PwC M.A.P.

2017 CEO Survey

Building partnerships in ASEAN:

Reimagining the possible
A Philippine CEO Survey

120 CEOs
114 survey respondents
10 face-to-face interviews*

75%
are planning to enter into a
strategic alliance or partnership

45%
will likely compete in other
countries

* Four interviewees also

answered the survey

www.pwc.com/ph/ceosurvey
 Foreword

A message from
the M.A.P. President

The Management Association of The 2017 M.A.P. International

the Philippines (M.A.P.) is pleased CEO Conference provides the
to work with Isla Lipana & Co., opportunity for the participants to
PwC member firm for the third of a share ideas and discuss the things
series of annual CEO Surveys which that matter; and to build and enable
benchmark the changes in how CEOs partnerships and networks of their
think, respond, and innovate. own. Through the insightful sessions
and robust discussions with a global
Many thanks to PwC Philippines for perspective among people of diverse
serving as our Knowledge Partner, backgrounds, the M.A.P. aims to
once again, for the September 12 encourage innovative thinking,
M.A.P. International CEO Conference collaboration, and cooperation that
2017 with the theme “ASEAN in will pave the way toward shared
Business: Building Partnerships in growth and prosperity for all.
a Growth Network.” We would also
Marife B. Zamora like to thank all the M.A.P. members We hope that the readers of
President, Management Association
of the Philippines (M.A.P.) and other members of the Philippine the report will learn from our
business community who participated respondents in building and enabling
in the Survey. partnerships in ASEAN.

Since 2002, the M.A.P. International

CEO Conference has served as a
premier venue for bringing together
business leaders from various fields
to share insights and experiences,
to establish stronger business and
social linkages, and to imbue them
with the passion and know-how to
remain highly competitive in a highly
globalized environment.
A message from
the PwC Philippines Chairman

Over the years, partnerships have Looking ahead, our CEOs believe that
proven that what we thought collaborations will help them grow at
were unattainable can actually be a faster pace within and outside the
achieved. Examples are building Philippines.
roads that connect distant places,
improving our derelict airports, In mounting the survey, we also
penetrating foreign markets, and intended to have an appreciation of
introducing new technologies. our CEOs’ plans for their companies,
our country, and ASEAN.
In this report, we try to understand
our CEOs’ views on how partnerships I’d like to thank the 120 CEOs who
can work in an integrated ASEAN. shared their insights with us. We’d
also like to express our sincerest
Finding the right partner may be gratitude to the ten leaders who
difficult. We all need someone we can allowed us to tell our readers their
trust, and who will complement our stories and aspirations.
Atty. Alexander B. Cabrera strengths. Once you find that partner,
Chairman and Senior Partner, This is the third year that we’re doing
Isla Lipana & Co./PwC Philippines the opportunities can be endless.
the CEO survey for M.A.P. Thank you,
Our CEOs believe that sharing the M.A.P., for the privilege to serve as
same vision, and not just focusing on the Knowledge Partner for your 15th
financial contributions, will improve International CEO Conference.
the success rates of partnerships.
We hope that our CEOs’ experiences
Working together to achieve shared and wisdom will inspire you
goals, as well as delivering on to collaborate more with the
promises, are key to having successful government, other organizations,
partnerships. and rising entrepreneurs – not only
to benefit your own companies and
our country, but the entire ASEAN
community as well.
 A Philippine CEO Survey

The theme of the 15th M.A.P. It is encouraging to know that our We hope that this report will inspire
International CEO Conference leaders are moving towards forming our leaders to reimagine the possible
2017, “ASEAN in Business: Building more partnerships, both formal and – not only in the Philippines, but
Partnerships in a Growth Network,” informal – not only to accelerate throughout ASEAN.
helped shape the PwC M.A.P. 2017 their growth, but to help the country
CEO Survey. and other entrepreneurs as well.

With the goal of working together This year, we are also featuring
to make the ASEAN integration the stories of key business leaders
successful, we asked our leaders to share the lessons they learned
to share their views on the growth from their partnerships and from
prospects of the Philippines and the their experience in expanding their
rest of ASEAN, as well as their plans businesses. Two of our government
to further expand their businesses leaders share their vision for the
and address the challenges along the country, and their plans to make
way. their vision a reality.

iv Building partnerships in ASEAN: Reimagining the possible

 Reshaping the organization Chasing talent and
Economic outlook
through partnerships innovation

1 6 12

Improving success rates in

Partnerships in ASEAN CEO agenda
partnerships

20 26 34

Key differences
between alliances
and M&A
p21 Profile of
respondents p37
Research
methodology
and contacts
p40
Insights from
the inside p36 Additional
findings p38 References
p41
Acknowledgments
p42
PwC MAP 2017 CEO Survey v
 Economic outlook

The Philippines’ gross domestic product (GDP) has grown consistently for 74
quarters. In the second quarter of 2017, the GDP grew yet again, this time by 6.5%
year-on-year. This is at the lower end of the government’s growth target of 6.5% to
7.5%, but enough to outperform the rest of Asia except China, whose economy grew
at 6.9% during the same period.

Philippine real GDP growth rate (in %)

2010
7.6% 2013 2016
2012 1Q17 2Q17
7.1% 2014 6.9%
6.7% 2015 6.4% 6.5%
6.2% 5.9%

2011
3.7%

Source: Bangko Sentral ng Pilipinas and Philippine Statistics Authority

In its semi-annual publication, World Economic The prevailing business climate has certainly been
Outlook, the World Bank projects global growth at seen as opportune for revenue growth for the next
3.5% this year, driven mainly by developing regions three years by 57% of CEOs who have expressed high
including Southeast Asia, which is predicted to expand confidence in the prospects of their companies.
at 5.1%.
In the same manner, 54% of our CEOs say that they are
The Philippines is expected to exceed both projections, very confident about opportunities in their industries
fueled by increased government spending, over the next three years.
merchandise exports, and agricultural production.

Given the strong macroeconomic fundamentals

Question: Do you believe that Philippine economic growth will
and positive indices to date, the government is very exceed, hit or miss GDP growth forecasts of 6-7% in 2017 and
bullish with regard to meeting the 2017 GDP target, 2018?
a sentiment strongly shared by 68% of CEOs we
surveyed, 63% of whom likewise believe that 2018
goals will be met. Exceed Exceed
4% 9%

Such optimism is anchored on the belief that the

Philippines will still have one of the fastest-growing
68% 63%
economies because of the improved business GDP growth GDP growth
will hit 6-7% will hit 6-7%
environment, demographics, and continued in 2017 21% in 2018
collaboration between the government and private
sector. 59%

2016 CEO
Survey will hit will exceed

vi Building partnerships in ASEAN: Reimagining the possible

Globally, the same optimism was
“General overall outlook for the Philippines will be positive
shared by the majority of CEOs as
disclosed by PwC in its most recent in the next three to four years and should be more stable. I
survey publication, 20 Years Inside believe the current leadership has enough drive and sincerity
the Mind of the CEO... What’s Next? to do positive impact to the Philippines in general.”
The survey covered 1,379 CEOs from
80 countries, and 51% expressed an Jacob A. Peña, Jr.
extremely positive view on prospects CEO, Sydenham Laboratories Inc.
for revenue growth over the next
three years.

While CEOs recognize that

opportunities still abound, their
optimism is tempered by the
increasing number of new threats Question: How confident are you about your company’s prospects for revenue growth over
and aggravation of existing the next 12 months and three years?
ones. CEOs continue to express
concern over threats of terrorism,
12 months 3 years
increasing tax burden, inadequate
basic infrastructure, geopolitical
uncertainty, and overregulation. 54% 57%
Very Very
34% confident 37% confident
From the business standpoint, Somewhat Somewhat
CEOs view bribery and corruption, confident confident
technological changes including
cybersecurity, and the ability
to respond to crisis as the main 73%
65% 54% 62%
69% 57%
risks that may hinder growth. 34% 37%
29% 30% 24%
Increased emphasis to implement 24%

cybersecurity has been prompted 2015 2016 2017 2015 2016 2017

by persistent attacks that have, in

certain cases, crippled operations. Base: All respondents: 2015=79; 2016=98; 2017=114

Very confident Somewhat confident

The Wannacry ransomware, for
example, infected more than
230,000 computers in over 150 Question: How confident are you about your industry’s prospects for revenue growth over the
countries in May 2017. The next 12 months and three years?
cyberattack against Danish shipping
12 months 3 years
giant A.P. Moller-Maersk cost
the company from US$200m to
US$300m.
55% 54%
Very Very
37% confident 39% confident
Somewhat Somewhat
confident confident

61% 55% 51% 52% 54%

53%
42%
33% 33% 37% 39%
33%

2015 2016 2017 2015 2016 2017

Base: All respondents: 2015=79; 2016=98; 2017=114

Very confident Somewhat confident

PwC MAP 2017 CEO Survey 1

 Economic outlook

Collaborating with purpose: Building

sustainable businesses for the country
Hon. Ramon M.
Lopez
Secretary, Department of Trade and Industry

Established with the vision of serving as the main economic

catalyst for the country, the Department of Trade and Industry
(DTI) is led by Secretary Ramon M. Lopez with the objective
of realizing a more inclusive and prosperous Philippines by When asked about the possible concerns, he noted that:
2022. Through his inclusive, innovation-oriented approach “Despite concerns that our country would lose in terms of
on policies, Sec. Lopez is pushing for the kind of growth that trade or employment opportunities because of the ASEAN
reaches the bottom of the pyramid. integration, we are actually well-positioned to take advantage
of it. Among our country’s many strengths are our robust
There are over 900,000 micro, small, and medium enterprises economic performance, improving competitiveness, and a huge
(MSMEs) representing around 99% of total Philippine supply of English-speaking workforce.”
enterprises and accounting for 70% of total employment.
These figures make the sector the country’s economic To help support and protect the MSMEs as the Philippines
backbone. Thus, promoting entrepreneurship among MSMEs move towards the ASEAN integration, the DTI developed the
and helping them scale up have been among the top priorities following key strategies: (1) increase trade and investment; (2)
of Sec. Lopez. integrate MSMEs in the digital economy; and (3) develop an
innovation-driven economy.
“The DTI is using the 7Ms Framework—a seven-point
strategic framework—to help aspiring entrepreneurs set up With the rise of start-ups in the country, the DTI launched
their own businesses and become smarter entrepreneurs. Slingshot Philippines in 2015, a government-initiated platform
These are: 1) mindset, 2) mastery, spearheaded by the trade agency with the
3) mentoring, 4) markets, 5) money, support from the Department of Science and
6) machines, and 7) models. This “An entrepreneurial Technology. The DTI also signed a Memorandum
framework will help the MSMEs culture can ensure of Understanding with IdeaSpace Foundation
make a headway in an increasingly in 2016 to establish the QBO Innovation Hub, a
competitive market, while
inclusive growth that hub for start-ups and innovation entrepreneurs
contributing to the larger cause would lead to shared to boost the collaboration between the start-up
of sustaining the entrepreneurial prosperity for all.” community, the private sector, the academe, and
revolution,” Sec. Lopez said. the government.

Initiatives under this framework Sec. Lopez understands the value of collaborating
include the P3 (Pondo para sa Pagbabago at Pag-asenso with the private sector, noting that: “Government agencies can
Program), the Kapatid Mentor ME Program (KMMP), Go gain the support of the private sector through their experience,
Lokal!, the Shared Service Facilities, the Go Negosyo Act, wisdom, knowledge, and even their efforts.”
and the Inclusive Business Model.
“The government’s partnership with the private sector is
To further spur foreign direct investments in the country, the an integral part in implementing entrepreneurial programs
government, through DTI, has been conducting numerous and policies that will help our countrymen, ranging from the
trade missions. mentorship given to aspiring entrepreneurs with the KMMP as
well as intensified ties with the business community, to soliciting
“We are initiating more trade missions to capture the their help in creating jobs and employment for our people.
interest of investors in foreign countries and generate more Without these shared vision and belief with the private sector,
investments that may lead to more employment opportunities as well as trust in each other, the government would not be able
for our countrymen. Through the current administration’s to attain its goals” he added.
Independent Foreign Policy, we are sourcing investments
from non-traditional trade partners like Russia and China, Sec. Lopez’s passion for MSMEs is not all that new. He said:
while also helping the government attain its national goals, “From my work in the private sector as head of Go Negosyo
regardless of hindrances,” Sec. Lopez explained. to my appointment as Trade Secretary, I have focused on
promoting MSME development bringing the sector at the center
The Philippines stands to gain even more investors as the of the trade agenda to help uplift the lives of all Filipinos.”
ASEAN integration progresses.
“MSMEs will serve as the enabling mechanism to empower
“The ASEAN integration will provide an opportunity for those at the bottom of the pyramid. By developing an
Filipinos to become major players in the ASEAN region,” Sec. entrepreneurial culture and mindset in our people, we can
Lopez said. ensure inclusive growth among our countrymen that would lead
to shared prosperity for all,” he declared.
2 Building partnerships in ASEAN: Reimagining the possible
The United States (US) Department Question: Please select and rank (1 being the highest) the top five initiatives/changes that
of State, in its most recent you believe the current Philippine government should prioritize during its term? (Please
Investment Climate Statements, choose top five choices.)
cite poor infrastructure (e.g. high
power costs and slow broadband ! # %
connection), corruption, and foreign Good Peace and Adequate digital
equity limitation as constraints governance order infrastructure
in making the Philippines more
attractive to foreign direct
investments (FDI). In order to
continuously ride the growth
momentum, both CEOs and
investors have priority reform areas
that they wish the government
should undertake, namely good @ $
governance, adequate physical Adequate Internationally
physical competitive and
infrastructure, peace and order, infrastructure efficient tax system
competitive tax system, and
adequate digital infrastructure.

