Driven by Commitment Annual Report 2015 Some people search for hope in the dark. Many public schools in remote mountain and island communities in the Philippines are too far to gain access to electricity. Students in these communities don’t have a choice but to make do with what they have. A faint glow from a kerosene lamp or a candle is their only companion as they study their lessons at home in the darkness of night. One Meralco Foundation: Driven by Commitment b 2015 Annual Report 1 We spread the light of hope to them. Through One Meralco Foundation’s school electrification program, 120 of these off- grid schools now have access to electricity through solar technology. Over 31,000 students in these schools are now able to utilize modern tools to improve learning. One Meralco Foundation: Driven by Commitment 2 2015 Annual Report 3 What’s Inside 2015 Performance Review Driven by 6 Commitment Meralco’s commitment to Financial43 Review ensure a brighter future for Filipinos is echoed by One Meralco Foundation in its mission to ‘spread the light.’ Board44 of Trustees Reaching In. and the OMF Team Reaching Out. 8 OMF helps uplift the lives of individuals, families and communities through holistic development programs and Statement52 of Management’s by providing assistance in the Responsibility for Financial worst of times. Statements From Challenges to Opportunities 12 The Foundation sees 53Report of Independent Auditors opportunities to spread the light in the most challenging of situations. Financial55 Statements Nourishing the Roots of the Nation 16 While setting its sights on 72 building a more progressive 2015 Donors and Partners country, the Foundation starts the hard work at the bottom of the ladder, working its way up. Our journey so far The milestones of our five-year journey as a 23 foundation re-energized. One Meralco Foundation: Driven by Commitment 4 2015 Performance Review Remote50 public schools energized by our school electrification program. 14,208Students with 5,993Low income improved learning households experience after school energized. electrification. Community89 relations projects in the Meralco franchise area co- organized with Meralco business centers, sectors and 2,045 subsidiaries Youth participated 48,697 in our various youth Families directly development benefited from our various programs. social development programs. P369.8M Funds utilized for our various programs. 422Public schools participated in the Families6,249 immediately energy education helped during disaster program. response activities. Volunteer29,739 hours by 2,488 Meralco employees in various volunteerism activities. 2015 Annual Report 5 MESSAGE FROM OUR LEADERS Our social development programs were conceptualized with inclusiveness in mind. We believe that our country could only move forward if none of its people is left behind. Driven by Opportunities for a more productive life must also be given to the poor, the marginalized, the underserved sectors of our society. And so our philosophy is: if the well-off could Commitment afford to have electricity in their homes, those living below the poverty line must also be able to tap into this valuable ne Meralco Foundation is relatively young. It built resource. We take to heart the mission to make this happen. upon the pillars of the old, fortified them and expanded its core to focus on advocacies that are The Foundation’s flagship program – household Ocloser to the heart of Meralco as an electric company. electrification – has been making giant leaps toward this goal. In 2015 alone, it brought electricity to 5,993 homes The Foundation’s track record since its relaunch in 2011, of informal settlers and relocatees in the Meralco franchise as presented in this annual report, only proves that being area who either did not have the financial means to apply for young doesn’t mean being inexperienced or weak, but an electric service or were barred by legal impediments due being vibrant and creative, daring and optimistic, zealous to their landlessness. This is more than double the number and not easily fazed by obstacles. of families benefited in 2011 when the program began. In the last five years, 18,997 families were energized through In 2015, the Foundation not only delivered the promises it the program. made the year before but even exceeded its own targets. Its programs and projects have also received acclaim from Meralco is duty-bound to provide excellent service to award-giving bodies here and abroad, a heartwarming its customers in its franchise area. This does not mean, reassurance for us that we are on the right track. however, that its brand of service could not extend to the One Meralco Foundation: Driven by Commitment 6 “Meralco’s commitment to ensure a brighter future for Filipinos is Apart from these electrification programs, the Foundation implements advocacies that aim at helping build a stronger, echoed