shifting paradigms - ayala foundation

Ayala Foundation 2009 Annual Report

A

teacher sits at her

desk planning her next lesson.

Her face brightens, as she thinks of

a fresh approach to education—one that

integrates technology, art and culture, and social

awareness.

Over the years, Ayala Foundation Inc. (AFI) has contributed

significantly to transforming the face of education in the

country. AFI has pioneered successful projects in improving

the quality of public education, bringing technological tools to

poor students, opening world-class facilities for art and culture,

building awareness on the need to protect the environment, and

encouraging social entrepreneurship. These projects have truly

helped shift paradigms in education in the country. As it enters

its 49th year, AFI reaffirms its commitment to take the spirit

of innovation to people and communities it serves.This

annual report presents the many ground-breaking

programs that AFI has introduced and sustained

over the years. Even the unique layout design

of the report reflects AFI’s creativity and

inventiveness.

Shifting Paradigms

2 The Chairman’s Message

4 The President’s Message

6 At a Glance

16 Operational Highlights

38 Q& A with the President

40 The Year Ahead

42 2009 Board of Trustees

44 Ayala Foundation Management and Staff 2009

45 Report of Independent Auditors

80 Acknowledgments

87 Directory

88 Mission and Vision

Contents

beginbegin

forward

2 3

Dear stakeholders,

We at Ayala Foundation are aware of the enormity of our mission: to eradicate the

myriad forms that poverty takes. Over the last 48 years, we have worked hard to

design and implement programs in areas where we could maximize our reach and

create enormous impact. This is particularly true for our initiatives in the fields

of education, entrepreneurship, the environment, and arts and culture.

We are also aware that addressing the problem of poverty requires a lot of

flexibility. The needs of the people we serve constantly evolve, as do the tools

required for us to carry out our projects.

In 2009 Ayala Foundation, its partners, and supporters demonstrated

how best to address emerging needs without losing track of perennial

problems. The onslaught of typhoons Ondoy and Pepeng brought to our

attention the need to provide immediate relief to those affected by the

typhoons, and at the same time come up with long-term, preventive

solutions. The Ayala Young Leaders Congress, for instance, mobilized its

network of alumni from all over the country to provide relief goods, as

well as technical and logistical support for people living in devastated

areas. The typhoons strengthened the spirit of volunteerism within

the foundation, as employees, partners, and other stakeholders

participated in nationwide relief operations.

The foundation also joined hands with different organizations

to develop a program addressing the destructive effects

of typhoons and other calamities. A multi-stakeholder

initiative, Project Noah’s Ark does not only seek to provide

immediate disaster relief, but also to come up with suitable

evacuation centers, establish guidelines for community-

based disaster response, provide training on disaster

preparedness, and set up an early warning system for

typhoons and other calamities. This way, we can prevent

death, destruction, and unneeded suffering, and our

fellow Filipinos will not feel helpless in the face of a

typhoon or any other calamity.

The spirit of volunteerism that informed our disaster-

relief and disaster-preparedness efforts also helped

make our continuing advocacies flourish. Our

educational, entrepreneurial, environmental, and

community development initiatives continued

to reach out to a greater number of Filipinos

around the country, with more and more partners

from different parts of the world joining us

in our various campaigns, either as donors,

supporters, or volunteers.

Message

Jaime Zobel de Ayala

In the face of all the difficulties that befell the country, our commitment to

enriching our artistic and cultural heritage also strengthened. The Ayala

Museum and the Filipinas Heritage Library, in particular, held on to their

mandate of celebrating the greatness of our country, not only for the

benefit of foreigners, but more importantly for our fellow Filipinos.

We at Ayala Foundation take pride in how much we and our

partners—past, present, and future—have achieved in pursuing

our goal of uplifting the quality of life of Filipinos. We are

also immensely grateful for the unflagging trust, faith, and

enthusiasm of our supporters, donors, managers, and

staff. Our continuing partnership brings us ever closer to

reaching our goals.

lead

The Chairman’s

4 5

Message

Dear stakeholders,

The word “tragedy” was

used repeatedly to

describe a number

of harrowing,

u n p r e c e d e n t e d

events that

occurred in our

country in 2009.

Still reeling from

the damage

wrought by the

economic crisis

that began in

2008, the country

was hit by several

natural calamities. We

wept over the death of

President Corazon Aquino,

we braved the destruction

brought by typhoons Ondoy and

Pepeng, and we stood in horror and anger

in the aftermath of the Maguindanao

massacre.

But as much as tragic events defined

the past year, these same events

provided Filipinos throughout the world

the opportunity to show our unity and

solidarity, as well as our dedication to

rebuilding our country and recovering

what we lost. Committed as we

are to eradicating the many

forms that poverty takes,

we at Ayala Foundation

also know that this goal

cannot be achieved

single-handedly. We

are honored to report

to you just how much

the spirit of partnership

and volunteerism

contributed significantly

to the success of our

undertakings.

In the wake of typhoons Ondoy

and Pepeng, Ayala Foundation deeply

immersed itself in relief operations,

in partnership with other institutions

as well as within the Ayala group. AFI

management and employees generously

shared their time, talent, and resources

in various activities, including the packing

and distribution of relief goods, as well as

the holding of soup kitchens. The Ayala

Young Leaders Alliance, for instance,

mobilized its nationwide network of 798

alumni to participate in rescue and relief

operations, and reached as many as 1,250

families in the hardest-hit areas, including

Rizal, Metro Manila, Bulacan, Pampanga,

and Benguet.

AFI also tapped its network of global

partners and supporters for numerous

fund-raising activities that were not

only meant to finance short-term relief

activities, but also to offer long-term,

preventive solutions. Ayala Foundation

USA actively informed Filipino-Americans

about the plight of Filipinos affected

by the typhoon, and organized special

events to raise funds for rescue and

rehabilitation activities, as well as

other existing AFI projects. AF USA held

Dining with the Chefs, a benefit dinner

that featured the cuisine of the most

promising Filipino-American culinary

talents, as well as a benefit concert, held

in New York, headlined by international

star Lea Salonga. AF USA raised over

$314,000 for typhoon victims and a

total of $1.42 million to finance its

numerous projects.

AFI raised over P16 million for

the benefit of families severely

affected by the typhoons. A

significant percentage of the funds raised

by AFI was reserved for collaborative

projects on disaster preparedness.

As much as Ayala Foundation took to

heart the importance of volunteerism in

the face of calamities, it also embarked

on and saw into fruition several projects

geared toward uplifting the lives of

Filipinos. As convener of Ayala Social

Initiatives, AFI took the lead in the

production of Ayala Corporation’s—as

well as the country’s—first conglomerate-

wide sustainability report. Launched in

September, the report, entitled Pioneering

for a Sustainable Future, affirmed the

Ayala group’s commitment to the triple-

bottom-line approach to sustainable

development. AFI was also one of the

key organizers of the Ayala group’s first

Sustainability Summit, which aimed to

raise awareness on the need to harmonize

one’s economic, social, and environmental

commitments.

rea

ch

In line with the Ayala group’s trailblazing efforts to

incorporate sustainability in its businesses, AFI strengthened

its environmental initiatives by expanding the Solid-Waste

Management program into the Ayala Green Resources for

Environmental Education and Networking (Ayala GREEN).

Through this program such issues as clean water, clean air,

and energy efficiency have also become priority areas in AFI’s

environmental initiatives. As one of its early projects Ayala

GREEN, in cooperation with 56 office and residential buildings

in the Makati Central Business District, conducted a study

on energy efficiency among the participating buildings. The

results of the study serve as a guide for future energy-saving

projects.

Even with the establishment of Ayala GREEN, AFI’s Solid-

Waste Management (SWM) program continued to generate

significant response from numerous individuals and

organizations. One may immediately notice that the amount

of recyclables AFI and its partners collect during these fairs

has been slowly decreasing in the past few years—in 2007

about 1,800 tons of recyclables, worth nearly P10 million, was

recovered; in 2009 1,300 tons, worth nearly P7 million,

was collected. The decline, however, is actually

a good sign, because it represents a growing

awareness of the importance of proper solid-

waste management, as well as the recognition

of the economic and environmental value of

trash. Because of our pioneering efforts, AFI’s

SWM program has become a model for many other

institutions in setting up their own recyclables fairs. In

addition, Filipinos are fast learning the value of segregating

their trash, instead of sending it indiscriminately to sanitary

landfills.

As a trailblazing institution in the area of education and

youth development, AFI marked a number of milestones

in its effort to make education and educational tools more

easily accessible to poor families. The Center of Excellence in

Public Elementary Education (CENTEX) celebrated 10 years

of providing quality public education for underprivileged

but gifted students. We are pleased that 53 from our first

batch of 75 CENTEX scholars, who had enrolled in our Tondo

campus in 1999, entered college this year. We are looking

forward to what our brilliant CENTEX graduates are bound to

achieve in the coming years.

AFI, as well as the other organizations and individuals that

comprise the Gearing up for Internet Literacy and Access for

Students (GILAS) consortium, continued its quest to connect

all of the country’s public high schools to the Internet. An

additional 415 schools are now wired to the World Wide

Web, bringing the total number of connected schools to

2,517. GILAS has also started exploring the benefits of using

satellite technology to address the Internet-connectivity

needs of schools in remote areas, particularly those where

the necessary infrastructure is unavailable.

Meanwhile, the multi-sectoral initiative Text2Teach was

introduced to 97 public elementary schools. As many as 302

schools and over a million students are now benefiting from

Text2Teach’s educational materials, delivered through 3G

technology. The project also continued getting the support

of local government agencies, as they vowed to provide the

counterpart funding for the success of Text2Teach in their

towns and provinces.

Just as the Ayala Young Leaders Congress organized the

training of 73 very promising student leaders from all over

the country, the Education and Livelihood Alliance (ELSA) also

involved itself in the training of individuals who could bring

positive change to Region XII and the Autonomous Region

of Muslim Mindanao. ELSA provided training in leadership,

fund-raising, and community engagement to 160 young

leaders and 144 officers and members of parent–teacher

associations.

The role of technology in developing an entrepreneurial

spirit among Filipinos was championed by the Ayala

Technology Business Incubator (Ayala TBI). In Ayala

TBI’s facility located at the University of the

Philippines–Ayala Land TechnoHub, a total of 13

startup companies were signed up, thus giving

them the chance to showcase and test their

innovative products and business models.

As we enter our 49th year, we at Ayala Foundation

are implementing organizational changes to help

us become more responsive to the needs of the people

we serve. We hope to achieve greater synergy among our

projects and activities. Starting in 2010, we will intensify our

commitment in five major areas: education; entrepreneurship;

environment and sustainability; history, art, and culture; and

community development.

We take pride and derive satisfaction as we look back on

the previous year and look forward to the year ahead.

Doing so proves, again and again, that Ayala Foundation,

through the generous and unfailing support of its partners

and benefactors, has provided the country with tools and

resources that can lead it to progress. We at AFI cannot take

full credit for the success of these undertakings, because

you, our stakeholders, have also put in enormous amounts

of resources to bring our country ever closer to sustained and

sustainable progress. Once again thank you very much, and

we hope to work with you again in 2010.

