Touching Hearts Changing Lives

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1 Touching Hearts Changing Lives annual report 2012

2 Message from the Chairman The worst of times bring out the best qualities in the Filipino. This is a conclusion that we have observed every time there are challenges that test the Filipino spirit. In times of trial, there is no rich or poor and the gap that usually divides them does not exist at that moment. Instead, there are only hands helping each other, minds and hearts bonded together by the common resolve to help those in need. It is this image of brotherly cooperation, selfless generosity and innate kindness that push our personal limits to help improve the lives of others. More than just ensuring that our businesses are running efficiently, we go out of our way to build and rebuild lives. This concept of kapatiran and malasakit have been proven especially during natural disasters such as typhoons Sendong in 2011 and Habagat and Pablo in Like in every calamity, people s basic needs are affected water, electricity, communications and connectivity. It is a moment when we find ourselves and our businesses at the forefront of effecting change in the lives of our fellow Filipinos. The call to respond in times of disaster and calamity has become the driving force not only within the PLDT Group but also within the broader MVP Group. Highlighting the values of kinship and convergence, we formed Tulong Kapatid, an encompassing initiative that combines the abilities, expertise and the innate instinct to reach out to others. Like a band of brothers, the help transmitted is multiplied. Thus the desired effects in relaying basic services and relief operations are fast-tracked, and become more tangible and felt. Tulong Kapatid is more than just a slogan and a siren call; it is the spirit that demands the best from within our own selves in the worst of times. But more than that, what is truly touching is that big businesses are not the only transmitters of charity. I was told of stories of how a simple market vendor would donate her hard-earned P100 from her earnings for the day in order to procure relief goods for the typhoon victims of Cateel and Boston in Davao Oriental. Or the family of a tricycle driver who squeezed into their own tricycle just to deliver more donations. I am always moved by the smiles and tears of joy in the faces of our beneficiaries when we reach out to them. This sentiment can always be found every time we reach out to others, especially in the aftermath of a disaster. As businesses owe its successes to the communities and people it serves, the unwritten commitment to give back and share resources, wealth and wisdom is what truly defines the essence of what we do, something that we hope would be inculcated in each and every Filipino. These are essential in building a stronger, wiser and better nation. In the course of conceptualizing CSR programs for our target beneficiaries, we have relied on partnerships between the public and private sectors to make these programs successful and sustainable. PLDT-Smart Foundation s advocacies in education, poverty alleviation, disaster risk reduction, and environmental protection benefit from the cooperation of individuals, organizations and businesses. Now, in a time when seamless interconnection blurs economic and political boundaries, equalizes people of different backgrounds, and unites diverse communities into a converged world, let us work hand in hand in connecting people, uplifting lives and nurturing communities. Let us create a world where people create lasting relationships, and truly share each other s wealth and experience. Manuel V. Pangilinan

3 As businesses owe its successes to the communities and people it serves, the unwritten commitment to give back and share resources, wealth and wisdom is what truly defines the essence of what we do, something that we hope would be inculcated in each and every Filipino.

4 Contents 02 Message from the Chairman 05 Message from the President 06 Touching Hearts 14 Board of Trustees 16 Changing Lives 26 Reaching Out 36 Financial Report About the cover As technology evolves and constantly redefines itself, what is important is how these innovations transform lives and redefine our future. Two children whose hands are reaching out to a heartshaped wall collage grace our cover. Just as the heart is the place of convergence for every drop of life-giving blood, PSF s CSR endeavors hope to touch the hearts of every Filipino in order to change their lives and uplift their communities. PLDT Group s Corporate Social Responsibility At the PLDT Group of Companies, Corporate Social Responsibility (CSR) is grounded in our belief that an integral part of our business is the imperative to help improve the overall well-being of the Filipino people. To achieve this goal, we will address proactively the interests of our various stakeholders. We believe that as we seek to enhance value for our shareholders, we have a responsibility to: Provide quality products and services for our customers Develop our employees Work with our suppliers and business partners in an ethical and mutually beneficial manner Care for the environment Improve our communities We are conscious about the proper management of our finite and fragile environment and are taking tangible measures to lessen our carbon footprint. We will continue to invest in technical business solutions that both cut our costs and help save the environment. By succeeding as a corporation, we create wider opportunities for employment, entrepreneurship and the greater well-being of all Filipinos. We believe that as we help raise the overall economic welfare of Filipinos, we expand the market of our products and services. The core of our Company s business strategy is the desire to Change Lives for the Better.

5 Message from the President As a major telecommunications conglomerate, the PLDT Group aims to provide the best, most effective and efficient service so that people and businesses can have seamless connection: people need to connect with loved ones despite the distance, while businesses and institutions require 24-hour connectivity in order to operate well and fulfill their obligations. Nevertheless, our commitment to seamless connection goes beyond communications. Our work in corporate social responsibility and philanthropy is as rich as the many situations and personalities we encounter. And many times, we think that we get more from those who receive our help, making the experience worth doing over and over. As we touch lives, we are touched in return. To be able to transform the way people think and lead their lives can be overwhelming. Every time we coordinate with institutions and persons who seek our help, we feel the tremendous challenge to successfully bring a positive and lasting impact to those who benefit from it. From planning to execution, nothing drives us to strive for perfection but the smile from a child s face or the messages of gratitude from our scholars. They may not realize it, but helping them can be rewarding in itself; we get to experience the satisfaction and honor while remaining humbled by the privilege of helping others. Through our transformative programs and endeavors, effecting change in the lives of many Filipinos does not feel burdensome or obligatory; rather, there is a feeling of fulfillment as our recipients translate them into positive results. The Gabay Guro Program, since its inception in 2007, has since supported hundreds of future teachers to become effective messengers of information and knowledge through training, additional livelihood opportunities, improving communications technology learning in classrooms, and even providing them with decent housing. Project Pagsulong, our newest project launched in 2012, brings out the best in our youth as they answer the call for innovative business ideas. Using their creativity, ingenuity, strategies and available resources, we have invited young Filipinos to help in the campaign to alleviate poverty in society while at the same time, have encouraged them to become successful entrepreneurs. Another project worth mentioning is our strategic partnership for the Dynamic Learning Program of Dr. Chris and Marivic Bernido, two respected science educators who started this innovative learning system in their school in Jagna, Bohol. By supporting the scientistcouple, we hope to change the way Filipino students learn and appreciate education in the 21st century and build a country of science scholars and workers as we learn together as one nation. The goal to reach out to as many Filipinos does not end there. In times of disaster, nothing is more important than having an immediate and expansive response to the cries for help and assistance of those affected by calamities. Our employees in PLDT and Smart have proven once more their commitment to help during relief operations in the wake of the Habagat and Typhoon Pablo in More than that, we did this in partnership with the different entities within the First Pacific Group, who along with PSF have allied themselves in Tulong Kapatid, effectively addressing many concerns in disaster preparedness and recovery. To touch hearts, to change lives, to reach out to those in need the PLDT-Smart Foundation does not stop in answering the call to transform lives and communities. As we go about initiating new projects and continuing those already started, we realize that we cannot merely define and analyze what brotherhood and kinship is all about rather, we pass these notions through our hearts and minds to generate acts that truly bring us closer to becoming one family, one community and one nation. Through our transformative programs and endeavors, effecting change in the lives of many Filipinos does not feel burdensome or obligatory; rather, there is a feeling of fulfillment as our recipients translate them into positive results. Ma. Esther O. Santos

