In 2015, your company posted a consolidated core net                                           
income of P18.3 billion, a 2% increase from the prior
year’s figure. This core income translates to earnings
per share of P3.29, and a Return on Shareholders’
Equity of 18%. Total core earnings contributions from
AEV’s strategic business units came from power, which
accounted for 74%, followed by banking at 13%, food
at 9%, land at 3%, and infrastructure at 1%.

Consolidated EBITDA (Earnings Before Interest, Taxes,
Depreciation, and Amortization) rose by 5% year-on-year
to P40.2 billion. Beneficial EBITDA, a more meaningful
metric for us, increased by 8% to P35.4 billion. By the
end of the year, cash balances stood at P63.6 billion.

For 2016, we have budgeted about P58.4 billion in
capital expenditures (capex), compared to the P38.7
billion in 2015. The bulk of this year’s capex will once
again go to AboitizPower’s continuing efforts, together
with its partners, to increase total capacity to 4,000 MW
by 2020. UnionBank will upgrade its infrastructure to
enable its digital banking ambitions while it continues
to expand its branch network, a similar thrust being

undertaken by our newest remittance business,
PETNET. Pilmico's initiatives will expand its customer
reach in ASEAN while diversifying operations in the
country. AboitizLand will acquire more industrial and
residential land, as it continues to expand its business
outside of Cebu, and onto the national arena.

The domestic economy saw another year of robust
growth under a low interest-rate environment, and
the Aboitiz Group successfully tapped the debt capital
markets to fund its own growth initiatives. In 2015,
we completed several debt transactions, the most
significant being our P24-billion retail bond issuance
- the largest ever issued for the Group, and the third
largest issued in the Philippines.

Despite all the additional debt, your company’s
balance sheet remains strong, with relatively low
gearing. At year-end 2015, net-debt-to-equity stood
at only 0.7x, with net-debt-to-EBITDA at 1.7x. AEV’s
consolidated debt maturity profile is well within the
parameters we have set to mitigate liquidity and
refinancing risk over the remaining life of this debt.

With the historically low interest rates currently                                                                   
prevailing, we have deployed a strategy of locking
in interest rates on almost all of our term debt, to
minimize interest rate risk.

Among our projects for 2016, we are seeking to
close the financing of our first bulk water project, the
country’s second largest private bulk water project to
date. We are well-positioned to finance acquisitions
as opportunities arise, as well as expansion and
greenfield projects in the coming years.

We continue to improve the company’s risk financing
initiatives by focusing on better risk mitigation and
quantification for both insured values and business
interruption exposures. This allows us to achieve
sufficient and effective Group-wide insurance
programs as well as ensure business continuity.

As our businesses evolve, we have also aligned our
programs to ensure that we have best-fit insurance
facilities that enable us to access competitive
markets with better coverage. This alignment
helped us achieve an optimal balance in retaining
and transferring risks, and lower our Total Cost of
Insurable Risks by 15% in 2015.

In addition, a Group Financial Risk Management
Framework has been put in place to cover interest
rate, foreign exchange, credit, refinancing and
liquidity risks.

In March 2015, your Board approved a total cash
dividend of P1.11 per share. Total dividends paid
amounted to P6.2 billion, in line with our 33%
minimum dividend payout policy. This translated to a
dividend yield at the time of 1.9%.

For 2016, we anticipate new opportunities for growth,
both at home and in the region but we also expect the
business landscape to continue to evolve on all fronts.
We are gearing up financially and preparing for these
changes, mindful of our mission to create long-term
value for all our stakeholders.

Thank you to our various stakeholders – including our
partners, financial institutions, and suppliers – for
your continued support to the Group. To you, our
dear shareholders, thank you for your unwavering
confidence and trust in your entire management team.



Earnings and Dividends
(in Php billions)

Dividend Per Share (DPS) and Dividend Yield

Share Price (Peso/Share)