| Message from the Chairman | History | Vision and Mission | Board of Directors |
 Despite the lethargic GDP growth in 2011, Alliance Global Group, Inc. (AGI) continued to hit record levels for the year, even substantially improving on your Company’s erstwhile record performance the previous year.
Our major business segments—real estate through Megaworld Corporation (Megaworld); food and beverage through Emperador Distillers, Inc. (EDI); quick-service restaurants through Golden Arches Development Corporation (GADC), which holds the local franchise for McDonald’s fastfood restaurants; and tourism entertainment and gaming through Travellers International Hotel Group, Inc. (Travellers International)—all produced record figures as they outdid themselves and came up with exceptional achievements for the year.
Our total revenues increased by a huge 48.6% to P66.1 billion in 2011 from P44.5 billion the previous year, due mainly to a 54.9% growth in the sales of consumer goods, a 37.5% increase in the rendering of services, and a hefty 46.5% growth in share in net profits of associates and joint ventures.
As in previous years, our real estate business, through Megaworld, made the highest revenue contribution this year with 45%. This was followed by EDI’s food and beverage business with 28%, and GADC’s quick-service restaurant business with 18%. In particular, real estate current sales accounted for 24.8% of total revenues while consumer product sales contributed 43.7%. Real estate rental income comprised 5.8% of total revenues.
AGI’s net profit for 2011 hit a record level of P14.7 billion, a huge increase of 55.3% from the P9.5-billion net income reported one year ago. This record performance came on the back of the strong operating results of AGI’s food and beverage and real estate segments and the consolidation income from the acquisition of shares of new subsidiary Global-Estate Resorts, Inc. (GERI). Even without the P3.1-billion acquisition gain from GERI, however, net profit jumped by 22.3% at yearend.Net profit attributable to owners of the parent company grew by 68%, hitting P11.6 billion for the year from P6.9 billion in 2010.
I am really proud of what we have accomplished so far and prouder still of how our decisions have been proven prudent and well-thought-out time and again.
Our efforts to become a globally recognized conglomerate with diverse business segments that provide first-rate services have not been in vain for we have been rewarded with record gains that can only come from a truly world-class assemblage.
For one thing, Megaworld continued to lord it over in the real estate industry as it sold 10,451 residential units worth around P37.1 billion in 2011, making it the biggest residential developer in the country for the year. It also continued to proudly hang on to its tag as the leading BPO office space provider in the country. The contribution of Megaworld to the group’s bottom line every year has been substantial, to say the least.
Our other business segments have also done their share in the attainment of our objectives. EDI continued its strong showing as its revenues in 2011 doubled from the previous year’s levels. Its Emperador Brandy and The BaR flavored alcoholic drinks continued to enjoy spirited sales during the year while Emperador Light experienced increasing demand and rising sales. Moreover, our acquisition of a liquor production facility from the Philippine unit of Diageo, the world’s biggest premium drinks group, is expected to boost EDI’s production and sales. Similarly, GADC’s revenues for the year grew, coming primarily from the opening of new McDonald’s restaurants, the increase in business extensions, and the re-imaging of company-owned outlets.
In turn, Travellers International continued to thrive in the entertainment tourism industry with Resorts World Manila and its hugely successful entertainment offerings. Travellers’ new project, Resorts World Bayshore City, is currently under construction and is poised to be another world-class venue for entertainment and recreation.
Our newest subsidiary, Global-Estate Resorts Inc. (GERI), has already made headway into the Philippine integrated tourism sector and is currently developing several major tourism projects which would significantly contribute to our revenues in the long-term. Through GERI, we will be developing over 1,000 hectares of prime land in Boracay, Tagaytay and Nasugbu, Batangas into world-class tourism estates.
I am more than happy to report that our business strategies are working and our investments are starting to pay off. Through the years, we have built strong brands that have withstood challenges in the global and local economic arena and have eventually become leaders in their respective markets. In the coming years, we will continue to capitalize on our strengths, earn the profit we deserve, and invest whatever we make in new world-class businesses that will not only provide greater revenues for the group but will also generate more jobs for the people and help the country’s economy to grow.
Andrew L. Tan
Chairman and Chief Executive Officer
Alliance Global Group, Inc. and Megaworld Corporation
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AGI was incorporated in the Philippines on October 12, 1993 and began operations in 1994 as a glass container manufacturer after it acquired a glass manufacturing plant in Canlubang, Laguna. After its listing on the PSE in 1999, the Company obtained approval from the Philippine SEC to broaden its primary business and become a holding company. That same year, the Company began acquiring a diverse group of businesses, primarily in the real estate and food and beverage industries, as set out below:
- In August 2000, the Company's wholly-owned subsidiary, AGB, acquired McKester Pik-Nik International Limited and took over the international trade and distribution business for several branded consumer products.
- In February and October 2001, the Company acquired two Philippine-based real estate companies, Tradewind Estates and First Centro, Inc., respectively.
