Aboitiz Equity Ventures

Last updated

Aboitiz Equity Ventures Inc.
FormerlyCebu Pan Asian Holdings
Company type Public
PSE:  AEV
FoundedSeptember 11, 1989;35 years ago (1989-09-11)
Headquarters32nd Street. Bonifacio Global City, Taguig City. 1634 Metro Manila, Philippines,
Philippines
Key people
Revenue₱310.62 Billion PHP (2023)
₱23.55 Billion PHP (2023)
Total assets ₱833.86 Billion PHP (2023)
Number of employees
235
Website aboitiz.com

Aboitiz Equity Ventures (PSE: AEV) is a Philippine holding company based in Metro Manila, [1] with roots from Cebu City. [2] It is the public holding company of the Aboitiz Group with major investments in power, banking and financial services, food, infrastructure, land, and data science and artificial intelligence. [3] Today, it is recognized as one of the best-managed companies in the Philippines and in the ASEAN region, consistently cited for its commitment to good corporate governance and corporate social responsibility.

Contents

In 2017, the company was ranked 1793rd on the Forbes Global 2000. [4] In 2024, AEV was cited by TIME Magazine as part of the global list for Best Companies of 2024, based on employee satisfaction, revenue growth, and ESG Data. [5]

In 2022, the Aboitiz Group ventured into transforming its organization into a "Techglomerate" - a faster, stronger, and better version of a conglomerate. [6] A techglomerate can refer to a startup tech company that has grown into a conglomerate or a legacy conglomerate that has used technology and startup culture to radically transform the way it behaves and operates — Aboitiz is the latter of the two. [7]

History

The company was founded on September 11, 1989, as Cebu Pan Asian Holdings; the name was changed to the current designation in 1993. [8] The company went public on November 16, 1994. [9]

Business Units

Power

Aboitiz Power Corporation (PSE:AP) is a power generation, power distribution, and retail electricity provider that aims to supply reliable, reasonably priced, and responsibly sourced energy to communities and businesses. By yearend 2023, the company had become the Philippines’ biggest retail electricity provider based on market share, with over 250 customers from various industries and key verticals in the country. AboitizPower believes a balanced energy mix that fully utilizes thermal (coal and oil) and renewable sources (hydro, geothermal, wind, and solar) is necessary to ensure energy security, affordability, and sustainability amid rising energy demand. It has eight distribution utilities, including the country’s second and third largest, and has over 45 generation facilities spread across Luzon, Visayas, and Mindanao.

Aboitiz Renewables, Inc. (ARI), a wholly owned subsidiary of AboitizPower, is the Philippines’ largest owner and operator of renewable energy based on installed capacity. In early 2024, ARI expects to add 200 megawatts (MW) to its portfolio and another 508 MW until early 2025; it is on track to expand AboitizPower’s clean energy portfolio to 4,600 MW by 2030. [3]

Banking and Financial Services

Union Bank of the Philippines (PSE: UBP) is a publicly listed universal bank acknowledged as the leading digitally transformed bank in the country. It is among the pioneers in innovation to deliver superior banking experiences to customers. Consistently recognized as one of Asia’s leading companies, UnionBank ranks among the country’s top universal banks in terms of profitability and efficiency. Through its “Tech Up Pilipinas” aspiration, it aims to power the future of banking to best serve the growing needs of Filipinos everywhere.

City Savings Bank, Inc. (CitySavings) is UnionBank’s thrift bank subsidiary serving the teacherborrowers’ market and other mass market segments through its various acquisitions. FAIRBank (2016) focuses on micro, small, and medium-sized enterprises (MSME) loans and microfinance; PETNET, Inc. (2018) provides cash and payment-related solutions in its over-3,000 retail outlets, and Bangko Kabayan and Progressive Bank (2020) further serves the MSME segment.

UBX Philippines (UBX PH) is UnionBank’s wholly owned innovation and technology company that began commercial operations in 2019. It focuses on innovation projects such as investing in financial and information technology companies and platforms, as well as providing technology services to clients. All these are geared towards embedding financial services into people’s everyday experiences and connecting communities to promote financial inclusion in the country.

