Ayala expands its global footprint across sectors
MANILA, Philippines — Ayala Corp. is expanding its global footprint as part of its target to double its net income to P50 billion by 2020. While most of its growth will still be driven by its local businesses, it aims to bring up the earnings of its international portfolio from its present 7 percent to 10 percent over the next two years.
“In our country, our businesses are established leaders that have important presences in their respective industry. Across the Ayala group, we have made significant progress in expanding our international presence, particularly across Southeast Asia, where we have the ability to bring our expertise and capital to address opportunities,” said Ayala chairman and CEO Jaime Augusto Zobel de Ayala.
These businesses are leading the group’s international expansion:
AC Industrials
In 2017, AC Industrials acquired businesses with disruptive industrial technologies that would complement its asset portfolio in the electronics and automotive industries. This is in line with the company’s goal to become a key player in the new industrial revolution.
Last year, it has acquired manufacturing facilities in Germany, the UK, Serbia, and Thailand adding to its existing footprint in China, Singapore, the US, Mexico, Bulgaria and the Czech Republic.
AC Industrials has a 94.9-percent stake in German-based MT Technologies GmBH, a supplier of automotive models, tools and plastic parts. It also has a 78.2-percent stake in US-based Merlin Solar Technologies Inc. that develops highly durable and flexible solar solutions that promises increased solar output.
Its electronics manufacturing arm, Integrated Micro-Electronics Inc. is the sixth largest electronics manufacturing services provider in the world. It has a 76-percent stake in Via Optronics, a leading optical bonding and display solutions provider.
In April 2017, it acquired UK-based STI Enterprises Limited, which provides electronics design and manufacturing solutions for the aerospace, defense and security sectors. IMI’s revenues exceeded the $1-billion mark last year.
Meanwhile, AC Auto formed a joint venture company with KTM, the world’s largest Austrian-based motorcycle manufacturer. Since June 2017, some 1,800 units have been produced in IMI’s facility in Laguna, including a number for export to Thailand and Vietnam.
Manila Water
Manila Water is sharing its 20 years of technical expertise and service quality with other Southeast Asian countries. It is Vietnam’s largest foreign investor in the water sector, and meets half of Ho Chi Minh’s consumer and industrial demands.
Earlier this year, it acquired an 18-percent stake in Thailand’s East Water, which is strategically located along the Eastern Economic Corridor. This region is expected to become a leading economic zone.
Manila Water has also started its entry into the Indonesian market, with a 20-percent stake in Indonesian bulk water supply company PT Sarana Tirta Ungaran.
AC Energy
In just five years, AC Energy has increased its attributable generating capacity from 80 MW to 1,600 MW. Its Southeast Asia acquisitions laid the foundation for it to become a significant player in the region’s energy sector.
It holds a 20-percent interest in the 637 MW West Java geothermal assets in Salak-Darajat, which it acquired from Chevron in Indonesia. It is also developing Indonesia’s first utility-scale wind farm in Sidrap. Recently, it partnered with Vietnam’s BIM Group to jointly develop over 300 MW of solar power projects in NInh Thuan province.
Ayala Land
Ayala Land Inc. established a foothold in Southeast Asia in 2015, when it first acquired Malaysian development and construction firm MCT Berhad. This year it further raised its interest to gain majority control of the company.
Ayala Land, a leader in large-scale, master-planned estate development, aims to strengthen its presence as an investor in the region.
Up ahead
These international acquisitions and partnerships allow Ayala Corporation to export its knowledge and bring shared value and prosperity to all of its stakeholders.
“Moving forward, we remain optimistic about our growth trajectory as we adjust to monitor major global, domestic, and industry trends that affect our businesses and open new opportunities,” Jaime Augusto Zobel de Ayala said. “The investments we have made across the group are all in support of the country’s development agenda. We have deployed P898 billion in combined capital expenditure over the last six years, which is equivalent to approximately 50% of the Philippines’ foreign direct investments over the same period,”
The Ayala group’s robust growth is evidenced by its strong 2017 financial results: a 16-percent increase in net income to P30.3 billion.
“But more importantly and beyond operational results, Ayala has helped drive inclusive economic growth for the country by creating employment opportunities for over 139,000 people and remitting P239.4 billion in taxes to the national government over the past six years,” said Ayala president and COO Fernando Zobel de Ayala.
“We are confident in the country’s fundamentals and we remain a committed partner in our country’s national development. Ultimately, at Ayala, what drives us to do better every day is our desire to help improve lives of more Filipinos,” he added.
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