Enriching our Communities

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1 Our Mission Helping people help themselves Our Vision To be the neighbor of choice in the areas where our companies operate, Inc. is the social development arm of the Aboitiz Group. Established in 1988, the Foundation implements corporate social responsibility (CSR) interventions in areas where Aboitiz companies operate. Its CSR projects and programs target development needs in four components education, enterprise development, primary health and child care, and environment. In the last 23 years, the Foundation has been working on enriching the lives of Filipinos, especially in Aboitiz host communities, nationwide. Enriching our Communities

2 Financial Highlights * (in thousand pesos) ABOITIZ GROUP INITIATIVES Per Program Component Total allocation for Aboitiz CSR projects in 2011 reached P391 million Projects supported were in the areas of education, enterprise development, primary health and child care, environment, and corporate donations and other initiatives Bulk of funding went to education at P249 million Most projects were implemented in Luzon (35%) and Visayas (30%) Primary Health & Child Care 21,483 5% Environment 12,144 3% Enterprise Development 34,204 9% Education 248,860 64% Corporate & Other Donations 74,754 19% Per Location Nationwide 56,278 14% Metro Manila 10,157 3% Luzon 135,288 35% Mindanao 70,536 18% Visayas 119,186 30% *The graphs in this page are a visual representation of the breakdown of the s projects in terms of program component and location. Figures under Aboitiz Group CSR Initiatives represent the total financial allocation of both the (2nd column) and business units of the Aboitiz Group (3rd column) for various CSR projects in 2011.

3 Primary Health & Child Care 17,455 Environment 10,352 4% 6% Education 191,717 69% ABOITIZ COMPANIES DIRECT CSR INTERVENTIONS Primary Health & Child Care Environment 4,028 1,792 Enterprise 2% 4% Development 4,617 3% Education 57,143 50% Enterprise Development 29,587 11% Corporate & Other Donations 47,792 41% Corporate & Other Donations 26,962 10% Nationwide 21,289 8% Mindanao 53,096 19% Visayas 110,255 40% Metro Manila 10,157 4% Luzon 81,275 29% Luzon 54,013 47% Nationwide 34,989 30% Mindanao 17,440 15% Visayas 8,930 8%, INC.

4 From your Chairman and President Every endeavor we undertake in the is done with passion and a lot of heart. As the implementing arm of the Aboitiz Group s corporate social responsibility (CSR) programs, we are driven by our passion to serve, continuously finding ways to fulfill our mission to help people help themselves. We put a lot of heart into what we do, initiating and developing sustainable projects for our communities across the country, and entering into strategic partnerships for greater impact and wider coverage. By fusing passion, heart and the talents of our team members and volunteers, the Foundation has evolved into an organization deeply committed to enrich the lives of more people and more communities with each passing year. The Foundation has been helping people and communities for over two decades now. Through the years, we have been consistent in focusing our assistance on the areas of education, enterprise development, primary health and child care, and more recently, the environment. By fusing passion, heart and the talents of our team members and volunteers, the Foundation has evolved into an organization deeply committed to enrich the lives of more people and more communities with each passing year. It was a banner year for the Foundation in 2011 as we were able to expand our reach and substantially implement more projects. We implemented various CSR projects nationwide amounting to Php276 million compared to the Php95 million that we allocated in 2010, allowing us to do more for our communities. We also intensified our knowledge and skills transfer to our business units (BUs), training them to independently implement their own CSR projects. Their initiatives alone translated to Php115 million worth of projects that they directly funded and implemented in their respective areas of operation. This brought to Php391 million the consolidated amount spent by the entire Aboitiz Group for CSR projects in Our flagship intervention continues to be focused on education, which had an allocation of Php192 million for 2011 or 69% of the total expenditure for the year. We believe that providing underprivileged children with access to education, especially in their formative years, could help increase their chances of achieving a better future for themselves. We appropriated funds for the construction of 146 classrooms; 94 of these were regular classrooms while 52 were for preschoolers nationwide and built through our partnership with the Aklat, Gabay at Aruga Tungo sa Pag-angat at Pag-asa (AGAPP) Foundation. AGAPP s target is 1,000 classrooms by June It was also a fruitful year for our enterprise development efforts. We expanded our microfinance portfolio, in terms of loans granted and areas covered. After our success in Cebu, we decided to implement the program in Benguet and Davao. We also trained our funding recipients, mostly cooperatives, with the knowledge and skills needed to implement and manage sustainable livelihood projects. We granted loans to organizations with a good track record in entrepreneurship, those committed to build their enterprise for the benefit not only of its members but for the community at large. We are very pleased with our funding recipients repayment rate of 96%, allowing us to plow back funds to benefit more beneficiaries. We hope this will result in an ever-growing cycle that will benefit more communities over time. Primary health and child care is another program that remains close to our heart. In 2011, we increased our allocation for this program, allowing us to help more families and more communities. Thousands have benefited from our regular medical, optical and dental missions all across the country. We continued to build water systems to ensure the well-being of residents in our host communities. On the environment, we are expanding our involvement in projects related to its protection and preservation. We are on track with our Aboitiz Passion for Reforest and Agroforest to Keep (APARK) initiative, a biodiversity enhancement program of the Group that seeks to plant 3 million trees by the year In 2011, we planted 850,000 seedlings, mostly of the indigenous variety, bringing to 2 million the total number of trees planted so far. This number of trees is estimated to sequester an equivalent of 46,000 tons of carbon dioxide annually. We implemented various CSR projects nationwide amounting to Php276 million; allowing us to do more for our communities. Opportunities abound for the Foundation to assist in areas where our companies operate. However, we acknowledge that we cannot achieve our goals on our own. We therefore continue to build and strengthen our partnerships with groups that share our goal to empower communities and to help improve the quality of life of our fellow Filipinos. Over the years, we have been partnering with local government units and host communities to meet the social development needs of the community. We have linked with non-government organizations (NGO) such as AGAPP and Education Reform Movement, an NGO implementing the Bayanihan Pampaaralan (BP) project, through the Philippine Business for Social Progress (PBSP) and the League of Corporate Foundations (LCF). The goal of both the AGAPP and BP is to build classrooms all over the country within two years. 144 Annual Report

5 From your Chairman and President We have forged partnerships with organizations like Hapinoy and Winrock International-AMORE3 (Alliance for Mindanao & Multi-Regional Renewable / Rural Energy Development) to tap microentrepreneurs in the solar electrification of rural communities in Luzon and Mindanao, respectively. These projects will see fruition in We recently established the Weather Philippines Foundation, Inc., which will install 1,000 weather stations nationwide that will provide critical weather information for better disaster preparedness. Thus far, this is the Aboitiz Group s biggest CSR contribution to the country. We continue to be actively involved in national organizations like PBSP, LCF, the Association of Foundations, and the Philippine Council for NGO Certification. As we pursue growing our CSR and deepening our commitment to it, our team members Group-wide are likewise keeping pace, similarly unwavering in their commitment to serve our communities. They plant trees; clean schools and repair broken fixtures during Brigada Eskwela; implement various Adopt-a-School projects; feed underprivileged children; hold tutorial classes; and volunteer in disaster relief operations and other outreach activities. In all these initiatives, the Foundation team is always there to help make things happen. We would like to thank them for being the hands-on and on-ground implementors of our various projects, selfless and persevering in making a difference in the lives of our beneficiaries. We are grateful to the different BUs across the Aboitiz Group for their continued active support of the Foundation s mission. We thank our Board of Trustees for their guidance and their trust, and our donors whose generosity allows us to serve more communities. We are especially appreciative of our team members Groupwide for their voluntary contribution of time and effort in the Foundation s many endeavors. There is still so much to be done for our communities and we assure you that the Foundation will pursue finding ways to help more people help themselves. We will continue to be our host communities neighbor of choice, empowering them to fulfill their dreams, enriching their lives and those of their communities. We acknowledge that we cannot achieve our goals on our own. We therefore continue to build and strengthen our partnerships with groups that share our goal to empower communities and to help improve the quality of life of our fellow Filipinos. Erramon I. Aboitiz Chairman Jon Ramon Aboitiz President 146 Annual Report

