Enriching Connections
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2014 ANNUAL REPORT
22
48
12
28
OUR COVER
PLDT has always been about connecting people.
Touching lives and thereby, transforming them.
In this digital age, these connections have become more powerful and pervasive.
Seamlessly woven into the fabric of everyday life.
Adding color and texture to ordinary events.
Enriching connections.
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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 Subsidiary
Chikka Holdings Ltd. and Subsidiaries
Voyager Innovations, Inc. and Subsidiaries
Fixed Line
PLDT Clark Telecom, Inc.
PLDT Subic Telecom, Inc.
PLDT Global Corp. 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.
Philippine Global Investment Corp.
Mabuhay Investment Corp.
PLDT is the leading telecommunications and multimedia
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 2014, 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.
CONTENTS
2 Comparative Highlights
3 Consolidated Financial Performance Highlights
4 A Message from the Chairman
8 A Letter from the President and CEO
13 The PLDT Group Corporate Milestones
23 The PLDT Group Corporate Social Responsibility Report
29 The PLDT Group Corporate Governance Report
49 The PLDT Group Enterprise Risk Management Report
50 Board of Directors
53 Advisory Board
54 PLDT Key Officers
56
Joint Executive Committee and Key Advisors
1
58 PLDT Officers
59 Financial Review
103 Audit Committee Report
104 Statement of Management’s Responsibility
for Consolidated Financial Statements
Independent Auditors’ Report
105
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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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
COMPARATIVE HIGHLIGHTS
FINANCIAL INFORMATION (in million pesos,
except cash dividends declared per
common share)
2010
2011
2012
2013
2014
Revenues
Service Revenues
Non-Service Revenues
Expenses
Depreciation and Amortization
Compensation and Employee Benefits
Repairs and Maintenance
Cost of Sales
Selling and Promotions
Interconnection Costs
Professional and Other Contracted Services
Rent
Asset Impairment
Others
Net Income for the Year
Continuing Operations
Discontinued Operations
Core Income
Continuing Operations
Discontinued Operations
EBITDA
148,597
2,217
150,814
145,834
2,645
148,479
159,738
3,295
163,033
164,052
4,279
168,331
165,070
5,892
170,962
25,881
19,759
9,087
4,771
5,244
13,928
4,916
3,699
1,420
6,582
95,287
39,825
40,314
(489)
41,594
41,056
538
82,049
27,539
15,411
10,053
5,443
7,807
12,586
5,679
3,938
10,200
7,768
106,424
31,218
30,351
867
38,616
37,827
789
78,225
32,354
21,999
12,604
8,747
9,708
11,105
6,050
5,860
5,286
8,816
122,529
36,099
35,556
543
36,907
36,356
551
75,388
30,304
21,369
13,107
11,806
9,776
10,610
7,173
6,041
5,543
9,786
125,515
35,453
33,384
2,069
38,717
38,816
(99)
77,552
31,379
18,749
14,988
13,512
10,619
10,507
7,748
6,605
6,046
10,304
130,457
34,090
34,090
-
37,410
37,410
-
76,877
Property, Plant and Equipment
Accumulated Depreciation, Amortization
and Impairment
Carrying Value
Capital Expenditures
Short and Long-Term Debts
Net Debt
Equity Attributable to Equity Holders of PLDT
Cash Dividends Declared Per Common Share
Out of the Earnings for the Year
416,390
481,647
481,033
581,286
605,598
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
413,614
191,984
34,759
130,123
102,821
134,364
222
189
172
179
156
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
45,636,008 63,696,629 69,866,458 70,045,627 69,857,060
1,822,105 2,166,295 2,063,794 2,069,419 2,207,889
4,075,150
1,999,025 2,910,682 3,246,423 3,415,793
2,986,146
1,355,977 2,068,409 2,359,024 2,453,826
961,967 1,089,004
49,457,138 68,773,606 75,176,675 75,530,839 76,140,099
11,880
2,182,391 2,181,823
842,273
887,399
643,048
12,005
12,169
Number of Employees
Wireless
Fixed Line
14,737
5,165
9,572
19,452
8,043
11,409
19,125
8,663
10,462
17,899
7,680
10,219
17,496
7,725
9,771
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2
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
CONSOLIDATED FINANCIAL PERFORMANCE HIGHLIGHTS
165.1B
76.9B
37.4B
200
148.6
145.8
150
46.8
45.2
100
101.8
100.6
159.7
47.6
164.1
49.1
165.1
51.6
112.1
115.0
113.5
41.6
38.6
36.9
38.7
37.4
78.2
75.4
77.6
76.9
100
80
82.0
60
40
20
0
50
40
30
20
10
0
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
SERVICE REVENUES
(in billion pesos)
WIRELESS
FIXED LINE
EBITDA
(in billion pesos)
CORE INCOME
(in billion pesos)
76.1M
66.0B
627.9B
75.2
3.2
2.1
69.9
75.5
3.4
2.1
70.0
76.1
4.1
2.2
69.8
68.8
2.9
2.2
63.7
49.4
2.0
1.8
45.6
77.3
79.2
80.4
73.8
66.0
90
80
70
60
50
40
30
20
10
0
627.9
545.1
546.6
576.1
477.0
700
600
500
400
300
200
100
0
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
2010
2011
2012
2013
2014
SUBSCRIBER BASE
(in millions)
WIRELESS
FIXED LINE
BROADBAND
CASH FLOW FROM
OPERATIONS
(in billion pesos)
MARKET CAPITALIZATION
(Year-end, in billion pesos)
50
0
80
70
60
50
40
30
20
10
0
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3
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS A MESSAGE FROM
THE CHAIRMAN
Enriching
Connections
TO MY FELLOW SHAREHOLDERS:
The year 2014 imposed a severe test for our
Company as competition at home intensified and
managed to gain some ground on our wireless
business, whilst social media and other global
internet communications services continued to
erode the revenues of our legacy businesses.
These twin influences are reflected in the mixed
results we reported this year.
Service revenues of the PLDT Group rose 1% to Php165.1
billion, as data and broadband services combined with
domestic voice businesses compensated for declines
in revenues from text messaging and our toll traffic–
international and national long distance voice services.
Core net income declined 3% to Php37.4 billion while
Reported net income slipped 4% to Php34.1 billion. These
decreases were due largely to a rise in cash operating
expenses, an increase in product subsidies and a higher
provision for income tax. In sum, the modest net increase
in revenues was not sufficient to cover the rise in expenses.
In the face of these tests, PLDT launched major initiatives
in the course of the year to stimulate growth, particularly in
data, broadband and digital services. These required major
investments in our network infrastructure as well as in new
digital ventures that complement or enhance our existing
access businesses.
These steps are intended not only to bolster PLDT’s
competitive and market position, but also to hasten the
Group’s transition from being mainly an access provider of
telco services to becoming an enabler and provider of a
wider range of multimedia and digital services.
In view of the elevated investments that we incurred in
2014 – which are expected to rise further into 2015 due to
continued investments in our wired and wireless networks
and more investments in the digital and media spaces –
PLDT lowered its cash dividends slightly to 90% of core net
income for 2014. For 2015, we guided our core net income
lower at Php35.0 billion, a decline of about 6%.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Enriching
Connections
Php34.8b
Php65.2b
CAPITAL
EXPENDITURES
FIXED LINE
SERVICE
REVENUES
SERVICE
REVENUES
ROSE TO
Php165.1b
MOBILE
INTERNET
REVENUES
SURGED BY
63%
STRENGTHENING OUR
INTEGRATED NETWORK
Underpinning our efforts to power growth and meet
competition is the Group’s heavy investments in the
country’s most extensive and resilient integrated fixed and
mobile network infrastructure. Capital expenditures (capex)
amounted to Php34.8 billion in 2014, Php6.0 billion higher
than the previous year.
We have used these funds to expand further our fiber optic
transmission and distribution networks. This included rolling
out our fiber network in Palawan via Iloilo and in Bohol,
through which PLDT now provides a third transmission
link to Mindanao, thus strengthening the resilience of our
network connection to the region.
On the back of this extensive fiber rollout, we have stepped
up the deployment of high-speed broadband facilities
for both our fixed and mobile services: fiber-to-the-
home (FTTH) for PLDT HOME and 3G and 4G Long-Term
Evolution (LTE) for Smart and Sun Cellular.
For 2015, PLDT has allocated Php39 billion in capex,
anticipating our increased penetration of homes, the
rising appetite for data services by large, medium and
small enterprises, enhanced data usage arising from more
smartphones being adopted, and the growing appetite of
users for video and other bandwidth-heavy services.
PROMOTING THE ‘ALWAYS ON’ EXPERIENCE
We simply cannot wait for the internet to engulf our
business, much less resist or even attempt to stop it.
The internet is here already – we must embrace it. Though
mobile internet revenues surged by 63% to Php8.1 billion
in 2014, there remains a lot of headroom for growth. To
speed mobile data adaption, we have launched three
major initiatives under our Internet for All campaign, aimed
particularly at our prepaid subscribers who make up over
96% of our total base.
In September 2014, we launched our Free Internet
promotion that enabled our 70 million Smart, Talk ‘N Text
and Sun Cellular subscribers to browse the internet for
free, based on a daily data allocation of 30 MB. This promo
lasted until February 2015, and succeeded in drawing in
a significant number of first-time mobile internet users
among our prepaid subscribers.
In February 2015, Smart through its subsidiary
Voyager Innovations, Inc. (Voyager) launched the
SafeZone mobile app, which provides prepaid users
sponsored free access to a selection of popular websites
in online commerce, travel, transportation and news plus
Facebook, Twitter and Instagram. Given the enthusiastic
response to SafeZone, this list of websites is expected to
grow robustly.
In March 2015, we partnered with Facebook to bring its
internet.org mobile application to the Philippines. This app
provides Smart, Talk ‘N Text and Sun Cellular subscribers
free access to basic Facebook and Messenger services
and an initial list of 24 websites that supplies news and
information, e-commerce, weather alerts, online reading,
jobs search and skills training. Again, more websites shall
be added to the initial list in due course.
Our expectation is that these various promos will stimulate
greater awareness and demand for the always-on mobile
internet experience. Our intention is to capitalize on that
opportunity by offering very affordable data packages
through innovative applications like PowerApp, as well
as by way of a robust and reliable access infrastructure.
Rising internet usage may also help boost short messaging
services (SMS) and voice revenues through packages that
bundle these traditional services with data.
SOLUTIONS FOR HOME AND ENTERPRISE
Data now account for over half of our fixed line service
revenues and this fact explains in large part how PLDT
has defied global trends in the wired business – unique
in the way it raised its fixed line service revenues by 6%
to Php57.0 billion, net of interconnection costs, in 2014.
This growth has been powered primarily by rising data and
multimedia usage of PLDT HOME and Enterprise customers.
We expect this trend to stay unabated, as retail customers
take to a growing portfolio of video and music services and
other offerings using devices like Telpad. A case in point is
Fam Cam, a home monitoring service that allows users to
view video of their homes using their PCs, tablets or mobiles.
Originally, an enterprise service for small-and-medium
enterprises (SMEs), this service migrated to retail and now
provides families with a useful security solution.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Enterprise customers, especially small and medium
corporations, are increasingly adopting Cloud and
managed services and machine-to-machine (M2M)
solutions. These include end-to-end information
and communications technology (ICT) solutions like
Infrastructure as a Service (IaaS), Software as a Service
(SaaS), Platform as a Service (PaaS) and Unified
Communications as a Service (UCaaS).
PLDT’s ability to serve enterprise needs has been further
enhanced by its six global-grade, carrier neutral and
vendor agnostic data centers which offer the largest rack
capacity in the country. Our data centers are the largest,
the most reliable, and the best secure.
BEYOND ACCESS AND CONNECTIVITY
In August 2014, PLDT made a strategic investment
amounting to €333 million in Rocket Internet AG (Rocket),
the world’s leading global e-commerce company outside
of the U.S. and China. In January 2015, PLDT and Rocket
formed two joint ventures: one to build e-commerce
companies in the Philippines and the other to promote
mobile payments globally.
These moves highlight our strategy of investing in adjacent
digital businesses that are related to and/or enhance
our core businesses. These businesses currently include
mobile remittances through services like Smart Money and
Smart Padala; e-commerce and mobile payments through
websites like Takatack and payment services like Pay Maya
powered by tie-ups with VISA and Mastercard; digital
platforms and products such as LockByMobile, Big Data
and data analytics. As the world increasingly turns digital,
PLDT shall complement its existing businesses by providing
life services that go beyond access and connectivity.
AWARDS AND RECOGNITION
In 2014, the Group continued to reap rewards and
recognition for its efforts in the areas of Investor Relations,
Corporate Governance (CG) and Corporate Social
Responsibility (CSR).
The regional publication Finance Asia gave its Best CEO
Award for the Philippines to PLDT and Smart President and
Chief Executive Officer (CEO) Polly Nazareno and its Best
Investor Relations and Most Committed to a Strong Dividend
Policy Awards to PLDT.
Your Company was also cited for having the Most
Consistent Dividend Policy in the 4th Annual Alpha
Southeast Asia’s Institutional Investor Corporate Awards.
This magazine also honored PLDT with top awards in the
areas of Best CEO and Best Investor Relations Program.
Chaye Cabal-Revilla, PLDT Global Chief Financial Officer,
was awarded CFO of the Year, Excellence in Business
Partnering at the 2014 CFO Innovation Asia Awards in
November 2014 held in Singapore.
I am personally grateful with being recognized by the Asian
Corporate Director Recognition Award in the 5th Asian
Corporate Director of the Year Award 2014.
PLDT won the Asia Pacific Award for Ethernet Service
Excellence at the 2014 MEF Awards, making it the only
Philippine company to win this prestigious award. PLDT
also garnered the top award for Retail Service Provider of
the Year in Asia Pacific, which recognizes your Company’s
ethernet service excellence for the enterprise market.
Smart won the Best Use of Mobile in Emergency or
Humanitarian Situations by the GSMA Global Mobile
Awards in Barcelona, Spain for its program SafePH:
Yolanda Response in February 2014.
Smart was also named Best Mobile Operator by the
international publication Telecoms.com and by the 16th
World Communications Awards. It also won top employer
citations from the Asia Communication Awards and the
Asia CEO Awards.
CORPORATE ACTION GOES DIGITAL
Reflecting the ongoing transition of its core businesses,
PLDT’s CSR programs are themselves turning more digital.
Among Smart’s programs in education in 2014, for
example, was the development of a Learning Management
System (LMS) designed for the roughly 1,000 private and
public high schools implementing the successful Dynamic
Learning Program developed by Ramon Magsaysay
Awardees Drs. Christopher and Maria Victoria Bernido.
The LMS is a cloud-based platform that enables schools
to closely monitor the academic performance of their
students and teachers.
In the field of health, Smart’s Secured Health Information
Network and Exchange (SHINE) has been transformed from
a proprietary software into an open-sourced electronic
medical records, referral, reminder and reporting platform
in cooperation with the Ateneo Java Wireless Competency
Center. Previously deployed in the province and city of
Iloilo, the new version of the platform called SHINE OS+ is
now being vetted for accreditation by the Philippine Health
Insurance Corp. A mobile application is being developed to
provide individuals access to their medical records.
Both digital solutions – the LMS and SHINE OS+ – are
being readied for deployment in 2015.
As in our business, our digital innovations in corporate
social programs are meant to complement and enhance
our other programs. Face-to-face, on-the-ground
activities remain our basic programs.
In education for example, the Gabay Guro (2G) program
run by the PLDT Managers’ Club, Inc. (MCI) and the PLDT-
Smart Foundation, Inc. (PSF) built and donated classrooms,
and provided free training for over 2,500 teachers in Leyte
and over 5,000 teachers in Capiz in early 2014.To make these
activities interesting, 2G invited celebrities like Robin Padilla,
Derek Ramsay and Anne Curtis to host these events.
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6
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS PLDT has always been about
connecting people. Today,
we are increasingly about
enriching connections.
2G also held several tribute-for-teacher events leading up
to the Grand Gathering in October at the SM Mall of Asia
Arena (MOA Arena), which was attended by over 20,000
teachers. The program also provided scholarships to 124
aspiring teachers, 41 of whom graduated with honors in
2014.