President Rodrigo Duterte Question: How concerned are you about the following potential
announced a massive infrastructure economic, policy, social and environmental threats to your company’s
growth prospects?
plan that embarks on an ambitious
target spending of PHP8.4 trillion Top 5 economic, policy, social and environmental threats
until 2022. This will result in the Inadequate
segment’s GDP contribution to Terrorism*
Increasing tax
burden
basic
infrastructure*
Geopolitical
uncertainty
Over-
regulation
increase to 7.5% against 4.0%
by the previous administration.
Build, Build, Build represents the
government’s primary economic 2017 89% 83% 82% 81% 77%
thrust, to improve the country’s
business competitiveness index,
attract FDI, and encourage an 79% 78% 64%
2016
investment-led economy.

2015 87% 76% 68%

“The one major need to be fulfilled Top 5 business threats

is the establishment of adequate Readiness to Speed of
nationwide physical infrastructure to Bribery and
corruption
respond to
crisis* Cyber threats
technological Availability of
changes key skills
support the transport sector (roads,
bridges, ports), power sector (electricity),
and telecommunications. With these
infrastructure projects in place, business 2017 79% 78% 76% 75% 72%
will follow, employment will be created,
economic opportunities will be expanded,
76% 71% 67% 66%
social services can be more conveniently 2016

delivered, and peace and order can easier

prevail.”
2015 75% 70% 70%
Santiago F. Dumlao, Jr.
Secretary General, Association of Credit Base: All respondents: 2015=79; 2016=98; 2017=114
Rating Agencies in Asia *New opportunities and threats included in 2017 survey

PwC MAP 2017 CEO Survey 3

 Economic outlook

Great expectations: Inclusive

growth through developed markets

Nestor A.
Espenilla, Jr.
Governor, Bangko Sentral ng Pilipinas
Taking over from his mentor and predecessor Amando M.
Tetangco Jr., Governor Espenilla is delivering his “continuity plus
plus” strategy to promote and maintain price stability, and ensure
a strong financial system that will help sustain the growth of the As part of this initiative, the BSP, in partnership with the private
economy. sector, launched the National Retail Payment System (NRPS)
project. “The NRPS creates an inter-operable ecosystem that
“I tried to capture how I would define my term in my ‘continuity will allow banks and regulated non-banks to interact with one
plus plus’ strategy. The Bangko Sentral ng Pilipinas (BSP) has another allowing each to move value from deposit accounts or
been able to successfully establish a track record for monetary wallet accounts, to any other bank in the ecosystem through the
and financial stability. That really is the essence of continuity. The establishment of an automated and efficient clearing house.”
BSP will continue the market-friendly policies that will ensure a By the end of 2017, the BSP also plans to launch the electronic
low and stable inflation in the Philippines. I am also committed to fund transfer system called Peso Net, which will allow people
pursuing progressive and proactive prudential reforms to promote to send money electronically, from any account to anywhere in
financial stability and foster a broad-based and inclusive growth.” the system, at any time of the day. In addition, underpinning the
digitalization efforts is the initiative to put together a biometric
What are the “plus plus”? “We look at continuity as a good
national ID system in coordination with various government
foundation to embark on even more ambitious financial market
agencies.
reforms that are essential to support our sustainable economic
growth. One major advocacy is to develop the domestic capital When asked about the motivations behind his innovative
market, particularly the debt market. There are limitations to what solutions, the Governor replies, “The Philippines is increasingly
banks can do in supporting development financing. The banks becoming a middle-income country, but people are being left
can effectively mobilize funding for behind. The financial inclusion objective
long-gestation projects such as is to make sure that as we modernize our
infrastructure, but it’s not ideal. We
want a more developed financial “If we don’t digitize our banking system with all these innovations,
we want to make sure that it is also very
ecosystem where you have well- financial system, our relevant to ordinary people who are
functioning banks as well as deep and people will be left behind.” living in the far-flung provinces. Creating
liquid debt and equity markets that a digital financial system enables that.
can complement the financing needs Credit will become more accessible
of big ticket projects.” To make this to people, and they will no longer be dependent on physical
possible, Governor Espenilla is working with other government collateral. The digital footprint will eliminate the traditional
agencies such as the Bureau of Treasury, the Department of collateral requirements. From there, you build micro-insurance,
Finance (DOF), and the Securities and Exchange Commission then investments, and eventually, savings.”
(SEC).
In view of the ASEAN Integration, Governor Espenilla believes
With services driving our growth, and the resurgence of that while our banks are smaller relative to other banks in
manufacturing, Governor Espenilla believes that we also need to ASEAN, they do not give up anything in terms of the quality
have a deeper and more liquid foreign exchange market. “If we of their service, their resilience, their stability, and soundness.
want to attract foreign direct investments, and if we want our own “However, banking is a scale business so we’re encouraging
conglomerates to spread their wings in the context of an ASEAN banks to scale up through mergers and acquisitions. Since the
integration framework, we need more sophisticated hedging liberalization, what we’ve seen are big banks taking on strategic
products. Foreign exchange is a very important part of that foreign partners to grow. While we want them to grow, we want
equation. We are also introducing reforms to make it easier to do to make sure that these large institutions are run properly. This
business in the foreign exchange market, and to be able to source is because if they fail, they have the potential to take down the
transparently, efficiently, and at a competitive pricing.” entire financial system.”
When asked about his third key initiative, Governor Espenilla With Governor Espenilla reaching the first three months of
replies, “The third is digitizing the financial system. Based on our his six-year term, he shares his vision and plans for the rest
2014 survey, 99% of retail transactions are completed using cash of his term. “I’d like to leave with inflation low and stable,
or checks. Only 1% of the total volume is electronic. We want our external liquidity strong, our reserves ample, and our
to grow the volume of electronic transactions to at least 20% by banking system strong. I also would like to see a much more
2020.” sophisticated domestic debt market, a deep and liquid foreign
exchange market, and digitalized and safely executed financial
transactions.”
4 Building partnerships in ASEAN: Reimagining the possible
Companies are increasingly placing agencies such as the Bureau of The Committees on Trade,
more emphasis on corporate Internal Revenue (BIR) and the Commerce and Entrepreneurship
governance and as such, CEOs Bureau of Customs (BOC) are in both houses of Congress are
expect that the government will compelled to meet or even exceed contributing to improve the business
follow suit, particularly in terms revenue targets. climate for investors by working on
of transparency, providing a level the passage of major legislation that
playing field, and increasing will further ease doing business in
confidence in the process. the Philippines.
“Balancing short-term with
long-term goals, creating
Good governance has consistently sustainable value for Proposed reforms include pushing
topped – #1 in 2017 and #2 in 2016 stakeholders, achieving for a specific timeframe for the
– the list of initiatives and reforms growth but helping approval of applications for
that CEOs wish government would permits on a per-agency basis;
inclusive growth. These are
prioritize. For their part, companies, uniform checklist of requirements;
the issues organizations
specifically the listed entities, have information-sharing among local
been making sure that they comply
commonly address, but government units and other relevant
with the new Corporate Governance moreso for those whose government agencies such as the
Code. businesses are grounded BIR and the SEC; and the conduct
on principles of good of a competitiveness test for every
corporate governance.” local ordinance that sets new
Tax reform is on the wish list
requirements for existing and new
of both the government and Alexander B. Cabrera businesses.
foreign investors as the current Chairman and Senior
administration’s financing policies Partner, PwC Philippines
have shifted from Public-Private Overall, the majority of CEOs
Partnership (PPP) to Official remain highly optimistic about
Development Assistance and general their companies’ growth prospects
The National Competitiveness
appropriation or through the and opportunities albeit mindful
Council, meanwhile, is also working
national budget. of increasing threats. They also
hard for the Philippines to crack
have high expectations that
the top third in global rankings
the government will fulfill its
This change in funding after placing 99th in last year’s
role in executing the country’s
infrastructure development places World Bank report on Ease of Doing
comprehensive development
mounting pressure for Congress to Business.
program.
swiftly enact the proposal submitted
by the DOF (i.e., Tax Reform for
Gains to date include introducing an
Acceleration and Inclusion) that
online system for filing and paying of
mandates the lowering of individual
health contributions and facilitating
taxes while increasing tariffs on fuel,
completion of corporate income and
sugar-sweetened beverages, and
Value Added Tax returns, even if
luxury cars. In addition, collecting
offline.

Tough questions
1. How are you preparing for the possible impact of the planned tax and regulatory changes?

2. How do you plan to work with the government to further grow your business?

3. What should be your key priority areas given the changing regulatory environment?

4. How will your organization's strategies change with the current administration's focus areas?

5. What initiatives are you planning to implement to protect your organization from the economic, political,
and social threats?

PwC MAP 2017 CEO Survey 5

 Reshaping the organization
through partnerships
2016 was a year full of uncertainties both in the Philippines and in the global setting
as a result of the Philippine elections, US elections, Brexit, tightened M&A control
imposed by Chinese regulators, and political risks.

As we reached the first half of 2016, however, Filipinos in 2016. While the deal count remained flat, more
felt confident that the economy will remain stable than 50% of the 44 deals in 2016 were completed in
because of the peaceful transition of power to the the second half of the year. This means that the local
Duterte administration as well as the favorable GDP and foreign investors trust the current administration,
growth rates both in the first and second quarters of and still believe in the Philippine growth story.
the year. Completed deals in 2016 include the acquisition of
stakes in Basic Logistics Corporation, Global Business
Power Corporation, Negros Navigation Company, Inc.,
The high level of confidence was seen in the number
Shakey’s Pizza, and The Generics Pharmacy.
of announced mergers and acquisitions (M&A) deals

Announced Deals in the Philippines

2015
2013
2011

22 40 38 49 43 44
2012
2014 2016

Source: MergerMarket

“Disruption is the name of the game.”

Melito S. Salazar Jr., Chairman,
Omnipay, Inc.

6 Building partnerships in ASEAN: Reimagining the possible

In the past two years, we asked our Question: Which, if any, of these activities do
CEOs to identify the initiatives and you plan to initiate in the next 12 months?
changes that they will implement
Enter into a strategic
to respond to the changes in the alliance or partnership 75%
76%
macroeconomic and business 2016

environment. Similar to the Implement a cost-reduction

73%
initiative 73%
responses in the past surveys, 75% 2016
of our CEOs say that they will Outsource a business
46%
enter into a strategic alliance or process or function 53%
2016
partnership in the next 12 months.
Complete a domestic M&A 41%
Jacob Pena, CEO, Sydenham 31%
Laboratories Inc., said, “Collaborate 2016
Complete a cross-border
with organizations that will add M&A 31%
17%
value to your product, technology, 2016
and customer base.” With our CEOs’ Insource a previously
22%
outsourced process or
responses, we see that our business function 34%
2016
leaders are becoming more open to Sell majority interest in a
collaboration to achieve their goals. business or exit a significant 16%
16%
market 2016

Certainly Most likely Likely

With our country’s strong economic
and business outlook, we asked our Question: Over the next three years, how likely
CEOs about their plans of competing will your organization compete in industries other
in other industries. Compared to the than your own currently?
2016 survey, this year’s results show
us that more CEOs are planning to Top six preferred
enter new industries. Consumer industries
and retail, healthcare, pharma Consumer and
and life sciences, distribution, retail
and technology are among the
top industries that our CEOs are Healthcare,pharma
planning to tap. Such choices reflect 52% and life sciences
the major economic drivers and Are very likely / Retail and wholesale
priorities of the country which likely to compete in distribution
include household spending and other industries
investments in technology. The Technology
developments in technology
as well as the rise of alliances/
Food and beverage
collaborations lowered the barriers
to entry in certain industries, 2016:
Real estate
allowing more companies to start 45% and construction
and/or enter new businesses.
Companies who recently tapped
new industries include Metro Pacific
Investments Corp.’s entry to logistics Industry performance (PHP in billions)
through various acquisitions.
Similarly, SM Investments Corp. Retail sales IT market value Healthcare spending
entered the logistics industry
through a minority investment in 6,410
6,925
202
217
794
872
5,941 187
2Go. Century Pacific Group, Inc. also 5,511 177
656
722

diversified its businesses by entering

the food service sector when it
acquired a majority stake in Shakey’s
Pizza Asia Ventures.