6 touching hearts

7 Manuel V. Pangilinan Chairman, PLDT My journey to CSR work started when i was in college. Every Saturday, we would teach Catechism at the National Mental Hospital in Mandaluyong. Once a month, on a Sunday, we would be with the poor in Sapang Palay. The greatest challenge for our country is Poverty Alleviation. Through the PLDT Group, we can do more to help improve the economic welfare of our people. Being involved in CSR, the most important lesson that I have learned is helping the poor is a must for business. My CSR heroes are Bill Gates and Warren Buffet because they not only gave their wealth but are also spending time to do CSR work. The relief operations and post-disaster work for Typhoon Ondoy was a memorable experience for me. Ma. Esther O. Santos PSF President My journey to CSR work started when I was invited by a Filipino NGO to assist them in some of their projects for women. Since then, I had seen the impact that working with underprivileged groups can have when we help them uplift themselves. The greatest challenge for our country is quality education and creating jobs and businesses to impact the lower income segment or the BOP; and through PLDT-Smart Foundation, we can do programs that address problems related to these sectors, even if the solutions do not always come in the form of our telecommunications services. Being involved in CSR, the most important lesson that I have learned is to listen and be one with the people we are trying to help. For me, the most relevant role of CSR is to support people who want to improve their lives and to help build the nation. My CSR hero is MVP and to a large extent, my parents who have taught me with their example of generosity and caring for others. We are touching lives by investing in our people s future and giving opportunities and access through better education and livelihood. Two experiences come to mind where I have witnessed true servant leadership in CSR. The first occasion when I had a chance to work with MVP in a disaster response setting was amidst the most unpleasant circumstances with the rains of Pedring and Quiel pounding on Luzon last October Upon hearing the news, MVP immediately called a small team to his MGO office on a Saturday! I don t know how everyone managed to make it, but we were there by 11, ready to take instructions from the Boss. His take charge attitude brought us out of our comfort zones, and we were soon running and making calls to check on our facilities and our people. He asked us how many rescue boats we had, how many relief packs we can get ready. I still cannot get over how quickly MVP decided, and a team was asked to gather the funds and acquire some new rescue boats for deployment ASAP. And the next day, Sunday October 2, 2011, we were all in Pampanga and Bulacan together with MVP meeting with mayors, the Red Cross and distributing relief goods. Again, MVP s speediness in responding during times of great need was manifested when Typhoon Pablo struck last December Even if he was out of the country at that time, he once again united our troops to mount the first TV5 Telethon. This effort brought in a record (of more than) P100 million in less than a day of the telethon. Also inspiring was that this amount was reached through the generosity of the big companies such as those that belong to the First Pacific Group, as well as the simple folk who gave up their alkansya savings thinking this money can better help the families in Davao Oriental and Compostela Valley who have lost everything, rather than spend it on their Christmas celebration that year. annual report 2012 / 7

8 Ramon R. Isberto Trustee/ Head, PLDT-Smart Public Affairs My journey to CSR work started when I was a college student and I joined relief work for floods in Central Luzon. In Smart, it started with an airplane crash in Smart was a very young company at that time and it didn t have a formal CSR program then. When the mayor of the town was interviewed on television, he was asking help from Smart because we were the only ones that had a signal in the area. When MVP found out about it, he said: O Mon, tumulong tayo diyan. We sent a team to help set up what is probably the first Libreng Tawag Center. It was very instrumental as it was used by the families of the victims and by the rescue team because there was a signal in the crash site. Speaking from the context of a mobile phone company like Smart, it is natural to get involved with CSR since wireless and mobile phone communication is an important tool for many kinds of activities that can benefit a lot of people if you do CSR work. There s a lot that you can do because communications is an enabling tool. The greatest challenge for our country is inclusive economic development; and through PLDT and Smart, we can enable people with ICT. Being involved in CSR, the most important lesson that I have learned is you need to build good partnership. For me, the most relevant role of CSR is to strengthen the company s ties with the community. You have to hand it to MVP as you can see him handing goods to beneficiaries during calamities. I also admire the Bernidos couple because they are good partners to work with, their hearts are in the right place and they know what they do. We are touching lives by enabling people and communities to improve their lives. A memorable experience for me was the visit to Davao Oriental after the devastation of Typhoon Pablo. The magnitude of the destruction was very wide and it was shocking to see how coconut trees were flattened by the force of the typhoon. It was a big blow to the residents but with the help of organizations such as the MVP Group, we were able to provide livelihood, housing, and relief. Chaye Cabal-Revilla PLDT FVP and Comptroller/Gabay Guro Chairperson My journey to CSR work started when I was still very young as I have witnessed how my family shared their blessings and helped others in times of need. At PLDT, Gabay Guro was able to start because I have friends who share the same commitment and for passion serving others. All o f us at Gabay Guro are motivated to give back to society through honoring our teachers. It is all about volunteerism and no one needs to push us, we are motivated to reach out to more teachers so they will feel empowered to also motivate their students. The greatest challenge for our country is poverty, that s why we did Gabay Guro to fight the ills of poverty through education. I believe that education is a great equalizer and a powerful tool to change lives and be free from the grip of poverty. Being involved in CSR, the most important lesson that I have learned is that we are so blessed, that s why we have to share to others. We are just a vessel and we need to share our blessings especially to those who need and deserve them. God has given us so much and it is only appropriate to share. For me, the most relevant role of CSR is empowering those who need our help, such as the teachers. If not for them, how do we ensure a bright future for the next generation? CSR programs, such as Gabay Guro, gives us the vehicle to change the lives of those who change the lives of the youth. My CSR hero is my family, especially my father, because they taught and showed me the value of being a blessing to others by being kind and generous. We are touching lives by uplifting the lives of our modern-day heroes, the teachers. A memorable experience for me in doing CSR work is when a teacher from Surigao, went all the way to the PLDT office just to send her appreciation. In fact, she even got lost and got down in Guadalupe. From there, she walked all the way to the PLDT office carrying a bayong full of fresh vegetables. I could not forget her effort and I was so touched with her gesture. When I think about it, all our stress and pressure melts away and we want to further touch the lives of so many other teachers through Gabay Guro.