Meanwhile, PLDT’s Infoteach Outreach Program expanded
its reach in school year 2014-2015, providing computer
and internet literacy training for over 4,500 teachers
and students in public high schools in 14 cities and
municipalities in various parts of the country. Done in
partnership with the Department of Education (DepEd),
the University of the Philippines Online University (UPOU)
and Intel, the program is capped by an online quiz contest
among graduates of the program called the PLDT MyDSL
Broadband Quiz.
The PLDT Group was also active in other areas of
corporate social action such as the environment,
livelihood and disaster preparedness and response.
With respect to the environment, for example, PLDT
continues to work with the Department of Environment
and Natural Resources (DENR), the Philippine Business for
Social Progress (PBSP) and local governments of Infanta
and Real, Quezon to replant the Watershed Forest Reserve
in that area with 80,000 seedlings.
In disaster preparedness and response, Smart has
coordinated more closely with national government
agencies through the Office of Civil Defense (OCD) and the
National Disaster Risk Reduction and Management Council
(NDRRMC). Smart launched a mobile application called
Batingaw for the NDRRMC that gives government agencies
and the public access to disaster warnings, advisories and
other information.
Smart also funded and co-funded the implementation
of the community-based disaster preparedness program
called Noah’s Ark in the city of General Santos and
the province of Cebu, respectively. Developed by the
Corporate Network for Disaster Response (CNDR), the
Noah’s Ark program prepares disaster-prone communities
to conduct orderly evacuations in the event of typhoons
and floods.
In the field of sports, PLDT and Smart supported
the Gilas Pilipinas team in its campaign at the FIBA
Basketball World Cup in Spain and the Asian Games in
South Korea. Smart also backed the Philippine Football
Federation, Philippine Azkals and the Philippine Taekwondo
Association in various international tournaments. Aside
from continuing to support the Talk ‘N Text team in the
Philippine Basketball Association, Smart also promoted
grassroots sports development especially amongst the
youth, through projects like barangay sports clinics. For its
part, PLDT assisted the Super Liga Volleyball tournament, a
developmental league for former college players. The PLDT
Group has been consistently supportive of Philippine sports –
by itself and through the MVP Sports Foundation – which fund
at least eight national sports programs on an ongoing basis.
OUTLOOK
In last year’s Annual Report, I wrote about my visit to various
leading tech companies in Silicon Valley, California and the
profound impressions that my 50 fellow senior executives of
the First Pacific Group and I took home with us.
I have been visiting the Metro Manila offices of Voyager,
which is taking the lead in introducing many of the digital
platforms and services of the PLDT Group. I felt the same
sense of excitement and opportunity – the hope, future
and fun that the digital world offers to our business, and to
the youth and future of this country. Clearly, the digital age
belongs to the young.
To be sure, we are a long way from Silicon Valley. But
I am gratified that we are starting to build a similar
kind of intensely creative yet disciplined environment right
here in the Philippines. This is what PLDT – and the country
– need to do in order to thrive in this digital age.
In aiming for this, we are pursuing our digital ambitions
purposively – focusing on adjacent businesses that link with,
and enhance, our existing access business – a business
which remains needed even in this digital century. PLDT
has always been about connecting people. Today, we are
increasingly about enriching connections.
Allow me to thank our shareholders for their steadfast
support, our Board of Directors for their insight and
wise counsel, and the Management and Staff for their
dedication and diligence in building a new future for your
Company, our Customers and our Country.
MANUEL V. PANGILINAN
Chairman of the Board
7
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS A LETTER FROM THE
PRESIDENT AND CEO
Digitizing
Communications
DEAR FELLOW SHAREHOLDERS:
The year 2014 has brought home the message
that transformational shifts are taking place in our
industry and that major changes in our Company
are needed to ensure its continued success in the
digital world.
We faced challenges on two fronts. On the one hand, price
competition in the cellular business intensified. On the
other, new digital communications services offered by
over-the-top (OTT) players continued to displace some of
our traditional services. As I will show below, the combined
impact of these two developments is reflected in our
financial results for 2014.
PLDT is taking strategic initiatives on both fronts.
The results will become evident this year and next as
PLDT moves further forward in its transition from being a
telecoms company into becoming a multimedia and digital
communications group.
Core net income, excluding exceptional items, dipped by 3%
or Php1.3 billion year-on-year to Php37.4 billion. This was
due to lower EBITDA, an increase in non-cash expenses,
and higher provision for income taxes, which together fully
offset lower net financing costs and the Php1.7 billion gain
recognized from the sale of Meralco shares by Beacon Asset
Holdings, Inc. (Beacon).
Reported net income for 2014 declined by 4% or P1.3 billion
to Php34.1 billion from P35.4 billion in 2013 as lower net
forex and derivative losses during the year were absorbed by
higher impairment charges related to the network upgrade,
and the contribution from discontinued operations in 2013.
Consolidated service revenues for 2014 increased by Php1.0
billion or 1% from 2013 to Php165.1 billion reflecting the
net effect of keen competition particularly in the wireless
business, as well as the impact of the continued growth of
data and broadband on our other revenue sources.
About a quarter of our service revenues in 2014 were from
our data and broadband businesses, which registered a
robust 18% or Php6.4 billion year-on-year rise to Php41.7
billion. In addition, modest increases of 3% and 2% were
generated by our cellular and fixed line domestic voice
businesses, respectively. However, as data and broadband
made available OTT alternatives to SMS and international
voice calling, revenues from these were lower in 2014 by 11%
and 9% at Php42.0 billion and Php20.6 billion, respectively,
compared with the previous year. Price-focused competition
exacerbated the decline in SMS revenues.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Digitizing
Communications
Consolidated EBITDA for 2014 dipped by 1% or Php0.7
billion as the Php1.0 billion improvement in service revenues
and the Php1.2 billion decline in provisions were overtaken by
the Php1.5 billion rise in cash operating expenses particularly
those related to operating an expanded network and to
responding to competition. Nonetheless, EBITDA margin for
2014 remained stable at 47%.
Cash from operations for 2014 of Php83.3 billion was
similar to the 2013 level. However, an increase in capex
by Php5.9 billion, a higher net decrease in working capital,
as well as a rise in income taxes paid resulted in lower
free cash flow for 2014 of Php27.7 billion compared with
Php42.0 billion in 2013.
line service revenues. Revenues from our traditional
businesses – national long distance and international
long distance – continue to decrease, with their combined
Php300 million decline offsetting a similar increase in
domestic voice revenues.
Fixed line EBITDA was higher by Php3.3 billion or 15% year-
on-year at Php25.6 billion, mainly due to higher revenues
and lower provisions. EBITDA margin rose to 39% from 36%
in 2013.
At the end of 2014, PLDT had over 2.2 million fixed
line subscribers, of which 1.1 million had broadband
subscriptions.
PLDT declared a total of Php156 or 90% of its 2014 core
earnings per share (EPS) as dividends. This consisted of
a regular dividend of Php130 or 75% of core EPS, and a
special dividend of Php26 per share or 15% of core EPS.
The 2014 dividend payout is lower than the 100% payout of
core earnings for 2007-2013 to take into account higher
capital expenditures to support the growing data business,
the investment in Rocket, as well as plans to complement
the mainstream access business with investments in new
adjacent businesses that will provide future sources of
profits and dividends.
The outlook for the fixed line segment remains upbeat
with the overall Philippine economy continuing to grow
and providing sustained demand for broadband and data
services.
Capitalizing on this opportunity, our Enterprise team has
expanded its portfolio of digital connectivity and business
solutions, including M2M services, Cloud computing and
data center services, thus, further enabling the growth
of Philippine industry, including large corporates, business
process outsourcing (BPOs) and SMEs.
Even with the lower dividend payout, PLDT’s dividend yield
of 5.4% based on the closing share price of Php2,906 at the
end of 2014 remains attractive, being one of the highest in
the Philippines and in the region.
UNPARALLELED INTEGRATED PLDT
GROUP NETWORK
Capex for 2014 rose to Php34.8 billion to support the
growing network requirements, particularly for the data
and broadband businesses. This included investments
to expand network coverage, increase fiber reach and
capacity, modernize the fixed line network and improve
operating efficiencies.
Anticipating the continued exponential growth in data
traffic and greater smartphone ownership as well as our
initiatives to stimulate data usage, PLDT is earmarking
Php39.0 billion for capex in 2015.
We believe that the sustained investment in our integrated
fixed and wireless network is essential in order to reinforce
PLDT’s ability to deliver high-quality voice, data and multi-
media services to our customers.
ROBUST FIXED LINE BUSINESS
PLDT’s fixed line service revenues posted a Php3.4 billion
or 6% year-on-year increase to Php57.0 billion, net of
interconnection costs.
Eighty-six percent of total fixed line revenues grew vis-
à-vis the previous year, with the bulk of the increase or
Php3.0 billion coming from our HOME (consumer) and
Enterprise (corporate) data and broadband businesses,
which generated Php30.2 billion or 53% of total fixed
Domestic consumption also remains robust, fuelled
by inward remittances from Filipinos abroad, as well as
the greater employment and economic benefits arising
from, among others, the expansion of the BPO industry.
These developments have fuelled the demand for home
broadband services.
Thus, our HOME segment has continued to expand its
footprint and presence in homes nationwide by making
available a compelling suite of digital services which include
communication, entertainment and home monitoring, with
the end goal of delivering to the customer a connected
home. These HOME offers include a library of movies,
music, games and sports, all designed to enrich our
customers’ multi-media experience through the internet.
EVOLVING WIRELESS BUSINESS
Service revenues from our wireless business dipped by 1%
or Php1.6 billion year-on-year to Php115.0 billion in 2014,
as increases in wireless broadband and mobile internet, as
well as domestic voice revenues, were offset by declines in
inbound international and SMS revenues.
Efforts to grow our postpaid business bore fruit with our
postpaid subscriber base having grown to over 2.7 million
at the end of 2014, which generated postpaid revenues of
Php21.7 billion representing 21% of total cellular revenues.
The growth rates that the our wireless business posted –
14% and 16% year-on-year in revenues and subscribers,
respectively – set the pace for the industry.
On the other hand, prepaid revenues declined by Php5.5
billion or 6% to Php79.1 billion as a result of price
competition as well as our more robust response to defend
market share in the second half of 2014.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Wireless EBITDA for 2014 was lower by Php3.8 billion or
7%, at Php50.9 billion. EBITDA margin of 44% [from 47%
in 2013] reflects the pressure on revenues, the impact of
the change in the wireless revenue mix, and the greater
proportion of postpaid revenues to total revenues.
Encouragingly, the margin for the second half of 2014 of
44% was stable versus the first half of 2014.
Our more aggressive response to competition towards the
latter part of 2014 had positive results, albeit we believe 2015
will continue to be challenging in this respect. In parallel, we
are continuing to manage the structural changes happening
within our wireless business arising from the growth of
wireless broadband and mobile internet. Various efforts
were launched in 2014 to make the internet accessible to as
wide a base as possible, including a campaign to increase
awareness among the prepaid market of the benefits of an
‘always-on’ experience, and making data access affordable
through low-denomination variants.
Progressively, our wireless offers will consist of service
bundles containing voice, SMS and data in various
combinations designed to satisfy our subscribers’ different
communication needs. This approach, which taps both our
mainstream and digital services, should result in improved
average revenue per users (ARPUs) for the business.
THRIVING BROADBAND BUSINESSES
The upward trajectory for data and broadband revenues
accelerated in 2014 as revenues climbed by Php5.3 billion
or 20% year-on-year to Php31.9 billion, now representing
19% of total service revenues compared with 16% in 2013.
These numbers capture the surging popularity of data
usage in the Philippines, particularly for social networking,
supported by a young population, rising smartphone
ownership and the availability of affordable data plans.
The PLDT Group’s broadband subscriber base crossed
the 4 million-mark in 2014, registering a 19% rise or over
659,000 net adds from the end of 2013.
Fixed broadband revenues grew by 13% to Php13.9
billion following a 13% increase in subscribers to 1.1 million,
representing about 50% of our fixed line subscriber base. This
is the seventh consecutive year that our fixed broadband
revenues have registered year-on-year increases.
Wireless broadband revenues improved by 6% to Php9.9
billion following a 22% rise in subscribers to nearly 3 million.
Mobile internet continued to post the strongest growth,
with revenues up by 63% year-on-year at Php8.1 billion as
smartphone ownership among our subscriber base grew to
nearly 30% with usage higher by 167% from 2013.
The outlook for our broadband businesses remains bright,
and we believe that this will be the cornerstone of your
Company’s future growth.
INVESTING IN THE FUTURE
In 2014, we undertook major initiatives in line with
our efforts to create a new future for PLDT. We are
transforming ourselves from a telco-access business to
a digitally-driven multimedia communications and life
solutions group.
Through our fixed and mobile broadband networks, we
are delivering a growing range of multimedia content and
services that address various needs of our customers at
home, work, school, or wherever they may be.
Last year, we mentioned that we started to offer music,
games, e-books and movies with our various offers. We
continue to expand these offers.
For example, we recently announced a multi-year,
multi-platform partnership with The Walt Disney Co.
Southeast Asia, through its digital arm, Disney Interactive.
Subscribers of Smart and PLDT HOME Telpad will be able
to access the growing portfolio of Disney’s on-line games
and e-books using their smartphones, tablets, laptops
and computers. In line with this, we have created a single
platform called Front Seat to deliver movies and other
video content to our customers using laptops, tablets or
smartphones through our fixed and mobile data networks.
In addition to investments in content, we are expanding
our presence in the digital space, specifically in adjacent
businesses that complement the PLDT Group’s telco
access business.
In August 2014, PLDT and Rocket entered into a global
strategic partnership to drive the development of online
and mobile payment solutions in emerging markets.
Berlin-based Rocket’s mission is to become the world’s
largest internet platform outside of the U.S. and China.
It identifies and builds proven internet business models
and transfers them to new, underserved or untapped
markets where Rocket seeks to scale them into market-
leading online companies. Rocket started in 2007, and
now has more than 25,000 employees across its network
of companies, which are active in more than 100 countries
across six continents.
PLDT invested €333 million and now holds a 6.1% stake in
Rocket following its IPO in early October 2014. At the end
of March 2015, PLDT’s stake is worth €463 million based on
Rocket’s closing share price of €45.99.
The investment in Rocket underscores PLDT’s strategic
intent to combine our world-class mobile money
expertise and resources with Rocket’s global network of
e-commerce businesses to drive future value enhancing
growth opportunities.
PLDT and Rocket are currently developing a commercial
model that integrates Smart Money payments in selected
Rocket e-commerce businesses in the Philippines to be
launched in the next couple of months. Mobilization in
other international markets where Rocket operates would
follow shortly thereafter.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
At the pace the digital
world is evolving, we
need to act swiftly to
make changes within
the PLDT Group.
There are more joint projects with Rocket in the pipeline,
as well as those in the area of financial services being
developed by two of our subsidiaries, Voyager and Smart
e-Money, which are at the forefront of the PLDT Group’s
digital and e-commerce initiatives.
Even as Meralco continues to make investments to
improve operational efficiencies and service delivery to
its customers, it is also pursuing several projects in power
generation which are expected to provide future sources
of growth.
One other area in the digital space we are working on,
which we believe has huge potential, is in Big Data. The
data pool from our combined subscriber base of over
76 million is a rich source of insights that can be used to
connect businesses and consumers more efficiently and
effectively and ultimately influence transactions.
To enable such initiatives, we have been purposively
expanding our technical infrastructure and our pool of
skilled data specialists. Our subsidiary ePLDT has, for
example, been expanding its network of data centers.
It opened a new one via its subsidiary IP Data Converge
Data Services in Parañaque last December 2014. ePLDT
itself is building two more – one in Makati and another in
Clark. This will bring our total number of data centers to eight,
offering the largest capacity and the best quality services.
Such investments are enabling us to step up our game
in areas like the enterprise market. By offering services
enriched by data-driven intelligence, we shall enable
companies to change how they do businesses in ways that
better address their clients’ needs.
Expect more announcements from us in the coming
months. We are very excited about these digital initiatives
as we see how a local vertical has potential to be a global
horizontal business.
GAIN FROM SALE OF INVESTMENT
IN MERALCO
Through PLDT Communications and Energy Ventures, Inc.
(formerly Piltel), the PLDT Group continues to co-own Beacon,
together with Metro Pacific Investments Corp. (MPIC).
In 2014, Beacon sold 5% of its Meralco holdings to MPIC.
As a result of this transaction, PLDT recognized a Php1.7
billion gain which contributed to core earnings.
Beacon remains the largest shareholder of Meralco with an
interest of about 45%, with PLDT’s indirect ownership at 22.5%.