2015 2016f 2017f 2018f 2015 2016f 2017f 2018f 2015 2016f 2017f 2018f

Source: Business Monitor International

PwC MAP 2017 CEO Survey 7

 Reshaping the
organization through
partnerships

Managing a family empire:

A different take on succession

Teresita Sy-Coson
Vice Chairperson, SM Investments Corp.

Founded with the vision of serving Filipinos through selling

shoes at SM stores, the SM Group was nurtured by Henry
Sy Sr., together with daughter Tessie Sy-Coson and his
other children, and was transformed into a family empire aggressive. Our group has a plan on how far we want
with business interests in retail, banking and property in to expand. If our partners want to move forward with
the Philippines and China. us, then we will take them along. We collaborate and
follow the growth. We have to think the same way about
“My father was very confident in the growth of the the future because it’s not only about the present, it’s
Philippines. Back in the 1950s, he just wanted to have a also about the future.” While Tessie admits that not all
shoe store, and sell to every Filipino. The population then partnerships are perfect, she says, “Failures make you
was just 17 million. He always thought that if he could learn. The experiences give you more knowledge to
study and meet consumer demand, he would become a help you avoid those pitfalls in the future.”
successful man.”
The SM Group’s partnerships also involve building
The Sy family started their business with a partnership. relationships with smaller businesses and suppliers. “If
“The first Shoemart store was a partnership. My father it’s a start-up or a smaller enterprise in retail, we will
saw a site, and thought it would be good to have that site. help them start with a kiosk and encourage them to
As such, he partnered with the owner of the lease right grow. On the supplier side, if they have a good product
and introduced the first Shoemart store. However, my that we could sell, we will give them more volume
father was more aggressive. When he wanted to open in and try to scale them up. It’s all about the meeting of
Makati, his partner declined to join. That was when the minds.”
partnership was split. Since my father was the one who
introduced the concept and Tessie advises other companies to think big. “Scale
brand, he became the sole is the name of the game. Things
owner of Shoemart.” “Investors, as partners, have to scale up because they are
becoming more regional and more
When asked about her views
push us to expand rapidly.” global. We cannot talk about just
on partnerships for their being local. Whatever business
businesses, Tessie replies, you have, if you don’t scale up in
“As long as you have the shared vision and values, terms of volume or in terms of spaces, either inflation
partnerships will be incremental to your business. Your would eat you up or the competition will. This is a very
partners will bring in new concepts and views. As long competitive world.”
as you have a common vision, I think partnerships will be
helpful for your growth.” By being open to partnerships, What would be her top concern for the SM Group?
the Sy family has grown its businesses with the help of Tessie shares, “Right now, it’s to prevent our
alliances with the NET Group, DoubleDragon, Uniqlo, business from becoming obsolete. That’s why you
Waltermart, 2Go, MyTown, among others. see us changing all the time, we cannot afford to
become obsolete. There is digital disruption. There is
How do investors, suppliers, and tenants impact their geopolitical disruption. There is also climate disruption.
business? Tessie says, “Investors are also our partners. You always have to be on your toes.”
If we did not go public, maybe there won’t be other
investors that will push us to do the numbers. We would With the group’s vision of building world-class
probably still be just a few branches because there was businesses that are catalysts for development, Tessie,
no outside pressure. The investors, as partners, are the together with the company’s business partners,
ones who really push us to expand. Similarly, without suppliers, and employees, is excited to move
our suppliers and tenants, we would not have so much forward with even bigger dreams. “The world is big.
offerings for the customers. In terms of services and Opportunities are endless. If you meet people with
products, perhaps we will not be as contemporary as we the same vision and values and if the opportunities
would like to be.” are good enough for two or more, then we can
always partner and grow together. New ideas, new
To make their partnerships work, Tessie reveals, “We have partnerships, new opportunities–there’s still a lot even
to move at the same pace. We make our partners more beyond my lifetime.”

8 Building partnerships in ASEAN: Reimagining the possible

Organic growth, entering new Question: How do you plan on financing your
industries and markets, forming organization’s growth?
partnerships, and completing
M&A deals will require significant 9%
capital. Forty-nine percent of 20% Others
our CEOs say that they will use Equity
their own capital to finance their
organization’s growth. This is not
financing 49%
surprising because 82% of our
Own capital
CEOs represent private companies. 22%
While self-funding their ventures Debt
means that they retain full control financing
and ownership of the business, this
practice could result in missing out
on other opportunities.

Such finding also reflects the way

that most Filipino companies think.
Capital raised through the
As an Asian country, the Philippines Philippine Stock Exchange (PHP in billions)
is home to thousands of family
businesses. Most companies still
prefer to use their own capital rather 219
than rely on external investors who
might want a measure of control and 195 184 177
175
performance. 153 179 148
114
142
Recently, however, we have seen a
number of family businesses opening
to investors or partners. Family
corporations who went public in
the past three years include Wilcon
Depot, Inc., Eagle Cement Corp., 24 61 11 5 29
Cebu Landmasters, Inc., Metro
2012 2013 2014 2015 2016
Retail Stores Group, Inc., Crown Asia
Chemicals Corporation, and Century Initial Public Offerings Additional Listings
Pacific Food, Inc. Major reasons why
such companies went public include
expansion of facilities, acquisitions, Family businesses who recently went public
new businesses, and refinancing (PHP in billions)
of debt. Since their listing dates,
the companies have grown their Listing Date Company Name Market Cap - End Market Cap as of
valuation, financial performance, of Listing Year 30 August 2017

and investor and partner base.

31 March 2017 Wilcon Depot, Inc. N/A 35.7

29 May 2017 Eagle Cement. Corp N/A 76.9

2 June 2017 Cebu Landmasters, Inc. N/A 8.6

4 November 2015 Metro Retail Stores 12.8 14.7

Group, Inc.

6 May 2014 Century Pacific Food, 36.4 61.2

Inc.

Source: Philippine Stock Exchange, Capital IQ

PwC MAP 2017 CEO Survey 9

 Reshaping the
organization through
partnerships

While companies may have available With the country’s strong capital and our stable economic
internal funds, planning is essential conglomerates, rising entrepreneurs, outlook, it is an opportune time for
to help them achieve their targets and strong interest from foreign our CEOs to tap new markets, enter
using the right capital structure. investors, local companies can be new industries, and explore possible
Studying the proper mix of debt assured of having a huge amount of M&A deals.
and equity will help the company available external sources of capital.
manage its cost of capital. Having While capital is not a main concern
the right capital structure will of our CEOs, our leaders should
also help identify new investment ensure that they are maximizing
opportunities, and help grow and using the right form of capital
the confidence of the company’s to take advantage of opportunities
shareholders and lenders. within and outside their
organizations. With the available

“Strategy can no longer be an approach of simply numbers

and bottom lines; strategy must be built upon a long-term
vision of growth, access, equality, innovation, and the human
endeavour. The last of these is arguably the most important
because linked to it is the critical concept of trust.”

Bob Moritz
Global Chairman, PwC

Tough questions
1. How was forming partnerships integrated in your strategic plan?

2. What preparations and studies have you completed for your planned new businesses?

3. How are you preparing for the possible changes in your industry/ies?

4. How are you addressing the current challenges faced by your business/es?

5. What changes will you make to strengthen your organization?

10 Building partnerships in ASEAN: Reimagining the possible

Shifting gears: Reinventing a
106-year-old business

Nina D. Aguas
Chief Executive Officer, The Insular Life
Assurance Company, Ltd.

As a one-year-old CEO in a 106-year-old company, Nina

Aguas helped transform Insular Life by expanding its
distribution channels, improving technology, offering
new products, and forming partnerships, allowing the likewise looking for a partner. The whole process took
company to deliver a stellar performance despite the us only about six months.” Through their partnership
uncertainties in the industry. with Union Bank, Insular Life will be able to tap the
Insular Life capitalizes on its expansive history and claim bank’s six million customers while helping the bank
over the local industry. For Nina, a company like Insular earn more revenue.
Life presents opportunities in many ways. “It’s solid and When asked how they decided to partner with Union
well-established. It’s durable. It gives you the elbow room Bank, Nina replies, “What really stood out for both of us
or the leg room to change gears, pivot, and make the was the chemistry and the cultural fit. It’s a lot easier for
adjustments to be more competitive. If it were a failing us because there is cultural sensitivity on both sides.”
organization, you won’t have the luxury of doing that.
While some practices have been institutionalized, the Having recently celebrated her first year as CEO, Nina
people were very willing to make the needed changes.” believes that she needs to accomplish more. “We want
to be known as the best digital insurance company in
Nina has a very different idea as to how she wants to the next five years. We also see opportunities in our
transform the company. “I’m really excited about the financials–what we can leverage, and how we can
opportunity to serve as many improve our revenue generating
Filipinos as possible. One capability.”
way of doing this is making “I’d like to see more women
insurance more affordable in the board. They bring a When asked about how one
while growing the awareness of different perspective.” can further grow and diversify a
the possible benefits. Second business, Nina shares, “One must
is to find creative ways of have an advocacy and passion for
underwriting a policy, and make it easier for a potential the customer. Never forget them. You should also create
policy holder to buy insurance. We’ve started this by a vision and a way forward. Everyone in the organization
automating the underwriting process, allowing one to should have a shared and common sense of purpose.
decide which policy to select in just 20 to 30 minutes. Lastly, you should create impact.”
In the past, and even now with some competitors, this
process has taken days to complete.” Nina also believes that more women should be part
of the companies’ boards. “Women bring a different
While Insular Life is a Filipino-owned institution, Nina perspective to the equation. I always believe that
believes that forming partnerships is another way of perspective is power. Women have that creativity and
realizing the company’s goals. “I view alliances and passion that enrich the conversations, decisions, and
partnerships positively. We’re very fortunate that the entire thought process. I’d like to see more women
Insular Life is one of the more desired companies, in the board, because that is ultimately the governing
given its scale, size, and brand. Alliances give you body that runs the organization.”
additional customers, and you’ll be able to provide
solutions, products, and services that would probably Having accomplished so much in just over a year, Nina
be challenging to start on your own. You build on says that she still has bigger dreams for the company.
each other’s strengths, and the partnership gives that “My dream for Insular Life is to be seen all over
complementary support.” Asia. We should be able to provide insurance for our
seafarers, our domestic helpers, and other Filipinos. We
On the company’s recent bancassurance agreement want to improve the lives of Filipinos.”
with Union Bank, Nina says, “It has been considered in
the past, but probably, the timing wasn’t right. However,
we needed it, and we all understood what it would take
to do a bancassurance partnership. Union Bank was PwC MAP 2017 CEO Survey 11
 Chasing talent and innovation

Technological and digital innovations challenge the way we do business. The rise
of e-commerce, for instance, has resulted in the closing of hundreds of well-known
stores globally. In the past, traditional retailers defined the way consumers behave,
the development of e-commerce and other platforms nowadays has changed the
ways people shop.

With the growing use of smartphones and the internet,

buyers now have access to more products and services “Every business is vulnerable in some
from around the world. Similarly, financial technology way to digital disruption, and those
(FinTech) has changed the way people manage their who think they are immune will soon
money and wealth. Through FinTech, people no longer find out that this is not the case. I
need to go to the banks or other intermediaries to see this as a threat which is facing all
complete their financial transactions. Loans can be
secured within a day, even without the standard bank businesses and individuals, no matter
requirements. their geographical location, industry
or size.”
The past few years also saw the rise of emerging
Alfred Peguero
technologies that include the “essential eight”: the
internet of things (IoT), artificial intelligence (AI), Family Business Leader, PwC US
robotics, drones, 3-D printing, augmented reality (AR),
virtual reality (VR), and blockchain. Cloud, mobile,
and analytics – while still important and requiring
more investments – are now known as yesterday’s
Question: Given the business environment you’re in, which of the
game-changers. Technological advancements and following do you most want to strengthen within your organization
human creativity are the major drivers of these changes to capitalize on new opportunities? (check all that apply)
innovation is the core.

With the rapid developments in technology coupled

with a renewed focus on improving macroeconomic
policies and investments, we asked our CEOs to
71%
Innovation |
identify the areas that they need to strengthen to Digital and Technological
Capabilities
capitalize on new opportunities.

Innovation as well as digital and technological

capabilities topped the list of priority areas. Such
findings show that our CEOs believe that innovation 67% 54% 50% 33%
will play a key role in growing their businesses, and Human Competitive Customer M&A and
Capital Advantage Experience Partnerships
that they should play a major role in driving innovation
within their organizations.