Victoria P. Garchitorena

The President’si

6 7

The Center for Social

Development (CSD) contributes

to the improvement of the quality of life of

Filipinos by developing innovative and sustainable

social technologies that respond to pressing needs.

CSD also focuses on harnessing the potential of corporate

social responsibility within the Ayala group, and works together

with the public and private sectors to sustain its programs. CSD’s

core programs are in such areas as education and youth leadership

development, environment, and entrepreneurship.

Reach and ImpactCSD sustained its programs and projects by strengthening

partnerships with its stakeholders. Also, it began exploring

new communication and resource mobilization

strategies to elicit greater response, from existing

and potential partners, for its programs.

• Connected an additional 415

public high schools to the Internet. By

the end of 2009, a total of 2,517 public high schools have access to the Internet,

while 88 more schools are Internet-ready

and awaiting connection

• Raised a total of P47,244,646

in cash donations and P6,328,510 worth of in-kind donations

from the public sector, private sector, and overseas donors

• Used satellite

technology in bringing the Internet to public high schools

in remote areas

The GILAS

Social Consortium

• Raised cash and in-kind donations

amounting to $1.42 million from Filipino-Americans

based in the United States

• Organized fund-raising events in

New York and California for the benefit of Philippine development initiatives

• Began the process of transforming AF USA into a more Fil-

Am-driven organization, with the name and brand to be

formally launched in 2010

• Provided training for 73 of

the country’s most promising student leaders

at the 11th Ayala Young Leaders Congress (AYLC) in February

• Piloted an AYLC-inspired training

program in five schools in Mindanao, Visayas, Luzon,

and Metro Manila that reached out to 300

young leaders

Ayala

Young Leaders

Congress

• Conducted voter’s registration

and education campaigns in over 400

schools and institutions, reaching an estimated

50,000 individuals

• Carried out disaster-response operations in the

aftermath of typhoons Ondoy and Pepeng. These

relief operations, spearheaded by AYLC alumni, benefited 1,250

families in Rizal, Bulacan, Pampanga, Baguio, and

Benguet

• Expanded the Solid-Waste Management program, which

became Ayala GREEN. Aside from solid-waste management, Ayala GREEN advocates

energy efficiency, water-use management, and clean air, particularly in Ayala development

projects and the Makati Commercial Business District (MCBD)

• Conducted a study on the energy efficiency of 52 office

buildings in the MCBD

• Organized an Energy Efficiency Forum and Knowledge

Sharing for 60 building representatives

• Co-organized the Third Annual Tigil Buga campaign along

Ayala Avenue to encourage motorists to shut off their engines for one minute to

reduce carbon dioxide emissions

• Conducted free motor vehicle smoke emissions testing

in six car parks managed by Ayala Land’s Ayala Property Management Corporation (APMC), in partnership with the Makati City Department of

Environmental Services and Anti-Smoke Belching Unit, Metro Manila Anti-Smoke Belching Association, and the Environment Management Bureau of

the Department of Environment and Natural Resources

• Participated in drafting the Science and

Technology Research and Development road map, a project initiated by the Department of Science and

Technology to address water pollution

• Facilitated the recovery of 1,300 tons of

assorted recyclables, with an estimated worth of almost P7 million,

from 184 participating buildings in the Makati Central Business

District

• Continued to monitor the weekly Recyclables Fairs

in five Ayala malls, two universities, and subdivisions. These Recyclables Fairs generated 100 tons of recyclables, as well as 5,000 pieces of assorted junk (such as

lead-acid batteries and printer toner cartridges), worth close to

P700,000

Green

Resources for

Environmental Education and

Networking (Ayala GREEN)

At a glance

CenterforSocial D

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AF USA

• Supported programs of partners in the

Philippines

8 9

Strategic Initiatives• Continue to conduct training for youth leaders, parent–teacher

associations, and school administrators in Mindanao,

through ELSA

• Make Text2Teach accessible to a greater number of

public elementary schools, and develop new educational

materials

• Connect an additional 360 schools to the Internet through

GILAS

• Develop and implement an expanded version of AYLC

• Expand the coverage of AFI environmental initiatives to

include energy efficiency, clean air, and responsible water

use; these activities will will now be under the environment

and sustainability division

• Expand its entrepreneurship-related projects, with special

focus on projects that provide innovative solutions to

critical social projects; these activities will now be under

a new entrepreneurship division

• Signed up 13 technology startup companies at the

University of the Philippines–Ayala Land TechnoHub.

Three of these are currently assessing their products and

business models

• Held the first Green TechBootCamp,

which focused on clean technologies, renewable energy, and sustainable solutions that address

pressing environmental problems

• Drew as many as 200 participants in the continuing Innovation Forums in Makati

Ayala Technology

Business Incubator

(AyalaTBI)

• Hosted eight Kape+Teknolohiya sessions

at the UP–Ayala Land TechnoHub, attracting as many as 400 participants

• Launched Mobile Xtreme!, a nationwide

competition challenging developers to come up with innovative mobile

applications

Other

Community

Development Projects

• Conducted daily feeding for 180

Mangyan children in the Talipanan Elementary School

in Oriental Mindoro

• Established a program for sustainable

development in Bohol through the preservation of the natural

environment and cultural heritage

• Made preparations for the

turnover of the management of the Buklod Bahayan Daycare Center to teachers, parents, and

homeowner’s association

Education and

Livelihoods Skills Alliance

(ELSA)

• Provided training for 200 young Muslims, Christians,

and indigenous peoples for the Cultures Across Mindanao Program of the United

States Agency for International Development (USAID), Education Quality and Access for Learning and Livelihood Skills (EQuALLS),

and the United States Embassy

• Raised close to P130,000 in donations

to support youth-initiated projects in Mindanao

• Brought the program to 97 public elementary schools in Northern

Luzon, benefiting some 18,000 students. Since its inception in 2003, Text2Teach has reached 302 schools,

with over 1 million students continuing to benefit from the program

• Facilitated the training of 523 teachers

on the use of Text2Teach teaching tools

• Raised cash donations amounting to over P16 million and

in-kind donations worth nearly P700,000 from the Text2Teach alliance and the public sector.

Text2Teach

• Published the first Ayala Corporation Sustainability Report, covering the economic, social, and environmental performance of the

Ayala group of companies

• Helped organize the first Ayala group Sustainability Summit

• Worked with the Ayala Human Resource Council in

gathering over 205,000 storybooks for distribution to public

elementary schools with low reading scores

Ayala Social

Initiatives

At a glance

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10 11

At a g

lance

Center of Excellence in Public ElementaryEducation

The Center of Excellence in

Public Elementary Education (CENTEX)

aims to provide intelligent, economically

disadvantaged children with an education equal to

that of the best private schools in the land. The program

is geared toward the empowerment of underprivileged but very

intelligent students, and offers a curriculum that seeks to enrich not

only their knowledge but also their leadership skills.

Reach and ImpactCENTEX operates two schools—one in Tondo, Manila, and another

in Bauan, Batangas—and has a total combined enrollment

of 951, as of school year 2009–2010. Since 2005, CENTEX has

facilitated the provision of high school scholarships to 242

alumni, in partner institutions like St. Bridget School

in Batangas, and the Santa Isabel College and

University of Santo Tomas High School in

Manila.

• Celebrated its

10th anniversary in a

special program held at

Onstage Greenbelt in

March

• Had a total

enrollment of 951

elementary school students

(511 in Manila and 440 in

Batangas) for school

year 2009–2010

• Supported

33 alumni, now

college freshmen, in securing

scholarships from private

individuals, schools, or the

government

• Received a

grant from the United

States Embassy and the US

Department of State to implement the

English Access Microscholarship Program

(Access), a two-year program where

high school students study

English in after-school classes

and through intensive

summer activities

• Facilitated the

participation of 30 third-

year high school students—15

alumni from CENTEX Manila, and

15 from Batangas—in Access, where,

aside from after-school language

classes, they joined an outreach

program for the benefit of

war veterans

• Held the

annual teacher-training

program, attended by teachers

from CENTEX Manila and

Batangas, the Food for Hungry

Minds School, and Buklod

Bahayan Daycare

Center

• Launched

the Feed the Future

program, a fund-raising project

that aimed to support CENTEX

Manila’s feeding program for

students from kindergarten

to third grade

• Received a

generous donation

from Hewlett-Packard,

which renovated CENTEX Manila’s

computer room, and provided new

personal computers, laptops,

a TouchSmart PC, digital

cameras, and printers

• Introduced

My Backyard, an

environmental-education

project in collaboration

with Hewlett-Packard

• Implemented

Linis Bakuran, the

community-outreach

component of My Backyard,

in three barangays in

Tondo, Manila

• Held free

parenting seminars

that promote “discipline with

dignity,” reaching as many as

950 parents of students

from both CENTEX-

operated schools

• Synergize

activities

with AFI’s other

education-related

initiatives

• Intensify fund-raising

activities so it can provide more

high school and college scholarships

for CENTEX alumni

• Continue its Feed the Future campaign to

provide proper nutrition for CENTEX students

• Develop and implement skills training programs for

parents

Strategic Initiatives

12 13

At a glance

AYALAMUSEUM

A leading

presence in the

promotion of Philippine

art and culture and one of the

country’s principal private cultural

institutions, Ayala Museum spearheads major

artistic and cultural events for local and international

audiences. The museum promotes awareness and fosters

understanding of the rich heritage of the Filipino people through

its collection, exhibitions, and public programs.

Reach and ImpactAyala Museum continued to establish links and partnerships

with local and international organizations to widen its

audience and present exhibitions and programs that

are fresh and relevant. Over 70,000 people visited

the museum for its exhibitions, workshops,

lectures, as well as to participate in its

educational programs and activities.