Meralco’s core earnings rose from Php17 billion in 2013 to
P18.1 billion in 2014, of which 80% were paid out as dividends.
OUR STRONG DEBT POSITION
PLDT maintained its healthy financial position in 2014.
Consolidated gross debt rose by US$0.6 billion to US$2.9
billion while net debt increased to US$2.3 billion. Net debt
to EBITDA rose to 1.3x from 0.9x at the end of 2014.
The higher level of debt reflects the Php15 billion fixed rate
bonds issued in February 2014, as well as the impact of the
€333 million investment in Rocket.
PLDT’s debt maturities continue to be well spread out with
over half of total debt due to mature beyond 2018.
PLDT’s credit ratings with Fitch, Moody’s and Standard and
Poor’s continue to be at investment grade.
2015: RESHAPING THE BUSINESS
Our primary focus for 2015 is to expand our data businesses
while maintaining the equilibrium of our core businesses and
managing the declines of our traditional services.
Parallel to this, however, we will continue to proactively
explore how we can make PLDT future-ready, including
leveraging content and multimedia, and expanding our
presence in adjacencies to PLDT’s access business,
particularly in the areas of e-commerce, mobile payments,
financial services and big data.
Reshaping PLDT into a multimedia and digital
communications group is complex and will not happen
overnight. It will involve not only financial investments, but
also changes in how we are organized, how we view things
and how we act together as a group.
At the pace the digital world is evolving, we need to act
swiftly to make changes within the PLDT Group even as
we manage the long-tail of our access business. This is a
delicate task, but one your PLDT team is fully committed
to take on.
NAPOLEON L. NAZARENO
President and Chief Executive Officer
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Valuing Relationships
The most valuable lessons in life are learned at
home. Even just sharing what a fun day one has had
can be an unforgettable experience in connectivity.
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THE PLDT GROUP
CORPORATE MILESTONES
In 2014, PLDT further strengthened its integrated
fixed and mobile networks to provide customers with
enriched experiences through innovative multimedia
and digital products and services.
MOST EXTENSIVE AND RESILIENT FIBER NETWORK
The PLDT Group continued to expand the reach, power and resilience of its fiber optic
infrastructure to maintain its market leadership by delivering high-speed data services in
more parts of the country.
The Group’s most powerful residential broadband
service, was expanded to 1,500 residential sites with
more than 80,000 subscribers in the country.
PLDT completed the Palawan-Iloilo domestic fiber
optic network (DFON) interconnection project and
the Bohol DFON expansion project.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS PLDT HOME DSL crossed the
one million-subscriber mark
and was cited in recent surveys
as the country’s strongest
broadband brand for homes.
Sun Cellular expanded its reach to
more areas in the country, including
Camarines Sur, Catanduanes, Mindoro
Islands, Romblon, Sorsogon, Apayao,
Ilocos Sur, Isabela, Cagayan, La Union,
Mountain Province, Capiz, Aklan,
Bohol, Southern Leyte, Bukidnon,
Agusan del Sur, Misamis Occidental,
Davao del Norte, Davao Oriental and
North Cotabato.
PLDT HOME Ultera is the country’s first fixed wireless
broadband service utilizing TD-LTE. The deployment of
this variant of the fourth-generation wireless technology
has enabled PLDT to offer high-speed internet service to
more homes and offices in greater number of areas of the
country faster than before.
IPC opened its new, high-capacity data center in
Parañaque City, boosting its ability to address the
fast-growing demand for data center services of
enterprises, large and small.
ePLDT obtained VITRO’s first certification for the ISO
20000-1:2011 IT Service Management System standard,
awarded by AJA Registrars. This certification applies to
VITRO’s Pasig, Subic and Cebu facilities.
Smart conducted successful trials of LTE-Advanced
mobile network technology in the cities of Davao, Makati
and Cebu, and the resort island of Boracay. Referred to
in some markets as 5G, LTE-Advanced delivers data from
100 megabits per second (Mbps) to 1 gigabit per second
(Gbps), or ten times faster than 3G services and more than
twice as fast as 4G-LTE services.
PLDT ALPHA Enterprise and
Smart Enterprise launched the
Philippine Internet of Everything
consortium in partnership
with industry leaders and
stakeholders.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS ENRICHED CONNECTIONS THROUGH DIGITAL
PRODUCTS AND SERVICES
The PLDT Group introduced various services and solutions that provide powerful connections
for individuals, communities and businesses.
PLDT SME Nation launched
its #TransformNow
campaign, which was geared
towards encouraging SMEs
to embrace technology and
future-proof their business.
Smart’s Free Internet offer was the big
news in 2014. Under this promotional
offer, which lasted from September
2014 to February 2015, active prepaid
subscribers of Smart, Sun Cellular, and Talk
‘N Text were allocated 30 MB of free data
per day, which they could use to browse
their favorite websites, access social
media accounts, send and receive emails,
stream music and shop online, among
others – all via their mobile phones.
Smart introduced a revitalized postpaid lineup that was
well-received and generated robust sales. Starting at
Php999 a month, users can choose from a range of
premium handsets that include the Sony Xperia M2
Aqua, the Samsung Galaxy A5, and the Sony Xperia
Z3. These new postpaid plans come with bigger volume
data allocations for their mobile internet needs and
music streaming on the go via Deezer.
Sun Cellular began offering
wearables through its light-on-
the-pocket Sun Plan499 and
Plan649. Through these plans,
Sun Cellular postpaid subscribers
can now get their hands on
various wearable devices that
come with a smartphone and
unlimited Sun Cellular call and
texts, texts to other networks,
mobile surfing and unlimited
music streaming through Spinnr.
PLDT HOME launched its Quad Core
Telpad which allows subscribers to
experience four times the processing
speed for use in playing interactive
Games, watching thousands of
movies and TV shows, and listening
to thousands of songs from Spinnr.
PLDT HOME Telpad also launched
its most affordable plan – Plan1499,
which accounted for 35% of all Telpad
connects since its launch in September.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS PLDT SME Nation, Smart
Enterprise and Sun Business
launched their integrated ICT
solutions for the growing
SME segment, ushering
in the convergence
of fixed and wireless
solutions that enhance
the competitiveness
and capabilities of
Philippine SMEs.
PLDT ALPHA Enterprise and Smart Enterprise launched
Smart M2M WorkForce, Smart M2M PowerForm and
Smart M2M Health: Mobile ECG and Remote Fetal Care.
The PLDT KaAsenso Cyberya
has proven to be more than
just an all-in-one internet café
accessible for any aspiring
minigosyante. It has also paved
the way for democratizing
internet access, especially for
the Filipino youth, by allowing
them to get into the web for
just one peso.
Voyager launched Takatack.com to the public, which
is the largest online marketplace that allows users
to shop for products and merchants from TackThis!,
Lazada, Zalora, CashCash Pinoy and others.
Voyager introduced MePay, the mobile payment
facility for the unconnected, unbanked, and uncarded,
which enables everyone to start shopping online even
without a credit card.
Voyager launched Talk2 to multiple countries. Talk2 is
a mobile application that allows customers to own a
Philippine number so that their loved ones can call and
text them at local rates.
SMI launched LockByMobile, an anti-
fraud solution, at the Mobile World
Congress in Barcelona, Spain.
ePLDT strengthened the PLDT Group’s Cloud leadership by
launching the Oracle Cloud Suite. It also launched Visual IVR+
Solution and offered Microsoft O365 and is cited by Microsoft
PH as Cloud Compete Partner of the Year
AGS launched SAP
B1 Cloud and ranked
second SAP B1 Reseller
in Southeast Asia.
IPC with its partner Nexusguard–the leading internet security
provider–launched the country’s first locally hosted Distributed
Denial of Service (DDoS) attack scrubbing center to provide
DDoS mitigation services to local enteprises.
IPC launched country’s first over-the-counter payment
for cloud services via DragonPay. Through DragonPay,
IPC’s customers on cloud.com.ph can enjoy convenience
and flexibility as it allows consumers to pay through
traditional payment establishments such as SM
Payments, Bayad Center branches and its partners, LBC,
and Western Union outlets, among others.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS INNOVATIVE SOLUTIONS TO REACH MORE FILIPINOS
BOTH HERE AND ABROAD
The PLDT Group made satellite phone services available to a broader market to
help address extraordinary communications requirements, particularly in times of
natural calamities. The Group also partnered with government financial institutions in
providing the unbanked access to financial services.
Smart launched SmartSAT
to serve the needs of groups
such as business, media,
military and the country’s
disaster and emergency
response agencies.
Smart offered the SatSleeve, a portable dock
that instantly transforms a smartphone into a
satellite phone. Smart also offered the XT, a
stand-alone satellite phone unit designed to
work in tough environments.
Smart Money disbursed the
Department of Social Welfare
and Development’s conditional
cash grants to close to 6,000
beneficiaries in Leyte and Samar.
In partnership with Land Bank of the Philippines,
Smart Money introduced the Mobile Loan Saver,
the country’s first fully electronic salary loan facility
to government employees.
Sun Cellular launched the Sun Todo IDD 200, a service
bundle that offers calls to the U.S., Brunei, Canada,
Guam, Hawaii and Northern Marianas, among others,
at a special rate of only Php1.50 per minute.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS PROVIDING TAILOR-FIT SOLUTIONS FOR BETTER
CUSTOMER EXPERIENCE
The PLDT Group introduced various solutions aimed at addressing the specific needs of customers.
The Smart Bro Dashboard, a one-stop portal, was offered for subscribers to manage their data accounts
by giving them convenient access to their Smart Bro number, current load package, latest data
packages Load Protect – shielding users from unwanted data charges.
Smart launched the PowerApp, a pioneering
mobile internet service that allows subscribers to
access the internet in affordable bundles.
Smart unveiled multimedia content services that are
enriching people’s lives. People can download publications
of Summit Publishing titles via the e-bookstore, Buqo; they
can watch a wide range of video content via Viewstream and
Blink; mobile phone users can enjoy online gaming e-Pins
via GameX; and access unlimited music streaming via the
Smart-developed music app, Spinnr.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS FORGING VARIOUS PARTNERSHIPS FOR NEW SERVICES
In 2014, PLDT forged partnerships with various organizations in order to bring innovative
new services to its customers.
PLDT formed a strategic partnership with Rocket – the
leading internet platform outside the U.S. and China – to set
up a global joint venture for payment services with a focus
on emerging markets. Rocket’s prominent brands include
Southeast Asian e-commerce businesses Zalora and Lazada
and fast growing brands such as Dafiti, Linio, Lumia, Namshi,
Jamoda, Jabong, Westwing, Home24 and HelloFresh.
Voyager signed a partnership agreement with Skyscanner
– the leading global travel search engine with unparalleled
regional and international coverage of travel options.
Sun Cellular partnered with
Easy Taxi through which
Sun subscribers can get
a chance to win exclusive
freebies, including a chance
to book the Sun Easy
Taxi car for free to any
destination in Manila.
Smart Money teamed up with Citi Philippines and VISA to
commercially launch Charge2Phone, the latest innovation
that is set to revolutionize digital payments, allowing Filipinos
to use their phones to pay for small purchases.
PLDT SME Nation
underscored its dedication
to aggressively and
continuously enable
SMEs when it renewed its
partnership with global
tech giant Samsung. The
partnership enhances PLDT’s
broadband offerings by
bundling Samsung’s latest
gadgets, equipment and
solutions.
Sun Cellular was tapped as the
connectivity partner of premiere local
and international beauty pageants
– Miss Teen Philippines, Miss World
Philippines, and the Miss Earth Pageant.
At the Miss World Philippines, Sun
Cellular was the first telco to launch a
text-voting service that enabled Sun
Cellular subscribers to vote for their
favorite candidates with just a few clicks
on their mobile phones.
PLDT SME Nation and
Go Negosyo came
together to host
the 3rd Filipino
Technopreneurship
Summit, which aimed
to ignite the Filipino’s
entrepreneurial spirit by
empowering them with
the use of technology.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS REAPING NUMEROUS AWARDS AND CITATIONS
PLDT harvested a fresh crop of awards and recognition in various fields like investor relations, CSR,
marketing and professional excellence.
FINANCE ASIA AWARDS
Best CEO #1 – Philippines – Napoleon L. Nazareno
Best Investor Relations #1 – Philippines
Best Corporate Social Responsibility #2 – Philippines
Most Committed to a Strong Dividend Policy #1 – Philippines
Best Managed Companies #2 – Philippines
Best Corporate Governance #2 – Philippines
5TH ASIAN CORPORATE DIRECTOR OF THE YEAR AWARD 2014
Asian Corporate Director Recognition Award – Manuel V. Pangilinan
10TH CORPORATE GOVERNANCE ASIA RECOGNITION AWARDS
Asia’s Icon on Corporate Governance
INSTITUTIONAL INVESTOR MAGAZINE’S 2014 ALL-ASIA
EXECUTIVE TEAM
Most Honored Companies in the Philippines
Best CEO #3 (buy side) – Napoleon L. Nazareno
Best Investor Relations Professional #3 (sell side) – Melissa V. Vergel de Dios
Best Investor Relations Program #2 (sell side)
4TH ANNUAL ALPHA SOUTHEAST ASIA’S INSTITUTIONAL INVESTOR
CORPORATE AWARDS
Most Consistent Dividend Policy
4TH ASIAN EXCELLENCE 2014
Best Investor Relations Company
Asia’s Best CEO – Napoleon L. Nazareno
2014 METRO ETHERNET FORUM (MEF) AWARDS
APAC Award for Ethernet Service Excellence – PLDT ALPHA Enterprise
49TH ANVIL AWARDS
Award of Excellence for Alpha Track Day – PLDT ALPHA Enterprise
Award of Merit for the 2014 PLDT Pasasalamat Night – PLDT ALPHA
Enterprise
Award of Merit for Hot Joe Volumes 12-15 – PLDT ALPHA Enterprise
ASIA COMMUNICATION AWARDS
Top Employer – Smart
Best Content Service – SPINNR
ASIA CEO AWARDS
Top Employer – Smart
ASEAN CORPORATE SUSTAINABILITY AWARDS
Green Merchandising – Smart
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS SCMAP SALUTE OF SUPPLY CHAIN EXCELLENCE AWARDS
Green Merchandising – Smart
16TH WORLD COMMUNICATION AWARDS
Social Contribution Award – help.ph (Smart eMoney)
Best Mobile Operator – Smart
2ND ANNUAL INTERNATIONAL MVNO INDUSTRY AWARDS
Most Innovative Mobile Virtual Network Operator (MVNO) – PLDT Global
CFO INNOVATION ASIA AWARDS
Excellence in Business Partnering – June Cheryl A. Cabal-Revilla
2014 BSP STAKEHOLDERS AWARD
Outstanding Respondent, Foreign Direct Investment Survey
HOME GUARANTY CORPORATION
Excellence Award in Housing Finance by a Building and Loan Association
– Tahanan Mutual Building and Loan Association (TMBLA)
BIZNEWSASIA
Financial Management Excellence Award – June Cheryl A. Cabal-Revilla
PHLIPPINE QUILL AWARDS 2014
Award of Excellence for PLDT 2013 Annual Report “Live Digital”
Award of Merit for Communication Management – PLDT HOME Ultera
READERS DIGEST TRUSTED BRANDS
Platinum Award as Internet Service Provider – PLDT HOME DSL
Gold Award for Phone Service Provider – PLDT HOME Telpad
ARAW VALUE AWARDS
Silver: Branded Communications Responsible Parenting Category
– PLDT HOME Telpad
Bronze: Branded Communications Responsible Parenting Category
– PLDT HOME DSL
BOOMERANG AWARDS
Black Boomerang – Outstanding Business Results Category
– PLDT HOME Bro
Silver – Campaigns Category for Technology and Telecommunications
– PLDT HOME Bro
Bronze – Effectivity in Lead Generation Category – PLDT HOME Bro
ADOBO CREATIVITY AWARDS
Advertiser of the Year – PLDT HOME DSL
Marketing Head of the Year – Margarito G. Dujali, Jr., PLDT HOME
TELECOMS.COM AWARDS
Best Operator OTT (Over-The-Top) Service Launch
– SmartNet
Recognition for Green Merchandising – Smart
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21
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Strengthening Bonds
Real friends stay connected at all times.
Distance and barriers cannot break their
friendship as long as their connections
are strong and sustained.
