PLDT Annual Report 2013 | Quarterlytics

FY2013 Annual Report · PLDT

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Contact Information

Customer Care Services
(for service-related concerns)

PLDT CUSTOMER CARE
Call Center: 171
Non-PLDT subscribers who wish to contact PLDT: (632) 8888-171
Email address: customercare@pldt.com

Internet users can access information about PLDT and its products
and services at: www.pldthome.com

Information
(for general inquiries)

Ramon Cojuangco Building (RCB)
Telephone: 893-0015

Makati General Office (MGO)
Telephone: 816-8659

Shareholder Services
(for inquiries on dividends, stock certificates, and related matters)

Depositary of American Depositary Shares

AMerICAn DePOSITAry reCeIPT FACILITy3

JPMorgan Chase Bank, N.A.
P.O. Box 64504
St. Paul, MN 55164-0854
U.S. Domestic Toll Free:
(1-800) 990-1135
International Telephone No.: (1-651) 453-2128
Email address:
Website:

jpmorgan.adr@wellsfargo.com
www.adr.com

Investor relations
(for financial and operating information on PLDT)

PLDT INVESTOR RELATIONS CENTER
12/F, Ramon Cojuangco Building
Makati Avenue, Makati City, Philippines
Telephone:
F :
ax
Email address: pldt_ir_center@pldt.com.ph

(632) 816-8024
(632) 810-7138

PLDT Shareholder Services
Telephone:
Fax:
Email Address: pldtshareholderservices@pldt.com.ph

(632) 843-1285 or 1-800-10-8300411 (Toll Free)
(632) 813-2292

Corporate governance

CORPORATE GOVERNANCE OFFICE
Email address: corpgov@pldt.com.ph

registrars and Transfer Agents

COMMOn STOCk1 AnD VOTIng PreFereD STOCk

Philippine registrar and Transfer Agent

THE HONGKONG AND SHANGHAI BANKING CORPORATION LIMITED
HSBC Stock Transfer Unit
7/F HSBC Centre, 3058 Fifth Avenue
West Bonifacio Global City
Taguig City 1634, Philippines
Telephone:

(632) 581-7598
(632) 581-7519
(632) 581-7594
(632) 755-5548

Values
Fax:
Accountability
Email address: stkmnl@hsbc.com.ph
We take full responsibility for our actions
nOn-VOTIng SerIAL PreFerreD STOCk
and decisions.

PLDT is the leading telecommunications service
provider in the Philippines. Through its principal
business segments— wireless, fixed line and
others — PLDT offers the largest and most
diversified range of telecommunications services
across the Philippines’ most extensive fiber optic
backbone and wireless, fixed line, broadband
and satellite networks.

PLDT is listed on the Philippine Stock Exchange
(PSE:TEL) and its American Depositary Shares
are listed on the New York Stock Exchange
(NYSE:PHI). In 2013, PLDT was one of the largest
Philippine-listed companies in terms of market
capitalization.

Mission/Vision
PLDT will be the preferred full service provider
of voice, video and data at the most attractive
levels of price, service quality, content and
coverage, thereby bringing maximum benefit to
the Company’s stakeholders.

PLDT is at the forefront of the digital

age, bridging generations and making

life better. In 2013, PLDT marked its 85
th

year of changing lives with its innovative

products and services that delight

young and old alike. It is transforming

into a digital multimedia conglomerate

that provides not just access but also

data and content through various

services on ﬁ xed and mobile platforms.

268 • 2013 pldt annual report

10% CuMuLATIVe COnVerTIBLe PreFerreD STOCk
Series HH and II 2

Integrity
We do the right thing.

SerIeS IV CuMuLATIVe nOn-COnVerTIBLe
reDeeMABLe PreFerreD STOCk

Fairness
We uphold justice and fair play.

RIZAL COMMERCIAL BANKING CORPORATION
G/F West Wing, 221 GPL (Grepalife) Building,
Sen. Gil Puyat Avenue, Makati City, Philippines
Telephone:

Transparency
We disclose accurate and prompt information.
(632) 892-0426
(632) 892-4156
(632) 553-6933
Subsidiaries
(632) 894-9017
Wireless
(632) 894-9868
Fax:
(632) 892-3139
Smart Communications, Inc. and Subsidiaries
Email address: wrbriones@rcbc.com
Digitel Mobile Philippines, Inc.
joscruz@rcbc.com
Smart Broadband, Inc. and Subsidiaries
jpmodina@rcbc.com
lldeguzman@rcbc.com
Chikka Holdings Limited and Subsidiaries

Stock Exchange (ticker: TEL).

1 The shares of Common Capital Stock of PLDT are listed on the Philippine

Fixed Line
PLDT Clark Telecom, Inc.
PLDT Subic Telecom, Inc.
PLDT Global Corporation and Subsidiaries
2 The Series HH and II 10% Cumulative Convertible Preferred Stock of PLDT
PLDT-Philcom, Inc. and Subsidiaries
are listed on the Philippine Stock Exchange. On January 19, 2012, all of the
outstanding shares of 10% Cumulative Convertible Preferred Stock Series
PLDT-Maratel, Inc.
A to Series FF were redeemed and retired. On August 30, 2012 , all the
outstanding shares of 10% Cumulative Convertible Preferred Stock Series
Digital Telecommunications Philippines, Inc.
GG were redeemed and retired. On May 16, 2013, all the outstanding shares
ePLDT, Inc. and Subsidiaries
of 10% Cumulative Convertible Preferred Stock Series HH (Issued in year
2007) were also redeemed and retired.
Pilipinas Global Network Limited and Subsidiaries

3 PLDT has established an American Depositary Receipt facility under which
Others
American Depositary Shares (ticker: PHI) representing shares of Common
PLDT Communications and Energy Ventures, Inc.
Capital Stock are listed and traded on the New York Stock Exchange.
The American Depositary Shares are evidenced by American Depositary
Philippine Global Investments Holdings, Inc.
Receipts issued by the Depositary.

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PLDT 2013 ar_050214.indd 269

PLDT’s Corporate Governance Manual, Code of Ethics and NYSE
Section 303A.11 Disclosure, which summarizes the difference between
PLDT’s corporate governance practices and those required of U.S.
companies listed on the NYSE, may be downloaded from:

Corporate Governance Manual
http://pldt.com/docs/default-source/
policies/22336f71c88c495793d15575c2addffcpldtcorpgov _manual.
pdf?sfvrsn=2

Code of Ethics

http://pldt.com/docs/default-source/policies/pldt-code-of-business-
conduct-and-ethics.pdf?sfvrsn=4

NYSE 303A.11 Disclosure

http://www.pldt.com/docs/default-source/compliance/corporate-
governance-materials/nyse-section-303a-11-disclosure.pdf?sfvrsn=0

http://pldt.com/docs/default-source/compliance/nyse-
pldt_303a-11_2013.pdf?sfvrsn=2

Corporate Business group
(for corporate accounts concerns)

101888

88-ALPHA (25742)
Telephone:
Contents
Fax:
(
632) 860-6112
Email address:
info@pldtalpha.com
2 Comparative Highlights
www.pldtalpha.com
Website:
3 Consolidated Financial Performance Highlights
SMe Business group
4 A Message from the Chairman
(for small and medium enterprise concerns)
8 A Letter from the President and CEO
Telephone:
13 PLDT Group Corporate Milestones
Email address: smenationinquiry@pldt.com.ph
Website: www.pldtsme-nation.com.ph
24 PLDT Group CSR Report
30 Corporate Governance Report
47 Enterprise Risk Management
48 Board of Directors
52 Key Officers and Advisors
56 PLDT Officers
57 Financial Review
Supplier relationship Management
103 Audit Committee Report
(for inquiries on vendor accreditation)
104 Statement of Management’s Responsibility
Telephone:
for Consolidated Financial Statements
Fax:
Email address: vmo@pldt.com.ph or vendorrelationmgnt@pldt.com.ph

Supply Chain, Asset Protection and Management
(for product offers, property-related matters, and asset protection/
security concerns)

Telephone:
Fax:
Email address: SCAPMG@pldt.com.ph

(632) 844-2361 or (632) 891-6304 or (632) 556-9953
(632) 860-6551

(632) 816-8533
(632) 860-6586 or (632) 811-4677

recruitment

Hotline:
Email address: pldthr@pldt.com.ph

105 Independent Auditors’ Report
106 Consolidated Statements of Financial Position
108 Consolidated Income Statements
(632) 8-PLDTHR or (632) 8-753847
109 Consolidated Statements of Comprehensive Income
110 Consolidated Statements of Changes in Equity
111 Consolidated Statements of Cash Flows
113 Notes to Consolidated Financial Statements

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PLDT is the leading telecommunications service

provider in the Philippines. Through its principal

business segments— wireless, fixed line and

others — PLDT offers the largest and most

diversified range of telecommunications services

across the Philippines’ most extensive fiber optic

backbone and wireless, fixed line, broadband

PLDT is in the forefront of the

digital age, bridging gaps between

generations and making life better.

and satellite networks.

In 2013, PLDT marked its 85th year

of changing lives with its innovative

products and services that delight

PLDT is listed on the Philippine Stock Exchange

(PSE:TEL) and its American Depositary Shares

are listed on the New York Stock Exchange

(NYSE:PHI). In 2013, PLDT was one of the largest

Philippine-listed companies in terms of market

young and old alike. It has transformed

capitalization.

into an integrated multimedia

Mission/Vision

conglomerate that provides not just

access but also data and content

PLDT will be the preferred full service provider

of voice, video and data at the most attractive

levels of price, service quality, content and

coverage, thereby bringing maximum benefit to

through various applications.

the Company’s stakeholders.

Values
Accountability
We take full responsibility for our actions
and decisions.

Integrity
We do the right thing.

Fairness
We uphold justice and fair play.

Transparency
We disclose accurate and prompt information.

Subsidiaries
Wireless
Smart Communications, Inc. and Subsidiaries
Digitel Mobile Philippines, Inc.
Smart Broadband, Inc. and Subsidiaries
Chikka Holdings Limited and Subsidiaries

Fixed Line
PLDT Clark Telecom, Inc.
PLDT Subic Telecom, Inc.
PLDT Global Corporation and Subsidiaries
PLDT-Philcom, Inc. and Subsidiaries
PLDT-Maratel, Inc.
Digital Telecommunications Philippines, Inc.
ePLDT, Inc. and Subsidiaries
Pilipinas Global Network Limited and Subsidiaries

Others
PLDT Communications and Energy Ventures, Inc.
Philippine Global Investments Holdings, Inc.

Contents
2 Comparative Highlights
3 Consolidated Financial Performance Highlights
4 A Message from the Chairman
8 A Letter from the President and CEO
13 PLDT Group Corporate Milestones
24 PLDT Group CSR Report
30 Corporate Governance Report
47 Enterprise Risk Management
48 Board of Directors
52 Key Officers and Advisors
56 PLDT Officers
57 Financial Review
103 Audit Committee Report
104 Statement of Management’s Responsibility
for Consolidated Financial Statements

105 Independent Auditors’ Report
106 Consolidated Statements of Financial Position
108 Consolidated Income Statements
109 Consolidated Statements of Comprehensive Income
110 Consolidated Statements of Changes in Equity
111 Consolidated Statements of Cash Flows
113 Notes to Consolidated Financial Statements

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Comparative Highlights

FINANCIAL INFORMATION (in million pesos, except
cash dividends declared per common share)

Revenues

Service Revenues
Non-Service Revenues

Expenses

Depreciation and Amortization
Compensation and Employee Beneﬁ ts

Repairs and Maintenance

Cost of Sales
Interconnection Costs
Selling and Promotions
Professional and Other Contracted Services
Rent
Asset Impairment
Others

Net Income (Loss) for the year
Continuing operations
Discontinued operations

Core Income

Continuing operations
Discontinued operations

EBITDA

2009

2010

2011

2012

2013

151,706
2,426
154,132

148,597
2,217
150,814

145,834
2,645
148,479

159,738
3,295
163,033

25,159
17,499
8,261
5,432
14,030
5,705
3,898
3,728
5,008
7,296
96,016
40,198
40,784
(586)
41,241
41,809
(568)
85,730

25,881
19,759
9,087
4,771
13,928
5,244
4,462
3,699
1,420
7,036
95,287
39,825
40,314
(489)
41,594
41,056
538
82,049

27,539
15,411
10,053
5,443
12,586
7,807
5,143
3,938
10,200
8,304
106,424
31,218
30,351
867
38,616
37,827
789
78,225

32,354
21,999
12,604
8,747
11,105
9,708
5,361
5,860
5,286
9,505
122,529
36,099
35,556
543
36,907
36,356
551
75,388

164,052
4,279
168,331

30,304
21,369
13,107
11,806
10,610
9,776
6,375
6,041
5,543
10,584
125,515
35,453
33,384
2,069
38,717
38,816
(99)
77,552

Property, Plant and Equipment
Accumulated Depreciation, Amortization and
Impairment

Carrying Value

Capital Expenditures
Short and Long-Term Debts
Net Debts
Equity Attributable to Equity Holders of PLDT
Cash Dividends Declared Per Common Share

Out of the Earnings for the Year

390,692

416,390

481,647

481,033

581,286

229,436
161,256
28,069
98,729
56,586
96,821

253,206
163,184
28,766
89,646
52,299
97,416

281,505
200,142
31,207
117,275
70,660
153,860

280,955
200,078
36,396
115,792
78,057
145,550

388,621
192,665
28,838
104,090
71,467
137,147

218

222

189

172

179

OPERATING INFORMATION
Number of Cellular Subscribers
Number of Fixed Line Subscribers
Number of Broadband Subscribers
Wireless

Fixed Line

Total Number of Subscribers
Number of Stockholders

Number of Employees
Wireless

Fixed Line

41,328,641
1,816,541
1,597,384
1,037,720
559,664
44,742,566
2,183,194

45,636,008
1,822,105
1,999,025
1,355,977
643,048
49,457,138
2,182,391

63,696,629
2,166,295
2,910,682
2,068,409
842,273
68,773,606
2,181,823

69,866,458
2,063,794
3,246,423
2,359,024
887,399
75,176,675
12,169

70,045,627
2,069,419
3,415,793
2,453,826
961,967
75,530,839
12,005

13,454
5,507
7,947

14,737
5,165
9,572

19,452
8,043
11,409

19,125
8,663
10,462

17,899
7,680
10,219

The 2009-2012 results have been adjusted to reﬂ ect the adjustments on the application of the Revised PAS 19 - Employee Beneﬁ ts.

2 • 2013 PLDT ANNUAL REPORT

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Consolidated Financial
Performance Highlights

164.1B

77.6B

38.7B

200

150

151.7

50.2

148.6

46.8

145.8
45.2

159.7

47.6

164.1
49.1

100

101.5

101.8

100.6

112.1

115.0

82.0

78.2

75.4

77.6

100

85.7

41.2

41.6

38.6

36.9

38.7

09 10 11 12 13

CORE INCOME
(in billion pesos)

09 10 11 12 13

SERVICE REVENUES
(in billion pesos)

Wireless

Fixed Line

EBITDA
(in billion pesos)

75.5M

73.8B

576.1B

77.3

74.4

79.2

80.4

600

545.1

546.6

576.1

73.8

500

489.4

477.0

75.2
3.2
2.1
69.9

75.5

3.4
2.1
70.0

68.8
2.9
2.2
63.7

49.4
2.0
1.8
45.6

44.7
1.6
1.8
41.3

09 10 1 1 12 13

09 10 11 12 13

SUBSCRIBER BASE
(in millions)

Wireless

Fixed Line

Broadband

CASH FLOW
FROM OPERATIONS
(in billion pesos)

400

300

200

100

09 10 11 12 13

MARKET
CAPITALIZATION
(Year-end, in billion pesos)

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A Message from the Chairman
A Message from the Chairman

CLEARLY, PLDT’S
CLEARLY, PLDT’S

OVERARCHING GOAL
OVERARCHING GOAL

IS TO GO FAR BEYOND
IS TO GO FAR BEYOND

TRADITIONAL TELECOMS,
TRADITIONAL TELECOMS,

AND OFFER A GROWING
AND OFFER A GROWING

RANGE OF DIGITAL
RANGE OF DIGITAL
CONTENT AND
CONTENT AND
SERVICES THROUGH
SERVICES THROUGH
ITS EXTENSIVE
ITS EXTENSIVE
INFRASTRUCTURE.
INFRASTRUCTURE.

4 • 2013 PLDT ANNUAL REPORT
4 • 2013 PLDT ANNUAL REPORT

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Our Future is Digital

TO MY FELLOW SHAREHOLDERS:
TO MY FELLOW SHAREHOLDERS:

I am pleased to report that your Company has, in 2013,
I am pleased to report that your Company has, in 2013,
returned to a path of sustained growth despite the
returned to a path of sustained growth despite the
tough challenges of today’s disruptive, digital world.
tough challenges of today’s disruptive, digital world.

We have accomplished this by vigorously pursuing a
We have accomplished this by vigorously pursuing a
demanding two-pronged strategy: First, maximizing
demanding two-pronged strategy: First, maximizing
the value of our traditional services such as voice
the value of our traditional services such as voice
and text messaging even as these are continuously
and text messaging even as these are continuously
challenged by free web-based communications
challenged by free web-based communications
services. Second, building new digital businesses by
services. Second, building new digital businesses by
combining data access with rich multimedia content
combining data access with rich multimedia content
and cloud-based services and partnering – rather than
and cloud-based services and partnering – rather than
competing – with internet companies offering over-
competing – with internet companies offering over-
the-top (OTT) services.
the-top (OTT) services.

The positive results of these efforts are borne out
The positive results of these efforts are borne out
by PLDT’s ﬁ nancial results for 2013. After two years
by PLDT’s ﬁ nancial results for 2013. After two years
of decline, consolidated service revenues in 2013
of decline, consolidated service revenues in 2013
increased by Php4.3 billion to Php164.1 billion, up 3.0%
increased by Php4.3 billion to Php164.1 billion, up 3.0%
from the previous year. EBITDA is up by 3% as well to
from the previous year. EBITDA is up by 3% as well to
Php77.6 billion. Core net income rose by 5% to Php38.7
Php77.6 billion. Core net income rose by 5% to Php38.7
billion, slightly above our guidance ﬁ gure.
billion, slightly above our guidance ﬁ gure.

This performance enabled PLDT to close 2013 with a
This performance enabled PLDT to close 2013 with a
market capitalization of Php576.1 billion, a 5.4% increase
market capitalization of Php576.1 billion, a 5.4% increase
in share price year-on-year, making it the country’s most
in share price year-on-year, making it the country’s most
valuable company. For the seventh year running, PLDT
valuable company. For the seventh year running, PLDT
declared dividends amounting to 100% of core income.
declared dividends amounting to 100% of core income.

The progress that your Company made in 2013
The progress that your Company made in 2013
becomes more evident in the changing composition
becomes more evident in the changing composition
of its revenues. The revenues of our fast growing data
of its revenues. The revenues of our fast growing data
businesses reached Php35.4 billion, surpassing for
businesses reached Php35.4 billion, surpassing for
the ﬁ rst time, the revenues of our legacy businesses
the ﬁ rst time, the revenues of our legacy businesses
(speciﬁ cally, international and national long distance)
(speciﬁ cally, international and national long distance)
which stood at Php26.9 billion. Moreover, our data
which stood at Php26.9 billion. Moreover, our data
revenues grew four times faster by 16% than the rate
revenues grew four times faster (16%) than the rate
of decline of the latter by 4%. Our President and CEO,
of decline of the latter (-4%). Our President and CEO,
Polly Nazareno, calls this as the “cross-over point.”
Polly Nazareno, calls this as the “cross-over point.”
Having passed that crucial crossroad has put PLDT
Having passed that crucial crossroad has put PLDT
in a better position to pursue growth sustainably
in a better position to pursue growth sustainably
moving forward.
moving forward.

FORTIFYING OUR FIBER
FORTIFYING OUR FIBER
Our changing revenue mix underscores that our future
Our changing revenue mix underscores that our future
clearly lies in data and in ﬁ ber. That anticipation has
clearly lies in data and in ﬁ ber. That anticipation has
been driving our strategic investments in technical
been driving our strategic investments in technical
infrastructure in recent years and has given us a
infrastructure in recent years and has given us a
decisive advantage in today’s data-driven world.
decisive advantage in today’s data-driven world.

We have for example fortiﬁ ed our ﬁ ber advantage,
We have for example fortiﬁ ed our ﬁ ber advantage,
which is critical to our ability to handle the expected
which is critical to our ability to handle the expected
explosion of data trafﬁ c in the coming years. As of
explosion of data trafﬁ c in the coming years. As of
end-2013, PLDT expanded its ﬁ ber optic network
end-2013, PLDT expanded its ﬁ ber optic network
to over 78,000 kilometers – four times that of
to over 78,000 kilometers – four times that of
competition. We continue to extend the reach of our
competition. We continue to extend the reach of our
network and expect to have nearly 100,000 kilometers
network and expect to have nearly 100,000 kilometers
of ﬁ ber by end-2014.
of ﬁ ber by end-2014.

On the back of this investment, we are extending the
reach of our ﬁ ber-to-the-home (FTTH) facilities to
many more homes and ofﬁ ces. We are also expanding
the footprint of our fourth-generation Long-Term
Evolution (LTE) mobile phone network to about 50%
of the population, and our 3G network to 100% of
the population by end-2014. We have also begun to
deploy the LTE Time Division Duplex (TDD) to provide
ﬁ xed wireless high-speed broadband service. This
early, our mobile subsidiary, Smart Communications,
Inc. (Smart), has already conducted tests with
Advanced LTE – the next step forward for 4G.

Indeed, we are building large pipes to carry
increasingly huge amounts of data. But we do not
want to become merely a “dumb pipe.” Clearly,
PLDT’s overarching goal is to go far beyond traditional
telecoms, and offer a growing range of digital content
and services through its extensive infrastructure.