6 From your Managing Trustee The year 2011 was a remarkable one for the. A substantial increase in our budget enabled us to strengthen our relationships with partner communities as we shared values to help build and fulfill the dreams of our host communities, and enrich their lives. We embarked on initiatives that empowered community-based cooperatives in areas where Aboitiz Group business units operate and trained their CSR teams to strategically identify projects that beneficiaries really need. These developments allowed us to implement more projects and reach out to more communities. We judiciously identified and implemented projects in the areas of education, enterprise development, primary health and child care, and environment to ensure that these are sustainable enough to benefit more beneficiaries. In 2011, the Foundation appropriated Php276 million for its various social development initiatives, as against our initial budget of Php250 million for the year. We judiciously identified and implemented projects in the areas of education, enterprise development, primary health and child care, and environment to ensure that these are sustainable enough to benefit more beneficiaries. Education As in the previous years, education remained the Foundation s major thrust for Of our total appropriation, education-related initiatives amounted to Php192 million, or 69% of the budget. We appropriated funds for the construction of 94 classrooms, provided 2,421 scholarships, and donated various equipment and books. Noteworthy among these projects is our partnership with the Aklat, Gabay at Aruga Tungo sa Pag-angat at Pag-asa (AGAPP) Foundation, in which we have turned over 52 classrooms to AGAPP and community beneficiaries. For 2012, we commit to construct 42 more classrooms under the AGAPP partnership. These donations bring to 452 the total number of classrooms that we have donated since the Foundation was established 23 years ago. Enterprise development Under our enterprise development component, we gave out loan packages totaling Php25.7 million to several cooperatives across the country. These loans allowed our partner cooperatives to implement different livelihood projects and skills training programs. We also organized capability-building programs not only to equip members of cooperatives with additional livelihood skills but also ensure the sustainability of the projects they are implementing. Primary health and child care More projects under the primary health and child care program were implemented last year due to the increased allocation of funds. With Php17 million in funding, we implemented several medical/dental/ optical missions and approved the construction of water systems. Complementing the Foundation s projects were the CSR initiatives of companies under the Aboitiz Group. These business units directly funded Php115 million worth of community projects, with half of the amount spent on education-related initiatives. The companies significant contribution of resources brought to Php391 million the total amount that the Group has allocated for various CSR projects. Environment As part of our biodiversity enhancement efforts, we planted 850,000 seedlings all over the country during our simultaneous tree planting activity in More trees will be planted in the coming years as part of our support to the Aboitiz Passion for Reforest and Agroforest to Keep (APARK) initiative, which seeks to plant 3 million trees by the year To be able to further expand our reach, we enhanced our partnerships with local government units and community beneficiaries. We also started linking up with organizations whose programs complement our goals to help people help themselves and be a neighbor of choice. Employee-initiated In 2011, we also saw more team members volunteering in different employeeinitiated activities. These projects included the Group-wide tree planting, Christmas outreach, Brigada Eskwela and Adopta-School. With the Foundation in the lead, team members of Aboitiz Group companies nationwide also involved themselves in relief operations to help those who were displaced by tropical storm Sendong. Their quick response enabled the Foundation to help 18,165 families in Cagayan de Oro and Iligan cities, and in Negros Oriental. 148 Annual Report

7 From your Managing Trustee However, we in the Foundation realize that there is still more to be done. To be able to further expand our reach, we enhanced our partnerships with local government units and community beneficiaries. We also started linking up with organizations whose programs complement our goals to help people help themselves and be a neighbor of choice. I would also like to extend my gratitude to our donor companies for their generous contributions and for working together with us in our common pursuit to become the neighbor of choice in their respective areas of operation. To the entire Aboitiz team, may you continue to keep alive your passion to serve. EDUCATION ENTERPRISE DEVELOPMENT On behalf of the Foundation, our partner communities and our beneficiaries, I would like to thank the Board of Trustees for guiding and supporting us in our desire to serve our countrymen. To my Foundation team, I sincerely appreciate your devotion in making the Foundation an instrument in improving people s lives. Thank you for your passion, dedication, and tireless efforts in coming up with new ideas, and for your courage and drive to see these ideas come to life. I am confident we will be able to face the years ahead with even more vigor so that we can continue helping people help themselves. PRIMARY HEALTH & CHILD CARE EMPLOYEE-INITIATED PROJECTS Augusto P. I. Carpio, III Managing Trustee CORPORATE DONATIONS & OTHER INITIATIVES OTHER COMPANY INITIATIVES 150 Annual Report

8 Education The, Inc. (Foundation) continues to actively initiate and support programs aimed at instituting reforms in the country s education system. Its end goal is to produce citizens who are equipped with the skills and knowledge that will empower them to address the challenges of the future. Education remained the Foundation s major thrust for 2011, as it has always been since the very beginning. It allocated about Php192 million, or 69% of its total budget for 2011, for various education-related initiatives. These include donating school buildings, books and equipment, and granting scholarships and financial assistance. Infrastructure Building With classroom shortage an unresolved perennial problem in public schools, the Foundation continues to build more school buildings in the hope of helping address such need. 152 Table 1 - AGAPP Classrooms Beneficiaries Luzon Location No. of Classrooms Ampucao Elementary School Brgy. Ampucao, Itogon, Benguet 2 Aranguren Integrated School Brgy. Aranguren, Capas, Tarlac 2 Dagat-Dagatan Elementary School Kaunlaran Village, Navotas 2 Kalalake Elementary School Murphy St., New Kalalake, Olongapo City 2 Limao Elementary School Limao, Calauan, Laguna 2 Malicboy West Elementary School Kanlurang, Malicboy, Pagbilao, Quezon 2 Nagas Elementary School Nagas, Tiwi, Albay 2 Visayas Abucayan Elementary School Balamban, Cebu 2 Agus Elementary School Agus, Lapu-Lapu City, Cebu 2 Bancasan Elementary School Bancasan, San Remigio, Cebu 2 Bonbon Elementary School Bonbon, Cebu 2 Cepoc Central School Tinaan, City of Naga, Cebu 2 Gabi Elementary School Gabi, Cordova, Cebu 2 Guadalupe Elementary School Guadalupe, Cebu City 2 Guba Elementary School Guba, Cebu City 2 Mabolo Elementary School Mabolo, Cebu City 2 Opao Elementary School Opao, Mandaue 2 San Isidro Elementary School San Isidro, Talisay City, Cebu 2 Tayud Elementary School Tayud, Liloan, Cebu 2 Mindanao Cotabato City Central Pilot School Cotabato City 2 Kiwalan Elementary School Iligan 2 Lt. C. Villafuerte Sr. Elementary School Davao 2 Maa Central Elementary School Davao 2 Maco Central Elementary School Compostella Valley 2 Mudiang Elementary School Davao 2 Sta. Ana Elementary School Nasipit, Agusan del Norte 2 TOTAL 52 The aims to enable young citizens with the skills and knowledge that will empower them in facing the future and growing a better community. Annual Report