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Strengthening Bonds
THE PLDT GROUP
CORPORATE SOCIAL
RESPONSIBILITY REPORT
Serving the community is an integral part of
the PLDT Group’s mission to provide Filipinos
the strongest connections across the country
and throughout the world. With its extensive
integrated fixed and mobile network, the
PLDT Group is well-positioned to provide much
needed assistance to communities for disaster
preparedness and response, environmental
protection, quality education, improved
healthcare and livelihood opportunities.
SYSTEMATIC PREPARATION AND
RESPONSE TO DISASTERS
To optimize the use of mobile phones for disaster
preparedness, Smart launched in July 2014 a mobile
application that transforms smartphones into lifelines
during times of emergencies. Called Batingaw (warning
bell), this mobile app was developed in partnership with
the OCD-NDRRMC and a non-government organization
called Tudlo Innovation Solutions.
The mobile app provides government agencies,
organizations, and individuals timely access to disaster
alerts, weather advisories, location data and mapping
information. It also features step-by-step instructions
that guide users to safety during disasters. The app also
enables users to quickly send information to emergency
agencies. The same application, called PINDOT, was
customized for the disaster management requirements of
the Albay provincial government.
Smart and Digital Mobile Philippines, Inc. (which offers Sun
Cellular) launched #SafePH, an advocacy program for
disaster and emergency preparedness. The efforts under
#SafePH for Super Typhoon Yolanda in 2013 won the Best
Use of Mobile for Humanitarian Response at the GSMA
Global Mobile Awards in Barcelona, Spain in February 2014.
PLDT, THROUGH ITS CONTINUING
RELIEF OPERATIONS, AND SMART,
THROUGH ITS HANDY BATINGAW
RESOURCE AND REPORTING TOOL,
HAVE BEEN PROVIDING ABLE
ASSISTANCE TO THE GOVERNMENT
IN FIRMING UP IMMEDIATE
RESPONSE TO NATIONWIDE
DISASTERS AND EMERGENCIES.
Working with affiliated companies under the banner
of Tulong Kapatid, PLDT and Smart have continued to
participate in disaster relief operations, setting up Libreng
Tawag (Free Call) stations in disaster-struck communities,
delivering relief goods and providing medical and dental
services to people affected by calamities. In Cainta,
Rizal, one of the hardest-hit areas by Typhoon Mario in
September 2014, for example, PLDT Community Relations
(ComRel) distributed 800 blankets and 196 umbrellas to
996 families from four evacuation centers.
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23
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
CLASSROOMS
DONATED
28
20,000
TEACHERS GATHERED IN
MOA ARENA ORGANIZED
BY 2G
13,271
STUDENTS & TEACHERS
BENEFITTED FROM
PLDT INFOTEACH
OUTREACH PROGRAM
PROVIDING EDUCATIONAL OPPORTUNITIES
Education continued to be the major focus of the CSR
programs of PLDT and Smart.
2G, the teacher’s advocacy program of the MCI and the
PSF, granted over a thousand B.S. Education scholarships
as of 2014. So far, almost 400 beneficiaries have
graduated under this program, nearly 40% of whom
completed their studies with honors and distinction, with a
2G scholar ranking 1st in the 2014 Licensure Examination for
Teachers (LET) . 2G added five more schools to its roster of
partner schools and granted scholarships to Overseas Filipino
Workers (OFWs) in Hong Kong.
To help schools in communities hit by recent calamities,
2G donated 28 classrooms in Leyte, Bohol, and Capiz.
It conducted livelihood programs in Bohol and Leyte,
in partnership with the PLDT Employees Credit and
Cooperative Inc. (PECCI); and trained over 13,000 teachers
across the country, including some in Sabah, Malaysia. It
also staged a gathering of some 20,000 teachers at the
MOA Arena to give out awards and recognition.
Launched in 2004, PLDT’s Infoteach Outreach Program
has continued to empower public high school students
and teachers nationwide by upgrading their computer and
internet skills through hands-on training.
In 2014, over 4,500 students and teachers from 14
cities and municipalities in Luzon, Visayas and Mindanao
graduated from the Infoteach Computer Advanced Course,
conducted in partnership with the UPOU, DepEd, and
Technical Education and Skills Development Authority
(TESDA). To date, around 13,300 public high school
students and elementary and high school teachers have
benefitted from the Infoteach Outreach Program.
Complementing the training program is the PLDT myDSL
Broadband Quiz where top ranking student- and teacher-
graduates of the Infoteach Outreach Program compete
for substantial prizes for both contestants and their
respective schools.
PLDT, together with the UPOU, also provided scholarship
grants to teachers who topped the Infoteach course,
which enable them to enroll in the Diploma in Computer
Science Program offered online by UPOU.
Other educational programs and activities included PLDT’s
support for Kariton Klasrum’s project to help children in
areas hit by Super Typhoon Yolanda. Working in partnership
with Efren Peñaflorida’s Dynamic Teen Company, the
project enabled children to continue their education while
waiting for the rebuilding of proper classrooms.
In Arakan Valley, North Cotabato, PLDT partnered with
the Philippine Eagle Foundation in the rehabilitation of
the day care center and donation of school supplies to
Sitio Inamong, Datu Ladayon. PLDT also continued to
support DepEd’s Brigada Eskwela Project, a nationwide
public school beautification campaign undertaken before
the start of a schoolyear, when volunteers troop to public
schools and prepare them for the opening of classes by
cleaning, gardening, repairing, repainting, donating school
supplies, gardening materials and disaster kits.
Smart sustained its digital initiatives in mobile education
to help democratize access to quality education.
To support the DepEd’s program for out-of-school youth
(OSYs), Smart ran a project to digitize the course content
of the Bureau Alternative Learning System (BALS) and
packed them into a mobile app that can be downloaded
into tablets. In this way, the DepEd’s mobile teachers can
easily access all their course materials via the BALS mobile
app anytime, anywhere, whether they are online or offline.
Smart also conducted a trial program called the Smart
Virtual Extension Classroom (Smart VEC) for several
schools in remote islands of northern Cebu that lack
expert teachers in science, math and technology courses.
These schools were given access to online learning
materials in these disciplines that were developed by
Magsaysay Award winners Dr. Christopher Bernido and
Dr. Ma. Victoria Carpio-Bernido. Teachers used tablets
equipped with the TechRemote mobile app connected to
the web via wireless data links.
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24
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
FACULTY MEMBERS FROM VARIOUS
SCHOOLS LEARN THE BASICS OF MOBILE
APPS DEVELOPMENT UNDER SMART
SWEEPX MOBILE APPS DEVELOPMENT
TRAINING COURSE.
GRADE SCHOOL TEACHERS FROM CEBU
CITY’S PUBLIC SCHOOLS ARE EXPOSED TO
AN ARRAY OF MOBILE APPS THAT THEY CAN
USE TO HELP ENHANCE LEARNING OF THEIR
YOUNG STUDENTS DURING SMART’S ONE-
DAY WORKSHOP TAP&LEARN: TABLETS FOR
LEARNING.
2G CHAIRPERSON CABAL-REVILLA TAKES
TIME TO POSE WITH VOLUNTEERS AND
TEACHERS PRESENT DURING THE 2G GRAND
GATHERING EVENT.
In 2014, Smart started work on its Tablets for Education
program. It began with a workshop for teachers to study
the effectiveness of tablets as learning tools for students
of various education levels. Based on this and other
consultations, Smart is developing a program to deploy
tablets preloaded with learning materials for use by
teachers and students.
Smart also launched SWEEPx: Mobile Apps Development,
a five-day training course for teachers. SWEEPx aims to
give college teachers with prior knowledge of Java and
Object Oriented Programming the capability to create
apps on Android devices.
To help more people learn how to create mobile
applications, Smart developed a free online course on
how to write Android apps in cooperation with the UPOU.
About 700 people signed up for the course during its
trial run from July to October 2014, the country’s first
Massive Open Online Course (MOOC). Smart and UPOU
are revising the Android course based on the experience
gained in its first run. They will also offer online courses of
technopreneurship and iOS apps development.
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25
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
LIVING HEALTHY AND HAPPY
Dugong PLDT, the bloodletting program conducted by
PLDT in partnership with the Philippine Children’s Medical
Center (PCMC), Philippine National Red Cross (PNRC) and
the Department of Health (DOH)-Region 7 Blood Center,
mobilized PLDT employees to donate blood for people
in need. More than 1,500 employees from Metro Manila
and the Visayas donated their blood in 2014. Beneficiaries
included indigent cancer patients at the PCMC and about
50 PLDT and Smart employees and their relatives from
Cebu and Iloilo.
The PLDT medical and dental mission programs, dubbed
as PiLa na, may Doktor Tayo, continued to offer free
medical and dental services to victims of calamities and
the underprivileged from rural areas and tribal minorities.
In 2014, a total of 1,005 patients were treated during the
medical and dental missions in Dumangas, Iloilo.
PLDT HAS BEEN CONDUCTING BLOODLETTING
SESSIONS WITH EMPLOYEE-VOLUNTEERS IN
PARTNERSHIP WITH PCMC, PNRC & DOH, FOR
VARIOUS BENEFICIARIES.
MORE THAN
1,500
EMPLOYEES
DONATED THEIR
BLOOD
1,005
PATIENTS TREATED ON
MEDICAL & DENTAL
MISSION
In 2014, Smart developed a new open-sourced version
of its electronic medical records (EMR) platform called
SHINE, in partnership with the Ateneo Java Wireless
Competency Center. SHINE is the acronym for the
Secured Health Information Network and Exchange which
was originally developed as a cloud-based proprietary
software solution in 2011. Initially deployed in Iloilo City,
SHINE enables government hospitals and health clinics
to create electronic medical records for its patients, make
electronic referrals to other health facilities, generate
reports and send SMS reminders to patients. It has won
several awards here and abroad. Now an open-sourced
platform, SHINE OS+ offers more opportunities for creating
new applications that will benefit patients and make the
operations of health facilities more efficient and effective.
ENABLING COMMUNITIES WITH EARTH-
FRIENDLY LIVELIHOOD PROJECTS
To complement its reforestation activities in the
Watershed Forest Reserve of Infanta and Real, Quezon
Province, PLDT helped build a fish nursery, providing fish
fry stocks to the Samahan ng Magbubukid at Mangingisda
sa Barangay Cawayan for its Pangasius Production
project. The locals who used to cut trees have become the
vanguards of the environment. They were tapped by PLDT
to produce seedlings and nurture them for the duration of
the rehabilitation program. They also served as guides for
PLDT employee-volunteers.
Other PLDT livelihood projects included the donation
of fishnets and a fishing boat to the Nagkakaisang
Mamalakaya ni Apung Iru, a fisher folks organization, in
Apalit, Pampanga; agroforestry support to the Manobo
communities in Arakan Valley, North Cotabato; and
assistance to the Weekend Bazaar of General Santos City
for the promotion of tourism and business opportunities
for SMEs.
Smart collaborated with the Bureau of Fisheries and
Aquatic Resources (BFAR), the Philippine National
Police Maritime Group (PNP-MG), and the U.S. Agency
for International Development (USAID) to launch a text
hotline that enables concerned citizens to report maritime
violations quickly and easily. The 700DALOY (Dedicated
Alert Lines for Ocean Biodiversity) hotline, which runs on
Smart’s web-based SMS platform, was piloted in Tawi-Tawi
and will eventually be launched in other parts of the country.
This is part of the Ecosystems Improved for Sustainable
Fisheries (Ecofish) project of BFAR and USAID, which seeks
to promote an ecosystem-based fisheries management
where fishing vessel registration is also essential.
PLDT 2014 AR_042815_NEW.indd 26
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26
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
SMART ORGANIZES EXHIBITS FOR BANGLOS
SCULPTORS OF QUEZON.
PLDT CHAIRMAN PANGILINAN AND PRESIDENT
AND CEO NAZARENO ARE IN THE FOREFRONT IN
TURNING OVER FISHNETS TO FISHERFOLKS OF APALIT,
PAMPANGA.
HECTARES
OF FOREST
& TREES
NURTURED
13
81,936
SEEDLINGS PLANTED
A series of driftwood sculpture exhibits held in Makati
and Alabang were organized by Smart in 2014. The
art pieces were created by the Banglos sculptors of
Quezon, Super Typhoon Yolanda survivors from Capiz
and Palawan, and the natives from South Sierra Madre
– residents of communities displaced by destructive
typhoons. The proceeds of the exhibits were used to expand
the sculpture training of the communities under Smart’s
livelihood program and to purchase tools and equipment for
production.
CARING FOR THE ENVIRONMENT
In partnership with the PBSP and Motolite, PLDT donated
used lead-acid batteries (ULABs) for proper recycling
under the Balik Baterya program. Funds generated
from this project were used by PLDT to support its CSR
programs. Among these projects were PLDT’s donation
of six classrooms to various areas in the country, such
as Northern Samar, Sorsogon and Camarines Sur, and
establishment of 12 reading corners in La Union and Cebu.
PLDT continued to nurture 13 hectares of forest and
fruit-bearing trees in the Marikina Watershed, particularly
those located in the Montalban-Wawa Subwatersheds. At
the Infanta-Real Quezon Watershed, PLDT planted 81,936
seedlings in 2014 for its TELEpuno tree planting project
which benefited four farmers organizations in Infanta and
Real, Quezon.
Together with the Philippine Eagle Foundation, PLDT has
supported the Forest Corridor Development Program that
entails the adoption of a captive Philippine eagle (renamed
MVP), the PLDT reforestation project and conservation
incentives for partner-communities.
PLDT and Smart also participated in environmental
awareness and conservation programs such as the
2014 Earth Day Run and Shore It Up: Rescue, Restore,
Revive organized by MPIC where major activities included
environmental stewardship talks, tree planting, coastal
and underwater clean-up, and artificial reef placement.
AT THE WATERSHED FOREST RESERVE IN INFANTA-
REAL QUEZON, PLDT COMMUNITY RELATIONS AND
ITS EMPLOYEE-VOLUNTEERS ARE HARD AT WORK IN
PLANTING SEEDLINGS.
27
PLDT 2014 AR_042815_NEW.indd 27
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
Fortifying Partnerships
Even a seemingly uneventful moment
like sharing a secret can be the most
memorable event of the day. It’s all about
sharing. And connecting.
PLDT 2014 AR_042815_NEW.indd 28
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THE PLDT GROUP
CORPORATE
GOVERNANCE REPORT
PLDT remains committed to its core values of
accountability, integrity, fairness and transparency
and maintains the highest standards of corporate
governance. This commitment is anchored on the
steadfast belief that responsible business conduct and
a corporate culture founded on the right values are
indispensable in doing business. As the Company faced
various challenges in 2014, we leaned on our values and
strengthened our governance practices and processes,
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.
As a publicly listed company, PLDT adopts the corporate
governance rules and regulations of the Philippine
Securities and Exchange Commission (PSEC) and the
Philippine Stock Exchange (PSE). PLDT also complies with
the corporate governance standards of the US, since its
American Depositary Shares are listed and traded in the
New York Stock Exchange (NYSE). Finally, as an associated
company of First Pacific Co. Ltd. (First Pacific), 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.
These very high standards of corporate governance
underscore the Company’s continuing commitment
to excellence in performance as it strives to fulfil its
obligations to all its stakeholders.
BOARD OF DIRECTORS
The responsibility of ensuring good corporate governance
belongs, first and foremost, to our Board of Directors.
This responsibility is a critical component in the mission of
securing and promoting the long-term success and serve
the sustained competitiveness of the Company.
Guidance in accomplishing the two-fold objective of
good governance and outstanding performance is
provided by our CG Manual which sets the structures for
governance and allocates responsibility and authority to
the various offices and bodies in the Company. For the
Board, the CG Manual mandates that it shall: 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
its 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 benefit of the Company’s
stockholders and other stakeholders.
Structure and Composition
Our Board is composed of 13 qualified 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 qualifications and
grounds for disqualification 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. Each member of our Board
is either a business owner or leader, and/or holds senior
management positions. Each Director has extensive
experience in their respective fields or industries,
such as telecommunications, ICT, infrastructure,
power, petroleum, banking, insurance, real property
development, agriculture, food manufacturing and quick-
serve restaurant business. The individuals comprising the
Board count on each other in the performance of the
Board’s functions, including the formulation of corporate
vision and strategies, assessment of enterprise risks, and
adequacy and effectiveness of financial reporting and
internal control systems.