9 Evelyn M. Del Rosario Head, PLDT Community Relations Division, Public Affairs My exposure in the world of corporate social responsibility (CSR) actually started when I was only eight years old. It was such at an early age when I took it upon myself to share old clothes and food with our farmers back then in Isabela. I helped my grandfather-mayor to distribute food and whatever assistance needed to our much less fortunate constituents. Although I didn t have any inkling and wasn t really aware that I was already doing CSR works since I was just following after what I was witnessing from the benevolent acts of my grandfather-mayor. I was just imitating the kind of life that I was being exposed to. I felt good doing them nonetheless and didn t have the slightest idea that fast forward to the corporate milieu that I am right now, I will primarily be doing CSR the most part of which is devoted and dedicated to doing it and I feel the very same emotions that I felt when I was still eight years old. And, as if adding some parallelism into what I will eventually be doing, in 1976, I received a scholarship study grant in Cornell University with a program on policies and strategies for aiding the urban and the rural poor. The greatest challenges for our country are in the areas of education and environment; and through my company PLDT, we should be more active and implement more programs for education and environment. Which is what we are doing at PLDT Community Relations. We focus on educational and environmental programs. For education, we have programs such as the following: a) PLDT Infoteach Outreach Program. A flagship project which provides learning opportunities for public high school students as well as elementary and high school teachers from across the nation to upgrade their cyber technology skills through internet and basic IT education; b) Donation of school building and classrooms, PCs and establishment of computer laboratories; c) PLDT-UPOU Online Teachers Development Program ; d) Digital Literacy for Women. For environmental programs we have PLDT TELEpuno tree-planting in partnership with the Department of Environment and Natural Resources (DENR), Philippine Business for Social Progress (PBSP), Multi-Sectoral Watershed Management Council, Inc. (MSWMC) and the local government of Infanta and Real, Quezon. Launched during the 80th anniversary of PLDT, a five-year tree-planting program covering 80,000 seedlings aimed at regenerating the natural ecology of 80 hectares of Infanta-Real Quezon watershed forest reserve. This benefited at least four people s organizations with 80 farmers. In time for PLDT Chairman Manuel V. Pangilinan s 66th Birthday in 2012, PLDT Community Relations spearheaded the Company s environmental greening project dubbed 66K M.V.P. (Movement for Volunteerism and Partnership) Trees with the objective of planting 66,000 seedlings participated in by the MVP Group of Companies. Areas covered include Benguet,Pampanga, Bulacan, Marikina,Iloilo, Cebu and Davao.Other programs are coastal, highway and river clean up, support to Earth Day celebration, mangrove planting, among others. Being involved in CSR, the most important lesson that I have learned is to be passionate in all the CSR projects you are doing and to be more effective, you should really involve yourself, interact with the communities and lead by example. You should have the passion to do the job and understand what is really needed. I believe that these have been my guiding principles each and every time we undergo a community project and I must say that I owe it a lot to the men and women in PLDT. I call them volunteers, for without them, our project will never be as fruitful and as successful that we envision them and how they turn out to be. Being passionate and being with my volunteers are the most important lessons I have learned in the span of time that I have been doing CSR projects. I can never do without my volunteers, since, I want them to be as passionate as myself if only to achieve success when it comes to CSR works. This is what we have been espousing all through these years that we have been doing our CSR initiatives employee-volunteerism. For me, the most relevant role of CSR is helping people face reality and mobilizing them to make change necessary in uplifting their lives and rising up again and again from the crises that continue to behoove them. To alleviate poverty as well and be ready to give and extend a helping hand especially in times of calamities and disasters. In the span of time that I have been into CSR, I have realized that there s nothing more fulfilling than being able to help people and feeling and sharing with them how it is to face reality and continue to rise up after every fall. And you can t do this alone. You have to be with people who have the same resolve and passion to help, hence our employee-volunteerism program. My CSR hero is PLDT Chairman Manuel V. Pangilinan. MVP because he is ultimately the epitome, the father of CSR in PLDT. He leads us in espousing and doing CSR works. He sets the highest standard of volunteerism among our employees. He makes himself available in the PLDT CSR programs. As I ve always said, I really admire MVP because given his stature as a businessman, he has a big heart for the poor and in times of calamities, he is the first to initiate moves to help. Celebrating one s special day with the people he can help and be with for a whole day has been his no-miss tradition each and every year. CSR is MVP and MVP is CSR.We are touching lives and eventually changing lives by providing the needs of the marginalized members of society and through these CSR projects, we offer, they were given hope and inspiration to change for the better. We became instruments for them to go on living, improve their lives and make it more meaningful. The most memorable one is when MVP, PLDT President and CEO back then, attended our CSR program in Payatas, Quezon City, a dumpsite area for the poorest of the poor. He attended the Holy Mass and took part in the PLDT Medical Mission and Feeding Program. To date, he is the only President and CEO of a company to visit the area.

10 Francis A. Bautista Gabay Guro Volunteer My journey to CSR work started when I was about 10 years old, when my parents tagged me and my siblings every time they visit Golden Acres as part of an outreach program. My mind was opened to the fact that there were elderly people abandoned by their respective families. Also, way back in high school, we had exposure trips and had the chance to visit the victims of Mt. Pinatubo eruption, and stayed with them for one whole day. The greatest challenge for our country is how to address poverty. Through the programs of PLDT-Smart Foundation, we support the initiatives of the government in education as the key tool in poverty alleviation. Being involved in CSR, the most important lesson that I have learned is that we have to be humble in serving others -- no matter what your stature is in the company or society. You also have to be dedicated as service for others involves a huge amount of commitment. For me, the most relevant role of CSR is giving hope to people and making them feel that somebody cares for them. My hero in doing charity work, not necessary in the context of CSR, is St. Francis of Assisi. For me, he is the epitome of acts of charity and living the life of simplicity. We are touching lives by showing our dedication and passion in doing CSR work, and that we are not being paid to do such. Seeing that we are able to help and can see smiles on their faces, these, I think, is priceless Actually for me, in helping other people, they are touching my life. A memorable experience for me was in September 26, 2009 (my birthday), when Typhoon Ondoy hit Metro Manila. I was stranded in PLDT Mandaluyong office and can t go home because the roads going to our house in Pasig are still not passable. On September 28, 2009, despite the fact that I have no clothes and other basic necessities, I still decided to fly to Dumaguete and push through with the scheduled Gabay Guro trainings. Not to mention that I was feeling sick and later on, diagnosed with Hepatitis. Deng Kibanoff VP-Training and Career PLDT and Head of Training Pillar-2G Program My journey to CSR work started when I became a licensed teacher and topped the LET in April That time I realized that as a licensed teacher working in a professional training organization, there is much I can do personally to share my knowledge of teaching with our country s teachers. Gabay Guro gave me that opportunity. The greatest challenge for our country is upgrading the quality of education in the Philippines and helping our teachers and through PLDT, we can do a lot to uplift the quality of our teachers and improve their condition in society. Being involved in CSR, the most important lesson that I have learned is that serving others is a privilege that holds the highest form of reward in one s heart. For me, the most relevant role of CSR is empowering people to believe in themselves and in providing people avenues for real and lasting change. My CSR heroes are Dr. Cris and Dr. Marivic Bernido because being teachers like me, they embody selfless dedication to helping Filipino teachers and students to become the best that they can be. We are touching lives by touching teachers hearts -- to find true meaning in their important role in nation-building. One of the most touching moments in my Gabay-Guro teaching experience was when one of the graduates of the Teachers Treasure Chest Course (the course I was teaching) gave me a small handwritten note at the end of the course. In it was written Thank you very much for this seminar, sir. I was about to decide to leave the teaching profession given all its frustrations and challenges, but now I d like to go on with my calling. Another was when we were conducting the same course in Roxas, Palawan in a big gym when just outside the venue, NPA rebels and police had a shootout. Since I was busy conducting the course, I was unaware of what was happening outside. I only learned of the incident during the morning break when a colleague told me. Thus, we had to cut the training short and travel back to Puerto Princesa by van fearing where the next encounter may be. Well, that s all in a day s work for the Gabay Guro Training team. We did not stop the program just because of that incident. We just considered that experience as one of the surprises and spices of our CSR life. 10 / annual report 2012