9 Education School Building & Classroom Donations In 2011, a total of 94 standard classrooms were given to selected schools nationwide under the Foundation s regular classroom donation. Fifty-two pre-school classrooms were also donated under the Foundation s partnership with Aklat, Gabay at Aruga Tungo sa Pag-Angat at Pag-asa (AGAPP) Foundation. These brought to 452 the total number of classrooms, benefiting over 45,000 students, that the Foundation has donated since its inception. Table 3 - School Buildings Beneficiaries Location No. of Classrooms TURNED OVER Luzon San Pedro National High School Batangas 3 Talipan Elementary School Talipan, Pagbilao, Quezon 2 Visayas Punta Elementary School San Remigio, Cebu 3 Arpili Elementary School Cebu City 1 Don Calixto Yongco Sr. Tawason ES Mandaue City 1 Mindanao Tanglaw National High School Davao 3 These classrooms are equipped with desks, blackboards, fixtures, and installed with toilets. Five science laboratories were also refurbished and provided with equipment. TOTAL 13 APPROVED AND ONGOING Luzon Makina Elementary School Batangas 4 Malpitic Elementary School Pampanga 4 N. L. Galvez Memorial National High School Laguna 4 Mahabang Parang Elementary School Laguna 3 Balza Elementary School Albay 2 Belen Elementary School Albay 2 Lourdes Elementary School Albay 2 Maynonong Elementary School Albay 2 San Pedro National High School Batangas 2 Bariw National High School Albay 1 Fortes Memorial Elementary School Sorsogon 1 Visayas Mandaue City Central Mandaue City 6 Tingub High School Mandaue City 6 Paknaan Elementary School Mandaue City 4 Cabancalan I Elementary School Mandaue City 4 Banilad Elementary School Mandaue City 4 Cordova Central School Cebu City 3 Canduman National High School Mandaue City 3 Talisay City National High School Cebu City 2 Mindanao Maa National High School Davao 6 Allocated classrooms for Cagayan Cagayan 4 San Vicente High School Davao 3 Carmen National High School Davao 3 Kiwalan Elementary School Iligan 2 Severo Sara Memorial School Iligan 2 Northeast I-A Central School Iligan 2 TOTAL 81 The tables below enumerate the beneficiaries of the Foundation s donations. Table 2 - Science Laboratories Beneficiaries Implementor Location No. of Laboratories APPROVED AND ONGOING Arcelo National High School Liloan,Cebu 1 Jagobiao National High School Mandaue City 1 Jugan National High School Consolacion, Cebu 1 Maghaway National High School Talisay City 1 Mandaue City Science High School Mandaue City 1 TOTAL 5 Happy students are encouraged to perform better as more classrooms and laboratories are donated to their schools. TOTAL Annual Report

10 Education The Aboitiz Group scholars are exposed to activities that prepare them for the challenges in the real world. Scholarship and Financial Assistance Program The provides scholarship grants and other forms of assistance to qualified and deserving students as a means of recognizing their potentials to lead or make significant contributions to society. Under the Purposive College Scholarship Program, scholars are not only sent to school; they are encouraged to take up college courses that may increase their chances of finding employment within the Aboitiz Group after they graduate. The 2011 Scholarship Portfolio In 2011, the Foundation provided scholarships and other forms of assistance to 2,421 students nationwide. Aside from helping students enrolled in regular schools, assistance is also extended to those taking vocational courses, those who have disabilities, and street children. Table 4 - Scholarship and Financial Assistance Level Location Implementor Program No. of Scholars 250 Pre-school Cebu Street Education Classes through the Children of Cebu Foundation Elementary Cebu Formal Elementary Education through the Children 158 of Cebu Foundation Secondary Luzon Tiwi, Albay AP Renewables, Inc High School Scholarship Program 37 Benguet Hedcor - Benguet High School Scholarship Program 30 Batangas & Laguna APRI - MakBan High School Scholarship Program 27 Ilocos Sur & Benguet Luzon Hydro High School Scholarship Program 24 Subic SEZ High School Scholarship Program 20 Pagbilao, Quezon Therma Luzon High School Scholarship Program 13 Tarlac PANC High School Scholarship Program 3 Visayas Region 7 High School Scholarship Program 304 Lapu-Lapu City, Cebu Street Urban Working Children 345 Talisay City, Cebu Street Urban Working Children 123 Lapu-Lapu City, Cebu STEC-HS Scholarship 36 Cebu VECO High School Scholarship Program 40 Mindanao Davao Davao Light High School Scholarship Program 104 Maco, Compostela Valley Therma Marine Inc. - Mobile 1 High School Scholarship Program 68 Nasipit & Butuan Therma Marine Inc. - Mobile 2 High School Scholarship Program 60 Davao Hedcor-Davao High School Scholarship Program 18 Cotabato CLPC High School Scholarship Program 16 Sibulan Hedcor-Sibulan High School Scholarship Program 12 Davao Davao Light Boys Town Ward Scholarship Program 10 Tertiary Post Graduate Vocational/ Technical Special Scholarship Luzon Pagbilao, Quezon Therma Luzon Purposive College Scholarship Program 36 Batangas & Laguna APRI - MakBan Purposive College Scholarship Program 15 Tiwi, Albay AP Renewables Inc. Purposive College Scholarship Program 15 Ilocos Sur & Benguet Luzon Hydro Purposive College Scholarship Program 6 Tarlac PANC Purposive College Scholarship Program 4 Benguet Hedcor - Benguet Purposive College Scholarship Program 2 Visayas Cebu Purposive College Scholarship Program 37 Cebu VECO Customer Dependents College Scholarship Program 21 Mindanao Davao Davao Light Customer Dependents College Scholarship Program 47 Davao Davao Light Mindanawon Initiatives for Cultural Dialogue 20 Iligan Pilmico Foods Regular College Scholarship Program 16 Cotabato Cotabato Light Customer Dependents College Scholarship Program 3 Davao Hedcor - Davao Purposive College Scholarship Program 2 Sibulan Hedcor - Sibulan Purposive College Scholarship Program 2 Visayas-Mindanao Cebu, Davao & Iloilo Abojeb Abojeb Marine Engineering Scholarship Program 30 Cebu & Manila Abojeb AJMAN Nursing Scholarship 65 Luzon Batangas & Laguna APRI - MakBan Technology and Vocational Educational Learning 30 Tiwi, Albay AP Renewables Inc. Don Bosco Agro-Mechanical Technology Center 25 Visayas Cebu TESDA Scholarship 100 Cebu Banilad Center for Professional Development 30 Scholarship Cebu Metaphil Metaphil-TESDA Institute for Technical Training 192 (MTITT) Sibulan Hedcor - Sibulan TESDA Scholarship 5 Davao Davao Light Scholarship for Physically Challenged 20 TOTAL 2, Annual Report