• Launched

a new audio

guide system for the

Diorama Experience,

made possible through

the financial support of the

Catawamteak Fund

• Established

the Ceramics

Study Center, which

houses a selection from

the Roberto T. Villanueva

Collection, along with

reference materials on loan

from John Forbes

• Partnered with

Ayala Land Inc. on a number

of projects including two separate

exhibitions of the latest works

of Arturo Luz and Lor Calma at

the museum lobby gallery and

at the Greenbelt Artpark; the

annual Greenbelt Summer

Art Workshops, held

at Greenbelt 5; and

Greenology, a junk-art

competition held

in Ayala malls

• Held the following

shows: Monumental: Recent Work

by Arturo Luz; Pioneers of Philippine Art

(rotating exhibition); Rediscovering Romeo

Tabuena: The Later Work; Fernando Zobel

in the 1950s: The Formative Years; Romulo

Olazo: A Forty-Year Retrospective; Ring

of Fire: The First Southeast Asian

Ceramics Festival; the 42nd Shell

National Students Competition;

Architect Lor Calma: Paintings

and Sculptures; and

Pintores Mexicanos de

San Luis Potosí

• Featured

20 artists and

two groups at

ArtistSpace

• Staged

art workshops

for Accenture

employees for the

second time

• Partnered

with the

Japan Foundation

to present Rakugo:

Japanese Sit-Down Comedy,

a cultural show

• Signed a

second five-year

memorandum of

understanding with

the National

Heritage Board of

Singapore

• Received grants

from the Bank of the

Philippine Islands and Shell

Philippines to publish the

exhibition catalogue for

Fernando Zobel in the

1950s: The Formative

Years

• Participated

in Zero In, the annual

themed event of a

consortium of five private

museums in the country,

by presenting Ring

of Fire: The First

Southeast Asian

Ceramics

Festival

• Held a lecture

on precolonial Philippine

history led by Ambeth

Ocampo, chair of the

National Historical

Institute

• Hosted

a lecture

led by John Guy,

curator of South and

Southeast Asian Art at the

Metropolitan Museum of

Art, New York

• Launched

I AM Art, a series

of Saturday arts and

crafts workshops that

were free with museum

admission

• Synergize its activities with the Filipinas Heritage

Library, in keeping with the establishment of the new

division on history, art, and culture

• Develop and present exhibitions and educational programs

that contribute to the understanding of local art and culture while

fostering a greater sense of pride in Philippine art, creativity, and

artistry

• Continue to establish and pursue partnerships with local and

international organizations and institutions to strengthen

museum programs and diversify its audience

• Increase the number of visitors to the

museum through new and exciting public

programs


14 15

At a glance

• Launched the official

website of Himig Collection

(www.himig.com.ph),

thus making some of the

country’s most important

musical treasures

accessible to Filipinos and

foreigners

As

one of the

leading all-Filipiniana

libraries in the country, the

Filipinas Heritage Library (FHL)

promotes education and literacy in

Philippine history, art, and culture by

actively building its collection of books,

periodicals, and other traditional media,

while actively exploring the possibilities

offered by information and communication

technology. FHL is also actively involved

in helping Filipinos appreciate their history,

literature, and cultural heritage in the form

of workshops, lectures, exhibits, and special

events.

Reach and ImpactThe use of information technology has

helped FHL reach out to a wider audience

than a traditional library. By making part

of its collection—particularly its photo

and music collection, as well as some of

its publications—available online, FHL

has become accessible to a greater

number of people all over the

world. Lectures, workshops, and

publications have also helped

strengthen FHL’s initiatives

for continuing education.

• Developed the website

for BEZO Initiatives (www.

bezo.org.ph), which details

the cultural, socioeconomic,

and environmental activities

being implemented in Bohol

by stakeholders coming from

AFI, the community-based

BEZO Recreational and Aquatic

Activities in Bohol (BRAABO),

and the local government of

Baclayon, Bohol

• Organized two

sessions of Art

Connection, a lecture

series that aims to help

teachers enhance art

education in the country,

reaching out to 140

teachers from seven

schools

• Developed a

workshop series

on art, culture, and

other activities for

the Department of

Trade and Industry

• Mounted

regular

photography

and writing

workshops, which

attracted over

1,000 participants

• Partnered with

the National Book

Development Board in

organizing a series of

lectures on Philippine

language and

literature during Book

Development Month

• Helped stage a

performance reading

of Jose Rizal’s El

Filibusterismo and

Francisco Balagtas’s

Florante at Laura, as

well as storytelling

sessions

• Entered into a

partnership with

Chevron Philippines

for MyLibrary, which

seeks to establish

or rehabilitate

community libraries in

the country

• Published

three books

to promote

reading among

children and

teenagers

• Organize a series of cultural events under

Bravo!, a festival celebrating the achievements of

Filipinos in music, film, visual art, dance, theater,

and fashion

• Help communities build or rehabilitate their

libraries through the MyLibrary program

with Chevron and Ayala Land Inc.

• Continue to develop

educational programs

in art, history, and culture for

students, teachers, librarians, and other

professionals

• Publish additional titles for the series of

children’s book on Philippine art and myths

• Prepare for the celebration of AFI’s 50th

anniversary in 2011


FilipinasHeritageLibrary

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16 17

HIGHLIGHTS

OPERATIONAL

The

Center

for Social

Development

(CSD)

implemented

programs and

projects related to

education, the environment,

youth development, technology

entrepreneurship, and sustainability.

Ayala Social Initiatives

As convener of the Ayala Corporate Social Responsibility

(CSR) Council, Ayala Foundation Inc. (AFI) took on secretariat duties

in implementing activities under the Ayala Social Initiatives (ASI) program.

AFI oversaw the production of Pioneering for a Sustainable Future, the 2008

Ayala Sustainability Report, which followed the standards set by the Global

Reporting Initiatives (GRI). The report was released in October.

ASI supported Ayala Corporation in organizing the Ayala group’s first Sustainability Summit,

which served as platform for the promotion of the group’s sustainability efforts among its

managers and employees. Carrying the theme, Amplifying the Social and Environmental

Impact of Our Businesses in the Pursuit of Our Economic Objectives,

the one-day summit featured lectures and symposiums that were

designed to help participants explore and develop innovative,

sustainable solutions to business challenges that address

social problems. Over 300 Ayala group executives and managers

attended the summit.

In celebration of Ayala Corporation’s 175th anniversary, AFI provided

support and coordinated activities related to Project 175KB, a groupwide

effort that enjoined Ayala employees to gather 175,000 story books, which

would be distributed to the libraries of under-resourced public elementary

schools. The project exceeded its target by collecting over 205,000 books,

which were distributed to 329 schools in 16 regions.

Green Resources for Environmental Education

and Networking (Ayala GREEN)

AFI’s environmental initiatives expanded from its Solid-Waste Management (SWM)

program to the broader Green Resources for Environmental Education and Networking

(Ayala GREEN). This environment program takes on urban environmental concerns—such as

energy efficiency, water use management, and clean air—in Ayala development projects, particularly

the Makati Central Business District (MCBD).

AFI, together with other institutions with existing energy efficiency programs, advocated the use of energy-efficient

lights and air-cooling systems in the MCBD. It also conducted a study on the energy efficiency performance of 52

MCBD office buildings, the initial results of which showed how energy efficiency translates to financial savings and can

serve as a wise investment. After completing the study, AFI organized an Energy Efficiency Forum and Knowledge Sharing

for 60 MCBD building representatives.

For its advocacy on clean air, AFI was one of the organizers of the Third Annual Tigil Buga campaign along Ayala Avenue. Tigil Buga

encouraged motorists to shut off their engines for one minute to reduce carbon dioxide emissions. In partnership with the Makati

City Department of Environmental Services and Anti-Smoke Belching Unit, Metro Manila Anti-Smoke Belching Association, and the

Environmental Management Bureau (DENR-EMB) of the Department of Environment and Natural Resources, AFI offered free motor

vehicle smoke emissions testing in six car parks managed by Ayala Land’s Ayala Property Management Corporation (APMC).

In keeping with its commitment to promoting the wise use of water, AFI participated in the drafting of the Science and Technology

Research and Development Road Map organized by the Department of Science and Technology. The R&D Road Map seeks to address

the continuing problem of water pollution in the country. AFI also supported the public information campaign of

the DENR-EMB during World Water Day and the Philippine Water Week.

AFI continued to draw supporters for its SWM program in the MCBD and other Ayala

properties outside Makati. A total of 1,300 tons of assorted recyclables, worth close to

P7 million, was recovered from 184 MCBD buildings. The amount of recyclables recovered

this year were lower than in previous years because of the decline in the global

market for these resources. Aside from establishing a community-based SWM

program in Barangay Ususan, Taguig City, AFI also monitored weekly recyclables fair

in five Ayala malls, two universities, and subdivisions. These recyclables fairs

generated 100 tons of recyclables, as well as 5,000 pieces of junk such

as printer toner cartridges and lead-acid batteries. The recovered

junk, which came from over 1,300 participant-sellers, was

estimated to be worth P700,000.

1,300

tons of assorted

recyclables were

recovered from 184

MCBD buildings

Project 175KB

exceeded its target by

collecting over 205,000 books, which were distributed to

329 schools in 16 regions

Centerfor

Social Developmenti

18 19

Ayala Foundation USA

Despite the lingering effects of the global

financial crisis, many Filipino-Americans

continued to support advocacies and fund-raising

activities of Ayala Foundation USA (AF USA).

Fund-raising events, including the highly successful Dining with

the Chefs and the benefit concert headlined by Lea Salonga, were warmly

welcomed by numerous Filipino-American organizations and individuals,

particularly those based in New York and California. Among AFI’s flagship projects,

Gearing up Internet Literacy and Access for Students (GILAS) received some of the

most significant support, with donations almost reaching $200,000.

AF USA also used these fund-raising activities for disaster-relief operations, particularly

in the aftermath of typhoons Ondoy and Pepeng.

In the next few months, AF USA sees itself transitioning into an

organization that empowers Filipino-Americans into taking active

leadership roles in the organization. AF USA will launch this

initiative in 2010.

Education and Livelihood Skills Alliance (ELSA)

The second phase of Education and Livelihood

Skills Alliance (ELSA), a United States Agency for

International Development (USAID)–funded initiative,

continued this year. Some of ELSA’s activities included training

courses for parent–teacher associations (PTAs) in fund-raising and

resource-mobilization. Student leaders also received training in organizing

youth camps, which focus on the importance of good citizenship and community

engagement. Despite the volatile peace-and-order situation in the project sites, AFI,

through ELSA, reached officers and members of 144 PTAs, as well as 160 young leaders in

South Cotabato, Sultan Kudarat, Cotabato City, Basilan, and Tawi-Tawi.

AFI also conducted youth camps for the Cultures Across Mindanao Program of USAID,

Education Quality and Access for Learning and Livelihood Skills (EQuALLS), and the United

States Embassy. A total of 200 Muslim, Christian, and indigenous youth attended the two

camps, the first of which was held for those living in mainland Mindanao,

while the other was for those based in Basilan, Sulu, and Tawi-Tawi.

In addition, ELSA, with the help of AFI and its partner organizations,

facilitated the distribution of storybooks and other

instructional materials to a number of

public schools in the ARMM and

Region XII.

Gearing Up Internet Literacy and Access for Students (GILAS)

The drive to provide all public high schools in the country access to computers and to the Internet

continued through the multisectoral Gearing up Internet Literacy and Access for Students (GILAS)

consortium. Despite the challenges posed by limited resources and Internet infrastructure, GILAS

facilitated the connection of an additional 415 schools to the Internet, thus bringing the total

number of Internet-connected schools to 2,517. In addition, GILAS started using satellite technology

to bring the Internet to remote parts of the country.

Through resource leveraging and partnership building, GILAS matched the donations from local and

foreign companies and overseas Filipinos with the help of funds provided by local government units

and legislators all over the country. GILAS raised P47 milion in cash donations and over P6 million

worth of in-kind donations from the public sector, private sector, and overseas donors.

Text2Teach

Conceptualized in the United States and pilot-tested

in the Philippines, the technology used in Text2Teach is

now being used to improve classroom instruction in about 300

public elementary schools around the country.

