,110,957
Capital
Stock:
Common
(Note 20)
=P5,694,600
2014
An n ual Report

adjustments
Actuarial losses on defined benefit plans,
net of tax
Share in movement in actuarial losses on
defined benefit plan of associates
adjustment
of associates
of an associate
year
Acquisition of a subsidiary (Note 9)
Excess of acquisition cost over carrying value
of non-controlling interests (Note 2)
Cash dividends - P
=1.58 per share (Note 24)
interests

adjustments
Actuarial losses on defined benefit
plans, net of tax
Share in movement in actuarial losses
on defined benefit plan of
associates
of an associate
year
Excess of acquisition cost over carrying
value of non-controlling interests
(Note 2)
Cash dividends - P
=2.00 per share
(Note 24)
interests
Additional
Paid-in
Capital
=P6,110,957
Capital Stock:
Common
(Note 20)
=P5,694,600
=P5,376,176
Gain on
Dilution
=P5,376,176
=P5,376,176
Gain on
Dilution
=P5,376,176
P
=469,540
469,540
(96,931)
(P
=1,165,931)
(638,728)
Acquisition
of Noncontrolling
Interest
(Note 2)
(P
=527,203)
(P
=1,262,862)
Excess of
Book Value
Over
Acquisition
Cost of an
Acquired
Subsidiary
(Note 9)
P
=
P
=469,540
-3-
(P
=14,534)
118,229
118,229
Cumulative
Translation
Adjustment
(P
=132,763)
(P
=857,602)
(435,612)
(435,612)
Actuarial
Gains (Losses)
on Defined
Benefit Plans,
net of tax
(Note 30)
(P
=421,990)
(P
=156,925)
165,606
165,606
=4,851
P
(4,787)
(4,787)
(P
=132,763)
(89,058)
(89,058)
(P
=421,990)
(11,707)
(11,707)
(P
=322,531)
(50,658)
(50,658)
(P
=648,552)
(230,891)
(230,891)
Actuarial
Net
Share in
Gains
Share in
Unrealized
Cumulative
(Losses)
Actuarial
Mark-toTranslation
on Defined Gains (Losses)
Market
on Defined Adjustments
Benefit
Gains
of
Plans, Benefit Plans
(Losses) Cumulative
Associates
net of tax of Associates
on AFS Translation
(Note 10)
(Note 9)
(Note 30)
Investments Adjustment
=9,638
P
(P
=43,705) (P
=410,283)
(P
=271,873)
(P
=417,661)
(P
=295,546)
353,006
353,006
(11,043,744)
21,027,470
Retained
Earnings
(Note 24)
P
=76,570,619
21,027,470
P
=850,631
(266,293)
(266,293)
Share in Net
Unrealized
Mark toMarket Gain
(Losses)
on AFS
Investments
of an
Associate
(Note 10)
=P1,116,924
P
=76,570,619
(8,724,557)
23,964,674
Retained
Earnings
(Note 24)
=61,330,502
P
23,964,674
(P
=3,403,534) P
=86,554,345
(4,254,165)
(4,254,165)
Share in Net
Unrealized
Mark toMarket Gain
Share in
(Losses) on
Actuarial
Share in
AFS
Gains (Losses)
Cumulative
on Defined
Translation Investments
of an
Benefit Plans Adjustments
Associate
of Associates of Associates
(Note 10)
(Note 10)
(Note 9)
(P
=322,531)
(P
=648,552)
P
=850,631
=7,881
P
3,030
3,030
Excess of
Net
Book Value
Unrealized
Over
Mark-toAcquisition Acquisition of
Cost of an
Non- Market Gains
(Losses) on
Acquired
controlling
AFS
Interest
Subsidiary
(Note 2) Investments
(Note 9)
P
=469,540 (P
=1,165,931)
=4,851
P
-2-
3,030
(11,043,744)
(96,931)
16,977,564
(4,254,165)
353,006
165,606
(435,612)
118,229
(4,787)
(638,728)
(8,724,557)
23,311,280
469,540
(266,293)
(230,891)
(50,658)
(11,707)
(89,058)
(P
=1,295,163) P
=91,090,444
Treasury
Stock
(Note 23)
Total
(P
=1,295,163) P
=76,672,909
23,964,674
(P
=1,295,163) P
=96,927,333
Treasury
Stock
(Note 23)
Total
(P
=1,295,163) P
=91,090,444
21,027,470
(6,651)
(11,043,744)
(83,886)
22,266,092
(4,246,487)
459,032
135,660
(435,612)
151,913
(637,611)
(8,724,557)
29,400,583
469,540
(259,284)
(300,837)
(52,731)
(14,653)
(114,800)
(3,750)
Total
P
=94,498,068
30,146,638
(2,712,541)
(2,712,541)
704,807
704,807
P
=21,907,845 P
=112,998,289
1,117
6,089,303
7,009
(69,946)
(2,073)
(2,946)
(25,742)
1,037
Noncontrolling
Interest
P
=17,825,159
6,181,964
(3,930,354)
(3,930,354)
2,343,075
2,343,075
P
=25,622,139 P
=122,549,472
13,045
5,288,528
7,678
106,026
(29,946)
33,684
(9,681)
Noncontrolling
Interest
Total
P
=21,907,845 P
=112,998,289
5,180,767
26,208,237

Annual Report 2014

179
121
Consolidated Statements of Cash Flows

SEC FORM
20 - IS (INFORMATION
STATEMENT)
Aboitiz
Equity
Ventures, Inc.
and Subsidiaries
(Amounts
in Thousands)
ABOITIZ
EQUITY VENTURES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
-2-
180
122
CASH FLOWS FROM INVESTING ACTIVITIES