11 Education Integrated Computerization Program Every year, the Foundation sees an increasing number of schools that have access to computers and other related equipment. In 2011, the Foundation made its first donation of a thin client system, a project it conceptualized in 2010 to eliminate, if not lessen, computer problems resulting from virus attacks, as well as the maintenance cost of the computer units. The system, which provides server-based computer systems without the need for hard drives, is easy to maintain. The computers used in the system, however, may still be used to perform typical tasks. Computer-Related Projects The Foundation and its member companies also donated a total of 373 computer units and refurbished two computer laboratories as complementing initiatives. On the first year of the thin client system implementation, 88 units (computers and servers) were donated to seven schools in different areas in Cebu. Together with the different business units within the Group, the Foundation also donated a total of 373 computer units and refurbished two computer laboratories for Cordova Central Table 5 - Computer Donations Areas Total Luzon Batangas 30 Nueva Ecija 25 Pagbilao 21 MakBan 20 Navotas City 20 Albay (Malinao) 10 Kalalake, Olongapo City 10 San Fernando City, Pampanga 10 Subic 10 Tarlac 10 Tiwi,Albay 10 Calaca, Batangas 2 Visayas Cebu City 10 Visayas & Mindanao Regions 6 & Mindanao Surigao del Sur 40 Davao 30 Iligan 14 General Santos City 10 Northern Mindanao 10 South Cotabato 10 Southern Mindanao 10 Mindanao 7 Butuan City 5 Cotabato 3 TOTAL 373 School in Cebu and Naga National High School in Tiwi, Albay. Since it started its computerization program in 1997, the Foundation has donated a total of 1,527 computers. It has also facilitated the refurbishment of 37 computer laboratories. Other Interventions UnionBank Book Donation Union Bank of the Philippines (UnionBank), in partnership with the Department of Education, continues to donate instructional materials to help improve students reading skills and strengthen the values education curriculum in public schools. Now on its fifth year, the program also known as The UnionBank Learning System: Developmental Reading Integrated with Values Education for Good Citizenship, contains a teacher s handbook, workbooks for Grade 2 pupils and a multimedia set. In 2011, UnionBank was able to donate an estimated 500,000 books, benefiting 524,000 pupils and 12,500 teachers in 5,400 public elementary schools in the National Capital Region, Central Visayas, Davao Region, Sarangani, Isabela City, Basilan, Tawi- Tawi and Nueva Ecija. Capas Brainshow In 2011, Pilmico Animal Nutrition Corporation offered a bigger and better Brainshow quiz bee to students of Capas and Concepcion towns in Tarlac. The quiz bee is staged annually to test the competencies of the students and promote camaraderie as well. For the first time, the Pilmico Brainshow, which had the theme Synergy for Academic Excellence, was held in Concepcion. Organizers also offered bigger prizes to the coaches of the winning schools. In Capas, where the previous quiz bee was always held, 24 public elementary schools sent representatives to compete for the top prize. After competing in three rounds, students from Aranguren Elementary School were proclaimed champions. The first-ever Brainshow in Concepcion, on the other hand, gathered representatives from 35 public elementary schools, with Minane Elementary School winning the top prize. 158 Student learning is enhanced through the donation of computers and other equipment. Table 6 - Thin Client System Beneficiaries Donor Location Units Punta Elementary School Punta, San Remigio, Cebu 21 Lahug Night High School Lahug, Cebu City 16 Banilad Elementary School Banilad, Cebu City 14 Garing National High School Consolacion, Cebu 11 Sinsin National High School Sinsin, Cebu City 11 Tisa Integrated School Labangon, Cebu City 10 Bancasan Elementary School Bancasan, San Remigio, Cebu 5 TOTAL 88 Since it was launched in 2007, close to 1.5 million teachers and students have benefited from the learning program. Library Kits and e-learning Books are valuable tools that provide students the opportunity to learn more about things not being taught in classrooms. Wanting to be instrumental in opening up these opportunities, the Foundation and its member companies donate library kits to public schools across the country. Included in these library kits are story books and reference materials like encyclopedias, bibles, dictionaries and almanacs. In 2011, 51 library kits were donated, bringing to 98 the total number of kit donations since the program started six years ago. The Foundation supports other educational interventions that complement its existing programs for students. Annual Report

12 Education Table 7 - Library Kit and e- Learning Implementing Business Unit Donee No. of Kits Gen. Del Pio Elementary School 1 Guadalupe Elementary School 1 Guadalupe Viejo Elementary School 1 Guba Elementary School 1 Mabolo Elementary School 1 Opao Elementary School 1 Pembo Elementary School 1 Rizal Elementary School 1 San Rafael Elementary School 1 Tanza Elementary School 1 Tayud Elementary School 1 AP Coal - Davao (Therma South) Binugao Elementary School 1 Inayawan Elementary School 1 AP Sales and Marketing Anticala National High School 1 Miti Elementary School 1 Putingbato Elementary School 1 Salong Elementary School 1 APRI - MakBan Limao Elementary School Mahabang Parang Elementary School 1 Sta. Elena Elementary School 1 Tamlong Elementary School 1 APRI - Tiwi Baybay Elementary School 1 Joroan Elementary School 1 Misibis Elementary School 1 Putzan Elementary School 1 Sugod Elementary School 1 Hedcor - Sibulan Tudaya Elementary School 1 Tudaya High School 1 PANC - Tarlac Alunan Elementary School 1 Aquino Elementary School 1 Bueno Elementary School 1 Calangitan High School 1 Capas High School 1 Cristorey Central Elementary School 1 Cristorey High School 1 Kawili-wili Elementary School 1 Lawy High School 1 Maruglo Elementary School 1 Odonnell (Annex) High School 1 Odonnell (Main) High School 1 San Agustin Elementary School 1 San Juan Elementary School 1 Sta. Juliana Elementary School 1 Sta. Lucia High School 1 Tarukan Elementary School 1 TMI - Nasipit Ata Atahon Elementary School 1 Kinabjangan Elementary School 1 Punta Elementary School 1 VECO Balud Elementary School 1 Cepoc Central School 1 Greenhills Elementary School 1 TOTAL 51 Vocational and Technical Training Centers The Vocational and Technical Training Center, a project of the Aboitiz Construction Group and the Technical Education and Skills Development Authority, continues to provide its scholars with skills and technical programs. In 2011, 192 out-of-school youths availed themselves of the program. Two years after it was launched in 2009, the program has trained a total of 941 scholars. Also in 2011, the Foundation began supporting 100 out-of-school youths, letting them take courses in plumbing, refrigeration and air conditioning servicing, automotive, building wiring installation and computer hardware servicing. Coalition Building Through the Coalition for Better Education (CBE), established by the Ramon Aboitiz Foundation Inc. (RAFI) and the Philippine Business for Social Progress, teacher training and faculty development are given attention as part of efforts to institute educational reforms. Among the CBE s agenda are academeindustry-government linkage, curriculum development, leadership, and governance. The CBE s membership grew from 248 in 2010 to 343 in 2011, with the academe sector in the lead as the biggest group in the organization, with universities and colleges outside Cebu joining as members. Through its partnerships with industries and companies, the CBE has expanded its mission to create empowered learning communities by extending its reach to as far as Batanes in Luzon to Saranggani in Mindanao. A total of 123 teachers completed the Global Filipino Teachers Program with Globe Telecom. Forty-three principals were trained on Educational Leadership in the 21st Century under the SmartSchools Program, jointly undertaken with PBSP and Smart Communications. CBE also trained teachers of RAFI and sponsored schools in Mandaue City and San Remigio in northern Cebu. Scholarship grants are also given to individuals who are unable to proceed to college but want to take non-formal courses. 160 Annual Report

13 162 Education Fun and exciting activities like the Outland Adventure Camp are offered yearly to promote the youth s holistic growth. Also in 2011, the Yahoo University Network, in partnership with the CBE, trained 101 college students and professors in creating web content. The trained teachers were also able to develop a total of 52 project-based learning content through collaborative and interdisciplinary efforts. Under its shared governance pillar, CBE and RAFI initiated the Local School Governance Program that seeks to capacitate local communities in school governance alongside local government units and the Department of Education. The CBE also fuelled its advocacy activities to provide more information to concerned sectors on the K+12 Basic Education Program of the government through a series of fora and sectoral focus group discussion sessions. At the close of the year, the CBE paid tribute to the Filipino teacher by coproducing Ang Guro, a musicale play on the everyday life of an ordinary teacher. Outland Adventure Camp Thirty selected students and out-of-school youths took part in the three-day Outland Adventure Camp organized by Aboitiz distribution utility Davao Light & Power Company, Inc. for This annual activity helps promote the participants holistic growth by making them perform activities that hone their leadership, discipline and interpersonal skills, and spirituality. They are also taught how to overcome fear and help care for the environment. A total of 2,090 youths have participated since Davao Light started offering this activity in The beneficiaries included youths who are under the custody of the court due to conflicts with the law, orphaned youths who are staying at the Davao Boys Town, and Sangguniang Kabataan leaders. These rooms were made for learning Di na ta mahadlok tetanus-on ani (We re no longer at risk of getting infected with tetanus), John Rey Ygot said with a grin, gesturing to the new classroom building in Gabi Elementary School in Cordova, Cebu. Six-year-old John Rey has the sense of humor of someone older, but one cannot argue on seeing the new two-classroom school building that and the Aklat, Gabay, Aruga tungo sa Pag-angat at Pag-asa (AGAPP) Foundation built for kindergarten pupils in Gabi Elementary School. Painted green, yellow and red, the classrooms offer a safe and reassuring atmosphere to kindergarten children, most of whom have never before set foot anywhere outside their home and their backyard for long. In 2011, and AGAPP built and furnished classrooms for kindergarten classes in 52 public schools all over the country., with the support of Aboitiz business units, built the classrooms while AGAPP provided age-appropriate instructional materials. Training for teachers was taken care of by the Department of Education. Feature Apart from those in Cebu, where most of the classrooms donated in 2011 are located, the and Aboitiz business units turned over newly constructed classrooms in other parts of the country. The construction of classrooms is part of the AboitizFoundation s commitment to improve the quality of education in communities where Aboitiz business units operate. In line with this commitment, entered into a partnership with AGAPP and the Department of Education in May 2011 and pledged to build a total of 45 school buildings in different areas in the country within two years. is targeting 42 new classrooms for AGAPP in Annual Report