In Northern Luzon, AFI led the implementation of Text2Teach’s

expansion phase. With funds from Nokia and other Text2Teach

partners as leverage, AFI successfully solicited additional financial

support from local government units. As a result, Text2Teach was

brought to 97 public elementary schools in Ilagan and Santiago

City, Isabela; Tuguegarao City, Cagayan; Vigan City and

Candon City, Ilocos Sur; Urdaneta City and Villasis,

Pangasinan; and La Trinidad, Benguet.

AF USA raised a

total of $1.42 million

in donations—$1.18 million was

given as cash donations, while

$237,900 was in kind

GILAS

facilitated the

connection of an additional

415 schools to the

Internet

A total of

200 Muslim,

Christian, and indigenous

youth attended leadership

camps

A total of 523

teachers from 97 public elementary

schools received training on how to use the

teaching tools, the short videos, and the

instructional guides

20 21

Ayala Young Leaders Congress (AYLC)

On the 11th year of the Ayala Young Leaders Congress (AYLC), AFI gathered 73 of

the country’s most promising student leaders for a three-day summit.

There are now 798 AYLC alumni, many of whom were actively involved in a nationwide campaign to

encourage young voters to participate in the 2010 elections. The campaign, which featured short lectures

on voters’ rights and responsibilities, was carried out in over 400 schools and institutions and reached over

50,000 individuals.

AYLC alumni also actively participated in disaster-response operations in the wake of typhoons

Ondoy and Pepeng, which hit Metro Manila and Central and Northern Luzon. These relief

operations benefited 1,250 families in Rizal, Bulacan, Pampanga, and Benguet.

In 2009, an AYLC-inspired training program was pilot-tested in five

schools in Mindanao, Visayas, Luzon, and Metro Manila. It was

attended by a total of 300 student leaders. This training

program was developed in response to the call made

by AYLC partner colleges and universities for a

similar leadership-training program that can

be implemented at the school level.

Preparations are being made for

the formal introduction of

the program.

Ayala Technology Business Incubator

The Ayala Technology Business Incubator (Ayala TBI) network

continued to host Filipino start-up companies in four facilities—two within the

University of the Philippines Diliman campus, one at the Asian Institute of Management,

and another at the University of the Philippines Visayas. These facilities hosted a total of 29 start-ups,

which worked in such areas as software applications, hardware development, and environmental technology. The

economic downturn reduced the opportunities for these startups to expand to Japan and the United States, but

they responded to this challenge by developing products and services for the local market.

Ayala TBI also continued to interact with its partners and supporters by holding eight Kape+Teknolohiya and

six Innovation Forums, which served as venues to discuss new technologies, markets, patents, and funding

opportunities. These forums also served as a launch pad for start-ups to present their product and services, a

venue for academics to present the results of research, and a platform for diaspora entrepreneurs and venture

capitalists to share their experience and knowledge.

The first Green Technology Boot Camp (TechBootCamp) attracted 85 participants or 15 teams of three to

six members. The three-day training program tackled issues related to environmental preservation and

sustainability, as well as opportunities for business. A total of 15 business concepts were pitched to a

panel of potential investors.

Before the end of the year Ayala TBI introduced a new track for entrepreneurship opportunities in social

enterprises, with particular focus on pervasive problems and clients who belong to the base

of the economic pyramid. Access to health care, water, and energy, which are

also Millennium Development Goals, are top priority.

Bohol Eco-Cultural program

In Bohol, AFI pursued projects geared toward the sustainable

development of the towns of Dauis and Baclayon. In Dauis, the residents,

the Parish of Our Lady of the Assumption, and AFI worked together in

preserving the cultural heritage of the town, particularly in the restoration

of the Dauis church complex. AFI also provided the residents of Dauis

with technical assistance on enterprise development.

In the municipality of Baclayon, AFI worked closely with the local government

and the residents of the town for the construction of the Baclayon

Tourism Center, which now serves as the hub of the eco-cultural

tourism activities in the town, including the island of

Pamilacan.

The

Iraya Mangyan Development program

AFI’s commitment to the education and health of Iraya

Mangyan communities in Puerto Galera, Oriental Mindoro,

remained strong, as it continued to support a daycare center,

where more than 60 children are enrolled, and facilitated the

daily supplemental feeding of 180 Mangyan children in the

Talipanan Elementary School. Scholarships were also awarded

to 35 high school and 11 vocational-technical students.

AFI also continued its partnership with the Sisters of Charity of

St. Anne to support the Amade Clinic, which sees to the daily

medical needs of the Mangyan community.

Buklod

Bahayan Daycare Center

Buklod Bahayan Daycare Center, an AFI-managed

daycare in Barangay Tartaria, Silang, Cavite, continued to serve

the community by holding daily classes and conducting supplemental

feeding for 192 children, aged 4 to 6. With the help of volunteers, AFI

organized other development activities for the children and their families,

including regular medical/dental missions.

AFI also started preparing the teachers, parents, and the homeowners’

association to assume the management of the daycare center upon its

turnover in June 2010. As part of the preparations for the turnover,

AFI helped the association formalize its registration

papers, and conducted training sessions on

project and financial management.

The

first Green

Technology Boot Camp

(TechBootCamp) attracted

85 participants or 15

teams of three to six

members

Scholarships

were awarded to

35 high school and

11 vocational-technical

students from the

Iraya Mangyan

communities

OTHERPROJECTS

AFI gathered

73 of the country’s

most promising student

leaders for a three-day

summit

22 23

Funds Raised by GILAS

P48,799,530P32,750,500

P54,474,401P6,328,510P6,195,000

P47,244,646

Cash Donations In-Kind Donations

Number of Internet-connected High Schools in the Philippines

2000-2005 2006 2007 2008 20092000-2005 2006 2007 2008 2009

679

333

Total number of connected schools = 2,517

Connections made

2000–2005

facilitated by

Youth Tech

Connections made 2005–2009 facilitated by GILAS

448

642

415

Internet-connected Public High Schools in the Philippines

as of December 31, 2009

61% (3,994)

39% (2,517)

Connected Schools

Unconnected Schools

Total = 6,511 Recyclables Recovered from the

Makati Central Business District

P9,888,932 P9,269,410 P6,980,440

1,300 tons1,891 tons 1,407 tons

Funds Raised by Ayala Foundation USA

$2,266,370

$86,593

$1,177,162

$242,113

$1,292,417

In-kind Donations Cash Donations

$237,900

2007 2008 2009

2007 2008 2009

2007 2008 2009

24 25

HIGHLIGHTS

OPERATIONAL

Centerof Excellence in Public Elementary Education

(CENTEX)

Through the Center of Excellence in

Public Elementary Education (CENTEX),

Ayala Foundation intensifies its advocacy

to eradicate various forms of poverty,

particularly in the area of primary

education. After a decade of existence,

CENTEX continues to provide high-quality

education to intelligent but poor children,

at a par with the kind of education

provided by the best private schools in

the country.

To

celebrate its 10th

year, CENTEX held

a special event at

Onstage Greenbelt

in March.

Key Ayala

officials,

partners, and

benefactors attended

the event.

Respected composer

Ryan Cayabyab wrote

a song especially for

the occasion,

even

accompanying the

first batch of CENTEX

scholars as they

performed

the song.

CENTEX’s

10th year also saw

its first batch of kindergarten

scholars graduate from high school.

Of the 71 students who completed

their elementary education at CENTEX

Manila in 2005, 55 became eligible

for college admission. Two of the 55,

however, opted to defer their college

enrollment due to personal financial

challenges.

The percentage of CENTEX

students who reached first-year

college (77 percent) was much

higher than the national average

(43 percent).

CENTEX considers developing and

nurturing partnerships as important

strategies in ensuring the success

and the sustainability of its projects.

One of the challenges is to look for

ways to ensure the continued college

education of its alumni. Thirty-three

CENTEX alumni were able to secure

college scholarships, provided by the

government, private individuals, or

the schools they enrolled in.

Partnerships

also played a

key role in helping

CENTEX-managed schools remain

competitive. Hewlett-Packard, one of

the world’s largest IT companies, helped

CENTEX Manila upgrade its computer

laboratory. The school’s computer

lab now boasts of new personal

computers, laptops,

a TouchSmart PC,

digital cameras, and

printers.

nurturenurture

26 2726 27

The partnership with Hewlett-

Packard continued with the launch

of My Backyard, a project that aimed

to instill environmental awareness

among Filipinos, children and adults

alike. The project also involved

clean-up drives to communicate the

serious problem of environmental

destruction and what Filipinos

can do to prevent it. Clean-

up drives were conducted in

three barangays in Tondo, Manila.

Also, essays, short stories, photos,

and videos related to the project were

uploaded to the My Backyard website

(mybackyard.centexschool.org), as

well as other social-networking sites.

The United States government,

through the Department of State and

the US Embassy in the Philippines,

selected CENTEX as one

of the

educational

service providers

for the English Access

Microscholarship Program (Access).

This allowed 30 third-year high school

CENTEX alumni to study English

over two years at after-class and

summer intensive

sessions.

Feed the Future,

a month-long fund-raising

campaign was launched to ensure

that students from kindergarten

to the third grade in CENTEX Manila

receive proper nourishment.

In October, CENTEX held its annual

teacher-training program in

Antipolo, Rizal,

with a total of 75 teachers

from the two CENTEX

schools, the AFI-managed

Buklod Bahayan Daycare Center,

and Food for Hungry Minds. The

three-day training program featured

modules on “discipline with dignity”

and “brain-based education,” as well

as demonstrations featuring various

teaching applications and techniques

that can be used in the classroom.

CENTEX also reached out to the

parents of its students by

holding a seminar on the

importance of

disciplining

children with dignity

and providing techniques on

conflict resolution that could help

parents interact with their children

more constructively. About 900

parents attended the seminar.

service

28 29

The Diorama Audio Guides

The museum celebrated the 35th year of its famous Dioramas

on Philippine History by launching a new audio guide system.

Conceptualized by the first museum director, National Artist for

Historical Literature Carlos Quirino, the 60 dioramas on Philippine

history have been enjoyed by visitors for years.

With the support of the Catawamteak Fund, the museum recorded

narrations for each of the dioramas. The English version of the audio

guides featured the voice of broadcaster Mari Kaimo, and was launched in

July. Forty units are currently available for rental at the museum lobby.

A Filipino version of the guides will be available in 2010.

HIGHLIGHTS

OPERATIONAL

AYALA MUSEUM

Ayala

Museum, one of

the country’s leading private

museums, affirmed its commitment

to spread awareness and appreciation

of Philippine heritage by finding new ways

to educate its audience on its existing

collections and exhibitions. It also

strengthened existing partnerships

that supported its shows.

Partnerships and Exhibitions

Many of the museum’s exhibitions were the result of strong and

creative partnerships with various groups and individuals

who support the museum’s initiatives in art, culture, and

history.

