ANNUAL REPORT 2015 MANILA BULLETIN ANNUAL REPORT 2015 | 1 Filipino Citizens, Overseas Contract Workers, Teachers, Government Employees, Firms or Organizations wholly owned and managed by Filipinos, are welcome to buy or invest in Manila Bulletin shares and become Stockholders of The Nation’s Leading Newspaper The Manila Bulletin Publishing Corporation led by its Chairman MANILA BULLETIN CASH AND STOCK DIVIDENDS RECORD Basilio C. Yap, Vice Chairmen Former Chief Justice Hilario G. Davide Dividends Year Rate per Percentage of Jr., Former Secretary of the Department of Foreign Affairs Alberto Declared Share Dividends G. Romulo, and Dr. Emilio C. Yap III, and its members namely, Atty. Hermogenes P. Pobre, Dr. Cris J. Icban, Jr., Dr. Enrique Y. Yap, Jr., Stock Dividend 1990 0.32779 32.7790% Paciencia M. Pineda, Atty. Francis Y. Gaw, and Dr. Esperanza I. Cabral Stock Dividend 1991 0.67221 67.2210% Cash Dividend 1991 0.25000 25.0000% during the meeting of the Board of Directors held on July 9, 2015 Cash Dividend 1991 0.25000 25.0000% declared a 3% stock dividend per share or R98,015,055.00 payable Cash Dividend 1992 0.25000 25.0000% on September 2, 2015 to Stockholders of record as of August 7, 2015. Cash Dividend 1992 0.25000 25.0000% The present authorized capital of the Corporation is R6 billion Cash Dividend 1993 0.25000 25.0000% Cash Dividend 1993 0.25000 25.0000% with outstanding shares of R3,267,168,510.00. Cash Dividend 1994 0.50000 50.0000% The Manila Bulletin was established on February 2, 1900 or 115 Cash Dividend 1994 0.25000 25.0000% years ago and is the first newspaper company in the publishing Cash Dividend 1994 0.25000 25.0000% industry to go public in the Philippines. On April 18, 1990, it Stock Dividend 1995 1.00000 100.0000% Cash Dividend 1996 0.50000 50.0000% offered the general public who are Filipino Citizens, Corporations, Cash Dividend 1997 0.25000 25.0000% Cooperatives and Associations wholly-owned and managed by Cash Dividend 1997 0.25000 25.0000% Filipino Citizens, the opportunity to buy and own Manila Bulletin Cash Dividend 1998 0.25000 25.0000% shares and become Stockholders of the nation’s leading newspaper. Stock Dividend 1998 0.29890 29.8900% Cash Dividend 1999 0.25000 25.0000% Those who are interested in buying or investing on a longterm Cash Dividend 1999 0.25110 25.1100% basis and owning a minimum of 1,000 shares or more based on the Stock Dividend 2000 0.41318 41.3177% prevailing stock market price or at the seller’s price are welcome to Cash Dividend 2000 0.08682 8.6823% contact any Licensed Stockbroker of the Philippine Stock Exchange, Stock Dividend 2001 0.12500 12.5000% Cash Dividend 2001 0.07500 7.5000% Inc. by placing their purchase orders directly at: Cash Dividend 2002 0.07500 7.5000% Cash Dividend 2002 0.05000 5.0000% Philippine Stock Exchange Center Philippine Stock Exchange Plaza Stock Dividend 2003 0.06000 6.0000% Exchange Road, Ortigas Center Ayala Avenue, Stock Dividend 2004 0.120095 12.0095% Pasig City Makati City Stock Dividend 2005 0.10000 10.0000% Stock Dividend 2006 0.15000 15.0000% Tel. No. 688-7600 Tel. No. 819-4100 Stock Dividend 2007 0.1056837 10.5684% Stock Dividend 2008 0.10000 10.0000% After an investor buys shares at whatever price, the Manila Stock Dividend 2009 0.05000 5.0000% Bulletin has no control or responsibility over the price at which the Cash Dividend 2010 0.05000 5.0000% Cash Dividend 2011 0.05000 5.0000% Stockholder may wish to dispose of his shares later on or at whatever Cash Dividend 2012 0.05000 5.0000% price it may be traded in the Philippine Stock Exchange, Inc. Stock Dividend 2013 0.05000 5.0000% However, it is the policy of the present Manila Bulletin Stock Dividend 2014 0.03000 3.0000% Management to do its best to operate the Corporation with Stock Dividend declared July 9, 2015 0.03000 3.0000% profitability and to share its profits with the investors in the form of cash or stock dividends whenever and as much as feasible from the TOTAL CASH AND STOCK DIVIDENDS 832.0779% surplus profits of the Corporation. Since the Manila Bulletin went public on April 18, 1990 or 25 years ago, the Corporation has declared sixteen (16) stock dividends In case of any change of address, to ensure correct delivery of all with a total of 363.2856% and twenty-two (22) cash dividends or communications, all Manila Bulletin Stockholders are requested to a total of 468.7923% based on par value of R1.00 per share, with a immediately advise the following: total of thirty eight (38) stock and cash dividends or a grand total of 832.0779% as of July 9, 2015 (see table) The Corporate Secretary, Manila Bulletin Publishing Corporation P.O. Box 769, Manila Bulletin Building Muralla cor. Recoletos Street, Intramuros, Manila The Transfer Agent, RCBC Stock Transfer G/F Grepalife Building, 221 Sen. Gil Puyat Avenue, Makati City ANNUAL REPORT 2015 