11 Rose E. Gutierrez 2G Director for External Affairs My journey to CSR work started when I volunteered my services to the 2G Core Team because 1) I have great respect for the teaching profession 2) to fulfill my personal mission of trying to be a blessing to others in my own humble way. The greatest challenge for our country is fighting corruption and deviating funds to pockets of people in power more than allocating sufficient and rightful budget to deserving less fortunate sectors of society; and through PLDT, we can do our share of filling the gap between the mighty rich and the deserving sectors of society. Being involved in CSR, the most important lesson that I have learned is to first value the blessings that God has abundantly provided us and sharing it with those who are truly under privileged. For me, the most relevant role of CSR is to reach out to as many marginalized individuals or organizations in the country and providing selfless time and effort to achieve the objective of a given project. My CSR hero is Bill Gates because he has put up huge hightech laboratory where specialists are working to find cure for major illnesses for the benefit of the whole world. We are touching lives by simply being a blessing to others everyday of our lives. During one of our training sessions for teachers, a participant cried her heart out to us out of great happiness since it was an event in so many years where the nobleness of her teaching profession was emphasized. This was after we have declared that there would be no successful presidents or vice presidents or doctors or lawyers WITHOUT their teachers to hone their skills. For years, she kept on thinking that teacher LANG siya._ The teacher even shared her story of having to walk miles to reach her impoverished school. Melanie A. Manuel AVP & Head, Carrier Settlements & Business Information Management (PLDT, SMART & SUN/DIGITEL) Chairperson, Gabay Guro Scholarship Committee My journey to CSR work started in 2007 when I was President of PLDT Managers Club, Inc. (MCI). Ms. Chaye Cabal, FVP & Head, Financial Planning and Control, invited me and a few other friends from MCI, blessed as we are, to think of a way of how we can best give back. Over a cup of coffee, Gabay Guro was born, and the rest is history. The greatest challenge for our country is poverty alleviation; and with Gabay Guro and PSF, we can undertake programs geared towards poverty alleviation through education. Being involved in CSR, the most important lesson that I have learned is no help is too small to make a difference. For me, the most relevant role of CSR is to make a difference in other people s lives, and help them to be self-sufficient so they can contribute in nation-building. My CSR hero is MVP because of the support he is giving to education, sports and many other programs that benefit the youth the future of our country. We are touching lives by helping with a heart. As Chairperson of Scholarship Committee, it is my job to screen applicants. It is not uncommon to find myself teary-eyed while reading the stories of students. But there was one scholar that will forever be etched in my memory. On her first year, her family was struck by tragedy, that she almost gave up on her studies as she couldn t make the grade. Gabay Guro gave her a second chance. When she graduated, she gave me a hug so tight that I felt the enormous gratitude in her heart. I just felt that the expression of gratitude was way greater than the help we have given her. Indeed no help is too small to make a difference. Her story and that of many other Gabay Guro scholars will be my inspiration to continue touching and changing lives in my own little way. annual report 2012 / 11

12 Gil Garcia Gabay Guro Team Member My journey to CSR work started very early as I have seen how my parents were always helping others, even extending help even when we don t have that much. So when I started to work at PLDT, I thought that Gabay Guro was just an extension of my work. Then I realized that this is the best way to reach out. I can t do everything myself, but with a group of people who are passionate to help and passionate to teach, we can make a difference. It is a dream come true to help others! The greatest challenge for our country is how to fight poverty since a lot of what s wrong in our society can be connected to this. Being involved in CSR, the most important lesson that I have learned is that we must be thankful. I have seen how the lives of teachers have been touched by our Gabay Guro programs and they are always thankful that we reached out to them. In return, they also have touched our lives. For me, the most relevant role of CSR is that it can change the lives of a lot of people. During our recent event at SM MOA Arena, some teachers were even crying out of joy that there was an event to make them happy, even for a day. My CSR hero is my anyone who extends help with a pure heart and a genuine smile. A memorable experience for me in doing CSR work is when a teacher wrote on a piece of leaf her thank you to 2G since she had no pencil and paper to write on at that time. She carved those words on the leaf and gave it to us. I was so touched by her gesture. Later on, I learned that it was her first time to undergo a teacher training, even though she was about to retire. She thanked us since she felt touched by the efforts of the Gabay Guro team to reach out and pay tribute to tireless teachers like her. Jojo Ibay Gabay Guro Team Member My journey to CSR work started when I was assigned to find a teacher with an extraordinary story and passion for her students. I found one in Leyte, which was also my home province, and I was so moved by her story... how she had to drive a motorcycle on her own for 17 kilometers of dirt road just to teach kids. She even has to share whatever she has so the kids can eat and have basic necessities. That encouraged me to volunteer passionately for Gabay Guro. The greatest challenge for our country is poverty that s why every single thing that we do to help even one person will go a long way. Being involved in CSR, the most important lesson that I have learned is that amidst all our problems, we are still very lucky. We are blessed that we have stability in our jobs, we have family and friends to rely on, that we can have meals 3 times a day. We should realize that and be thankful. For me, the most relevant role of CSR is about sharing of blessings. A memorable experience for me in doing CSR work is when I got to know the teacher in Leyte. She even sacrificed her own convenience and time just to reach out to kids in very poor communities. I will also remember the graduation of our 2G scholars. We are very moved seeing some of them graduate at the top of their class and they always say that it was not possible without the help of Gabay Guro. 12 / annual report 2012

13 Karen Claire M. Ulmer Head Marketing, PLDT Global My journey to CSR work started when I was with PLDT Home when we launched PLDT KaAsenso, a new revenue stream and advocacy to educate micro entrepreneurs. It continued when I moved to PLDT Global. The thought of advocacy still persisted as we work with the Overseas Filipino market. I had a better grasp of the struggles and plight of our fellow men abroad and how the combined products and services of the PLDT group aid the Filipinos to be closer to home. The greatest challenge for our country is education. Through PLDT, we can do more programs that will slowly change the face of education. Our advocacies in the various sectors such as OFWs and through PLDT Global, CSR programs like Hakbang Kababayan, Micro businesses of Project Pagsulong by KaAsenso, among others, will help enrich the lives of our fellowmen. We educate our community and our immediate stakeholders. We take out the dependency on other people and teach self-reliance, sustainable growth and transcendence so that our effort to make a difference ripples to other people and hopefully infect a nation. Being involved in CSR, the most important lesson that I have learned is that change takes time and patience. One may not realize it but one small act can make a change one act that affect one person will ripple the effect to others. For me, the most relevant role of CSR is changing and reshaping the lives of the community and hopefully the nation in which we live in to become better-- physically, emotionally and spiritually. We are touching lives by connecting, understanding, educating and eventually reshaping the community and the people that we serve. My everyday work is a constant reminder of how we support our fellow Filipinos in HK, whenever we help the PLDT HK team in producing the Smart and Pinoy Publication and whenever we do the fulfillment of Wishupon-a-smart. CSR work for PLDT Global is memorable because we do it everyday in collaboration with our PLDT HK team. Setting up the PLDT KaAsenso was also a memorable experience for me, as it felt like we are in a way starting a social entrepreneurship kind of business model. I am happy to see how it has evolved in the past years. Ma. Christine Reyes Project Director My journey to CSR work started when I realized that the business sector had the heart and the means to get involved in helping the economically disadvantaged sectors of our society. The greatest challenge for our country is economic inequity; and through PLDT/ Smart, we are addressing this by designing and implementing projects that address the three bottomlines: sustainability through livelihood, leadership and capacity building (social) and environment restoration. Being involved in CSR, the most important lesson that I have learned is creating the opportunity to link business with disadvantaged communities as partners in addressing social and economic inequities and environmental challenges. For me, the most relevant role of CSR is the shared governance and ownership of business, communities and government in addressing local and national challenges that cannot be addressed by any of the three on its own. We are touching lives by using our corporate strengths to help communities overcome their weaknesses. It is heartening to see community members blossom and grow and confidently lead volunteers in forest restoration activities. Jonathan De Quiroz Head/Product Manager PLDT KaAsenso My journey to CSR work started when we started PLDT KaAsenso in 2010 a brand that does not just offer commercial services, but more importantly, creates and implements microbusiness-empowering programs. The greatest challenge for our country is information management we seem to think that there s simply too much demand, but looking closely, there s actually a lot of supply too we just have to properly match the two; and through PLDT, we can do initiatives to help address this. We can create strong connections to bridge the gap between the two. Being involved in CSR, the most important lesson that I have learned is everyone is a stakeholder and the most successful CSR model is one where everyone benefits and is enabled. For me, the most relevant role of CSR is to empower in the most sustainable, relevant and efficient manner. In a constantly changing world, it is critical to always imbibe these three things. My CSR hero is MVP because he perfectly embodies people will never care how much you know (or have), until you let them know how much you care. We are touching lives by connecting people. A memorable experience for me in doing CSR work is working with the future social entrepreneurs of this nation. annual report 2012 / 13

14 Seated from left: Manuel V. Pangilinan, Chairman; June Cheryl A. Cabal-Revilla, Treasurer; Ma. Esther O. Santos, President; Anabelle L. Chua, Trustee. Standing, from left: Napoleon L. Nazareno, Trustee; Atty. Rene Banez, Trustee; Menardo G. Jimenez, Jr., Trustee; Ray C. Espinosa, Trustee; and Ramon R. Isberto, Trustee.