- In June 2003, the Company bid for and was awarded approximately 25 hectares of the land in Fort Bonifacio, Taguig, Metro Manila, now known as McKinley Hill, that were owned by the Bases Conversion and Development Authority ("BCDA"), a Government agency organized to arrange for the disposal of Government-owned land occupied by military bases. The Company subsequently entered into a joint development agreement with Megaworld in July 2003 to develop this property.
- In March 2005, AGI entered the quick service restaurants industry through the acquisition of 49% of the common shares in GADC, a company owned and controlled by Mr. George Yang, the then-Chairman and President of AGI, from McDonald's Restaurant Operations, Inc. ("MRO").
- In February 2007, AGI acquired EDI, a company that had previously acquired the brandy manufacturing assets and related brands of Consolidated Distillers, which is owned and controlled by the Tan Family.
- In February 2007, AGI acquired an additional 26% of the shares in Megaworld, a company founded by Mr. Andrew Tan in 1989, in which it already owned 21% of the shares through its wholly-owned subsidiary New Town Land Partners, Inc. Megaworld was listed on the PSE on June 15, 1994.
- In February 2007, the Company was reorganized to consolidate various businesses controlled by Mr. Andrew Tan, who had been appointed Chairman and Chief Executive Officer of the Company in September 2006.
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We are priming ourselves for international competitiveness in the new century by consistently delivering products and services that meet the quality standards of markets both here and abroad. Through continuing research and innovation, we will enhance the company's ability to gain customer satisfaction and goodwill and build on our market franchise.
As a world-class Filipino conglomerate, we will be an active partner in national economic development through the pursuit of excellence in our core businesses and investment in industries that offer more room for profitability and growth.
As a matter of policy, we will always adapt to the dynamics of the market. Through export development and competitive pricing, we will enhance our competitiveness in an ever-expanding marketplace.
We will constantly strive to enhance shareholder value by making our products and services desirable, accessible and affordable to the target consumers in the Philippines and abroad. Through a continuing reward program, out stockholders will be entitled to an immediate share in the company's gains in the form of stock or cash dividends.
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Board of Directors
Andrew L. Tan
Mr. Tan, Filipino, has served as director since 2003 and Chairman of the Board since September 2006. Previously, he was Vice-Chairman of the Board from August 2003 to September 2006. He has broad experience in the real estate, food and beverage, and quick service restaurants industries. Mr. Tan is concurrently the Chairman of the Board and President of Megaworld Corporation, Megaworld Land, Inc., Megaworld Globus Asia, Inc., Megaworld Newport Property Holdings, Inc., Mactan Oceanview Properties and Holdings, Inc., Richmonde Hotel Group International Limited and Yorkshire Holdings, Inc. He is also the Chairman of Alliance Global Group Cayman Islands, Inc., Empire East Land Holdings, Inc., Travellers International Hotel Group, Inc., Alliance Global Brands, Inc., and Emperador Distillers, Inc. and serves on the boards of Eastwood Cyber One Corporation, Megaworld Cayman Islands, Inc., Forbes Town Properties & Holdings, Inc., Gilmore Property Marketing Associates, Inc., Eastwood Cyber One Corporation, Megaworld Central Properties, Inc., Raffles & Company, Inc., The Andresons Group, Inc., Consolidated Distillers of the Far East, Inc., Townsquare Development, Inc., and The Bar Beverage, Inc. He is also the Vice-Chairman and Treasurer of Golden Arches Development Corporation and Golden Arches Realty Corporation and a Director and Treasurer of Andresons Global, Inc. Mr. Tan graduated Magna Cum Laude from the University of the East with a degree of Bachelor of Science in Business Administration.
Sergio R. Ortiz-Luis, Jr.
Mr. Ortiz-Luis, Jr., Filipino, has served as Vice-Chairman and Independent Director since September 2007. He is concurrently the President of the Employers Confederation of the Philippines ("ECOP") and the Philippine Exporters Confederation, Inc. ("PHILEXPORT") and a Commissioner of the Social Security System. He is also an Honorary Chairman of the Philippine Chamber of Commerce & Industry. He is concurrently Chairman of the Integrated Concepts & Solutions, Inc., Vice-Chairman of the Export Development Council, and a member of the board of Waterfront Philippines, Inc., Manila Exposition Complex Inc., Universal LRT Corporation, and Holy Angel Memorial. He was a past President of the Rotary Club of Greenmeadows, Quezon City, a Senator of the Philippine Jaycee Senate, and a member of the League of Corporate Foundation and the Council of Advisers of the Philippine National Police. Mr. Ortiz-Luis, Jr. has broad experience in business management/administration and in the export sector. He obtained his Bachelor of Arts and Bachelor of Science in Business Administration and Masters of Business Administration from the De La Salle College and was awarded Honorary Doctorates in Humanities and Business Technology by the Central Luzon State University and Eulogio Rodriguez Institute of Science and Technology, respectively.