by One Meralco much brighter nation for all of us, Filipinos. We are focused on developing the youth, assisting communities in the Foundation in its grassroots level, giving Meralco employees the opportunity to give back to the community and prepare the future mission statement to generation so they become wise energy consumers. We’ve been asked questions like: “Why do we concern ‘spread the light.’” ourselves with bringing power to the poor when it is barely felt in the company’s bottomline at the end of the day? There is no direct business benefit in doing CSR work outside of the franchise area, so why do we do it? What is driving One Meralco Foundation to continue to deliver good results year-on-year despite the challenges?” countryside, where help is most needed. Especially in times of calamities, the Company, through the Foundation The answer to all these questions is commitment. provides assistance to smaller electric cooperatives in the Meralco’s commitment to ensure a brighter future for regions by sending volunteer teams of Meralco engineers Filipinos is echoed by One Meralco Foundation in its mission and linemen to help restore electricity in areas hit by strong statement to ‘spread the light.’ The power this commitment typhoons. In December 2015, Typhoon Nona (international brings is cascaded to every employee of the company, name: Melor) barraged southern Luzon provinces of making success not a sole achievement of the Foundation Sorsogon and Oriental Mindoro. Hundreds of electric poles but a concerted effort along with its partners both within the were brought down and several kilometers of wires were organization and outside of it. rendered unusable. The Foundation was quick to respond, bringing technical expertise, manpower and equipment On behalf of the Board of Trustees, the management and to these hard-hit provinces and helped restore electricity the entire OMF team, we express our heartfelt gratitude service within a week. This is outside Meralco’s franchise to those who helped the Foundation accomplish its goals area, but the determination to serve and our commitment since we committed ourselves to do more in 2011. To our to the Filipino in need do not have boundaries. partners, we hope to continue to count on you as we march on to 2016. And to our beneficiaries: now that you have Beyond Meralco’s area of operations, thousands of schools received the ‘light,’ we challenge you to make the best out are literally groping in the dark. The reason: energizing of it and to pass it on. these far-flung schools is close to impossible. But we at the Foundation look at challenges with a positive perspective. Together, let’s spread the light! While well aware of the bounds of our resources, we strive to innovate and look for ways to find the possibility in the seemingly impossible endeavors. We believe that every problem has a solution, and sometimes it is not inside our head but thousands of miles above it; in this case, the sun. Manuel V. Pangilinan Chairman Just like our vision, the sun shines for all, not distinguishing between the rich and the poor. Its energy is for everyone, so why not use it to benefit everyone? This is the idea behind the Foundation’s school Oscar S. Reyes electrification program. It ‘spreads the light’ to off-grid Vice Chairman mountain and island schools by providing an alternative source of electricity, in most cases, using solar energy. Through the program, 31,888 students in 120 remote public schools get to experience technology-aided learning, something that has been the norm in more progressive Jeffrey O. Tarayao communities but almost unheard of in these far-flung President villages. More than just providing electricity, the program levels off the playing field for students in these schools, giving them a head start in their quest for a better future. 2015 Annual Report 7 The new homes of these children in Cateel, Davao Oriental, who were affected by Typhoon Pablo in 2012 were energized by One Meralco Foundation as part of a concerted effort of the companies chaired by Manuel V. Pangilinan to help bring back normalcy in the lives of typhoon victims. Reaching In. Reaching Out. Despite the challenges, OMF holds on to its commitment to uplift the lives of individuals, families and communities through holistic development programs and by providing assistance in the worst of times. One Meralco Foundation: Driven by Commitment 8 herlyn Alarba and her family were among the hundreds displaced when Typhoon Ondoy (int. Ketsana) inundated low-lying areas in Metro Manila Sin 2009. Traumatized by the experience, they left their community and settled in a new relocation site in the uphills of Rodriguez, Rizal, now called Kasiglahan sa Creekside Association (KACSA). “When we arrived here, we had nothing. I didn’t have a job, my husband was the only one who earned a living, we didn’t have electricity,” recalled Alarba in Filipino.