12 Building partnerships in ASEAN: Reimagining the possible

While the Philippines is still business environment. Jeremy Jacob
developing advanced technologies, Abano, CEO of Howden Insurance & “Invention comes in
18% of our CEOs say that technology Reinsurance Brokers (Phil) Inc. said, many ways, shapes, and
has completely reshaped their “We need to look for opportunities processes. Once you
industries in the past five years; to improve what we do, and to do have an invention, it leads
55% say that technology has had new things for our clients. We know to another one. In fact,
significant impact upon their that creative ideas are the solutions
you can combine several
industries. Similarly, most CEOs to future needs and that everyone
believe that technology will still in the company has them. We inventions to come up with
change the competition in their should also make change happen a new one, or innovate
industries in the next five years. and encourage a can-do culture, an existing one to do an
empowering our people to make improvement. When you
decisions and deliver solutions to start creating something,
In a competitive environment,
our clients, creating a stimulating it will eventually lead to
innovation can be evolutionary,
environment in which to work.” several inventions.”
which leads to gradual changes
and progressions including drastic
changes or new approaches that are
Pete Delantar
often disruptive in nature. Whether CEO, Nature’s Legacy
evolutionary or revolutionary,
innovation is about being flexible
and agile, using and leveraging
technology to adapt and grow in
an ever-dynamic and changing

Question: To what extent do you think technology changed the Question: To what extent do you think technology will change the
competition in your industry over the past five years? competition in your industry over the next five years?

18% 24%
Completely Completely
reshaped the reshape the
industry industry

55% 59%
have significant Will have
impact significant impact

25% 17%
have moderate Will have
impact moderate impact

PwC MAP 2017 CEO Survey 13

 Chasing talent
and innovation

As people become more informed

“In technology, things and discerning, business leaders
move really fast. We need recognize that their organization’s
to be up-to-date with success and growth will increasingly
the current trends. Most depend on using and taking
especially, we need to advantage of technology to meet and
satisfy the ever changing consumer
be in tune with what the
needs and demands.
customers need. With
so much information
available, you need to go
back to why you’re doing
business, what problems
you’re trying to solve, and
what the customers are
asking for. When you go
back to those questions,
you grow with your Based on CEOs’
customers.” responses,
the following industries
Wesley Chiongbian
were significantly
CEO, Mynimo
impacted by
technology.
Agriculture

Telecom Financial
services

Consumer
& retail

Education Food &

beverage

Healthcare
/ pharma

14 Building partnerships in ASEAN: Reimagining the possible

Question: Are you currently engaged with or considering engaging
with partner/s through joint ventures, strategic alliances or informal
collaborations? If yes, with whom?

Business networks,
24% clusters or trade 9% Competitors
organisations
Yes

50% 20% Customers 9% Startups

28% 19% Suppliers 2% Government

No but
considering it
Firms from other
16% 1% NGOs
industries

With the growing impact of business leaders shifted to forming

technology on businesses, CEOs are partnerships to help them innovate. “Collaboration is key
now taking the responsibility for Fifty percent of our CEOs say that for success and growth.
directing and inspiring innovation. they are currently engaged with The key is to identify the
In the past, innovation focused partners through joint ventures, right partner that will not
on ways to improve the products strategic alliances or informal only open new markets,
and services. Today, innovation collaborations. Twenty-eight percent
increase customer base,
has evolved to transforming what of our CEOs on the other hand, are
companies sell, and how they sell considering engaging with partners. strengthen your innovation
those products and services. capabilities, and leverage
the use of emerging
Customers, suppliers, and firms technology but more
In the Philippines, investing in from other industries top the list of
importantly, align with
innovation and technology may our CEOs’ partners. Such findings
still require significant capital show that our CEOs support your business ethics and
given that technology is still in the collaborations to innovate further. values,”
developing stages. As an alternative,
Jocelyn Pick
CEO, Profiles Asia Pacific

PwC MAP 2017 CEO Survey 15

 Chasing talent
and innovation

Talent and innovation: The key

to achieving positive change

Dennis A. Uy
Chairman/President,
Phoenix Petroleum Holdings Inc.

Starting with a single storage tank, 11 employees, and

no revenue stream in Davao in 2002, Dennis Uy has
grown Phoenix Petroleum to 518 retail service stations
as of June 2017, making it the leading independent and
fastest-growing oil company in the Philippines. “Our working relationship is very open, and is based on
trust. They have been very helpful in more ways than
“The oil deregulation paved the way for us to enter just a partner. They’re family,” he added.
the industry and to tap underserved markets. The
penetration rate then in terms of station per capita was With Dennis’ deep experience in logistics as well as the
very low so we were able to serve more by bringing SM Group’s strengths in retail, their partnership in 2Go
more stations to the Visayas and Mindanao markets,” is moving in the right direction. Because of the scale,
Dennis relates. 2Go can offer competitive pricing and better services
to SM’s retail business. In the same manner, the
The presence of the “Big Three” – Petron Corp., investment in 2Go gives the SM Group the infrastructure
Pilipinas Shell, and Chevron – did not stop Dennis from to get into e-commerce. On the fuel side, Phoenix
growing his oil business. “We disrupted the market Petroleum can also offer good pricing and services to
through our customer value proposition, and we 2Go.
decided that we should be in more locations. Because
we started with small stations, we were able to lower For Dennis, innovation through his partnerships came in
the threshold for business partners to come in and to the form of strategies. “We get the best practices and
open their stations. We gave more advice from our business partners. We
incentives to our dealers, and have moments of brilliance with them
“We have moments that allow our strategies to be different
we were more flexible in terms of
decision-making. Those factors of brilliance with our from those of our competitors.”
enabled us to give more choices partners that allow our
to consumers, allowing Phoenix to strategies to be different.” Despite his success and track record,
grow despite the presence of the Dennis understands the value of
multinationals.” employees and their contribution to
the business. He demonstrated this
While Dennis says that being a small player allowed when he entered the education sector through Enderun
them to be dynamic and have their niche, he admits Colleges. “If the management team will not stay, I told
that the major disadvantage at the time was a lack of them we will not acquire the business. It’s the people
sufficient capital as well as the ability to expand fast. He who made Enderun what it is today. We’ve asked them
hurdled this challenge with the help of his partnership to continue and stay on.”
with the SM Group. “Only a few people know that BDO
has been very supportive of our group. They gave us With his recent acquisitions and the initial public offering
our first clean credit line in 2006 when Phoenix was just of Chelsea Logistics Holdings Corp., Dennis believes
starting. They were also our underwriter when Phoenix there are still lots of opportunities in the country. Asked
went public in 2007.” about his plans for the group, Dennis replies, “We
need to educate and give inspiration to our peers, for
From starting with a lender-borrower relationship, them to be brave and bold in their business ambitions.
Dennis’ relationship with the SM Group evolved, recently Our group will continue to work hard and seize
becoming business partners when they invested in opportunities. We will work hard for the companies that
2Go. “Whenever I have opportunities to grow our group, we have. We will deliver good returns, not only to our
I always go to BDO first. Fortunately, when the 2Go shareholders, but to our people and the communities we
opportunity came, which was too big for our group, I are in. We want to be a right partner of the government
approached them and asked if they were interested.“ and a good corporate citizen.”

16 Building partnerships in ASEAN: Reimagining the possible

While the lack of financial without investing significantly in presence and use of the internet,
resources is among the top barriers financial and human capital. social media, and digital devices,
to innovation, the lack of talent companies cannot simply grow
also prevents companies from using their traditional practices.
Despite the growing number of
innovating. To address such issues, Investing resources, time, and effort
collaborations across different
companies opted to focus on their in technology and innovation will
sectors, our CEOs should keep in
core businesses while partnering help protect a company’s position in
mind that their role is still to lead
with other industry players who the market.
and drive innovation within their
complement their products and
organizations. With the increasing
services. Such partnerships came in
the form of investments, franchise
agreements, and other related
arrangements. Local partnerships and alliances

In the retail sector, for instance,

the SM Group formed a strategic
Globe
alliance with Lazada to sell products Spotify
Telecom
ranging from toys to clothes through
Lazada’s online platform. Similarly,
the Sterling Group of Companies
acquired internet services company JG
Net
Openovate Labs and its e-commerce Summit Oriente Flyspaces
Holdings Group
business, Galleon.ph. Sterling’s
investment in these companies
will help sell their retail products,
and will allow the company to
enter the IT industry. In the SM
Lazada
telecommunications sector, Globe Group
partnered with Facebook, Spotify,
Netflix, and other providers to help
grow their user base through the use
of data. Such partnerships show that RCBC Acudeen
companies were able to accelerate
their growth and tap new markets

Tough questions
1. What are the top three aspects in your organization that you need to innovate in the next three years?

2. What constraints are stopping you from being more innovative?

3. What is your primary role in driving innovation within your organization?

4. What are the key skills needed by your team for your planned innovations?

5. How will partnerships expedite your chase for talent and innovation?

PwC MAP 2017 CEO Survey 17

 Chasing talent
and innovation

Overcoming the barriers to innovation will likely require new ways

of building it into the strategic and operational management of the business.

Political and Existing

Lack of Financial
Technology regulatory organizational
talent resources
factors culture

Companies should Existing laws or Building innovation Funding should be There is a need to
have the right regulations that into everyone’s job managed in a smart eliminate
technology and tools have not been description and and efficient manner bureaucratic
to support the plans amended for creating to ensure that there decision-making
or changes to be decades need to be opportunities for are enough processes that slow
implemented. reviewed to support collaboration that go resources to support down the
the current beyond the the changes to be commercialization of
environment to traditional roles are made. innovation.
promote innovation. important to promote
innovation.

1.) Reflect your vision and appetite

for innovation in the way you
innovate (collaboration, employee
empowerment, customer
engagement, time horizon, etc.).

2.) Articulate your vision and

appetite for innovation to
employees, investors, and
business partners.

Five tips
3.) Ensure that your employees
on creating see that creating, promoting, and
executing new ideas are part of
full value their job.

innovation 4.) Ensure that the processes for

decision making and
organizational mobilization are
quick enough to bring new
innovations to the market ahead of
the competitors.

5.) Ensure that there are effective

ways of measuring and tracking
the return on investment as well as
the ability to meet the customers’
changing expectations.

18 Building partnerships in ASEAN: Reimagining the possible

Uplifting lives:
Localizing a global brand

Rizalina G.
Mantaring
CEO and Country Head,
Sun Life Financial Philippines

Known for its integrity and excellence, Sun Life has been
a trusted brand across the globe for 122 years. Riza
Mantaring has been successful in adopting Sun Life’s
global values and practices in the Philippines, allowing houses, they have no money left for themselves. We
them to keep their top position in the life insurance sector came up with a solution together with 8990. Once the
in 2016 despite the challenges faced by the said sector. mortgage is paid, a pot of money has been set aside for
these customers to use when they retire. They can even
“When times are bad, I think that’s when you’re going continue growing that pot.”
to see the impact of your quality because when your
company lives by that, people will recognize it. Your clientsSun Life’s partnerships began with a clear vision.
will stay with you. We also tell our people that those who “We’ve partnered with others because like kindred
really understand what they’re doing will continue to do spirits, we both desire to improve financial literacy,
well, whatever the situation is.” and promote financial inclusion. To be able to be real
contributors to society, we have to uplift everybody, not
Being part of a global organization, Sun Life Philippines just the wealthy. It’s not just altruistic. We want to grow
benefits from its affiliation. “The governance practices in our market also. We’d like to be able to help bring up
Sun Life are really world-class the disadvantaged segment of the
because we have to conform to population to a more prosperous
the regulations in Canada and the “I would hope that ten level. In doing so, we’d be able
US. We also benefit by learning years from now, where I to help ourselves, but even more
from what our counterparts are will be and what I will do gratifying maybe to us personally is
doing. The best part of being in to be able to help build the country.”
is not anything that I can
such a large organization is the
opportunity to share and learn the imagine today.”` Aside from tapping new markets,
best practices and innovations. Riza is also changing the way they
The Sun Life group also recognizes our innovative serve their clients. “Right now, we’re already doing real
practices. Our marketing campaigns, for instance, have data analytics, not just data mining, to be able to get
been adopted in other territories,” Riza proudly shares. the insights of our existing and potential clients. We’ve
put up centers of excellence, both in the corporate and
With their target of five million insured Filipinos by 2020, regional offices, and even here locally so that we could
Riza saw the need for innovation. “When we decided to really explore and use these new technologies. For me,
target five million Filipinos, we knew that we would never don’t let the technology kill you. Use it to transform your
be able to reach that if we did the same things. We need own business so that you will always stay ahead of the
new distribution channels, we need new ways of reaching curve.”
people because one of their problems is accessibility.
With the middle and lower-middle market, the problems Despite her numerous achievements for Sun Life
are accessibility and affordability.” To help them achieve and herself, Riza remains excited about the future.
their goals, Sun Life partnered with PLDT and Smart in “The future still excites me. I’m a nerd at heart. The
developing financial technology for emerging markets. The possibilities that we can do as a company, and how
company also partnered with 8990 to provide financial we can help transform lives – these excite me. I would
services to lower-cost home buyers. Sun Life also formed hope that five years from now or ten years from now, I
an alliance with Universal Storefront Services Corporation would be doing different things. As I tell our people, you
to widen their reach. should be doing things differently five years from now.
Otherwise, you would be obsolete. So I would hope that
When asked about their tie-up with 8990, Riza explains, ten years from now, where I will be and what I will do or
“Our partnership with 8990 is really very innovative. They what I will be doing is not anything that I can imagine
told us that their customers from the lower-middle market today.”
are buying low-cost homes, but after paying for the
PwC MAP 2017 CEO Survey 19
 Improving success rates
in partnerships
Traditionally, companies grow their business by improving existing products or
services, developing new products, expanding from one geographic market to
another, and improving efficiencies within the organization.