Ayala Land inaugurated ArtPark, located within the

Greenbelt complex, by collaborating with Ayala Museum on

two exhibitions—Monumental: Recent Works of Arturo Luz

and Architect Lor Calma: Paintings and Sculptures. In these

exhibitions, large-scale sculptures by Luz, a National Artist for

Visual Arts, and Calma, an acclaimed architect, became points of

interest not only for museum goers, but also for those strolling

around Greenbelt.

In celebration of National Heritage Month in May, the Philippine

Embassy in Mexico partnered with the museum in the exhibition,

Rediscovering Romeo Tabuena: The Later Work, which honored the work

of an important Filipino artist, who is currently based in Mexico. The exhibition

catalogue was published with the support of Globe Platinum.

In July the museum commemorated the 25th death anniversary of pioneering Filipino abstract painter

Fernando Zóbel by exhibiting his early semi-figurative works. The Bank of the Philippine Islands and Shell

Philippines provided grants that made possible the publication of the exhibition catalogue.

Also in July, Ayala Museum honored Romulo Olazo, who over 40 years has produced consistently

intriguing and fresh works. The Olazo retrospective was a collaborative effort between the

museum, Azool Inc., and Paseo Gallery.

In August and September, the museum was one of the partners in the Ayala Malls

Group’s Greenology campaign, which featured a junk-art competition for

students.

40 units

of audio guides are

currently available for

rental at the museum

lobby

30 31

September also saw Ayala Museum’s participation in Zero In, the annual themed event of a consortium

of five private museums—Ayala Museum, Ateneo Art Gallery, Lopez Memorial Museum, Museo Pambata,

and Bahay Tsinoy. Ayala Museum hosted an exhibition called Ring of Fire: The First Southeast Asian Ceramics

Festival.

Under an existing memorandum of understanding between Ayala Foundation and the National Heritage Board

(NHB) of Singapore, Ayala Museum co-curated and helped organize the Philippine exhibitions at the Asian Civilisations

Museum (Land of the Morning: the Philippines and Its People) and at the Singapore

Art Museum (Thrice Upon a Time: A Century of Story in the Art of the

Philippines). The Singapore exhibitions were held to celebrate the 40th

year of diplomatic relations between Singapore and the Philippines.

A new memorandum of understanding between AFI and NHB was

signed in October during the opening reception of Land of the

Morning: The Philippines and Its People. The memorandum of

understanding covers five years.

The museum was also one of the partners in the 42nd

National Students Art Competition held by Shell

Philippines in October.

Education Programs

Aside from publishing six exhibition guides to

complement its shows for the year, Ayala Museum

organized lectures that aimed to further educate

the public on its collections, as well as Philippine art,

culture, and history.

The museum launched I AM Art, a series of weekend

activities for the family. Each session, which came free

with museum admission and was held every Saturday

and Sunday at 3 p.m., featured museum staff teaching

participants various arts and crafts, as well as giving

them a tour of the museum’s collections. Several art

workshops were also held, two of which were open to the

public (Basic Watercolor Painting and Kids’ Art), and four in

collaboration with Ayala Land for its annual Greenbelt Summer

Art Workshops, held at Greenbelt 5.

Historian and professor Ambeth Ocampo, chair of the National Historical Institute,

delivered a lecture on precolonial Philippine history in November. His lecture

attracted over 500 attendees. The museum also hosted Mr. John Guy, the

curator of South and Southeast Asian Art for the Metropolitan Museum

of Art in New York City.

The exhibitions on Arturo Luz and Lor Calma featured separate

lectures given by respected art critic Cid Reyes, while the

Philippine ambassador to Mexico delivered a special talk in

connection with the Romeo Tabuena exhibit.

A new

memorandum of

understanding, which covers

5 years, between AFI and

Singapore NHB was signed

70,041

63,135

59,830

Ayala Museum Visitorship

2008

2009

2007

32 33

Websites

FHL’s online presence

strengthened, as the websites it

manages continue to attract readers from

different parts of the world. Its main website,

www.filipinaslibrary.org.ph, received a total of 51,973

hits during the year.

The official website of the library’s Himig Collection, www.himig.com.ph,

was launched in December. This website serves as a gateway to the digital

versions of the library’s collection of more than 1,000 vintage vinyl recordings of

original Filipino music. Aside from being an online catalogue of the collection, the website

also features a gallery of album cover art, as well as short articles on Philippine music history

and biographical notes on important Filipino composers.

HIGHLIGHTS

OPERATIONAL

FILIPINAS HERITAGE LIBRARY

As

it affirms its

commitment to the cultural

development of the nation, the Filipinas

Heritage Library (FHL) continues to make its

collection of books, documents, and multimedia

materials relevant and accessible to researchers on

Philippine history, art, and culture. FHL also explores

various ways to bring our country’s historical and cultural

heritage closer to the public, through educational programs,

cultural events, and publications. Many of these projects are

accomplished in partnership with individuals, institutions, and

other supporters.

FHL remains an important one-stop electronic research

center on Philippine history, art, and culture. A total of

1,909 visitors came to the library during the year—

1,370 of whom were individual researchers, while

the remaining 539 were tour participants. In

addition, 192 persons registered as library

members and came to the library

regularly.

Also featured in the website

are the “Gems of Philippine

Music,” a collection of 250 songs

considered most representative

of the Filipino character and spirit.

Short descriptions, excerpts from

music scores, and audio snippets

of melodic lines are available for

these gems.

At present, the library has

digitized 2,572 songs

from its Himig

Collection. FHL

also continued

to convert more

m a t e r i a l s

from Retrato,

its collection

of vintage

P h i l i p p i n e

photographs. To

date, 3,186 photos

from Retrato were

converted to digital

format.

Educational Programs

FHL believes in the important role

of education in forming a new

generation of Filipinos who have

an understanding of their heritage.

Teachers contribute significantly

to molding the minds of the youth,

which is why FHL has come up

with teacher-training programs.

One of these is ArtConnection,

which is conducted in partnership

with the League of Corporate

Foundations and aims to sharpen

teachers’ skills in teaching art,

history, culture, and literature.

Started in 2008, ArtConnection has

so far reached over 1,000 teachers.

To ensure that the training received

by teachers through ArtConnection

is reinforced, a draft version of

the ArtConnection resource book

was released to teachers from

participating schools.

In partnership with the Department

of Trade and Industry (DTI), FHL

designed 38 workshops for DTI

employees. These workshops—

running the gamut from history,

art, literature, environmental

preservation, dance, to martial

arts—helped DTI in its pursuit to

help its staff become fully rounded

individuals.

The library also conducted writing,

storytelling, and photography

workshops in Metro Manila and

other locations during the year. A

total of 24 writing and storytelling

workshops were organized

under the leadership of

the library’s external

c o m m u n i t i e s

d e p a r t m e n t

during the year,

attracting young

children and

their parents,

students, and

professionals

from different

parts of Metro

Manila. Meanwhile,

The Alcove, FHL’s

photography gallery,

conducted 25 photography

workshops and mounted six

exhibits.

Publications

As part of its mission to promote

a love of reading in the country,

particularly among children

and adolescents, FHL published

three books during the year.

Wigan Becomes a Sculptor and

Tominaman sa Rogong Becomes

a Painter are children’s books that

tell the story of Philippine art, as

seen through the myths of Filipino

ethnic groups. A book for young

adults, Displaced, was published

in cooperation with Adarna House.

FHL continued to serve as the

editorial office of Ayala Now, the

official newsletter of the Ayala

group of companies. Ayala Now,

published six times a year and

produced in cooperation with

representatives from different

Ayala companies, underwent a

major redesign during the year to

celebrate Ayala Corporation’s 175th

anniversary. FHL helped Ayala

Corporation produce Ayala@175, a

special commemorative magazine

for the anniversary celebrations.

A total of

1,909 researchers and

tour participants came to FHL

in 2009

34 35

As part of the celebration of the 17th National Children’s Book Day spearheaded by the Philippine Board on

Books for Young People, FHL organized a children’s book fair at TriNoma in July. The book fair served as a showcase of Philippine

children’s literature. It also encouraged children to read more.

FHL’s partnership with the National Book Development Board (NBDB) continued during the year. FHL and NBDB staged a performance

reading of Francisco Balagtas’s classic Florante at Laura at TriNoma, also in February. Poets, musicians, dancers, professors, and actors

participated in the reading event.

The library also supported the NBDB in holding academic publishing seminars and book fairs in Baguio City and Davao City. The seminar

invited key players in the local publishing industry to encourage academic institutions to set up their own publishing arms.

In celebration of the 13th Philippine Book Development Month in November, FHL served as a venue and partner in a series of activities

that carried the theme, Galing Pinoy, Basahin!

FHL was also actively involved in the writing, design, editing, and printing of Pioneering for a Sustainable Future, Ayala Corporation’s first

conglomerate-wide sustainability report.

FHL’s Ayala Memory unit, in cooperation with BEZO Initiatives, edited and printed Manila Observatory’s Sustainable

Development Guidebook for the Municipality of Baclayon, which

examines the geography, both physical and social, of

the town of Baclayon, Bohol, so that the municipal

government can have a guide in developing its disaster-

preparedness programs.

Special Events

FHL’s involvement in various activities that promote Philippine culture and history was particularly strong during the year. In February,

FHL organized the book fair and the book launches for Taboan, the first international Philippine writers’ festival spearheaded by the

National Commission for Culture and the Arts (NCCA). Taboan (which means tagpuan in Tagalog) featured discussions with established

and emerging writers, a book exhibit, and performances.

As part of the commemoration of the Battle of Manila in 1945, FHL organized an evening of literary reading. The reading was part of the

activities for Transitio 1945, a multimedia memorial held at the historic Fort Santiago in March.

In partnership with the Ayala Museum and Ayala Land’s Ayala Malls Group, FHL celebrated love and music through Isang Harana: A Night

of Filipino Love Songs on February 15 at the Greenbelt 5 Gallery. The music of acclaimed Filipino composers Ernani Cuenco, Levi Celerio,

Nicanor Abelardo, Angel Peña, Francisco Santiago, and Willy Cruz came alive as they were performed by classical singers and musicians.

Also in cooperation with BEZO Initiatives, Ayala Memory designed and developed the BEZO Initiatives website, www.bezo.org.ph. The website,

launched together with the Sustainable Development Guidebook in November, presents the projects being developed and sustained by

different stakeholders who are all committed to the cultural, environmental, and socioeconomic development of the towns of Baclayon

and Dauis.

In May, the 2007 Ayala Foundation annual report received a silver award for annual or biennial reports from the United States–based Council

of Foundations, which administers the annual Wilmer Shields Rich Awards. The annual report was produced under the leadership of FHL.

FHL

and NBDB

staged a performance

reading of Francisco

Balagtas’s classic Florante

at Laura at TriNoma

36 37

This year’s celebration brought attention to the works of Filipino

writers, particularly the works of National Artist for Literature

Nick Joaquin, and those of international-award-winning authors.

The events also acknowledged the contribution of young writers

to the growth and development of Philippine literature.

