| | | | Message from the Chairman | | | History | | | Vision, Mission & Values | | | Board of Directors | | | Organizational Chart | | | Conglomerate Structure | | | Other Officers | | | Board Committees | | | AOI & By-Laws | | | | |
| Message from the Chairman
The year 2017 was marked by trailblazing achievements, unprecedented in the history of Alliance Global Group, Inc (AGI). Our subsidiaries continued to record new performance milestones, surpassing everyone’s expectations.
Overall, we have made further inroads to become a uniquely diversified global conglomerate, a position we have deliberately carved out for ourselves less than a decade ago when we decided to pursue an aggressive expansion program. AGI ended 2017 with a net income of P21.8 billion, reflecting a compounded annual growth rate of 16% for the past 10 years as consolidated revenues reached P141.6 billion. Attributable profit stood at P14.9 billion, also growing at an annual clip of 16% for the same period.
Our property arm, Megaworld Corporation, posted another stellar performance as net income reached P13.2 billion on revenues of P50.1 billion. It attained its target of launching 20 real estate projects during the year and then exceeded expectations with reservation sales of P105 billion, a first in its 28-year history. Megaworld now has 667 residential towers, 57 office buildings and 15 lifestyle malls all over the Philippines, and still has over 4,400 hectares in 30 cities for future development.
Its rental income amounted to P11.8 billion, well on its way to achieving its target of P20 billion in 2020. As of end-2017, Megaworld’s inventory of office and retail spaces totals 1.3 million square meters.
Its world-class and high-tech office buildings are home to a number of multinationals belonging to the Fortune 500 companies. Megaworld’s distinctive lifestyle malls offer a range of unique features and experiences, having established themselves as major retail, dining and entertainment destinations.
AGI continues to gain headway in the tourism industry as our hotel operations raked in P4.2 billion in revenues. The Group currently has a total capacity of 3,200 room keys spread over a diversified portfolio of renowned global hotel brands under Travellers International Hotel Group, Inc. (Travellers) and our own prestigious hotel brands under Megaworld. Our target is to bring this number to 12,000 keys within the next three to five years.
In the near-term, the Group is set to expand its international hotel brands with the addition of the Hilton, Sheraton, Okura and Ritz-Carlton to complement our existing Marriott and Holiday Inn hotels. Our own hotel brands also got a boost with the launch in 2017 of Savoy Hotel in Boracay, allowing us to expand our strategic foothold in one of the country’s prime tourist destinations. Savoy is a welcome addition to our existing hotel brands Richmonde and Belmont.
Our spirits business through Emperador Inc. registered total revenues of P42.7 billion in 2017 as it continued its brandy dominance in the local and international markets, while also expanding its presence in the global whisky segment through Scotland-based Whyte and Mackay (WMG).
WMG has been breaking new records in sales, making its mark as a significant growth driver of Group performance. This was led by its single malt whisky brands, The Dalmore and Jura, which have been enjoying brisk sales in Europe and Asia, mainly in China. In 2017, WMG launched a new blended malt brand, Shackleton, which gained strong market response. It is scheduled for broader distribution in 2018.
Emperador has also strengthened its portfolio of world-renowned brandies through Bodegas Fundador, whose premium brands like FundadorSupremo 18YO won the 2017 “Brandy of the Year” award. To further grow its dominance in the global brandy category, Emperador also acquired the Domecq brandies and wines during the year.
In the Philippines, the “Tama KaDyan” campaign was launched to help improve sales and strengthen the position of our flagship Emperador Light as brand of choice for Filipinos.
Our leisure and entertainment business under Travellers saw Resorts World Manila (RWM) continue to set the benchmark for gaming thrills and excitement. In 2017, Travellers, a joint venture between AGI and Genting Hong Kong, recorded P21.1 billion in revenues.
In the coming months, Travellers is set to unveil the Grand Wing, which we believe will raise the bar in the industry.Once fully operational, the 14,000-square meter premium gaming facility under Phase 3 Expansion Program should help regain Travellers’ leading position in the country’s fast-growing gaming sector.