MULTIMEDIA, MULTI-SCREEN
We are going multimedia and multi-screen.

Capitalizing on its growing FTTH footprint, PLDT is
using Telpad – the world’s ﬁ rst online landline with
Android tablet service – and TVolution – a pocket-
sized device that turns an ordinary TV into an
internet TV – to offer digital video, music, games and
educational content.

PLDT’s mobile subsidiaries – Smart and Digitel Mobile
Philippines, Inc. (DMPI) – have combined to create
the country’s largest marketplace for digital content.
Through its mobile online music portal Spinnr, our
cellular companies have made it possible for our over
70 million subscribers to purchase music downloads
and streaming using airtime load or operator billing.
These payment channels – particularly airtime load –
are making possible online purchases of digital content
on a vastly much larger scale than ever before.

Smart is also leading the way for our efforts to unlock
the market for prepaid mobile data. It is doing this
by offering relevant data services (like email, chat and
social media) in very affordable “sachet packs” of as
low as Php5 through breakthrough, multi-awarded
smartphone applications like SmartNet and PowerApp.

Smart and DMPI are partnering with OTT players that
offer a growing range of social media, messaging,
voice over IP and other services. At ﬁ rst blush, this
course of action appears self-defeating because OTT
players offer services that directly compete with
those of telecoms operators like ourselves. But in the
“coopetitive” landscape of the internet world, telecoms
companies and OTTs are increasingly ﬁ nding ways to
work with each other for their mutual beneﬁ t – if not
their survival.

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LIVE DIGITAL ! • 5
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5/3/14 11:56 AM

That said, we are ever mindful of both the pitfalls
and opportunities as we venture further into digital
territory. We are after all a “digital migrant,” not
“digital natives” as the OTT players are. Indeed,
there is cause for caution given how web-based
technologies and business models continue to disrupt
industry after industry.

In our view, however, the way forward is to embrace
disruption, not avoid it. Our task is to focus on creating
sustainable business models for the digital businesses
that we build. This effort is being spearheaded by our
innovation groups within our mainstream organizations
and those outside such as Smart subsidiary Voyager
Innovations, Inc., and IdeaSpace Foundation, our tech
startups incubator and accelerator.

To succeed in this effort, we need to leverage on our
unique combination of assets, people and resources
– our infrastructure, market reach and our kinship
with other major infrastructure companies in the
country, particularly those which are part of the First
Paciﬁ c Group.

A BUMPER CROP OF AWARDS
It is gratifying to note how our efforts in innovation,
corporate governance and community services have
been rewarded by recognition at home and overseas.

The international consulting ﬁ rm Frost & Sullivan
Philippine Excellence Awards conferred four awards
to PLDT in 2013, including awards for Telecom Service
Provider of the Year, Broadband Service Provider, Data
Center Service Vendor and Hosted Contact Center
Service Provider.

Our President and CEO Polly Nazareno won as
Asia’s Third Best CEO from institutional investor’s
All-Asia Executive Ranking while I was recognized
as Best Asian Director and your Company as Icon
on Corporate Governance in the 2013 Corporate
Governance Asia Awards.

For the ﬁ fth consecutive year, your Company was
ranked number one in the Most Committed to a
Strong Dividend Policy and Best Investor Relations
in poll done by Hong Kong-based publication
FinanceAsia that show recognition of how PLDT
consistently gives importance to its shareholders.
In other categories, PLDT was ranked as one of the
top 10 in each of the Best Corporate Governance,
Best Managed Company, and Best Corporate Social
Responsibility categories.

PLDT also won the Most Consistent Dividend Policy
during the Third Annual Southeast Asia Institutional
Investor Corporate Awards as well as the Best
Investor Relations by a Philippine Company from the
IR Magazine Awards Southeast Asia 2013.

Smart won several international innovation awards
for its path-breaking mobile internet platform called
SmartNet. It won the Best Content Service Award at

the Asia Communications Awards (ACA) program in
Singapore, the Best Consumer Service Award at the
World Communications Award in London and the
Best Operator OTT Service Award from the online
publication Telecoms.com in Barcelona.

Smart also received the Best Community Telecom
Project citation at the Telecom Asia Awards in
Kuala Lumpur for its role in developing the Android
application for the Project National Operational
Assessment oh Hazards & Risks (NOAH) website of the
Department of Science and Technology and PAGASA
Weather Bureau.

Smart also won in the Environment and Value Chain
Management category of the Asian CSR Awards for
its Green Merchandizing program, which involves
the use of eco-friendly materials for outdoor and
indoor merchandizing.

DEALING WITH DISASTERS
In what has been – tragically – a banner year for
calamities in the Philippines, the PLDT Group has been
at the frontlines of responding to these emergencies.

From the armed conﬂ ict that gripped Zamboanga
City to the earthquake that shook Bohol and Cebu,
to the super typhoon that cut a path of death and
destruction through Central Philippines, PLDT worked
with kindred companies, other private corporations,
NGOs, national agencies and local governments to
bring assistance to the affected communities in 2013.

The vital nature of our businesses gets us in the
thick of things, almost by default. When Typhoon
Yolanda (Haiyan) swept through the Visayas islands,
it disrupted power, water, and communications,
particularly in Leyte and Samar. Restoring these
services was a critical priority in the overall relief and
recovery effort.

PLDT and Smart played a leading role, providing
satellite communications to government relief and
international humanitarian agencies and to local
governments of communities that had been cut-
off. We worked with international partners, Thuraya
Telecommunications Co. (Thuraya), Vodafone
Foundation and Telecoms Sans Frontieres, to slice
through the silence that blanketed the worst-hit areas.

Our ﬁ eld engineers and sales people operated free-
call stations to give typhoon survivors the chance
to contact their families and friends. Smart and Sun
Cellular also provided free SMS for subscribers in the
affected areas. Meantime, we rushed the restoration
of mobile and ﬁ xed line communications to all the
affected towns and cities and completed the task in
just one month.

Working with the Philippine Disaster Recovery
Foundation (PDRF), PLDT helped raise funds through
telethons held by TV5 and SMS fund drives done
by Smart and Sun Cellular for communities affected

6 • 2013 PLDT ANNUAL REPORT
6 • 2013 PLDT ANNUAL REPORT

main mar.indd 6

5/3/14 11:56 AM

by the Bohol earthquake through the Brick-by-Brick
campaign, and those impacted by Typhoon Yolanda
through the helpPH global philanthropy campaign.

In partnership with the Land Bank of the Philippines,
Smart deployed its mobile money service to support
the emergency cash transfer programs of the United
Nations Development Programme in Leyte and Iloilo.

For its comprehensive and immediate response
to the Typhoon Yolanda emergency, Smart won
an award in February 2014 for the “Best Use of
Mobile for Emergency or Humanitarian Efforts” at
the annual meeting of the Groupe Speciale Mobile
Association (GSMA), the global association of mobile
phone operators.

Our activities in the ﬁ eld of education were, in part,
adjusted to support post-disaster recovery effort. In
cooperation with PDRF, PLDT’s Gabay Guro (2G) built
10 storm-resistant, fully-equipped classroom buildings
in Tacloban City and Palo in Leyte, and Ivisan in
Capiz, beneﬁ tting around 700 pupils. PLDT also built
classrooms in the municipalities of Cordova and Lapu
Lapu City in Cebu and Tagbilaran, Loay and Cortes
in Bohol. In Tacloban City and in Bohol province, 2G
provided cash calamity assistance and grocery items
to teachers, and ﬂ ew in counseling experts to help
them recover from the emotional trauma caused by
these calamities.

In other areas of the country, 2G pursued its core
program of providing scholarships and other
assistance to public and private school teachers. It
staged its annual tribute to teachers at the Mall of Asia
Arena attended by around 17,000 teachers.

PLDT’s Infoteach Outreach program continued to
provide internet and computer education, reaching
over 1,600 public school teachers and students from
100 public schools in 10 provinces in different parts of
the country in 2013.

Meantime, Smart developed new programs in mobile
education in partnership with the GSMA mEducation
Committee, the Department of Education (DepEd) and
Technical Education and Skills Development Authority.
It launched a mobile application for mobile teachers of
DepEd’s alternative learning system for out-of-school-
youth. The app contains all the training modules of the
teachers and is bundled for free with low-cost tablets
powered by Smart mobile internet connectivity.

Smart also launched the country’s ﬁ rst Massive Open
Online Content (MOOC) in partnership with the
University of the Philippines Open University (UPOU).
The free online course on Android Mobile Applications
Development will soon be followed by other online
courses to be developed by Smart.

A novel education program called Smart TXTBKS
has won numerous awards, including the Philippines’
ﬁ rst Grand Prix at the 60th Cannes Lions International

Festival of Creativity. Developed by advertising agency
DM9 JaymeSyfu and Smart, the project involves the
conversion of textbooks into SIM content that can be
read by schoolchildren using feature phones.

For technopreneurship, the ﬁ rst batch of IdeaSpace
tech startups ﬁ nished their incubation program
last November. We are currently in the process of
selecting the second batch. This time around, the
ﬁ eld has been narrowed down to 20 ﬁ nalists who are
going through an incubation and accelerator program
from which 10 winners will emerge.

Our efforts to promote tech startups in the country
are in its infancy. But this early, IdeaSpace has
already attracted over 600 proposals from aspiring
technopreneurs all over the country, indicating that
we are making progress in democratizing access of
technical and ﬁ nancial assistance for tech startups.

Finally, in the ﬁ eld of sports, the high point for 2013
must be the successful staging of the FIBA Asia
Basketball Championship for Men in Manila, where
the Gilas Pilipinas team made a valiant effort that
won for them second place with a 7-2 record, and
more importantly, a chance to compete in the World
Championships in Spain in August 2014. This was an
uplifting, unifying moment for Filipinos who joined as
one in support of the national team.

OUTLOOK
During a recent visit to Silicon Valley in California, I
had the opportunity – along with senior management
from the First Paciﬁ c Group, all 50 of us – to talk
with various players in the tech industry including
senior executives, tech startups, venture capitalists,
academicians and established industry players. We
came back from that trip convinced that, 25 years
after its birth, the internet revolution is just getting
started. And I have concluded that the theme of that
Immersion Program at the Valley – “Disrupt or Be
Disrupted. Are we the Wolf or the Sheep?” – is most
appropriate indeed.

From the worldwide web, we are now moving towards
the Internet of Things and the Internet of Everything,
where billions of people – plus tens of billions of a
wide range of devices – will be connected via the web.
Industry after industry need to come to terms with this
growing reality, and must learn to proﬁ t and thrive in
this unsettling environment.

The PLDT Group is making that challenging but
exciting transition - from being a telecoms operator to a
digital company offering a wide range of life services
in an increasingly connected world.

Let me close by thanking our shareholders for their
unrelenting support, our Board of Directors for their
wise counsel, and the Management and Staff for
their commitment and perseverance in serving your
Company, our Customers and our Country.

main mar.indd 7

MANUEL V. PANGILINAN
MANUEL V. PANGILINAN
Chairman of the Board
Chairman of the Board

LIVE DIGITAL ! • 7
LIVE DIGITAL ! • 7

5/3/14 11:56 AM

A Letter from the President and CEO

THE PLDT GROUP’S

INTEGRATED FIXED

LINE AND WIRELESS

NETWORK REMAINS

UNRIVALLED IN ITS

ABILITY TO PROVIDE

HIGH-QUALITY VOICE,

DATA AND MULTIMEDIA

SERVICES TO OUR

CUSTOMERS.

8 • 2013 PLDT ANNUAL REPORT
8 • 2013 PLDT ANNUAL REPORT

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5/3/14 11:56 AM

Maximizing Data Growth

DEAR FELLOW SHAREHOLDERS:

In the last two years, PLDT operated in a challenging
competitive environment, while at the same time,
undertaking important internal changes. We have
reorganized our ﬁ xed and mobile businesses
to take into account the acquisition of Digital
Telecommunications and Sun Cellular. We have also
undertaken a massive network transformation program.
All of these have impacted on our ﬁ nancial results.

At this point, however, we are proud to announce that
after two years of decline in our proﬁ tability, PLDT is
ﬁ rmly back on the growth track.

Core income, excluding exceptional items, grew by
Php1.8 billion or 5% year-on-year to Php38.7 billion
from Php36.9 billion in 2012. Higher revenues, EBITDA
and equity share in earnings of Beacon Electric Asset
Holdings, Inc. (Beacon), as well as lower depreciation,
contributed to the increase. In addition, this year’s
core income included a Php2.1 billion gain from the
sale of the ﬁ nal two tranches of Philweb shares.

Reported net income for 2013 of Php35.4 billion was
lower by 2% compared with 2012 reﬂ ecting higher
foreign exchange and derivative losses and the
adverse impact of Typhoon Yolanda. Excluding the
typhoon losses, reported net income would have been
stable year-on-year.

Consolidated service revenues for 2013 rose by
3% year-on-year to Php164.1 billion as the ongoing
structural change in PLDT’s revenue mix continues to
temper revenue growth.

Revenues from cellular domestic voice, cellular SMS
and LEC, which accounted for 62% of total revenues in
2013, remained stable at Php101.8 billion.

Growing revenue streams from non-SMS data services
of Php35.4 billion in 2013 now account for 22% of total
revenues, overtaking the 16% contribution from our
legacy revenue streams from international inbound
voice and national long distance businesses. Note that
the growth of data and broadband accelerates the
decline in legacy voice revenues.

The structural change in the revenue mix where high
margin revenues from our legacy businesses are being
replaced by revenues from relatively lower margin
data and broadband businesses, as well as increases
in handset and device subsidies following our greater
push for postpaid revenues, have put pressure on
EBITDA margins. Nevertheless, consolidated EBITDA
for the year grew to Php77.6 billion or 3% higher versus
2012, while EBITDA margin remained stable at 47%.

Free cash ﬂ ow for 2013 rose by Php4.4 billion or 12%
to Php42 billion and exceeded core income for the
year by Php3.3 billion, mainly due to the lower level
of capital expenditures (capex) for the year following
the completion of the network transformation
program in 2012.

For the seventh consecutive year, PLDT declared 100%
of its core earnings as dividends. Total dividends per
share of Php179 include regular dividends of Php125
and special dividends of Php54, representing 70% and
30% of 2013 core earnings per share, respectively.

At the closing share price of Php2,666 at the end of
2013, PLDT’s dividend yield stood at 6.7%, one of the
highest, not only in the Philippines, but also within
the region.

UNMATCHED NETWORK
PLDT continues to fortify its unparalleled network
advantage.

Following a two-year Php67.6 billion network
modernization program completed in 2012, PLDT
spent approximately Php29 billion for capex in
2013 in anticipation of the growth in our data and
broadband businesses.

Capex for 2013 included the further expansion of
our 2G, 3G and 4G coverage and capacity. This also
increased our ﬁ ber footprint to 78,000 kilometers
which enabled us to grow our FTTH coverage to
two million homes passed, to further expand ﬁ ber
connectivity of our cellular base stations and to
increase our international cable capacity.

As a result, the PLDT Group’s integrated ﬁ xed and
wireless network remains unrivalled in its ability to
provide high-quality voice, data and multimedia
services to our customers.

BROADBAND RISING
The upward momentum in broadband revenues was
maintained with consolidated ﬁ xed and wireless
broadband revenues higher by 16% or Php3.7 billion at
Php26.6 billion in 2013. Broadband now accounts for
16% of total revenues as compared with 14% in 2012.

Fixed and wireless broadband each rose by 10% year-
on-year while mobile internet browsing revenues,
which reached the Php5-billion-mark, grew by 59%
from last year.

These results highlight the rising popularity of
broadband in the Philippines, which provides a rich
source of potential revenues for PLDT. Almost 50%
of our ﬁ xed line subscribers have a DSL subscription,
while about 15% of our wireless subscribers own
smartphones. There is room for further growth as
shared access via internet cafés still accounts for a
large share of internet usage.

To encourage more of our ﬁ xed line subscribers to
sign up for DSL plans, PLDT has a suite of offers that
includes bundles providing access devices such as
Telpad and TVolution, as well as triple-play services that
offer landline, high-speed internet and pay TV content.

main mar.indd 9

LIVE DIGITAL ! • 9
LIVE DIGITAL ! • 9

5/3/14 11:56 AM

On the wireless side, efforts to raise mobile internet
On the wireless side, efforts to raise mobile internet
On the wireless side, efforts to raise mobile internet
browsing revenues continue, including seeding
browsing revenues continue, including seeding
browsing revenues continue, including seeding
smartphone ownership through postpaid plans.
smartphone ownership through postpaid plans.
smartphone ownership through postpaid plans.

Though postpaid has grown in importance, we believe
Though postpaid has grown in importance, we believe
Though postpaid has grown in importance, we believe
that the Philippines will largely remain a prepaid
that the Philippines will largely remain a prepaid
that the Philippines will largely remain a prepaid
market. As a result, we are focusing on unlocking
market. As a result, we are focusing on unlocking
market. As a result, we are focusing on unlocking
prepaid data through various means, including the
prepaid data through various means, including the
prepaid data through various means, including the
bundling of non-SMS data with voice and SMS plans,
bundling of non-SMS data with voice and SMS plans,
bundling of non-SMS data with voice and SMS plans,
low denomination data sachets or sachet apps. We
low denomination data sachets or sachet apps. We
low denomination data sachets or sachet apps. We
are also leveraging content to engage the customer
are also leveraging content to engage the customer
are also leveraging content to engage the customer
as well as encourage and expand usage. With these
as well as encourage and expand usage. With these
as well as encourage and expand usage. With these
initiatives, plus the increasing availability of affordable
initiatives, plus the increasing availability of affordable
initiatives, plus the increasing availability of affordable
smartphones, and PLDT’s network advantage, we
smartphones, and PLDT’s network advantage, we
smartphones, and PLDT’s network advantage, we
expect even more signiﬁ cant increases in mobile
expect even more signiﬁ cant increases in mobile
expect even more signiﬁ cant increases in mobile
internet browsing revenues in the near future.
internet browsing revenues in the near future.
internet browsing revenues in the near future.

Service revenues from our wireless business grew by
Service revenues from our wireless business grew by
Service revenues from our wireless business grew by
Php2.9 billion or 3% year-on-year to Php116.7 billion in
Php2.9 billion or 3% year-on-year to Php116.7 billion in
Php2.9 billion or 3% year-on-year to Php116.7 billion in
2013, reﬂ ecting the continued growth of non-SMS data
2013, reﬂ ecting the continued growth of non-SMS data
2013, reﬂ ecting the continued growth of non-SMS data
and cellular voice revenues.
and cellular voice revenues.
and cellular voice revenues.

In addition to the change in our wireless revenue mix,
In addition to the change in our wireless revenue mix,
In addition to the change in our wireless revenue mix,
the on-going change in our cellular subscriber mix
the on-going change in our cellular subscriber mix
the on-going change in our cellular subscriber mix
is expected to impact service revenue growth and
is expected to impact service revenue growth and
is expected to impact service revenue growth and
EBITDA margins. Prepaid revenues representing 82%
EBITDA margins. Prepaid revenues representing 82%
EBITDA margins. Prepaid revenues representing 82%
of cellular revenues were stable year-on-year. On
of cellular revenues were stable year-on-year. On
of cellular revenues were stable year-on-year. On
the other hand, postpaid revenues registered a 15%
the other hand, postpaid revenues registered a 15%
the other hand, postpaid revenues registered a 15%
increase over last year to Php19.0 billion and now
increase over last year to Php19.0 billion and now
increase over last year to Php19.0 billion and now
account for 18% of cellular service revenues from 16%
account for 18% of cellular service revenues from 16%
account for 18% of cellular service revenues from 16%
in 2012.
in 2012.
in 2012.

Wireless EBITDA for 2013 rose by Php0.2 billion from
Wireless EBITDA for 2013 rose by Php0.2 billion from
Wireless EBITDA for 2013 rose by Php0.2 billion from
2012 to Php54.7 billion, with EBITDA margin at 47%
2012 to Php54.7 billion, with EBITDA margin at 47%
2012 to Php54.7 billion, with EBITDA margin at 47%
mainly due to higher subsidies to support initiatives to
mainly due to higher subsidies to support initiatives to
mainly due to higher subsidies to support initiatives to
grow the postpaid business.
grow the postpaid business.
grow the postpaid business.

Efforts to increase wireless revenues are directed
Efforts to increase wireless revenues are directed
Efforts to increase wireless revenues are directed
towards improving ARPUs by growing non-SMS
towards improving ARPUs by growing non-SMS
towards improving ARPUs by growing non-SMS
data revenues.
data revenues.
data revenues.

PLDT’s ﬁ xed line business continued to register year-
PLDT’s ﬁ xed line business continued to register year-
PLDT’s ﬁ xed line business continued to register year-
on-year improvements as service revenues grew by 4%
on-year improvements as service revenues grew by 4%
on-year improvements as service revenues grew by 4%
to Php53.7 billion, net of interconnection costs.
to Php53.7 billion, net of interconnection costs.
to Php53.7 billion, net of interconnection costs.

Growth was underpinned by data revenues which now
Growth was underpinned by data revenues which now
Growth was underpinned by data revenues which now
account for more than half of total ﬁ xed line revenues.
account for more than half of total ﬁ xed line revenues.
account for more than half of total ﬁ xed line revenues.
Corporate data revenues recorded a 6% rise to Php13.1
Corporate data revenues recorded a 6% rise to Php13.1
Corporate data revenues recorded a 6% rise to Php13.1
billion, while ﬁ xed broadband revenues were 9% higher
billion, while ﬁ xed broadband revenues were 9% higher
billion, while ﬁ xed broadband revenues were 9% higher
at Php12.3 billion following an 8% increase in subscribers.
at Php12.3 billion following an 8% increase in subscribers.
at Php12.3 billion following an 8% increase in subscribers.
Data center revenues grew by 61% to Php1.8 billion
Data center revenues grew by 61% to Php1.8 billion
Data center revenues grew by 61% to Php1.8 billion
highlighting the increasing adoption of cloud computing
highlighting the increasing adoption of cloud computing
highlighting the increasing adoption of cloud computing
and data center services in the country.
and data center services in the country.
and data center services in the country.