Kingson U. Sian
Mr. Sian, Filipino, has served as President and Director of the Company since February 2007. He is currently a member of the Board of Megaworld Corporation and is its Executive Director. He is concurrently Director and President of Travellers International Hotel Group, Inc., Forbestown Properties Holdings, Inc., and Eastwood Cyber One Corporation and a Director of Alliance Global Group Cayman Islands, Inc. He is also Chairman and President of Prestige Hotels & Resorts, Inc. and is the Chief Operating Officer of Megaworld Land, Inc. Mr. Sian was formerly a Vice- President of FBP Asia Ltd/First Pacific Bank in Hongkong from 1990 to 1995 and, prior to that, was connected with Citicorp Real Estate, Inc. in the United States from 1988 to 1990. He graduated from the University of the Philippines with the degree of Bachelor of Science in Business Economics. He obtained his Masters Degree in Business Administration for Finance and Business Policy from the University of Chicago.
Winston S. Co
Mr. Co, Filipino, has served as Director since 1998. He previously served as Vice-Chairman of the Board from November 1999 to August 2003 and Chairman from June 1998 to October 1999. His field of expertise is finance and marketing of consumer products. He is concurrently Chairman and President of New Town Land Partners, Inc. and Chairman of Anglo Watsons Glass, Inc. He is also a Director and President of Emperador Distillers, Inc., a Director of Alliance Global Brands, Inc., Forbes Town Properties & Holdings, Inc., McKester Pik-Nik International Limited, Raffles & Company, Incorporated, and The Bar Beverage, Inc. and Senior Vice-President of The Andresons Group, Inc. Mr. Co is a Magna Cum Laude graduate of Jose Rizal College with a Bachelor of Science in Commerce. He is a member of the Philippine Association of National Advertisers and Philippine Marketing Association.
Katherine L. Tan
Ms. Tan, Filipino has served as Director and Treasurer since February 2007. She has also served as a member of the board of Megaworld Corporation since 1989 and likewise served as its Treasurer from 1989 to 1994. She is concurrently Chairman and President of Andresons Global, Inc. and Choice Gourmet Banquet, Inc., Director and President of The Andresons Group, Inc., Consolidated Distillers of the Far East, Inc., and Raffles & Company, Inc., and Director and Treasurer of Alliance Global Brands, Inc., Yorkshire Holdings, Inc. and New Town Land Properties, Inc., and Emperador Distillers, Inc. Ms. Tan graduated from St. Scholastica's College with a degree in Nutrition.
Kevin L. Tan
Mr. Tan, Filipino, was elected as a Director on 20 April 2012 to serve the unexpired term of Mr. Renato M. Piezas. Mr. Tan, has over 11 years of experience in retail leasing, marketing and operations. He currently heads the Commercial Division of Megaworld Corporation, which markets and operates the Megaworld Lifestyle Malls, including Eastwood Mall and The Clubhouse at Corinthian Hills in Quezon City, Venice Piazza at McKinley Hill and Burgos Circle at Forbestown Center, both in Fort Bonifacio, California Garden Square in Mandaluyong City, Newport Mall at Resorts World Manila in Pasay City, and Lucky Chinatown Mall in Binondo, Manila. He is concurrently Director of Emperador Distillers, Inc. Alliance Global Brands, Inc., Anglo Watsons Glass, Inc. Yorkshire Holdings, Inc., The Bar Beverage, Inc., Emperador Brandy, Inc., New Town Land Partners, Inc., and Consolidated Distillers of the Far East, Inc. He holds a degree in Business Administration major in Management from the University of Asia and the Pacific.
Alejo L. Villanueva, Jr.
Mr. Villanueva, Filipino, has served as an Independent Director since August 2001. He is concurrently an Independent Director of Empire East Land Holdings, Inc. and a Director of First Capital Condominium Corporation, a non-stock, non-profit corporation. He is a professional consultant who has more than twenty years of experience in the fields of training and development, public relations, community relations, institutional communication, and policy advocacy, among other fields. He has done consulting work with the Office of the Vice-President, the Office of the Senate President, the Commission on Appointments, the Securities and Exchange Commission, the Home Development Mutual Fund, the Home Insurance Guaranty Corporation, Department of Agriculture, Philippine National Railways, International Rice Research Institute, Rustan's Supermarkets, Louis Berger International (USAID-funded projects on Mindanao growth), World Bank (Subic Conversion Program), Ernst & Young (an agricultural productivity project), Chemonics (an agribusiness project of USAID), Price Waterhouse (BOT program, a USAID project), Andersen Consulting (Mindanao 2000, a USAID project), Renardet S.A. (a project on the Privatization of MWSS, with World Bank funding support), Western Mining Corporation, Phelps Dodge Exploration, and Marubeni Corporation. Mr. Villanueva obtained his bachelor's degree in Philosophy from San Beda College, summa cum laude. He has a master's degree in Philosophy from the University of Hawaii under an East-West Center Fellowship. He also took up special studies in the Humanities at Harvard University. He studied Organizational Behavior at INSEAD in Fontainebleau, France. He taught at the Ateneo Graduate School of Business, the UST Graduate School, and the Asian Institute of Journalism.
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