PLDT 2014 AR_042815_NEW.indd 29
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29
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Retired Chief Justice Artemio V. Panganiban are currently
serving in our Board. All of these independent directors
were selected pursuant to the specific independence
criteria set out under applicable laws and rules, our
By-Laws 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.”2 Our independent directors
are subject to an initial term limit of five years. After
completion of five consecutive or cumulative 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 five more consecutive
or cumulative 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.
In 2014, there were only three directors who held executive
positions in the Company: Mr. Napoleon L. Nazareno as
President and Chief Executive Officer (CEO), Atty. Ma.
Lourdes C. Rausa-Chan as Corporate Secretary, General
Counsel and Chief Governance Officer and Atty. Ray C.
Espinosa, who remains a consultant and serves as Head
of PLDT Regulatory Affairs and Policies Office following his
retirement from the Company in February 2014.
The position of Chairman of the Board is separate from
that of the 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 influence. These two
individuals are unrelated.
Except for our executive directors, our directors do not
receive stock options, performance incentives, bonuses
or any other form of compensation from the Company.
However, all of our directors are entitled to a per diem
of Php250 thousand for attendance in each Board
meeting and Php125 thousand for attendance in each
Board Committee meeting.
In keeping with the objective of promoting diversity in
our Board, our CG Manual does not impose limitations
or restrictions respecting race or gender in reference
to the qualifications of our directors. With regard to
directorships of individual directors in other stock
or non-stock corporations, our Board adheres to a
performance-based standard in determining whether
other directorships compromise the capacity of a director
to serve or perform his/her duties and responsibilities
to the Company diligently and efficiently. In this way,
differences in individual capabilities and the nature and
demands of directorships in other companies are given
due consideration in determining fitness and capacity
to serve in our Board, rather than imposing a strict
quantitative limit on other directorships. Independent
directors, however, may not be elected, as such, to more
than five listed or public companies comprising the PLDT
conglomerate (i.e. its parent company, subsidiaries
or affiliates). Our Board, through the Governance and
Nomination Committee (GNC), ensures the diversity of its
membership and the selection of competent and capable
Board members using the Company’s Guidelines on the
Search, Screening and Selection of Directors and related
Screening Checklist which contains, among others, the
criteria and qualifications for directorship and a matrix
on the skills, expertise and experience relevant to the
responsibilities of the Board.
Our CG Manual requires that at least 20% of the membership
of the Board, and in no case less than two members thereof
must be independent directors1 . Three independent directors
in the persons of Mr. Pedro E. Roxas, Mr. Alfred V. Ty and
1 This is substantially the same requirement in the PSEC’s Revised Code of Corporate Governance (MC No. 6 Series of 2009).
2 More specific independence criteria are enumerated in Annex A of our CG Manual.
PLDT 2014 AR_042815_NEW.indd 30
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30
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS 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 Officer, Corporate Secretary and Chief
Governance Officer give a newly appointed director a
briefing on the Company’s structure, business, operating
and financial 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 (U.S. SEC), and
NYSE, and new laws applicable or relevant to the Company
and its business, particularly on financial 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 have attended several of the nine
corporate governance enhancement sessions organized
since 2007. In 2014, two sets of Enhancement Sessions
were organized and conducted for our Board. These two
Enhancement Sessions were approved by the PSEC as
In-House Corporate Governance Training Programs within
the scope of PSEC Memorandum Circular No. 13, Series of
2013 (MC 13). All of our directors have complied with the
required corporate governance training for the year 2014
under MC 13.
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, more or less, on a monthly basis in
accordance with the schedule of meetings that our Board
sets 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). Our
Board reviews the Company’s Vision and Mission together
with senior management. Once every quarter, our Board
reviews the quarterly financial reports. Periodic reviews of the
reports of Board Committees, business operations updates
from the heads of our business segments and network and
technology strategic plans are likewise performed.
The Board undertakes to respect, uphold and facilitate
the exercise of the stockholders’ rights such as: the 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 the Company is required to
disclose 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. Appropriate steps to remove excessive or
unnecessary costs and other administrative impediments
to stockholders’ participation in annual or special
stockholders’ meetings, whether in person or by proxy,
are undertaken. Relevant and timely information is made
available to the stockholders in printed or digital form
and through the Company’s website to enable them to
make a sound judgment on all matters tabled for their
consideration or approval3. The Board also ensures the
timely disclosure and appropriate filing with the PSEC,
PSE and, as applicable, U.S. 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.
3 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.
31
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Our Board looks to ensure the continuity of executive
leadership as a critical factor in sustaining the success
of the PLDT Group. PLDT’s Leadership Succession
Planning and Development process continued in 2014.
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 Board also leads the Company’s CSR initiatives.
Through the Board, the Company’s resources and
expertise are harnessed to respond to pressing societal
and developmental issues. PLDT, by itself or through the
PSF, has continuing projects in the areas of environment,
education, and disaster response and rehabilitation.
PLDT also continues to leverage on its business expertise
to develop and implement innovative projects in nation-
building, health, community and livelihood development, and
youth development and sports.
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 13 meetings in 2014. The Chairman of the
Board, the President and CEO, and seven other directors
attended all Board meetings. Our three independent
directors were present in all the meetings. In each meeting
at least two-thirds of the Board members was present and
all matters for approval in each meeting were acted upon
based on the votes of at least two-thirds of the Board
membership. Our non-executive directors held a meeting
among themselves without the executive directors on
November 4, 2014.
All of the directors were present in the Annual
Stockholders’ Meeting held on June 10, 2014 and
consequently, the respective Chairmen of the AC, ECC,
and GNC were present as well. All of the directors attended
more than 75% of the meetings. The total amount of per
diem provided to the directors for their attendance in
Board meetings in 2014 was Php34 million4.
4 Only one per diem was given to directors for the three meetings held on June 10, 2014.
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.
28
Mar.
4
Apr.
1
May
6
Jun.
10**
Jun.
10**
Jun.
10**
July
8
Aug.
5
Sept.
30
Nov.
4
Dec.
2
Dec.
10
Total
Percentage
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13/13
13/13
11/13
12/13
13/13
13/13
11/13
13/13
13/13
13/13
13/13
11/13
13/13
100%
100%
85%
92%
100%
100%
85%
100%
100%
100%
100%
85%
100%
* Independent director
* * Three meetings were conducted on June 10, 2014, a regular Board meeting, the annual stockholders’ meeting and the organizational meeting of the Board
PLDT 2014 AR_042815_NEW.indd 32
4/30/15 5:37 PM
32
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS 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. Members of the Advisory Committee attend
Board meetings and provide guidance and suggestions,
as necessary, on matters deliberated upon during Board
meetings. The total per diem given to the members of the
Advisory Committee for their attendance in Board meetings
in 2014 was Php15.5 million.
Name of Director
Jan.
28
Mar.
4
Apr.
1
May
6
Jun.
10*
Jun.
10*
Jun.
10*
July
8
Aug.
5
Sept.
30
Nov.
4
Dec.
2
Dec.
10
Total
Percentage
Oscar S. Reyes
Roberto R. Romulo
Benny S. Santoso
Washington Z. SyCip
Orlando B. Vea
Christopher H. Young
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13/13
12/13
10/13
11/13
13/13
13/13
100%
92%
77%
85%
100%
100%
* Three meetings were conducted on June 10, 2014, a regular Board meeting, the annual stockholders’ meeting and the organizational meeting of the Board
PLDT’s other Board Committees, namely the Audit
Committee (AC), the GNC, the ECC, and the Technology
Strategy Committee (TSC), function in accordance with
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 officer, 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 financial reporting principles
and policies, and system of internal controls, as well as
the integrity of the Company’s financial 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
qualifications and independence).
The AC has clear oversight responsibilities and powers
over the following areas:
• external auditors;
• internal auditors;
• financial reporting principles and policies and system of
internal control;
• enterprise risks; and
• legal and regulatory compliance.
PLDT 2014 AR_042815_NEW.indd 33
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33
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS The AC is composed of three independent directors as
voting members, and four non-voting advisors. Each
member is financially literate and one of the advisors is
a certified public accountant with financial 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’s activities for 2014 consisted of the following:
With respect to the external auditor SyCip, Gorres,
Velayo & Co. (SGV & Co.), a member practice of Ernst &
Young Global Ltd. (E&Y), the AC discussed, reviewed and
approved, or noted:
• SGV & Co.’s report on the results of their integrated
audit of PLDT’s and its subsidiaries’ 2013 financial
statements prepared in accordance with the Philippine
Financial Reporting Standards (PFRS) and International
Financial Reporting Standards (IFRS), and of the
internal controls over financial reporting (ICFR);
• SGV & Co.’s required communications (to the AC)
including their independence from PLDT, within the
meaning of the Revised Securities Act of the PSEC and
the US SEC;
• The summary of audit, audit-related and non-audit
services and fees of SGV & Co. and E&Y that were
approved by the AC in 2013;
• The non-audit engagements for PLDT and its
subsidiaries in 2014;
• SGV & Co.’s integrated plan for the audit of PLDT’s and
its subsidiaries’ 2014 financial statements and review of
ICFR; and
• SGV & Co.’s status report on the integrated audit of
2014 financial statements and ICFR.
As regards the internal audit group, the AC discussed,
reviewed and approved, or noted:
• The Internal Audit and Fraud Risk Management Group
(IAFRMG)’s performance report for the year 2013, IAFRMG
Head’s statement of compliance with the International
Standards for the Professional Practice of Internal
Auditing, and required confirmation of the organizational
independence of PLDT Internal Audit organization;
• The retention of the existing PLDT Internal Audit
Charter until the next review in 2015;
• PLDT’s Internal Audit Plan for 2014 (original and
updated), and for 2015;
• Internal Audit’s report on PLDT Group’s Sarbanes-Oxley
– Section 404 (SOX 404) Compliance – Management’s
Overall Assessment and Conclusions as of December 31,
2013, the PLDT Group’s SOX 404 compliance approach
for 2014, and periodic status reports from Internal
Audit on the PLDT Group’s SOX 404 readiness and
compliance as of year-end 2013 and as of year-end 2014;
• PLDT’s transition to Committee of Sponsoring
Organizations of the Treadway Commission (COSO)’s
2013 Updated Internal Control – Integrated Framework
(COSO IC-IF 2013); and
• The major IAFRMG activities and accomplishments,
including the internal audit organizational updates.
Relative to financial reporting and controls, the AC:
• Approved the reissued Consolidated Financial
Statements of PLDT as of December 31, 2012,
December 31, 2011, and January 1, 2011 and for each
of the three years in the period ended December 31,
2012, 2011 and 2010 after effecting the new accounting
standards that became effective January 1, 2013,
exclusively for the purpose of inclusion in the planned
retail bond offering circular;
• Reviewed with PLDT Finance officers and SGV & Co. and
approved PLDT’s audited financial statements for 2013
prepared in accordance with PFRS and IFRS and the
report of SGV & Co. on the final results of its integrated
audit of 2013 PFRS and IFRS financial statements and
ICFR and the PLDT Group’s 2013 Annual Report on Form
17-A (for PSEC filing) and on Form 20-F (for US SEC filing);
• Reviewed with the Finance officers and approved PLDT’s
unaudited consolidated financial results and reports for
the three months ended March 31, 2014, the six months
ended June 30, 2014, and the nine months ended
September 30, 2014; and
• Discussed with Finance officers and the General
Counsel comments from the U.S. SEC regarding PLDT’s
Form 20-F and PLDT’s draft response thereto.
With regard to governance, general internal controls and
risk management, the AC:
PLDT 2014 AR_042815_NEW.indd 34
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34
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS • Conducted the self-evaluation of the PLDT Audit
Committee’s performance for the year 2013 and
also went through an orientation on US laws that are
relevant to the Audit Committee function.
• Reviewed and discussed with the Corporate Secretary,
General Counsel and Chief Governance Officer the
Information Statement/ Proxy Form, and the status of
Company’s compliance with regulations and applicable
laws, and updates on significant legal matters and
the Expanded Whistleblowing Status Reports on
whistleblower complaints; and
• Reviewed and noted the Group Enterprise Risk
Management (ERM) Officer’s update reports on PLDT
Group’s enterprise risk management activities and
discussed with the Group ERM Officer the PLDT
Group’s Top 10 Risks for 2014, and the results of
Internal Audit’s Group-wide Review of Enterprise Risk
Management Process.
The AC also conducted discussions with the PLDT business
and operational unit heads regarding global Information
Technology (IT) security events in 2013 and 2014 and
the PLDT Group IT’s measures to address these threats,
PLDT’s customer experience concerns, relevant tax rulings
and updates on regulatory matters, Finally, the AC issued
periodic written reports to the Audit Committee of First
Pacific Co. Ltd. (FPC) regarding significant items discussed
during the PLDT Audit Committee meetings held in 2014.
The AC had eight regular meetings and two special meetings
for the year 2014. Members of the AC are each entitled to
a per diem of Php125 thousand for every meeting attended
and a total of Php7.5 million was paid as per diem to its
members and advisors who attended the meetings.
Members
Jan.
28
Mar.
3
Apr.
1
Apr.
11**
May
5
Aug.
4
Sept.
30
Oct.
17**
Nov.
3
Dec.
1
Pedro E. Roxas*
Artemio V. Panganiban*
Alfred V. Ty*
Non-Voting Members
Corazon S. Dela Paz-Bernardo
Roberto R. Romulo
James L. Go
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Setsuya Kimura***
* Independent Director
** Special meetings of the AC
*** Attended the special meeting on October 17, 2014 as an observer only.
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Total
10/10
10/10
9/10
8/8
7/8
8/8
8 /8
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 qualifications
of independent directors; preparing a recommendation to
the Board on the final list of qualified nominee directors
and independent directors; recommending qualified
directors or independent directors in case of a vacancy;
recommending qualified persons as members of Board
Committees; and evaluating qualifications of persons
nominated for Board-appointed positions.
The GNC is composed of five 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 Officer 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/
Executive%20Compensation%20Committee%20Charter.pdf
PLDT 2014 AR_042815_NEW.indd 35
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35
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS In the performance of its governance function, the GNC’s
activities in 2014 included the following:
• Reviewed and assessed the Code of Business Conduct
and Ethics and Conflict of Interest Policy, and
determined that the principles, values and procedures
embodied therein remain sound and continue to
be appropriate for the Company and hence, do not
require any amendment or revision. The GNC, however,
approved recommendations to strengthen their
implementation, including the continuing education and
training sessions, monitoring of the implementation of
CG policies, thorough and comprehensive investigation
of whistleblower complaints, and adoption of enabling
policies to address identified risk areas;
• Reviewed and approved the content for the corporate
governance training and continuing education
program, including the Corporate Governance
Enhancement Sessions for the Board of Directors
and senior and middle management, and approved
the theme “Good Governance Means Good Business”
and related creative concepts for the 2015 CG
communication materials;
• Reviewed and noted the results of the PLDT
Governance and Ethics Survey, including some
revisions that were undertaken, such as the addition of
new questions/items, updates on the development of
the Online Periodic Conflict of Interest (COI) Disclosure
System and COI Disclosures of key personnel, and
the inclusion of the periodic renewal of the Pledge to
Uphold Good Corporate Governance (CG Pledge) in the
Online COI Disclosure System;
• Assisted the Board in implementing the Board
Assessment for 2013 performance, which included the
performance evaluation of the Board Committees and
Individual Directors; and
• Reviewed and approved or noted the development
and implementation of the Periodic Disclosure of Gifts,
Entertainment and Sponsored Travel pursuant to the
Policy on Gifts, Entertainment and Sponsored Travel,
the development of an Online Gifts Policy Disclosure
System, the Expanded Whistleblowing cases and
how these were handled, including those of the PLDT
subsidiaries, Corporate Governance Report, the PSE
Corporate Governance Disclosure Report for year 2013
as well as the Company’s compliance reports to various
CG Reports/Scorecards/Awards, such as the PSEC
Corporate Governance Guidelines Disclosure and the
ASEAN CG Scorecard.
In the performance of its nomination functions, the GNC’s
activities in 2014 included the following:
• Pre-screened nominees for directors and independent
directors, and submitted to the Board the final list
of qualified nominees for director and independent
director for election at the Annual Stockholders’
Meeting held on June 10, 2014;
• Reviewed and confirmed HR’s evaluation of the
qualifications of officers and recommended their
re-appointment as such at the Board’s Organizational
Meeting held on June 10, 2014; and
• Reviewed and confirmed HR’s evaluation of proposed
promotions to officer rank for approval by the Board.
