DE CHAVEZ, Michaela P.

General Mathematics 11

Grade 11 Florida

Ms. Queen Charlotte Andaya

ABOITIZ EQUITY VENTURES, INC.

Aboitiz Equity Ventures is the publicly-listed holding and
management company of the Aboitiz Group. It was incorporated
in September 11, 1989 as Cebu Pan Asian Holdings, Inc. but was
later renamed to its present corporate name in 1994. Its core
businesses are categorized into five: power distribution and
generation (Aboitiz Power Corporation), financial services
(Union

Bank

manufacturing

and

Cebu

(Pilmico

City

Foods

Savings

Bank),

Corporation),

food

transport

(Aboitiz Transport System and Accuria, Inc.), and portfolio investments (Cebu Praedia
Development Corporation, and aviation through AEV Aviation, Inc.) AEVs largest shareholder is the
Aboitiz & Company, Inc., which currently holds 47.64% of the company. As of May 4, 2011, AEV has a
total market capitalization of P223.35 billion and share price of P40.05.

Entrepren

Details that pushes me to Invest in this Company

As an Investor, I may be looking at different factors where in my money can grow a lot
possible. I am a type of Investor wherein I dont look at one detail, I look on different ways where can
my money grow. Aboitiz Equity Venture, Inc. owns different company and that what took me in
pushing me to invest in this company.
Power - AboitizPowers Generation Business Group is one of the largest private power
producers in the Philippines.
Banking and Financial Services - UnionBank ranks 8th largest in resources & loans, 7th in
deposits, and 6th in capital as of end 2015. It offers a wide range of quality financial products and
services to retail customers, middle market and corporate clients, as well as major government
institutions.
Food - Pilmico is among the top three flour milling companies in the Philippines, and is also a
major player in the animal feeds and swine production sectors. Pilmico is committed to ensuring the
highest level of quality in its products and throughout all aspects of its operation; thereby
guaranteeing market competitiveness and increased customer satisfaction.
Land - AboitizLand is engaged in the design and development of distinct communities for
residential, industrial, and commercial use. As a national player in the land sector, it continues to
expand geographically in key growth areas.

Infrastructure - The Republic Cement Group, AEVs partnership with CRH plc, is the
countrys second largest local cement manufacturing and distribution company. It operates six
cement facilities across Luzon, Visayas, and Mindanao.
Corporate Social Responsibilties - The Aboitiz Foundation is the corporate foundation of the
Aboitiz Group. Established in 1988, it implements corporate social responsibility interventions
especially in communities where Aboitiz companies operate. The Foundation focuses its efforts on
education, enterprise development, environment, and health & well-being.

Why did you invest in this company? How much did you invest? Why?
I've been hearing about Aboitiz Group of Companies since I was a child. Their
company owns various sub-companies and still, ranks as one of the largest earning and
serving company. Their company doesn't focus on one business, that's what I like about
their company like if they failed on a certain field, other sub-company will not eventually
fail.
Aboitiz Equity Ventures Inc., the holding company of the Cebu-based Aboitiz clan,
delivered a solid performance in the first half, fueled by the strong growth in its power
business and contributions from its infrastructure unit. AEVI posted a net income of
P10.5 billion in the six months through June, up 34 percent year on year.
Our two-pronged strategy of organic growth in our existing businesses and
diversifying our income streams from our fifth leg infrastructure-related businessesis
on track and paying off. We are very pleased with the strong contribution of our cement
business and the prospects of infrastructure moving forward, said AEV president
Erramon Aboitiz.
Aboitiz Equity Ventures Inc. grew its first semester net profit by 34 percent yearon-year to P10.5 billion on the back of higher earnings contribution from its power and
banking businesses. Flagship unit Aboitiz Power Corp. ended the first half of the year
with an income contribution to AEV of P7.7 billion, up by 24 percent year-on-year as it
unlocked higher profits from power generation and distribution. Banking arm Union
Bank of the Philippines and subsidiaries posted P1.9 billion of income contribution to
AEV, surging by 121 percent year-on-year due to the growth in core recurring income.
On the other hand, earnings from the food business under the Pilmico group were flat
while the earnings from the real estate business AboitizLand declined. The power
business thus accounted for 67.1 percent of earnings, followed by banking which had a
share of 16.8 percent. Food, infrastructure and real estate businesses accounted for 7.8
percent, 7.6 percent and 0.7 percent, respectively. Aboitiz Equity Ventures, Inc. is a
holding and management company. I will be investing 25,000,000 pesos and it will be
divided among Aboitiz Equity Venture's Sub-companies, since it is still run and owned by
different chairmen. 4.1m pesos will be alloted among its subsidiaries are engaged in
various business activities in the Philippines, including power generation and
distribution, food manufacturing, banking and financial services, real estate

development and infrastructure. The Company also has portfolio investments in other
companies.
The Company's segments are power, which is engaged in power generation and
sale of electricity; food manufacturing, which is engaged in the production of flour and
feeds and swine breeding; financial services, which is engaged in banking and money
remittance operations; real estate, which is engaged in real property development for
sale and lease; infrastructure, which is engaged in the production of cement and other
building materials and in the supply of treated bulk water, and the parent company and
others, which include the operations of the Company and the service provider
subsidiaries that cater mainly to the Group. After some studies and inspecting their
financial reports and background and one of their goals is growing profitably and I have
decided that I really want to be a part of their company and the risk is not that high
upon investing.