Cash dividends received (Note 10)
Disposal of a subsidiary, net of cash disposed (Note 9)
Interest received
Proceeds from sale of common shares and redemption of
preferred shares of associates (Note 10)
Proceeds from sale of:
Property, plant and equipment
AFS investments
(Forward)
P
=27,591,192
=27,094,789
P
=32,057,242
P
6,696,445
5,160,897
188,901
5,748,235
4,339,683
2,110,910
64,677
103,514
875,541
2,834
657,510
7,571,446
3,974,281
(1,670,536)
897
(7,244,241)
(394)
(10,596,577)
(1,826)
(13,322,144)
(638,878)
(15,958)
23
(591,136)
(1,294,659)
(47,291)
(481,460)
(24,103)
(30,956)
(1,008,811)
(5,001)
(89)
(20,884)
(338)
(964,600)
368,904
(562)
31,210,563
27,017,342
(27,095)
28,392,477
(5,034)
1,514,708
(560,495)
(3,923,828)
(1,488,493)
(1,124,068)
(4,544,845)
126,717
(118,974)
(2,600,976)
605,996
30,164,762
(40,000)
(3,020,302)
27,104,460
3,710,855
2,921,525
27,113,333
(40,000)
(1,729,652)
25,343,681
2,990,316
262,872
27,108,563
(40,000)
(1,595,124)
25,473,439
5,957,286
254,343
506,094
5,248,482
3,418,636
427,767
14,811,410
1,040,179
637,732
340,430
574,401
25,176
456
144,057
11,800
40,886
28,589
Additions to:
Property, plant and equipment and investment
properties (Notes 13 and 14)
Investments in and advances to associates (Note 10)
Land and improvements (Note 13)
AFS investments
Increase in other noncurrent assets
Acquisition through business combination, net of cash
acquired (Note 9)
Increase in intangible asset - service concession
rights (Note 15)
Cash flows used in investing activities

2013
2012
(P
=16,651,075)
(1,400,685)
(200,083)
(1,173)
(2,285,272)
(P=17,335,118)
(2,058,015)
(617,608)
(1,252,453)
(P=11,291,424)
(881,242)
(515,761)
(1,428,396)
(1,229,760)
(847,934)
(3,191,731)
(36,286)
(14,423,247)
(41,584)
(12,561,540)
(100,101)
(913,190)
22,788,325
28,976,900
5,819,121
(2,002,259)
(6,970,625)
3,666,100
(12,888,615)
(6,722,939)
(62,140)
(3,712,791)
(10,854,568)
(2,476,221)
(31,070)
1,281,534
(9,939,369)
(11,043,744)
(8,724,558)
(3,752,913)
(2,033,042)
(1,010,045)
916,853
1,663,025
(3,930,354)
(968,925)
(84,018)
(10,436,626)
(2,906,981)
(1,800,877)
(638,728)
(20,332,348)
14,344,238
2,345,515
4,227,901
19,138
42,144
CASH AND CASH EQUIVALENTS

AT BEGINNING OF YEAR
36,118,190
33,730,531
29,543,492
CASH AND CASH EQUIVALENTS

AT END OF YEAR (Note 4)
P
=50,481,566
=P36,118,190
=P33,730,531
CASH FLOWS FROM FINANCING ACTIVITIES

Proceeds from availment of long-term debts - net of
transaction costs (Note 19)
Payments of:
Obligations under finance lease (Note 21)
Payable to preferred shareholder of a subsidiary
Net proceeds from (settlements of) bank loans
Cash dividends paid to equity holders of the parent
(Note 25)
Cash dividends paid and other changes to non-controlling
interest
Interest paid
Acquisition of non-controlling interests (Note 9)
Re-issuance of treasury shares
Net cash flows from (used in) financing activities
NET INCREASE IN CASH
AND CASH EQUIVALENTS
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS
(40,862)
An n ual Report
CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for:
Interest expense (Note 35)
Depreciation and amortization (Note 27)
Net unrealized foreign exchange losses (gains)
Provision for decline in value of project costs and
various assets
Provision for impairment loss
on investments and advances (Note 10)
Unrealized mark-to-market losses (gains) on
derivatives
Gain on sale of: (Notes 9, 10 and 29)
Investment in subsidiary and associate
Property, plant and equipment
AFS investments
Interest income
Net unrealized valuation gain on investment
property
Dividend income (Note 29)
Gain on remeasurement in step acquisition (Note 9)
Write-off of goodwill on investment (Note 12)
Gain on redemption of shares of an associate
(Note 10)
Operating income before working capital changes
Decrease (increase) in:
Trade and other receivables
Inventories
Other current assets
Increase (decrease) in:
Trade and other payables (Note 9)
Customers deposits
Net cash generated from operations
Service fees paid
Income and final taxes paid
Net cash flows from operating activities
2014
2014
2014

2013
2012
123
Investor Information
Head Office: NAC Tower, 32nd Street, Bonifacio Global City,

1634 Taguig, Metro Manila , Philippines

Tel (632) 886.2800 | Fax (632) 886.2407
Cebu Office:

Aboitiz Corporate Center, Gov. Manuel A. Cuenco Avenue

Kasambagan, 6000 Cebu City, Philippines
Tel (6332) 411.1800 | Fax (6332) 231.4037
Common Stock
The Companys common stock is listed and traded on the Philippine Stock Exchange.
Stockholders Meeting
The Companys regular stockholders meeting is held on the third Monday of May of every
year.
Stockholder Services and Assistance
The Hongkong and Shanghai Banking Corporation, Ltd. (HSBC) serves as the Companys
stock transfer agent registrar.
For matters concerning dividend payments, account status, lost or damaged stock
certificates, change of address, please write or call:
THE HONGKONG AND SHANGHAI BANKING CORPORATION, LIMITED
7/F HSBC Centre, 3058 Fifth Avenue, West Bonifacio Global City
Taguig City 1634, Philippines
Telephone No.: (632) 581.7594 | (632) 581.7524
Fax No.: (632) 755.5548
Contact Person:
Mr. Mike Sison - stkmnl@hsbc.com.ph
Ms. Rosh Oliva - stkmnl@hsbc.com.ph
AEV welcomes inquiries from institutional investors, analysts, and the financial community.
Please write or call:
Investor Relations
Mr. Dave Michael Valeriano
Mr. Aristo de Borja
Tel. No. (63-2) 886-2423
Fax No. (63-2) 817-3560
Email: aev_investor@aboitiz.com
Website: www.aboitiz.com