UnionDigital (UD), UnionBank’s wholly owned digital banking subsidiary, which holds one of six digital banking licenses granted by the Bangko Sentral ng Pilipinas (BSP) was commercially launched on July 18, 2022. [3]

Food

Aboitiz Foods is one of the leading food and agribusinesses in Asia. It is the integrated agribusiness and food company of the Aboitiz Group. In the Philippines, Pilmico Foods Corporation (Pilmico) is an industry leader in the flour and feeds manufacturing sector and a top pork meat supplier. Its four divisions—Flour, Feeds, Farms, and Trading—enable the growth of the company’s stakeholders through consistent quality products and unmatched supporting services. Pilmico’s customer reach has also expanded to the Asia Pacific region through Gold Coin Management Holdings, Inc. (Gold Coin), a pioneer in animal nutrition and manufacturing scientifically based animal feeds in Asia. With over 3,700 partners across multiple facilities in eight countries, Pilmico and Gold Coin Group form one of Asia’s largest privately owned agribusinesses. [3]

On February 23, 2024, the company announced that it has jointly acquired Coca-Cola Beverages Philippines Inc. together with Coca-Cola Europacific Partners (CCEP) for $1.8 billion on a debt-free, cash-free basis. It will hold a 40% stake, while CCEP will take up the remaining 60% stake. [10] [11]

Infrastructure

Aboitiz InfraCapital (AIC), the infrastructure arm of the Aboitiz Group, is committed to building sustainable and smart infrastructure that uplifts society as a catalyst for economic growth. AIC develops and operates in diverse yet interconnected businesses in Economic Estates, Water Services, Transport and Mobility, and Digital Infrastructure.

The Economic Estates are innovative, master-planned developments that spur sustainable growth in regional areas across the country, with LIMA Estate in Batangas, and Mactan Economic Zone II (MEZII) Estate and West Cebu Estate in Cebu. In 2023, AIC announced the acquisition of 200 hectares in Tarlac City to expand its portfolio in Central Luzon, bringing the total combined footprint of its Economic Estates to 1,600 hectares. These economic zones are complemented by commercial, residential, and institutional components run by Aboitiz affiliates, including AboitizPower, Aboitiz Land, and Aboitiz Construction. AIC’s Estate

Water subsidiaries, namely Lima Water, MEZII Water, and West Cebu Water, provide end-to-end water and wastewater services to the Economic Estates serving the growth needs of locators and businesses.Apo Agua Infrastructura, the largest operating bulk water project in the country, provides the Davao City Water District that serves over one million residents with 300 million liters of safe drinking water daily. AIC also owns a minority stake in Balibago Waterworks Systems, one of the country’s largest privately owned waterworks systems, which provides running water to over 330,000 residents in Pampanga.

As part of the GMR Megawide Cebu Airport Corporation (GMCAC), AIC is engaged in the operations of the Mactan Cebu International Airport (MCIA) and will take full control of its operations in 2024. This represents AIC’s initial foray into the Transport and Mobility space as it explores more opportunities to grow its regional airport platform.

Unity Digital Infrastructure is AIC’s joint venture telecommunications infrastructure company with leading global private markets firm Partners Group. It builds and operates passive telecommunications tower infrastructures across the Philippines to support mobile network operators in improving digital connectivity and service reliability. AIC has also diversified into the data center business through its partnership with EdgeConneX, the pioneer in global Hyperlocal to Hyperscale Data Center Solutions in the United States. [3]

Republic Cement, AEV’s partnership with global building materials group CRH, operates six facilities across the Philippines that produce the biggest supply of cement in the country.

Land

For over 25 years, Aboitiz Land, Inc. continues to deliver innovative solutions to provide better homes for Filipinos, a commitment that extends from its Cebu legacy to Luzon to shape the landscape of residential living across the Philippines. The company embarked on its national expansion in 2014, with the acquisition of LIMA Technology Center in Batangas. In 2020, Aboitiz Land redirected its focus to residential development by transferring its industrial and commercial business units to Aboitiz InfraCapital.

