Zobel-controlled Ayala Corporation, the country’s oldest conglomerate, is raising its capital expenditure budget by 14 percent to P284 billion this year from P249 billion in 2023 as it is confident of surpassing last year’s record financial performance.
In a press briefing after the firm’s annual stockholders’ meeting, Ayala President and CEO Cezar P. Consing said, “2023 was a reasonably good year for us in aggregate. That's our new high watermark in terms of net income. It exceeded pre-COVID. It was up on the year before.”
“This year, that momentum, at least what we're seeing right now, is pretty good. And we're seeing it more evenly distributed across our many businesses… This year, I think you're going to see more of our businesses begin to show real positive events.”
Ayala Chief Finance Officer Alberto M. de Larrazabal said the bulk of this year’s capex will be spent for the expansion of Ayala Land Inc. and ACEN Corporation.
ALI raised its capex budget by 14 percent to P100 billion this year while ACEN has increased its allotment by about 40 percent to P72 billion.
On the other hand, other subsidiaries are reducing their capex, particularly Globe Telecom which has budgeted P55 billion, a five-year low as it has already scaled up its facilities in recent years.
For the parent company, including funding for the group’s portfolio investments, Ayala has allotted capital expenditures of P13 billion for 2023.
Ayala Corporation is bullish on the potential of ACMobility (formerly AC Motors) to support the inevitable EV transition in the country.
ACMobility CEO Jaime Alfonso Zobel de Ayala reiterated the company's goal of pioneering the first EV ecosystem, a key step to supporting the country’s EV transition.
"In the short term, our focus is to set up the local EV ecosystem by bringing in a compelling line-up of four-wheel EVs as well as by widening the charging infrastructure, store footprint, and our internal capabilities," he said.
Zobel added that, "We recognize that the shift towards clean technology will take time to materialize. Thus, our focus today is to enable that transition."
Last year, ACMobility became the official national distributor of BYD, the largest manufacturer of plug-in hybrid and pure electric vehicles in the world. BYD currently has three dealers across the country, and ACMobility intends to increase this to up to 20 dealers this year.
Aside from expanding its dealer network, ACMobility is also ensuring competitive pricing for its EV line-up.
"Our local line-up is the widest in the market with prices, ranging from under P1.4 million to over P3.0 million. As cost is a key consideration for the broader market, each model is also priced competitively against their ICE and hybrid alternatives," Zobel said.
ACMobility, together with Ayala Land and Integrated Micro-electronics, Inc., launched a network of 33 EV charging stations in 16 locations across the country last year. Ayala group aims to add 100 more stations in at least 40 locations within the year.
"We are actively engaging potential institutional partners for the rollout of charging stations. We believe that more players and more investments are necessary for the public to become comfortable with the availability of charging, and to reach the government’s goal of over 7,000 charging stations by 2030," Zobel said.
The company also entered into a strategic partnership with Bosch to incorporate integrated vehicle technology in its aftersales operations. Bosch Car Service will offer mechanical repairs to intricate electronics, engine systems, safety features, comfort upgrades, transmission expertise, and a host of other services and diagnostics.
"We believe by 2030, EVs will comprise up to 20 percent of new car sales. We intend to capture a significant share of that figure," Zobel said.