Audited Consolidated
Financial Statements
The Audit Committee Report to the Board of Directors
Membership
As of December 31, 2014, the Board Audit Committee is composed of five (5) members, three (3) of whom are independent directors.
I, Carlos C. Ejercito, Independent Director and Chair of the Committee is ably assisted by Romeo L. Bernardo (Independent Director),
Alfonso A. Uy (Independent Director), Mikel A. Aboitiz (Non-Executive Director) and Antonio R. Moraza (Executive Director).
Meetings
There were four (4) regular Committee meetings held during the yearMarch 4, May 6, July 22 and October 28one (1) special
meeting on July 30, and two (2) joint meetingsJune 2 and Dec 11with the Board Risk and Reputation Management Committee.
Also present in these meetings is the Group Internal Audit Head, the Chief Reputation and Risk Management Officer, and by invitation,
the Aboitiz Power Chief Financial Officer and the AP Controller.
Financial Reports
On a high level basis, the Committee reviewed, discussed, and endorsed for the approval of the Board the quarterly unaudited
consolidated financial statements and the annual audited financial statements of Aboitiz Power Corporation and Subsidiaries. Included
in the review are the Management Discussion and Analysis of Financial Condition and Results of Operations after these have been
presented and discussed with management, accounting and the companys independent external auditor, SyCip Gorres Velayo & Co.
(SGV)a member practice of Ernst & Young (EY) in the Philippines.
The activities of the Audit Committee were performed in the following context:
That management has the primary responsibility for the financial statements and the financial reporting process; and
T hat the companys independent external auditor is responsible for expressing an opinion on the conformity of the Companys
audited financial statements with Philippine Financial Reporting Standards.
Independent Auditors
On July 22, 2014, the Board Audit Committee endorsed the re-appointment of SyCip Gorres Velayo & Co. (SGV) as the independent
external auditor for the company. The overall scope and audit plan of SGV were reviewed and approved during the October 28, 2014
regular Board Audit Committee meeting. The terms of engagement which covers audit-related services provided by SGV and its related
fees were also reviewed and found to be reasonable.
The results of the SGV audits and its assessment of the overall quality of the financial reporting process were discussed. SGV presented
the effects of changes in relevant accounting standards and presentation of financial statements that impact on the reported results.
These matters were covered during the first Board Audit Committee meeting held the following year on March 5, 2015.
The delegation to the Board of Directors of the appointment of the Companys external auditor was largely upon the recommendation
of the Board Audit Committee.
126
Also, in the review of non-audit services provided by independent auditors, the Committee unanimously concurred/ratified the
opinion that there is no conflict of interest and that the work that Ernst & Young (Indonesia) have been contracted to do for the
Company is compatible with the general standard of independence for auditors imposed by relevant regulations.
Internal Auditors
The Group Internal Audit (GIA) takes the lead in setting the standards, initiatives and overall direction of the group-wide resident
internal audit teams deployed to the different business units. It remains to be the single point of contact for the Board Audit
Committee. The restructuring of the internal audit organization has proven to be a worthwhile endeavour as scope and coverage of
audits have increased with resident audit teams being able to specialize in areas of business covered by their teams.
All technical audits related to information systems and technology are handled by the group internal auditors until such time that
competencies to handle such audits can be transferred to the resident audit teams. Focus areas reviewed in 2014 include information
technology general controls and software applications reviews.
The Committee reviewed and approved the annual audit program for the year which also covers the adequacy of resources,
qualifications and competency of the staff and independence of the internal auditor.
With reference to the IPPF Attribute Standard 1100 which states that The Internal Audit Activity must be independent, and internal
auditors must be objective in performing their work, the Committee confirms that the internal auditors conducted its responsibilities
objectively and in an unbiased manner. The Committee further confirms that, to the best of its knowledge and belief, that the
auditors have no personal or other impairments that prevent them from objectively planning, conducting, reporting, or otherwise
participating and reaching independent conclusions in their audit assignments in 2014. Internal audit is organizationally positioned to
be independentadministratively reporting to the President and Chief Executive Officer and functionally reporting to the Board Audit
Committee.
Based on the information from the results of the audits conducted in 2014 for Aboitiz Power Corporation, its subsidiaries and alliances,
with the contribution provided by management and other key leaders on the issues raised to their attention, Internal Audit believes
that, overall there is reasonable assurance that the existing system of internal controls allows for a generally adequate management of
identified risks and effectively supports the improvement of the management of the Company as a whole.
Review of the Audit Charter
The Committee reviewed and assessed the current audit charter in its meeting held October 28, 2014 and found it adequate. No
modification needed.
Self-Assessment
The Committee conducted its annual self-assessment in accordance with the guidelines of SEC Memo Cir. No. 4, series of 2012. The
assessment result showed that it fully complied with the requirements set forth in the Audit Charter and met the necessary and most
important requirements set by global standards and best practices.
Risk Management
The Committee had two (2) joint meetings with the Board Risk and Reputation Management Committee in 2014 where the updated
results of the Risk Management Plan validation conducted by GIA and the resident audit teams were presented. Considering the
dynamic nature of risks, this closed-looped process from risk identification to risk treatment validation should be ongoing and continual
to ensure that risk treatment activities that the business units commit to do are being done. The ultimate value of this process is to
assist the business units in enhancing their capability to manage and monitor its top risks.
It is also in these joint meetings that the members of the Audit Committee are apprised of the top key strategic risks consequential to
the Companys ability to execute its strategies and achieve its business objectives for the following year. High-level risk exposures are
presented and discussed as these can affect shareholder value and ultimately the viability of the company. The significant potential
impact of these strategic risks warrants a more focused attention from the board and its directors.
As in previous years, the Committee continues to monitor action plans and commitments developed by management to address audit
issues and to ensure that proposed solutions are workable, strategic and sustainable.
Finally, the Committee has undertaken its activities to ensure that it continues to deepen its focus on the integrity of financial
reporting, effectiveness of internal controls, risk management, governance and compliance within the Aboitiz Power group of
companies.
In behalf of the Committee,
Carlos C. Ejercito
Chairman, Independent Director
An n ual Report
The Board Audit Committees roles and responsibilities are embodied in the Board Audit Committee Charter approved by the Board of
Directors. Its primary function is to provide assistance to the Board in fulfilling its oversight responsibility to the shareholders relating
to: (a) the quality and integrity of the Companys accounting, auditing, legal, ethical and regulatory compliance; (b) risk management;
(c) financial reporting practices; and (d) corporate governance. Any proposed changes to the Audit Committee Charter are referred to
the Board for approval.
2014
The Board Audit Committee Report to the Board of Directors
127
128
An n ual Report
Annual Report 2014
133
134
2014
Statement of Managements
Responsibility for Financial Statements
129
Independent Auditors Report

6760 Ayala Avenue
1226 Makati City
Philippines

6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 891 0307

Fax: (632) 819 0872
ey.com/ph
Tel: (632) 891 0307

Fax: (632) 819 0872
ey.com/ph
SEC
FORM
BOA/PRC Reg.
No.
0001,20 - IS (INFORMATION STATEMENT)


6760 Ayala Avenue
1226 Makati City
Philippines
Tel: (632) 891 0307

Fax: (632) 819 0872
ey.com/ph

-2INDEPENDENT AUDITORS REPORT

Opinion
In our opinion, the consolidated financial statements present fairly, in all material respects, the
financial position of Aboitiz Power Corporation and Subsidiaries as at December 31, 2014 and 2013,
and their financial performance and their cash flows for each of the three years in the period ended
December 31, 2014 in accordance with Philippine Financial Reporting Standards.