Fixed line EBITDA rose by Php2.2 billion or 11%
Fixed line EBITDA rose by Php2.2 billion or 11%
Fixed line EBITDA rose by Php2.2 billion or 11%
year-on-year to Php22.3 billion with EBITDA margin
year-on-year to Php22.3 billion with EBITDA margin
year-on-year to Php22.3 billion with EBITDA margin
higher at 36% mainly due to higher revenues and
higher at 36% mainly due to higher revenues and
higher at 36% mainly due to higher revenues and
expenses related to the manpower rightsizing
expenses related to the manpower rightsizing
expenses related to the manpower rightsizing
program (MRP) in 2012.
program (MRP) in 2012.
program (MRP) in 2012.

The continued improvement in the Philippine economy
bodes well for PLDT’s HOME and Enterprise
businesses as it creates a growing demand for
broadband and data services for retail customers,
SMEs and large corporations.

Our suite of HOME services offers integrated access,
content and various devices to provide a richer
multimedia experience through the internet.

Enterprise solutions, on the other hand, include
Ethernet, cloud computing, and data center services
that help increase customer productivity, efﬁ ciencies
and competitiveness.

BUNDLING ACCESS AND CONTENT
As the worlds of telecommunications, media and
the internet continue to converge, we are pursuing
more aggressively our strategy to transform PLDT
into a multimedia services organization. Thus we are
stepping up our efforts to integrate content with our
ﬁ xed and wireless offers.

We have expanded content available to our DSL and
Fibr subscribers to include more movies, TV series,
music, games and sports. Our wireless subscribers,
on the other hand, can access music from Spinnr, the
biggest mobile online music portal in the country.

For gamers, ePINS are available from our gaming portal
GameX. Given low credit card penetration in the country,
payments for content services can be conveniently
charged to prepaid loads or postpaid bills.

As for Cignal TV, the direct-to-home (DTH) business
that PLDT has invested in via Philippine Depository
Receipts (PDRs), the growth in its subscriber base
continues unabated, reaching about 602,000
subscribers at the end of 2013.

Cignal TV recently won exclusive rights to air the
Winter Olympics in Sochi and the upcoming Summer
Olympics in Brazil. Cignal TV’s content portfolio
continues to broaden, parts of which we were able to
bundle with our ﬁ xed line triple play service and TV-to-
Go mobile offering.

We ﬁ rmly believe that we can create new revenue
sources by capitalizing on our network strengths
and combining this with new ways of providing our
customers with engaging and compelling content.

ENHANCING MERALCO INVESTMENT
Through PLDT Communications and Energy Ventures,
Inc. (PCEV), the PLDT Group continues to co-own
Beacon Asset Holdings, Inc., together with Metro
Paciﬁ c Investments Corp. (MPIC). Beacon remains
the largest shareholder of Meralco with about 50%
ownership interest.

10 • 2013 PLDT ANNUAL REPORT
10 • 2013 PLDT ANNUAL REPORT

main mar.indd 10

5/3/14 11:56 AM

In 2013, Meralco registered core earnings of Php17
billion, a 5% increase over Php16.3 billion in 2012.
Approximately 70% of 2013 core earnings, equivalent
to Php10.55 per share, were paid out as dividends.

Entry into power generation provides an additional avenue
for the future growth of Meralco, further enhancing the
value of PLDT’s investment in the company.

OUR STRONG DEBT POSITION
PLDT’s consolidated ﬁ nancial position remained robust
in 2013. Consolidated gross debt decreased by US$0.5
billion to US$2.4 billion while net debt declined to
US$1.6 billion.

Following a modest increase of above 1x at the end of
2012, net debt to EBITDA dipped to 0.92x at the end
of 2013.

In February 2014, PLDT’s seven- and 10-year peso
ﬁ xed-rate maiden issue bonds were listed on the
Philippine Dealing and Exchange Corp. (PDEX).
Proceeds from the Php15 billion domestic retail bond
issue will be used for capex and debt reﬁ nancing.

PLDT’s debt maturities continue to be well spread out.

PLDT’s credit ratings with Fitch, Moody’s and Standard
and Poor’s remain at investment grade.

2014: MAXIMIZING DATA GROWTH
Now that we have steered PLDT back ﬁ rmly into
the growth path, our focus for 2014 is to maintain
this momentum in proﬁ tability while managing
the transformation of revenue mix. This involves
expanding our data businesses while maintaining the
equilibrium of our core businesses and managing the
declines of our legacy services.

We recognize that we cannot stand still and simply
wait for the on-going changes to disrupt our business.
This is what drives us to proactively explore how we
can future-proof PLDT, including leveraging content
and multimedia, and investing to ensure that our
network advantage is maintained and fortiﬁ ed.

Our objective is to successfully transition and
strengthen PLDT’s leadership in the emerging digital
world. On behalf of the PLDT team, I afﬁ rm to you, our
shareholders, our ﬁ rm commitment to attain this goal.

NAPOLEON L. NAZARENO
NAPOLEON L. NAZARENO
President and Chief Executive Ofﬁ cer
President and Chief Executive Ofﬁ cer

Php164.1B

TOTAL SERVICE REVENUES

Php77.6B

EBITDA

Php38.7B

CORE NET INCOME

Php38.7B
75.5M

TOTAL
SUBSCRIBER
BASE

Php77.6B

main mar.indd 11

5/3/14 11:56 AM

LIVE DIGITAL ! • 11
LIVE DIGITAL ! • 11

LIVE DIGITAL!

REALIZING THAT THE STRONGEST CONNECTIONS ARE AT HOME,
THE PLDT GROUP’S INNOVATIVE PRODUCTS AND SERVICES HELP
FAMILY MEMBERS STAY CONNECTED AND ENGAGED.

12 • 2013 PLDT ANNUAL REPORT

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5/3/14 11:56 AM

PLDT Group Corporate Milestones

PARTNERSHIPS, 2013 WAS A YEAR THAT PLDT FURTHER STRENGTHENED

ITS NETWORK COVERAGE AND PROVIDED RELEVANT AND INNOVATIVE

SOLUTIONS TO CONNECT PEOPLE AND COMMUNITIES.

Most reliable and extensive network powered by ﬁ ber
The PLDT Group continued its efforts to provide the most powerful, reliable and
extensive network services. The Group maintained its position as the leading network
provider with its landline, ﬁ ber, wireless, internet and Cloud infrastructure projects.

PLDT upgraded its ﬁ ber optic transport network using
100G technology, the ﬁ rst in the country.

main mar.indd 13

5/3/14 11:56 AM

LIVE DIGITAL ! • 13

PLDT Fibr, the Company’s most
powerful residential broadband
service was launched in over
1,000 residential areas in different
parts of the country.

myBro became the #1
wireless broadband
for the home with
innovative plans and
bundles for customers.

Smart staged the
country’s ﬁ rst
successful video
multicast over LTE
connection, through
the evolved Multimedia
Broadcast Multicast
Services (eMBMS).
When fully developed,
eMBMS will allow
people to watch clear,
lag-free live video
on their LTE-capable
devices.

Smart led the ﬁ rst successful trials of
Advanced LTE in Davao, Metro Manila and
Boracay, achieving speeds of up to 209.66
Mbps, twice the top speed of LTE.

Smart expanded its LTE
footprint to over 1,200
sites, providing the most
extensive LTE network in
the country.

14 • 2013 PLDT ANNUAL REPORT

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5/3/14 11:56 AM

PLDT launched the
country’s ﬁ rst uniﬁ ed
communications as
a service with PLDT
Cloud UCaaS.

PLDT VITRO Data Center became
the ﬁ rst in the country to earn the
ISO 22301:2012 Business Continuity
Management System Certiﬁ cation.

Smart offers the
country’s widest 4G
coverage with over
10,000 sites – double
the size of competition
and covering 85% of the
country’s population
through its HSPA+,
WiMAX and LTE
technologies.

ePLDT afﬁ liate IP
Converge became the
country’s ﬁ rst provider of
locally-hosted enterprise
backup-as-a-service
in partnership with
Symantec.

ePLDT afﬁ liate ePDS, Inc.
(ePDS) has been ISO certiﬁ ed
since 2006. With ten years in
the business as a customer
communication management
service provider, ePDS has
become a leader in the data
printing and document
management business.

Sun Cellular expanded
its network coverage to
49 additional provinces
in the country. It also
doubled the coverage
of its broadband service
nationwide.

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LIVE DIGITAL ! • 15

Connecting lives through products and services

The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
The PLDT Group also rolled out various products and services to strengthen ties
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.
among individuals, communities and businesses.

“The strongest connections are at home”
“The strongest connections are at home”
campaign was launched in a TV commercial
showing how PLDT technologies are helping
family members stay connected.

PLDT ALPHA Enterprise launched PLDT
Cloud Contact Center as a Service (CCaaS),
as well as the PLDT Cloud Platform as a
Service (PaaS), expanding its portfolio of
Cloud services.

Dubbed as the world’s ﬁ rst online landline, the
Dubbed as the world’s ﬁ rst online landline, the
Dubbed as the world’s ﬁ rst online landline, the
launch of the all-new
launch of the all-new
launch of the all-new Telpad Dual Core paved
the way to doubling the Telpad subscriber base
the way to doubling the
the way to doubling the
to almost 100,000.
to almost 100,000.
to almost 100,000.

16 • 2013 PLDT ANNUAL REPORT

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Smart launched Spinnr, the country’s
ﬁ rst mobile online music portal. Through
partnerships with MCA Music, Inc. and
Sony Music Entertainment, the world’s two
biggest music companies, Spinnr is giving
its customers access to more than 3 million
songs, transforming every Smart mobile
phone into a virtual music store where tracks
can be streamed or downloaded using
mobile airtime credits as payment.

Smart launched GameX, its online
mobile games platform where
players can purchase credits for
mobile games.

PLDT SME Nation launched Cloud
Managed Security that aims to
address the increasingly complex
security requirements of SMEs
conducting their operations
online. Combining Symantec’s
class-leading endpoint protection
with IP Converge’s IT expertise,
the product protects enterprises
in the cyber marketplace with
minimal hassle.

PLDT SME Nation packaged
Negosyo Boost with Sun Fixed
Load Plan, the ﬁ rst landline, data
and mobile convergent group
offering for SMEs with a complete
suite of wireless solutions – voice,
broadband and mobility.

Web Presence, a cloud-based
application offered by PLDT SME
Nation, enables SMEs to easily
create, publish and manage
business websites through a Do-
It-Yourself (DIY) tool for instant
online presence.

Sun Cellular teamed up with Opera
in offering fast and best-value
mobile browsing for as low as Php15
for unlimited 24-hour browsing,
through the Opera Mini browser.

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LIVE DIGITAL ! • 17

Reaching out to serve more Filipinos
The PLDT Group provided satellite communications to the local government for its
various services as well as for disaster relief channels and even for the calling service
requirements of seafarers.

Smart forged a
partnership with world-
leading mobile satellite
services provider Thuraya
Telecommunications
Co. (Thuraya), which
provides coverage in over
140 countries, expanding
its Smart Satellite
Services footprint to
cover two-thirds of the
world.

Smart launched the
Marino PhonePal, a
prepaid calling service
that enables seafarers to
make clearer voice calls
even while at sea.

Smart and Land Bank of the
Smart and Land Bank of the
Philippines (LandBank) launched
Philippines (LandBank) launched
BayadLoad, a Bangko Sentral ng
BayadLoad,
Pilipinas (BSP)-approved mobile
Pilipinas (BSP)-approved mobile
payment service for government
payment service for government
social security, housing, provident
social security, housing, provident
and health insurance contributions.
The service allows mobile phone
users to pay using their load,
another world-ﬁ rst in the mobile
money space.

Smart and LandBank also
launched Panalo SIKAP (Sa Ipon
at Kabuhayan Aahon ka Pinoy),
a mobile money based auto-
savings and livelihood scheme that
will beneﬁ t at least four million
Pantawid Pamilyang Pilipino
Program (4Ps) recipients and more
than ﬁ ve million small farmers and
ﬁ sherfolks.

The United Nations
Development Programme
(UNDP) piloted its
emergency cash-for-
work program to beneﬁ t
survivors of Typhoon
Yolanda in partnership with
LandBank and Smart’s
mobile money service.

18 • 2013 PLDT ANNUAL REPORT

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Accessible, customizable customer experience
In support of the Group’s efforts to offer more innovative products and services,
PLDT created more ways to become more accessible to its customers, giving more
leeway for customization and providing more points of contact both online and ofﬂ ine.

In line with
PLDT’s 85th
anniversary
celebration, the
Company’s most
iconic campaigns
through the
years, as well as
the most loyal
subscribers
across the
country, were
recognized.

Sun Cellular launched the Pocket Sun
Shop, an Android application that allows
subscribers to get easy access of its
postpaid promos, product information and
registration links to Sun Cellular services.

Sun Cellular brought customization to
another level with its Sun Name Ur Number
SIM, a prepaid SIM that allows subscribers to
choose their own mobile number for free.

Smart enabled Filipinos to have control over
their budget with Flexibundles postpaid
plans, where Smart subscribers can enroll to
call, text and data bundles of their choice.

Smart stepped up its campaign to encourage Smart
subscribers to use alternative “self-care” channels to
resolve customer inquiries and concerns. These channels
include the SagotAgad text inquiry service, a SIM-based
customer service menu app called Smart Services, its online
channel My.Smart and its in-store self-help machines.

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LIVE DIGITAL ! • 19

Forging strategic partnerships
Strategic partnerships complemented the Group’s overall goal of providing innovative
products and efﬁ cient service in the service of nation-building.

PLDT
partnered
with Cisco
and Ciena
to upgrade
domestic and
international
networks.

Smart signed a
partnership with Starhub
for the ﬁ rst commercial
LTE roaming service
between the Philippines
and Singapore.

A new set of MVP Bossings
led by Zesto Chairman Amb.
Alfredo Yao were given tribute
by PLDT SME Nation as the
nationwide search continued
the tradition of recognizing
admirable Filipino entrepreneurs
across the country.

In partnership with Go Negosyo,
PLDT SME Nation presented the
second Filipino Technopreneurship
Summit, a whole-day convention
designed to provide participants
with relevant information on how
the Filipino entrepreneurial spirit,
coupled with technology, can
contribute to economic growth
and nation-building.

PLDT SME Nation tied up with
Samsung to further empower
entrepreneurs today with business-
enhancing bundles comprising of
cutting-edge broadband and Cloud
services with the latest IT equipment
and smart devices.

PLDT VITRO joined the
ACASIA global data center
alliance as its Philippine arm.

ePLDT became the ﬁ rst
Philippine member of
the Uptime Institute, a
consortium of companies
that engage in conferences
and seminars for the
enterprise data center
industry and for data
center professionals.

Sun Cellular sealed a deal with MCA Music, Inc. for free
original music content online through its new product,
Sun Broadband Entertainment Stick. A ﬁ rst-of-its-kind,
Sun Broadband Entertainment Stick is a Sun-powered
broadband modem, which comes with 20 record-
breaking songs from MCA Music, Inc.’s “Hottest Hits…
Ever” album and allows users to download 10 songs of
their choice for free every month.

20 • 2013 PLDT ANNUAL REPORT

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Global and national awards
In 2013, PLDT’s efforts to serve its customers and communities harvested a bumper
crop of recognition from Philippine and global organizations.

PLDT won Frost & Sullivan
Philippine Excellence
Awards for several
categories: Telecom
Service Provider of the
Year, Broadband Service
Provider of the Year, Data
Center Service Vendor
of the Year (VITRO Data
Center) and Hosted
Contact Center Service
Provider of the Year.

At the 2013 Corporate
Governance Asia
Awards, PLDT
Chairman Manuel V.
Pangilinan was named
Best Asian Director,
while PLDT received
the Icon on Corporate
Governance Award.

For the ﬁ fth consecutive year, PLDT
was ranked number one in the Most
Committed to a Strong Dividend
Policy and Best Investor Relations
in poll done by Hong Kong-based
publication FinanceAsia that show
recognition of how PLDT consistently
gives importance to its shareholdes. In
other categories, PLDT was ranked as
one of the top 10 in each of the Best
Corporate Governance, Best Managed
Company, and Best Corporate Social
Responsibility categories.

PLDT President and CEO Napoleon L.
Nazareno won as Asia’s 3rd Best CEO
from Institutional Investor’s All Asia
Executive Ranking.

The PLDT 2012 Annual Report with the
The PLDT 2012 Annual Report with the
theme “The Future is in Our Fiber” won the
theme “The Future is in Our Fiber” won the
Excellence Award during the 12th Philippine
Philippine
of the International Association
Quill Awards of the International Association
of Business Communicators.

T H E F U T U R E I S I N O U R F I B E R .
T H E F U T U R E I S I N O U R F I B E R .

2 0 1 2 A N N U A L R E P O R T
2 0 1 2 A N N U A L R E P O R T

LIVE DIGITAL ! •• 2121
LIVE DIGITAL ! • 21
LIVE DIGITAL !
LIVE DIGITAL !
LIVE DIGITAL !
LIVE DIGITAL !
LIVE DIGITAL !

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Smart received the Best Community Telecom
Project citation at the Telecom Asia Awards for
its leading role in helping develop the Android
app for the Project NOAH website of the
Department of Science and Technology and
PAGASA Weather Bureau.

PLDT won the Most Consistent Dividend Policy
during the 3rd Annual Southeast Asia Institutional
Investor Corporate Awards as well as the Best
Investor Relations by a Philippine Company from
the IR Magazine Awards Southeast Asia 2013.

SmartNet, a revolutionary platform
that allows Smart subscribers to
use mobile internet services safely
and affordably, was named Best
Consumer Service at the World
Communications Awards ceremony
held in London.

PLDT was the most awarded
Philippine telco provider in the
Metro Ethernet Forum (MEF).
MEF also awarded PLDT as Best
in Marketing in the Asia Paciﬁ c
Region for three consecutive
years: 2011, 2012 and 2013.

SmartNet won Best Content Service
at the Asia Communications Awards
(ACA) program for its widget called
Safe Zone, which serves as the
platform’s anti-bill shock solution.
Smart also received the Social
Contribution Award for Project
Zero, a livelihood program which
taps a community of former trash
scavengers to upcycle Smart’s
used merchandising materials into
fashionable bags and other items.

For corporate governance, PLDT won
the Bell Award from the Philippine
Stock Exchange, as well as Platinum
award during the Excellence in
Management and Corporate
Governance Awards from Asian
ﬁ nancial magazine The Asset.

22 • 2013 PLDT ANNUAL REPORT

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THE FUTURE IS IN DIGITAL!

THE DIGITAL ERA IS HERE AND NOW. WITH ITS EXTENSIVE FIBER
NETWORK POWERING ITS FIXED AND MOBILE SERVICES, PLDT
IS CONNECTING THE FARTHEST POINTS IN THE COUNTRY AND
SERVING PEOPLE FROM ALL WALKS OF LIFE.

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LIVE DIGITAL ! • 23

PLDT Group CSR Report

PLDT BELIEVES THAT DOING GOOD FOR THE COMMUNITY AND THE COUNTRY

IS INTEGRAL TO GOOD BUSINESS. ACROSS THE VARIOUS ADVOCACIES OF PLDT,

NAMELY: DISASTER PREPAREDNESS AND RESPONSE, HEALTH, EDUCATION, DIGITAL

LITERACY, LIVELIHOOD, AND ENVIRONMENTAL CONSERVATION, WE LEVERAGE ON

OUR CORE BUSINESSES AND RESOURCES TO ENABLE PEOPLE AND COMMUNITIES

TO IMPROVE THEIR LIVES AND CONTRIBUTE TO NATION-BUILDING.

PLDT Group responds
immediately to
disasters since
extending a helping
hand to those in need
is vital to its values
as a corporation that
practices a culture of
preparedness.

Responding to Disasters and
Building a Culture of Preparedness
In 2013, the country was hit by a series of major natural
and man-made disasters.

The Zamboanga siege disrupted life in the city and
displaced tens of thousands of families. A magnitude
6.7 earthquake struck Bohol and Cebu that devastated
homes, infrastructure and heritage sites. Typhoon
Yolanda (Haiyan), considered the strongest typhoon to
make landfall in recorded history, hit Central Philippines,
inﬂ icting vast destruction on cities and municipalities in
the region.

For PLDT, the priority was to restore damaged
communications facilities and provide immediate
communications support to relief organizations and to
the affected communities. “Communications as relief”
underscores the importance of providing vital lines of
communications when and where it is needed most.

PLDT’s wireless subsidiary, Smart quickly provided
frontline communications via Smart Satellite Services
the morning right after the
made
landfall. Smart and Sun Cellular also set up Libreng
Tawag Centers in many areas including Leyte, Samar,
Cebu, Palawan and Iloillo.

Typhoon Yolanda

In less than two weeks, high-speed data services
were restored in hard-hit Tacloban City, enabling
PLDT to provide United Nations agencies a 300
Mbps connection. Access to much-needed data
connectivity was also made available in evacuation
centers not only to help families reunite with loved
ones, but also to assist agencies on the ground in
coordinating relief operations.