Our quick service restaurant business, Golden Arches Development Corporation (GADC), marked another sterling year as net income reached P1.7 billion on revenues of P25.5 billion. This was attributed to the healthy 5.8% growth in systemwide same-store sales. Also, in 2017, GADC opened 52 McDonald’s restaurants all over the country, bringing its total store count to 566 and making inroads in new territories such as Antique, Sorsogon, Masbate and Agusan del Sur. McDonald’s is set to bring its number of restaurants in the Philippines to 1,000 within the next few years, riding high on its popular brand and growing patronage.
AGI’s unique and diversified business has now come to a whole new level, with its foray into transport infrastructure development through our new wholly-owned subsidiary, Infracorp Development, Inc. (Infracorp). Its first undertaking is a 2-kilometer Skytrain monorail project that will link the MRT Guadalupe Station to our township in Uptown Bonifacio, thereby improving access to and in Fort Bonifacio. The project is expected to be operational by 2021.
Infracorp, through AGI, is also a party to the mega consortium that will rehabilitate the Ninoy Aquino International Airport (NAIA). The project is expected to bring the NAIA annual capacity to 47 million passengers by 2020 and then raise this further to 65 million by 2022.
Through the years, AGI has banked on the unwavering commitment of all our stakeholders to sustain corporate growth while contributing significantly to the country’s economy. I once again rely on this dedication to galvanize our various subsidiaries in being more innovative in developing and implementing strategic initiatives in the pursuit of our business objectives for 2018 and beyond.
Andrew L. Tan
Chairman and Chief Executive Officer
Alliance Global Group, Inc. and Megaworld Corporation
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History
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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Vision & Mission
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, 67 years old, Filipino, has served as Director since 2003 and Chairman of the Board and Chief Executive Officer since September 2006. Previously, he was Vice-Chairman of the Board from August 2003 to September 2006. He pioneered the live-work-play-learn model in the real estate development through the Company’s integrated township communities, fueling the growth of the business process outsourcing (BPO) industry, food and beverage, and quick service restaurants industries. He also holds positions in the following other listed companies:
Listed Company |
Position |
Date First Elected |
Date Last Elected |
No. of Terms/Years |
Emperador Inc. |
Chairman |
Aug 2013 |
May 16, 2016 |
3 |
Megaworld Corporation |
Chairman and President |
Aug 1989 |
Jun 17, 2016 |
27 |
Travellers International Hotel Group, Inc. |
Director |
Jul 2008 |
Jun 10, 2016 |
8 |
Global-Estate Resorts, Inc. (subsidiary of Megaworld) |
Chairman |
Jan 2011 |
Jun 30, 2016 |
5 |
Empire East Land Holdings, Inc. (subsidiary of Megaworld) |
Chairman |
Jul 1994 |
Jun 14, 2016 |
22 |
Mr. Tan is concurrently the Chairman of the Board and President of Megaworld Land, Inc., Megaworld Globus Asia, Inc., Megaworld Newport Property Holdings, Inc., Mactan Oceanview Properties and Holdings, Inc., Richmonde Hotel Group International Limited, The Bar Beverage, Inc. and Yorkshire Holdings, Inc. He is also the Chairman of Alliance Global Group Cayman Islands, Inc., Alliance Global Brands, Inc., Emperador Distillers, Inc., Suntrust Properties, Inc., Adams Properties, Inc., Consolidated Distillers of the Far East, Inc., and Townsquare Development, Inc. and sits in the boards of Eastwood Cyber One Corporation, Megaworld Cayman Islands, Inc., Forbes Town Properties & Holdings, Inc., Gilmore Property Marketing Associates, Inc., Megaworld Central Properties, Inc., Raffles & Company, Inc., , The Andresons Group, 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., 73 years old, Filipino, has served as Vice Chairman and Independent Director since September 2007. He is the President of Philippine Exporters Confederation, Inc. (“PHILEXPORT”) and Honorary Chairman-Treasurer of the Philippine Chamber of Commerce & Industry. He is concurrently the Vice-Chairman of the Export Development Council, and a member of the board of the Employer’s Confederation of the Philippines, Philippine Estate, Manila Exposition Complex, Inc., Holy Angel Memorial Park and Philippine International Trading Corp., Calapan Ventures, Inc. and Jolliville Holdings Corporation. He is also an Independent Director of Forum Pacific, Inc. 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, 55 years old, Filipino, has served as President and Chief Operating Officer of the Company since February 2007. He also holds position in the following other listed companies:
Listed Company |
Position |
Date First Elected |
Date Last Elected |
No. of Terms/Years |
Emperador Inc. |
Director |
Aug 2013 |
May 16, 2016 |
3 |
Megaworld Corporation |
Director/Executive Director |
Apr 2007 |
Jun 17, 2016 |
9 |
Travellers International Hotel Group, Inc. |
Director and President |
Jun 2008 |
Jun 9, 2016 |
7 |
Travellers International Hotel Group, Inc. |
Chief Executive Officer |
Oct 2014 |
Oct 2014 |
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He is concurrently President and Director of 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 Master’s Degree in Business Administration for Finance and Business Policy from the University of Chicago.