Aboitiz
Power
Corporation
We have
audited
the accompanying consolidated financial statements of Aboitiz Power Corporation
32nd
Street,
Bonifacio
Global
City the consolidated balance sheets as at December 31, 2014 and
and Subsidiaries, which
comprise
Taguig
City,
Metro
Manila
Philippines
of changes in equity and statements of cash flows for each of the three years in the period ended

32ndSYCIP
Street,
Bonifacio
Global
City
GORRES
VELAYO
& CO.
Taguig City, Metro Manila
Philippines
information.
We have audited the accompanying consolidated financial statements of Aboitiz Power Corporation
Managements
Responsibility
forthe
theconsolidated
Consolidatedbalance
Financialsheets
Statements
and
Subsidiaries, which
comprise
as at December 31, 2014 and
is responsible
for the preparation
andfor
fair
presentation
of these
of Management
changes in equity
and statements
of cash flows
each
of the three
yearsconsolidated
in the periodfinancial
ended
statements
in
accordance
with
Philippine
Financial
Reporting
Standards,
and
for
internal control
December 31, 2014, and a summary of significant accounting policies and othersuch
explanatory
information.
We have
audited
the
accompanying consolidated financial statements of Aboitiz Power Corporation
Leovina
Mae V.
Chu
and Partner
Subsidiaries, which comprise the consolidated balance sheets as at December 31, 2014 and
CPA
Certificate
No. 99910statements of income, statements of comprehensive income, statements
2013,
and
the consolidated
SEC Accreditation
No.statements
1199-A (Group
A), flows for each of the three years in the period ended
of changes
in equity and
of cash
March
15,
2012,
valid
until
March
31, 2015 accounting policies and other explanatory
December 31, 2014, and a summary of significant
information.

as standards
management
determines is necessary to enable the preparation of consolidated financial
require that we comply with ethical requirements and plan and perform the audit to
statements
that
are
free from about
material
misstatement,
whether
due tostatements
fraud or error.
obtain reasonable assurance
whether
the consolidated
financial
are free from

January 5,
2015, valid until
4, 2018 Financial Statements
Managements
Responsibility
for January
the Consolidated
March 10, 2015
control. performing
An audit also
includes evaluating
appropriateness
of accounting
policies
used
Aninternal
audit involves
procedures
to obtainthe
audit
evidence about
the amounts
and disclosures
the reasonableness
of accounting
estimates
made by management,
as well
in and
the consolidated
financial
statements.
The procedures
selected depend
on as
theevaluating
auditorsthe
overall
presentation
of
the
consolidated
financial
statements.
internal control. An audit also includes evaluating the appropriateness of accounting Annual
policies
used
Report
2014
standards require that we comply with ethical requirements and plan and perform the audit to
obtain reasonable assurance about whether the consolidated financial statements are free from
135
130
136
in the consolidated financial statements. The procedures selected depend on the auditors
internal
control. An audit also includes evaluating the appropriateness of accounting policies used
Aboitiz
Power Corporation
An n ual Report
2014
Our
is to
expressstatements.
an opinionThe
on these
consolidated
statements
based on our
in responsibility
the consolidated
financial
procedures
selectedfinancial
depend on
the auditors
audits.
We conducted
ourassessment
audits in accordance
with
Philippine
Standardsofon
Those
judgment,
including the
of the risks of
material
misstatement
theAuditing.
consolidated
standards
that whether
we comply
ethical
requirements
planrisk
and
perform the
audit
to
financial require
statements,
duewith
to fraud
or error.
In makingand
those
assessments,
the
auditor
considers
internalassurance
control relevant
the entitys
preparation and
fair presentation
thefree from
obtain
reasonable
about to
whether
the consolidated
financial
statementsofare
consolidated
financial statements in order to design audit procedures that are appropriate in the
material
misstatement.
131
Independent Auditors Report on Supplementary Schedules
Aboitiz
PowerPOWER
Corporation
and Subsidiaries
ABOITIZ
CORPORATION
AND SUBSIDIARIES
Consolidated
Balance
Sheets
CONSOLIDATED BALANCE SHEETS
BOA/PRC Reg.
Reg. No.
No. 0001,
0001,
BOA/PRC
December 28,
28, 2012,
2012, valid
December
valid until
until December
December31,
31,2015
2015
SECAccreditation
Accreditation No.
No. 0012-FR-3
SEC
0012-FR-3(Group
(GroupA),
A),
November
15,
2012,
valid
until
November
16,
2015

ON SUPPLEMENTARY SCHEDULES
Current Assets
Cash and cash equivalents (Note 5)
Trade and other receivables (Note 6)
Derivative assets (Note 35)
Inventories (Note 7)
Other current assets (Note 8)
Total Current Assets
Noncurrent Assets
Investments in and advances to associates (Note 10)
Property, plant and equipment (Note 13)
Intangible asset - service concession rights (Note 14)
Investment properties
Derivative assets - noncurrent portion (Note 35)
Available-for-sale (AFS) investments - net of impairment of
P
=5,254
Goodwill (Note 12)
Net pension assets (Note 28)
Deferred income tax assets (Note 30)
Other noncurrent assets (Note 15)
Total Noncurrent Assets
audited
accordance with
Philippine Standards
on Auditing, of
theAboitiz
consolidated
We We
havehave
audited
theinaccompanying
consolidated
financial statements
Power financial
Corporation
of which
Aboitizcomprise
Power Corporation
and Subsidiaries
includedasinatthis
Form 17-A
have
issued
and statements
Subsidiaries,
the consolidated
balance sheets
December
31,and
2014
and
our
report
thereon
dated
March
10,
2015.
Our
audits
were
made
for
the
purpose
of
forming
an
opinion in
onequity
the basic
statements
a whole.
listed
in the
Indexended
to
of changes
andfinancial
statements
of cashtaken
flowsasfor
each ofThe
theschedules
three years
in the
period
Financial
Statements
and
Supplementary
Schedules
are
the
responsibility
of
the
Companys
management. These schedules are presented for purposes of complying with the Securities
information.
Regulation Code Rule 68, as amended (2011) and are not part of the basic financial statements.
These schedules have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, fairly state in all material respects the financial data
required to be set forth therein in relation to the basic financial statements taken as a whole.
as management
is necessary to enable the preparation of consolidated financial
SYCIP GORRESdetermines
VELAYO & CO.
TOTAL ASSETS