Aside from a series of lectures and discussions on Philippine

literature held at FHL’s reading room, an important feature of

the celebrations was the Books and Arts Fest held at Greenbelt

3. The Books and Arts Fest featured a wide variety of locally

published books for children, books on art, Philippine literature,

as well as rare books. Also exhibited were paintings, illustrations,

photographs, and crafts and accessories by local artists.

Also part of the Books and Arts Fest was a performance reading

of Jose Rizal’s El Filibusterismo. A sequel to the marathon

reading of Noli Me Tangere held in 2008, the El Filibusterismo

performance reading showcased performers and writers

interpreting chapters from one of the country’s most important

literary works.

At

present, the

library has digitized

2,572 songs from its

Himig Collection

3,186 photos from Retrato

were converted to digital

format

Filipinas Heritage Library Visitorship

2009

2008

658

1,370

935

2007

1,216

539

Tour Participants

Researchers

964

38 3938

1. The Ayala

Museum’s Gold of

Ancestors exhibition is

one of the most important

exhibitions of ancestral gold

in the world. What prompted

the Ayala Museum to put

on this exhibition?

When the

Ayala Museum was

given custody of this collection, we

immediately recognized its significance. The

gold artifacts that comprise the collection provide

us with a picture of how the precolonial Filipino lived,

and therefore answer important questions related to Filipino

history, culture, and identity. We knew that the collection would

draw Filipinos who wish to understand their history and heritage

better, as well as foreigners and scholars who would like to investigate

the collection’s impact on Philippine and world history.

This exhibition is also key to the redevelopment of our fourth-floor galleries

that began in 2007 and was completed in 2008. Together with the loan

exhibitions A Millennium of Contact: Chinese and Southeast Asian Trade

Ceramics in the Philippines from the Roberto T. Villanueva Foundation

and Embroidered Multiples: 18th–19th Century Philippine Costumes

from the National Museum of Ethnology in Leiden, The Netherlands,

these exhibitions are an extraordinary part of the narrative of

our country’s history and cultural development. A visit to

the museum covers our precolonial past to Philippine

colonial society, from the Diorama Experience to

20th-century Philippine art, and to changing

exhibitions of contemporary local and

international art.

2. Please

share with us the

kinds of response that

the exhibition has received

from students, educators,

tourists, scholars, and

other visitors.

We find it pleasing

when museum guests and

visitors tell us they are impressed by

the exhibition design, or that they enjoy

the introductory film. But what satisfies us

immensely are the reactions that we receive

from students and young people, who after going

through this unique exhibition say that we have

helped them see Filipino history and culture in a

new light. More importantly, hearing them say

that the exhibition has helped them become

more proud of being Filipinos shows us that

we have done something significant

and lasting for the Filipino

youth. 3. How

would you assess

the impact of Gold of

Ancestors (and the rest of

the Crossroads of Civilization

exhibition) on the way

Filipinos understand their

history, identity, and

heritage?

The Crossroads of

Civilization exhibitions open

the door to research and inquiry into

our history where there is still much to

know and understand. The ornaments in the

Gold of Ancestors exhibition point to a highly

stratified society, where the elite wore spectacular

necklaces, belts, and other pieces of adornment.

They also clue us in on a fully developed gold-

working tradition. The gold objects, as well as the

trade vessels from A Millennium of Contact

show the inter-island trade relationships,

as well as affinities with the other

Southeast Asian cultures.

4. What

steps is the Ayala

Museum taking to

make sure that the Gold

of Ancestors exhibition

reaches more

Filipinos?

Ayala Foundation

will be publishing an exhibition

catalogue on Gold of Ancestors in

2010. The book will be enormously helpful

in promoting Filipinos’ appreciation of the

fact that we have precolonial ancestors who

lived in highly developed societies. The book will

also serve as tangible proof that the Philippines

achieved a high level of civilization before the

Spaniards came. Ayala Museum has also been

coordinating with the history departments

of universities and colleges to ensure that

teachers include a visit to the gold

collection in their curriculum.

Victoria P. Garchitorena,

Q and A

with

President

40 41

The YearAhead

The Ayala Young Leaders’

Congress (AYLC), meanwhile, aside from

conducting the annual leadership camp, aims to

ensure its continued relevance by strengthening its alumni

network in outreach activities, as well as reaching out to more

schools and educational institutions.

One of the more exciting changes that we are implementing in AFI is the

expansion of our environmental advocacies. This year, we are establishing an

integrated environment and sustainability division. We are going beyond our

highly successful solid-waste management program to implement programs in clean

water, clean air, and energy efficiency. In relation to sustainability, AFI will continue to play a

pivotal role in Ayala Social Initiatives (ASI), the Ayala group’s flagship sustainability program. After

facilitating the publication of the Ayala group’s first conglomerate-wide sustainability report in 2009,

as well as assisting in the holding of the group’s first Sustainability Summit, AFI will be involved in the

preparation of the next edition of the sustainability report, as well as communicating the importance of

sustainability across the group, and to various external audiences.

Another important development within AFI is the expansion of our entrepreneurship programs. Through the

Ayala Social Enterprise Accelerator Program, AFI’s entrepreneurship programs are now seeking “innovative

solutions to critical social problems.” Aside from promoting the growth of technology start-ups, through our

Technology Business Incubators, we will now also focus on entrepreneurship programs that

address the following pressing problems—public health, with special attention to

rural health care; clean, safe drinking water; and renewable energy.

Our initiatives on history, art, and culture—as led by the Ayala Museum and

the Filipinas Heritage Library (FHL)—will continue to expand their reach.

Aside from fresh exhibitions, publications, and public activities held in the

museum and the library, we will continue to reach out to as many Filipinos,

in different parts of the country, as possible. In cooperation with the Ayala group,

we are embarking on a major art and history advocacy program in 2010. Called

Bravo! Celebrating the Filipino, this program will involve public performances and shows

that run the gamut of the great Filipino art forms—music, dance, film, fashion, photography, painting,

and sculpture. In addition, FHL will continue with its MyLibrary program, which helps build or improve library

facilities in various communities, as well as promote the importance of reading among children and adults.

Our community development programs will remain committed to providing technical assistance to our service

areas. In Bohol, AFI will be involved in setting up a sustainability mechanism in its project areas, before we turn

over our projects to local government units. In Mindoro, AFI will continue its mission of providing education,

entrepreneurial training, and eco-tourism-related capacity-building initiatives for the Iraya Mangyan. Lastly,

we are preparing to turn over the Buklod Bahayan Daycare Center in Cavite to the community this year.

AFI has not forgotten the disasters that struck the country in 2009. And so together with 14 other

organizations, AFI will be actively involved in Project Noah’s Ark, a nationwide disaster preparedness

program. Through Project Noah’s Ark, AFI aims to help identify and develop suitable evacuation

centers in high-risk areas. Aside from building safe and hygienic evacuation facilities, Project

Noah’s Ark will also be providing training in disaster preparedness, developing guidelines

for disaster response, seeking the active participation of community members, and

setting up early warning systems.

We at AFI remain confident that our various stakeholders and partners will continue

to support our efforts, as we continue to evolve as an organization. And as we look

forward to celebrating our 50th anniversary in 2011, we continue to develop

and implement innovative and holistic programs that, we hope, will

contribute to the fulfillment of our mission of eradicating poverty.

T h e

p a s t

48 years of

Ayala Foundation

Inc. have been

characterized by its

capacity and readiness to

adapt to the changing times

and the needs of the communities

it serves. In 2010, we at AFI yet again

face the challenge of further improving

ourselves, so we can stay true to our mission

of contributing to the eradication of poverty in

its myriad forms.

We are realigning some of our organization’s

activities, so that there will be greater synergy in our

various programs. The “3Es” of education, environment,

and entrepreneurship—which we have used as a guiding

force behind the development and implementation of our

projects—are now expanding to cover more ground, and

to achieve greater reach and impact. Now, AFI has greater

resolve in working in five major mission areas—education;

environment; entrepreneurship; history, arts, and culture;

and community development.

The Center of Excellence in Public Elementary Education

(CENTEX), one of our key educational endeavors, stays true

to its mission of providing high-quality public elementary

education, while finding ways to ensure that these students

also get good secondary and tertiary education. In addition,

CENTEX’s holistic view of child development encourages

us to continue our efforts in feeding (as in our Feed the

Future program for CENTEX students), parent training,

and teacher training.

The multi-stakeholder initiatives in which we play an

active role—Text2Teach, Education and Livelihood

Skills Alliance (ELSA), and Gearing up Internet

Literacy and Access for Students (GILAS)—will

continue to strengthen their fund-raising

capacities, so we can reach our

targets: bring Text2Teach

to 150 public elementary

schools, provide training

for 147 youth leaders in

Mindanao, and connect at

least 360 more public

high schools to the

Internet.

One of

the more exciting

changes that we are

implementing in AFI

is the expansion of

our environmental

advocacies.

We are

realigning some

of our organization’s

activities, so that there

will be greater synergy

in our various

programs.

O u r

c o m m u n i t y

d e v e l o p m e n t

programs will remain

committed to providing

technical assistance to

our service areas.

Another

important

development within

AFI is the expansion of

our entrepreneurship

programs.

42 43

FERNANDO ZOBEL DE AYALA

Co–Vice Chairman of the Board

and Executive Committee

ANTONINO AQUINO

Member of the Board of Trustees

MERCEDITA NOLLEDO


JAIME AYALA


JOSE TEODORO LIMCAOCO


ARTHUR TAN


AURELIO MONTINOLA III


2009 Board of Trustees

JAIME AUGUSTO ZOBEL DE AYALA II

Co–Vice Chairman of the Board


VICTORIA GARCHITORENA

President

GERARDO ABLAZA JR.


SOLOMON HERMOSURA

Corporate Secretary

JAIME ZOBEL DE AYALA

Chairman of the Board


STATEMENT OF MANAGEMENT’S RESPONSIBILITY

FOR FINANCIAL STATEMENTS

The management of Ayala Foundation, Inc. is responsible for all information and

representations contained in the statements of financial position as at December 31, 2009 and

2008, and the statements of activities, and cash flows for each of the two years in the period

ended December 31, 2009, and the summary of significant accounting policies and other

explanatory notes. The financial statements have been prepared in accordance with Philippine

Financial Reporting Standards and reflect amounts that are based on the best estimates and

informed judgment of management with an appropriate consideration to materiality.

In this regard, management maintains a system of accounting and reporting which provides for

the necessary internal controls to ensure that transactions are properly authorized and

recorded, assets are safeguarded against unauthorized use or disposition and liabilities are

recognized.

The President and Chief Financial Officer review the financial statements before such

statements are approved and submitted.

SyCip Gorres Velayo & Co., the independent auditors appointed by the Board of Trustees, has

audited the financial statements of the Ayala Foundation, Incorporated in accordance with

Philippine Standards on Auditing and has expressed their opinion on the fairness of

presentation upon completion of such audit, in the attached report.