2 COMPANY PROFILE Operations 4 COMPANY POLICIES Corporate Governance Board Committees Risk Management System 7 FINANCIAL HIGHLIGHTS 8 2015 REPORT OF THE PRESIDENT Results of Operations Dividends Financial Stability Improvement of Building and Plant Facilities Production Advertising Circulation Branch Facilities Personnel Social Involvement Administration 12 BOARD OF DIRECTORS 13 EXECUTIVE OFFICERS 14 LIST OF PUBLICATIONS 16 STATEMENT OF MANAGEMENT’S RESPONSIBILITY 17 REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS AND AUDITED FINANCIAL STATEMENTS LIST OF OFFICES MANILA BULLETIN ANNUAL REPORT 2015 | 1 THE MANILA BULLETIN Company Profile The Manila Bulletin continues to flourish in the last 115 years with its partnerships with governments, businesses, shareholders, and varied stakeholders. It is the second oldest newspaper published in the Philippines and the second oldest English newspaper in the Far East. It has lived up to its reputation as “the exponent of Philippine progress” through fair and accurate news and features and in keeping the public fully informed during the most difficult and trying times. From being a shipping journal that published advertisements of shipping companies in its early years, the Manila Bulletin became a chronicler of news and inspiring stories about every Filipino —the youth and toddlers, the elderly, the farmers and fisher folks, the religious and socio-civic groups, and eminent world figures who made it into the news. Formerly “The Daily Bulletin,” Manila Bulletin’s (MB), first issue, which was job-printed by El Progreso at No. 10, Carriedo, Quiapo, Manila, appeared for the first time in the Philippines on February 2, 1900. In April, 1977, MB’s consolidated operations commenced in its With its former office edifice having been razed during the new location, a 1.2-hectare lot bounded by Muralla, Recoletos, war in 1945, the Bulletin had its plant and offices transferred and Cabildo Streets in Intramuros where the Recoletos Church from Florentino Torres Street in Sta. Cruz, Manila to the and Convent of the Augustinian Recollects once stood. Shurdut Building in Intramuros in 1956. 2 | MANILA BULLETIN ANNUAL REPORT 2015 THE MANILA BULLETIN The late Dr. Emilio T. Yap, in 1961, was unanimously elected On July 1, 2005, the Company acquired from Liwayway as the company’s director and vice-chairman. Publishing, Inc., its Tagalog daily newspaper, Balita, and weekly vernacular magazines, Liwayway, Bisaya, Hilgaynon, MB, alongside other newspapers in the country, had its and Bannawag, including their trade names. operations ceased as Martial Law was proclaimed on September 21, 1972. But after the newspaper’s former The Company is 54.20% owned by U.S. Automotive Co., publisher Brigadier General Hans M. Menzi had several talks Inc., which was also incorporated in the Philippines. and proposal presentations with then President Ferdinand E. Marcos, “The Bulletin Today” came out with a 22-page The Manila Bulletin is the pioneer in taking the first issue on November 22, 1972. giant steps to become the only broadsheet to utilize an integrated approach to a multi-level platform. Thus, it Upon the management’s recommendation, the Manila prides itself in not just being a newspaper but more so Bulletin Corporation, in 1975, decided to put up a new in being a multi-media company, harnessing the power building to have its offices and plants in one location. of technology to keep its readers and the market fully informed. In 1976, the company acquired a 1.2-hectare lot bounded by Muralla, Recoletos, and Cabildo Streets in Intramuros, The Manila Bulletin adapts and thrives in the ever-widening paving way for the construction of the company’s plants digital universe and is now present in every platform, and offices. In April, 1977, MB’s consolidated operations from print, online, mobile, LED billboards, and in every commenced in its new location, where the Recoletos screen: from desktop, laptop, tablet, smartphone, and even Church and Convent of the Augustinian Recollects once watches. stood. Four decades later, MB continues to serve the nation The Company’s Operations and now sports an ultra-modern face in the newsroom, incorporating its varied publications — Manila Bulletin, The core competence of the Manila Bulletin Publishing Tempo and Balita, and several magazines — in a seamless Corporation (the “Company”) is the business of proprietors circular-shaped editorial office for better interplay of ideas and publishers of newspapers, journals, magazines, and greater cooperation among the editorial people. periodicals, books, pamphlets, literary and art works of all Ever the innovator, the Manila Bulletin was the first Filipino kinds, and the business of proprietors and operators of the newspaper company that went public. The company has other means of mass communications.