15 PLDT-SMART FOUNDATION, INC. Board of Trustees Manuel V. Pangilinan Chairman Ma. Esther O. Santos President Napoleon L. Nazareno Trustee Atty. Rene G. Bañez Trustee Ma. Victoria A. Rufino-Buenaventura Trustee Anabelle L. Chua Trustee Ray C. Espinosa Trustee Ramon R. Isberto Trustee Menardo G. Jimenez, Jr. Trustee Atty. Ma. Lourdes C. Rausa-Chan Corporate Secretary Officers June Cheryl A. Cabal-Revilla Treasurer Julie C. Carceller Project Manager, Events & Marketing Rafael C. Lopa Project Manager, Community Development Jun R. Florencio Internal Auditor

16 changing lives

17 Uplifting the quality of life of each and every Filipino The PLDT-Smart Foundation (PSF) is a non-stock, non-profit organization that serves as the social outreach arm of the country s oldest and largest telecommunications conglomerate, the Philippine Long Distance Telephone Company (PLDT). In its pursuit for social, political, and economic development, it provides helpful communications tools and various avenues for progress and empowerment through partnerships and tie-ups with non-government organizations, people s organizations and cooperatives throughout the Philippines. Formerly named PLDT Foundation when it was incorporated in August 1994, the PSF is now stronger and more active, leveraging on the strengths of PLDT and its wireless subsidiary, Smart Communications, Inc. since February With the PLDT group s state-of-the-art technologies and extensive reach nationwide, the PSF is maximizing the services, facilities and infrastructure of the companies to be able to give back to the community. Today, the PSF is the expanded version of the former organization, with efforts consolidated and aligned to create a bigger impact in dealing with corporate social responsibility, yielding better and more significant results in connecting people and resources. Headed by PLDT and Smart Chairman Manuel V. Pangilinan, the PSF is now mainly involved with corporate social responsibility programs focusing on various areas such as education, community development, sports and the environment. All these endeavors are committed to one singular goal that of fulfilling the needs and uplifting the quality of life of each and every Filipino. Vision A connected, enlightened and productive Philippines. Mission 1. To provide help and support to those who need it in our areas of strength and competency. 2. To facilitate the empowerment of the Filipino people through the utilization of information and communications technology. 3. To extend products and services to people, reaching out above all to those who cannot afford it. 4. To focus on growth in seven key areas: livelihood and microfinance, education, disaster preparedness, youth, poverty alleviation, sports, and the arts. 5. To provide an efficient, cost-effective medium for multi-sectoral coordination and communications. annual report 2012 / 17

18 Gabay-Guro: Changing the lives of those who changed ours Gabay Guro or 2G is one of the flagship projects of the PLDT-Smart Foundation and supported by the PLDT Managers Club Inc. that aims to enhance education in the country through scholarship grants and English proficiency and computer literacy training programs for teachers. It also aims to help teachers augment their income through livelihood projects. By helping mold excellent teachers, 2G hopes to spread the gift of learning to many more students in the country and thereby help in nation-building. 2G s core programs are anchored on 6 pillars: 1) educational grants, 2) continuous teachers training, 3) teachers tribute, 4) livelihood programs, 5) broadbanding public schools [we also provide new computers on a case to case basis], and 6) housing and educational facilities. Total scholarship grants increased year per year, totalling 705 scholars for School Year 2013 and garnering 164 graduates. In 2012, Simpleng Handog, a testimonial dinner for its 2nd batch of scholar-graduates, was graced by no less than PLDT Chairman Manuel V. Pangilinan and PLDT President & CEO Napoleon L. Nazareno. Adding glitter to the occasion was the moving force behind 2G- PLDT Controller and 2G Program Chairperson Chaye A. Cabal-Revilla, along with PSF President Esther O. Santos and the 2G Volunteers from PLDT Managers Club, Inc (MCI). Simpleng Handog bestowed recognition to 2G scholar graduates for their exemplary performances in completing their education, preparing them 18 / annual report 2012

19 for their big role in nation building as educators. This year s batch consists of 38 graduates from six partner schools. The graduates were led by Joe Anthony Basco of PNU Quezon who graduated BEED (Bachelor of Elementary EDucation)- magna cum laude and a recipient of 4 other excellence awards. Another 12 scholars graduated cum laude while several others achieved special excellence awards from their respective schools. Each of the honor graduates and special awardees received cash incentives from Gabay Guro/PSF. 2G has by far produced 1 magna cum laude, 19 cum laudibus and a number of special achievement awardees from the 67 graduates of Batches 2010, 2011 and annual report 2012 / 19

20 Teacher s Tribute Card. The Gabay Guro Tribute Card is a special way of giving back to teachers the love and support they truly deserve. It is packed with freebies, perks and discounts that teachers can benefit from greatly, through partnerships with SMEs and corporate establishments. Teachers can avail of the Gabay Guro Tribute Card by simply participating in any Gabay Guro activity in their areas and apply onsite or apply online. Just present the card to partner commercial establishments of the PLDT-Smart Foundation to avail of privileges. Ever since the Tribute Card was launched, more than 10,000 teachers have received this gift. Teacher s Training is likewise an ongoing endeavor. Gabay Guro s Training Team offers various training modules. Among others are English Proficiency Training, Computer Enrichment Program, and the Teachers Treasure Chest Training, aims to rekindle the passion to teach. In the past year, 8,311 teachers benefited from these various trainings. Another Gabay Guro s projects is Computerization and Broadbanding of schools to further education with the help of technology. Even remote campuses deserve a chance to learn with them. Gabay Guro gave away SmartBro dongle units to as far as Lyceum de Camiguin, Babuyan Islands to provide them connectivity and access to internet. Gabay Guro also donated brand new computers and a computer laboratory to various schools across the country. The wellbeing of every teacher is taken into account. That s why training programs usually come with livelihood seminars that update our educators on options available to them. This includes a housing project in Daet that Gabay Guro is carrying out in coordination with the Department of Education s Project Shelter. A total of 150 teachers are meant to benefit from that housing project while new housing sites are currently on the shortlist for the following cycle. On September 2012, Gabay Guro donated 4 classrooms to public schools in Cordova, Cebu. Last but not the least, a deep appreciation for teachers and their contribution to nation building is underlined by Teacher Tributes that have become an integral part to Gabay Guro. It comes in the form of Tribute Cards, of which over 10,000 have been distributed to give teachers access to discounts from several Gabay Guro partners. In 2012, the revelry was an entire Teachers Week Celebration that included trainings, experience to be studio audience, and dinner with PLDT Chairman, Mr. Manny V. Pangilinan. And as a matter of tradition, the culminating activity to give tribute to teachers during week is the Gabay Guro Grand Gathering held at the SM MOA Arena. The event was the biggest ever! Over 15,000 teachers had fun and were entertained by the country s top artists and singers. The biggest surprise of the event was felt by Sarah Jane Gabat, a Grade 2 teacher from Cemembo Elementary School when she won a house and lot courtesy of Camella Homes. 20 / annual report 2012