Network coverage in Yolanda-affected cities and
municipalities was restored in record time – exactly a
month after the typhoon hit the Philippines. Under its
umbrella SafePh program for disaster preparedness

24 • 2013 PLDT ANNUAL REPORT
24 • 2013 PLDT ANNUAL REPORT

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The PLDT Group’s helpPH
The PLDT Group’s helpPH
campaign helped in the
campaign helped in the
restoration of the communities
restoration of the communities
ravaged by Typhoon Yolanda.
ravaged by Typhoon Yolanda.
International celebrities such
International celebrities such
as APL.de.Ap and Justin Bieber
as APL.de.Ap and Justin Bieber
also showed their support
also showed their support
for the rehabilitation of the
for the rehabilitation of the
aff ected municipalities.
aff ected municipalities.

and emergency response, Smart and Sun Cellular also
offered free text and call services to all subscribers in
areas worst hit by the typhoon.

In partnership with PDRF, the PLDT Group mounted
the helpPH global philanthropy campaign. The initiative
allowed for global mobile money donation through text
with mobile airtime remittance hubs that are linked to
250 mobile operators. This campaign made international
and local donations easier through mobile load.

The PLDT Group also provided relief goods to
communities in disaster affected areas. Resources
were mobilized to provide thousands of relief packs
to communities affected by the Zamboanga crisis,
Typhoon Maring, the Bohol earthquake and Typhoon
Yolanda.

PLDT, through its 2G program spearheaded by the
PLDT Managers’ Club Inc. (MCI) and supported by
the PLDT-Smart Foundation (PSF) and PDRF, actively
participated in the rehabilitation of disaster hit areas.
Just two months after Typhoon Yolanda ﬂ attened
Leyte, PLDT constructed eight classrooms in three
schools in the province.

The 2G team also conducted Emotional Intelligence
training for around 350 Leyte-based teachers to help
them cope after the traumatic event. A tribute for
some 2,000 teachers from the Yolanda-hit provinces
was also held led by actress Anne Curtis and TV5
artist Derek Ramsay.

After the Bohol earthquake, through 2G, PLDT
constructed the ﬁ rst classrooms in the affected
schools. Four classrooms were built in Cebu while eight
classrooms were constructed in four schools in Bohol,
and two classrooms in Capiz. A tribute event for 3,500
teachers was also held in Bohol.

Beyond disaster response, the PLDT Group recognizes
the importance of instilling a culture of preparedness
internally as well as with its partner communities.

Smart hosted the GSMA disaster response working
group meeting in Legazpi, Albay which focused on
earthquake preparedness and response. This was
attended by representatives from government, telco
vendors, humanitarian organizations, insurers and
operators from all over the world.

PLDT, through Smart’s brand Talk ‘N Text has also
been conducting Pamilyang Ready, Pamilyang Panalo
Disaster Preparedness Caravan. In partnership with the
Corporate Network for Disaster Response (CNDR), this
caravan promotes the culture of family preparedness. It
targeted households in Metro Manila, Cagayan de Oro,
Dumaguete and Bacolod.

The PLDT Group joined the companies under the
MPIC in a hazard and risk assessments of earthquakes
training under the Philippine Institute of Volcanology
and Seismology (PhiVolcs) to strengthen its earthquake
preparedness.

Smart, meanwhile, provided assistance for the
development of Tudlo, a customized disaster and
emergency mobile application now being used by the
Albay Public Safety and Emergency Management Ofﬁ ce
for its disaster management operations.

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LIVE DIGITAL ! • 25
LIVE DIGITAL ! • 25

Enabling Healthier Communities
PLDT medical and dental missions are part and parcel
of community services offered to the Company’s
partner communities. On top of the regular missions,
PLDT provided stress debrieﬁ ng to a thousand
earthquake survivors in Clarin, Bohol.

In partnership with Philippine Children’s Medical Center
(PCMC), Philippine National Red Cross (PNRC) and the
Department of Health (DOH)-Region 7 blood center,
the Company started the bloodletting drive Dugong
PLDT where 1,400 employees from Metro Manila and
the Visayas have already participated.

To help improve the delivery of health services, Smart
has initiated projects that were recognized by the
World Health Organization. Data collected through its
Amputee Screening via Cellular Network Technology
(ASCeNT) mobile phone application has been used by
the Physicians for Peace, a medical volunteer group,
to justify the inclusion of limb prostheses as one of the
treatments covered by PhilHealth.

Nurturing the Youth through
Education, Arts, and Sports
Education has always been the PLDT Group’s
strongest advocacy. From low-tech to high-tech, from
primary to tertiary and out-of-school, the PLDT Group
is leveraging its core technologies and resources to
help improve education and literacy.

Through the PLDT Infoteach Outreach Program, it
has been raising the digital literacy of public school
students and teachers in various parts of the country
since 2004. In partnership with the UPOU and Intel,
PLDT offers basic and advanced computer and internet
literacy courses.

The top teacher graduates are offered scholarships from
UPOU. In 2013, training sessions were done in Marikina,
Malabon, Isabela, Legazpi, Cebu, Iloilo, Bacolod, General
Santos, Davao and Zamboanga. To date, there are around
8,500 public high school students and public elementary
and high school teacher-graduates from the PLDT
Infoteach Outreach Program.

Operation Smile Mobile is a similar application
donated to Operation Smile for their patient screening
requirements during medical missions. SHINE, a cloud-
based electronic medical record and referral system
for public health, is now being developed to become
an open source system for use by various communities
through the Ateneo Java Wireless Competency Center.

The Company also implemented the eLearning
Ville Program, an initiative that turns an area of the
community into a learning hub through donated
computer units and internet access. PLDT also
supports the Philippine Digital Literacy for Women
campaign, a movement that aspires to train 10,000
working women with ICT skills.

PLDT’s 2G program provided scholarships to aspiring
teachers with a total of 754 scholars at the end of 2013.
In 2013 alone, the scholarship program produced 98 new
teachers from 15 partner schools nationwide, including 19
cum laude and three magna cum laude graduates.

2G’s Teacher’s Treasure Chest training program,
meanwhile, produced 3,439 graduates from 12 classes
nationwide in 2013. English proﬁ ciency training was also
given to 209 teachers in seven provinces, namely, Siquijor,
Ilocos Norte, Antique, Camarines Sur, Zamboanga del Sur,
Negros Oriental and Cavite.

PLDT Group values the country’s future:
the children and their teachers as it aims
to help them reach their full potential.
And with eff orts such as Oplan Smile and
2G, their future will certainly be bright.

26 • 2013 PLDT ANNUAL REPORT
26 • 2013 PLDT ANNUAL REPORT

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To further encourage more youth to take up
technology careers, Smart, through its Smart Wireless
Engineering Education Program (SWEEP), partnered
with First Paciﬁ c incubator and accelerator IdeaSpace
Foundation in developing the SWEEP Startup Program,
where past winners are given assistance in establishing
their own startups.

Through PayITFwd, Smart rewarded 20 community-
based projects with cash prizes and technology
grants through Smart Bro. By paying it forward to
these social do-gooders, Smart aimed to further help
amplify the social impact of these projects so that more
communities would beneﬁ t from their initiatives.

Building a Community by Creating
Livelihood and Conserving the Environment
To improve the ecology of the Infanta-Real Quezon
Watershed Forest Reserve, PLDT partnered with the
Department of Environment and Natural Resources
(DENR), PBSP, Watershed Management Council,
and local government units to create the TELEpuno
tree-planting project. This is a ﬁ ve-year program of
planting 80,000 seedlings on 80 hectares of the
forest reserve. There are already 64,921 planted
seedlings in the reserve.

PLDT Group employee-volunteers and PBSP
community partners have also planted more than a
million trees in the Cebu Hillylands.

Aside from improving the environment, the PLDT
TELEpuno project also gave the communities living
near the forest reserve alternative livelihood with the
support of PBSP and the municipalities of Real and
Infanta, Quezon.

PLDT also partnered with Philippine Eagle Foundation
in donating a school building in Sitio Inamong, Brgy.
Datu Ladayon, Arakan Valley in North Cotabato.
PLDT also supported DepEd’s 2013 national greening
project and establishment of vegetable gardens in
various schools.

Moreover, in partnership with Philippine Business
for Social Progress (PBSP), the Company donated
learning resource centers (LRC) to 15 public
elementary schools and to Blue Ridge School in Apalit,
Pampanga, beneﬁ tting more than 11,000 elementary
students. The center also supports DepEd’s Drop
Everything and Read program where reading
comprehension and values formation among school
children are promoted.

Meanwhile, Smart is focusing its efforts toward
promoting mEducation or mobile education solutions.
Smart and Sun Cellular are supporting the GSMA and
DepEd’s mobile education pilot in the Philippines.
Through this industry initiative, the GSMA hopes to
develop best practices in improving the learning and
education through mobile technologies.

In partnership with the DepEd’s Bureau of Alternative
Learning Systems (BALS), Smart developed a mobile
application containing all the modules and resources
used by the DepEd’s mobile teachers working in
communities all over the country.

With UPOU, Smart helped create the ﬁ rst Massive
Open Online Content (MOOC) in the Philippines
to further help make technology courses more
accessible. The MOOC is a free online course on
Android Mobile Application Development ﬁ rst offered
last July 2013 and now counts 700 enrollees from 31
different countries.

With creative agency DM9 JaymeSyfu, Smart co-
developed a program called Smart TXTBKS. This
involves converting learning materials into content
stored in discarded SIM cards. This initiative won the
prestigious Grand Prix at Cannes Mobile Lions and
other awards in 2013.

PLDT Group’s partnerships
with various government and
non-government institutions
and its dedication to create
a sustainable environment in
the country through PLDT’s
TELEpuno and Smart’s Ukit
Pinoy projects.

64,921

SEEDLINGS

PLANTED IN THE RESERVE

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LIVE DIGITAL ! • 27
LIVE DIGITAL ! • 27

For Earth Day celebrations, PLDT led in supporting
ecologicalLakad (eLakad), a fun walk in coordination
with the local government of Quezon City, DENR,
and Earth Day Network Philippines. Meanwhile, Smart
co-developed and donated the Earth Day Network
Philippines mobile application, which includes green
tips, features, events and a mobile facility that allows
Smart subscribers to donate to the Earth Day cause.

PLDT Group CSR Awards
PLDT has received awards for its employee volunteers
and community relations. The employee-volunteers
received the 2013 National Outstanding Volunteers
Award in the corporate organization category during
the Search for Outstanding Volunteers (SOV). PLDT
was also recognized at the Global CSR Awards 2013
for its community relations projects.

Smart’s Green Merchandising program was recognized
at the 2013 Asian CSR Award for the Environment
and Value Chain Management category. Under this
initiative, Smart uses eco-friendly materials for outdoor
and in-store advertising and merchandising. It has also
engaged partner-communities in its green drive.

Through the program, PLDT helped KILOS, an
all-women organization in Brgy. Gumian, Infanta,
Quezon. Sewing machines were given to the group
to support their Eco-bag project, a livelihood project
that utilizes reused and recycled bags to be sold at
affordable prices.

The program also supported KANLUNGAN, a farmers’
organization in Brgy. Magsaysay in Infanta, Quezon.
The members attended trainings in vermicompost
production at PBSP’s Center for Rural Technology
and Development.

In Iloilo City, the Gawad Kalinga Sooc community
has evolved its community livelihood project into
an SEC-registered business that is venturing into
new opportunities. The community started out with
the multi-awarded Project Zero, Smart’s community
livelihood initiative that provides funding, training
and marketing assistance for the production
of fashion forward bags made from upcycled
merchandising materials.

Smart has also replicated their project Ukit Pinoy
from General Nakar, Quezon to the Dumagat
Community at Ipo Dam and Tayabasan at Marikina
Watershed. It has also established demo farms
in Calawis, Inigan, Mascap and San Ysidro, four
communities in the Marikina Watershed.

To enable groups to donate used acid lead batteries
for proper recycling, the PLDT Group partnered with
PBSP and Motolite for the Balik Baterya Program.
Funds generated from this project were used to boost
the Company’s CSR programs in the communities.
For 2013, PLDT remains to be the biggest donor with
a total of 160 tons of batteries amounting to Php4.03
million, which was used in the construction and repair
of four classrooms and 28 LRCs that were given to 31
public schools.

The culture of corporate social responsibility is thriving in the PLDT Group.
In 2013, PLDT Group was recognized for its initiatives to ensure that the
communities it helps always get the care they deserve as reﬂ ected in its awards
for PLDT employee-volunteerism and Smart’s green merchandising programs.

28 • 2013 PLDT ANNUAL REPORT

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WORK DIGITAL!

PLDT GROUP’S COMMUNICATIONS SOLUTIONS ARE EMPOWERING
ENTERPRISES LIKE THOSE IN THE MEDICAL AND PHARMACEUTICAL
INDUSTRIES, ENABLING THEM TO ACHIEVE HIGHER LEVELS OF
PRODUCTIVITY AND EFFECTIVENESS.

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LIVE DIGITAL ! • 29

Corporate Governance Report

AS PLDT CELEBRATED ITS 85TH YEAR OF OPERATIONS AND CORPORATE
LIFE, IT REAFFIRMED ITS COMMITMENT TO THE HIGHEST STANDARDS

OF CORPORATE GOVERNANCE AS ARTICULATED IN OUR ARTICLES OF

INCORPORATION, BY-LAWS, MANUAL ON CORPORATE GOVERNANCE (CG

MANUAL), CODE OF BUSINESS CONDUCT AND ETHICS (CODE OF ETHICS),

AND PERTINENT LAWS, RULES AND REGULATIONS.

30 • 2013 PLDT ANNUAL REPORT
30 • 2013 PLDT ANNUAL REPORT

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PLDT is well aware that responsible business conduct
and a corporate culture anchored on the values of
accountability, integrity, fairness and transparency
indubitably bring about beneﬁ ts for the Company and
all its stakeholders.

PLDT adopts the corporate governance rules and
regulations of the Philippine Securities and Exchange
Commission (PSEC) and the Philippine Stock Exchange
(PSE) inasmuch as PLDT is a public and listed Philippine
corporation. PLDT also complies with the corporate
governance standards of the United States, since its
American Depositary Shares are listed and traded in
the New York Stock Exchange (NYSE)1. Finally, as an
associated company of First Paciﬁ c Co. Ltd. (First Paciﬁ c),
which is listed in the Hong Kong Stock Exchange, PLDT
also refers to the corporate governance standards of
Hong Kong for guidance and benchmarking purposes.

The voluntary adoption by PLDT of these high standards
of corporate governance reﬂ ects its acceptance of
the duty to create value for its shareholders, fulﬁ ll its
obligations to various other stakeholders, and live up
to a brand of corporate governance that constantly
challenges the Company’s leadership and employees to
observe responsible professional conduct and behavior
that strives for more than just mere compliance.

Board of Directors

Our Board of Directors is responsible for establishing
and sustaining good corporate governance practices
pursuant to its overarching duty to foster the long-
term success of the Company and secure its sustained
competitiveness.

In accordance with our CG Manual, our Board has
undertaken to: act within the scope of power and
authority of the Company and the Board as prescribed
in the Articles of Incorporation, By-Laws, and legislative
franchise of the Company and in existing laws, rules
and regulations; exercise their best care, skill, judgment
and observe utmost good faith in the conduct and
management of the business and affairs of the Company;
and act in the best interest of the Company and for the
common beneﬁ t of the Company’s stockholders and
other stakeholders.

Board Structure and Composition
Our Board is composed of 13 qualiﬁ ed and competent
members, each of whom has committed to the
independent, diligent, responsible and judicious exercise
of his/her duties.

The composition of the Board and the qualiﬁ cations and
grounds for disqualiﬁ cation of directors are provided
in our CG Manual. Diversity and complementation of
skills, expertise, experience and knowledge is desired
and encouraged in order to enrich the collective
processes and practices of our Board. Our directors,
each of whom is a business owner or leader, and/or
holds senior management positions, have extensive

experience in their respective ﬁ elds or industries,
such as telecommunications, ICT, infrastructure,
power, petroleum, banking, insurance, real property
development, agriculture, food manufacturing and fast-
food business.2 This enables them to contribute and
add value in the Board’s performance of its functions,
including the formulation of corporate vision and
strategies, assessment of enterprise risks and adequacy
and effectiveness of ﬁ nancial reporting and internal
control systems.

Our CG Manual does not impose limitations or
restrictions respecting race or gender in reference
to the qualiﬁ cations of our directors. With regard to
directorships of individual directors in other stock or
non-stock corporations, our Board has not set a “one
size ﬁ ts all” quantitative limit which may not give due
regard to differences in individual capabilities and
nature of directorships. Our Board has instead adopted
a performance-based standard that other directorships
should not compromise the capacity of a director to
serve or perform his/her duties and responsibilities to the
Company diligently and efﬁ ciently.

Our CG Manual requires that at least 20% of membership
of our Board of Directors3, and in no case less than
two members thereof must be independent directors.
Three independent directors in the persons of Mr. Pedro
E. Roxas, Mr. Alfred V. Ty and Former Chief Justice
Artemio V. Panganiban are currently serving in our
Board. All of these independent directors were selected
pursuant to the speciﬁ c independence criteria set
out under applicable laws and rules, our Articles of
Incorporation and our CG Manual. Under our CG Manual,
an independent director is, broadly, “a person who is
independent of Management and who, apart from his
fees and shareholdings, is free from any business or
other relationship with the Company which could or
reasonably be perceived to, materially interfere with
his exercise of independent judgment in carrying out
his responsibilities as a director of the Company.”4 Our
independent directors are subject to an initial term limit
of ﬁ ve years. After completion of ﬁ ve consecutive years
of service, an independent director shall no longer be
eligible for re-election as such, unless said independent
director has undergone a “cooling-off” period of two
years. Thereafter, he/she may again qualify for election
as an independent director annually, for ﬁ ve more
consecutive years, after which he/she is perpetually
barred from being elected as an independent director.
The application of this term limit is reckoned from
January 2, 2012. Moreover, an independent director may
not be elected, as such, to more than ﬁ ve listed or public
companies comprising the PLDT conglomerate (i.e. its
parent company, subsidiaries or afﬁ liates).

In 2013, there were only three directors who held
executive positions in the Company: Mr. Napoleon L.
Nazareno as President and CEO; Atty. Ray C. Espinosa
as Head of Regulatory Affairs; and Atty. Ma. Lourdes C.
Rausa-Chan as Corporate Secretary, General Counsel
and Chief Governance Ofﬁ cer.

1 PLDT’s disclosure containing a summary of differences on corporate governance practices based on requirements of Philippine law on one hand, and

US law on the other, is found in this link: http://pldt.com/docs/default-source/compliance/nyse-pldt_303a-11_2013.pdf?sfvrsn=2

2 The individual profiles of the members of our Board of Directors and Advisory Committee are found in a separate portion of this report.
3 This is substantially the same requirement in the PSEC’s Revised Code of Corporate Governance (MC No. 6 Series of 2009).
4 More specific independence criteria are enumerated in Annex A of our CG Manual.

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The position of Chairman of the Board is separate from
that of the Chief Executive Ofﬁ cer (CEO). PLDT Chairman
Manuel V. Pangilinan and PLDT President and CEO
Napoleon L. Nazareno nonetheless share the responsibility
of ensuring good corporate governance and principled
performance in their respective areas of responsibility and
inﬂ uence. These two individuals are unrelated.

Except for our executive directors, our directors do not
receive any form of compensation such as stock options,
performance incentives and bonuses from the Company.
However, all of our directors are entitled to a reasonable
per diem for their attendance in Board and Board
Committee meetings.

Board Responsibilities
The Board has a duty to keep abreast with the statutory
and regulatory requirements affecting the Company and
its operations as well as industry developments and trends.
In this regard, at the start of the service of a new director,
the Chairman, President and CEO, Chief Financial Ofﬁ cer,
Corporate Secretary and Chief Governance Ofﬁ cer give
a newly-appointed director a brieﬁ ng on the Company’s
structure, business, operating and ﬁ nancial highlights,
responsibilities of the Board and its Committees and how
each operates. The new director is also furnished with
copies of all relevant information about Company policies
applicable to the directors, including the Company’s
Articles, By-Laws, Annual Report, CG Manual, Code of
Ethics, and the charters of the Board Committees. Updates
on business and governance policies and requirements
principally from the PSEC, PSE, US Securities and Exchange
Commission (US SEC), and NYSE, and new laws applicable
or relevant to the Company and its business, particularly
on ﬁ nancial reporting and disclosures and corporate
governance, are presented in Board meetings and/or
furnished to the directors.

PLDT also conducts regular and continuing training
for our directors as well as knowledge-sharing and
updating on compliance, corporate governance and
business ethics matters. PLDT organizes Annual
Corporate Governance Enhancement Sessions which
provide an opportunity for our leadership to interact
with international experts and keep abreast with
global developments and best practices in corporate
governance and business ethics. All of the current
directors have undergone corporate governance
orientation and a majority of the Board have attended
at least one of the seven corporate governance
enhancement sessions organized since 2007. Regular
updates on corporate governance trends and
developments are also provided to our directors through
various communication initiatives. Finally, our directors
are updated on the latest technology trends and
developments that have an impact on the Company’s
strategy through technology brieﬁ ngs organized by the
Technology Strategy Committee.

To enable our directors to fully apprise themselves of
relevant and material information, our CG Manual assures
that our directors, both new and currently serving,
have access to independent professional advice, at the
Company’s expense, as well as access to Management as
they may deem necessary to carry out their duties.

Our Board meets monthly and determines the schedule
of such meetings at the beginning of the year. At least
one meeting is devoted to discussions with senior
management on the strategic plans and budget, and the
enterprise risk report prepared by senior management
through the Group Enterprise Risk Management
Department (ERMD). As necessary, our Board reviews
the Company’s Vision and Mission together with senior
management. Once every quarter, our Board reviews the
quarterly ﬁ nancial reports. Periodic reviews of the reports
of Board Committees, business operations updates from
the heads of our three business segments and network
and technology strategic plans are likewise performed.