BIR Accreditation
No. 08-001998-96-2015,
An audit
involves performing
procedures to obtain audit evidence about the amounts and disclosures
January
5,
2015,
valid
until
January 4,
2018
in the consolidated financial statements.
The
procedures selected depend on the auditors
=P31,383,499
13,037,999
30,900
2,841,387
1,736,966
49,030,751
24,816,278
119,646,640
3,400,354
28,300
59,044
25,330,356
106,754,751
3,663,275
13,300
3,620
1,094,687
79,000
243,756
10,663,253
160,034,932
6,654
806,090
10,468
519,689
7,803,483
144,908,066
P
=216,761,021
=193,938,817
P
P
=103,000
=
P
1,388,991
1,971,739
832,877
780,905
40,000
12,778,001
604,158
P
=16,885,889
40,000
15,075,584
23
348,145
17,077,534
(Forward)
139
140
An n ual Report
Current Liabilities
Bank loans (Note 17)
Current portions of:
Finance lease obligation (Note 36)
Long-term obligation on power distribution system
(Note 14)
Trade and other payables (Note 16)
Derivative liabilities (Note 35)
Income tax payable (Note 30)
Total Current Liabilities
Our Leovina
responsibility
to express an opinion on these consolidated financial statements based on our
Mae V.isChu
Partner
audits.
We conducted our audits in accordance with Philippine Standards on Auditing. Those
CPA Certificate
No. 99910
standards
require that
we comply with ethical requirements and plan and perform the audit to
SECreasonable
Accreditation
No. 1199-A
(Group
A), the consolidated financial statements are free from
obtain
assurance
about
whether
March
15,
2012,
valid
until
March
31, 2015
132
P
=40,231,875
12,332,513
53,500
2,168,832
1,939,369
56,726,089
LIABILITIES AND EQUITY
December 31
2013
ASSETS
The The
Stockholders
andand
thethe
Board
of of
Directors
Stockholders
Board
Directors
Aboitiz
Power
Corporation
Aboitiz
Power
Corporation
32nd32nd
Street,
Bonifacio
Global
City
Street,
Bonifacio
Global
City
Taguig
City,
Metro
Manila
Taguig City, Metro Manila
Philippines
Philippines
March 10, 2015
internal control. An audit also includes evaluating the appropriateness of accounting Annual
policies
used
Report
2014
2014
2014
SyCip
Gorres
Velayo
& Co. Tel:
Tel:
(632)
891
0307
SyCip
Gorres
Velayo
& Co.
(632)
891
0307
Ayala
Avenue
Fax:
(632)
8190872
0872
67606760
Ayala
Avenue
Fax:
(632)
819
Makati
ey.com/ph
12261226
Makati
CityCity
ey.com/ph
Philippines
Philippines
Consolidated Balance Sheets
133

Aboitiz Power Corporation and Subsidiaries

ABOITIZ POWER CORPORATION AND SUBSIDIARIES
CONSOLIDATED
STATEMENTS
OFAmounts)
INCOME
(Amounts
in Thousands, Except
Earnings Per Share
(Amounts in Thousands, Except Earnings Per Share Amounts)
Noncurrent Liabilities
Noncurrent portions of:
Finance lease obligation (Note 36)
Long-term obligation on power distribution system
(Note 14)
Customers deposits (Note 19)
Asset retirement obligation (Note 20)
Net pension liabilities (Note 28)
Deferred income tax liabilities (Note 30)
Total Noncurrent Liabilities
Total Liabilities
Equity Attributable to Equity Holders of the Parent
Capital stock (Note 21a)
Additional paid-in capital (Note 21a)
Share in net unrealized valuation gains on AFS investments of an
associate (Note 10)
Cumulative translation adjustments (Note 35)
Share in cumulative translation adjustments of associates
(Note 10)
Actuarial losses on defined benefit plans (Note 28)
Share in actuarial losses on defined benefit plans of associates
(Note 10)
Acquisition of non-controlling interests
Excess of cost over net assets of investments (Note 9)
Retained earnings (Note 21b)
Appropriated
Unappropriated (Notes 10 and 21c)
Non-controlling Interests
Total Equity (Note 21c)
TOTAL LIABILITIES AND EQUITY
2014
OPERATING REVENUES
Sale of power (Notes 22 and 32):
Generation
Distribution
Retail electricity supply
Technical, management and other fees (Note 33)
P
=41,394,084
52,489,282
=P22,455,062
54,421,858
216,015
5,686,490
2,353,250
405,854
1,249,717
103,794,692
223,865
5,138,155
2,008,669
452,807
910,110
85,610,526
120,680,581
102,688,060
7,358,604
12,588,894
7,358,604
12,588,894
119,087
38,091
88,187
(24,511)
(375,489)
(519,854)
(388,557)
(694,746)
OTHER INCOME (EXPENSES)

Other income (expenses) - net (Note 29)
(48,589)
(259,147)
(421,260)
(31,815)
(259,147)
INCOME BEFORE INCOME TAX
20,900,000
52,581,755
91,962,092
4,118,348
96,080,440
68,991,854
87,628,763
3,621,994
91,250,757
P
=216,761,021
=193,938,817
P
OPERATING EXPENSES
Cost of purchased power (Note 23)
Cost of generated power (Note 24)
General and administrative (Note 25)
Depreciation and amortization (Notes 13, 14 and 15)
Operations and maintenance (Note 26)
FINANCIAL INCOME (EXPENSES)
Interest income (Notes 5 and 33)
Interest expense and other financing costs
(Notes 17, 18 and 34)
PROVISION FOR INCOME TAX (Note 30)

NET INCOME
ATTRIBUTABLE TO:
EARNINGS PER COMMON SHARE (Note 31)