14 Enterprise Development Growth in the countryside starts with small entrepreneurs, whose success creates a ripple effect on members of their communities. The Foundation empowers these communities by extending microfinance loan packages to partner cooperatives to help them finance livelihood activities. These cooperatives engage in activities like cutflower farming, corn and crop production, sow breeding and fattening, rice trading, and operating sari-sari stores. They also join capability-building trainings to help them manage their organizations well. Microfinance In 2011, more cooperatives were granted loan packages as a result of the expanded portfolio of the Foundation s enterprise development program. The Foundation granted 79 loan packages worth Php26 million to its partner cooperatives in various areas in Cebu and Benguet provinces. Its collection efficiency rate remains at 96%, allowing the Foundation to revolve its funds and help more cooperatives in its host communities. It also turned over a multi-purpose building to the St. Vincent Neighborhood Multipurpose Cooperative based in Liloan, Cebu. To date, the Foundation has disbursed a total of 308 loan packages amounting to Php73.7 million. Loan packages and capability-building activities are granted to small entrepreneurs to help ensure the sustainability of their livelihood activities. The Foundation empowers communities by extending microfinance loan packages to partner cooperatives to help them finance livelihood activities. 164 Annual Report

15 Enterprise Development Table 8 - Approved Microfinance Loan Packages (in thousand pesos) Project Location Amount Luzon Livelihood Projects for members of Alno Rural Community Development Cooperative (ALNO) Alno, La Trinidad, Benguet Php880 Thanksgiving MPC Swine Fattening Project Tuba, Benguet 510 Visayas St. Vincent Neighborhood Swine Fattening Project Liloan, Cebu 2,500 South Cebu Hog Raisers Swine Fattening Project Talisay City, Cebu 2,300 Livelihood Development Projects of Mandaue Subcon Development MPC (P.O. Financing) Mandaue City 1,959 Sweetcorn Production Project of Cobcawa MPC Cebu City 1,106 Cutflower & Vegetable Production Project of Pung-ol Sibugay MPC Cebu City 1,000 St. Vincent Neighborhood Sow Breeding Project Liloan, Cebu 1,000 Pung-ol Sibugay Cutflower & Vegetable Production Project Cebu City 800 Cobcawa MPC Sweet Corn Productivity Cebu City 768 Livelihood Development Project of LLC Muslim Ambulant Vendors MPC Lapu-Lapu City 600 Farm Productivity & Swine Fattening Projects of BUFA Cebu City 598 BUFA Farm Productivity & Swine Fattening Cebu City 593 Livelihood Development Projects of Mandaue Subcon Development MPC (Swine Raising) Mandaue City 541 Carwasa Development Cooperative - Water Expansion Loan Carcar, Cebu 500 Livelihood Development Projects of Mandaue Subcon Development MPC (Rice Trading) Mandaue City 500 Paknaanon MPC Livelihood Project Mandaue City 500 Small Business Development Project for Women Members of RSMPC Naga, Cebu 500 Microfinance Expansion of Big Daddy Credit Cooperative Lapu-Lapu City 435 Three Barangay Nurseries for Indigenous Trees Project Cebu City 416 Swine Fattening Project of Cocodew Mandaue City 406 Swine Fattening Project of Tabla MPC Liloan, Cebu 406 Swine Fattening Project of Tinaan Neighborhood MPC Naga, Cebu 406 Tabla Multi-purpose Cooperative Swine Fattening Project Liloan, Cebu 406 Livelihood Development Project of Mandaue Vendors Cooperative Mandaue City 400 Livelihood Development Project of Sagip- Kapamilya Community Development Coop Lapu-Lapu City 350 Cocodew Swine Fattening Project Mandaue City 338 Swine Fattening Project of Bonbon Multi-purpose Cooperative Cebu City 338 Swine Fattening Project of Mulao Farmers MPC Liloan, Cebu 328 Mandaue Subcon MPC Rice Trading Project Mandaue City 315 Swine Fattening Project of Tabionan Farmers Association Cebu City 304 Tina-an Neighborhood Multi-purpose Cooperative (TNMPC) Swine Fattening Project Naga, Cebu 301 LLC Muslim Ambulant Vendors MPC Livelihood Development Project Lapu-Lapu City 300 Purok Sili Livelihood Development Project Mandaue City 300 Rug Making Project of Bagong Pilipina Women's Resources Inc. Mandaue City 300 Swine Fattening Project of Greenland Farmers Association San Fernando, Cebu 300 Bangus Farming of Sumpa Multi-purpose Cooperative Naga, Cebu 250 Farm Productivity Project of Sitio Maraag Sudlon II Farmers Association Cebu City 222 Purok Sili Livelihood Development Project Mandaue City 200 Rice Trading - Talisay City Brgy. Health Workers MPC Talisay City, Cebu 200 United Farmers Association of Tubod Swine Fattening Project Minglanilla, Cebu 171 Grouper Culture Production Project Talisay City, Cebu 169 Livelihood Development & Swine Fattening Projects of BNS Minglanilla Minglanilla, Cebu 155 Pamulco Livelihood Development Project Mandaue City 150 Consumer's Store Project of St. Peter Women's Association Minglanilla, Cebu 100 Expansion of Project Love (Lending Option for Vendors & Entrepreneurs) of Basak San Nicolas MPC Cebu City 100 Farm Productivity Project of Cambinocot Agro- Industrial Association Cebu City 100 Farm Productivity Project of Paril Farmer Scientists Association Cebu City 100 Livelihood Development Project of Cabancalan Urban Poor & Resettlement MPC Mandaue City 100 Livelihood Development Project of Nagpakabanang Kababaye-an sa Tungkil Minglanilla, Cebu 100 Corn & Vegetable Production of Agsungot Farmers Association Cebu City 52 Livelihood Development Project of Barangay Nutrition Scholars Minglanilla, Cebu 30 Rug Making Project of Paknaan Community Credit Cooperative Mandaue City 25 Rug Making Project of Paknaan Community Credit Cooperative Mandaue City 25 TOTAL Php25,753 Aiming to teach basic business knowledge to its partner cooperatives, the Foundation conducts activities like training programs on credit and financial management and accounting for non-accountants. Capability-Building Activities As an added support to its partner cooperatives, the Foundation also implements programs credit and financial management, accounting for non-accountants, good governance, leadership and communication, and values formation that teach cooperatives and their members basic business knowledge. This capability assistance program is highly sustainable and self-perpetuating. In 2011, the Foundation allocated P3 million for these activities. Table 9 - Capability- Building Activities (in thousand pesos) Activity Implementor Amount Spent Visayas Livelihood & Entrepreneurial Skills Project for Night High School Students Php531 Credit and Financial Management Training Credit Delinquency & Financial Analysis Basics Internal Control System 7 Reporting Good Governance Strategic Planning Umahan sa Katawhan Project - Kabameka Livelihood Training on culinary arts, soap making, candle making, & gift-wrapping training for women organizations & trisikad drivers of Brgy. Bacayan AboitizLand 208 Livelihood Training: Welding, Carpentry, Masonry & Electrical Wiring AboitizLand 100 Bee Farm Project of Pung-ol Sibugay MPC 93 Culinary Arts Training for parents of Don Calixto Yongco, Sr. Tawason Elementary School AboitizLand 84 Dressmaking Course AboitizLand 40 Culinary Arts Training Course AboitizLand 17 Bakery Business Strategy Workshop 14 Mindanao Preparatory Skills Training Project in Binugao, Toril, Davao City Therma South, Inc. 480 Skills Training for residents of Davao del Sur Therma South, Inc. 480 Livelihood Opportunity Program Pilmico 100 TOTAL Php2, Annual Report