Finally, the GNC submitted the following reports to the
Board: (a) Consolidated Report on the 2013 Board and
Board Committees Assessment; (b) GNC Annual Report
of Activities for 2013; and (c) GNC Self-Assessment for
2013 Performance.
The GNC held three meetings in 2014 and a total of
Php2.375 million was paid as per diem to its members who
attended the meetings.
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
* Independent Director
Mar.
28
July
30
Nov.
5
Total
√
√
√
√
√
√
√
√
√
√
x
√
√
√
√
√
√
x
√
√
√
3/3
3/3
3/3
1/3
3/3
3/3
3/3
PLDT 2014 AR_042815_NEW.indd 36
4/30/15 5:37 PM
36
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS 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 officers and executives; and assist the Board in
the performance evaluation of and succession planning
for officers, including the CEO, and in overseeing the
development and implementation of professional
development programs for officers.
The ECC is composed of five 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%20Committee%20Charter.pdf
In 2014, the ECC discussed and approved the payout of
the 2013 Variable Pay for Officers and Executives, the
2014 Variable Pay Targets and the corresponding Variable
Pay payout levels, the proposed new salary structure for
Officers and Executives as recommended by Management
retroactive to January 1, 2014; and the 2014 Merit
Increase for Officers and Executives. It also reviewed the
compensation structure and levels for Board members
and endorsed the proposed new Board meeting fee or
per diem of Php250 thousand per meeting and Board
Committee meeting fee or per diem of Php125 thousand
per meeting to the Board for approval.
The ECC held three meetings in 2014 and a total of
Php2.125 million was paid as per diem to its members who
attended the said meetings.
Members
Manuel V. Pangilinan
Artemio V. Panganiban*
Pedro E. Roxas*
Alfred V. Ty*
Setsuya Kimura
Menardo G. Jimenez, Jr.
(non-voting member)
* Independent Director
Mar.
3
July
29
Sept.
29
Total
√
√
√
x
√
√
√
√
√
√
√
√
√
√
√
√
√
√
3/3
3/3
3/3
2/3
3/3
3/3
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; fulfill 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 of its members must have
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%20Committee%20Charter.pdf
In 2014, the TSC discussed the Current State of the
Network, Improving Quality of Experience, the Network
and Technology Roadmap, Platforms and Service
Capabilities, the Status and Business Impact of Major
Capital Expenditures Programs in 2014, the Technology
Programs and Estimated Capital Expenditures for 2015,
the Intelligent Network, and Service Delivery Platforms.
Among the items presented and discussed were
operations initiatives to improve Customer Experience
on availability and quality of service, management of
operational expenses, and strengthening the network in
preparation for extreme weather conditions and in the
midst of climate change.
The TSC had three meetings in 2014 and a total of
Php2.425 million was given as per diem to its members
who attended the meetings.
Members
Manuel V. Pangilinan
Napoleon L. Nazareno
Ray C. Espinosa
Setsuya Kimura
James L. Go
Oscar S. Reyes
Orlando B. Vea
Aug.
6
Sept.
23
Nov.
25
Total
√
√
√
√
√
√
√
√
√
√
√
√
√
√
x
√
√
√
√
√
√
2/3
3/3
3/3
3/3
3/3
3/3
3/3
PLDT 2014 AR_042815_NEW.indd 37
4/30/15 5:37 PM
37
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS 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 offices and posts
involved in ensuring implementation of the corporate
governance policies and requirements are discussed below.
President and Chief Executive Officer
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, financial
and internal controls are adequate and effective to
ensure reliability and integrity of financial and operational
information, effectiveness and efficiency 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, financial 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 official 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 justifiable 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 Officer 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 identified managed, and/or
reported;
2. Significant financial, 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 efficiently
and adequately protected;
5. Programs, plans and objectives are achieved;
6. Quality and continuous improvement are fostered in
our control processes; and
7. Significant legislative or regulatory issues impacting us
are recognized and addressed appropriately.
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 Officer/
Internal Audit Head, who reports functionally to the AC
and administratively to the President and CEO. The Chief
Audit Officer 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 significant 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 sufficiency 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 qualifications, performance and
independence. To ensure objectivity in the performance
of its duties, the lead engagement partner of the external
auditor is subject to the rules on rotation and change
every five 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 conflict with
its role as an independent auditor or would compromise
its objectivity or independence as such. As mentioned
earlier, our external auditor is SGV & Co., a member
practice of E&Y.
Enterprise Risk Management
Also working in coordination with our internal audit
organization and AC is the PLDT Group 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
PLDT 2014 AR_042815_NEW.indd 38
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38
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
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 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 Officer
Our corporate governance compliance system
established in the CG Manual includes the designation
by the Board of a Chief Governance Officer who
reports to the Chairman of the Board and the GNC. The
primary responsibilities of the Chief Governance Officer
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 Officer 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 Office
PLDT’s corporate governance initiatives comprise three
stages: compliance, competence and eventually, culture.
It is the responsibility of the Corporate Governance Office,
through the supervision and direction provided by the
Chief Governance Officer to ensure progress through
these three stages by attending to the three task areas
of engineering, education and enforcement. Hence,
the CGO is responsible for the continuing development,
drafting, issuance and review of appropriate corporate
governance policies, addressing reports received through
the whistleblowing facility, responding to 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 observance of corporate governance
policies and adherence to our core values.
All of the offices and bodies described above have
been given the appropriate authority and responsibility
through the PLDT CG Manual. The chart below shows the
operational relationships between or among these offices
and bodies.
To access our CG Manual, please click on the link below:
http://pldt.com/docs/default-source/policies
/22336f71c88c495793d15575
c2addffcpldtcorpgov_manual.pdf?sfvrsn=2.
Shareholders
Election
Report
Accountability
Board of Directors
Report
External
Auditor
Appointment
Report
Appointment
Committee Charter
Designation
Report
Assurance
Appointment
Board Committees
Audit
Committee
Executive
Compensation
Committee
Technology
Strategy
Committee
Governance
& Nomination
Committee
Oversight
Guidance
Report
Report
Oversight
Guidance
Information
Internal
Audit
ERM
Department
Oversight
Guidance
Report
Corporate
Governance
Office
Audit
Report
Guidance
Guidance
Oversight
Annual Audit
CEO
Management
39
Appointment
Oversight
Report
Accountability
PLDT 2014 AR_042815_NEW.indd 39
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS POLICIES AND PRACTICES
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 and calls on everyone in the Company to live
out and observe the values of accountability, integrity,
fairness and transparency in order to promote and
establish a culture of good corporate governance. It
provides standards that govern and guide all business
relationships of PLDT, its directors, officers 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 conflicts of interest, corporate
opportunities and confidential information;
• Protection and proper use of Company assets;
• Fair dealing with employees, customers, service
providers, suppliers, creditors and competitors;
• Compliance with reporting and disclosure obligations
to the relevant regulators and to investors;
• Compliance with disclosure and financial 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 specific guidelines that
complement the Code of Ethics.
Conflict of Interest 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 find themselves in a possible conflict 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 conflict of interest.
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40
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS In 2014, PLDT launched an automated system for
periodic Conflict of Interest Disclosures which now allows
all officers, executives and employees to make on-line
disclosures regarding potential or actual conflicts of
interest or expressly affirm that they have no updates
to their conflict of interest disclosures. The system will
facilitate the approval and monitoring of disclosures from
all PLDT personnel.
PLDT continues to be guided by 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). RPTs 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 ratification. The Head of Financial
Reporting and Controllership Sector, in coordination with
the Company’s Disclosure Committee, shall be responsible
for the disclosure of RPTs in the relevant financial reports
of the Company as required under Philippine Accounting
Standard 24, Related Party Disclosures, and other
applicable disclosure requirements.
Policy on Gifts, Entertainment and Sponsored Travel
This policy provides safeguards so that the custom of
giving gifts is handled in accordance with our core values.
It aims to prevent the occurrence of situations or actions
that could significantly affect objective, independent or
effective performance by directors, officers, employees
and consultants of their duties and responsibilities to the
Company. Specifically, 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. In
connection with this, PLDT strengthened its monitoring
of gifts, entertainment and travel in 2014 by requiring
all personnel to submit to their Group Heads, periodic
disclosures of offers and/or acceptance of such.
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 specifically adopts the processes
of vendor accreditation and competitive bidding as the
general rule to ensure that contracts are awarded only to
qualified and duly-accredited suppliers and vendors who
offer the best value for money for PLDT’s requirements.
In relation to this policy, in 2014 PLDT issued its Policy on
Vendor Sanctions, which established a cross-functional
vendor compliance committee that handles the cases
involving vendors and provides a more balanced
monitoring of vendor compliance.
Expanded Whistleblowing Policy (EWB Policy)
This policy provides guidelines on handling employee
disclosures or complaints for violation of the CG Manual,
Code of Ethics, Conflict of Interest 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 confidentiality and fairness in
the handling of a disclosure or complaint.
PLDT maintains a Whistleblowing Hotline and other
reporting facilities, such as a dedicated electronic mailbox,
post office 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 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 findings to
the units concerned. In all processes and activities related
to a whistleblowing complaint or disclosure, utmost
confidentiality is observed in order to ensure the integrity
of the process and/or protect the parties, employees or
offices who are allegedly involved.
For 2014, there were five new whistleblowing complaints
received by the CGO. As at December 31, 2014, five
cases were pending, including a complaint received in
2013, while three cases were deemed closed, including
complaints received in previous years. The complaints
covered allegations of violation of the Code of Business
Conduct and Ethics, Conflict of Interest Policy, Policy on
Gifts, Entertainment and Sponsored Travel and Supplier/
Contractor Relations Policy. One complaint included
allegations of retaliation which was endorsed to the
appropriate investigating unit for further action.
41
PLDT 2014 AR_042815_NEW.indd 41
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS All CG 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 Philippine and U.S. SEC, NYSE
and Hong Kong Stock Exchange corporate governance
rules, as may be appropriate and applicable. In 2014, the
Code of Business Conduct and Ethics and the Conflict of
Interest Policy were reviewed and it was determined that
said policies do not require any amendment or revision.
The PLDT CG Manual was however amended on July 8,
2014 in conformity with PSEC Memorandum Circular
No. 9, series of 2014.
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 officers.
Pledge to Uphold Good Corporate Governance
Together with the automated Conflict of Interest
disclosure system, employees were also provided with
a quick mechanism to reaffirm their CG Pledge. The CG
Pledge is an undertaking by individual employees to
observe the highest standards of ethics in their daily
work. The on-line CG Pledge allows easier monitoring
and compilation of data on those who have or have not
re-affirmed their CG Pledges. Manual signing of the CG
Pledge is still required for newly-hired employees and
for newly-promoted Executives. Manual signing and
re-affirmation is also requested during face-to-face or
on-line educational interventions by the CGO.
Protection of Technology Resources and Information
In 2014, PLDT issued a Unified Information Technology
Policy, which is applicable to PLDT, Smart and Sun,
and provides for the protection of information assets,
the proper use of technology resources, and policy
statements on social media and data privacy.
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 conducted by internationally-known experts who
share their experience, expertise and insights to PLDT’s
Board and Management. In 2014, two enhancement
sessions were organized and conducted for our Board
of Directors.
On April 1, 2014, our Board attended a one-hour briefing
entitled Corporate Governance Requirements Under U.S.
Laws and Regulations and Foreign Corrupt Practices Act
(FCPA) of 1977. It was handled by Mr. Garth W. Bray, a
partner at Sullivan & Cromwell, LLP, U.S. legal counsel of
PLDT. On December 4, 2014, the PLDT Board of Directors
held another Corporate Governance Enhancement
Session. There were two topics discussed in this particular
session. The first speaker, no less than Atty. Teresita J.
Herbosa, Chairperson of the PSEC, who spoke about
Corporate Governance: What to Expect from the SEC.
Following the Chairperson’s talk was a discussion on
Corporate Governance Trends and Current Topics in
Developed Economies and their application in the
Philippines and other ASEAN Countries. It was handled
jointly by Mr. Graham Winter and Ms. Kelly Austin.
Mr. Winter and Ms. Austin are partners at the Hong Kong
office of global law firm Gibson Dunn and Crutcher.
On December 1, 2014, PLDT’s Senior and Middle
Management attended a session developed and
handled by Mr. Chris Lowney, Chairman of the Board of
the U.S.-based Catholic Health Initiatives, author of
the books Heroic Leadership, Heroic Living and Pope
Francis: Why He Leads the Way He Leads, and former
Managing Director of J.P. Morgan & Co. in New York,
Tokyo, Singapore and London. His session was entitled:
21st Century Leadership and Governance: Thriving Amid
Change, Complexity, and Lots of Choices. All of our
Officers, save for three individuals, attended this session or
the Session for Directors on December 4, 2014.
PLDT 2014 AR_042815_NEW.indd 42
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42
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Below is a record of trainings attended by PLDT’s Directors for the year 2014.
Training Details
Briefing on Corporate Governance Requirements
Under U.S. Laws and Regulations and Foreign Corrupt Practices Act of 1977
Mr. Garth W. Bray, Partner, Sullivan & Cromwell, LLP
April 1, 2014
Corporate Governance: What To Expect From the SEC
Hon. Teresita J. Herbosa,
Chairperson, Philippine Securities and Exchange Commission
Corporate Governance Trends & Current Topics in Developed Economies
& Their Application in the Philippines & Other ASEAN Countries
Mr. Graham Winter, Partner
Ms. Kelly Austin, Partner
Gibson Dunn & Crutcher
December 4, 2014
ASEAN Corporate Governance Scorecard Orientation*
Mr. Ricardo Nicanor N. Jacinto, President & CEO,
Institute of Corporate Directors
March 31, 2014
Distinguished Corporate Governance Speaker Series*
John Colvin, Institute of Corporate Directors
April 29, 2014
Corporate Governance Seminar*
SGV & Co.
August 12, 2014
Seminar on Corporate Governance*
Leonardo G. Matignas, Jr., Partner, SGV & Co.
March 22, 2014
21st Century Leadership and Governance: Thriving Amid Change,
Complexity, and Lots of Choices
Chris Lowney, Chairman-Catholic Health Initiatives
December 1, 2014
*Organized externally
Attendees
Manuel V. Pangilinan
Napoleon L. Nazareno
Ray C. Espinosa
Helen Y. Dee
James L. Go
Juan B. Santos
Hideaki Ozaki
Setsuya Kimura
Artemio V. Panganiban
Pedro E. Roxas
Ma. Lourdes C. Rausa-Chan
Alfred V. Ty
Manuel V. Pangilinan
Napoleon L. Nazareno
Ray C. Espinosa
Helen Y. Dee
James L. Go
Juan B. Santos
Hideaki Ozaki
Artemio V. Panganiban
Ma. Lourdes C, Rausa-Chan
Ray C. Espinosa
Artemio V. Panganiban
Pedro E. Roxas
Alfred V. Ty
Tony Tan Caktiong
Helen Y. Dee
Ma. Lourdes C, Rausa-Chan
In addition to its periodic conduct of New Employee or
Executive Orientations, the CGO completed Corporate
Governance Refresher Courses for the Information
Technology Group and the Network Build and Technology
Groups in 2014. Aside from 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 Expanded
Whistleblowing Policy. Supervisory and rank-and-file
employees, on the other hand, are required to take and
complete a module on the PLDT Conflict of Interest Policy.
PLDT also conducted two Vendor and Supplier Briefings
in October 2014 to promote better understanding and
compliance by vendors, suppliers and contractors with
PLDT’s Code of Ethics and other relevant policies.
Education and training is supplemented by the production
and dissemination of relevant corporate governance
communication materials, including thematic posters,
calendars and newsletters. Directors and certain officers and
executives of PLDT are also provided with weekly Corporate
Governance Newsbriefs, which contain summaries of news
articles from global online sources. The Company also issues
periodic advisories on corporate governance.
Monitoring and Evaluation System
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
PLDT 2014 AR_042815_NEW.indd 43
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43
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS 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 of the
performance of the CEO and Management, enables the
Board to identify strengths and areas for improvement
and to elicit individual 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’
Benefits and Training; (2) for individual directors: the
specific 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 2013 performance
period, the results of the assessment process was duly
reported to, and discussed with, the Board in 2014.
