Dec. 08-Jan. 09 Available online at www.benpres-holdings.com Christmas greetings from OML, MML and EL3 ...p. 5 Int’l banks show Lopez Group reiterates CSR commitment support for First at Clinton Global Initiative Meeting Gen, First Gas...p. 3 CHAIRMAN Oscar M. Lopez (OML) reiterated the Chairman Lopez and daughter Rina Lopez Group’s commitment to pursue corporate social receive the CGI Certificate of responsibility (CSR) projects that will improve the lives Acknowledgment presented by former of the marginalized, especially in causes for the environ- US President Clinton to Knowledge ment and education. Channel. He announced twin donations worth almost P420 million as the group’s “Commitment to Action” during the first Clinton Global Initiative (CGI) Asia Meeting in Hong Kong in early December. At the same time, the Knowledge Channel Foundation Inc. (KCFI) headed by Rina Lopez-Bautista was one of the six models of commitments presented by former US President Bill Clinton at the closing ceremonies of the CGI meet. Knowledge Channel received the highest commenda- tions from the former US President for its pioneering efforts to provide poor and marginalized but bright chil- dren in far-flung areas in the country free access to com- puter/Internet education. Clinton said the KCFI program should be replicated elsewhere in the world. “I would like to compliment them for what they’re doing A look back at 2008…p. 5 and for others to replicate this in their countries,” he said. Turn to page 7 PHOTO: ROSAN CRUZ ABS-CBN goes beyond TV WHO would have thought, back in Only a year later, in 1958, ABS- the mid-1950s, that a couple of fledg- CBN rolled out what would be the ing radio stations and a TV network first of many innovations under Don under the leadership of a man not Ening and his son Eugenio “Geny” yet 30 years old would grow into the Lopez Jr., then 28, who was tasked country’s largest media conglomerate? to run the company: the country’s ABS-CBN Broadcasting Corp. original noontime variety show, “Stu- has since metamorphosed into an dent Canteen,” and the first TV game information and media behemoth show, “What’s My Living?” offering a veritable smorgasbord of ey went on to give Philippine media connections: free TV, cable broadcasting a big push forward by TV, movie and music distribution, establishing the first provincial TV internet and mobile phone services, station in Cebu (1961) and airing magazines and radio. the first TV soap opera (1962), first world by changing its corporate name Under the ownership of Don Eu- colored TV broadcast (1966), and to ABS-CBN Corporation. genio “Ening” H. Lopez, the former the first marathon election coverage To drive this message home, Alto Broadcasting System (ABS) as (1967), among other firsts. ABS-CBN is now airing a TV spot the company was known when he pur- Brave new world that depicts the company’s vision chased it from the original owners in Now, 55 years later, the company beyond television. e plug was cre- A ‘Kapamilya’-style 1957 has blazed countless trails; the new has seen it fit to emphasize the fact ated by the Creative Communication owner merged ABS with his Chronicle that it has gone beyond TV and be- Management Division under Robert Christmas…p. 14 Broadcasting Network (CBN). yond the old borders to a brave new Turn to page 8 2 3 Lopezlink Dec. '08-Jan. '09 Lopezlink Dec. '08-Jan. '09 Jan. 2008-Sept. 2008 Financial Results Q3 2007 financial performance Net income/(loss) attributable to TOTAL REVENUES Banked gas use lowers equity holders of the parent ‘Magnificent 8’ ABS-CBN nanatiling malakas 2007 2008 % change 2007 2008 % change generation charge +15 P281 M P1.201 B +9 UMARANGKADA ang 16% ang total expenses. probable losses na P2.52 bi- ABS-CBN P14.43 B P16.54 B shows support for THE use of “banked” gas prised 50% of its fuel con- +14 P2.676 B (P841 M) -131 ABS-CBN Broadcasting Ang earnings before inter- lyon sapagka’t nagastos na ito Benpres P14.512 B P16.540 B by Meralco’s two natural sumption in November. For -3 P5.606 B P2.249 B -60 Corp. noong unang siyam na est, taxes, depreciation and at naibayad sa mga generation EDC P14.081 B P13.653 B gas-fired plants was respon- First Gas San Lorenzo, the US$35.6 M -64 buwan ng taon upang magtala amortization (EBITDA) ng companies at dahil sa desisyon First Gen US$0.8 B US$1.3 B +64 US$99.1 M First Gas, First Gen sible for lowering by around number stands at 60%. The -107 ng net income attributable to ABS-CBN para sa Enero- ng ERC ay baka hindi na ito FPHC P44.6 B P64.8 B +45 P3.8 B (P272 M) 45 centavos the generation cost of banked gas is more A P155.89 B P140.47 B -10 