Basic and diluted, for income for the year
attributable to ordinary equity holders of the
parent
134
142
Annual Report 2014
141

2013
2012
P
=36,877,070
39,975,961
9,702,714
203,641
86,759,386
P
=39,436,267
28,067,236
4,372,597
179,067
72,055,167
P
=46,031,304
15,849,591
272,270
62,153,165
29,834,149
21,037,658
5,458,309
4,643,300
3,435,211
64,408,627
24,715,315
17,642,484
4,073,550
3,875,299
2,271,230
52,577,878
13,184,697
18,721,284
3,424,696
3,516,396
2,850,331
41,697,404
471,915
413,795
928,913
(5,994,097)
(5,522,182)
(5,343,728)
(4,929,933)
(7,001,842)
(6,072,929)
4,009,488
591,925
4,601,413
6,474,370
(1,083,764)
5,390,606
9,939,763
1,983,606
11,923,369
21,429,990
19,937,962
26,306,201
3,424,089
526,625
1,390,567
P
=18,005,901
P
=19,411,337
P
=24,915,634
P
=16,705,184
1,300,717
P
=18,005,901
P
=18,576,845
834,492
P
=19,411,337
P
=24,425,708
489,926
P
=24,915,634
P
=2.27
P
=2.52
P
=3.32
An n ual Report
December 31
2014
2013
2014
-2-
135

CONSOLIDATED
STATEMENTS OF COMPREHENSIVE INCOME
(Amounts
in Thousands)

For the years ended December 31, 2014, 2013 and 2012
Dividends Per Share Amounts)
136
144
(1,141,673)
341,958
P
=96,080,440
(1,141,673)
341,958
P
=4,118,348
P
=52,581,755
P
=20,900,000
(P
=421,260)
(P
=259,147)
(P
=48,589)
(P
=519,854)
(P
=375,489)
P
=38,091
P
=12,588,894
P
=7,358,604
P
=119,087
(12,215,283)
(12,215,283)
18,265,941
(421,260)
(16,774)
1,296,069
16,705,184
(20,900,000)
20,900,000
(421,260)
(16,774)
(16,774)
174,892
13,068
62,602
30,900
170,244
(4,648)
174,892
13,068
13,068
62,602
An n ual Report
143
2014
Annual Report 2014
=23,990,873
P
488,872
=24,479,745
P
=18,951,123
P
764,039
=19,715,162
P
P
=16,969,872
1,296,069
P
=18,265,941
(435,889)
=24,479,745
P
303,825
=19,715,162
P
260,040
P
=18,265,941
(34,220)
(303,432)
62,602
153,470
(6,514)
59,659
(16,774)
(27,706)
(363,091)
170,244
(401,669)
607,257
106,570
(300,836)
459,032
30,900
13,068
(112,177)
Total
P
=91,250,757
18,005,901
145,334

Share in net unrealized valuation
gains on AFS investments of
an associate
adjustments
Share in movement in cumulative
translation adjustment of
associates
Actuarial gains on defined benefit
plans, net of tax
Share in actuarial losses on defined
benefit plans of associates
Total comprehensive income (loss)
for the year
Acquisition of a subsidiary (Note 8)
Appropriation during the year
Cash dividends - P
=1.66 a share
(Note 21b)
Cash dividends paid to noncontrolling interests
Change in non-controlling interests
62,602
Retained Earnings
Appropriated Unappropriated Non-controlling
(Note 21b)
(Note 21b)
Interests
P
=
P
=68,991,854
P
=3,621,994
16,705,184
1,300,717
11,344
Movement in
Cumulative
Translation
Adjustments
(P
=24,511)
2,891
Share in
Actuarial Actuarial Losses
Losses on
on Defined
Excess of cost
Defined
Benefit Plans
Acquisition of over net assets
Benefit Plans
of Associates Non-controlling of investment
(Note 28)
(Note 10)
Interests
(Note 9)
(P
=694,746)
(P
=31,815)
(P
=259,147)
P
=
30,900
Share in
Cumulative
Translation
Adjustments
of Associates
(Note 10)
(P
=388,557)
=24,425,708
P
489,926
=24,915,634
P
Capital Stock
Additional
(Note 21a) Paid-in Capital
P
=7,358,604
P
=12,588,894
ATTRIBUTABLE TO:
=18,576,845
P
834,492
19,411,337
Attributable to Equity Holders of the Parent
Other comprehensive income that will not be

reclassified to profit or loss in subsequent
periods:
Actuarial gains (losses) on defined benefit
plans, net of tax (Note 28)
Share in actuarial gains (losses) on defined
benefit plans of associates, net of tax
(Note 10)
Net other comprehensive loss not to be
periods
Total other comprehensive income (loss) for
the year, net of tax
TOTAL COMPREHENSIVE INCOME
P
=16,705,184
1,300,717
18,005,901
Share in Net
Unrealized
Valuation
Gains on AFS
Investments of
an Associate
(Note 10)
P
=88,187
OTHER COMPREHENSIVE INCOME

(LOSS)
Other comprehensive income that may be
periods:
Share in net unrealized valuation gains on AFS
investments of an associate (Note 10)
adjustments
Share in movement in cumulative translation
adjustment of associates (Note 10)
Net other comprehensive income (loss) to be
periods
2012
FOR THE YEARS ENDED DECEMBER 31, 2014, 2013 AND 2012
NET INCOME ATTRIBUTABLE TO:


2013

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
2014
30,900
in Thousands,
Except
SEC FORM 20(Amounts
- IS (INFORMATION
STATEMENT)
137
138
Annual Report 2014
145
146
=12,588,894
P
=7,358,604
P
=12,588,894
P
=7,358,604
P
Additional
Paid-in Capital
=12,588,894
P
Capital Stock
(Note 21a)
=7,358,604
P
Additional
Paid-in Capital
=12,588,894
P
Capital Stock
(Note 21a)
=7,358,604
P
2014
An n ual Report