The Board has a duty to respect, uphold and facilitate
the exercise of the rights of the stockholders. These
rights are: right to vote; pre-emptive right; right to
inspect corporate books and records including minutes
of Board meetings and stock registries, subject to certain
conditions; right to receive information which is required
to be disclosed by the Company pursuant to the
Corporation Code or Securities Regulation Code; right to
dividends; and appraisal right.

Pursuant to its aforementioned duty, the Board promotes
transparency and fairness in the conduct of the annual
and special stockholders’ meetings of the Company.
Stockholders are encouraged to personally attend such
meetings, raise questions and exercise their voting rights.
Within a reasonable period of time before the meeting,
stockholders are apprised of their right to appoint a
proxy, in case they could not personally attend such
meetings, and give their voting instructions in the proxy
form provided. In connection with this, appropriate
steps to remove excessive or unnecessary costs and
other administrative impediments to stockholders’
participation in meetings, whether in person or by
proxy, are undertaken. Relevant and timely information
are made available to the stockholders in printed form
and through the Company’s website to enable them to
make a sound judgment on all matters brought to their
attention for consideration or approval5.

The Board also ensures the timely disclosure and
appropriate ﬁ ling with the PSEC, PSE and, as
applicable, US SEC and NYSE, of material information
and/or transactions that could potentially affect the
market price of the Company’s shares and such other
information which are required to be disclosed pursuant
to relevant laws and regulations.

It is the Board that leads the Company’s corporate social
responsibility (CSR) initiatives. Through the Board, the
Company’s resources and expertise are harnessed to
respond to pressing societal issues. The PLDT Group and
PSF have continuing projects in the areas of environment
and education. Remarkable efforts have also been
undertaken in the ﬁ eld of disaster response and
rehabilitation, especially in relation to the many natural
calamities that hit the Philippines in 2013. The PLDT
Group continues to leverage on its business expertise
to develop and implement innovative projects in health,
community and livelihood development, and youth
development and sports.

5 The Company’s tabulation, registration and reporting system has been reviewed and tested by an independent third party in accordance with the

Philippine Standards on Related Services 4400 Agreed Upon Procedure issued by the Auditing Standards and Practices Council and the independent
third party checked the completeness and accuracy of encoded proxies and voting instructions as well as the completeness and accuracy of the voting
and attendance reports generated by the system at the annual meeting of stockholders

32 • 2013 PLDT ANNUAL REPORT
32 • 2013 PLDT ANNUAL REPORT
32 32

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5/3/14 11:58 AM

Our Board looks to ensure the continuity of executive
leadership as a critical factor in sustaining the
success of the PLDT Group. To this end, a succession
planning process referred to as Leadership Succession
Planning and Development has been established. This
enterprise-wide process covers senior management
positions, including the President and CEO. The Board’s
involvement in Leadership Succession Planning and
Development is performed through its Executive
Compensation Committee (ECC), which reviews and
updates the criteria for employment and promotion, as
well as any training and development plans for senior
management, keeps track of their performance and
development, and reviews their potential career paths.

Our directors take part in an annual assessment process
which reviews and evaluates the performance of the
whole Board, the Board Committees and the individuals
that comprise these bodies. The assessment also

includes an opportunity to evaluate the performance
of the CEO. This process has proven to be useful
in identifying the Board’s strengths and areas for
improvement and in eliciting individual directors’
feedback and views on the Company’s strategies,
performance and future direction.

Our Board held 12 meetings in 2013. The Chairman of the
Board, the President and CEO, and six other directors
attended all Board meetings. At least two independent
directors were present in all the meetings. In each meeting,
a quorum of at least two-thirds of the Board members
was present. The respective Chairmen of the Audit,
Executive Compensation, and Governance and Nomination
Committees were present in the annual stockholders’
meeting held on June 14, 2013. Except for two directors,
all of the other directors attended more than 75% of the
meetings. The total amount of per diem provided for the
Board of Directors in 2013 was Php25.6 million6.

Name of Director

Manuel V. Pangilinan

Napoleon L. Nazareno

Helen Y. Dee

Ray C. Espinosa

James L. Go

Setsuya Kimura

Hideaki Ozaki

Artemio V. Panganiban**

Ma. Lourdes C. Rausa-Chan

Pedro E. Roxas*

Juan B. Santos

Tony Tan Caktiong

Alfred V. Ty*

Jan
29

Mar
5

Apr
23

May
7

Jun
14

Jun
14***

Jun
14****

Aug
7

Aug
27

Sep
24

Nov
5

Dec
3

Totals

Percentage

•

12/12

8/12

12/12

8/12

•

10/10

12/12

11/12

12/12

10/12

100%

67%

100%

67%

100%

92%

100%

83%

Independent director

*
** Elected as independent director on April 23, 2013. Former Chief Justice Panganiban previously served on the PLDT Advisory

Committee as an independent member.

*** Annual Meeting of Stockholders
**** Organizational Meeting of the Board

Board Committees

Advisory Committee
Our Board is ably assisted by an Advisory Committee.
The diversity of the expertise, knowledge and
experience of these advisors serves to complement
that of the Board. The Advisory Committee provides

guidance and suggestions, as necessary, on matters
deliberated upon during Board meetings. The total
per diem given to the members of the Advisory
Committee in 2013 was Php12.6 million.

Name of Director

Artemio V. Panganiban*

Oscar S. Reyes

Roberto R. Romulo

Benny S. Santoso

Washington Z. SyCip

Orlando B. Vea

Jose Ramon T. Villarin**

Christopher H. Young

Jan
29

Mar
5

Apr
23

May
7

Jun
14

Jun
14***

Jun
14****

Aug
7

Aug
27

Sep
24

Nov
5

Dec
3

Totals

Percentage

•

3/3

12/12

11/12

12/12

7/12

12/12

6/8

12/12

100%

92%

100%

58%

100%

75%

100%

Elected as an independent director on April 23, 2013

*
** Appointed as an independent member of the Advisory Committee effective April 23, 2013. Resigned effective September 30, 2013.
*** Annual Meeting of Stockholders
**** Organizational Meeting of the Board

6 The per diem for each member of the Board of Directors or Advisory Committee for each meeting is P200,000.

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The AC has clear oversight responsibilities and powers
over the following areas:
• external auditors;
• internal auditors;
• ﬁ nancial reporting principles and policies and system

of internal control;
• enterprise risks; and
• legal and regulatory compliance.

The AC is composed of three independent directors as
voting members, and four advisors. Each member is
ﬁ nancially literate and one of the advisors is a certiﬁ ed
public accountant with ﬁ nancial management expertise.
The charter of the AC may be viewed and downloaded
from the PLDT website through the following link:

http://www.pldt.com.ph/about/management/
Documents/Audit%20Committee%20Charter.pdf

The AC covered the following matters in 2013 with
regard to PLDT’s external auditor, Sycip, Gorres,
Velayo & Co. (SGV & Co.) and their audit and non-
audit services. The AC discussed the external auditor’s
report on the results of the integrated audit of
PLDT’s and its subsidiaries’ 2012 ﬁ nancial statements
prepared in accordance with the Philippine Financial
Reporting Standards (PFRS) and International Financial
Reporting Standards (IFRS) and on the internal
controls over ﬁ nancial reporting (ICFR), as well as
the results of internal and external quality reviews
required on SGV & Co. Also passed upon were SGV
& Co.’s required communications to the AC including
their independence from PLDT, within the meaning of
the Securities Act of the PSEC and US SEC. The AC
performed a review of SGV & Co.’s integrated plan for
the audit of PLDT’s and its subsidiaries’ 2013 ﬁ nancial
statements and review of ICFR, as well as signiﬁ cant
accounting and regulatory developments. The AC
also evaluated SGV & Co.’s performance for 2012 and
resolved to re-appoint SGV & Co. as PLDT’s external
auditors for the year 2013.

The AC also reviewed and approved the following non-
audit engagements of SGV & Co.:
• International Standard on Assurance Engagements

No. 3402 “Assurance Reports on Controls at a Service
Organization”, Type B Service Audit of ePLDT’s Vitro
Data Center;

• Review of the tabulation and registration modules
relating to PLDT’s stockholders meeting system;

• Business Continuity Management System

Consultancy Services for PLDT, Smart and Sun;
• Interim Audit of Digitel Information Technology

Services, Inc.‘s ﬁ nancial statements as at and for the
six months ended June 30, 2013;

• Accounting and Tax Advisory, and Business Model
Review to the Ayala-First Paciﬁ c consortium (of
which Smart is a member) in connection with
Automated Fare Collection System;

• In connection with PLDT’s planned retail bond

offering circular:
• Review of PLDT’s reissued consolidated ﬁ nancial
statements as at December 31, 2012, 2011 and
January 1, 2011 and for each of the three years
ended December 31, 2012, after effecting the
new accounting standards that became effective

PLDT’s other Board Committees, namely: the Audit
Committee (AC), the Governance and Nomination
Committee (GNC), the Executive Compensation
Committee (ECC), and the Technology Strategy
Committee (TSC), have continued to function pursuant
to their mandates in their respective charters. These
committees provide valuable assistance in the
performance of the Board’s responsibilities and aid
in ensuring compliance with the principles of good
corporate governance.

These committees have been granted by their
respective charters with the appropriate and
necessary resources and authority to discharge their
responsibilities. This includes the authority to engage
and obtain advice from external counsels, experts or
consultants as they may deem appropriate, without
need for Board approval. The Chairman of any of the
committees or any of the committee members or
advisors may meet separately with Management to
discuss any matter that the committee or its members
believe should be discussed privately. Each committee
may also request any ofﬁ cer, executive or employee of
the Company, the Company’s external counsel or third
party consultants to attend a meeting of the committee
or to meet with any member, advisor or consultant of
the said committee.

Audit Committee
The AC provides support to the Board in discharging
its oversight responsibilities for the integrity of the
Company’s accounting and ﬁ nancial reporting principles
and policies, and system of internal controls, as well
as the integrity of the Company’s ﬁ nancial statements
and the independent audit thereof; compliance with
legal and regulatory requirements; assessment and
management of enterprise risks including credit,
market, liquidity, operational and legal risks; and audit
process, and the performance of the Company’s internal
audit organization and external auditor (including the
external auditor’s qualiﬁ cations and independence).

34 • 2013 PLDT ANNUAL REPORT
34 • 2013 PLDT ANNUAL REPORT
34 34

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5/3/14 11:58 AM

January 1, 2013, exclusively for the purpose of
inclusion in the said offering circular;

• Review of PLDT’s consolidated ﬁ nancial statements
as at September 30, 2013 and for the nine months
ended September 30, 2013 and 2012, which will
also form part of the said offering circular;

• Issuance of comfort letters; and

• The engagement of Ernst & Young (E&Y)7 India by
SPi India for the issuance of certain certiﬁ cations
for Laserwords Private Ltd., and the engagement of
E&Y Singapore by Smart to perform Audit and Tax
services for Smart’s Singapore-based subsidiaries.

Relative to the internal auditors, the AC reviewed,
noted or approved the Internal Audit and Fraud Risk
Management Group’s (IAFRMG) performance report
for the year 2012, PLDT’s Internal Audit Plan for 2013
(original and updated) and its alignment with business
risks, IAFRMG Head’s statement of compliance with the
International Standards for the Professional Practice
of Internal Auditing, and required conﬁ rmation of the
organizational independence of PLDT’s internal audit
organization, the retention of the existing Internal Audit
Charter until the next review in 2014, and Smart and
Digitel’s Updated Internal Audit Plan for 2013.

In addition, the AC discussed the Internal Audit’s
report on PLDT Group’s Sarbanes-Oxley Act Section
404 (SOX 404) Compliance – Management’s Overall
Assessment and Conclusions as at December 31, 2012,
and periodic status reports regarding the PLDT Group’s
SOX 404 readiness and compliance as at year-end 2012
and as at year-end 2013, the major internal audit and
fraud risk management activities and accomplishments,
including the Internal Audit organizational updates,
and the highlights of the Committee of Sponsoring
Organizations of the Treadway Commission’s 2013
Updated Internal Control Integrated Framework.

Relative to ﬁ nancial reporting and controls, the AC,
together with PLDT Finance ofﬁ cers and SGV & Co.,
reviewed the PLDT’s audited ﬁ nancial statements for
2012 (prepared in accordance with PFRS and IFRS)
as well as the ﬁ nal results and report of SGV & Co. on
its integrated audit of 2012 PFRS and IFRS ﬁ nancial
statements and ICFR, the PLDT Group’s 2012 Annual
Report on Form 17-A (for PSEC ﬁ ling) and on Form
20-F (for US SEC ﬁ ling), and also PLDT’s unaudited
consolidated ﬁ nancial results and reports for the three

months ended March 31, 2013, the six months ended
June 30, 2013, and the nine months ended September
30, 2013.

With respect to governance, general internal controls
and risk management, the AC reviewed and approved
the 2012 PLDT AC Report for inclusion in the Annual
Report; conducted the self-evaluation of the AC’s
performance for the year 2012; discussed with the
Corporate Secretary, Chief Legal Counsel and Chief
Governance Ofﬁ cer the status of Company’s compliance
with regulations and applicable laws, updates on
signiﬁ cant legal matters, and the periodic status
reports on whistleblowing complaints and complaints
on retaliation received by the Corporate Governance
Ofﬁ ce. It also reviewed and noted the Enterprise Risk
Management (ERM) Ofﬁ cer’s update reports on the
PLDT Group’s enterprise risk management activities
and discussed with the ERM Ofﬁ cer the PLDT Group’s
Top Risks for 2013 and E&Y’s global risks that are
relevant to the telecommunications industry, and the
ERM assessment results for the Consumer (Individual)
Wireless Business.

The AC also discussed with PLDT business and
operational unit heads concerned the following:
• Information Systems (IS)/Information Technology (IT)
measures for mitigating business risks pertaining to
data security, data privacy, and resilience of systems;

• Updates on the occupancy of the Company’s ofﬁ ce

buildings and related workplace solutions;
• Updates on PLDT’s customer experience survey

results and related activities;

• Updates on Smart’s customer experience self-

care program, assessments and transformation,
including initiatives and solutions covering the using
and paying stages for data services, and network
performance optimization in speciﬁ c areas;

• Updates regarding network quality at PLDT and

Smart; and

• Updates on the initiatives regarding quality of
service specially in the areas of customer care
and operations, and rehabilitation of outside plant
equipment.

The AC had eight meetings for the year 2013 and a total
of Php3.75 million was paid as per diem8 to its members
(all of whom are independent directors) and advisors
who attended the meetings.

Members

Pedro E. Roxas *

Artemio V. Panganiban **

Alfred V. Ty

Advisors

Corazon S. Dela Paz-Bernardo

Roberto R. Romulo

James L. Go

Setsuya Kimura

Jan.
28

Mar.
4

Mar.
25

May
6

Aug.
6

Sept.
24

Nov.
5

Dec.
2

Total

•

8/8

4/4

7/8

8/8

7/8

* Acting AC Chairman starting September 25, 2012, Mr. Roxas was formally appointed as AC Chairman on May 7, 2013.
** Appointed as AC member on May 7, 2013.

7 SGV & Co. is a member practice of E&Y.
8 Php 75,000 per member.

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Governance and Nomination Committee
In the performance of its governance function, the
GNC assists the Board in developing and implementing
the Board’s performance evaluation process; reviews
and assesses the adequacy and effectiveness of the
Company’s corporate governance structures, principles
and policies; establishes the appropriate evaluation
system for monitoring and assessing compliance
with the corporate governance policies; oversees the
continuing corporate governance communication and
education programs; and considers, resolves and/
or submits its recommendations to the Board on
corporate governance issues.

With respect to its nomination function, the GNC
is responsible for the following nomination-related
matters: pre-screening nominees for directors and
qualiﬁ cations of independent directors; preparing
a recommendation to the Board on the ﬁ nal list of
qualiﬁ ed nominee directors and independent directors;
recommending qualiﬁ ed directors or independent
directors in case of a vacancy; recommending qualiﬁ ed
persons as members of Board Committees; and
evaluating qualiﬁ cations of persons nominated for
Board-appointed positions.

The GNC is composed of ﬁ ve voting members, three of
whom are independent directors and the other two are
non-executive directors. The GNC also has two non-
voting members: the Human Resources Group Head
and the Chief Governance Ofﬁ cer of the Company. The
charter of the GNC may be accessed and downloaded
from the PLDT website through the following link:

http://www.pldt.com.ph/about/management/
Documents/Governance%20and%20Nomination%20
Committee%20Charter.pdf

In 2013, the GNC reviewed and assessed PLDT’s
Expanded Whistleblowing Policy, the Policy on Gifts,
Entertainment and Sponsored Travel and the Supplier/
Contractor Relations Policy. It determined that the said
policies did not require any amendment or revision
and approved certain recommendations to strengthen
the implementation of these policies. The GNC also
reviewed, noted or approved the following:

• Results of the Test Run of the PLDT Governance and
Ethics Survey and the need to further enhance its
implementation;

• Implementation of the Periodic Conﬂ ict of Interest

(COI) Disclosure System; and COI Disclosures of key
personnel;

• Cases reported through the Expanded

Whistleblowing (EWB) system (which includes cases
received and handled by PLDT subsidiaries);
• Annual Corporate Governance Report and PSE

Corporate Governance Disclosure Report for year
2012;

• Updates on certain related party transactions; and
• Updates on various proposed corporate governance
reports/scorecards/awards, such as the PSEC Annual
Corporate Governance Report, ASEAN Corporate
Governance Scorecard and PSE Bell Awards.

The GNC also assisted the Board in implementing
the Board Assessment for 2012 performance, which
included the performance evaluation of the Board
Committees and individual directors.

In the performance of its nomination function, the
GNC screened nominees for independent directors to
ﬁ ll the single vacancy in the Board of Directors, pre-
screened candidates nominated to become directors,
pre-screened the qualiﬁ cations of candidates for
independent directors, and submitted to the Board the
ﬁ nal list of qualiﬁ ed director and independent director
nominees for election at the Annual Stockholders’
Meeting held on June 14, 2013. It also reviewed and
conﬁ rmed the Human Resource Group’s evaluation of
the qualiﬁ cations of ofﬁ cers and recommended their re-
appointment as such at the Organizational Meeting of
the Board of Directors held on June 14, 2013.

Finally, the GNC submitted the following reports to the
Board of Directors: (a) Consolidated Report on the 2012
Board and Board Committees Assessment; (b) GNC
Annual Report of Activities for 2012; and (c) GNC Self-
Assessment for 2012 Performance.

The GNC held four meetings in 2013 and a total of
Php1.95 million was paid as per diem to its members
who attended the meetings9.

• Content for the corporate governance training

Members

Manuel V. Pangilinan

Artemio V. Panganiban**

Pedro E. Roxas*

Alfred V. Ty*

Setsuya Kimura

Non-voting members

Menardo G. Jimenez, Jr.

Ma. Lourdes C. Rausa-Chan

Mar
1

Apr
4

Aug
1

Oct
22

Total

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Independent director

*
** Former Chief Justice Artemio Panganiban was elected as independent director

effective April 23, 2013 and GNC member on May 7, 2013.

and continuing education program, including the
Directors’ and Ofﬁ cers’ Corporate Governance
Enhancement Sessions conducted through the
selected speakers: Mr. Winthrop M. Swenson (for
directors and Advisory Committee members); and
Ms. Gretchen A. Winter (for ofﬁ cers and middle
management);

• Theme for PLDT’s corporate governance

communication materials, as well as the design
and theme for the second edition of the Corporate
Governance Handbook and Corporate Governance
Primer, and items intended as corporate governance
incentive items and their respective designs;

9 Php 75,000 per meeting attended.

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Executive Compensation Committee
The ECC’s primary purposes or functions are to provide
guidance to and assist the Board in developing a
compensation philosophy or policy consistent with
the culture, strategy and control environment of the
Company; oversee the development and administration
of the Company’s executive compensation programs,
including long-term incentive plans and equity based
plans for ofﬁ cers and executives and assist the Board in
the performance evaluation of and succession planning
for ofﬁ cers, including the CEO, and in overseeing the
development and implementation of professional
development programs for ofﬁ cers.

The ECC is composed of ﬁ ve voting members, three
of whom are independent directors, while the other
two are non-executive directors. The ECC also has one
non-voting member, who is the head of the Human
Resources Group of the Company. The charter of the
ECC may be viewed and downloaded from the PLDT
website through the following link:

http://www.pldt.com.ph/about/management/
Documents/Executive%20Compensation%20
Committee%20Charter.pdf

10 Php 75,000 for each meeting attended.

In 2013, the ECC discussed and recommended to the
Board the approval of the new 2012-2014 Long-Term
Incentive Program (LTIP) targets. The LTIP is a merit-
based performance incentive mechanism designed
to align the interests of ofﬁ cers and executives with
those of the shareholders. The ECC also discussed
and approved the pay-out of the 2012 Variable Pay for
ofﬁ cers and executives, the 2013 Variable Pay targets
and the corresponding Variable Pay pay-out level, the
2013 merit increase for ofﬁ cers and executives, and the
new salary structure for ofﬁ cers and executives which
starts in 2014.

The ECC held three meetings in 2013 and a total of
Php1.125 million was paid as per diem to its members
who attended the said meetings. 10

Members

Manuel V. Pangilinan

Artemio V. Panganiban**

Pedro E. Roxas*

Alfred V. Ty*

Setsuya Kimura

Menardo G. Jimenez, Jr. (non-voting member)

Jan.
28

Mar.
4

Sept.
27

Total

•

3/3

1/1

3/3

2/3

3/3

* Independent director
** Former Chief Justice Artemio Panganiban was elected as independent director

effective April 23, 2013 and ECC member on May 7, 2013.