JAIME ZOBEL DE AYALA

Chairman

VICTORIA P. GARCHITORENA

President

WILMA P. ZAPATA

Chief Financial Officer

VICTORIA P. GARCHITORE

Center for Social Development

Mario A. DeriquitoMario A. Deriquito

DirectorDirector

Dino Rey Abellanosa • Tita Aquino • Mercedes Barcelon • Julie Bergania Dino Rey Abellanosa • Tita Aquino • Mercedes Barcelon • Julie Bergania

Chiara Cruza • Ma. Sergia Rosario Catangay • Adelia Licos • Cecilia Palma Chiara Cruza • Ma. Sergia Rosario Catangay • Adelia Licos • Cecilia Palma

Joseph Anthony Quesada • Tito Gonzalo Rivera • Archimedes VelascoJoseph Anthony Quesada • Tito Gonzalo Rivera • Archimedes Velasco

ManagersManagers

Mary Grace Abdon • Joysen Accad • Jerry Akut • Bayani Alonto Jr. • Joneil Ano Mary Grace Abdon • Joysen Accad • Jerry Akut • Bayani Alonto Jr. • Joneil Ano

Meriam Badal • Mary Rose Erika Barja • Ma. Paz Baylon • Steffi Borromeo Meriam Badal • Mary Rose Erika Barja • Ma. Paz Baylon • Steffi Borromeo

Rodford Bucalon • Leopoldo Cailing II • Thello Jay Cardente • Paul Michael Castillo Rodford Bucalon • Leopoldo Cailing II • Thello Jay Cardente • Paul Michael Castillo

Edward Dawatan • Florence Ann de Castro • Mariel Carla de Jesus Edward Dawatan • Florence Ann de Castro • Mariel Carla de Jesus

Kristine de la Cruz • Ireneo Demecais Jr. • Rizalyn Escovidal Kristine de la Cruz • Ireneo Demecais Jr. • Rizalyn Escovidal

John Christopher Paul Gulay • Ana Ciaren Hipolito • Sanima Kamenza John Christopher Paul Gulay • Ana Ciaren Hipolito • Sanima Kamenza

Jennifer Ligutom • Henry Lu • Samuel Macagba III • Abdulnasser Macarimbang Jennifer Ligutom • Henry Lu • Samuel Macagba III • Abdulnasser Macarimbang

Dennis Mateo • Joseph Navarro • Mildred Ople • Mary Grace Parungao Dennis Mateo • Joseph Navarro • Mildred Ople • Mary Grace Parungao

Baby Zainab Penit • Sajid Peuto Jr. • Marrites Potenciano • Pureza Platon Baby Zainab Penit • Sajid Peuto Jr. • Marrites Potenciano • Pureza Platon

Pepito Rabago • Ma. Carmela Anna Saavedra • Fernand Saldo Pepito Rabago • Ma. Carmela Anna Saavedra • Fernand Saldo

Celfredo Sanson • Glady Serrano • Hannah Vina TraviñaCelfredo Sanson • Glady Serrano • Hannah Vina Traviña

Romulo Valientes Jr. • Jo Anne Villarosa • Melissa Yamson Romulo Valientes Jr. • Jo Anne Villarosa • Melissa Yamson

Maricar YuloMaricar Yulo

StaffStaff

Ayala Museum

Ma. Antonia C. Ortigas

Director

Kenneth Esguerra • Ma. Bernadette Samson

Rinnah Sevilla • Aprille Tijam • Judy Villacruz

Managers

Miguel Carlos Acosta • Maria Loreta Busto

Claire Julia Cruz • Roland Cruz • Paula Nikola Fernandez

Valerie Floro • Jo Ann Gando • Justin Dominic Gatuslao

Ma. Elena Malgapo • Marinella Andrea Mina

Rosalinda Navera • Niño Charls Oliveros

Duffie Alejandrino Felizardo Osental • Antonio Par

Ma. de las Nieves Pedraja • Elena Robles

Pablo Ruiz • Therese Marie Sunga

Arnold Torrecampo

Staff

Filipinas Heritage Library

Ma. Antonia C. Ortigas

Director

Suzanne Yupangco

Deputy Director

Graciela Cayton • Alexander Gregorio II

Managers

Jhoanne Abubakar • Anne Marie Alim • Jennifer Bascoguin

Cecilia Cruz • Faye Johanna Cura • Marjorie de Asis

Jin Paul de Guzman • Gilbert de Jesus • Rosemarie Figuerres

Micaella Angelica Gonzalez • Maria Cecilia Ingusan

Jose Reginald Juanico • Mary Clare Lambino

Arnaldo Legaspi • Jaime Martinez

Mary Rose Raguindin • January Salvador

Staff

Finance

and Corporate Services

Wilma P. Zapata

Director and Chief Financial Officer

Patricia Adrias • Jose Barcelona • Araceli Oasan

Managers

Wilma Theresa Alaban • Christian Martin Andrada

Arwin Ayson • Rosanna Baetiong • Teresita Cailo

Maria Louella Dizon • Francis Estolano • Imelda Fatalla

Erwin Gopez • Odrie Joy Gungab • Mark Anthony Mariano

Ronnie Marquez • Daniel Mejia • Niño Carlo Nevado

Escolastica Nonog • Maria Cindy Poyaoan

Clarissa Reforsado • Joan Paula Ruiz

Sharon Sanchez • Kathrine Sison

Monet Villanueva

Staff

Office of the President

Sarah Sevilla

Office of the

Executive Vice President

Maureen Bañaga

Victor Philip Mariano

44 45

Center

of Excellence in Public

Elementary Education

Ramon R. Miranda

Director

Mariecar Fernando • Desiree Garcia

Christine Joy Sarigumba

Staff

Jaime Zobel de Ayala

Chairman

Fernando Zobel de Ayala

Jaime Augusto Zobel de Ayala

Co–Vice Chairmen

Victoria P. Garchitorena

President

Guillermo M. Luz

Executive Vice President

Ayala Foundation, Inc.Management and Staff

(As of December 2009)

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INDEPENDENT AUDITORS’ REPORT

The Board of Trustees

Ayala Foundation, Inc.

10th Floor, BPI Main Building

Ayala Avenue corner Paseo de Roxas

Legaspi Village, Makati City

We have audited the accompanying financial statements of Ayala Foundation, Inc.

(a nonstock, not-for-profit organization), which comprise the statements of financial position as

at December 31, 2009 and 2008, and the statements of activities and statements of cash flows

for the years then ended, and a summary of significant accounting policies and other

explanatory notes.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial

statements in accordance with Philippine Financial Reporting Standards. This responsibility

includes: designing, implementing and maintaining internal control relevant to the preparation

and fair presentation of financial statements that are free from material misstatement,

whether due to fraud or error; selecting and applying appropriate accounting policies; and

making accounting estimates that are reasonable in the circumstances.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with Philippine Standards on Auditing. Those standards

require that we comply with ethical requirements and plan and perform the audit to obtain

reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and

disclosures in the financial statements. The procedures selected depend on the auditor’s

judgment, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, the auditor

considers internal control relevant to the entity’s preparation and fair presentation of the

financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the

entity’s internal control. An audit also includes evaluating the appropriateness of accounting

policies used and the reasonableness of accounting estimates made by management, as well

as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a

basis for our audit opinion.

SyCip Gorres Velayo & Co. 6760 Ayala Avenue 1226 Makati City Philippines

Phone: (632) 891 0307 Fax: (632) 819 0872 www.sgv.com.ph

BOA/PRC Reg. No. 0001 SEC Accreditation No. 0012-FR-2 - 2 -

Opinion

In our opinion, the financial statements present fairly, in all material respects, the financial

position of Ayala Foundation, Inc. as of December 31, 2009 and 2008, and its financial activities

and its cash flows for the years then ended in accordance with Philippine Financial Reporting

Standards.

SYCIP GORRES VELAYO & CO.

Jessie D. Cabaluna

Partner

CPA Certificate No. 36317

SEC Accreditation No. 0069-AR-2

Tax Identification No. 102-082-365

PTR No. 2087369, January 4, 2010, Makati City

March 3, 2010

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AYALA FOUNDATION, INC.(A Nonstock, Not-for-Profit Organization)

STATEMENTS OF FINANCIAL POSITION

December 31

2009 2008

ASSETS

Current Assets

Cash and cash equivalents (Notes 4 and 12) PP=45,427,232 P=56,948,377

Receivables - net (Notes 5 and 12) 225,568,797 33,146,215

Merchandise inventories 113,708,453 12,847,654

Other current assets (Note 6) 44,258,347 4,355,216

Total Current Assets 888,962,829 107,297,462

Noncurrent Assets

Property and equipment - net (Note 7) 1173,367,083 183,518,169

Available-for-sale financial assets (Notes 8 and 12) 8894,487,211 608,243,559

Total Noncurrent Assets 11,067,854,294 791,761,728

P=1,156,817,123 P=899,059,190

LIABILITIES AND NET ASSETS

Current Liability

Accounts and other payables (Notes 9 and 12) PP=98,960,948 P=63,739,673

Noncurrent Liability

Pension liability (Note 10) 22,188,659 2,471,331

Total Liabilities 1101,149,607 66,211,004

Net Assets

Unrestricted (Note 11) 1136,707,864 135,368,659

Temporarily restricted (Note 11) 3398,626,256 265,911,817

Permanently restricted (Note 11) 5522,150,995 525,997,763

Unrealized losses on available-for-sale financial assets

(Note 8)

(1,817,599) (94,430,053)

Total Net Assets 11,055,667,516 832,848,186

P=1,156,817,123 P=899,059,190

See accompanying Notes to Financial Statements.

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STATEMENTS OF CASH FLOWS

Years Ended December 31

2009 2008

CASH FLOWS FROM OPERATING ACTIVITIES

Changes in net assets PP=222,819,330 (P=151,960,845)

Adjustments for:

Depreciation and amortization (Note 7) 114,690,090 11,973,056

Recovery of impairment losses (Note 5) –– (1,160,273)

Provision for impairment losses (Notes 5 and 11) –– 226,008

Investment loss (income) ((45,471,300) 3,794,120

Net unrealized (gains) losses on AFS financial assets ((92,612,454) 136,288,704

Changes in net assets before changes in working capital 999,425,666 (839,230)

Decrease (increase) in:

Receivables 111,712,515 35,454,665

Merchandise inventories ((860,799) (329,167)

Other current assets 996,869 1,838,783

Increase (decrease) in:

Accounts and other payables 335,221,275 (2,329,574)

Pension liability ((282,672) 543,173

Net cash provided by operating activities 1145,312,854 34,338,650

CASH FLOWS FROM INVESTING ACTIVITIES

Net disposals (additions) to AFS financial assets ((193,631,198) 10,453,456

Net additions to property and equipment (Note 7) ((4,539,004) (22,645,315)

Interest received 441,336,203 2,006,740

Net cash used in investing activities ((156,833,999) (10,185,119)

NET INCREASE (DECREASE) IN CASH AND CASH

EQUIVALENTS (11,521,145) 24,153,531

CASH AND CASH EQUIVALENTS AT BEGINNING

OF YEAR 56,948,377 32,794,846

CASH AND CASH EQUIVALENTS AT END

OF YEAR (Note 4) PP=45,427,232 P=56,948,377

See accompanying Notes to Financial Statements


NOTES TO FINANCIAL STATEMENTS

1. OOrganization and Tax Exemption

Ayala Foundation, Inc. (the Foundation) was registered with the Securities and Exchange

Commission (SEC) on December 28, 1961 as a nonstock, not-for-profit organization

primarily for the following purposes:

a. To function and operate as a private science and research foundation;

b. To provide financial support or scholarships;

c. To undertake ventures together with organized rural communities for the transfer of

appropriate technologies;

d. To undertake integrated community organization and development programs;

e. To encourage the establishment of urban and rural micro, cottage and small enterprises

as a means of creating employment among the poor;

f. To undertake social services; and

g. To preserve and enhance Philippine arts and culture as a means of developing national

pride and patriotism.

