AC ENERGY ASM SPEECH
2020 ANNUAL STOCKHOLDERS’ MEETING
MESSAGE FROM THE CHAIRMAN FERNANDO ZOBEL DE AYALA
20 APRIL 2020
Fellow shareholders, colleagues in the Board and management, ladies and gentlemen, good morning to all of you.
As many of you know, our independent director Mr. Jesus “Chito” Francisco recently passed away. It is important that we honor his memory and the contributions he made to AC Energy Philippines.
We recognize the very difficult period our country is going through and at the Ayala group, our various businesses are working closely to help in any way we can. We have launched different initiatives across the group to mitigate the impact of the community quarantine, especially for the daily wage earners and the no-work-no-pay workforce, those who belong to the informal economy, as well as small and medium enterprises that have had to stop their operations. We have likewise made similar efforts to help our healthcare frontliners and have helped augment the capacity challenges in our hospitals.
At the same time, we have ensured that the delivery of basic services within the group can continue such as healthcare, banking, telecommunications, water, and power.
We reinforce our strong commitment to invest in much needed energy investments in the Philippines as access to stable power is critical to supporting all the services needed to address this health crisis.
Through AC Energy, we have been able to do our part in ensuring uninterrupted power in medical facilities, production of essential goods, and in every home during this difficult period.
Let me now move on to our review of 2019. As you all know, AC Energy Philippines went through a major transformation in the past year as we acquired PHINMA Energy. We are happy to report the positive momentum that ACEPH has been able to achieve since we took over last October.
We are encouraged by the government’s push for more renewable energy generation and reduction in the dependence on traditional energy sources. From 416 MW, we have increased ACEPH’s portfolio to over 1,100 MW. To sustain this growth, we have transformed ACEPH as AC Energy’s growth platform in the Philippines.
With this strong growth momentum, ACEPH accelerated the expansion of its power generation portfolio in the Philippines through greenfield projects and acquisitions. ACEPH continued to invest in strategic assets, consolidated key operating assets, and bolstered its renewable energy pipeline in line with this year’s goal to achieve an attributable capacity of 1,500 MW, half of which will come from renewable sources.
Together with the Ayala group, ACEPH is leveraging digital technology to enhance operational efficiency and energy solution services. Let me cite some of the initiatives that ACEPH has started to work on.
First, renewable plant performance will be monitored to predict intermittency, ensure efficiency in power generation, and help guide decisions on preventive maintenance to increase reliability.
Second, consumers will be provided with near real time energy data to offer them the opportunity to improve their operational consumption and environmental footprint.
Finally, prediction capabilities through weather forecasts, load forecasts, and tuned plant models will be used to respond to price signals in the market.
In addition, as part of the Ayala group’s overall sustainability agenda, ACEPH has aligned its business objectives with the UN Sustainable Development Goals. Integrating the UN SDGs into all aspects of the company’s processes allows AC Energy to expand its renewable energy capacity, support host communities, protect the environment, and contribute to sustainable development for the benefit of present and future generations.
To support this agenda, parent AC Energy has launched an Environment and Social Policy, anchored on three pillars where it believes it can have the greatest impact: excellence in environmental management, commitment to the community, and transitioning to a low carbon portfolio by 2030
ACEPH is committed to provide reliable, affordable and sustainable energy. We are making a commitment to transition to a lower carbon portfolio by rebalancing our generation portfolio to grow our renewable energy assets.
In closing, AC Energy Philippine’s achievements have been made possible by the guidance of our Board of Directors, the commitment and dedication of our employees and the support of our business partners and host communities. We also thank our shareholders and many stakeholders for their continued trust and support as the company moves towards its aspiration of becoming a leader in sustainable energy in the Philippines.
We now invite you to watch our corporate video, which touches on our commitment to sustainable development. By continuing to build trust with communities and helping protect the environment, we are able to ensure the progressive development of the markets we serve.
As an example, AC Energy launched its flagship sustainability program in 2017, which involved a Conservation Estate in a community within one of its wind farms. It is a multi-year program with livelihood, environmental, and biodiversity protection. Following the successful completion of a pilot phase, we are now moving to a full implementation of the project.
We are very proud of this achievement and would like to share this with you through this video.