16 Enterprise Development Table 10 - Multi-purpose Building Beneficiaries Donor Location TURNED OVER IN 2011 St. Vincent Neighborhood Multi-purpose Cooperative Liloan, Cebu Good sting comes to those who work There are many things humans can learn from bees, among them the value of industry and teamwork. Cris Gabisay, beekeeper at the Barangay Pung-ol Sibugay Bee Farm in the uplands of Cebu City, reveals how things work in the honey bee colony. Feature The Foundation has maintained a collection efficiency rate of 96%, allowing it to fund more income-generating activities for its partner cooperatives. The honey bee colony or all bee colonies for that matter is a monarchy, ruled by the queen. The queen s only role in the colony is to reproduce. Apart from the queen, each member of the colony has a function. The drones sole function is to mate with the queen. The rest of the colony is made up of worker bees. The job description of worker bees is determined by their age. The youngest are tasked with answering the queen s demands and cleaning the cells in the hive. Midlife worker bees (ages between 12 and 20 days) are responsible for building the honeycomb and storing the nectar collected by older forager bees. The foragers are the ones that visit flowers to collect nectar, and accidentally help flowers pollinate. As a society model, Cris says, the bee colony is quite efficient. Cris is a member of the Pung-ol Sibugay Multi-purpose Cooperative, which realized that bees offer free labor they are nature s tireless pollinating agents and help increase production at their cutflower farms. The honey bees are special as pollinating agents because they have what is known as flower fidelity they collect pollens from one type of flower at a time. For the Pung-ol Sibugay cooperative, raising bees is also like hitting three hives with one stone: apart from increasing their cutflower production, they can make money selling honey and, eventually, from eco-tourism by charging entrance fees from people who want to watch how bees do it. The cooperative expects to harvest honey that they can sell by the third quarter of The bee farm opened in August 2011, but the cooperative chose not to charge admission fees yet as the area still lacks facilities, like huts, benches and restrooms. Despite this, the farm is now slowly becoming an eco-tourism destination for visitors of the city. The cooperative established the bee farm with assistance from the Aboitiz Business Assistance and Guidance (ABAG) program, the enterprise development component of the Aboitiz Foundation Inc. 168 The Pung-ol Sibugay Multi-purpose Cooperative, headed by Wedeliza Gabisay, said the bee farm and their other projects implemented with the help of the Foundation has helped them establish alternative livelihood and sustain the farmers income even during lean production periods. Annual Report

17 Primary Health & Child Care In far-flung areas, basic social services such as access to potable water, and medical and dental care, are noticeably scarce. The Foundation and its member companies address this shortage by building water systems and holding medical missions in places where these are most needed. The Foundation also holds street education classes in the hope that children in the streets may soon find themselves getting a formal education in classrooms. In 2011, the Foundation allocated Php17.4 million for primary health and child care projects, Php9.4 million higher than its allocation in the previous year. Table 10 - Primary Health and Child Care Projects (in thousand pesos) 170 Project Location Implementor Amount Luzon Abot Kamay medical mission Tiwi APRI - Tiwi Php497 APRI MakBan Geo annual medical mission MakBan APRI - MakBan 348 APRI-MakBan Geo's medical, surgical & dental mission Batangas APRI - MakBan 336 APRI-MakBan Geo's medical, surgical & dental mission Laguna APRI - MakBan 336 Dental & optical missions Pagbilao Therma Luzon 305 Benguet medical & dental mission Benguet Hedcor - Benguet 290 APRI - MakBan Geo's annual dental mission MakBan APRI - MakBan 288 & oral care program APRI - MakBan Geo's dental mission & oral care program MakBan APRI - MakBan 172 Malinaw na Pasko Tarlac PANC 160 Ngiting Kumukutitap Tarlac PANC 150 Ngiting Kumukutitap - Tiwi Tiwi APRI - Tiwi 118 Astig Ka Boy! (Free Circumcision Project) Pagbilao Therma Luzon 112 Astig Ka Boy! - Tiwi Tiwi APRI - Tiwi 110 Navotas City dental mission 2011 Navotas 61 Astig Ka Boy! Tarlac PANC 60 Ngiting Kumukutitap Tarlac PANC 50 Visayas Three dental & optical mission projects in mountain Cebu 474 barangays of Cebu City Dental & optical mission project Lapu-Lapu 175 Medical Mission-Handog Pasasalamat ng DYHP Cebu Pilmico 150 Dental mission & Operation Tuli project Liloan, Cebu 133 Dental mission project (joint project with DYHP) Cebu 93 Astig Ka Boy! - VECO Cebu VECO 83 Dental mission Cebu VECO 50 Mindanao Medical & dental mission Davao Hedcor - Sibulan 457 Therma Marine, Inc. - Mobile 1 medical mission plus Southern Mindanao TMI - Maco 455 Butuan City Fit for School project Northern Mindanao TMI - Nasipit 250 TSI Medical & dental mission Davao del Sur Therma South, Inc. 118 Dental mission Iligan Pilmico 100 Operation Tuli: Free Circumcision Iligan Pilmico 100 Free eye checkup & prescription glasses Iligan Pilmico 100 Therma Marine, Inc. - medical-related Northern Mindanao TMI - Nasipit 100 missions (Medical/Dental/Optical & Operation Tuli) Fit for School Program for Northern Mindanao TMI - Nasipit 40 Nasipit Elementary School TOTAL Php6,270 Medical and Dental Missions As part of its efforts to promote good health among residents of areas where the Aboitiz businesses operate, the Foundation in 2011 conducted a medical mission in Cebu for the first time. Aside from medical missions, where young boys availed themselves of free circumcision, the Foundation and Aboitiz Group business units also held optical and dental missions, and gave out free medicines. A total of Php6.3 million was allocated for these activities, which benefited at least 12,500 individuals. Summary Health Services Conducted No. of Recipients Dental 18 4,695 Medical 10 4,395 Circumcision 7 2,000 Optical 5 1,400 Annual Report