Winston S. Co
Mr. Co, 58 years old, 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. He holds position in the following other listed company:
Listed Company |
Position |
Date First Elected |
Date Last Elected |
No. of Terms/Years |
Emperador Inc. |
President and Director |
Aug 2013 |
May 16, 2016 |
3 |
His field of expertise is in 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., and 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, 65 years old, Filipino has served as Director and Treasurer since February 2007. She also holds positions in the following other listed companies:
Listed Company |
Position |
Date First Elected |
Date Last Elected |
No. of Terms/Years |
Emperador Inc. |
Director and Treasurer |
Aug 2013 |
May 16, 2016 |
3 |
Megaworld Corporation |
Director |
Aug 1989 |
Jun 17, 2016 |
27 |
Megaworld Corporation |
Treasurer |
Aug 1989 |
Jun 1995 |
6 |
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., New Town Land Partners, Inc., and Emperador Distillers, Inc. Ms. Tan graduated from St. Scholastica’s College with a degree in Nutrition.
Kevin L. Tan
Mr. Tan, 36 years old, Filipino, is currently the Executive Director of the Company and a director since 20 April 2012. He holds position in the following other listed companies:
Listed Company |
Position |
Date First Elected |
Date Last Elected |
No. of Terms/Years |
Global-Estate Resorts, Inc. |
Director |
Jun 24, 2014 |
Jun 30, 2016 |
2 |
Empire East Land Holdings, Inc. |
Director |
Jun 09, 2015 |
Jun 14, 2016 |
1 |
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 a Director of Emperador Distillers, Inc., and of 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, 75 years old, Filipino, has served as an Independent Director since August 2001. He also holds position in the following other listed companies:
Listed Company |
Position |
Date First Elected |
Date Last Elected |
No. of Terms/Years |
Emperador Inc. |
Independent Director |
Aug 2013 |
May 16, 2016 |
3 |
Empire East Land Holdings, Inc. |
Independent Director |
Jun 2007 |
Jun 14, 2016 |
9 |
Suntrust Home Developers, Inc. |
Independent Director |
Oct 2012 |
Oct 27, 2015 |
3 |
He is concurrently Director of First Capital Condominium Corporation, a non-stock non-profit corporation. He is also the Chairman of Ruru Courier Systems, Inc. and Vice Chairman of Public Relations Counselors Foundations of the Philippines, Inc. 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 others. 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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Organizational Chart
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Conglomerate Structure
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Other Officers
Dina D.R. Inting
First Vice President – Finance
Ms. Inting has served as First Vice President for Finance since January 1996 and at present its Compliance Officer and Corporate Information Officer. She is currently director of ProgreenAgricorp, Inc. and Compliance Officer and Corporate Information Officer of Emperador Inc. She gained an extensive experience in the fields of audit, comptrollership, treasury, finance, branch operations and personnel management from her previous employments. She is a Cum Laude graduate of Bachelor of Science in Commerce major in Accounting, Honors Program, at the Philippine College of Commerce (Polytechnic University of the Philippines), holds a certificate in Organizational Development from the Ateneo de Manila University, and is a Certified Public Accountant.
Dominic V. Isberto
Corporate Secretary
Mr. Isberto has served as the Corporate Secretary since September 14, 2007. He is the Corporate Secretary and Assistant Corporate Information Officer of Global-Estate Resorts, Inc. He is also the Corporate Secretary of Emperador Inc., Twin Lakes Corporation, Eastwood City Estates Association, Inc., Suntrust Properties, Inc. and Fil-Estate Properties, Inc. He also serves as Assistant Corporate Secretary of Adams Properties, Inc. Mr. Isberto has experience in litigation and banking and corporate law. He has a degree in Management Engineering from the Ateneo de Manila University and obtained his Bachelor of Laws degree from the University of the Philippines.