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Technology Strategy Committee
The TSC’s primary purposes are to assist and enable
the Board to review and approve the strategic vision
for the role of technology in the Company’s overall
business strategy, including the technology strategy
and roadmap of the Company; fulﬁ ll its oversight
responsibilities for the Company’s effective execution
of its technology-related strategies; and ensure the
optimized use and contribution of technology to the
Company’s business and strategic objectives and
growth targets.

The TSC is composed of seven members. Under
the charter of the TSC, at least one member of the
TSC must have at least a general knowledge or
understanding of the technologies relevant to the
Company’s line of business. A copy of the charter of the
TSC may be viewed and downloaded from the PLDT
website through the following link:

http://www.pldt.com.ph/about/management/
Documents/Technology%20Strategy%20
Committee%20Charter.pdf

In 2013, the TSC discussed the overview of Technology
Group Strategy, Multimedia Service Delivery Platforms
and PLDT Multimedia Monetization Programs,
Technology Service Delivery Infrastructure Roadmap
and Updates, Current Network Quality Situation and
Programs, improving capabilities to deliver more services
in data, multi-media and next generation solutions,
expanding PLDT’s service footprint, and enhancing
customer experience. Also presented and discussed
were technology and operational plans and strategies
to fortify the network to ensure availability and faster
restoration of service in case of service interruptions
brought about by the effects of natural calamities in the
light of the lessons learned from the recent Typhoon
Yolanda (Haiyan).

The TSC had two meetings in 2013 and a total of
Php0.975 million was given as per diem to its members
who attended the meetings. 11

Members

Sept.
20

Nov.
27

Totals

Manuel V. Pangilinan

Napoleon L. Nazareno

Ray C. Espinosa

Setsuya Kimura

Oscar S. Reyes

James L. Go

Orlando B. Vea

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Executive implementation

Our Board exercises oversight on Management in
accordance with the standards set forth in our CG
Manual. The roles of Management and other ofﬁ ces
and posts involved in ensuring implementation of the
corporate governance policies and requirements are
discussed below.

President and Chief Executive Offi cer
The President and CEO provides leadership for
Management in developing and implementing business
strategies, plans and budgets. He ensures that the
business and affairs of the Company are managed in
a sound and prudent manner and that operational,
ﬁ nancial and internal controls are adequate and
effective to ensure reliability and integrity of ﬁ nancial
and operational information, effectiveness and
efﬁ ciency of operations, safeguarding of assets and
compliance with laws, rules, regulations and contracts.
The President and CEO, with the assistance of the rest
of PLDT’s Management, also has the responsibility to
provide the Board with a balanced, understandable
and accurate account of the Company’s performance,
ﬁ nancial condition, results of operations, and prospects,
on a regular basis.

Corporate Secretary
The Corporate Secretary is responsible for the
safekeeping and preservation of the integrity of the
minutes of the meetings of the Board and Board
Committees, as well as other ofﬁ cial records of the
Company. The Corporate Secretary is expected to work
fairly and objectively with the Board, Management
and stockholders and shall inform the directors of the
schedule and agenda of Board meetings and ensure
that Management provides the Board with complete
and accurate information that will enable the directors
to arrive at intelligent or informed decisions on matters
that require their approval. The Corporate Secretary
is expected to attend all Board meetings, except
for exceptional and justiﬁ able causes that prevent
attendance, and must ensure that all Board procedures,
rules and regulations are strictly followed by the
directors. The current Corporate Secretary is also the
Chief Governance Ofﬁ cer of the Company.

Internal Audit Organization
Our internal audit organization determines whether our
structure of risk management, control and governance
processes, as designed and represented by Management,
are adequate and functioning to ensure that:

1. Risks are appropriately identiﬁ ed, managed, and/or

reported;

2. Signiﬁ cant ﬁ nancial, managerial, and operating
information are accurate, reliable and timely;

3. Employees’ actions are in compliance with policies,
standards, procedures, and applicable laws and
regulations;

4. Resources are acquired economically, used efﬁ ciently

and adequately protected;

11 Php 75,000 for each meeting attended.

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5. Programs, plans and objectives are achieved;
6. Quality and continuous improvement are fostered in

our control processes; and

7. Signiﬁ cant legislative or regulatory issues impacting

us are recognized and addressed appropriately.

the ISO 31000 standard on risk management. The
implementation of the ERM process ensures that
high-priority risks are well understood and effectively
managed across all functions and units within the
PLDT Group.

Chief Governance Offi cer
Our corporate governance compliance system
established in the CG Manual includes the designation
by the Board of a Chief Governance Ofﬁ cer who
reports to the Chairman of the Board and the GNC. The
primary responsibilities of the Chief Governance Ofﬁ cer
include monitoring compliance with the provisions and
requirements of corporate governance laws, rules and
regulations, reporting violations and recommending
the imposition of disciplinary actions, and adopting
measures to prevent the repetition of such violations.

In addition, the Chief Governance Ofﬁ cer assists
the Board and the GNC in the performance of their
governance functions, including their duties to oversee
the formulation or review and implementation of the
corporate governance structure and policies of the
Company, the establishment of an evaluation system
to verify and measure compliance with the CG Manual
in relation to related laws, rules and regulations, and
to oversee the conduct of a self-assessment of the
performance and effectiveness of the Board, the Board
Committees and individual Board members in carrying
out their functions.

Corporate Governance Offi ce
The CGO is responsible for the continuing
development, drafting, issuance and review of
appropriate corporate governance policies, attending
to reports received through the whistleblowing facility,
addressing queries and providing opinions or guidance
on corporate governance matters to operating units,
initiating enforcement actions to ensure compliance
with corporate governance policies, and maintaining a
corporate governance education and communication
program that sees to the development of the
proper knowledge, skills, attitudes and habits that
would promote voluntary observance of corporate
governance policies.

The PLDT Manual on Corporate Governance (CG
Manual) is the basis for the establishment of, and
provides operational guidance to all PLDT corporate
governance structures as shown in the chart.

To provide for the independence of the internal audit
organization, its personnel report to the head of the
internal audit organization, being the Chief Audit Ofﬁ cer/
Internal Audit Head, who reports functionally to the AC
and administratively to the President and CEO. The Chief
Audit Ofﬁ cer is accountable to Management and the AC
in the discharge of his duties and is required to:

1. Provide annually an assessment on the adequacy

and effectiveness of our processes for controlling our
activities and managing our risks;

2. Report signiﬁ cant issues related to the processes
of controlling our activities, including potential
improvements to those processes, and provide
information concerning such issues; and

3. Periodically provide information on the status

and results of the annual internal audit plan and
the sufﬁ ciency of our internal audit organization’s
resources.

The Company’s internal audit organization has a charter
approved by the AC that complies with the International
Standards for the Professional Practice of Internal
Auditing of The Institute of Internal Auditors, in the
discharge of its scope of work and responsibilities.

External Audit
The Company’s external auditor is appointed by the
AC which reviews its qualiﬁ cations, performance and
independence. To ensure objectivity in the performance
of its duties, the external auditor is subject to the
rules on rotation and change, every ﬁ ve years; general
prohibitions on hiring of staff of the external auditor;
and full and appropriate disclosure and prior approval
by the AC of all audit and non-audit services and
related fees for such services. Approval of non-audit
work by the external auditor is principally tested against
the standard of whether such work will conﬂ ict with its
role as an independent auditor or would compromise its
objectivity or independence as such.

Enterprise Risk Management
Also working in coordination with our internal audit
organization and AC is the PLDT Group Enterprise
Risk Management (ERM) Department (ERMD). The
complex and dynamic business environment that the
PLDT Group operates in gives rise to a variety of risks.
The ERMD is in charge of managing an integrated risk
management program with the goal of identifying,
analysing and managing the PLDT Group’s risks to an
acceptable level, so as to enhance opportunities, reduce
threats, and thus, sustain competitive advantage.
The ERM process used by the ERMD is based on

10 Php 75,000 for each meeting attended.

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Code of Business Conduct and
Ethics (Code of Ethics)

Our CG Manual establishes the framework and structure
of our corporate governance program. It is our Code
of Ethics, however, that animates our professional
conduct principally through the call to live out and
observe the values of accountability, integrity, fairness
and transparency to promote and produce a culture of
good corporate governance. It provides standards that
govern and guide all business relationships of PLDT, its
directors, ofﬁ cers and employees.

Some of the key standards in the PLDT Code of Ethics
are stated below:

• Compliance with applicable laws, rules and

regulations;

• Ethical handling of conﬂ icts of interest, corporate

opportunities and conﬁ dential information;
• Protection and proper use of Company assets;
• Fair dealing with employees, customers, service

providers, suppliers and competitors;

• Compliance with reporting and disclosure obligations

to the relevant regulators and to investors;

• Compliance with disclosure and ﬁ nancial reporting

controls and procedures;

• Assessment and management of risks involved in

business endeavors; and

• Adoption of international best practices of good

corporate governance in the conduct of the
Company’s business.

To access the Code of Ethics, please click on the link below.
http://pldt.com/docs/default-source/policies/pldt-code-
of-business-conduct-and-ethics.pdf?sfvrsn=4

The Company, through our Board, has adopted
enabling policies which provide speciﬁ c guidelines that
complement the Code of Ethics.

Conﬂ ict of Interest (COI) Policy
This policy aims to ensure that work-related actions of
PLDT’s directors, employees and consultants are based
on sound business principles and judgment devoid of
bias or partiality. It enjoins all of them to be aware of
the possibility of such bias and partiality in dealings
with various entities or individuals in the course
of or in relation to their work. The policy likewise
mandates that if they ﬁ nd themselves in a possible
conﬂ ict of interest situation, they should promptly
disclose the matter to the relevant authorities. If
warranted, the person concerned should also obtain
appropriate approvals and inhibit himself from any
action, transaction or decision involving an existing or
potential conﬂ ict of interest. 12

Policy on Gifts, Entertainment and
Sponsored Travel
This policy provides safeguards so that the custom of
giving gifts is handled in accordance with the values of
integrity, accountability, fairness and transparency. It
aims to prevent the occurrence of situations or actions
that could signiﬁ cantly affect objective, independent or
effective performance by directors, ofﬁ cers, employees

and consultants of their duties and responsibilities to
the Company. Speciﬁ cally, it prohibits the solicitation
of gifts, sponsored travel, and entertainment from third
parties. Receipt and acceptance of gifts voluntarily
given by such third parties are handled according to
this policy. 13

Supplier/Contractor Relations Policy
This policy seeks to ensure that the Company
upholds the highest professional standards in
business practices and ethics in its dealings with
suppliers and contractors in the procurement of
goods and services. The policy also seeks to maintain
PLDT’s reputation for equal opportunity and honest
treatment of suppliers in all business transactions. It
establishes clear rules for arm’s length transactions
and fair treatment of prospective and existing
suppliers with the objective of always obtaining the
best value for the Company. The policy speciﬁ cally
adopts the processes of vendor accreditation and
competitive bidding as the general rule to ensure that
contracts are awarded only to qualiﬁ ed and duly-
accredited suppliers and vendors who offer the best
value for money for PLDT’s requirements. 14

Expanded Whistleblowing (EWB) Policy
This policy provides guidelines on handling employee
disclosure or complaints for violation of the CG
Manual, Code of Ethics, COI Policy, Policy on Gifts,
Entertainment and Sponsored Travel, and Supplier/
Contractor Relations Policy as well as questionable
accounting and auditing matters and violations of
the Personnel Manual. The EWB Policy protects
whistleblowers from retaliation and ensures
conﬁ dentiality and fairness in the handling of a
disclosure or complaint. 15

All these policies, including the Code of Ethics, are
reviewed at least once every two years to ensure
that they are appropriate for PLDT, keep pace with
comparable and applicable global best practices,
and are compliant with the requirements of the PSEC
and US SEC, NYSE and Hong Kong Stock Exchange
corporate governance rules, as may be appropriate
and applicable.

Detailed implementing guidelines are likewise issued
for the said policies to ensure their wide observance.
Among the recent developments in this regard is
PLDT’s release and implementation of its Guidelines on
the Proper Handling of Related Party Transactions (RPT
Guidelines). The RPT Guidelines provides the process
of review, approval and disclosure of the Company’s
Related Party Transactions (RPT), which are reviewed
and approved by appropriate authorities designated.
The review’s principal focus is on whether an RPT is
on arm’s length terms and the transaction is in the
best interest of PLDT and its stakeholders, as a whole,
considering all relevant circumstances. Material RPTs are
also reviewed by the AC, which is composed entirely
of independent directors, and approved by the Board.
The RPT Guidelines provides the Board of Directors
with an option to require submission of approved RPTs
to stockholders for their further consideration and
ratiﬁ cation. The Head of Financial

12 Approved on October 24, 2005.
13 Approved on January 31, 2006.
14 Approved on January 31, 2006.
15 The complete name of this policy is Policy on Employee Disclosure on Violations of the Corporate Governance Rules, Questionable Accounting or

Auditing Matters, and Offenses covered by PLDT’s Table of Penalties. It was approved on May 9, 2006.

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Reporting and Controllership Sector, in coordination
with the Company’s Disclosure Committee, shall be
responsible for the disclosure of RPTs in the relevant
ﬁ nancial reports of the Company as required under
Philippine Accounting Standard 24 (Revised) “Related
Party Disclosures” and other applicable disclosure
requirements.

Finally, PLDT’s subsidiaries and their respective
subsidiaries have also adopted corporate governance
rules and policies similar in substance and form to
PLDT’s CG Rules and suited to their particular business
environments and contexts, as well as appointed
their respective corporate governance or compliance
ofﬁ cers.

Procedures and Practices

PLDT’s corporate governance initiatives comprise three
stages: compliance, competence and eventually, culture.
At the pinnacle of the process is the establishment of
a culture of good governance that should permeate
the entire organization. To get to this point requires,
however, that the Company and its personnel
understand the importance of ensuring full compliance
with the law, rules and regulations and its own internal
rules. Between culture and compliance, however,
is a gap that can only be ﬁ lled by the Company’s
investments in the right competencies for its personnel.
Much of PLDT’s efforts at bridging the gap between
compliance and culture are manifested in PLDT’s
procedures and practices.

These corporate governance procedures and
practices are executed through three broad task
areas of engineering, education and enforcement, by
the Corporate Governance Ofﬁ ce led by the Chief
Governance Ofﬁ cer, and with the guidance of the GNC.

Periodic Review of CG Rules
In 2013, the Policy on Gifts, Entertainment and
Sponsored Travel, EWB Policy and Supplier/Contractor
Relations Policy were reviewed and it was determined
that said policies do not require any amendment or
revision. The GNC approved certain recommendations
to further strengthen their implementation and
oversight through more efﬁ cient monitoring and
reporting, practical guidelines on speciﬁ c areas that
need improvement and appropriate measures to further
build employees’ conﬁ dence in the whistleblowing
system and strengthen the Company’s procurement
processes.

Pledge to Uphold Good
Corporate Governance
In 2013, employees were required to signify adherence
to the new Pledge to Uphold Good Corporate
Governance (CG Pledge) which was reviewed and
revised with the guidance of the GNC. The CG Pledge
is an undertaking by individual employees to observe
the highest standards of ethics in their daily work.
Each employee was given the option of reafﬁ rming
their adherence to the CG Pledge online or by printing
and re-signing the CG Pledge. The activity was
integrated into the other events celebrating PLDT’s
85th Anniversary.

Conﬂ ict of Interest (COI) Disclosures
In 2013, PLDT re-launched the periodic COI Disclosure
System, which now requires all ofﬁ cers, executives
and employees to bi–annually either expressly afﬁ rm
that they had no updates to their conﬂ ict of interest
disclosures or in the event that they have any such
potential or actual conﬂ ict, to update and submit their
COI Disclosures to their Group Heads.

Whistleblowing Complaints
PLDT maintains a Whistleblowing Hotline and other
reporting facilities, such as a dedicated electronic
mailbox, post ofﬁ ce box and facsimile transmission
system. All employees and stakeholders who come
forward in good faith to report violations or any act that
may be considered as contrary to the Company’s values
may submit a complaint or disclosure on such violations
to the CGO. Anonymous complaints are allowed and
duly processed.

Upon receipt of a complaint or disclosure by the CGO,
a preliminary evaluation is conducted to determine
the veracity and plausibility of the allegations
contained therein, as well as determine the appropriate
investigating unit to which the case shall be assigned
for further action. The CGO monitors the developments
in said cases and ensures appropriate reporting to the
AC, the GNC, or any other relevant committee, body or
authority on the results of the investigations and the
prompt referral of ﬁ ndings to the units concerned. In
all processes and activities related to a whistleblowing
complaint or disclosure, utmost conﬁ dentiality is
observed in order to ensure the integrity of the process
and/or protect the parties, employees or ofﬁ ces who
are allegedly involved.

As of year-end 2013, there were four new whistleblowing
complaints received by the CGO and two complaints
received in prior years pending ﬁ nal resolution. The
complaints covered allegations of violation of the Code
of Business Conduct and Ethics, COI Policy, Policy on
Gifts, Entertainment and Sponsored Travel and Supplier/
Contractor Relations Policy.

Training and Education
PLDT provides continuous training for its Board
and Management. The highlight of this continuing
education and communication program is the
annual enhancement session which is conducted
by internationally-known experts who share their
experience, expertise and insights to PLDT’s Board
and Management. PLDT has organized and conducted
seven annual enhancement sessions since 2007. In 2013,
two experts in the ﬁ eld of corporate governance and
ethics were invited to address PLDT’s Board, senior
management and middle management.

On December 2, 2013, PLDT directors attended a
session developed and handled by Mr. Winthrop
Swenson, a partner at the US-based Compliance
Systems Legal Group. Mr. Swenson’s session was
entitled Ensuring Effective Board Oversight of Ethics
and Compliance: Emerging Trends and Lessons Learned.

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On November 26, 2013, Ms. Gretchen A. Winter,
Executive Director of the Center for Professional
Responsibility in Business and Society at the University
of Illinois at Urbana-Champaign, spoke before PLDT
ofﬁ cers and executives in a session entitled Handling
Ethical Dilemmas: Tools and Techniques.

The session with Ms. Winter is the second occasion
where PLDT’s middle managers have been invited to
attend a corporate governance enhancement session
together with senior management. PLDT intends to
continue this practice in the future to help instill the
proper competencies to its middle managers who, on
a day-to-day basis, exercise vast inﬂ uence over the rest
of the personnel of the Company. This annual training
augments the half-day workshop on Ethical Decision
Making and workshop on Managing from a Position of
Control that middle managers must undertake, as well
as the basic orientation on corporate governance that
they received upon their promotion or appointment.
Corporate governance orientation is also given to all
newly-hired PLDT employees in the supervisory and
rank and ﬁ le levels.

In addition to face-to-face training, PLDT has online
training modules for its employees. PLDT executives
with the rank of manager, senior manager and
assistant vice president are required to access and
complete an online training course on the PLDT EWB
Policy. Supervisory and rank and ﬁ le employees, on
the other hand, are required to take and complete a
module on the PLDT Conﬂ ict of Interest Policy.

Education and training are supplemented by the
production and dissemination of relevant corporate
governance communication materials, including
thematic posters, calendars and newsletters.
Directors and certain ofﬁ cers and executives of PLDT
are also provided with weekly Corporate Governance
Newsbriefs, which contain summaries of news articles
from global online sources. The Board of Directors is
also provided with CG Updates of articles on relevant
topics written by noted authors and/or authorities.
The Company also issues periodic advisories on
corporate governance.

Monitoring and Evaluation
PLDT’s corporate governance monitoring and
evaluation system consists of the annual performance
self-assessment conducted by the Board and the Board
Committees, the review of the effectiveness of the
Company’s CG Rules and their implementation every
two years, the annual compliance evaluation conducted
by Management, and other tools employed to monitor
observance of the CG Rules and corporate values by
Company personnel.

Our Board conducts a self-assessment each calendar
year to evaluate the performance of the Board as
a whole, the Board Committees and the individual
directors. The process, which also includes an
evaluation on the performance of the CEO and
Management, enables the Board to identify strengths
and areas for improvement and to elicit each director’s
feedback and views on the Company’s strategy,
performance and future direction. Similarly, each Board

Committee also conducts an annual self-assessment
of its performance. The members of the Board and the
Board Committees accomplish their respective Self-
Assessment Questionnaires for this purpose. The Board
Self-Assessment Questionnaire contains the following
criteria based on leading practices and principles on
good governance: (1) for the Board: Leadership, Roles
and Responsibilities, Independence, Stewardship,
Reporting and Disclosure, Shareholders’ Beneﬁ ts
and Training; (2) for directors: the speciﬁ c duties and
responsibilities of a director; and (3) for the Board
Committees: Performance and Compliance. Each Board
Committee Self-Assessment Questionnaire contains
the following criteria: Performance & Compliance and
Committee Governance. For the 2012 performance
period, the results of the assessment process was duly
reported to and discussed with the Board in 2013.

Moreover, PLDT monitors and assesses compliance
with the CG Rules through a cross-functional evaluation
system whereby the heads of the various business
and support units/groups, including, but not limited
to, Enterprise and International Carrier Business,
Home Business, Finance, Human Resources, Customer
Service Assurance, Technology, Supply Chain Asset
Protection & Management, Public Affairs, Enterprise
Risk Management, Information Technology, Regulatory,
Internal Audit, Corporate Affairs and Legal Services,
Corporate Governance Ofﬁ ce and Investor Relations,
conduct an evaluation of their unit/group’s compliance
using an evaluation questionnaire consisting of the
governance regulations applicable and relevant to their
respective functions, including the requirements of the
Revised Code of Corporate Governance and the PSE
Corporate Governance Guidelines (PSE CG Guidelines).

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The results of the evaluation conducted by the heads
are submitted to the Corporate Finance and Treasury
Head and the Chief Governance Ofﬁ cer, who submit
the consolidated report to the President and CEO for
approval. The results of the compliance evaluation are
also reported to the GNC by the CGO.