This commitment to residential development is exemplified through diverse projects that cater to the varied needs of residents. Seafront Residences in San Juan, Batangas, launched in 2017, marked the company’s venture into horizontal residential development, earning accolades as an exclusive beachside residential enclave. In 2018 and 2019, Aboitiz Land introduced Ajoya communities in Central Luzon, providing quality living spaces, highly amenitized communities, and expansive green areas at affordable prices. These communities, which are located in Cabanatuan, Nueva Ecija, Capas, Tarlac, and Mexico, Pampanga, are prime examples of Aboitiz Land’s expansion efforts into Luzon.

Also in 2019, the company unveiled The Villages at Lipa, a 49-hectare residential enclave within the expansive LIMA Estate. This collection of villages redefines living in the progressive South, seamlessly integrating residential spaces with vibrant business districts. Meadow Village, Sierra Village, and Brook Village within The Villages at Lipa showcase Aboitiz Land’s commitment to offer diverse living experiences.

In a strategic move to expand into Metro Manila, the company in 2019 partnered with Point Blue, a pioneer in the integrated micro-studio rental market to operate apartments located in key business districts. This expansion, which reflects the company’s responsiveness to the demands of the housing market, solidified Aboitiz Land’s position as an innovation-driven property developer. [3]

Data Science and Artificial Intelligence

Aboitiz Data Innovation is the Data Science and Artificial Intelligence arm of the Aboitiz Group. [12] It is a forward-thinking data science and AI start-up with a strong commitment to research and a human-centric approach. ADI's mission is to provide transformative AI-powered products and capabilities to businesses across diverse sectors.

With a heritage rooted in the Philippines’ Aboitiz Group and headquartered in Singapore, ADI is uniquely positioned to serve clients in banking and financial services, power, and smart cities (real estate, airports, construction, land, and food) industries.

The company is committed to making a positive impact through innovation, sustainability, and excellence. Its team of experts leverages advanced data science techniques and a human-centric AI approach to developing solutions that are not only effective but also socially responsible. ADI’s transformative Data & AI solutions drive value—fostering smarter and sustainable cities, strengthening risk management, and enhancing energy efficiency, benefitting both clients and society at large. [3]

Corporate Social Responsibility

Aboitiz Foundation, Inc. is the Aboitiz Group’s corporate foundation established in 1988. In partnership with Aboitiz business units, the foundation empowers future leaders with resources and scholarships, creates jobs through community development and digital skills training, and prioritizes climate action with nature-based solutions for a sustainable future. After 35 years, it continues its legacy with a renewed commitment to expand flagship programs, foster global collaborations, and harness innovation in its unwavering mission to shape a brighter future for its communities, and for the nation. [3]

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References

  1. ↑ "Aboitiz | Contact Us". aboitiz.com. Retrieved December 5, 2022.
  2. ↑ "Aboitiz Equity Ventures, Inc.: Private Company Information". Bloomberg. Retrieved December 17, 2017.
  3. 1 2 3 4 5 6 7 8 "Aboitiz Integrated Report 2024" (PDF). Aboitiz Integrated Report 2024. April 2024. Archived (PDF) from the original on July 11, 2024.
  4. ↑ "The World's Biggest Public Companies List". Forbes.com. May 24, 2017. Retrieved December 16, 2017.
  5. ↑ "World's Best Companies of 2024". TIME. Retrieved September 17, 2024.
  6. ↑ Neil (July 26, 2022). "The birth of the Philippine 'techglomerate'". BusinessWorld Online. Retrieved December 6, 2022.
  7. ↑ "Techglomerate In The Philippines". Aboitiz. Retrieved December 6, 2022.
  8. ↑ Resil B. Mojares (1998). Aboitiz: Family & Firm in the Philippines. Aboitiz & Company. ISBN   978-971-91903-0-1.
  9. ↑ Asiamoney. Euromoney Publications. 1996.
  10. ↑ Cordero, Ted (February 23, 2024). "Aboitiz, CCEP complete $1.8 billion Coca-Cola Beverages PH acquisition". GMA News. Retrieved February 23, 2024.
  11. ↑ Camus, Miguel (February 23, 2024). "Aboitiz buys 40% of Coca-Cola PH". Philippine Daily Inquirer. Retrieved February 23, 2024.
  12. ↑ "About Us". Aboitiz Data Innovation. Retrieved December 6, 2022.
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