While commitment to organic growth is essential to distribution channels, funding, manufacturing

a company’s success, such traditional ways require capability, equipment, knowledge, and/or intellectual
significant investments and time. The success rates property.
of launching new initiatives within the organization
may also not be consistently high, given the complex
In the Philippines, companies, both the large and
and experimental process. Recently, companies have
emerging ones, are forming more JVs as seen in recent
realized that organic growth may not always be the
deals. Companies such as Asia Brewery (Philippines),
best solution to achieving the target objectives. As an
BDO Unibank, Inc., Gothong Southern Shipping
alternative, companies have shifted to mergers and
Lines, SSI Group, Universal Robina Corp., and Federal
acquisitions to accelerate their growth.
Land, Inc. have entered into partnerships to introduce
new brands and/or products, lower supply costs, and
In more recent years however, companies have looked share technology. Such initiatives show that while
beyond the traditional acquisition/disposal model, maintaining control is important for most Filipino
and have shifted to forming joint ventures (JVs) and business owners, there are certain growth targets
strategic business alliances. In both forms, the parties that can be achieved through sharing of control and
complement each other through sharing of products, resources, and working together.

Selected Joint Ventures

Period JV Parties JV Entity/Project Industry

Asia Brewery Heineken (Germany) AB HEINEKEN Food and beverage

2016
(Philippines) Philippines. Inc.

2016 BDO Unibank, Inc. Nomura Asia BDO Nomura Securities, Inc. Financial services
(Philippines) Investment (Singapore)

2016 Gothong Southern Suzue Corporation Gothong-Suzue Logistics

Shipping Lines Inc. (Japan) Philippines Inc.
(Philippines)

2017 SSI Group Ryohin Keikaku Muji Philippines Corp. Retail

(Philippines) Co. Ltd (Japan)

2017 Universal Robina Vitasoy (Hong Kong) Vitasoy - URC Food and beverage
Corp.
(Philippines)

2017 Federal Land Inc. Nomura Real Estate Sunshine Fort Landmark Real estate
(Philippines) (Japan)

Isetan Mitsukoshi
Holdings Ltd (Japan)

20 Building partnerships in ASEAN: Reimagining the possible

Key differences between alliances and M&A

Key nuances of
alliances and M&A
M&A
Can't shift gears easily – a
Alliances Unilateral planning
lot must be planned upfront

Collaboration and Conflicting agendas opposing Agreements must be

Agreement co-creation objectives (buyer/seller) flexible
negotiation Upfront planning on the exit
Flexibility due to same end
Infinite conditions should be
game
agreed
Duration
Finite Clear agreement on how
Individual risks and rewards will be
Benefit & risk
shared
allocation
Shared Need to collaborate in
One management team
decision making
Governance
Numerous management Recognize the inherent
teams One prevailing culture differences in cultures,
Culture embrace, and adapt
Different cultures of partners Alliances must be reviewed
Integrate acquisition
Strategic regularly around specific
alignment milestones
Regular review of alliance

Our CEOs are well aware that While a significant portion of business plans, poorly crafted legal
partnerships—whether in the our CEOs say that they will be and financial terms and conditions,
form of a merger, acquisition, completing an M&A transaction and poor/damaged working
joint venture, or alliance—face a or will soon enter into an alliance, relationships. As such, investing
high risk of failure if not planned 36% say that they have not started time, effort, and resources in upfront
and executed properly. Thirty- preparing for such partnerships. planning is a must to increase the
three percent of our CEOs say This is clearly a concern because lack chances of having a successful
that improving the financial and of proper planning may prevent the partnership.
accounting reporting processes parties from achieving the objectives
were part of their preparations for of the partnership. In most cases,
possible partnerships, and 25% say partnerships fail to achieve the
that they prepared by enhancing the desired objectives because of flawed
corporate governance structures. strategies, poor execution of the

Question: What preparations, if any, have

you completed before you entered or in 33% 25%
your plan to enter into possible Improving financial
Enhancing corporate
partnerships? (check all that apply) and accounting
governance policies
reporting processes

64%
have completed or are
planning to undertake 23%
preparations before Hiring more
entering into external
professionals to join
partnerships

19% 12%
Restructuring the
Hiring an external
group's legal and tax
advisor
structure
Others:
Alignment of internal processes and
structure, in-depth study, etc.

PwC MAP 2017 CEO Survey 21

 Improving success
rates in partnerships

Selecting the right partner is also a As seen in recent deals, partnerships option, right of first refusal, and
critical part of the planning process. are not always built to last. It is other termination clauses. While
In most cases, alliances are formed essential to define the termination planning for an end is difficult,
because of the qualities that the conditions as you are starting a having an exit strategy at the outset
partner brings, and not just because partnership, and an exit strategy may help minimize liquidation
of the financial contributions. It is must be developed to have a clear costs and stress for all the partners
important to define the criteria for and objective approach. Exit involved.
selecting the business partner at strategies may include a buyout
the early stage to avoid conflicts or
ending up with the wrong partner.

Our findings show that product Question: Rank the following from 1 to 7 in the order of importance for ideal partners: (1
or service offerings as well as the being the highest)
management team’s capability are
the top priorities in selecting the ! # % &
Product or Network/ Financial Others
ideal partner. Surprisingly, financial service offering Market coverage resources (Talent, cultural fit, terms)

resources ranked fifth on the list of

priorities. This clearly shows that
companies are now looking for more
sophisticated partnerships–those
that are not just driven by financial
strength.
@ $ ^
Management Good Operating
team's capability governance model/
fundamentals

Finding the right partner is often a

difficult and challenging process.
As they often say, partnerships or
Question: Have you (whether in your current or previous role) walked away from a potential
alliances are like marriages because
partnership or terminated an existing partnership? If “Yes”, what was/were the top reason/s?
the partners need to share the
common vision, and work together
towards achieving the goal while
strengthening the relationship.
55%
have walked away from
Oftentimes, partnerships end or terminated a
because the goals and objectives of
Not sharing the 48% partnership 40% Mismatch of
same vision personalities in
each partner change over time. Not management team
growing together as partners may
Partner not Partner
also result in a failed partnership delivering on his 33% 32% demanding too
despite having a successful business. promise much control
This is clearly evident in our survey
Partner has
where 55% of our CEOs say that insufficient
they have either walked away from a Lack of clear 25% 13% industry
structure
potential partnership or terminated experience
an existing partnership. The major Negative market Others:
reasons cited were not sharing feedback 11% 13% Disagreement on terms,
financial capability, etc.
the same vision, mismatch in the
personalities of the management
team, not delivering on the
promises, and demand for too much “I believe that entering into partnerships should not solely be
control. based on increasing market share or revenue growth. Instead,
potential partnerships should be strategic in nature so that any
potential advantage would be sustainable.”

Jeremy Jacob Abano

CEO, Howden Insurance & Reinsurance Brokers (Phil) Inc.

22 Building partnerships in ASEAN: Reimagining the possible

The power of communication:
Connecting communities
through partnerships

Ernest L. Cu
President and Chief Executive Officer,
Globe Telecom Inc.

Ernest Cu has been at the helm of the Globe

Telecom’s revolution in the mobile industry for the
past nine years. The company he joined in October
2008 as deputy CEO was very different from the one Ernest, however, admits that things don’t always go
we know today. At the time, Globe had 25.4 million as planned when two parties are involved. “A failed
subscribers, and a revenue growth that was not as partnership is when that win-win scenario doesn’t
robust as the one we see today. In 2016, however, a materialize or a partner does not hold true to the
more resilient company led the market with a strong promises made early on, or there is a sudden change
65.2 million subscriber base. in personality. A partnership has certain physics. The
physics is you’re both in the same direction, and the
“If you’re going to compete, compete differently.
momentum that you want to build. The chemistry
Use a way to compete that your competition cannot
among the partners is also very important. You have
follow.” From a utility company, Globe Telecom has
to be able to work with them, and speak honestly to
transformed itself into a technology, consumer, and
each other. The math part is asking if the numbers
service entity. Globe would not be the company
will work. If the trajectory that they want to go or the
that it is today had it been unable to adapt to the
direction suddenly changes, maybe it’s time to call it
changing industry landscape.
quits.”
Ernest is no stranger to
When asked about the success of
entering into partnerships
“If you’ve built a culture, their partnership with Singtel, Ernest
to address big challenges.
says, “Sharing of experiences across
“We really need to do that you’ve built a system, that’s
many markets is very important.
because you cannot build strong enough to stand We share strategies and we share
everything yourself. Our without you – that to me is products. We openly share the
principle here is that if we
the ultimate success.” concepts with each other to launch
can take advantage of what
products quickly.”
they’ve built to further our
own brand and product, we’ll Continuing this success is and will definitely be no
partner with them, instead of assuming that we can easy feat. Innovation and fresh marketing – these
compete head on with them.” are the elements Ernest recognizes as keys to the
success of Globe.
An example he shares is that of Facebook
Messenger, which has taken over Globe’s own SMS When asked about his own take on success, Ernest
service. Ernest’s strategy was to bank on what he replies, “If you take people with you on the journey,
calls the “win-win scenario” by riding on Facebook and they also feel successful – that it’s not only
to spur the use of mobile data. “Facebook has your success. If you’ve built a culture, you’ve built a
more subscribers or more accounts set up as it system, you’ve built a process that’s strong enough
became the de facto social media network of choice, to stand without you – that to me is the ultimate
eliminating all the others. Globe, at the same time, success.” He hopes to have done enough in Globe,
got more revenues from this because the habits not only to be a lynchpin during his time, but to one
were built on mobile data.” Spotify is a Globe partner day be able to pass on a solid foundation to the next
today for the same reasons. “What we have is a CEO. “The saddest part will be seeing what you have
great ability to market, and a great ability to build the built over the past years suddenly fall apart simply
consumers for the subscription fees of that particular because you’re not there. It means you haven’t done
service. Our place was marketing and billing, theirs your job.”
was the application,” Ernest says of his strategy.

PwC MAP 2017 CEO Survey 23

 Improving success
rates in partnerships

Carefully planned partnerships Common challenges that 5. Exit issues – Partners need to
or alliances often lead to success, can derail partnerships consider the conditions under
and allow the organization to reap which they would want to
rewards such as higher revenues, 1. Establishing trust – There dissolve the arrangement and
and economies of scale. As one needs to be a high degree of then hammer out the details,
CEO said, “Good partnerships are trust, transparency, and mutual including such issues as the
anchored on long-term goals, and understanding among the handling of jointly developed
not on quick fixes to shore up the participants, and they must be intellectual property and the
bottom line.” With this in mind, nurtured and managed very incurring of liquidation costs.
starting with a strategy instead of a carefully.
partner is important to understand
why a potential partnership will 2. Cultural differences –
help the organization become more Understanding one another’s
effective. Factors to be considered cultures and values is essential
include market trends, competitor to be able to work together “While the benefits
actions, and the potential structure– towards a common goal. are clear, entering a
whether a joint venture or a merger. partnership can likewise
3. Unanticipated events – Partners be complex. Finding
should foresee the possible
the right partner is a
Melito Salazar, Jr., CEO of Omni events such as a regulatory
Pay, Inc. said, “Everyone needs a challenge, change in the critical first step. As the
partner, but finding the right one is competitive landscape, and relationship requires
the key.” Forming partnerships may change in one organization to sharing of resources and
be challenging for most companies. ensure that the partners will be risks, trust is an important
Nevertheless, companies who take able to adapt to the changes. ingredient in a partnership.
a collaborative approach built on Well-articulated
trust while ensuring a formalized 4. Lack of performance monitoring
plans, clear roles and
and well-planned execution will – Performance metrics are
ultimately a reflection of what
responsibilities, and fair
experience exciting times as the allocation of risks and
partners grow together. each stakeholder considers
most important about the rewards should be tabled
alliance — in other words, at the outset.”
they are fundamental to the
success of the alliance and need Mary Jade Roxas-
to be agreed on at the outset, Divinagracia, CFA®
not cobbled together once the Deals and Corporate
alliance is up and running. Finance Managing Partner,
PwC Philippines

Tough questions
1. How will you and your partner complement each other?