In 2013, PLDT conﬁ rmed its compliance with its CG
Manual which contains relevant provisions of the
Revised Code of Corporate Governance of the PSEC
and certain corporate governance standards under
the US Securities Exchange Act and NYSE Company
Manual. PLDT submitted its Annual Corporate
Governance Report to the PSEC and its PSE CG
Guidelines Disclosure Report both pertaining to 2012, on
June 28, 2013 and March 20, 2013, respectively.

In line with all of these, PLDT has incorporated
corporate governance standards in the performance
evaluation of employees and has included violations of
CG Rules as a cause for disqualiﬁ cation from incentives
and rewards, including under the Long-Term Incentive
Plan, in its Policy on Employee Qualiﬁ cation for
Incentives and Rewards.

PLDT conducts focus on group discussions across
all personnel levels in order to gain insights into the
effectiveness of its efforts. A Governance and Ethics
Survey has been tested and will be rolled out regularly
to personnel to provide more quantiﬁ able information
that is tracked over time to check for improvements or
deﬁ ciencies. In similar fashion, a Corporate Governance
Follow Through survey has been conducted in the past
two years to track the observations of newly-hired
personnel. The survey is administered to PLDT’s new
hires six months after they are hired and thereafter,
on the second and ﬁ fth year of their service. Valuable
information is also obtained from the Board and Board
Committee assessment process. Data are also obtained
and analyzed from results of our education activities,
trends in reported violations, whether within the
whistleblowing system or not, key business indicators
such as customer complaints, reports from business
partners and all other sources of relevant information.

44 • 2013 PLDT ANNUAL REPORT
44 • 2013 PLDT ANNUAL REPORT

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Our Stakeholders

PLDT remains committed to establishing and maintaining
a corporate culture anchored on performance and
responsibility in fulﬁ lling obligations to our stakeholders.

Guided by our Corporate Responsibility Statement,
we deal and engage with stakeholders in the manner
described below.

Investors/Shareholders
PLDT respects, promotes and upholds shareholders’
rights such as: the right to vote, pre-emptive right, the
right to inspect corporate books and records, right to
timely receive relevant information subject to certain
conditions, right to dividends, and the appraisal right.
The Company explores and implements steps to
reduce excessive or unnecessary costs that impede
stockholders’ participation, acts with transparency
and fairness at the annual and special stockholders’
meetings and makes timely disclosures of material
information and transactions that could potentially
affect the market price of the Company’s shares. In
this regard, information on earning results, acquisition
or disposal of signiﬁ cant assets, off balance-sheet
transactions, related party transactions, Board
membership changes, shareholdings of directors and
ofﬁ cers and any changes thereto, and remuneration
of directors and ofﬁ cers are promptly and accurately
disclosed. To view the Minutes of the 2013 PLDT Annual
Stockholders’ Meeting, please click on the link below.

http://www.pldt.com/docs/default-source/annual-
meeting-of-stockholders/2013/2013_june14_annual-
meeting-(as-of-08-30-13).pdf?sfvrsn=0

Shareholders who wish to raise matters or concerns
relating to the business of the Company may elevate
such matters to the corporate secretary, the investor
relations ofﬁ cer, concerned units of PLDT’s Management
or the Board of Directors.

PLDT’s current dividend policy is to declare a regular
dividend of 70% of core earnings per share with the
option given to the PLDT Board to declare a special
dividend subject to the capacity of PLDT to pay
additional returns to shareholders. Dividends are
declared and determined taking into consideration the
interests of our shareholders as well as our working
capital, capital expenditures and debt servicing
requirements. We also take into consideration our ability
to meet loan covenant requirements in the declaration
and payment of dividends. Due consideration is also
given to the need to retain earnings in order to meet
the funding requirements of our business expansion
and development programs. PLDT has been recognized
several times as one of the companies in Asia most
committed to a strong dividend policy.

Concerns of shareholders with respect to their
investments and rights as shareholders are ably handled
by our Investor Relations Ofﬁ ce.

PLDT’s Code of Ethics prohibits directors, ofﬁ cers
and employees from dealing in the Company’s shares
when in possession of material non-public information
about and involving the Company. Directors, ofﬁ cers
and employees are enjoined to report to the Company
their dealings in the Company’s shares, regardless
of whether such dealings were effected during or
outside the blackout period, within three trading days
from the date of the transaction, to enable the ﬁ ling
of the required disclosures to the PSEC and PSE.
During blackout periods, dealing in Company shares
by directors, ofﬁ cers or employees is not allowed and
in any exceptional case, prior notice to the Company
should be made of any such dealing in Company shares,
in accordance with the Company’s policy on Blackout
Period/Restriction on Trading of Shares.

Creditors
In accordance with our Code of Ethics, we protect
the rights of our creditors by publicly disclosing all
material information, such as earnings results and risk
exposures relating to loan covenants. Our disclosure
controls and procedures also include periodic reports
to our creditors such as our latest certiﬁ ed Financial
Statements, No Default Certiﬁ cation, and Certiﬁ cation
on compliance with ﬁ nancial ratio limits.

Customers
It is PLDT’s privilege to serve a broad range of
customers from residential customers, small and
medium enterprises, corporate customers covering
large local and international companies, organizations
and government. PLDT strives to satisfy its customers’
expectations and concerns regarding innovative
products and services, quality of service, pricing,
application process, service provisioning process,
repair and restoration service and the billing process.
We continuously engage with our customers through
various touchpoints with the end in view of knowing
and understanding our customers’ communication
products and service needs, promptly addressing their
concerns and identifying areas where we could further
enhance customer experience.

Suppliers
PLDT aspires to maintain mutually beneﬁ cial
relationships only with like-principled suppliers that
uphold PLDT’s core values of fairness, accountability,
integrity, and transparency in their own businesses.
PLDT has over 1,500 active suppliers which serve
the requirements of the PLDT Group, ranging from
capital to operating expenditures as well as services.
The Company’s Supplier/Contractor Relations Policy
provides for the general principles to be followed in
vendor selection. Suppliers are required to undergo an
accreditation process before they engage in business
with PLDT. Among the criteria for accreditation are
ﬁ nancial capability, technical capability, compliance with
applicable laws, including those pertaining to industrial
relations, environment, health and safety and intellectual
property rights. The Company’s purchases, as a general
rule, are made on the basis of competitive bidding of
accredited and qualiﬁ ed suppliers, in accordance with
the aforementioned policy.

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Employees
PLDT respects the rights of its personnel, among
which are the right to self-organization, safe working
conditions, rest and leisure, and work-life balance. It
also provides opportunities for skills development
and improvement, leadership and competency
training as well as career development. PLDT provides
adequate opportunity for career advancement on a
merit-based system. Compensation and incentives
are likewise determined on the basis of performance
and accomplishment. Dedicated staff and facilities
are made available for the training and development
programs of the Company. The Company organizes
programs that support the well-being of employees,
allows them to participate in PLDT’s CSR activities
and obtains their feedback on Company concerns.
An Organization and Employee Opinion Survey is
conducted at regular intervals to gauge employee
engagement as well as obtain the pulse of PLDT
employees across the organization at different levels
and positions concerning topics and issues which
are prioritized and addressed in the various people
programs of the Company. In accordance with the
Company’s Personnel Manual, the Company provides
medical and dental beneﬁ ts for our employees, which
include hospitalization, doctor consultation, medicines
and laboratory tests. The Company monitors and
submits reports on employee health and safety in
accordance with applicable regulations.

Communities
PLDT operates all over the Philippines and inevitably
relates to local residents, non-governmental
organizations and other sectors in the communities
where the Company does business. The Company is
aware that these communities are concerned about
PLDT’s products and services and the impact of its
operations on such communities. No less than our CG
Manual mandates that PLDT, through the Board of
Directors, shall ensure that there exists a program for
communicating with the sectors in the communities
where the Company operates or those who are affected
by its operations.

As a telecommunication service provider, PLDT serves
communities and the people that live in them by
providing products and services that offer various
options for people to connect with each other. As a
corporation, PLDT creates wider opportunities for
employment, entrepreneurship and greater well-
being. As a corporate citizen, PLDT actively engages
with the communities, including the sectors directly
affected by its operations, through CSR projects in
education, health, community, environment, livelihood
development, youth development and sports, and
disaster relief operations. In doing these activities,
PLDT encourages and creates opportunities for
employee participation.

Environment
PLDT is committed to do its part in addressing the
pressing need to preserve and protect our environment.
As such, PLDT ensures compliance with rules and
regulations from local government regulatory ofﬁ ces
such as the DENR Environmental Management Bureau,

the Laguna Lake Development Authority and other
similar agencies and ofﬁ ces. Furthermore, projects to
reduce waste and the Company’s carbon footprint
are also being implemented. The Company regularly
monitors relevant Global Reporting Initiative indicators
such as direct energy consumption, energy saved,
initiatives to reduce energy consumption, total water
withdrawn by source, direct and indirect greenhouse
gasses emission by weight, total weight of waste by
type and disposal method, and total environmental
expenditures and investment.

Advocacy and Networking
PLDT is actively engaged in the advocacy for better
governance and ethics in business. This engagement is
anchored in the Company’s policy against corruption
and bribery as set forth in its Code of Ethics, and
further reinforced in speciﬁ c policies, such as the
Policy on Gifts, Entertainment and Sponsored Travel,
Supplier/Contractor Relations Policy and CG Guidelines
for Suppliers, which likewise prohibit bribery involving
third parties in business dealings with the Company.
These policies are implemented through anti-corruption
programs and measures such as internal controls,
training and communication, our whistleblowing
system, third party due diligence, and support for and
participation in multi-sectoral anti-corruption initiatives
to eliminate graft and corruption.

PLDT continues to work with institutions and
organizations engaged in programs and advocacy
efforts in the corporate governance, compliance
and business ethics ﬁ eld. The PLDT Group is an
active sponsoring partner member of the Ethics and
Compliance Ofﬁ cer Association (ECOA) based in
Waltham, Massachusetts, USA. PLDT participates in the
ECOA’s Annual Ethics and Compliance Conferences.
Our membership at the ECOA gives PLDT access to its
vast online library on corporate governance and related
topics, opportunities to interact with other corporate
governance and ethics professionals around the world,
and benchmark our governance practices against
those of leading companies. Locally, PLDT is a member
organization of the Good Governance Advocates and
Practitioners of the Philippines (GGAPP), an association
of corporate governance, ethics and compliance
professionals from private corporations, the public
sector, the academe and other organizations interested
in advancing the cause of good corporate governance.
PLDT also participates in the activities of the Institute of
Corporate Directors such as its roundtable discussions
and working sessions.

PLDT reached another milestone in its life as it
celebrated its 85th Anniversary. The logical challenge
facing the Company is how to sustain its leadership in
the telecommunications and information industry in the
coming years. PLDT has learned that to do this requires
a pioneering spirit that is steadfast in its commitment to
its values; an ability to boldly innovate while staying true
to time-honored principles of delighting our customers
and building mutually-beneﬁ cial relationships with our
employees and all other stakeholders. In this way PLDT
puts itself in a position to ﬂ ourish in the challenging,
complex and ever-evolving business environment that it
ﬁ nds itself in.

46 • 2013 PLDT ANNUAL REPORT

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Enterprise Risk Management

THE PLDT GROUP HAS LONG RECOGNIZED ENTERPRISE RISK

MANAGEMENT (ERM) AS ESSENTIAL TO THE ACHIEVEMENT OF BUSINESS

GOALS AND OBJECTIVES. THE ORGANIZATION ACKNOWLEDGES ERM’S

ROLE IN THE PROMOTION OF A COMPREHENSIVE UNDERSTANDING OF

RISKS AND ITS EFFECT ON PERFORMANCE.

The Group Enterprise Risk
Management Department
The PLDT Group’s commitment to the proactive
management of existing and emerging risks is
reinforced by the Group Enterprise Risk Management
Department (GRMD). The GRMD develops
and manages a comprehensive integrated risk
management program that is implemented across all
levels of the organization, with the goal of managing
the Group’s risks to an acceptable level, so as to
enhance opportunities, reduce threats, and thus create
even more value for the business and its stakeholders.

The Enterprise Risk Management
Framework and Process
The GRMD promulgates and encourages the
adoption of a standard risk evaluation process
focused on the need to properly identify, analyze,
evaluate, treat and monitor risks that may affect
the achievement of business objectives. The
ERM process implemented is based on the Draft
International Standard of ISO 31000.

T
L
U
S
N
O
C
D
N
A
E
T
A
C
N
U
M
M
O
C

ESTABLISH THE CONTEXT

T
N
E
M
S
S
E
S
S
A
K
S
R

IDENTIFY RISKS

ANALYZE RISKS

EVALUATE RISKS

TREAT RISKS

W
E
V
E
R
D
N
A
R
O
T
N
O
M

The implementation of the ERM process ensures that high-
priority risks are well understood and effectively managed
across all functions and units within the PLDT Group.

PLDT Group Top 10 Risks
In 2013, the GRMD continued the implementation of a
standard risk management process throughout the PLDT
Group. Results of the ERM workshops conducted for the
Consumer Wireless Business and Home Business were
presented to the PLDT Audit Committee. Furthermore,
risk management policies of Digitel have been fully
aligned with the guidelines observed throughout the
organization.

A risk assessment exercise was also undertaken by the
Joint Executive Committee to identify and prioritize the
most important risks affecting the PLDT Group in 2014.
These top risks are:

1. Fast and Disruptive Pace of Technological Change
2. Evolving Business Model
3. Organization and People
4. Media and Related Investments
5. Network Quality & Consistency and IT Systems
6. Hazards
7. Market Dynamics
8. Vendor-related Issues
9. Regulatory and Political Challenges
10. Information Security and Privacy

The PLDT Group is committed to pursuing measures
to ensure that all these risks are effectively managed.
Treatment strategies have been developed and mitigation
initiatives put in place. Risk management activities are
continuously monitored and reviewed to ensure that
critical risks are appropriately addressed across the
organization.

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LIVE DIGITAL ! • 47

Board of Directors

MANUEL V. PANGILINAN

NAPOLEON L. NAZARENO

Manuel V. Pangilinan
67, Filipino
Director of PLDT since November 24, 1998. He was appointed as Chairman
of the Board of PLDT after serving as its President and CEO from
November 1998 to February 2004. He is the Chairman of the Governance
and Nomination, Executive Compensation and Technology Strategy
Committees of the Board of Directors of PLDT. He also serves as Chairman
of Metro Paciﬁ c Investments Corp., Meralco and Philex Mining Corp., all of
which are PSE-listed companies, and of several subsidiaries or afﬁ liates
of PLDT or MPIC, including, among others, Smart, Beacon Electric Asset
Holdings Inc., Manila North Tollways Corp., Maynilad, Landco Paciﬁ c Corp.,
Makati Medical Center, Cardinal Santos Medical Center, Davao Doctors
Hospital, Riverside Medical Center, Our Lady of Lourdes Hospital and
Asian Hospital. He is also the Chairman of MediaQuest Holdings Inc.,
TV5 Network, Inc. and PLDT-Smart Foundation, Inc. He founded First
Paciﬁ c Co. Ltd., a Hongkong Stock Exchange-listed company, in 1981 and
served as Managing Director until 1999. He was appointed as Executive
Chairman until June 2003, when he was named as CEO and Managing
Director. Within the First Paciﬁ c Group, he also holds the position of
President Commissioner of P.T. Indofood Sukses Makmur Tbk, the largest
food company in Indonesia. Outside the First Paciﬁ c Group, he is the
Chairman of the Board of Trustees of San Beda College and the Hong
Kong Bayanihan Trust, a non-stock, non-proﬁ t foundation which provides
vocational, social and cultural activities for Hongkong’s foreign domestic
helpers. In February 2007, he was named the President of the Samahang
Basketbol Ng Pilipinas, a national sports association for basketball. In
January 2009, he assumed the chairmanship of the Amateur Boxing
Association of the Philippines, a governing body of the amateur boxers in
the country. In October 2009, Mr. Pangilinan was appointed as Chairman of
the Philippine Disaster Recovery Foundation, Inc. (PDRF), a non-stock, non-
proﬁ t foundation established to formulate and implement a reconstruction
strategy to rehabilitate and rebuild areas devastated by ﬂ oods and other
calamities. He is the Chairman of Philippine Business for Social Progress, a
social action organization made up of the country’s largest corporations,
Vice Chairman of the Foundation for Crime Prevention, a private sector
group organized to assist the government with crime prevention, a
member of the Board of Trustees of Caritas Manila and Radio Veritas-
Global Broadcasting Systems, Inc., a former Commissioner of the Pasig
Rehabilitation Commission, and a former Governor of the Philippine Stock
Exchange. In June 2012, he was appointed as Co-Chairman of the newly
organized US-Philippine Business Society, a non-proﬁ t society which seeks
to broaden the relationship between the United States and the Philippines
in the areas of trade, investment, education, foreign and security policies
and culture. Mr. Pangilinan graduated cum laude from the Ateneo de Manila
University, with a Bachelor of Arts Degree in Economics. He received
his Master’s Degree in Business Administration from Wharton School of
Finance & Commerce at the University of Pennsylvania. He was conferred
a Doctor of Humanities (Honoris Causa) Degree by the San Beda College
(2002), Xavier University (2007), Holy Angel University (2009) and Far
Eastern University (2010).

Napoleon L. Nazareno
64, Filipino
Director of PLDT since November 24, 1998 and is a member of the
Technology Strategy Committee of the Board of Directors of PLDT. He
has served as President and CEO of PLDT since his appointment on
February 19, 2004 and is concurrently the President and CEO of Smart
since January 2000 and Connectivity Unlimited Resources Enterprises,
Inc. since 2008. He also serves as Chairman or is a director of several

subsidiaries of PLDT and Smart including PLDT Communications and
Energy Ventures, Inc. (PCEV), Wolfpac Mobile, Inc., Smart Broadband,
Inc., I-CONTACTS Corp., ePLDT, Inc. (ePLDT), Mabuhay Investments Corp.
(Mabuhay Investments), ACeS Philippines Cellular Corp. (Aces Philippines),
Digital Telecommunications Phils, Inc. (Digitel), Digitel Mobile Phils, Inc.
(Digitel Mobile), PLDT Global Investments Holdings, Inc. and PLDT Global
Corp. His other directorships include Meralco, a PSE-listed company, SPi
Technologies, Inc., SPi CRM, Inc. and Ruﬁ no Paciﬁ c Tower Condominium
Corp. He is a non-executive director of First Paciﬁ c, a Hongkong Stock
Exchange-listed company. Mr. Nazareno received his Master’s Degree in
Business Management from the Asian Institute of Management, completed
the INSEAD Executive Program of the European Institute of Business
Administration in Fountainbleu, France, and was conferred a Doctor of
Technology (Honoris Causa) Degree by the University of San Carlos.

Helen Y. Dee
70, Filipino
Director of PLDT since June 18, 1986. She is the Chairperson or a director
of EEI Corporation, National Reinsurance Corp. of the Philippines,
Petro Energy Resources Corp., Rizal Commercial Banking Corp. and
Seafront Resources Corp., all of which are PSE-listed companies. She is
the Chairperson, Vice Chairperson or a director of several companies
engaged in banking, insurance and real property businesses. She is also
the President and/or CEO of Hydee Management and Resource Corp.,
Moira Management, Inc., Tameena Resources, Inc., YGC Corporate Services,
Inc., Financial Brokers Insurance Agency, Inc., GPL Holdings, Inc. and Mijo
Holdings, Inc., the Vice President of A. T. Yuchengco, Inc., and the Treasurer
of Business Harmony Realty, Inc. Ms. Dee received her Master’s Degree in
Business Administration from De La Salle University.

Atty. Ray C. Espinosa
57, Filipino
Director of PLDT since November 24, 1998, the Head of Regulatory Affairs
and Policies of PLDT since March 2008, and General Counsel of Meralco
since 2009. In June 2013, he joined First Paciﬁ c and was appointed as First
Paciﬁ c Group’s Head of Government and Regulatory Affairs and Head of
Communications Bureau for the Philippines. Atty. Espinosa is also a director of
Meralco, and an independent director and Chairman of the Audit Committee
of Lepanto Consolidated Mining Co., which are PSE-listed companies. He also
holds directorships in other public and private companies. He is also a trustee
of the Beneﬁ cial Trust Fund of PLDT and PLDT-Smart Foundation, Inc. He
served as President & CEO of MediaQuest, TV5 Network, Inc., Cignal TV, Inc.
until May 2013 and prior thereto, was the President & CEO of ePLDT and its
subsidiaries until April 2010. Atty. Espinosa has a Master of Laws Degree from
the University of Michigan Law School.

James L. Go
74, Filipino
Director of PLDT since November 3, 2011, and is a member of the
Technology Strategy Committee and Advisor of the Audit Committee of
the Board of Directors of PLDT. He is the Chairman and CEO of JG Summit
Holdings, Inc., and Oriental Petroleum and Minerals Corp., the Chairman
of Universal Robina Corp. and Robinsons Land Corp., the Vice Chairman
and Deputy Chief Executive Ofﬁ cer of Robinsons Retail Holdings, Inc.,
and a director of Meralco, which are PSE-listed companies. He is also the
Chairman of JG Summit Petrochemical Corp. and JG Summit Oleﬁ ns
Corp., and a director of Singapore Land Ltd., Marina Center Holdings, Inc.,
United Industrial Corp. and Hotel Marina City Private Limited. He is also

48 • 2013 PLDT ANNUAL REPORT

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HELEN Y. DEE

ATTY. RAY C. ESPINOSA

JAMES L. GO

SETSUYA KIMURA

HIDEAKI OZAKI

ARTEMIO V. PANGANIBAN

the President and Trustee of the Gokongwei Brothers Foundation. He
was the Chairman, President and CEO of Digitel Mobile and the Vice
Chairman, President and CEO of Digitel until October 26, 2011. Mr. Go
received his Bachelor of Science Degree and Master of Science Degree in
Chemical Engineering from Massachusetts Institute of Technology, USA.

