results of operations - Aboitiz

Market Capitalization
(in billion pesos)
35
7
8
11
15
16
24
00 01 02 03 04 05 06
Our market
capitalization at
the end of 2006
increased by
π10.9 billion from
π23.8 billion at the
start of the year
to π34.7 billion at
yearend, and has
doubled from
yearend 2004.
Treasury Share Sale
On January 26, 2007, AEV successfully
placed its entire treasury shareholdings
representing 742,511,938 shares at a price of
π8.20. The transaction raised approximately
π6.1 billion, equivalent to US$124 million.
The offering saw high demand from
approximately 60 institutional investors
in the USA, Europe and Asia which significantly
increased the company’s free float
by 15% and strengthened AEV’s shareholder
base. International investors took
up 89% of the offering while domestic
investors took 11%.
Creating value for shareholders
There was a sharp increase in AEV’s shareholder
value in 2006. The share price increased
from π4.80 at the beginning of January to
close at π7.00 at the end of December or a
45.8% price appreciation for the year.
Our market capitalization at the end of
2006 increased by π10.9 billion from π23.8
billion at the start of the year to π34.7
billion at yearend, and has doubled from
yearend 2004.
Cash Dividend
On January 11, 2007, your Board of Directors
approved a cash dividend of 20 centavos
per share that was paid out on February 23,
2007. The total payout amounting to π1.14
billion was the biggest ever, representing
over 30% of the previous year’s earnings.
In the same meeting, the Board also adopted
a policy of distributing at least one third of
the Company’s previous year’s earnings as
cash dividends to shareholders.
Corporate Social Responsibility
implementation of corporate social responsibility
initiatives, disbursing a total of π178
million for various projects.
Programs in the area of education continued
to be at the heart of the Group’s initiatives
to assist host communities where our
companies operate. We likewise continued
to implement projects on primary health
and child care, and enterprise development.
BRAND
2006 saw the further strengthening of
AEV’s brand identity, as we continued
to deliver on our promise of “Passion for
Better Ways”. To prepare ourselves for
future growth, we have taken steps to
align our strategic intent throughout the
entire Group. This is in order to ensure a
powerful and sustainable impact in all
our undertakings and to have a common
sense of purpose across the Group.
To all our team members in the AEV Group,
thank you for your support and for your
commitment to deliver the highest standards
of service. Let us continuously seek
to find new and better ways to serve all
our stakeholders.
To our stockholders, partners and customers,
our sincere gratitude for your continued
trust and confidence.
The performance growth of Aboitiz
Group of Companies gave us
more resources to pursue
social development projects.
It was a banner year
for the Group in the
Jon Ramon Aboitiz
PRESIDENT AND CHIEF EXECUTIVE OFFICER
8 ABOITIZ EQUITY VENTURES ANNUAL REPORT 2006