2. How will you and your partner share the risks and benefits?

3. What factors have you included in your partner selection and due diligence process?

4. What are the commitments of each partner, and how will you monitor the delivery of such commitments?

5. How will you untangle the partnership when the relationship no longer makes sense?

24 Building partnerships in ASEAN: Reimagining the possible

Sharing the vision: The importance
of going beyond synergies

Manuel V.
Pangilinan
Chairman, Metro Pacific Investments
Corporation

With his experience in investment banking, management,

and telecommunications, Manny Pangilinan helped start
Metro Pacific Investments Corporation (MPIC) in 2006.
From its initial venture in water through Maynilad Water engage advisors. There’s also an element of gut-feel in
Services, Inc., Manny transformed MPIC to an empire our investment decision-making process. The rule of
with investments in water, power, toll roads, hospitals, thumb in the group is if you feel comfortable with your
rail, and logistics. gut to the extent of 70%, then you’re probably okay.”

As one of the top dealmakers in the Philippines and in For Manny, investment is both a science and an art.
the region, Manny proved that partnerships, if executed “There’s a scientific element to it because you have your
properly, will lead to great results. MPIC’s financial advisors and your internal team. It’s also an art because
success and global recognitions reflect what they have you are asking yourself whether you are making the right
achieved from their partnerships with DMCI Holdings, decision. At the end of the day, it’s a gut sense—do you
Inc., Marubeni Corporation, Ayala Corporation’s AC feel good about it? You may be right or wrong at that
Infrastructure Holdings Corporation, the Philippine point in time when you’ve made a decision, but it is only
Investment Alliance for Infrastructure’s Macquarie the facts that will bear you out whether you’re right or
Infrastructure Holdings (Philippines) PTE Ltd., GIC of you’re wrong.”
Singapore, and GT Capital Holdings, Incorporated,
amongst others. As for the right partners, Manny stresses the importance
of having alignment in vision as well
Asked about how he decides as governance. “You want to ensure
on new investments, Manny “Success is not about the that their plans comport with our own
replies, “We take a look at the vision of what a particular company
legacy I could leave behind, ought to be. Number two are
overall economic structure, and
see if there are inefficiencies but the improvement I could financial affairs. You want to make
and vacuums that exist in bring in the lives of our sure that they’re in order, disclosures
the economy of the country. are okay, the numbers are not
people.” fudged, and they are presented
We look at the needs in the
beginning to determine where as truthfully as can be, and the
we enter as an investor. The second part relates to the governance principles are adhered to internally.”
environment of the country - the culture, the regulatory
regime, the political system, and the banking and Manny also recommends that one should strike a
financial regulations, which could impact the way you do balance between the right set of characteristics and
business in that particular country.” good chemistry. “Look for a partner that could add value
to the business that you have or the company you’re
Even while we are still at the very early stages of ASEAN investing in - typically, a partner that is in a related
integration, Manny is building off from their experiences business. Chemistry is also very important because
and expertise in both the water utility and tollways to partnerships are like marriages. You will be together for
expand in ASEAN. “We rely on rifle shots – specific a long time. While there will be the legal documents that
opportunities in specific industries where we think we’re will formalize the arrangements and the relationship that
quite good at and where we have a home base that is you have between you and your partner or partners, but
large enough to enable us to venture into other countries. if you get into a legal situation, you prefer that you don’t
Maynilad Water has the expertise and the scale to be actually.”
able to export both this investment and its expertise. So,
the vision for Maynilad is not to become only a Philippine For Manny, success is not accomplished through
water company but also an ASEAN water company. achievements and milestones. “Success is never an
We’re replicating that on tollways.” endpoint. As they say in investment banking, you’re
only as good as your last deal….Success is not about
Manny also admits that he considers both due diligence the legacy I could leave behind for our people, but the
and intuition when making investment decisions. improvement in the lives of our people. If I could say that
“Clearly, we would approach any investment in a very we’ve managed to do that – even if we touch the life of
analytical manner. If we think that it’s an attractive a single person – I would be able to say that I am truly
investment opportunity, we would pursue it, and typically happy.”
PwC MAP 2017 CEO Survey 25
 Partnerships in ASEAN

Tapping new markets, acquiring new customers or distribution networks as well as

gaining access to better technology, talent, and more resources motivate companies
to complete cross-border deals.

Such drivers helped grow the global M&A deals, which our CEOs decided to focus on the Philippines because
reached US$1.49 trillion in the first half of 2017, 8.4% they believe that the market and growth are still in the
higher than the value recorded in same period in 2016. country. Most investors, both local and foreign, choose
In the Philippines, there were six announced outbound to expand in the Philippines because of the friendlier
deals in 2016, of which five were completed by listed fiscal policy under the current administration as well
companies. as the ongoing tax reforms. The stronger relations
with China may also help boost the investments in
infrastructure and exports. Similarly, the stable global
While the global economy is seen to grow by 2.9%
growth will help sustain the OFW remittances, which
annually from 2017 to 2021, the number of CEOs who
will also help maintain the stability of the Philippine
plan to compete outside the Philippines declined from
economy.
56% in 2016 to 45% in 2017. On a positive note, most of

$656.4bn 44% $481.9bn 32% $14.4bn 1%

$272.9bn 18%
$25.2bn 2% $38.4bn 3%

1H 2017 Global M&A 1H 2017 Asia Pacific M&A (excluding Japan)

Total deal value: US$1.4 trillion, 8% higher than 1H2016 Total deal value: US$272.9bn, 7% lower than 1H2016
Cross-border deal value: US$703.8bn, 28% higher than 1H2016 Inbound Deal value: US$38bn, 6% higher
Outbound Deal value: US$55.7bn, 58% lower

Source: MergerMarket

26 Building partnerships in ASEAN: Reimagining the possible

Announced Philippine Outbound Deals as of July 2017

Completion/ Bidder Target Target’s Target’s

Announcement country sector
date

January 2017 Emperador Inc. Grupo Garvey Spain Food and beverage

April 2017 Integrated Micro- STI Enterprises United Kingdom Industrial:

Electronics, Inc. Limited Electronics

June 2017 AC Industrial MT Misslbeck Germany Automotive

Technology Holdings Technologies GmbH
Inc.

July 2017 San Miguel Corporation Barossa Bottling Australia Manufacturing

Services Pty Ltd

July 2017 Cirtek Holdings Quintel Technology USA Telecommunications:

Philippines Corporation Limited Hardware

Announced Philippine Inbound Deals as of July 2017

Completion/ Bidder Target Bidder’s Target’s

Announcement country sector
date

January 2017 Knight Frank LLP CB Richard Ellis United Kingdom Real estate
Philippines Inc.

February 2017 Ant Financial Globe Fintech China Computer software,

Services Group Innovations Inc. internet/e-commerce

March 2017 BCPG Public PetroWind Energy Thailand Energy

Company Limited Inc.

April 2017 MAA International MAA Generak Malaysia Financial services

Assurance Ltd Assurance Philippines,
Inc.

May 2017 Partners Group SPi Global Holdings, Switzerland Services

Holding AG Inc.

June 2017 Arkray, Inc. HDK Philippines Japan Industrial:

Inc. Electronics

June 2017 Epta S.p.A King Richard Shop Italy Industrial products
Systems, Inc. and services

PwC MAP 2017 CEO Survey 27

 Partnerships in ASEAN

Myanmar Thailand Cambodia

US$75.1bn US$1,420.5 US$406.3bn US$5,901.4 US$16.9bn US$1,078.4

GDP GDP per capita GDP GDP per capita GDP GDP per capita

52,885,223 68,863,514 15,762,370

Population
Population Population

Laos Vietnam Philippines

US$11.1bn US$1,642.7 US$164.1bn US$1,770.3

GDP GDP per capita
GDP GDP per capita
US$284.5bn US$2,753.3
GDP GDP per capita
6,758,353
92,701,100
Population
Population
103,320,222
Population

Malaysia Brunei

US$343.9bn US$11,028.2 US$13.3bn US$31,431.0

GDP GDP per capita GDP GDP per capita

31,187,265 423,196
Population Population

Singapore Indonesia

US$294.9bn US$52,600.6 US$1,037.6bn US$3,974.1

GDP GDP per capita
GDP GDP per capita

5,607,283 261,115,456
Population Population

ASEAN’s
most recent macroeconomic
performance

4.7% GDP growth1

US$2.6 trillion
Total real GDP2

638.6m Total population

Source: IMF, World Bank
Note:
(1) GDP growth rate reflects the average
2014 - 2016 GDP growth in ASEAN nations.
(2) ASEAN total real GDP has been computed
as the sum of all real GDP’s of ASEAN nations.
(3) GDP, GDP per capita, and population for
each country were based on full-year 2016 data.

28 Building partnerships in ASEAN: Reimagining the possible

Vietnam, Indonesia, and Malaysia, as the government’s commitment
topped the list of countries where to ease red tape, and grow “Understanding,
CEOs want to expand. Consistent infrastructure spending. In the awareness, and respect for
with the results of the 2016 survey, same manner, Malaysia is still cross-cultural differences
our CEOs would like to prioritize expected to grow as a result of the is important for expanding
these countries mainly because improved political outlook and
in growth markets. One
of the bright economic outlook. exports. With Vietnam, Indonesia,
Vietnam’s economy, for instance, is Malaysia, and the Philippines,
must have the flexibility
expected to benefit from the strong the ASEAN will remain a top to make adjustments
investments in the manufacturing performing region as a result to differences in local
sector, openness to trade, political of its robust macroeconomic practices and tradition
stability, growing tourism sector, fundamentals, economic and without sacrificing
and ongoing reforms. Similarly, political reforms, improved trade, business ethics. Identify
Indonesia’s GDP growth is and favorable demographics. and assess the right
expected to be stable because of business partner.”
the tax amnesty program as well
Jocelyn Pick
CEO, Profiles Asia Pacific

Question: Over the next three years, how likely will your
organization compete in a country other than where you are Preferred countries
currently? If “Very likely” or “Likely”, which countries will your 19%
organization likely enter? Otherwise, what are the reasons why you Indonesia
have decided to stay and expand in the Philippines?
20%
Vietnam 16%
Malaysia

14%
Singapore
Reason for staying in the
11%
Philippines 11% Thailand
Myanmar

50%
Other reasons: will likely
stay and
45%
Business is not will likely compete in other countries
56% 53% ready, lack of expand
Growth is Market is financial capital, too locally
here here much risks
Preparations before going overseas
Top five challenges
in going abroad

48% 48% 45%

Build Collaborate with Research and Others:

Regulatory Cross-cultural Finding network local partners due diligence Understand cultural
requirements management adequate local issues, build talent,
talent etc.
Finding the right Competition
business partner

PwC Cebu 2017 CEO Survey 29

 Partnerships in ASEAN

The power of partnerships:

Globalizing a ‘Filipino business’

