Aboitiz Group continues Great Transformation in 2023
On Monday, April 24, the Aboitiz Group held a media briefing where team leaders shared exciting projects and community stories that offer a glimpse of the Group’s industry-leading plans for the future. This marks a little over a year since the launch of the Great Transformation, an innovative growth strategy driven by technology and a renewed entrepreneurial spirit that sees the Group transform into the Philippines’ first Techglomerate.
“Empowered by the fusion of technology and innovative thinking, the Aboitiz Group is going full-speed ahead with our Great Transformation, charting an audacious course towards boundless growth,” said Aboitiz Group President and Chief Executive Officer (CEO) Sabin Aboitiz.
The briefing featured Aboitiz Equity Ventures (AEV) Chief Financial Officer (CFO) Toto Hilado, AboitizPower President and CEO Manny Rubio, Union Bank of the Philippines (UnionBank) President and CEO Edwin Bautista, Aboitiz InfraCapital (AIC) President and CEO Cosette Canilao, Aboitiz Land President and CEO David Rafael, and Pilmico and Gold Coin Group (Pilmico) President and CEO Tristan Aboitiz.
Aboitiz Data Innovation
Leading the Aboitiz Group’s Great Transformation journey to become the Philippines’ first Techglomerate is Aboitiz Data Innovation (ADI), the Data Science and Artificial Intelligence (DSAI) arm of the Group. Responsible for operationalizing DSAI to translate data into business and sustainability outcomes, the efforts of ADI have re-energized the Group with a culture of innovation and a data-driven mindset.
In partnership with UnionBank and Aboitiz Equity Ventures, ADI will be hosting the inaugural AI Summit Philippines at the Marriott Grand Ballroom on May 10 to 11, 2023. This summit marks a significant milestone in the Great Transformation and highlights the Group’s commitment to driving AI development in the country. The two-day event will showcase keynote speeches and panel discussions led by prominent leaders and experts, shedding light on turning data into actionable insights scaling across industries as well as the latest trends, challenges, and opportunities in AI.
AboitizPower
The Group’s Power unit, AboitizPower, supports the country’s socio-economic development with its diverse portfolio of thermal and renewable energy (RE) assets. Continuing its 10-year growth strategy of having 4,600 megawatts (MW) of RE capacity by 2030, AboitizPower currently has over 1,000 MW of ongoing and disclosed clean energy projects, including the 17 MW Tiwi Binary Geothermal Power Plant, the 94 MW Cayanga-Bugallon solar facility, and the 167 MW Laoag solar facility. These are complemented by AboitizPower’s investments in Battery Energy Storage Systems (BESS), namely: the soon-to-be commercially operational SN Aboitiz Power’s (SNAP) 24 MW Magat Battery in Isabela and the 49 MW Maco Battery in Davao de Oro, which is currently the largest single-unit BESS in the grid since commercial operations began in November 2022. BESS technology enables generators to store surplus power and provide regulating and contingency reserve power to the country’s grids, hence contributing to energy security.
The 49-MW BESS (left) in Maco, Davao de Oro is connected to Therma Marine, Inc. It is AboitizPower’s first BESS project in the country, and the first to be built on a floating platform in all of Southeast Asia. Meanwhile, the new 33-megavolt-amperes (MVA) Binugao substation of Davao Light and Power Co., Inc. (right) was inaugurated on April 20, 2023, and is the second fully digital substation in Davao City. (Photo of BESS by Benedicto Dejan, Jr.)
AboitizPower is well on its mission of providing reliable electricity at reasonable prices as it also continues to enhance the availability and efficiency of its base load capacities with the utilization of artificial intelligence (AI) and machine learning. Its distribution utilities Visayan Electric Company, Inc. and Davao Light and Power Co., Inc. each possess fully digital substations that help boost the efficiency, reliability, and availability of power supply through real-time control and protection operations. Both companies developed software-defined networks (SDN), a type of communication network that is more secure against cyber threats than traditional ethernet networks using commercially available technologies, and are the first to use SDN in the country.
UnionBank
UnionBank has always thrived in the digital sphere where only the brave and bold stay one step ahead of their peers through innovation and technology. A pioneer in the Philippines’ digital banking industry, UnionBank has earned multiple awards and recognitions for its innovative approach to banking. Its digital transformation started in 2016 and has since adopted cutting-edge technologies to provide its customers with secure and convenient banking services. UnionBank’s efforts have earned it several awards, including four-time “Best Digital Bank in Southeast Asia” (2020-2023) and six-time “Digital Bank of the Year (2018-2023).”
UnionBank has built a reputation for its proactive approach to adopting new technologies to provide customers with convenient, secure, and innovative banking experiences through its online banking platforms such as UnionBank Online for retail customers, The Portal for corporate clients, and SME Business Banking for MSMEs.