18 Primary Health & Child Care Street Education Another batch of 250 pre-school children participated in street education classes that the Foundation organizes with the aim of bringing back street children and out-of-school youths into classrooms. Aside from holding non-formal education sessions, the Foundation also gives the students bags and other supplies for their use. Water Systems Building water systems is the flagship project under the Foundation s primary health and child care program. It makes water accessible to communities, especially those in mountain barangays. In 2011, the project was implemented in four areas in Cebu Province, Iligan City and Davao. A total of Php1.3 million was allocated for these water systems, which were implemented in partnership with the local government units of the recipient communities. Table Approved Water System Projects (in thousand pesos) Project Beneficiaries Location Implementor Amount Visayas Bacayan Level II 200 Households of Cebu Php377 Water System Project Leyson Compound, Bacayan, Cebu Bayabas Levtel II Water System Project Bayabas United Farmers Association Cebu 261 Mindanao Water System Repair in Kiwalan Elementary School Kiwalan Elementary School Kiwalan, Iligan City Pilmico 352 Darong Water System Project - Spring Water Lot Acquisition TOTAL Darong residents from Centro Sibulan to Sitios Cardava and Durian extension Davao Hedcor - Sibulan 300 Php1,290 Enjoyment of the highest standard of health is a fundamental right, according to the World Health Organization. But for Lilibeth Gimeno and sons Mark and Joshua, of Liloan, Cebu, health is a privilege. Sadly, the Gimenos plight is shared by many families in the Philippines. Driven by its sense of social responsibility, Aboitiz Group companies, through the Inc., regularly conduct medical/dental/optical missions in different areas in the country to address the needs of the underprivileged. Lilibeth and her sons were among the beneficiaries of the s first dental and medical mission in Cebu Province. The 28-year-old mother listed Mark, a Grade 5 student, and Joshua, a Grade 3 pupil, for the free circumcision offered during the health mission, held at the Panphil D. Frasco Memorial Gym in Liloan on May 21, Feature Righting health issues The medical and dental mission benefited 339 children and adults from 14 barangays where had implemented microfinance and water systems projects. Aside from medical and dental services, beneficiaries also received medicines from the Foundation. Although the activity was the first in Cebu, conducts health missions every year under its primary health and child care program in other areas across the country. In Lapu-Lapu City and in Brgy. Hipodromo, Cebu City, the Foundation gave free health services to about a thousand residents. About 650 residents availed themselves of free medical and dental services in the Foundation s health mission in Barangay Hipodromo on August 28, In Lapu-Lapu City, about 200 senior citizens from 19 barangays and 118 scholars of the Foundation s Street Urban Working Children Program received free eye check-ups and dental health services, respectively, on October 1 of the same year. 172 After the end of the sessions, the Foundation expects at least 20% of the students to go back to school and receive formal education. Most Aboitiz companies also conduct separate health missions to help more residents in their host communities. During these activities, many Aboitiz employees served as volunteers, not only to support their companies programs, but also to fulfill the desire to help the less fortunate. Annual Report

19 Employee-Initiated Projects Aboitiz team members actively pursue projects which the Group supports as part of both CSR and employee-management activities. These projects are led by dedicated and passionate volunteers who help empower the Foundation to pursue its goals. In 2011, team members and volunteers, such as Aboitiz scholars and Aboitiz Future Leaders Business Summit delegates, took part in the simultaneous Group-wide tree planting, Christmas outreach program, disaster relief operations, Brigada Eskwela activities, and Adopt-a-School program. Brigada Eskwela Since 2008, Aboitiz Group team members nationwide have been extending assistance to their adopted schools as part of the government s Brigada Eskwela campaign. In 2011, about 1,500 team members went to their respective adopted schools weeks before the opening of classes in June to conduct repair and maintenance work. They fixed broken chairs, desks and tables; repainted classrooms, roofs and walls; spruced up gardens; and replaced busted lights, among others. Adopt-a-School Supplementing the Aboitiz Group s assistance during the Brigada Eskwela is the Adopt-a-School program by Cebu-based team members. In 2011, on their third year of implementing the program, some 380 team members spent their Saturdays with teachers, students and parents of Banilad Elementary School and Banilad Night High School to conduct teachers workshops, skills training on public speaking and presentation, science and math enrichment program, livelihood programs, and livelihood skills training in cooking and baking. Table 12 - Employee- Initiated Projects Project Number of Volunteers Tree Planting 1,239 1,682 Brigada Eskwela 1,134 1,444 Christmas Outreach Disaster Relief Adopt- a- School Medical, Dental, Optical, Circumcision Others Aboitiz team members actively pursue projects which the Group supports as part of both CSR and employeemanagement activities. TOTAL 3,124 5, Annual Report

20 Employee-Initiated Projects Disaster Relief The Aboitiz Group s quick response to provide relief assistance was again tested when tropical storm battered Cagayan de Oro and Iligan cities and Negros Oriental barely days before Christmas. Nearly 450 team members and volunteers helped in putting together relief goods and extending other forms of assistance, benefiting a total of 18,165 families. Donations totalling Php11.4 million was raised. Christmas Outreach Activity Another annual tradition of the Aboitiz Group is to invite underprivileged children every December to make them experience the Yuletide season. Barely hours after Sendong struck, representatives from the Aboitiz Group were already addressing the critical need for drinking water. Relief goods were immediately distributed to affected residents. Iligan City-based Pilmico Foods Corporation also gave financial assistance to employees who lost their homes. During the 2011 simultaneous Christmas outreach in Cebu City and Navotas City, at least 400 children were treated to a day of fun through a puppet show, carnival games, and snacks. At Santa s Corner, each child was given toys, a Samaritan s box containing assorted goods, and a chance to be photographed with Santa Claus. They were also given grocery items for the family s Noche Buena. Acting as big brothers and big sisters to the children were 631 team leaders and team members from the Aboitiz Group. Aboitiz Group team members actively participate in different CSR activities that promote solidarity and goodwill. 176 Annual Report

21 Employee-Initiated Projects Tree Planting Aboitiz Group team members nationwide hold an annual simultaneous tree planting in support of the Aboitiz Passion for Reforest and Agroforest to Keep (APARK) initiative, which seeks to plant 3 million trees by the year The 2011 tree planting, held last July 23, gathered about 2,000 team members and volunteers to plant 850,000 seedlings in Cebu, Laguna, Rizal, Compostela Valley, Agusan del Norte, Manila, Subic, Davao, Albay and Maguindanao. As testament to its commitment to environment preservation, the Foundation also actively supports sustainable programs. Eight-year-old Christine and her family lost everything they had when a fire consumed their house in Sitio Terra Cura, Barangay Tejero, Cebu City in August Her parents were away at work when the fire, which raged for more than an hour, occurred. Christine was in school while her brothers were at their grandmother s. In a way, it was a blessing that none of them were at home when disaster struck. At least, Christine got to keep her uniform and school things. But since Christine s parents have meager incomes her mother is a manicurist while her father works at a junk shop it was doubtful they would be able to re-build their house before Christmas. Christine was among the 260 children in Cebu City who got an early Christmas treat from the Aboitiz Group. The kids from fire-stricken barangays of Tejero, Punta Princesa and Carreta, Cebu City were Feature Playing Samaritan shuttled off to the Blessed John Seminary in Barangay Mabolo, Cebu City to receive presents and experience a day of fun and laughter with Aboitiz executives and team members. For a day, the children forgot the concerns that only grownups are supposed to ponder as they watched puppet and magic shows, and played carnival games with other kids. The kids also went home with grocery bags for their families to enjoy Christmas Eve dinner. It was truly a wonder to see all the happy faces of the children, President Jon Ramon Aboitiz remarked. Christine said she will never forget Dec. 3, 2011, the day she acted like any other child carefree and happy. Every once in a while, as she relives the fun she had, she would look at a memento a picture of her with Santa Claus. 178 Annual Report

22 Corporate Donations & Other Initiatives In partnership with its member companies, the Aboitiz Foundation grants corporate donations and other forms of assistance to non-government organizations, religious institutions and government agencies, as well as those that promote sports, arts and culture. A total of Php18 million was given out in 2011 for these corporate donations. Support to LGUs Maintaining good relations with local government units and government agencies in their areas of operation is important not only to the Foundation but also to the entire Aboitiz Group. They believe that the benefits brought about by such harmonious working relationship will be beneficial not only to the Group but also to the communities themselves. In 2011, the Foundation gave out a total of Php1.6 million in support of different projects initiated by local government units. Support to Foundations, Promotion of Arts & Culture The Foundation also supports groups that promote arts and culture, and environmental preservation. In 2011, the Foundation and the member companies released Php6 million to organizations like the Coalition for Better Education, Junior Achievement of the Philippines, Inc., Carlos P. Romulo for Peace and Development, Inc., and Emergency Rescue Unit Foundation, Inc. Table 13 - Corporate Donations (in thousand pesos) Particulars Amount Support to Foundations, Promotion of Arts & Culture Php5,650 Environment 9,049 Sports-related Donations 1,686 Support to LGUs 1,586 TOTAL Php17,971 Maintaining good relations with local government units and government agencies is important not only to the Foundation but also to the entire Aboitiz Group. 180 Annual Report