Rolando D. Siatela
Assistant Corporate Secretary
Mr. Siatela has served as Assistant Corporate Secretary since August 30, 2002. He is a Director of Asia Finest Cuisine, Inc. He is the Corporate Secretary of ERA Real Estate Exchange, Inc., ERA Real Estate, Inc., Oceanic Realty Group International, Inc., and Suntrust Home Developers, Inc. He concurrently serves as Asst. Corporate Secretary of Megaworld Corporation, Emperador Inc., Global-Estate Resorts, Inc. (formerly Fil-Estate Land, Inc.), and Suntrust Properties, Inc. He was employed as Administrative and Personnel Officer with Batarasa Consolidated, Inc. and served as Assistant Corporate Secretary and Chief Administrative Officer of The Andresons Group, Inc.
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Corporate Governance Committee
The Company’s Corporate Governance Committee is tasked to assist the Board in the performance of its corporate governance responsibilities. It shall oversee the implementation and periodic review of the corporate governance framework, oversee periodic performance evaluation of the Board, recommend continuing relevant education/training programs for directors, assignment of tasks/projects to board committees, succession plan for the board members and senior officers, and remuneration packages for corporate and individual performance, determine the nomination and election process for the Corporation’s directors and the general profile of board members, and ensure that the nomination and election policy and procedures are conducted properly.
It is composed of at least three (3) members, two of whom are independent directors, including the Chairman.
Its Members are:
- Alejo L. Villanueva Jr. (Independent Director) - Chairman
- Sergio R. Ortiz-Luis, Jr. (Independent Director)
- Kevin Andrew L. Tan
Board Risk Oversight Committee
The Company’s Board Risk Oversight Committee is responsible for the oversight of the Corporation’s Enterprise Risk Management system to ensure its functionality and effectiveness. It shall develop, oversee the implementation, and evaluate a formal enterprise risk management plan, advise the Board on its risk appetite levels and risk tolerance limits, and provide oversight over Management’s activities in managing credit, market, liquidity, operational, legal and other risk exposures of the corporation.
It is composed of at least three (3) members of the Board, the majority of whom should be independent directors, including the Chairman. The Chairman should not be the Chairman of the Board or of any other committee.
Its Members are:
- Sergio R. Ortiz-Luis, Jr. (Independent Director)
- Alejo L. Villanueva Jr. (Independent Director) - Chairman
- Kevin Andrew L. Tan
Audit Committee
The Company’s Audit Committee has oversight capability over the Corporation’s financial reporting, internal control system, internal and external audit processes, and compliance with applicable laws and regulations. It is responsible for assessing the integrity and independence of external auditors. It monitors and evaluates the adequacy and effectiveness of the Corporation's internal control system including financial reporting control and information technology security, and review the reports submitted by the internal and external auditors.
It is composed of at least three (3) members of the Board who shall preferably have accounting, auditing, and finance backgrounds, majority of whom shall be independent directors and another with audit experience. The chair of the Audit Committee shall be an Independent Director.
Its Members are:
- Alejo L. Villanueva Jr. (Independent Director) - Chairman
- Sergio R. Ortiz-Luis, Jr. (Independent Director)
- Andrew L. Tan
Related Party Transaction Committee
The Company’s Related Party Transaction Committee is tasked with reviewing all material related party transactions of the Corporation. It evaluates on an ongoing basis existing relations between and among business and counterparties, ensures that appropriate disclosure is made, and/or information is provided to regulating and supervising authorities relating to the Corporation’s RPT exposures, and policies on conflicts of interest or potential conflicts of interest, ensures that transactions with related parties, including write-off of exposures are subject to a periodic independent review or audit process and oversees the implementation of the system for identifying, monitoring, measuring, controlling, and reporting RPTs, including a periodic review of RPT policies and procedures.
The Committee is composed of at least three directors, two of whom should be independent, including the Chairman.
Its members are:
- Alejo L. Villanueva Jr. (Independent Director) - Chairman
- Sergio R. Ortiz-Luis, Jr. (Independent Director)
- Andrew L. Tan
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