P2.80 B P2.81 B* +0.4 EIGHT international banks He added that this is I equity holders na P1.201 bily- Setyembre 2008 ay lumaki ng masingil sa mga customers. Meralco S charge that will be reflected than 50% lower than the showed strong support for not the first time that First A on, mula P1.104 bilyon. Halos 12% sa P4.433 bilyon. Itinuloy pa rin ng Meralco *After net effect of P2.52B provision for probable losses and P1.4B net over-recovery in transmission charges S in the December bills of its cost of the high-priced natu- Meralco nagpupunyagi First Gas and First Gen Gas Power Corp. (FGPC) naabot na ng ABS-CBN ang ang pagpapatibay at pagpapa- customers. ral gas that was responsible during the signing ceremony achieved a significant finan- net income nito noong buong Sa gitna ng kabi-kabilang lawig ng serbisyo nito sa pama- fundraising exercises and is al- at power plant sa Northern Ne- laban sa dolyar. Kapwa may NEW Z “Natural gas that was for the increase in the gen- for the closing of the $544- cial close amidst an adverse 2007 na P1.27 bilyon. pagsubok, kasama na ang pag- magitan ng capital expenditures ready on its way to normalizing gros; at mas mataas na royalty malalaking dollar-denominated contracted but not consumed eration charge for November million senior secured term financial environment. The Pumalo ng 15% ang con- urong ng Energy Regulatory (capex) sa halagang P4.94 bi- its financials,” sabi ni First Gen fees bunsod ng mas mataas na loans ang mga holding com- for a certain year is ‘banked’ 2008.” loan on Nov. 27, 2008. first was the closing of the solidated revenues na umabot Commission (ERC) sa imple- lyon, na mas mababa ng 3.8% sa chief finance officer Giles Puno. “deemed steam prices” para sa panies ng Lopez Group kaya for future use. Every year, n another development, I These eight interna- original $670-million debt PHOTO: BI sa P16.540 bilyon dahil sa lakas mentasyon ng inaprubahan capex noong 9M07. Inaasahang Nanatiling matibay ang electricity plants sa Leyte at hindi naiwasan ang mga foreign after the contracted quanti- Meralco reminded the public tional banks are Bank of financing for the Sta. Rita ng sale of services bunsod ng nitong bagong electricity rates, tataas pa ang capex investments business ng First Gen at ang Mindanao I/II. exchange losses para sa unang ties are consumed, the natu- to keep away from power lines Tokyo Mitsubishi, Calyon, natural gas-fired plant in OML at BIG Awards Lopez Group chairman Oscar M. Lopez (OML) pag-consolidate ng SkyCable nagpunyagi ang Meralco na ng Meralco dahil sa napipintong consolidated revenues nito Tumaas naman ang depre- siyam na buwan ng taon. ral gas plants start to utilize when installing Christmas KfW-IPEX Bank, ING, 1997 during the brink of the is honored in BizNews Asia’s 2008 Business Icons Gold (BIG) Awards bilang bahagi ng ABS-CBN at maglingkod sa customers at pagbalik ng mga self-generating noong 9M08 ay lumaki pa ng ciation at amortization dahil sa Kapwa naman tumaas ang as one of the Filipino entrepreneurs who have contributed “to the growth banked gas,” said Meralco lights or decorations. Safety Unicredit, Maybank, So- Asian crisis. ng patuloy na pagdami ng sub- gayundin sa shareholders. customers sa grid. 64.3% sa US$1.3 bilyon mula siyam na buwang amortization unaudited consolidated rev- of the country and become icons and inspirational symbols of success and vice president and utility and environment head engi- ciete Generale and Standard FRL said that despite the scribers ng ABS-CBN Global. Bagama’t bumaba ng 9.9% Tumaas ng 1.7% ang energy US$0.8 bilyon. Tumaas din ng intangible assets sa North- enues ng Benpres sa P16.540 corporate social responsibility.” Photo shows OML receiving his trophy economics head Ivanna dela neer Alfredo Ramos said that Chartered Bank. success of the gas plants and Bahagya lamang uman- ang total revenues ng Meralco sales noong 9M08, sa pangun- ng 76.2% ang income from ern Negros Geothermal Plant billion (+14%) at ng FPHC sa from Pres. Gloria Macapagal-Arroyo during the seventh anniversary Peña. among the common causes of Speaking for the eight as the power industry heads gat ang airtime revenues sa noong 9M08 sa P140.47 bilyon guna ng commercial (+3.8%) operations sa US$373 milyon. kumpara sa apat na buwang P64.8 bilyon (+45%) subali’t celebration of BizNews Asia, the country’s largest weekly business news “In the case of First Gas electricity-related fires during banks or the “Magnificent towards a competitive envi- P10.13 bilyon, o 3% na mas mula P155.89 bilyon, halos at industrial (+3.1%) custom- Gayunpaman, lubhang lumaki amortization nito noong 2007.