23 Corporate Donations & Other Initiatives While most people were busy buying and wrapping Christmas gifts, Aboitiz employees packed relief goods to be distributed to victims of typhoon Sendong in the cities of Cagayan de Oro and Iligan in Mindanao and Dumaguete and Tanjay in Negros Oriental. Feature Help at lightning speed Sports-related Donations The Foundation and its member company Aboitiz Land Inc. (AboitizLand) actively promote sports and other sports-related activities for the youth. In 2011, the Foundation donated Php1.7 million to the 14th Aboitiz Football Cup and to the Aboitiz Sports Field in Barangay Subangdaku, Mandaue City. Environment With the environment now a major program component of the Foundation, more funds are being allocated for the implementation of activities that promote environmental preservation and biodiversity enhancement. A few hours after disaster struck, while floodwaters still inundated several villages, Aboitiz Group representatives were in Cagayan de Oro City to address the typhoon victims most urgent need: drinking water. The Aboitiz Group and its partners delivered bottled water to evacuation centers and communities ravaged by the typhoon. Aboitiz Group employees ignored exhaustion to pack food, clothing, blankets, slippers and medicines. More than 8,000 families in Cagayan de Oro City, 12,000 in Iligan City and about 1,200 residents in Dumaguete and Tanjay, Negros Oriental received relief bundles. The distribution of relief bundles was part of the s Php11-million commitment to relief and rehabilitation efforts in Cagayan and Iligan, which were worst hit by Sendong. About Php5.67 million was spent to buy relief goods for typhoon victims. Aboitiz volunteers narrated how concern for families, rendered homeless by Sendong, enabled them to fight exhaustion. They said they could not bear the thought of displaced families spending Christmas with no water and food in temporary shelters while everyone else engaged in merrymaking. Relief operations in Cagayan de Oro involved team members and those from Davao Light, Therma Marine- Nasipit and the AboitizPower Sales and Marketing Unit. In Iligan City, team members of Pilmico sacrificed sleep to pack and distribute relief bundles. A team from the Aboitiz Corporate Center in Cebu went to Dumaguete City to distribute relief goods to Negros Oriental residents affected by the typhoon. Other Aboitiz team members chose to help in other ways, such as soliciting donations from family and friends for the relief and rehabilitation efforts. Some Aboitiz Group team members were also directly affected by the typhoon, so they too, received financial assistance from the company. The Aboitiz Group also responded quickly to help victims of typhoon Pedring, which hit several provinces in Luzon in September 2011., with the approval of its president Jon Ramon Aboitiz, bought Php250,000 worth of rice, bottled water and canned goods to 1,000 families in Navotas City. Team members of the Aboitiz Corporate Center in Makati and Therma Mobile Inc. packed and distributed relief bundles in Navotas City, barely a day after typhoon Pedring struck. Therma Mobile is a wholly owned subsidiary of AboitizPower. It operates barge-mounted power plants in Navotas City. In 2011, some Php9 million was released for activities like tree planting, mangrove reforestation and site maintenance, information dissemination campaigns, and Earth Hour activities. 182 Annual Report

24 Other Company Initiatives With their own CSR teams already trained to implement their own social development projects, Aboitiz Group companies nationwide carry out other CSR projects that complement those that are being implemented in partnership with the Foundation. For 2011, member companies allocated a total of Php115 million for the implementation of various CSR projects that they themselves initiated. Below is the summary of programs and projects implemented directly by Aboitiz Group companies in Table 14 - Direct CSR Initiatives (in thousand pesos) Company Project Amount Total Groupwide PBSP contributions 1,535 Php1,535 HOLDING COMPANY Aboitiz Equity Ventures Purposive College Scholarship Program 2,312 2,312 MEMBER COMPANIES Cebu Private Power Corporation Corporate and other donations Other education-related initiatives 132 Promotion of health and wellness 113 Davao Light and Power Company, Inc. Equipment donation 602 1,160 Education-related initiatives 188 Disaster relief operations 152 Support to other foundations and groups 143 Assistance to communities 75 East Asia Utilities Corporation Education-related initiatives 1,405 1,447 Assistance to communities 36 Promotion of health and wellness 7 Hedcor, Inc. - Benguet Assistance to communities 27,025 27,687 Assistance to communities 344 Education-related quipment donations 156 Environment 133 Promotion of health and wellness 28 Hedcor, Inc. - Sibulan Promotion of health and wellness Luzon Hydro Corporation Assistance to communities 3,314 Infrastructure building 1,330 Promotion of health and wellness 700 Scholarship grants 532 Other education-related initiatives 286 Equipment donations 125 Environment 120 Pilmico Animal Nutrition Corporation Assistance to communities SN Aboitiz Power Corp. - Benguet Inc. Infrastructure projects in partnership with LGUs 6,270 9,160 Environment 595 Equipment donations for communities 590 Assistance to communities 520 Promotion of health and wellness 400 Assistance to cooperatives 225 Other education-related initiatives 150 Support to other foundations and groups 150 Teachers' training 100 Alternative Learning System 60 Infrastructure building 50 Equipment donations 50 SN Aboitiz Power Corp. - Magat Inc. Assistance to cooperatives 3,889 10,708 Social infrastructure projects 3,660 Promotion of health and wellness 1,400 Infrastructure building 862 Other education-related initiatives 497 Environment 400 Southern Philippines Power Corporation Scholarship grants 1,467 4,073 Infrastructure building 1,433 Equipment donations 602 Disaster relief operations 250 Medical mission 144 Assistance to communities 62 Other education-related initiatives 59 Environment 32 Skills development 24 Company Project Amount Total STEAG State Power, Inc. Disaster relief operations 1,076 3,198 Other education-related initiatives 892 Assistance to cooperatives 503 Promotion of health and wellness 379 Assistance to communities 348 Subic Enerzone Corporation Environment Assistance to communities 15 School supplies donation 4 Promotion of health and wellness 2 Therma Marine, Inc. - Mobile 2 Library kit donation 883 2,554 Promotion of health and wellness 645 Equipment donations 532 Scholarship grants 250 Assistance to communities 100 Other education-related initiatives 92 Environment 52 Therma South Inc. Assistance to communities Environment 95 Tsuneishi Heavy Industries (Cebu), Inc. Infrastructure building 2,325 Scholarship grants 788 Disaster relief operations 493 Other education-related initiatives 240 Environment 122 Union Bank of the Philippines Book donation 19,409 Support to other foundations and groups 9,543 Other education-related initiatives 4,202 Scholarship grants 200 Environment 100 Visayan Electric Company, Inc. Disaster relief operations Armchairs donation 102 Support to other foundations and groups 96 Assistance to communities 86 Environment 33 Teachers' training 30 Promotion of health and wellness 22 Other education-related initiatives 10 Western Mindanao Power Corporation Infrastructure building 3,407 6,219 Equipment donations 918 Scholarship grants 633 Assistance to communities 291 Disaster relief operations 250 Other education-related initiatives 247 Medical mission 150 Skills development 146 Environment 93 Alternative Learning System 84 GRAND TOTAL Php115,372 Annual Report

25 Board of Trustees Erramon I. Aboitiz Chairman Jon Ramon Aboitiz President Romy S. Ronquillo Trustee Augusto P. I. Carpio lll Managing Trustee Xavier J. Aboitiz Susan V. Valdez Trustee Trustee Stephen G. Paradies Jaime Jose Y. Aboitiz Roberto E. Aboitiz Trustee Trustee Trustee 186 Annual Report

26 Executive Committee Corporate Staff Jon Ramon Aboitiz Romy S. Ronquillo Augusto P. I. Carpio lll Susan V. Valdez Xavier J. Aboitiz (from left) Greggylou Estremos, Rogie Eloise Abala, Danilo Cerence, Katrina Balones, Janice Teves, Nicolo Maro Quimbo, Rowena Astillo, Jowelle Ann Cruz, Jun Ivan Covacha, Rechiel Cordova, Jennelyn De La Cerna 188 Annual Report

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