Ramon R.
del Rosario, Jr.
President and CEO, PHINMA Corporation
With their mission of improving the quality of lives,
PHINMA Corporation has been serving the Filipinos
through their investments in education, housing,
energy, hotels, steel products, and knowledge process for you. Your ball carrier should not only be a technical
outsourcing for over 60 years. expert, but must also have the personality and self-
confidence. The ball carrier should be one of your most
Just recently, PHINMA’s mission has broadened from
competent people who can deal with different cultures.
improving the lives of Filipinos to enabling them to
Most important, find the right partner. Partners are very
help others in the region. Ramon del Rosario goes into
critical not so much because of their ability to contribute
detail: “Our mission has changed. Now, it’s making lives
capital, but because of their ability to share their
better for Filipinos, and others who can benefit from
knowledge about local conditions, market, regulations,
the services that we provide. In this day and age, we
and experience in maneuvering through the bureaucracy.”
no longer think of ourselves only as Filipinos, but also
as members of a broader ASEAN community. We have What does PHINMA look for in a partner? Ramon says,
decided that it’s time for us to reach out, and share “It’s important that we share a common vision. We also
whatever modest things that we could contribute to our like to stress the fact that our enterprises have a higher
ASEAN brothers and sisters.” purpose, which is to benefit the population we are serving.
In the case of Myanmar, it is the poor who need good
As part of their bigger mission, PHINMA opened
quality education. That vision needs to be shared because
a healthcare training center in Myanmar in 2016 in
it does not come naturally from business enterprises to
partnership with the Victoria Hospital Group. “Education
balance those objectives. Oftentimes, businesses are
has become one of the flagships of the PHINMA group,
primarily interested in generating profits. In our case, we
and we’re very excited about the work we’re doing
have come to the conclusion that it’s not really a sacrifice.
because it’s education that addresses the needs of the
It’s a market that needs to be served, and it is a market
poor. We think that the experience that we’ve developed
from which reasonable returns can be realized if you run
here in the Philippines can benefit not only Filipinos, but
your enterprises properly and efficiently.”
also the people in the Southeast Asian region.”
With PHINMA’s success in starting
Why was education their first
“The experience we a partnership in Myanmar, the
venture outside the Philippines?
group is now looking at expanding
Ramon replies, “As you know, developed here can benefit to Laos, Cambodia, Vietnam, and
Myanmar opened meaningfully not only the Filipinos, Indonesia. “We’re not a group that
six years ago. We sent our but also the people in the has a lot of experience in working
mission composed of CEOs
from our various businesses, Southeast Asian region.” overseas so we want to tread a little
softly to make sure we know what
and they surveyed the situation
we’re doing before we launch head
there. We came to the conclusion that there were many
on.”
opportunities in many sectors, but education was the one
that resonated strongly.” Despite their success, Ramon believes that they still need
to do more to uplift the lives of Filipinos as well as the
When expanding overseas, Ramon says that you
other members of the ASEAN community. He shares this
need to consider several factors. “First, identify your
advice to entrepreneurs who want to grow outside the
strengths, and see if there’s a market for it. Next, study
Philippines: “Look for what your strength is, and bring it
the regulatory environment. One should look into the
to the other countries. Be patient because things don’t
investment policies of a particular market, and confirm
happen very quickly. Lastly, look for the right partner.
that the market is receptive to investments by Filipinos.
Until you’re able to generate enough confidence in
Third, choose the right person to manage the business
yourself, and know how to navigate on your own, I think
partnerships are very critical.”
30 Building partnerships in ASEAN: Reimagining the possible
Overseas expansion may also be Once again, Vietnam and Indonesia regulatory requirements, finding
possible through other ways aside topped our CEOs’ list of important the right partner, and cross-cultural
from completing M&A deals. In countries. Other countries that they management.
our survey, we asked our CEOs find relevant are China and the US.
to identify the countries that are Expanding the current business, and
While market expansion continues
important for their companies’ entering into franchise agreements
to be part of our CEOs’ strategies,
growth prospects–not just for with local players were among
our leaders should keep in mind
potential M&A deals, but for other the major plans identified for the
that proper planning and execution
plans related to their operations. selected countries. Market growth
are key to successful regional and
These plans may include entering opportunities as well as gaining
international expansion. Factors
into agreements with suppliers, access to other major markets
to be considered before tapping
distributors, franchisees, and were among the top reasons that
other markets include ensuring a
customers. Some of our CEOs also support our CEOs’ decision to
strong local business, the team’s
already have a presence in these expand to other regions. Despite
commitment, a business plan,
countries, and may choose to further these opportunities, our CEOs
sufficient capital, research, and the
grow their businesses there. understand that going global is not
right talent.
an overnight success. Among the
major concerns of our CEOs are

10 steps to effective
Strategic planning
01 It’s about the ‘what’ 02
not the ‘how’
Stand in the future
and look back
03 Stand in the present
and look around
04 Invite input 05 Be prepared for
change

A strategic plan is about Be absolutely clear about Take a long hard look at the The CEO needs to drive the A rigorous strategic planning
setting your business goals what the future looks like, business as it is right now. strategic plan, but the more process should challenge the
over the medium term, and and then work out what you Do you have a genuine people who contribute, the way you’re operating today,
deciding the direction of the need to do to get there. competitive advantage? more likely it is to be robust. and test its fitness for the
firm. next phase.
Are your ambitions realistic?
What needs to change? If it doesn’t do that, it’s not
doing its job.

06 Set a timescale 07 Assign

responsibilities
08 Translate the
strategic plan into a
09 Measure, monitor
and adapt
10 Communicate,
communicate,
business plan communicate

A good strategic plan is like The CEO and board must Move from the strategic to As you implement the plan, Don’t just share the strategic
an itinerary – it’s about when take ultimate ownership of the tactical by turning the assess how well it’s working, plan, include the progress
you plan to reach the the plan, but specific first phase of the plan into a and whether it needs to be you’re making against it.
milestones along the way, as elements need to be owned program of action and fine-tuned.
well as the final destination. and driven by appropriate implementation over the next This builds a shared sense
managers, supported by the 12 months. Use objective Key of commitment, energy, and
budget and resources they Performance Indicators sense of direction.
need to succeed. (KPIs) to evaluate progress.

PwC MAP 2017 CEO Survey 31

 Partnerships in ASEAN

Our CEOs understand that proper or bringing their products and outside our home country. Our low
preparations are needed to be services through various modes interest rate environment as well
successful outside the Philippines. of partnerships. Some companies, as the availability of capital–both
Their key preparations include however, failed to fully realize the from the businesses’ internal funds
building their network, entering potential rewards because of the and untapped external financing–
into partnerships or collaborations missing piece–a robust strategic plan offer our CEOs the opportunities
with potential local partners, and for going international. Having a to further grow and diversify their
performing extensive research and strategic plan together with proper businesses.
due diligence. due diligence and preparations will
help ensure that the business is
moving in the right direction. “To stay competitive in the
Over the past few years, Filipino local market, one must go
companies have made their presence
global.”
felt in ASEAN and other regions With our innovative ideas and hard
by establishing their companies work, Filipinos can easily succeed Melito Salazar, Jr.
Chairman, Omnipay, Inc.
Question: Which of the following countries do you consider most
important for your company’s overall growth prospects over the
next 12 months? What growth plans are you planning to execute
in these countries?

Growth plans

39% Vietnam

33% Indonesia 46% 27% 16%

Expand current Enter into a Enter into a
Thailand business franchise distribution
33%
agreement agreement

Singapore 32%

28% Malaysia

11% 11% 7%
26% Myanmar Build a Form a joint Acquire a similar
manufacturing venture with a business
plant local player

Tough questions
1. What are the strengths of your local brand/business that will make it attractive in other countries?

2. How prepared is your team to take your business overseas?

3. How was regional expansion integrated in your strategic plan?

4. What are the key initiatives and programs that you are planning to implement to support your overseas plans?

5. What are your criteria for selecting your overseas partners?

32 Building partnerships in ASEAN: Reimagining the possible

The space between: Empowering
the rising businesses in Asia

Mario Berta
Founder and CEO, Flyspaces

Having launched in Manila in 2015, Mario Berta

expanded Flyspaces’ listings to include co-working
spaces, private offices, retail spaces, and meeting
rooms in Singapore, Jakarta, Macau, Cebu, Kuala relationships with the different stakeholders is also
Lumpur, and Hong Kong. critical for Mario. “Our working relationship with our
merchants is pivotal. It is the key to succeed in our
When asked about his business model, Mario says, business. However, the main driver of our success
“Our difference from the other co-working spaces is my team. It is my team here which manages our
here is that we are not a physical player. We are an relationships with our merchants across Southeast
aggregator of the existing players in the co-working Asia, mainly because we operate in English-speaking
space business. We’re a technological marketing countries. Filipinos have the best English in Asia.”
sales layer on top of all the existing operators.”
Asked why he established his regional office in the Having recently completed the largest pre-series A
Philippines, Mario replies, “It’s not just because of financing in the history of start-ups in the Philippines,
the typical reasons such as the Philippines is an Mario believes that they still have room to grow in
English-speaking country, it has a young population, the country and the rest of Asia. “We’re looking at
etc. The critical factor is the cost of entrepreneurship every product that we can sell to our customers. We
in the Philippines is lower: there generally roll out things first in the
are opportunities everywhere.” Philippines because this is where
“I decided to build a
our core team is, and it’s easier for
Believing that the opportunities regional company from us to execute here. For the other
in Southeast Asia are endless, the Philippines because Southeast Asian countries, we just
Mario started tapping the key the cost is way lower and follow how we do it here in the
cities in the region. Seeing that
opportunities here are Philippines.” As part of their plans,
the co-working space market Flyspaces will be adding more
has exploded in Southeast everywhere.”
categories to their listings while
Asia, Mario decided to grow investing in technology. “We have our
his collaboration with the physical players instead technology to allow our merchants to have a better
of competing against them. “We joined them to experience such as seamless clerical integrations.
democratize the search and the discovery of the We also plan to have additional features such as
flexible office space solutions. The product-market fit catering, accounting services, or visa services. That’s
came at…the advent of technology-enabled sharing really the direction where we are going with our
economy allowed real estate owners to monetize partners.”
spare space. ”
With Mario’s vision for his company as well as for
Flyspaces experienced rapid expansion in Asia in Asia, Flyspaces will continue empowering rising
just two years. According to Mario, “The top three businesses by providing a choice of transforming
things that helped me successfully grow outside office rent to variable cost, while allowing the
the Philippines are the product-market fit, strong entrepreneurs to grow faster and create sustainable
demand for office spaces, and my local team who is businesses.
capable of managing regional operations.” Managing

PwC MAP 2017 CEO Survey 33

 CEO agenda

The future of ASEAN: Growth is here Interestingly, the Philippines, Indonesia, and Vietnam
are also the countries that most of the CEOs would like to
Twenty years from now, the way we do business will be expand into or continue to invest in.
very different from what we know today. We will witness
the shift in global economic power from developed
countries towards emerging or growth economies These markets are far from being mature with a great
primarily in Asia. This will be driven by demographics amount of uncertainty. However, as volatile as the
and productivity aided by technology and innovation. business environment in these countries is, it would be
careless not to consider exploring the possibilities in
these growth markets. As shown in the study, business
Back in 1995, the E7 economies composed of China, leaders will be missing out on the bulk of the growth
India, Indonesia, Brazil, Russia, Mexico, and Turkey opportunities in the world if they choose not to engage
were half the size of G7 economies represented by the these markets between now and 2050.
US, United Kingdom, France, Germany, Japan, Canada,
and Italy. By 2050, it is projected that E7 could be more
than double the size of G7 with the former comprising Companies seeking to capture opportunities in these
about 50% of world GDP while G7’s share declines to growth economies will have to navigate through varying
just over 20%. degrees of challenges ranging from political instability,
unclear economic policies, through to lack of contract
enforcement laws. A good understanding of the diverse
ASEAN, on its part, is home to a number of the most culture, regulatory policies, and market nuances will be
dynamic economies in the fastest growing part of the critical as is taking on the right local partner.
world. Vietnam is projected to grow the fastest globally
at an average of around 5% while the Philippines will
be fifth at around 4.3%. In PwC’s The World in 2050 Whether the world is going forward with globalization or
report, five of the ten ASEAN countries will be in the backward with protectionism, establishing partnerships
top 25 economies based on gross domestic product in and alliances will remain an important growth strategy.
purchasing power parity terms.
PwC has identified seven factors that can lead to
successful alliances.

Vietnam and the 1. Put strategy first: Finding the right partner starts
Philippines could make with having a clear strategy. A solid strategy will help
assess whether growth will be realized organically,
the greatest moves up through M&A or other forms of alliances.
the rankings in 2050
2. Invest in joint upfront planning: Plans should be
up 12 discussed upfront. Spend time to jointly develop a
20th places compelling business case. Agree on priority areas as
32nd well as decision making rights. Those who fail to plan,
plan to fail.

3. Plan the end: While often a difficult topic, it will

Vietnam 19th help if dispute resolutions and exit mechanisms are
28th discussed and agreed early in the process. This will
be a more difficult conversation at a later stage when
up 9 relationships have already soured.
Philippines places

2016 2050

34 Building partnerships in ASEAN: Reimagining the possible

4. Create trust: Successful partnerships are based
Projected GDP rankings of selected ASEAN
on a mutually beneficial relationship, anchored on
countries at purchasing power parity (2050)
trust and transparency. A person who cannot be
trusted with small things cannot be trusted with
big things. Make good on commitments, focus on
growing the whole pie, not securing the biggest
slice. 4th 19th 20th

5. Start small: Build trust and confidence in the

partnership by agreeing on small, realistic, and
achievable goals. Celebrate and build on these Indonesia Philippines Vietnam
small successes.

6. Keep track: Clarify milestones and monitor

whether or not the partnership has delivered on its 24th 25th
intended objectives. Adjust as necessary.

7. Build enterprise-wide capability: Establish

a dedicated corporate alliance management Malaysia Thailand
function, and use this to codify and share leading
practices, drive collaboration, provide expertise,
coordinate relationships with key partners, and
ultimately create an enterprise-wide ‘alliance
culture’.

As in most things in life, there is no one size fits all

framework to a successful partnership. Yet companies
that go into partnership built on trust and gain-sharing,
combined with adequate preparation and well-
executed strategy, will improve their chances of success
and will be well on their way to growth.

Seven factors for a successful strategic alliance or partnership

Put strategy Invest in joint Plan the end Create trust

first upfront
planning

1 2 3 4

Build Keep track Start

enterprise-wide small
capability

7 6 5

PwC MAP 2017 CEO Survey 35

 Insights from the inside

We're encouraging banks

to scale up through

1 Without these shared 2 mergers and acquisitions.

They can also grow by 3
vision and belief of the having strategic investors.
private sector, as well They must, however, see
as trust in each other, the strategic value for this Look for a partner
the government would to be sustainable. that could add value
not be able to attain its to the business you
goals. Gov. Nestor A. Espenilla, Jr. have.