21 More than 13,000 teachers filled up the SM MOA Arena last October 28, 2012 for the Gabay Guro Grand Gathering Teachers from various schools, towns, provinces attended the yearly event. Chaye Cabal-Revilla was joined by Mr. Charles Lim of Smart and Sun Cellular, and Mr. Ariel Fermin of PLDT Home. Teachers are having fun as they participate in various song and dance number during the Gabay Guro Grand Gathering Mrs. Cynthia Villar of Vista Land awards the symbolic key to the brand new house and lot to lucky winner, Sarah Jane Gabat of Comembo Elementary School, Makati City. Photo op with the Gabay Guro volunteers and house & lot winner, Sarah Jane Gabat. Joined by Ms. Nora Aunor and Mrs. Cynthia Villar. annual report 2012 / 21

22 An Innovative Bootcamp for Project Pagsulong Project Pagsulong is a P1 million youth challenge to help alleviate poverty -- inviting young Filipinos (18 to 30 years old) to form a team (with 3 to 5 members) and come up with innovative business ideas good enough to stand against proposals from other teams, as well as viable enough to provide real-life solutions for alleviating poverty. It s a team project of a lifetime: with cash grants, and pre- and postproject coaching and mentoring from partner institutions and Ten Outstanding Students of the Philippines (TOSP) alumni to see the fruition of their ideas the right way. In 2012, Project Pagsulong wrapped up its nine-day boot camp on October 28 at the First Pacific Leadership Academy (FPLA) in Antipolo City. Chosen by a panel of veteran entrepreneurs, investors, and industry experts, the Top 10 Finalist Teams were mentored by some of the local business leaders on various facets of entrepreneurship, helping them improve and concretize their social enterprise plans. The boot camp, which kicked off last October 20 and finished on October 28, was an intense, hands-on social entrepreneurial session that taught the finalists the ins and outs of starting a business and how social enterprise plays a role in nation-building. The finalists, representing 10 teams from across the country, spent their days listening to acclaimed entrepreneurs, business leaders, and respected lecturers, who drilled them on developing their business plans as part of the boot camp s purpose to make their ideas more feasible in the market. Local successful entrepreneurs shared their entrepreneurial journeys, which tremendously motivated the finalists. Among the talks during the boot camp were: the role of social enterprise in nation-building by ECHOStore founder Pacita Juan, setting the entrepreneurial mindset by GoNegosyo executive director Ramon Lopez, the Binalot story by Binalot Fiesta Foods president Rommel Juan, the Human Nature story by Gandang Kalikasan, Inc., co-founder and president Anna Meloto-Wilk, sustaining social enterprise by Marina Gana Vida co-founder Jonah Nobleza, leveraging ICT in social enterprise by IdeaSpace Foundation co-founder YOUTH SOCIAL ENTREPRENEURSHIP In partnership with: 22 / annual report 2012

23 and president Earl Valencia, and bringing together social and enterprise in social enterprise by Asia Social Enterprise Incubator co-founder John Paul Malgazo. Other speakers present during the boot camp were Professors Nestor Raneses and Debbie Wong from University of the Philippines Diliman, Dr. Ryan Guinaran from Doctors for Indigenous Health, and Clint Navales from Procter & Gamble Philippines. Apart from the talks throughout the week, the participants went through several formation sessions where they were given background on social enterprise and nation building; underwent skills workshop to clarify and deepen their understanding of the process from ideation to application; and prepared action plans in order for participants to focus their ideas and decide which steps to take to achieve their goals. Project Pagsulong, supported by PLDT KaAsenso, PLDT-Smart Foundation, The Outstanding Students of the Philippines-Alumni Community (TOSP-AC), RFM Foundation, IdeaSpace Foundation, GoNegosyo, and Draftfcb Manila, culminates in March annual report 2012 / 23

24 Boosting the Dynamic Learning Program The PLDT-Smart Foundation, in partnership with Smart Communications, Inc., has rolled out simultaneous half-day orientation seminars in various schools in Luzon, Visayas, and Mindanao. The orientation seminar would encourage participants to adapt the Dynamic Learning Program (DLP), which was first implemented at the Central Visayan Institute Foundation (CVIF) in Jagna, Bohol by doctors Christopher Bernido and his wife Ma. Victoria to develop potential of the school children. This was followed by one-day writeshops, as well as simultaneous three-day Learning Physics as One Nation (LPON) seminars. All these were done in order to help Filipino students become globally competitive. Being staunch advocates for education, PSF and Smart have committed to help the Bernido couple, 2010 Ramon Magsaysay awardees and theoretical physicists, spread the good news about the DLP. We are supporting the DLP because we believe in the program and the commitment of the Bernido couple to uplift the quality of education in our country, said Ma. Esther O. Santos, PSF President. We are proud to become part of this noteworthy initiative. This is the kind of investment that would give good returns. We ve been thinking how to help a child reach his full potential. For our country to be productive in the 21st century, we must have an army of engineers and scientists. We must improve our educational system, said Dr. Christopher Bernido. First implemented in CVIF, which is owned by Dr. Christopher Bernido s mother, the DLP is now being used as a teaching method in 200 public and private high schools in the provinces of Bohol and Basilan as well as the cities of Cagayan de Oro and Lamitan across all subjects, and in over 600 schools for Physics that is meant to address the chronic shortage of teachers proficient in that subject. This learning method is characterized by activity-based multi-domain learning, parallel classes, in-classroom protocols for sustained/independent learning, and strategic rest. Using the prescribed curriculum of the Department of Education, a high school student develops his or her fullest potential even without any homework, with academic days only four times a week and an equivalent to only one period a week contact time with the teacher. In the short time that it was implemented, the students who underwent DLP showed the following results: Increase of passers of the UP College Admissions Test and other entrance exams of colleges and universities, and DepEd annual standardized exams; Greater accountability of and cooperation among teachers, and the developed responsibility and discipline among students. It is likewise noteworthy that despite Typhoon Sendong s ravaging of schools in the program s pilot implementation in CDO City, the students still got a highly significant learning gain in all three subjects (Science, English and Math) in all year levels, based on the testing conducted by the Center for Educational Measurement. 24 / annual report 2012

25 MVP Academic Excellence Awards for 256 Scholars Employees of PLDT and Smart stood as proud parents at the 2012 MVP Academic Excellence Awards (MVPAEA). An annual endeavor of the PLDT-Smart Foundation, the MVPAEA rewards hardworking parents and their outstanding kids with an educational grant. The grant gives a significant contribution for tuition and academic expenses for elementary, high school and college students. This is one of the events we look forward to in PSF as it is a family celebration as well as a nation-building program, said PLDT-Smart Foundation President Ma. Esther O. Santos. We reflect the stand of our Chairman MVP and our Board of Trustees who have always placed great importance on getting a good education and hard work. This is the 8th year that PSF has maintained this educational grant to children of our employees and we intend to continue this program to serve you, the children of our employees. It reflects our commitment to education in this country and of course it is a way of helping the children of our employees to reach the level of excellence they should be striving for to become useful citizens of this country, said PLDT Chairman Manuel V. Pangilinan. The PNP dependents with officials from PSF and PNP, which includes PSF President Ma. Esther O. Santos, PNP Director General Nicanor A. Bartolome, PLDT ALPHA Corporate Relationship Business - Government Head Anton Lim and Police Deputy Director General Emelito T. Sarmiento. PSF supports PNP dependents with scholarship grants Another set of qualified scholars received grants from the PSF Educational Assistance Program that provides college educational opportunities to dependents of PNP uniformed personnel who were killed in actual performance of duty, complete disability, discharged, wounded or incapacitated in their line of duty, and those dependents who graduated with honors. Through the PSF-PNP Educational Assistance Program, PSF gives back to those who risk their lives in the line of duty by aiding the children of heroic policemen who were injured or killed in action. Turning over P500,000 worth of scholarships, PSF President Ma. Esther O. Santos, assisted by PNP Chief Director General Nicanor A. Bartolome, led the ceremonial turnover of cheques to 50 deserving dependents at the PNP General Headquarters. PSF has been providing scholarship grants to PNP dependents in support of the PNP Integrated Transformation Program. Since the educational assistance started in 2008, the program has helped 200 deserving students defray their tuition fees and other school-related expenses. annual report 2012 / 25