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 and
Fraud Risk Management, Corporate Affairs and Legal
Services, Corporate Governance Office and Investor
Relations, conduct an evaluation of their unit/group’s
compliance using an evaluation questionnaire consisting
of the governance standards and 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). The results of the evaluation
conducted by the heads are submitted to the Corporate
Finance & Treasury Head and the Chief Governance Officer,
who submit the consolidated report to the President and
CEO for approval. The results of the compliance evaluation
are reported to the GNC by the CGO.
In 2014, PLDT confirmed its full 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 U.S. Securities
Exchange Act and NYSE Company Manual. In compliance
with the respective Memorandum Circulars of the PSEC
and the PSE, PLDT disclosed its Annual Corporate
Governance Report with Consolidated Changes for Year
2014 on January 12, 2015 and filed its PSE CG Guidelines
Disclosure Report for Year 2013 on March 31, 2014.
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 disqualification from incentives and rewards,
including the Long-Term Incentive Plan, in its Policy on
Employee Qualification for Incentives and Rewards.
PLDT conducts focus 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
PLDT 2014 AR_042815_NEW.indd 44
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44
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS The PLDT Group CSR Statement
At the PLDT Group of Companies, Corporate Social Responsibility is grounded in our belief that an integral
part of our business is the imperative to help improve the overall well-being of the Filipino people.
To achieve this goal, we will address proactively the interests of our various stakeholders. We believe that
as we seek to enhance value for our shareholders, we have a responsibility to:
• Provide quality products and services for our customers
• Develop our employees
• Work with our suppliers and business partners in an
ethical and mutually beneficial manner
• Care for the environment
• Improve our communities
We are conscious about the proper management of our finite and fragile environment and are taking
tangible measures to lessen our carbon footprint. We will continue to invest in technical business solutions
that both cut our costs and help save the environment. By succeeding as a corporation, we create wider
opportunities for employment, entrepreneurship and the greater well-being of all Filipinos. We believe
that as we help raise the economic welfare of the Filipino, we expand the market for our products and
services. The creed of our business strategy is the desire to change lives for the better.
to personnel to provide more quantifiable information
that is tracked over time to check for improvements or
deficiencies. 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 fifth year of their service. Valuable
information is also obtained from the Board and Board
Committee assessment process. Data is 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.
OUR STAKEHOLDERS
PLDT remains committed to establishing and maintaining
a corporate culture anchored on performance and
responsibility in fulfilling obligations to our stakeholders.
Guided by our Corporate Social Responsibility Statement,
we deal and engage with stakeholders in the manner
described above.
Investors/Shareholders
PLDT respects, promotes and upholds shareholders rights
such as the: 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 timely relevant information,
whether in printed or digital form; right to dividends; and
appraisal right. The Company explores and implements
steps to reduce excessive or unnecessary costs that
impede stockholders’ participation in annual and special
stockholders’ meetings and acts with transparency and
fairness in said meetings. It 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 earnings results,
acquisition or disposal of significant assets, off balance-
sheet transactions, related party transactions, Board
membership changes, shareholdings of directors
and officers and any changes thereto, and remuneration of
directors and officers are promptly and accurately disclosed.
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 officer,
concerned units of PLDT’s Management or the Board.
Moreover, PLDT’s Code of Ethics prohibits directors,
officers and employees from dealing in the Company’s
shares when in possession of material non-public
information about and involving the Company. Directors,
officers 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 filing
of the required disclosures to the PSEC and the PSE.
During blackout periods, dealing in Company shares
by directors, officers 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.
To view the Minutes of the 2014 PLDT Annual
Stockholders’ Meeting, please click on the link below:
http://www.pldt.com/docs/default-source/annual-
meeting-of-stockholders/2014/minutes-of-2014-
annual-meeting-of-nbsp-stockholders.pdf?sfvrsn=0
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45
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS On August 5, 2014, the Board approved the amendment
of our dividend policy, increasing the dividend payout rate
to 75% from 70% of our core earnings per share as regular
dividends. In declaring dividends, the Company takes
into consideration the interest of our shareholders, as
well as our working capital, capital expenditures and debt
servicing requirements. The retention of earnings may
be necessary to meet the funding requirements of our
business expansion and development programs. However,
in the event that no investment opportunities arise, the
Company may consider the option of returning additional
cash to shareholders in the form of special dividends of
up to the balance of core earnings or to undertake share
buybacks. PLDT was able to pay out approximately 90% of
its core earnings for the year 2014.
Concerns of shareholders with respect to their investments
and rights as shareholders are ably handled by our
Investor Relations Office.
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 certified Financial Statements, No
Default Certification, and Certification on Compliance
with financial ratio limits. PLDT’s credit has been rated
at “investment grade” by the three major international
credit-rating agencies.
Customers
It is PLDT’s privilege to serve a broad range of customers
from residential, SME and large enterprises, including
the public sector. PLDT strives to satisfy its customers’
requirements and expectations 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 their products and service needs, promptly
addressing their concerns and identifying areas where we
could further enhance customer experience.
Suppliers
PLDT aspires to maintain mutually beneficial relationships
only with like-principled suppliers that uphold PLDT’s
core values of fairness, accountability, integrity, and
transparency in their own businesses. PLDT has around
1,000 accredited suppliers that serve the requirements
of the PLDT Group, ranging from capital expenditures
to operating expenditure items, 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
financial 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 among
accredited and qualified suppliers, in accordance with the
aforementioned policy.
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 providing pursuit of personal interests,
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 benefits 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.
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46
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS PLDT’s leadership and personnel unequivocally affirm that
confronting this challenge entails finding the nexus between
principled performance and outstanding results.
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 offices
such as the DENR, Environmental Management Bureau,
the Laguna Lake Development Authority and other similar
agencies and offices. Furthermore, projects to reduce
waste and the Company’s carbon footprint are also being
implemented. The Company regularly monitors relevant,
environmentally-sensitive information 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. In
2014, PLDT successfully completed and submitted its
disclosure on greenhouse gas emission, energy use and
climate change data to CDP. CDP works with institutional
investors and public companies by providing information
on how firms cope with threats and opportunities arising
from climate change. The Company has also instituted
programs on energy-conservation measures on Company
buildings, service vehicles re-fleeting, network facilities
resource optimization as well as continuing maintenance
of these facilities. Finally, training is conducted to raise
awareness and competency of employees and to ensure
compliance with laws and regulations, promote waste
minimization and sustainable practices.
Advocacy and Networking
PLDT actively supports advocacy for better governance
and ethics in business. This is manifested in the Company’s
policy against corruption and bribery as set forth in
its Code of Ethics, and further reinforced in specific
policies, such as the Policy on Gifts, Entertainment and
Sponsored Travel, Supplier/Contractor Relations Policy
and Corporate Governance 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
field. The PLDT Group is an active sponsoring partner
member of the Ethics and Compliance Officer Association
(ECOA) based in Waltham, Massachusetts, USA. PLDT
participates in the ECOA’s Annual Ethics and Compliance
Conferences. 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 (ICD) such as its roundtable
discussions and working sessions. It coordinates regularly
with the ICD and PSEC in their efforts to raise the standards
of corporate governance in the Philippines through the
ASEAN Corporate Governance Scorecard.
Amidst the challenging, complex and ever-evolving
business environment that it finds itself in, PLDT accepts
the fact that sustaining profitability will remain a
formidable challenge for any company. More particularly,
the challenge requires PLDT and its subsidiaries and
affiliates to make the leap from a telecommunication-
access business to a converged digital communication
business. PLDT’s leadership and personnel unequivocally
affirm that confronting this challenge entails finding the
nexus between principled performance and outstanding
results. What this simply means is that directors
and officers have the responsibility to be examples,
enablers and enforcers, while the rest of the Company is
accountable for keeping themselves empowered, involved
and informed. In doing this, our Company can confidently
demonstrate that in terms of performance, prospects for
growth or on matters of ethics and corporate governance,
it can stand shoulder to shoulder with the best in the world.
PLDT 2014 AR_042815_NEW.indd 47
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47
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS Cherishing Moments
The little boy will someday
be himself a father and will
remember the strong ties he
had with the most important
man in his life. Then, he,
too, will be the same to his
children. Loving. Constantly
sharing and connecting.
PLDT 2014 AR_042815_NEW.indd 48
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THE PLDT GROUP
ENTERPRISE RISK
MANAGEMENT REPORT
Unprecedented changes in the telecommunications
sector highlight the need for a comprehensive
understanding of risks by industry players. The PLDT
Group recognizes the important role of ERM in its
pursuit to provide customers with only the best voice,
video and data services. ERM allows the organization
to pursue a systematic approach to identifying,
controlling and monitoring both existing and emerging
risks.
THE GROUP ENTERPRISE RISK
MANAGEMENT DEPARTMENT
The PLDT Group’s commitment to the pro-active risk
management is reinforced by the Group Enterprise
Risk Management Department (GERMD). The GERMD
develops and manages a comprehensive integrated
risk management program that is implemented across
all levels of the organization, with the goal of managing
the PLDT 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 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
A risk assessment exercise was undertaken by the Joint
Executive Committee to identify and prioritize the most
important risks affecting the PLDT Group for 2015. These
top risks are:
THE ENTERPRISE RISK MANAGEMENT
FRAMEWORK AND PROCESS
The GERMD 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 in place is based on the
International Standard of ISO 31000.
1. Competitive Situation
2. Changing Revenue Mix
3. Disruptive Nature of OTT Services
4. Rapid Change of Technology
5. Monetization of Data and Other New Services
6. People
7.
8. Cyber Security Concerns
9. Natural Disasters
10. Regulatory and Political Risks
Increased Level of Investments
The PLDT Group is committed in pursuing measures
to ensure that all these risks are effectively managed.
Treatment strategies have been developed, and
mitigation initiatives were 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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ESTABLISH THE CONTEXT
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IDENTIFY RISKS
ANALYZE RISKS
EVALUATE RISKS
TREAT RISKS
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PLDT 2014 AR_042815_NEW.indd 49
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49
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
BOARD OF
DIRECTORS
MANUEL V. PANGILINAN • 68, FILIPINO
Director of PLDT since November 24, 1998. He was appointed as Chairman of the
Board of Directors of PLDT after serving as its President and Chief Executive Officer
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 Pacific
Investments Corp. (MPIC), Manila Electric Co. (Meralco) and Philex Mining Corp., all of
which are PSE-listed companies, and of several subsidiaries or affiliates of PLDT or
MPIC, including, among others, Smart Communications, Inc. (Smart), Beacon Electric
Asset Holdings Inc. (Beacon), Manila North Tollways Corp., Maynilad Water Services
Corp. (Maynilad), Landco Pacific Corp., Medical Doctors Inc. (Makati Medical Center),
Colinas Verdes Corp. (Cardinal Santos Medical Center), Davao Doctors Inc., Riverside
Medical Center Inc., Our Lady of Lourdes Hospital and Asian Hospital Inc. He is also
the Chairman of MediaQuest Holdings Inc.(MediaQuest), TV5 Network Inc. (TV5) and
PLDT-Smart Foundation, Inc.
Mr. Pangilinan founded First Pacific Co. Ltd. (First Pacific), a Hong Kong 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 Chief
Executive Officer and Managing Director. Within the First Pacific 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 Pacific Group, Mr. Pangilinan is the Chairman of the Board of
Trustees of San Beda College and the Hong Kong Bayanihan Trust, a non-stock,
non-profit foundation which provides vocational, social and cultural activities for
Hong Kong’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. He is a Co-
Chairman of the Philippine Disaster Recovery Foundation, Inc. (PDRF), a non-stock,
non-profit foundation established to formulate and implement a reconstruction
strategy to rehabilitate and rebuild areas devastated by floods and other calamities,
and of the newly organized U.S.-Philippine Business Society, a non-profit society
which seeks to broaden the relationship between U.S. and the Philippines in the areas
of trade, investment, education, foreign and security policies and culture. 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, and a member of the Board of Trustees of Caritas Manila and Radio
Veritas-Global Broadcasting Systems, Inc. He was a former Commissioner of the Pasig
Rehabilitation Commission and a former Governor of the Philippine Stock Exchange.
Mr. Pangilinan has received numerous prestigious awards including the Ten
Outstanding Young Men of the Philippines (TOYM) for International Finance (1983), the
Presidential Pamana ng Pilipino Award by the Office of the President of the Philippines
(1996), Best CEO in the Philippines by Institutional Investor (2004), CEO of the Year
(Philippines) by Biz News Asia (2004), People of the Year by People Asia Magazine
(2004), Distinguished World Class Businessman Award by the Association of Makati
Industries, Inc. (2005), Man of the Year by Biz News Asia (2005), Management Man
of the Year by the Management Association of the Philippines (2005), Order of
Lakandula (Rank of a Komandante) in recognition of his contributions to the country
by the Office of the President of the Republic of the Philippines (2006), Business
Icon Gold Award for having greatly contributed to the Philippine economy through
achievements in business and society by Biz News Asia magazine (2008), Global
Filipino Executive of the Year for 2010 by Asia CEO Awards, Philippines Best CEO for
2012 by Finance Asia, Sports Patron of the Year for his invaluable contributions
to the Philippine Sports (2010) and Executive of the Year (2013) by the Philippine
Sportswriters Association (PSA).
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 Degree (Honoris Causa) by
the San Beda College (2002), Xavier University (2007), Holy Angel University (2009)
and Far Eastern University (2010).
NAPOLEON L. NAZARENO • 65, 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 Chief Executive Officer of PLDT since his appointment on February 19, 2004 and
is concurrently the President and Chief Executive Officer of Smart since January 2000.
He also serves as Chairman of several subsidiaries of PLDT and Smart including PLDT
Communications and Energy Ventures, Inc. (PCEV), Smart Broadband, Inc., Smart
e-Money, Inc., Connectivity Unlimited Resources Enterprises, 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. (PLDT Global). His other directorships include Meralco, a
PSE-listed company, Meralco Powergen Corp., Cignal TV, Inc. (Cignal) and Rufino Pacific
Tower Condominium Corp. He is a non-executive director of First Pacific, a Hong Kong
Stock Exchange-listed company, and a Supervisory Board Member of Rocket Internet
AG, a company which provides a platform for the rapid creation and scaling of consumer
internet businesses outside the U.S. and China.
Mr. Nazareno’s business experience spans several countries in over 30 years and
his exposure cuts across a broad range of industries, namely, packaging, bottling,
petrochemicals, real estate and, in the last 14 years, telecommunications and
information technology. In 1981, he started a successful career in the international firm
Akerlund & Rausing, occupying senior management to top level positions and, in 1989,
became the President and Chief Executive Officer of Akerlund & Rausing (Phils.), Inc. In
August 1995, he moved to Metro Pacific Corp. where he served as President and Chief
Executive Officer until December 1999.
Mr. Nazareno is also the Chairman of the Board of Trustees and Governors of Asian
Institute of Management, the President and Trustee of First Pacific Leadership Academy,
a trustee of Ideaspace Foundation, Inc. and Philippine Disaster Recovery Foundation,
Inc., a director of Operation Smile and a member of Analitika. He was a board member
of the GSM Association Worldwide from November 2004 to November 2012 and
Wholesale Applications Community from July 2010 to 2012. He was appointed to the
Private Sector Advisory Board of the Commission on Information and Communications
Technology under the Office of the President of the Philippines in February 2006. He was
voted Corporate Executive Officer of the Year (Philippines) for three consecutive years
at the 2004, 2005 and 2006 Best-Managed Companies and Corporate Governance
Polls conducted by Asiamoney, was awarded the Telecom CEO of the Year at the 15th
Telecoms Asia Awards, an influential Asian telecommunications industry magazine in
Bangkok, and was cited as “Best Telecom CEO in Asia 2013” by the All-Asia Executive
Team Survey conducted by the New York-based Institutional Investor.
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 Degree (Honoris Causa) by the University of San Carlos.
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50
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS JAMES L. GO • 76, 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 Chief Executive Officer
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 Officer of Robinsons Retail
Holdings, Inc., which are PSE-listed companies. He is also
the Chairman of JG Summit Petrochemical Corp. and JG
Summit Olefins Corp., and a director of Cebu Air, Inc., CFC
Corp., United Industrial Corp., Marina Center Holdings
Private Ltd. and Hotel Marina City Private Ltd.. He is also
the President and a Trustee of the Gokongwei Brothers
Foundation. He was the Vice Chairman and President
and Chief Executive Officer 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.
HELEN Y. DEE • 71, FILIPINO
Director of PLDT since June 18, 1986. She is the
Chairperson or a director of EEI Corp., House of
Investments, 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 Chief Executive Officer 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.