Net income for the year, as restated
investments of an associate
adjustments
Actuarial losses on defined benefit plans, net
of tax
Share in actuarial losses on defined benefit
plans of associates
year
Cash dividends - =P1.54 a share (Note 21b)
interests

investments of an associate
adjustments
Actuarial losses on defined benefit plans, net
of tax
Share in actuarial losses on defined benefit
plans of associates
Total comprehensive income (loss)
for the year
Cash dividends - =P1.66 a share (Note 21b)
interests
=85,296
P
11,344
11,344
Share in Net
Unrealized
Valuation
Gains on AFS
Investments of
an Associate
(Note 10)
=73,952
P
=88,187
P
2,891
2,891
Share in Net
Unrealized
Valuation
Gains on AFS
Investments of
an Associate
(Note 10)
=85,296
P
-3-
(P
=388,557)
459,032
459,032
(P
=694,746)
(292,638)
(P
=169,845)
(112,177)
(112,177)
Movement in
Cumulative
Translation
Adjustments
(P
=57,668)
(P
=847,589)
(300,836)
(300,836)
Share in
Cumulative
Translation
Adjustments
of Associates
(Note 10)
(P
=546,753)
(292,638)
Actuarial
Losses on
Defined
Benefit Plans
(Note 28)
(P
=402,108)
(P
=402,108)
(26,652)
(26,652)
Actuarial
Losses on
Defined
Benefit Plans
(Note 28)
(P
=375,456)
(P
=24,511)
145,334
145,334
Movement in
Cumulative
Translation
Adjustments
(P
=169,845)
Share in
Cumulative
Translation
Adjustments
of Associates
(Note 10)
(P
=847,589)
-2-
(P
=91,474)
(6,514)
(6,514)
Share in
Actuarial Losses
on Defined
Benefit Plans
of Associates
(Note 10)
(P
=84,960)
(P
=31,815)
59,659
59,659
Share in
Actuarial Losses
on Defined
Benefit Plans
of Associates
(Note 10)
(P
=91,474)
(P
=259,147)
Acquisition of
Non-controlling
Interests
(P
=259,147)
(P
=259,147)
Acquisition of
Non-controlling
Interests
(P
=259,147)
=62,630,292
P
24,425,708
(11,332,251)
Unappropriated
Retained
Earnings
(Note 21b)
=49,536,835
P
24,425,708
=68,991,854
P
18,576,845
(12,215,283)
Unappropriated
Retained
Earnings
(Note 21b)
=62,630,292
P
18,576,845
(431,308)
(114,707)
=1,566,040
P
488,872
(1,054)
Non-controlling
Interests
=1,623,183
P
489,926
(612,229)
1,904,144
=3,621,994
P
764,039
(70,453)
Non-controlling
Interests
=1,566,040
P
834,492
(431,308)
(114,707)
=82,458,963
P
24,479,745
(11,332,251)
(6,514)
(27,706)
(300,836)
(112,177)
11,344
Total
=69,857,484
P
24,915,634
(612,229)
1,904,144
=91,250,757
P
19,715,162
(12,215,283)
59,659
(363,091)
459,032
145,334
2,891
Total
=82,458,963
P
19,411,337

139


Consolidated
of Cash FlowsAND SUBSIDIARIES
ABOITIZ Statements
POWER CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS
-2-
140
CASH FLOWS FROM INVESTING ACTIVITIES

Cash dividends received (Note 10)
Interest received
Proceeds from redemption of shares of associates
(Note 10)
Net collection of advances to associates (Note 10)
Proceeds from sale of property, plant and equipment
Additions to:
Property, plant and equipment (Note 13)
Intangible assets - service concession rights
(Note 14)
P
=21,429,990
P
=19,937,962
P
=26,306,201
5,994,097
5,343,728
7,001,842
4,630,515
3,861,129
3,509,974
563,278
188,018
26,000
12,787
14,055
2,078,138
85,051
14,170
819,024
(1,658,983)
6,422
2,834
568,125
897
(395)
368,904
(1,826)
(964,600)
(4,792)
(27,087)
(4,904)
(13,195)
(15,000)
(471,915)
(4,009,488)
28,333,914
(1,323)
(413,795)
(6,474,370)
24,411,987
3,616
(928,913)
(9,939,763)
25,090,507
(362,479)
477,019
(202,403)
(2,181,712)
(311,931)
(680,254)
(1,379,002)
203,211
68,361
(2,834,127)
548,335
25,960,259
(2,482,280)
(40,000)
23,437,979
3,700,017
898,974
25,837,081
(1,383,938)
(40,000)
24,413,143
1,769,105
240,166
25,992,348
(1,084,609)
(40,000)
24,867,739
4,618,730
390,638
4,241,994
364,490
13,977,589
953,637
31,599
101,835
17,406
323,717
25,000
10,222
573,236
151,947
412
(15,003,744)
(15,618,273)
(9,856,235)
(36,286)
(41,694)
(48,920)
Increase in other noncurrent assets

Additional investments in associates (Note 10)
Additional AFS investments
Acquisitions through business combinations, net of
cash acquired (Note 9)
Proceeds from sale of AFS
Net cash flows from (used in) investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from availment of long-term debt - net of
transaction costs (Note 18)
Cash dividends paid (Note 21b)
Payments of:
Long-term debt (Note 18)
Finance lease obligation
Net availments (payments) of bank loans (Note 17)
Interest paid
Payments to a preferred shareholder of a subsidiary
Net cash flows used in financing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
EFFECT OF EXCHANGE RATE CHANGES
ON CASH AND CASH EQUIVALENTS

2013
2012
(P
=968,892)
(P
=1,233,808)
(56,250)
(1,648)
(200)
(1,182,366)
200
(12,979,595)
217,862
(11,502,024)
4,516,210
20,634,755
(12,215,283)
20,797,150
(13,834,176)
1,540,280
(9,713,358)
(854,220)
(6,970,625)
103,000
(949,131)
(1,367,428)
(1,618,932)
(8,965,920)
(6,722,939)
(2,332,000)
(612,229)
(513,562)
(62,140)
(12,245,816)
(9,156,183)
(2,476,221)
(337,600)
(625,748)
(1,255,161)
(31,070)
(22,055,061)
8,839,452
665,303
7,328,888
8,924
39,703
CASH AND CASH EQUIVALENTS AT

BEGINNING OF YEAR
31,383,499
30,678,493
23,391,561
CASH AND CASH EQUIVALENTS AT

END OF YEAR (Note 5)
P
=40,231,875
P
=31,383,499
P
=30,678,493
(41,956)
(Forward)
Annual Report 2014
2014
(P
=1,915,107)
(2,500)
An n ual Report
CASH FLOWS FROM OPERATING ACTIVITIES