26 reaching out

27 All Out Relief for Habagat Victims Three days after Habagat, PLDT Chairman Manuel V. Pangilinan led the companies under his stewardship to the evacuation centers of his hometown Pampanga. Supported by the PLDT- Smart Foundation and the PLDT ComRel Division, MVP personally helped in the distribution of relief goods to the flood victims. MVP s convoy along the North Luzon Expressway included contingencies from the PLDT Group, Manila North Tollways Corporation, One Meralco Foundation, Maynilad, Smart Gilas, epldt and TV5. Even the basketball players of Smart Gilas participated in the relief operation. Members of the Smart Gilas Pilipinas national basketball team took a break from their practice to visit evacuation centers in San Fernando, Pampanga where a number of families were affected by the Habagat flood. The team led by team manager Butch Antonio and coaches Chot Reyes and Jong Uichico handed relief bags from PSF. The support of PLDT employees, in kind and in cash, was able to raise P650,000 a substantial amount that allowed Project Sunrise, a campaign led by PSF Trustee Butch Jimenez to reach 8,000 families in various floodstricken areas. Seeing the smiles and heartfelt thank you s of the people we helped during this difficult period strengthened our resolve to continue our efforts. This would not be possible without the generous support of our dear PLDT employees, and for this, we are truly grateful, said Ma. Esther O. Santos, PSF President. The Luzon Asset Protection Division (LAPD) also mobilized their team to conduct rescue missions. Together with the Bulacan CS Zone and ComRel, their reach extended even to the most flooded areas. Utilizing the learnings from their rescue training, the LAPD brought rubber boats to Minalin, Pampanga, Balanga, Bataan and Catmon, Bulacan. There, they helped distribute thousands of relief goods, and aided in the rescue of PLDT employees at the SFP Exchange office. Through the gallant efforts of the Bulacan CS Zone and the LAPD, we were able to help 500 families in Apalit, Pampanga, 510 families in Malolos, Bulacan and 500 families through the Asikasong Bongbong organization. We are proud of every PLDT employee who helped out those who donated goods, and those who donated their time, effort and heart in this significant mission, said Evelyn Del Rosario, PLDT ComRel Head. PLDT SME Nation, together with the winners of the Bossing Awards, also donated relief goods through the help of PSF. Lamoiyan Corporation donated 200 dental hygiene packs; Regal Films gave 2,232 canned goods; HBC and Absolute water gave 50 and 10 cases of drinking water, respectively; CDO donated 20 boxes of canned goods; Go Negosyo and RFM gave 72 cases of Aloe Green Tea; Silver Works gave 120 packs of relief goods and two sacks of rice; R. Lapid s donated 100 packs of relief goods; North Park had 16 boxes of relief goods; Generics Pharmacy gave two boxes of medicines; and Felix Ang donated P20,000 cash. Through the continued efforts of ComRel and PSF, PLDT will be able to provide assistance to flood victims even after the waters have dried out. As people begin to rebuild the homes they lost, it is important to let them know that they have an ally who can truly help them change their lives. annual report 2012 / 27

28 Forming Tulong Kapatid Tulong Kapatid is the consolidated CSR and disaster response of the MVP Group of Companies. It is committed to help the communities such as Davao Oriental and Compostela Valley which were extremely devastated by Typhoon Pablo in December Manuel V. Pangilinan, Group Chairman, led the launch in November He said: "Disasters do happen, and it is our responsibility to be prepared for them. Our businesses have to be key players in any crisis or emergency because it is our duty to the community to ensure that vital services -- communications, power, water, news, hospitals, roads -- are maintained in the event of a disaster." Tulong Kapatid is not just a publicity stunt for the group in times of disaster, but MVP stressed that it is the spirit that demands the best from all of the people in worst times. "In times of disaster and emergency, we need to come together like a band of brothers. We need a seamless coordination under extreme conditions. This will require cooperation from all of us," said MVP. The first priority in times of disaster remains the restoration of operations and facilities. "Our CSR groups and our foundations must reach out to the public and find out who needs assistance," said MVP. The first major activity of Tulong Kapatid was in December 10 when it sought to raise P100 million for victims of Typhoon Pablo, coming together for a four-hour telethon that kicked off on TV5, Radyo Singko, and Aksyon TV. Officials of the MVP group, led by MVP himself, raised public awareness as well as actual support for the towns of Cateel and Boston in Davao Oriental and New 28 / annual report 2012

29 Bataan in Compostela Valley which had been devastated by Typhoon Pablo. More than 90 percent of the towns' populations have been rendered homeless and without access to clean water and more than one million families were affected by Typhoon Pablo s rains, floods, and winds. In fact, even President Benigno Aquino III delivered a special message during the telethon, encouraging every Filipino to help, in any way, the people of Mindanao. "Malaki po ang maitutulong ng inyong inisyatiba upang maipadama sa ating mga kababayan na hindi sila nag-iisa," he said. In just six hours, Tulong Kapatid was able to raise P100 million for Pablo victims. It will also support the construction of schools in Davao Oriental and Compostela Valley. Tulong Kapatid also committed to support the construction of housing units through a MOA signing with Davao Oriental Governor Corazon Malanyaon. "The MVP Group of Companies is the first private sector to heed our call for help and provide us with the much-needed assistance on housing. MVP's exemplary practice of CSR upholds what it stands for in making a positive impact in our people's lives and those of others," said Gov. Malanyaon. "It is our wish that our province would be the showcase of the MVP magic." As part of the post-disaster efforts under the auspices of Tulong Kapatid, Smart distributed learning kits to elementary students from partner-schools in Davao Oriental that were affected by Typhoon Pablo. They also endorsed to each of 15 schools two emergency kits and a LifeStraw Family water purifier. Close to a hundred teachers from the schools also received teaching kits that included manila papers, masking tapes, long plastic envelops, crayons, permanent markers, bond papers, pens, protractors, rulers, lesson plans and ink for permanent markers. Many of the schools facilities were damaged during the typhoon. annual report 2012 / 29

30 PSF at CSR Expo An out-of-the-box education program that features lots of intense classroom work but no homework and no books. A new flood monitoring program that promises to rewrite the rules of disaster preparedness. A program that allows a patient in Mindanao to be operated on by a specialist in Makati via mobile Internet. These are just some of the CSR programs of the PLDT Group showcased at the CSR Expo 2012, emphasizing the convergence of its services and resources to improve the lives of Filipinos. More than just bridging people, the PLDT- Smart Foundation (PSF), together with PLDT and Smart Communications, Inc. are committed to make use of information and technology as tools to enable its partners towards nation building via the various CSR initiatives in education, health, environment, disaster preparedness, and livelihood. The booth at the CSR Expo, which PSF shared with One Meralco Foundation, had an artwork for a backdrop depicting the group s CSR efforts and scenes showing how the services offered by the group connect and empower communities. Those who visited the PSF booth at the SMX Convention Center also had fun with the Spot MVP game where they had to identify the many faces of PLDT chairman Manuel V. Pangilinan in the artwork and got the chance to win prizes in the raffle. Tents donation Huawei, a leading global information and communications technology solutions provider, supported the PLDT-Smart Foundation s disaster response efforts. Huawei donated tents that will be given by PSF to disasterstriken communities and evacuation sites. Indofood donation Indofood, one of the biggest food manufacturers in Indonesia, donated goods to aid PSF's efforts during typhoon and disaster relief. Some of the goods donated by Indofood included Promina for babies, and Pop Mie instant noodles. 30 / annual report 2012