In a landmark deal, UnionBank acquired Citigroup’s consumer banking business in the Philippines, which included an asset and liability transfer, the sale of shares in Citicorp Financial Services and Insurance Brokerage Philippines, Inc., and real estate shares in Citibank Square building in Quezon City. The deal increased UnionBank’s total assets by Php 98.1 billion and welcomed over 1,500 new employees. The acquisition also elevated UnionBank’s credit card ranking in billings to the second spot.
Aboitiz InfraCapital
Building smart and sustainable ecosystems of the future, Aboitiz InfraCapital (AIC) is committed to expanding its presence, creating synergies within the Aboitiz Group, and utilizing innovative technologies to address the infrastructure gap in the Philippines.
AIC Economic Estates is at the forefront of sustainable industrial development across the country. LIMA Estate, which recently celebrated its 25th anniversary, has topped off LIMA Tower One, the first of seven office buildings in the 30-hectare LIMA Central Business District, and is set to be completed by February 2024. West Cebu Estate, which will mark its 30th milestone year in May, is also expanding its industrial area by 39 hectares and creating 14,000 new employment opportunities.
In its emerging Central Business District in Batangas, Aboitiz InfraCapital’s LIMA Estate has completed the LIMA Tower One, the first of seven towers designed especially for business process outsourcing firms.
Additionally, AIC is exploring integrating DSAI to enhance the operations of the Mactan-Cebu International Airport. AIC has also submitted an unsolicited proposal to PhilHealth, in partnership with Unisys, to digitalize the agency’s claims procedure for improved efficiency and transparency, furthering its mark in the digital infrastructure sector.
Aboitiz Construction
As Aboitiz Construction (ACI) continues to target growth and expansion, it recently kicked off its new business segment which is the maintenance services that cover preventive maintenance, upgrades, and shutdown works for power plants, cement, and mining facilities.
As a trusted firm in LIMA Estate, Aboitiz Construction introduced technologically advanced equipment and instruments that will be used to optimize the work and schedule. ACI is one of the first construction companies in the country to use fully automated construction equipment. This innovation ensures accuracy and efficiency in construction operations.
Early this year, ACI started the construction of a 3,000 sq. meter warehouse and 18,337 sq. meter land development works for El Colono del Oeste, Inc. inside LIMA Estate. The firm was also tapped to handle a two-year site development works for the 72 hectares industrial lot in LIMA wherein over 300 skilled workers will be employed on the project site during its peak activities. As part of its improved operations and business transformation, ACI was recertified to three ISOs on quality, environment, and occupational health and safety last March 2023.
Aboitiz Land
Aboitiz Land is leading the real estate industry in the Philippines with innovative approaches to help Filipinos find their perfect home. By investing early in digital marketing and sales competencies, Aboitiz Land has launched the Vecino App, which enables digital end-to-end home buying, providing after-sales assistance and virtual turnovers. The company’s data-centric approach to collections has enabled it to surpass last year’s collections by 28%, despite rising interest rates.
Priveya Hills, Aboitiz Land’s luxury residential development in Cebu City is opening a new phase, offering residential lots from 400 sqm to 2,000 sqm. With only 11 lots per hectare, this sought-after property remains to be prime and private for the privileged few.
Aboitiz Land’s goal to harness property technology includes venturing into a strategic partnership with Sumitomo Mitsui Construction Corporation Philippines and Connovate Philippines to introduce precast concrete panel technology, which is already being used in Aboitiz Land communities The Villages at Lipa and Seafront Residences. The 43-hectare Seafront Residences has seen its value appreciate by 381% since its launch in 2017 and remains to be one of the most sought-after beach communities in Batangas, while Foressa Mountain Town in Cansomoroy, Balamban has launched a new phase offering up to 2,040 sqm residential lots. Meadow, the most premium village at The Villages at Lipa has been launched as well offering residential lots spanning up to 1,500 sqm. This year, Aboitiz Land will launch fresh inventories, including a new phase of Priveya Hills in Cebu City and a cluster of mid-rise buildings in Lipa City.
Pilmico
Pilmico, the integrated food and agribusiness arm of Aboitiz, continues to embrace the renewed entrepreneurial spirit of the Great Transformation. This year will see facilities expansion in Yunnan, China, a 150k MT-capacity feed mill, and in Long, An Vietnam, a 200k MT-capacity feed mill, to meet demand and drive further growth.
Maxime Elite for cats is Pilmico’s newest product for its Pet Food line.
As the company pursues its purpose of feeding Asia from mill to meal, they have made significant strides in the retail industry, particularly in Pet Food and Meats. This year, its Pet Food category introduces its premium line, “Maxime Elite for cats,” adding to its growing product portfolio. Meanwhile, Pilmico’s meats retail brand, ‘The Good Meat’ currently has five stand-alone stores in Metro Manila and Batangas, increasing from two branches within the same period last year.