Hon. Ramon M. Lopez Manuel V. Pangilinan

Move at the same pace. Look for what your

Collaborate, and follow strength is, and bring it
growth together. to the other countries. Be
patient because things
Teresita Sy-Coson don’t happen very
quickly.
4 5 Sharing of experiences 6 Ramon R. del Rosario, Jr.
7 You need to be
persistent and
is very important. determined. Stick to
Share strategies. your vision, and adjust
Share products. when necessary.

Ernest L. Cu Dennis A. Uy

When you are a young

As I tell our people, you
start-up, not controlling
should be doing things
cash flow and burn rate is
differently five years from
the biggest single mistake.
now. Otherwise, you
Build on each other’s would be obsolete.
Mario Berta strengths, and give
complementary Rizalina G. Mantaring
support.
8 9 Nina D. Aguas
10

36 Building partnerships in ASEAN: Reimagining the possible

Profile of respondents

Industries For this study, we have a total of 120 respondents.

Total field interviews conducted for this study is 10, four of
whom answered the survey as well.

20% 14% 13% 12%

Financial Technology Professional Manufacturing
services and business
services
71% 29%
11% 9% 7% 6% Male Female
Real estate Healthcare, Food and Agriculture,
and pharma and beverage forestry and
construction life sciences fisheries

are publicly
6% 6% 6% 5% 18% listed

Business Energy and Education Infrastructure

process utilities
outsourcing
82% are privately
owned

4% 4% 4% 3%
Consumer Retail and Media and Transport and
and retail wholesale entertainment logistics
distribution

10% 21% 30% 39%

3% 2% 1% 1% Micro Small Medium Large
< 10 employees < 50 employees < 250 employees > 250 employees
Oil and gas Mining Hospitality Telecom
and leisure
Others industries include: automotive,
industrials, charities/ NGOs
Note: Some respondents have multiple industries.

PwC MAP 2017 CEO Survey 37

 Additional findings

Question: Select the top five initiatives/changes that you believe the Philippine government should prioritize during its term.

All
respondents

Good Adequate Peace and Internationally Adequate Poverty

governance physical order competitive digital reduction and
infrastructure and efficient infrastructure inclusive growth
tax system
Micro
(less than 10
employees)

Small
(less than 50
employees)

Medium
(less than 250
employees)

Large
(250 employees
& above)

Question: Is your proposed partnership/ Question: If “Yes”, what forms of partnerships will your company consider?
collaboration articulated in your strategic
plan?

75%
71%
Micro 58%
55% 55%
46% 43%
42% 42%
36% 38%
33% 32% 33% 32%
Small 46% 29% 27% 26%
14%

Acquisition/s of other Private equity Joint ventures Entry of a strategic Distribution agreement
Medium 56% businesses financing investor into the
existing company

Micro Small Medium Large

Large 55% * Survey respondents may select multiple answers

Yes

38 Building partnerships in ASEAN: Reimagining the possible

Industry analysis

The following charts show the percentage of CEOs from each industry who are ‘very likely’ and
‘likely’ to compete in industries and countries other than their own.

Question: Over the next three years, how likely will your Question: Over the next three years, how likely will your
organization compete in industries other than your own currently? organization compete in a country other than where you are
currently?

Mining 100% Mining 100%

Telecommunications 100% Technology 69%

Others 88% Infrastructure 67%

Consumer and Retail 80% Oil and gas 67%

Media & entertainment 75% Food and beverage 63%

Real estate and construction 75% Professional and business services 60%

Technology 69% Agriculture, forestry, and fisheries 57%

Infrastructure 67% Business Process Outsourcing 57%

Transport and logistics 67% Energy and utilities 57%

Oil and gas 67% Manufacturing 50%

Manufacturing 64% Media & entertainment 50%

Food and beverage 63% Real estate and construction 50%

Retail and wholesale distribution 60% Others 50%

Energy and utilities 57% Consumer and Retail 40%

Professional and business services 53% Financial services 39%

Financial services 43% Transport and logistics 33%

Agriculture, forestry, and fisheries 43% Healthcare, pharma, and life sciences 20%
Healthcare, pharma, and life sciences 40% Retail and wholesale distribution 20%
Education 29% Education 14%
Business Process Outsourcing 14% Hospitality and leisure
Hospitality and leisure Telecommunications

Very likely + likely Very likely + likely

PwC MAP 2017 CEO Survey 39

 Research methodology and contacts
The survey was conducted by PwC, in collaboration
with the Management Association of the Philippines
(M.A.P.). 114 CEOs answered the survey, and the
respondents of the survey were primarily members of
the M.A.P. The survey methodology used was a mix of
online and printed questionnaires.

We also conducted face-to-face in-depth interviews

with eight CEOs and two government officials to
support the findings of the survey. Their interviews are
featured in this report, and more extensive extracts
can be found on our website at www.pwc.com/ph/
ceosurvey.

The interviews and the survey responses were also

spread across a range of industries.

The results were tabulated and analysed by PwC.

Notes:

• Not all figures add up to 100%, due to rounding of

percentages and exclusion of “no comment” or “no
response”.

• The base for figures is 114 (all survey respondents)

unless otherwise stated.

For further information on the survey, please contact:

Mary Jade Roxas-Divinagracia, CFA®

Managing Partner
Deals and Corporate Finance
+63(2)459 2060
[email protected]

40 Building partnerships in ASEAN: Reimagining the possible

References
PwC. (2016). The Rise of the Global ASEAN: The Next Generation Leaders - A Philippine CEO Survey. PwC and
the Management Association of the Philippines

Regional accounts of the Philippines. (2016). Retrieved from www. psa.gov.ph

PwC. (2016). 20 years inside the mind of the CEO. What’s next: 20th CEO Survey. PwC

PwC. (2013). Unleashing the power of innovation. PwC

PwC. (2016). The ‘missing middle’: Bridging the strategy gap in family firms - Family Business Survey 2016

Market information of selected listed companies. (2016). Retrieved from www.edge.pse.com.ph

Asian Countries: Selected Economic Indicators. (2017). Retrieved from www.bsp.gov.ph

ASEAN accounts. (2017). Retrieved from www.imf.org

Selected country statistics. (2017). Retrieved from www.worldbank.org/

PwC. (2017). Great Expectations - The rise of the next-generation Cebu business leaders. PwC and Cebu
Chamber of Commerce and Industry

PwC. (2017). Finding the true north - Advancing corporate governance in the Philippines. PwC and Good
Governance Advocates & Practitioners of the Philippines

PwC. (2017). The Long View - How will the global economic order change by 2050?. PwC

PwC (2016). Joint Ventures and Strategic Alliances - Examining they keys to success. PwC

M&A data. (2017). Retrieved from www.mergermarket.com

SM Investments Corporation. (2017). Innovating for a better tomorrow - 2016 Annual report. SM Investments
Corporation

PHINMA Corporation. (2017). 2016 Annual Report. PHINMA Corporation

The Insular Life Assurance Company, Ltd. (2017). More reasons to live life to the fullest - 2016 Annual Report.
The Insular Life Assurance Company, Ltd.

Metro Pacific Investments Corp. (2017). 2016 Annual Report. Metro Pacific Investments Corporaion

Sun Life Financial Philippines. (2017). 2016 Annual Report. Sun Life Financial Philippines

World Bank. (April 2017). World Economic Outlook. World Bank

BusinessWorld. (August 2017). Philippine Infrastructure Open to Foreign Companies.

Retrieved from www.bworldonline.com

Phl Expected to Improve Ease of Doing Business. (2017). Retrieved from www.philstar.com

Ease of Doing Business Act. (2017). Retrieved from www.senate.gov.ph

Investment Climate Statements. (2017). Retrieved from www.state.gov

PwC MAP 2017 CEO Survey 41

 Acknowledgments

Editorial and writing Anna Marie Ordoñez Design and layout

Deals and Corporate Finance
Mary Jade Roxas-Divinagracia, Executive Director, PwC Philippines
CFA® Dennis Bautista
Deals and Corporate Finance Markets Senior Manager,
Partner, PwC Philippines Allan Cao PwC Philippines
Assurance and Markets Director,
PwC Philippines
Tina Arceo-Dumlao Dennis Omnes
Business Features Editor, Deals and Corporate Finance
Philippine Daily Inquirer Raoul Villegas Assistant Manager, PwC Philippines
Catherine Lipana
Deals and Corporate Finance
Armida Mabitad Christian Gonzales
Directors, PwC Philippines
Learning & Development Senior Markets Senior Associate,
Manager, PwC Philippines PwC Philippines
Karen Patricia Rogacion
Deals and Corporate Finance
Rocky Saldajeno Jerold Jay Flores
Senior Manager, PwC Philippines
Markets Senior Manager, Ryan Lucien Lim
PwC Philippines Deals and Corporate Finance
Dennis Bautista Associate, PwC Philippines
Markets Senior Manager,
Karen Patricia Rogacion PwC Philippines
Deals and Corporate Finance Contributors
Senior Manager, PwC Philippines
Joanna Philomena Suplico
Pocholo Domondon
Jofferson Jones Panos
Editorial board Assurance Partner, PwC Philippines
Deals and Corporate Finance
Senior Associates, PwC Philippines
Alexander Cabrera Karen Patricia Rogacion
Chairman and Senior Partner, Deals and Corporate Finance
Christian Gonzales
PwC Philippines Senior Manager, PwC Philippines
Markets Senior Associate,
PwC Philippines
Marife Zamora Ma. Melissa Anne Diaz
President, Management Association Deals and Corporate Finance
Eira Selene Bernabe
of the Philippines Assistant Manager, PwC Philippines
Deals and Corporate Finance
Associate, PwC Philippines
Project management and face-to- Joanna Philomena Suplico
face interviews Jofferson Jones Panos
Jemuel Jed Jorge
Deals and Corporate Finance
Marc Thaddeus Bodo
Senior Associates, PwC Philippines
Arnold Salvador Markets Associates, PwC Philippines
Executive Director, Management
Association of the Philippines Eira Selene Bernabe
Isabel Lapus
Deals and Corporate Finance
Deals and Corporate Finance
Associate, PwC Philippines
Ruth Blasco Trainee, PwC Philippines
Assurance Partner, PwC Philippines
Margarita Anna Valero-Quiocho

42 Building partnerships in ASEAN: Reimagining the possible

Research and data analysis Lilibeth Mercado-Villaruel
Deals and Corporate Finance
Executive Assistant, PwC Philippines
Apple Christianne Mutia
Deals and Corporate Finance
Senior Associate, PwC Philippines Ma. Estrella Bibat
Tax Executive Assistant, PwC
Philippines
Weddy Diamada
Deals and Corporate Finance
Associate, PwC Philippines Blessel Marie Tuazon
Deals and Corporate Finance
Department Secretary, PwC
Ellen Chang
Philippines
Deals and Corporate Finance
Trainee, PwC Philippines

Project Support

Jimmy Disquetado
Business Services Philippines
Director, PwC Philippines

Jay Armand Ogayon

Business Services Philippines
Assistant Manager, PwC Philippines

Tatiana Marie Arcenas

Business Services Philippines Senior
Associate, PwC Philippines

Carl Angelo Cabusas

Charles Odulio
Justine Gamboa
Macris Jeresano
Noel Carlo Marcos
Business Services Philippines
Associates, PwC Philippines

Ardiane Vianca Pascual

Santiago Fernandez
Michelle May Hong
Deals and Corporate Finance
Associates, PwC Philippines
Management
Association of the
Philippines
With promoting management excellence for nation-building as
its main objective, the M.A.P. is a 67-year-old management
organization whose 1,000 members represent a cross-section of
CEOs, COOs, and other top management practitioners from the
largest local and multinational companies operating in the
Philippines. M.A.P. also counts some top management educators
and government officials as its members.

Please view the M.A.P. video via www.youtube.com/

TheMAPph or visit www.map.org.ph/ for more information on
M.A.P.

About PwC
Isla Lipana & Co. is PwC in the Philippines

We have provided professional services in the Philippines for 95

years. We stick to the highest quality standards in delivering
audit and assurance, tax and advisory services within and
outside the country.

Our diverse team of experienced professionals includes

accountants, tax advisers, lawyers, systems analysts,
economists, human resources professionals, project
development managers, industrial engineers, and investment
advisors.

Our people are active in various professional, public and private

sector organizations and participate in public forums involving
taxation, investment incentives and advocacy issues. We make
sure we keep up with the latest developments so that we can
give clients informed advice on different issues that might affect
their businesses.
www.pwc.com/ph

© 2017 Isla Lipana & Co. All rights reserved.

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