31 Supporting CineFilipino CineFilipino, organized by the PLDT-Smart Foundation, MediaQuest, Studio 5 and Unitel Entertainment, launched its search for the next great Filipino digital film by offering a production grant of P1.5 million each to eight filmmakers. We are supporting CineFilipino since the MVP Group believes that nation building can start by appreciating what we have as a nation. Through this festival, we are able to showcase the best of the new wave of filmmakers, said Ma. Esther O. Santos, PSF President. The fest s feature-length section is open to both new and seasoned filmmakers. On the other hand, the festival s shorts section is open to students where 10 short films will be chosen. CineFilipino will be held in March of 2013 in various cinemas all over the metro. 3 2 People Saving the Future T-shirt Design Contest PLDT and Smart employees submitted their best T-shirt design in the People Saving the Future contest. The winning entry became the official design of the PSF Volunteer s shirt for the International Volunteers Day held last December 5. After deliberations, the 1st place went to Cesar C. Malabag of the PLDT South Luzon Core Network-Lipa. The second place went to Rex O. Lazarte of the Smart Technology Services Division, while third place went to Ram M. Anciro of the PLDT Alpha Corporate Business. Cesar was very elated that his design was picked from more than a hundred entries. In fact, it was very appropriate that he took the top award as he is a good example of what a volunteer should be. He shared this story on how he became a volunteer even if it was not related to his work. I was inspired to join the T-shirt design contest because it centers on volunteerism. I recalled the time when I joined the PLDT Medical & Dental mission including a tree planting which was held at Tingloy, Batangas. The event was headed by the ComRel group of Evelyn del Rosario together with other PLDT employees. Being a volunteer, I went to the mission even without personal motives but to help others even in my own little way. Di po pala nararamdaman ang hirap at pagod kapag may mga tao kang natutulungan at napapasaya... Last November 1, 2012 was my 50th Birthday and I want to make it extraordinary. Before, I used to celebrate with overflowing food and drinks and videoke. But that time, I made my Golden Birthday a simple one. I asked the assistance from one of our Barangay Councilman for the list of 35 low income families. I gave each family a basket of goods which included rice, canned goods, noodles, etc. With the help of my family and friends, it was a success. I felt good from helping others. Since we only came from a humble background, I know the feeling of having nothing and I now resolve to help others as long as I can. 1 annual report 2012 / 31

32 For birthing clinics PLDT-Smart Foundation donated P2 million to the Kapampangan Development Foundation (KDF) for the Iligtas si Nanay Project, an endeavor that supports the construction of 12 satellite birthing clinics in Pampanga. Iligtas si Nanay Project will enable local midwives to provide safe, proper and hygienic birthing conditions to mothers. Photo shows PSF President Ma. Esther O. Santos (3rd from left) turning over the check donation to KDF President Benigno Ricafort. Others in photo are, from left: KDF Executive Director Sylvia Ordoñez and PSF staff Madonna Hernandez. Gift-giving PSF provided gifts to our Aeta brothers and sisters in coordination with the Tollways Management Corp. Operation Casili To reach their school, students have to cross a treacherous upstream flow of the Wawa Dam in Rodriguez, Rizal. Through the efforts of Darwin Flores of Smart/PDRF, the plight of the students and their teachers garnered online and media attention. In 13 days, contributions poured in from Darwin s FB friends and corporate contacts: Life jackets for teachers, slippers and school supplies for the children and toilet bowls for the school were turned over by PLDT-Smart Foundation, One Meralco Foundation and Smart for the benefit of the teachers, students and parents of Casili Elementary School. Aiding Rizal Medical Center Members of the companies from the First Pacific Group visited the Rizal Medical Center in Pasig City together with some executives of the Metro Pacific. PSF President Ma. Esther O. Santos led the turnover of DVD players and assisted the top executives in distributing gifts to patients and their family. The event also coincided with the Makati Medical Center Foundation s launch of their program to provide strategic and sustainable programs for its partner public hospital. Computers for Balulang School PSF aided in the efforts to rehabilitate a school in Cagayan de Oro City which was damaged by Typhoon Sendong. The school lost its entire computer laboratory due to the calamity. Responding to this need, PSF donated 10 brand-new computers and funded the repair and renovation of the lab. Bahay Pag Asa Opens The formal opening of Bahay Pag-Asa in De La Salle Dasmarinas was attended by its supporters led by former Chief Justice Hilario Davide, Jr. It is a facility established by the Lasallian Brothers to help rehabilitate children who are in conflict with the law and will serve as a center for them to learn and be led to a brighter future. 32 / annual report 2012

33 Sending Cheer On December 5, International Volunteer s Day, the MVP CSR Council held Paskong Kapatid, a program which gathered 200 kids from various partner communities of the companies under the First Pacific Group. In the morning, the kids from Casili Elementary School were given a free tour of the Manila Ocean Park sponsored by Smart Communications Public Affairs Group. Jollibee Foundation sponsored the kids lunch at SM Mall of Asia, where in the afternoon, PSF also treated them to a visit to the Nido Science Discovery Center together with the kids from Catmon Elementary School. Late in the afternoon, employee-volunteers from the different companies of the First Pacific Group converged at the Meralco Compound to give the kids an afternoon of storytelling by Batibot artists, face painting, picture taking with Kiko Meralco, Batibot mascots, and Santa Claus. After the ceremonial lighting of the Liwanag Park, the kids went to ride and have picture taking on the train and e-jeepneys. The event was made more special as top executives and Board Members from First Pacific participated in the gift-giving event. As a continuation of Paskong Kapatid, PSF, PLDT Community Relations, and the Philex Group Foundation, Inc. also sent early Christmas cheer to almost 2,000 students in Benguet. Audio-visual materials, books, and other school supplies were distributed to the students of Philex Mines Elementary School and other schools in remote areas, including Sitios Piminggan and Sioco-Carino, both Tuba s Brgy. Ansagan, and in Brgy. Ampucao, Itogon. This educational outreach activity is a big help to our students who brave walking for hours just to get to school and learn, said Sioco-Carino head teacher and cluster head Mildred Marquez. annual report 2012 / 33

34 STATEMENT OF MANAGEMENT S RESPONSIBILITY FOR FINANCIAL STATEMENTS The management of PLDT-Smart Foundation, Inc. ( the Foundation ) is responsible for the preparation and fair presentation of the Foundation s financial statements for the years ended December 31, 2012 and 2011 in accordance with Philippine Financial Reporting Standards. This responsibility includes designing and implementing internal controls relevant to the preparation and fair presentation of the Foundation s 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 Trustees reviews our financial statements before these are approved and issued. SyCip Gorres Velayo & Co., the independent auditors appointed by our Board of Trustees, has audited the financial statements of the Foundation in accordance with Philippine Standards on Auditing and has expressed their opinion on the fairness of presentation upon completion of such audit in their report to the Foundation s Board of Trustees dated April 4, Manuel V. Pangilinan Ma. Esther O. Santos June Cheryl A. Cabal-Revilla Chairman of the Board President & Chief Executive Officer Treasurer 34 / annual report 2012

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