Adjustments for:
Interest expense and other financing costs
(Note 34)
Depreciation and amortization
(Notes 13 and 14)
Provision for impairment losses on receivables
(Note 25)
Net unrealized foreign exchange losses (gains)
Write-off of project costs and other assets
Amortization of software (Note 15)
Impairment loss on AFS and investment in an
associate (Note 10)
Unrealized fair valuation losses (gains) on
derivatives
Impairment loss on goodwill (Note 12)
Gain on remeasurement in step acquisition
(Note 9)
Gain on redemption of shares of associates
(Note 29)
Loss (gain) on sale of property, plant and
equipment
Fair valuation gain on investment property
Interest income (Notes 5 and 33)
Operating income before working capital changes
Decrease (increase) in:
Trade and other receivables
Inventories
Other current assets
Increase (decrease) in:
Trade and other payables
Customers deposits
Net cash generated from operations
Income and final taxes paid
Service fees paid (Note 14)
Net cash flows from operating activities
2012
147
148
2014

2014
2013
141
Investor Information
Head Office: NAC Tower, 32nd Street, Bonifacio Global City,

1634 Taguig, Metro Manila , Philippines

Tel (632) 886.2800 | Fax (632) 886.2407
Cebu Office: Aboitiz Corporate Center, Gov. Manuel A. Cuenco Avenue

Kasambagan, 6000 Cebu City, Philippines

Tel (6332) 411.1800 | Fax (6332) 231.4037
Common Stock
The Companys common stock is listed and traded on the Philippine Stock Exchange.
Stockholders Meeting
The Companys regular stockholders meeting is held on the third Monday of May of every year.
Stockholder Services and Assistance
The Hongkong and Shanghai Banking Corporation, Ltd. (HSBC) serves as the Companys stock
transfer agent registrar.
For matters concerning dividend payments, account status, lost or damaged stock certificates,
change of address, please write or call:
THE HONGKONG AND SHANGHAI BANKING CORPORATION, LIMITED
7/F HSBC Centre, 3058 Fifth Avenue, West Bonifacio Global City
Taguig City 1634, Philippines
Telephone No.: (632) 581.7594 | (632) 581.7524
Fax No.: (632) 755.5548
Contact Person:
Mr. Mike Sison - stkmnl@hsbc.com.ph
Ms. Rosh Oliva - stkmnl@hsbc.com.ph
AboitizPower welcomes inquiries from institutional investors, analysts, and the financial
community.
Credits
Design and Layout: AEV and Publicis JimenezBasic
Photography: Sarah Black and Pia Puno (Portraits)
Paintings: Jason Sto. Domingo
Please write or call:
142
Investor Relations
Mr. Dave Michael Valeriano
Mr. Aristo de Borja
Tel. No. (63-2) 886-2423
Fax No. (63-2) 817-3560
Email: ap_investor@aboitiz.com
Website: www.aboitizpower.com
certified
The Aboitiz Equity Ventures, Inc. 2014 Annual Report cover is printed on
9Lives Offset, a 100% recycled, high-bulk paper that is FSC-certified and
carbon neutral. The inside pages are printed on crisp 9Lives Silk born again
(recycled) paper that is also FSC-certified.
www.aboitiz.com

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Doing Well by Doing Good

Aboitiz Equity Ventures, Inc.

Doing Well by Doing Good

Doing Well by Doing Good

Aboitiz Equity Ventures, Inc.

The Aboitiz Way

Business Unit Heads

Our Businesses At a Glance

Aboitiz Power Corporation

Aboitiz Equity Ventures, Inc. (AEV)

Aboitiz Power Corporation (AboitizPower)

Business Unit Heads

AEV and AboitizPower Chairmen

AEV and AboitizPower CEO

AEV Chief Financial Officer

Aboitiz Foundation, Inc.

AboitizPower Chief Financial Officer

WeatherPhilippines Foundation, Inc.

Aboitiz Foundation, Inc.

WeatherPhilippines Foundation, Inc.

Audited Consolidated Financial Statements

Aboitiz Equity Ventures, Inc.

Aboitiz Power Corporation

We keep alive our passion for better ways.

A boit iz Equi ty Vent ures , In c.

Our leaders lead by example, mentor and foster teamwork, speak

Corporate Social Responsibility (CSR)

The Aboitiz Way

2014 Performance Highlights

Goal: Partner with our stakeholders to create shared value

Team members (TM) employed

Renewable energy (RE)

Automated Weather Stations

CSR fund allocation

742 CSR projects

Waste management initiatives

Greenhouse Gas (GHG) emission

Goal: Grow profitably

Total Return to Shareholder per year

No. of CSR projects

A boit iz Equi ty Vent ures , In c.

Goal: Minimize our environmental impact

The AEV-Davao Light consortium

Hedcor wins bid for the Talomo

A boit iz Equi ty Vent ures , In c.

AEV consolidates its shipping

AEV forms Luzon Hydro to build

Pilmico partners with Tyson Foods

The Aboitiz Group launches its

UnionBank acquires the

ATS celebrates its 100th

UnionBank pioneers Internet and

AEV implements a new focused

AEV goes public, the first

The 1st Aboitiz Future Leaders

ATS launches new brand 2GO for

The Aboitiz Group Foundation

A boit iz Equi ty Vent ures , In c.

Erramon I. Aboitiz is elected AEV

AEV fully acquires thrift bank unit

Therma Marine, Inc. assumes

T herma Mobile, Inc. acquires four

AEV ventures into biogas

AEV acquires land development

Our leaders lead by example, mentor and foster teamwork, speak

The AEV-Davao Light consortium

Hedcor wins bid for the Talomo

AEV consolidates its shipping

AEV forms Luzon Hydro to build

Pilmico partners with Tyson Foods

The Aboitiz Group launches its

UnionBank acquires the

ATS celebrates its 100th

UnionBank pioneers Internet and

AEV implements a new focused

AEV goes public, the first

The 1st Aboitiz Future Leaders

ATS launches new brand 2GO for

The Aboitiz Group Foundation

Erramon I. Aboitiz is elected AEV

AEV fully acquires thrift bank unit

Therma Marine, Inc. assumes

T herma Mobile, Inc. acquires four

AEV ventures into biogas

AEV acquires land development

AEV moves its corporate

The Aboitiz Group launches

AboitizLand celebrates its 20th

UnionBank raises P5.1 billion in new

Income from UnionBanks