Setsuya Kimura
57, Japanese
Director of PLDT since July 5, 2011. He is a member of the Governance
and Nomination, Executive Compensation and Technology Strategy
Committees, and Advisor of the Audit Committee of the Board of
Directors of PLDT. He is the Director of Network Department of
NTT DoCoMo, Inc. He served as Regional CEO, Asia Paciﬁ c of NTT
Communications and President & CEO of NTT Singapore Pte Ltd
from 2007 to 2009, and as President & CEO of NTT Communications
(Thailand) Co. Ltd from 2003 to 2007. Prior to that, he occupied
various management positions in Nippon Telephone and Telegraph Co.
Mr. Kimura obtained his Bachelor’s Degree in Civil Engineering from
Hokkaido University.

Hideaki Ozaki
48, Japanese
Director of PLDT since December 6, 2011. He is the Vice President of
Planning, Global Business of NTT Communications Corp., a company
which provides telecommunication and ICT services such as Global
Network, Data Centre, Cloud Services inside and outside of Japan. He
served as part-time Director of NTT Communications Philippines from
July 2009 to February 2012. Prior to that, he served as Vice President
of Global Strategy, Global Business Division of NTT Com since 2006 and
as Director of Legal and Internal Audit Department of NTT Com from
2003 to 2006. He also served as Vice President of Sales and Corporate
Planning of NTT Communications (Thailand) Co., Ltd. from 1999 to 2003
and as Manager of Overseas Business Planning, Global Service Division
of Nippon Telegraph and Telephone Corp. from 1995 to 1999. Mr. Ozaki
obtained his Bachelor’s Degree in Law from University of Tokyo and
Master’s Degree in Law from University of Pennsylvania.

Hon. Artemio V. Panganiban
77, Filipino
Independent director since April 23, 2013. He was appointed as an
independent member of the Audit, Governance and Nomination and
Executive Compensation Committees of the Board of Directors of PLDT
on May 7, 2013. He served as an independent member of the Advisory
Board and an independent non-voting member of the Governance and
Nomination Committee of the Board of Directors of PLDT from June
9, 2009 to May 6, 2013. Currently, he is also an independent director
of Meralco, Petron Corp., Bank of the Philippine Islands, First Philippine
Holdings Corp., Metro Paciﬁ c Investments Corp., Robinsons Land Corp.,
GMA Network, Inc., GMA Holdings, and Asian Terminals, Inc., and a Non-
executive director of Jollibee Foods Corp., all of which are PSE-listed
companies. He also holds directorships in Metro Paciﬁ c Tollways Corp.
and Tollways Management Corp. He is the Chairman of the Board of
Trustees of the Foundation for Liberty and Prosperity and Chairman-
Emeritus of the Philippine Dispute Resolution Center, Inc., President of
the Manila Metropolitan Cathedral-Basilica Foundation, Chairman of
the Board of Advisers of Metrobank Foundation, Inc., Asian Institute of
Management Center for Corporate Governance, and University of Asia
and the Paciﬁ c, Senior adviser of the Metropolitan Bank and Trust Co.
and V. Mapa Falcon Honor Society, Adviser of Doubledragon Properties
Corp., and a column writer of the Philippine Daily Inquirer. Hon.
Panganiban obtained his Bachelor of Laws Degree (Cum Laude) from
the Far Eastern University in 1960, and was conferred a Doctor of Laws
(Honoris Causa) Degree by the University of Iloilo (1997), Far Eastern
University (2002), University of Cebu (2006), Angeles University (2006)
and Bulacan State University (2006).

Ma. Lourdes C. Rausa-Chan
60, Filipino
Director of PLDT since March 29, 2011 and non-voting member of the
Governance and Nomination Committee of the Board of Directors of
PLDT. She has been serving as Corporate Secretary, Corporate Affairs
and Legal Services Head and Chief Governance Ofﬁ cer of PLDT since
November 1998, January 1999 and March 2008, respectively. She is

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MA. LOURDES C. RAUSA-CHAN

PEDRO E. ROXAS

JUAN B. SANTOS

TONY TAN CAKTIONG

ALFRED V. TY

a director of ePLDT and PLDT Global Investments Holdings, Inc. and
also serves as Corporate Secretary of several subsidiaries of PLDT,
PCEV, PLDT-Smart Foundation Inc. and Philippine Disaster Recovery
Foundation, Inc. Prior to joining PLDT, she was the Group Vice President
for Legal Affairs of Metro Paciﬁ c Corp. and the Corporate Secretary
of some of its subsidiaries. Ms. Rausa-Chan obtained her Bachelor of
Arts Degree in Political Science and Bachelor of Laws Degree from the
University of the Philippines.

Pedro E. Roxas
57, Filipino
Director of PLDT since March 1, 2001 and qualiﬁ ed as an independent
director since 2002. He is the Chairman of the Audit Committee and
serves as an independent member of the Governance and Nomination
and Executive Compensation Committees of the Board of Directors of
PLDT. He is the Chairman of Roxas Holdings, Inc., Executive Chairman
and President/CEO of Roxas and Co., Inc., and an independent director
of Meralco and BDO Private Bank, which are reporting or PSE-listed
companies. He is also the Chairman, President or a director of companies
or associations in the ﬁ elds of agri-business, sugar manufacturing and
real estate development including Brightnote Assets Corp., Club Punta
Fuego, Inc. and Philippine Sugar Millers Association, and a member of the
Board of Trustees of Philippine Business for Social Progress and Fundacion
Santiago (where he is also the President). Mr. Roxas received his Bachelor
of Science Degree in Business Administration from the University of Notre
Dame, Indiana, USA.

Juan B. Santos
75, Filipino
Director of PLDT since January 25, 2011. He is the Chairman of Social
Security Commission/Social Security System, and a member of the Board
of Directors of Alaska Milk Corp., First Philippine Holdings Corp. and Philex
Mining Corp., which are PSE-listed companies. He is also a member of
the Board of Directors of Philippine Investment Management (PHINMA),
Inc., Sun Life Grepa Financial, Inc. and Zuellig Group Inc., a member of
the Board of Advisors of Coca-Cola FEMSA Asia Division, East-West
Seeds Co., Inc., a trustee of Ramon Magsaysay Award Foundation and
St. Luke’s Medical Center, and a consultant of the Marsman-Drysdale
Group of Companies. He retired as CEO of Nestle Philippines, Inc. (“NPI”)
in 2003 and continued to serve as Chairman of NPI until 2005. Prior to

his appointment as President and CEO of NPI, he was the CEO of the
Nestle Group of Companies in Thailand and Singapore. He served as
Secretary of Trade and Industry from February to July 2005 and was
designated as a member of the Governance Advisory Council, and Private
Sector Representative for the Public-Private Sector Task Force for the
Development of Globally Competitive Philippine Service Industries. He
obtained his Bachelor of Science Degree in Business Administration
from Ateneo de Manila University, pursued post graduate studies at
the Thunderbird Graduate School of Management in Arizona, USA and
completed the Advanced Management Course at IMD in Lausanne,
Switzerland.

Tony Tan Caktiong
61, Filipino
Director of PLDT since July 8, 2008. He is the Chairman and CEO of
Jollibee Foods Corp., a PSE-listed company and a leader in the fastfood
business, which owns and operates a chain of restaurants nationwide
and abroad. He is an independent director of First Gen Corp., a PSE
listed company, and a member of the Board of Trustees of Jollibee Group
Foundation and Temasek Foundation. Mr. Tan Caktiong obtained his
Bachelor of Science Degree in Chemical Engineering from University of
Santo Tomas and honed his business skills by attending various courses
and seminars in several educational institutions including, among others,
the Asian Institute of Management, Stanford University (Singapore) and
Harvard University.

Alfred V. Ty
46, Filipino
Independent director of PLDT since June 13, 2006. He serves as a
member of the Audit, Governance and Nomination and Executive
Compensation Committees of the Board of Directors of PLDT. He is the
Vice Chairman of GT Capital Holdings, Inc. and the Corporate Secretary
of Metropolitan Bank and Trust Co., both of which are PSE-listed
companies. He is also the Vice Chairman of Toyota Motor Philippines
Corp., the President of Federal Land, Inc., the Chairman of Lexus Manila,
Inc., Cathay International Resources, Inc. and Bonifacio Landmark Realty
& Development Corp., a director of Global Business Power Corp., a trustee
of Metrobank Foundation, Inc., Norberto Tytana Foundation and GT-Metro
Foundation, Inc. Mr. Ty received his Bachelor of Science Degree in Business
Administration from the University of Southern California.

50 • 2013 PLDT ANNUAL REPORT

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Advisory Board

OSCAR S. REYES

ROBERT R. ROMULO

BENNY S. SANTOSO

WASHINGTON Z. SYCIP

ORLANDO B. VEA

CHRISTOPHER H. YOUNG

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Key Offi cers & Advisors

Ernesto R. Alberto
53, Filipino
Appointed as Enterprise and International and Carrier Business Head in
September 2011. Prior to that, he was the Customer Sales and Marketing
Group Head since February 2008. He leads all revenue generation
relationship initiatives of the Enterprise and International and Carrier
Business, including product/market development, product management,
marketing, sales and distribution, and customer relationship management.
He is the Chairman and President of Telesat, Inc., the President and
CEO of ePLDT, the Chairman of ABM Solutions, Inc., Acasia, Bonifacio
Communications Corp., ePDS, Inc., iPlus Intelligent Network, Inc., PLDT
Clark Telecom, Inc., PLDT Subic Telecom, Inc., and Smart-NTT Multimedia,
Inc., a director of Asean Telecoms Holdings, Mabuhay Investments, PLDT
Global Corp. (Philippines and Malaysia), PLDT-Philcom, Inc., PLDT-
Maratel, Inc., and IP Converge Data Services, Inc. Prior to joining PLDT in
2003, was Vice President and Head of the National Corporate Group of
Citibank N.A., Manila from 1996 to May 2003. He previously served as Vice
President and Head of the Relationship Management Group of Citytrust
Banking Corp.

Rene G. Bañez
59, Filipino
Supply Chain, Asset Protection and Management Group Head, was
the Chief Governance Ofﬁ cer of PLDT from October 2004 to March
3, 2008 and the Support Services and Tax Management Group Head
of PLDT from January 1999 to January 2001. He is director of FEP
Printing Corp., Meralco Industrial Engineering Services Corp., PLDT
ClarkTel, PLDT SubicTel, PLDT Maratel, and PLDT Philcom. He served
as Commissioner of the Philippine Bureau of Internal Revenue from
February 2001 to August 2002. Prior to joining PLDT, he was the
Group Vice President for Tax Affairs of Metro Paciﬁ c Corporation for 3
years until December 1998.

Fixed Group

(Seated, L-R) Jun R. Florencio,
Christopher H. Young, Napoleon
L. Nazareno, June Cheryl A.
Cabal-Revilla, Ma. Lourdes C.
Rausa-Chan.

(Standing, L-R) Isaias P. Fermin,
Alejandro O. Caeg, Anabelle
L. Chua, Lawrence Goh, Rene
G. Bañez, Ernesto R. Alberto,
Menardo G. Jimenez Jr.

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June Cheryl A. Cabal-Revilla
40, Filipino
Controller and Financial Reporting and Controllership Head, is also a
director and the Chief Financial Ofﬁ cer/Treasurer of certain subsidiaries of
PLDT and the PLDT-Smart Foundation, Inc. She is also the Chief Financial
Ofﬁ cer of Mediascape, Inc. and Paciﬁ c Global One Aviation Co., Trustee
and Chief Finance Ofﬁ cer of the Philippine Disaster Recovery Foundation,
Controller of First Paciﬁ c Leadership Academy, Inc. and the President
of Tahanan Mutual Building and Loan Association. Prior to joining PLDT
in June 2000 as an executive trainee in the Finance Group, she was a
senior associate in the business audit and advisory group of Sycip Gorres
Velayo & Co. She was the 2008 Young Achievers Awardee for Commerce
and Industry conferred by the Philippine Institute of Certiﬁ ed Public
Accountants and recently joined the ranks of the distinguished pool of
awardees of The Outstanding Young Men (TOYM) 2013 for community
service through the program known as the Gabay Guro (2G). In March
2010, she was appointed as a member of the Financial Reporting
Standards Council of the Philippines.

Alejandro O. Caeg
53, Filipino
President and CEO of PLDT Global Corp. and concurrently the Head
of PLDT, Smart, Digitel and Sun International & Carrier Business. He is
Smart’s representative to the Conexus Mobile Alliance (one of Asia’s
largest cellular roaming alliances), where he was also designated as
its Deputy Chairman until 2012 and is currently Conexus Chairman till
2014. Prior to joining PLDT in 2009, he worked in PT Smart Telecom
(Indonesia) as its Chief Commercial Strategy Ofﬁ cer from July 2008 to
December 2008 and as Chief Commercial Ofﬁ cer from January 2006 to
June 2008. He also held various sales, marketing and customer service-
related positions in Smart including that of Group Head of Sales and
Distribution (2003-2005), Group Head of Customer Care and National
Wireless Centers (1998-2001) and Marketing Head of International
Gateway Facilities and Local Exchange Carrier (1997-1998). He also
served as President and CEO of Telecommunications Distributors
Specialist, Inc. in 2002 and as Chief Operations Adviser of I-Contacts
Corp. (Smart’s Call Center subsidiary) from 2001 to 2002.

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LIVE DIGITAL ! • 53

Anabelle L. Chua
53, Filipino
Treasurer and Corporate Finance and Treasury Head, concurrently
holds the position of Chief Financial Ofﬁ cer of Smart since 2006
and of Digitel Mobile since August 2013. She holds directorships in
Philippine Telecommunications Investment Corp., Smart, Digitel and
several subsidiaries of PLDT, Smart and Digitel including ePLDT, Digitel
Mobile, Aces Philippines, Mabuhay Investments, PLDT Global, PLDT
Global Investments, PCEV, Wolfpac Mobile, Inc., Smart Broadband, Inc.,
Smart e-Money, Inc. and Chikka Holdings Limited. She is a member of
the Board of Directors of Philippine Stock Exchange and Securities
Clearing Corp. of the Philippines and the Board of Trustees of the PLDT-
Smart Foundation and PLDT Beneﬁ cial Trust Fund, and is a director
of MediaQuest and several subsidiaries of MediaQuest. She was Vice
President at Citibank, N.A. where she worked for 10 years prior to
joining PLDT in 1998.

Isaias P. Fermin
46, Filipino
Designated, on January 1, 2012, as Executive Vice President and
Head of Home Business of the PLDT Group. He is responsible for
delivering revenue and profit growth for the Home Business through
a much defined brand positioning that consistently engages the
consumer in all touch points, a balanced product portfolio that
propels both subscriber and ARPU growth and introduction of a
new line of products and services that significantly improves the
consumer use experience. Concurrently, he is the Chairman of the
Board of Directors of PLDT Philcom and PLDT Maratel, the CEO of
Digitel and a director of PLDT Global Corp. Prior to joining the PLDT
Group, he was the President of Greenwich Food Corp. and Chowking
Food Corp. of the Jollibee Foods Corp. from 2008 to 2011. He also
served as Country Director of Nike Philippines from 2006 – 2008 and
handled various posts in Unilever – Bestfoods from 1998 to 2005 as
senior executive for sales, marketing, media and innovation process
management.

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Wireless Group

(Seated, L-R) Emmanuel Ramon
C. Lorenzana, Rolando G. Peña,
Orlando B. Vea, Lawrence Goh

(Standing, L-R) Mario G. Tamayo,
Jovan C. Barac, Napoleon L.
Nazareno, Rene G. Bañez, Anabelle
L. Chua, Charles A. Lim

Jun R. Florencio
58, Filipino
Internal Audit and Fraud Risk Management Head, handles the overall
coordination of the internal audit function of the PLDT group of
companies and is in-charge of the fraud risk management function
of the PLDT Fixed Line business. He was the Financial Controller of
Smart for four years before he joined PLDT in April 1999 as Head
of Financial Management Sector. He held various positions in the
finance organization of another telecommunications company prior
to joining Smart.

Menardo G. Jimenez, Jr.
51, Filipino
Customer Service Assurance Head, Human Resources Group Head, and
concurrently Business Transformation Ofﬁ ce Head, was Revenue Team
Head of the Business Transformation Ofﬁ ce from January 2008 to July
2010, the Retail Business Head of PLDT from June 2004 to December
31, 2007 and, prior to that, the Corporate Communications and Public

Affairs Head. He had a stint at GMA Network, Inc., where he served as
head of a creative services and network promotions. He won the ﬁ rst
CEO Excel Awards (Communications Excellence in Organizations) given
by the International Association of Business Communicators mainly
for effectively using communications strategies in managing the PLDT
retail business team to meet its targets and achieve new heights in the
landline business. In 2006, his further achievements in handling the
retail business of PLDT and his stint in Smart as ofﬁ cer-in-charge for
marketing were recognized by the Agora Awards which chose him as
its Marketing Man of the Year.

Christopher H. Young
56, British
PLDT’s Chief Financial Advisor, He worked in PricewaterhouseCoopers
in London and Hong Kong from 1979 until 1987, at which time he joined
First Paciﬁ c in Hong Kong as Group Financial Controller. He joined
Metro Paciﬁ c Corp. in 1995 as Finance Director, a position he held until
joined PLDT in November 1998.

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LIVE DIGITAL ! • 55

RICARDO M. SISON
FVP, Consumer Credit and Business
System Management

MARVEN S. JARDIEL
VP, Enterprise Operations Support
and Readiness

EMILIANO R. TANCHICO, JR.
FVP, Human Resources Management
and Development

ALEXANDER S. KIBANOFF
VP, Training, Development and Career
Management

PLDT Offi cers

MANUEL V. PANGILINAN
Chairman of the Board

NAPOLEON L. NAZARENO
President and Chief Executive Ofﬁ cer

ERNESTO R. ALBERTO
EVP, Enterprise, International
and Carrier Business

ISAIAS P. FERMIN
EVP, HOME Business

RENE G. BAÑEZ
SVP, Supply Chain, Asset Protection
and Management

MELISSA V. VERGEL DE DIOS
FVP, Investor Relations

MIGUELA F. VILLANUEVA
FVP, Cost and Valuation

RAUL S. ALVAREZ
VP, HOME Marketing Support

ALEJANDRO O. CAEG
SVP, International and Carrier Business

JOSE A. APELO
VP, Fixed Service Quality Management

ANABELLE L. CHUA
SVP, Corporate Finance and Treasury
Corporate Treasurer

RAFAEL M. BEJAR
VP, Medical Services

JUN R. FLORENCIO
SVP, Internal Audit and Fraud Risk
Management

MENARDO G. JIMENEZ, JR.
SVP, Human Resources
Business Transformation Ofﬁ ce

MA. LOURDES C. RAUSA-CHAN
SVP, Corporate Affairs and Legal Services
Chief Governance Ofﬁ cer
Corporate Secretary

KATRINA L. ABELARDE
FVP, Small and Medium Enterprise

ANNA ISABEL V. BENGZON
FVP, Ofﬁ ce of the Finance Group Head

ALFREDO B. CARRERA
FVP, Regulatory Strategy and Support

CESAR M. ENRIQUEZ
FVP, EICB Revenue and Operations Support

JUAN VICTOR I. HERNANDEZ
FVP, Corporate Business

FLORENTINO D. MABASA, JR.
FVP, Legal Services
Assistant Corporate Secretary

LEO I. POSADAS
FVP, Treasury

MARCO ALEJANDRO T. BORLONGAN
VP, Customer Service Operations
Management

RENATO L. CASTAÑEDA
VP, Corporate Relationship Management G

REBECCA JEANINE R. DE GUZMAN
VP, HOME Customer Care and Sales Support

ALONA S. DINGLE
VP, Financial Reporting

MARGARITO G. DUJALI, JR.
VP, HOME Data Solutions

WALTER M. GAFFUD
VP, HOME Sales and Distribution

GIL SAMSON D. GARCIA
VP, Revenue and Cash Accounting

JOSEPH IAN G. GENDRANO
VP, Corporate Relationship Management A

ELISA B. GESALTA
VP, Network Services Project Management

JOHN JOHN R. GONZALES
VP, Corporate Relationship Management F

MA. JOSEFINA T. GORRES
VP, Enterprise Billing and Credit
Management

JUNE CHERYL A. CABAL-REVILLA
FVP, Financial Reporting and Controllership

MARTIN T. RIO
FVP, Property and Facilities Management

MA. CRISELDA B. GUHIT
VP, Tax Management

EMERALDO L. HERNANDEZ
VP, Technical Operations Centre

JOSEPH NELSON M. LADABAN
VP, Consumer Credit and Collection
Management

JAVIER C. LAGDAMEO
VP, Corporate Relationship Management B

JOSELITO S. LIMJAP
VP, ICT Research and Development

ALBERT MITCHELL L. LOCSIN
VP, Corporate Relationship Management C

LUIS IGNACIO A. LOPA
VP, Enterprise Subsidiaries and VIP Account
Management

MA. CARMELA F. LUQUE
VP, Financial and Corporate Audit

OLIVER CARLOS G. ODULIO
VP, Asset Protection and Risk Management

RICARDO C. RODRIGUEZ
VP, Compensation and Rewards Planning
and Management

GENARO C. SANCHEZ
VP, Network Planning and Engineering

ANA MARIA A. SOTTO
VP, EICB Customer Experience Management

JULIETA S. TAÑECA
VP, Consumer Business Systems Support
Management

JESUS M. TAÑEDO
VP, VisMin Customer Service Operations
District

PATRICK S. TANG
VP, HOME Voice Solutions

VICTOR Y. TRIA
VP, Corporate Relationship Management D

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