RAY C. ESPINOSA • 59, 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 Pacific and was appointed as First Pacific Group’s
Head of Government and Regulatory Affairs and Head of
Communications Bureau for the Philippines. Atty. Espinosa is
also a director of Meralco, Metro Pacific Investments Corp. and
Roxas Holdings, Inc., and an independent director and Chairman
of the Audit Committee of Lepanto Consolidated Mining Co.,
which are PSE-listed companies. He is the Chairman of PhilStar
Group of Companies, Business World Publication Corp., a director
and Corporate Secretary of Philippine Telecommunications
Investment Corp., a director of Metro Pacific Resources, Inc. and
BTF Holdings, Inc. and a trustee of the Beneficial Trust Fund of
PLDT and PLDT-Smart Foundation, Inc.
Atty. Espinosa served as President & CEO of MediaQuest,TV5
and 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 and is a member of the
Integrated Bar of the Philippines. He was a partner at Sycip
Salazar Hernandez & Gatmaitan from 1982 to 2000, and a
foreign associate at Covington and Burling (Washington, D. C.,
USA) from 1987 to 1988.
SETSUYA KIMURA • 58, 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 Pacific 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.
51
HIDEAKI OZAKI • 50, JAPANESE
Director of PLDT since December 6, 2011. He is the Vice President of Corporate Planning
and Carrier Relations, Global Business of NTT Communications Corp. (NTT Com), a
company which provides telecommunication and ICT services such as Global Network,
Data Centre and 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.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
HON. ARTEMIO V. PANGANIBAN • 78, FILIPINO
Independent director of PLDT since April 23, 2013 and an independent member of
the Audit, Governance and Nomination and Executive Compensation Committees
of the Board of Directors of PLDT since 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 Pacific Investments Corp., Robinsons Land Corp., GMA Network, GMA
Holdings, and Asian Terminals, Inc., and a regular director of Jollibee Foods Corp.,
all of which are PSE-listed companies. He also holds directorships in Metro Pacific
Tollways Corp. and Tollways Management Corp. He is the Chairman of the Board
of Trustees of the Foundation for Liberty and Prosperity, a trustee of Claudio
Teehankee Foundation, 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 Ramon V. Del Rosario, Sr. C.V. Starr Center for Corporate Governance
and University of Asia and the Pacific College of Law, member of the Board of
Advisers of De La Salle University College of Law and Johann Strauss Society,
member of the Advisory Board of World Bank (Philippines), senior adviser of the
Metropolitan Bank and Trust Co. and V. Mapa Falcon Honor Society, adviser of
Double Dragon Properties Corp., member of the Philippine National Committee of
the Asean Law Association, and a column writer of the Philippine Daily Inquirer.
Hon. Panganiban served the Supreme Court of the Philippines for more than
11 years, first as Justice (October 10, 1995 to December 20, 2005) and later, as
Chief Justice (December 21, 2005 to December 6, 2006) during which he sat
concurrently as Chairperson of the Presidential Electoral Tribunal, Judicial and Bar
Council and Philippine Judicial Academy.
He was the recipient of numerous awards in recognition of his role as jurist,
practising lawyer, professor, civic leader, Catholic lay worker and business
entrepreneur, including as “The Renaissance Jurist of the 21st Century” given by
the Supreme Court on the occasion of his retirement from the Court.
Hon. Panganiban obtained his Bachelor of Laws Degree (Cum Laude) from
the Far Eastern University in 1960, and was conferred a Doctor of Laws Degree
(Honoris Causa) by the University of Iloilo (1997), Far Eastern University (2002),
University of Cebu (2006), Angeles University (2006) and Bulacan State
University (2006). He was co-founder and past president of the National Union of
Students of the Philippines.
MA. LOURDES C. RAUSA-CHAN
• 61, FILIPINO
Director of PLDT since March 29, 2011 and
is a 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 Officer of
PLDT since November 1998, January 1999 and
March 2008, respectively. She is 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
Pacific Corporation 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 • 59, FILIPINO
Director of PLDT since March 1, 2001 and qualified 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 fields 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 • 76, 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., 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.
Mr. Santos retired as Chief Executive Officer 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
Mr. Santos was bestowed the prestigious Management Man of the Year Award
for 1994 by the Management Association of the Philippines and was the Agora
Awardee for Marketing Management given by the Philippine Marketing Association
in 1992. 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 • 62, FILIPINO
Director of PLDT since July 8, 2008. He is the
Chairman and Chief Executive Officer 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, Temasek Foundation and
St. Luke’s Medical Center. 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.
52
ALFRED V. TY • 47, FILIPINO
Independent director of PLDT since June 13,
2006. He serves as an independent 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. and
Bonifacio Landmark Realty & Development Corp.,
a director of Global Business Power Corp. and
Cathay International Resources, Inc., a trustee
of Metrobank Foundation, Inc., Norberto Tytana
Foundation and GT-Metro Foundation, Inc. He is
a Honorary Consul of the Consulate of Uruguay.
Mr. Ty received his Bachelor of Science Degree
in Business Administration from the University of
Southern California.
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS ADVISORY
BOARD
OSCAR S. REYES
ROBERTO R. ROMULO
BENNY S. SANTOSO
WASHINGTON Z. SYCIP
CHRISTOPHER H. YOUNG
ORLANDO B. VEA
53
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS PLDT KEY
OFFICERS
ERNESTO R. ALBERTO • 54, FILIPINO
Appointed as Enterprise, 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. (Bonifacio
Communications), ePDS, Inc., iPlus Intelligent
Network, Inc., PLDT Clark Telecom, Inc. (PLDT
ClarkTel), PLDT Subic Telecom, Inc., (PLDT
SubicTel) and Smart-NTT Multimedia, Inc., a
director of Asean Telecoms Holdings, Mabuhay
Investments, PLDT Global Corp. (Philippines and
Malaysia), PLDT-Philcom, Inc. (PLDT-Philcom),
PLDT-Maratel, Inc. (PLDT Maratel) and IP
Converge Data Services, Inc. Mr. Alberto has
over 20 years of work experience in the areas
of corporate banking, relationship management
and business development and, prior to joining
PLDT in 2003, was a 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. Mr. Alberto obtained his
Master’s Degree in Economic Research from the
University of Asia and the Pacific.
RENE G. BAÑEZ • 60, FILIPINO
Supply Chain, Asset Protection and
Management Group Head, was the Chief
Governance Officer 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
Pacific Corp. for three years until December
1998. He obtained his Bachelor of Laws Degree
from the Ateneo de Manila University.
PLDT 2014 AR_042815_NEW.indd 54
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54
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS FROM LEFT:
JUNE CHERYL A. CABAL-REVILLA
NAPOLEON L. NAZARENO
RAY C. ESPINOSA
ANABELLE L. CHUA
ALEJANDRO O. CAEG
MA. LOURDES C. RAUSA-CHAN
ERNESTO R. ALBERTO
RENE G. BAÑEZ
JUN R. FLORENCIO
ISAIAS P. FERMIN
MENARDO G. JIMENEZ, JR.
JUNE CHERYL A. CABAL-REVILLA
• 41, FILIPINO
Controller and Financial Reporting and
Controllership Head, is also a director and/
or the Chief Financial Officer/Treasurer of
several subsidiaries of PLDT including PLDT
ClarkTel, PLDT SubicTel, PLDT-Philcom, PLDT-
Maratel, Digitel, ePLDT, Telesat, Inc., Mabuhay
Investments, PLDT-SNMI, Pilipinas Global
Network Limited, Pacific Global One Aviation and
PLDT Global Corp., among others. She is also
the Chief Financial Officer of Cignal, Treasurer of
PLDT-Smart Foundation, Inc. and the Philippine
Disaster Recovery Foundation, Comptroller of
First Pacific Leadership Academy Foundation
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 SGV
& Co. Ms. Cabal-Revilla obtained her Bachelor
of Science Degree in Accountancy from De La
Salle University and Master’s Degree in Business
Management Major in Finance from Asian
Institute of Management.
ALEJANDRO O. CAEG • 55, 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 Conexus
Chairman until 2014. Prior to joining PLDT
in 2009, he worked in PT Smart Telecom
(Indonesia) as its Chief Commercial Strategy
Officer from July 2008 to December 2008
and as Chief Commercial Officer 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 Chief Executive Officer
of Telecommunications Distributors Specialist,
Inc. in 2002 and as Chief Operations Adviser
of I-Contacts Corporation (Smart’s Call Center
subsidiary) from 2001 to 2002. Mr. Caeg
graduated with a Bachelor’s Degree in AB Applied
Economics and obtained MBA credits from De La
Salle University Manila.
ANABELLE L. CHUA • 54, FILIPINO
Treasurer and Corporate Finance and Treasury
Head, concurrently holds the position of Chief
Financial Officer of Smart since 2006 and of
Digitel Mobile since August 2013. She holds
directorships in Philippine Telecommunications
Investment Corp., Smart, Digitel, Beacon and
several subsidiaries of PLDT, Smart and Digitel
including ePLDT, Digitel Mobile, Aces Philippines,
Mabuhay Investments, PLDT Global Corp., PLDT
Global Investments, PLDT Digital Investments
Pte Ltd., PCEV, Smart Broadband, Inc., Smart
e-Money, Inc., Voyager Innovations, Inc. and
Chikka Holdings, Ltd. 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
Beneficial Trust Fund, a director and Chief
Financial Officer of MediaQuest and several
PLDT 2014 AR_042815_NEW.indd 55
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55
PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS subsidiaries of MediaQuest, and a member of
the Finance and Audit Committees of the Board
of Directors of Meralco. Ms. Chua has over 20
years of experience in the areas of corporate
finance, treasury, financial control and credit
risk management and was a Vice President at
Citibank, N.A. where she worked for 10 years prior
to joining PLDT in 1998. Ms. Chua graduated
magna cum laude from the University of the
Philippines with a Bachelor of Science Degree in
Business Administration and Accountancy.
ISAIAS P. FERMIN • 47, 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 PLDT Philcom and PLDT Maratel,
the Chief Operating Officer of Digitel and a
director of PLDT Global Corp. Mr. Fermin has
over 20 years of experience covering general
management, consumer marketing, wholesale
and retail sales, and retail store management
gained from leading fast moving consumer
group companies locally and globally. 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. Mr. Fermin obtained
his Bachelor of Science Degree in Chemical
Engineering from the University of the
Philippines.
JUN R. FLORENCIO • 59, 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 has
over 25 years of work experience in the areas of
external and internal audit, revenue assurance,
credit management, information technology,
financial management, and controllership. 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. Mr. Florencio obtained his
Bachelor of Science Degree in Commerce, Major
in Accounting from the University of Santo Tomas
and attended the Management Development
Program of the Asian Institute of Management.
JOINT EXECUTIVE COMMITTEE AND KEY ADVISORS
SEATED, FROM LEFT: JUN R. FLORENCIO, ERNESTO R. ALBERTO, LAWRENCE T. GOH
STANDING, FROM LEFT: MARIO G. TAMAYO, ALEJANDRO O. CAEG, MASAHIKI TSUCHIYA (ADVISOR), NAPOLEON L. NAZARENO, MA. LOURDES C. RAUSA-CHAN
56
PLDT 2014 AR_042815_NEW.indd 56
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS CHRISTOPHER H. YOUNG • 57, 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 Pacific in Hong Kong as Group
Financial Controller. He joined Metro Pacific
Corp. in 1995 as Finance Director, a position he
held until he joined PLDT in November 1998.
MENARDO G. JIMENEZ, JR. • 52, FILIPINO
Human Resources Group Head, and concurrently
Fixed Line Business Transformation Office
Head, was Revenue Team Head of the Business
Transformation Office 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. His directorships include Smart,
Telesat, Inc., Smart-NTT Multimedia, Inc., PLDT-
Philcom, PLDT Maratel, PLDT ClarkTel and PLDT
SubicTel. Prior to joining PLDT, he had a stint
at GMA Network, Inc., where he served as head
of creative services and network promotions.
Mr. Jimenez obtained his AB Economics Degree
from the University of the Philippines.
SEATED, FROM LEFT: CHRISTOPHER H. YOUNG (ADVISOR), ISAIAS P. FERMIN, EMMANUEL RAMON C. LORENZANA
STANDING, FROM LEFT: ANABELLE L. CHUA, ORLANDO B. VEA, CHARLES A. LIM, MENARDO G. JIMENEZ, JR., RENE G. BAÑEZ,
SETSUYA KIMURA (ADVISOR), RAY C. ESPINOSA
57
PLDT 2014 AR_042815_NEW.indd 57
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS
PLDT
OFFICERS
Manuel V. Pangilinan
Chairman of the Board
Napoleon L. Nazareno
President and CEO
Ernesto R. Alberto
EVP, Enterprise, International
and Carrier Business
Isaias P. Fermin
EVP, HOME Business
René G. Bañez
SVP, Supply Chain, Asset Protection
and Management
Ricardo M. Sison
FVP, Consumer Credit and Business
System Management
Emiliano R. Tanchico, Jr.
FVP, Human Resources Management
and Development
Melissa V. Vergel de Dios
FVP, Investor Relations
Miguela F. Villanueva1
FVP, Cost and Valuation
Raul S. Alvarez
VP, HOME Marketing Support
Emeraldo L. Hernandez
VP, Technical Operations Centre
Marven S. Jardiel
VP, Enterprise Operations Support and
Readiness
Princesita P. Katigbak
VP, Corporate Relationship Management E
Alexander S. Kibanoff
VP, Organization Development
Joseph Nelson M. Ladaban
VP, Consumer Credit and Collection
Management
Alejandro O. Caeg
SVP, International and Carrier Business
Jose A. Apelo1
VP, Fixed Service Quality Management
Javier C. Lagdameo
VP, Corporate Relationship Management B
Anabelle L. Chua
SVP, Corporate Finance and Treasury
Corporate Treasurer
Rafael M. Bejar
VP, Medical Services
Joselito S. Limjap
VP, ICT Research and Development
Jun R. Florencio
SVP, Internal Audit and Fraud Risk
Management
Menardo G. Jimenez, Jr.
SVP, Human Resources
Business Transformation Office
Ma. Lourdes C. Rausa-Chan
SVP, Corporate Affairs and Legal Services
General Counsel
Chief Governance Officer
Corporate Secretary
Katrina L. Abelarde
FVP, Small and Medium Enterprise
Anna Isabel V. Bengzon1
FVP, Office 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 and
Support Management.
Renato L. Castañeda
VP, Corporate Relationship Management G
Albert Mitchell L. Locsin
VP, Corporate Relationship Management C
Luis Ignacio A. Lopa
VP, Enterprise Subsidiaries and VIP Account
Management
Gerardo Jose V. Castro
VP, Luzon Customer Service
Operations District
Paolo Jose C. Lopez4
VP, HOME Sales and Service Centre and
Retention Management
Gene S. De Guzman
VP, Enterprise Service Assurance Management
Ma. Carmela F. Luque
VP, Financial and Corporate Audit
Rebecca Jeanine R. De Guzman3
VP, HOME Customer Care and Sales Support
Oliver Carlos G. Odulio
VP, Asset Protection and Risk Management
Alona S. Dingle
VP, Financial Reporting
Margarito G. Dujali, Jr.
VP, HOME Marketing
Walter M. Gaffud
VP, HOME Sales and Distribution
Gil Samson D. Garcia
VP, Revenue Management and
Cash Assurance
Joseph Ian G. Gendrano
VP, Corporate Relationship Management A
Elisa B. Gesalta
VP, Buildings and Enterprise Access Network
Project Management
Aileen D. Regio
VP, Supply Chain Planning and Procurement
Ricardo C. Rodriguez
VP, Compensation, Rewards and
Performance Management
Genaro C. Sanchez
VP, International Network
Ana Maria A. Sotto
VP, Enterprise 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
June Cheryl A. Cabal-Revilla
FVP, Financial Reporting and Controllership
John John R. Gonzales
VP, Corporate Relationship Management F
Oscar Enrico A. Reyes, Jr.2
FVP, Office of the President and CEO
Ma. Josefina T. Gorres
VP, Enterprise Billing and Credit Management
Martin T. Rio
FVP, Property and Facilities Management
Ma. Criselda B. Guhit
VP, Tax Management
1 Separated effective May 1, 2015.
2 Appointed effective February 1, 2015.
3 Separated effective March 16, 2015.
4 Promoted effective January 27, 2015.
58
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PLDT 2014 ANNUAL REPORTENRICHING CONNECTIONS