As a nonstock, not-for-profit organization intended for scientific purposes, the Foundation’s

income is exempt from payment of income tax as set forth in Section 30(e) of the National

Internal Revenue Code (NIRC) as amended by Executive Order (E.O.) 273. The Foundation

has been certified as an entity organized for scientific advancement and that its funds are

dedicated to scientific pursuits within the meaning of Section 24 of Republic Act No. 2067,

as amended.

The Foundation is registered with the Bureau of Internal Revenue (BIR) as a donee

institution in accordance with the provisions of BIR-National Economic and Development

Authority Regulations No. 1-81 (as amended) and is entitled to the benefits set forth in

Section 29(h) of the NIRC, as amended by E.O. 273. As a registered donee, all donations and

contributions to the Foundation are exempt from donor’s tax.

The Foundation’s registered office address is at 10th Floor, BPI Main Building, Ayala Avenue

corner Paseo de Roxas, Legaspi Village, Makati City.

The financial statements of the Foundation for the years ended December 31, 2009 and

2008 were approved and authorized for issue by the Foundation’s President and Chief

Financial Officer on March 3, 2010.

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- 2 -

2. Summary of Significant Accounting Policies

Basis of Preparation

The financial statements of the Foundation have been prepared using the historical cost basis,

except for available-for-sale (AFS) financial assets that have been measured at fair value. The

Foundation’s presentation and functional currency is the Philippine Peso (P=).

Consistent with the requirement of Philippine Accounting Standard (PAS) 8, Accounting Policies,

Changes in Accounting Estimates and Errors, the Foundation applied Statement of Financial

Accounting Standards No. 117, Financial Statements of Not-for-Profit Organizations. This

Statement establishes standards for general-purpose external financial statements provided by a

not-for-profit organization. It specifies that those statements include a statement of financial

position, a statement of activities and a statement of cash flows.

Statement of Compliance

The accompanying financial statements have been prepared in compliance with Philippine Financial

Reporting Standards (PFRS).

Adoption of New and Amended Accounting Standards and Interpretations

The accounting policies adopted in the preparation of the Foundation’s financial statements are

consistent with those of the previous financial year except for the adoption of the following

Philippine Interpretations of International Financial Reporting Interpretations Committee (IFRIC)

interpretations and amendments to existing standards which became effective on January 1, 2009.

• Amendments to PFRS 7, Financial Instruments: Disclosures - Improving Disclosures about

Financial InstrumentsThe amendments to PFRS 7 introduce enhanced disclosures about fair value measurement and

liquidity risk. The amendments to PFRS 7 require fair value measurements for each class of

financial instruments to be disclosed by the source of inputs, using the following three-level

hierarchy: (a) quoted prices (unadjusted) in active markets for identical assets or liabilities (Level

1); (b) inputs other than quoted prices included in Level 1 that are observable for the asset or

liability, either directly (as prices) or indirectly (derived from prices) (Level 2); and (c) inputs for the

asset or liability that are not based on observable market data (unobservable inputs) (Level 3).

The level within which the fair value measurement is categorized must be based on the lowest

level of input to the instrument’s valuation that is significant to the fair value measurement in its

entirety.

Additional disclosures required in the amendments to PFRS 7 are shown in Note 12. The

amendments to PFRS 7 also introduce two major changes in liquidity risk disclosures as follows:

(a) exclusion of derivative liabilities from maturity analysis unless the contractual maturities are

essential for an understanding of the timing of the cash flows and (b) inclusion of financial

guarantee contracts in the contractual maturity analysis based on the maximum amount

guaranteed.

• PFRS 8, Operating SegmentsIt will replace PAS 14, Segment Reporting, and adopts a full management approach to identifying,

measuring and disclosing the results of an entity’s operating segments. The information

reported would be that which management uses internally for evaluating the performance of

operating segments and allocating resources to those segments. Such information may be

different from that reported in the consolidated balance sheet and consolidated statement of

income and the Foundation will provide explanations and

- 3 -

reconciliations of the differences. This Standard is only applicable to an entity that has debt or

equity instruments that are traded in a public market or that files (or is in the process of filing) its

financial statements with a securities commission or similar party.

• Amendment to PAS 1, Presentation of Financial StatementsIt introduces a new statement of comprehensive income that combines all items of income and

expenses recognized in the profit or loss together with ‘other comprehensive income’. Entities

may choose to present all items in one statement, or to present two linked statements, a

separate statement of income and a statement of comprehensive income. This Amendment

also requires additional requirements in the presentation of the balance sheet and equity as well

as additional disclosures to be included in the consolidated financial statements. Adoption of

this Amendment did not have significant impact on the financial position or performance of the

Foundation.

• Amendments to Philippine Interpretation IFRIC 9, Reassessment of Embedded Derivatives, and

PAS 39, Financial Instruments: Recognition and MeasurementThis Amendment to Philippine Interpretation IFRIC 9 requires an entity to assess whether an

embedded derivative must be separated from a host contract when the entity reclassifies a

hybrid financial asset out of the fair value through profit or loss category. This assessment is to

be made based on circumstances that existed on the later of the date the entity first became a

party to the contract and the date of any contract amendments that significantly change the

cash flows of the contract. Amendments PAS 39 now states that if an embedded derivative

cannot be reliably measured, the entire hybrid instrument must remain classified as at fair value

through profit or loss. Adoption of the amendment did not have a significant impact on the

financial statements of the Foundation.

Improvements to PFRS

In April 2009, the International Accounting Standards Board issued its omnibus of amendments to

certain standards, primarily with a view to removing inconsistencies and clarifying wordings. There

are separate transitional provisions for each standard:

• PFRS 2, Share-based Payment

It clarifies that the contribution of a business on formation of a joint venture and combinations

under common control are not within the scope of PFRS 2 even though they are out of scope of

PFRS 3, Business Combinations. The amendment is effective for financial years on or after July 1,

2009.

• PFRS 5, Noncurrent Assets Held for Sale and Discontinued Operations

It clarifies that the disclosures required in respect of non-current assets and disposal groups

classified as held for sale or discontinued operations are only those set out in PFRS 5. The

disclosure requirements of other PFRSs only apply if specifically required for such non-current

assets or discontinued operations.

• PFRS 8, Operating Segment InformationIt clarifies that segment assets and liabilities need only be reported when those assets and

liabilities are included in measures that are used by the chief operating decision maker.

• PAS 1, Presentation of Financial Statements

It clarifies that the terms of a liability that could result, at anytime, in its settlement by the

issuance of equity instruments at the option of the counterparty do not affect its classification.

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• PAS 7, Statement of Cash FlowsIt explicitly states that only expenditure that results in a recognized asset can be classified as a

cash flow from investing activities.

• PAS 17, LeasesIt removes the specific guidance on classifying land as a lease. Prior to the amendment, leases of

land were classified as operating leases. The amendment now requires that leases of land are

classified as either ‘finance’ or ‘operating’ in accordance with the general principles of PAS 17.

The amendments will be applied retrospectively.

• PAS 18, Revenue

The amendment adds guidance (which accompanies the standard) to determine whether an

entity is acting as a principal or as an agent. The features to consider are whether the entity: (a)

has primary responsibility for providing the goods or service; (b) has inventory risk;

(c) has discretion in establishing prices; and (d) bears the credit risk.

• PAS 36, Impairment of AssetsIt clarifies that the largest unit permitted for allocating goodwill, acquired in a business

combination, is the operating segment as defined in PFRS 8 before aggregation for reporting

purposes.

• PAS 38, Intangible Assets

It clarifies that if an intangible asset acquired in a business combination is identifiable only with

another intangible asset, the acquirer may recognize the group of intangible assets as a single

asset provided the individual assets have similar useful lives. Also clarifies that the valuation

techniques presented for determining the fair value of intangible assets acquired in a business

combination that are not traded in active markets are only examples and are not restrictive on

the methods that can be used.

• PAS 39, Financial Instruments: Recognition and Measurement - Eligible Hedged ItemsIt clarifies the following: (a) that a prepayment option is considered closely related to the host

contract when the exercise price of a prepayment option reimburses the lender up to the

approximate present value of lost interest for the remaining term of the host contract; (b) that

the scope exemption for contracts between an acquirer and a vendor in a business combination

to buy or sell an acquiree at a future date applies only to binding forward contracts, and not

derivative contracts where further actions by either party are still to be taken; and (c) that gains

or losses on cash flow hedges of a forecast transaction that subsequently results in the

recognition of a financial instrument or on cash flow hedges of recognized financial instruments

should be reclassified in the period that the hedged forecast cash flows affect profit or loss.

• Philippine Interpretation IFRIC 9, Reassessment of Embedded DerivativesIt clarifies that it does not apply to possible reassessment at the date of acquisition, toembedded derivatives in contracts acquired in a business combination between entities orbusinesses under common control or the formation of joint venture.

- 5 -

Future Changes in Accounting Policies

The Foundation will adopt the following standards and interpretations enumerated below when

these become effective. Except as otherwise indicated, the Foundation does not expect the adoption

of these new and amended PFRS and Philippine Interpretations to have a significant impact on its

financial statements.

Effective in 2010

• Philippine Interpretation IFRIC 18, Transfers of Assets from CustomersThis Philippine Interpretation is to be applied prospectively to transfers of assets from customers

received. It also provides guidance on how to account for items of property, plant and equipment

received from customers or cash that is received and used to acquire or construct assets that are

used to connect the customer to a network or to provide ongoing access to a supply of goods or

services or both. When the transferred item meets the definition of an asset, the asset is

measured at fair value on initial recognition as part of an exchange transaction. The service(s)

delivered are identified and the consideration received (the fair value of the asset) allocated to

each identifiable service.

• Revised PFRS 3, Business Combinations and PAS 27, Consolidated and Separate Financial

StatementsThe revised PFRS 3 introduces a number of changes in the accounting for business combinations

that will impact the amount of goodwill recognized, the reported results in the period that an

acquisition occurs, and future reported results. The revised PAS 27 requires, among others, that

(a) change in ownership interests of a subsidiary (that do not result in loss of control) will be

accounted for as an equity transaction and will have no impact on goodwill nor will it give rise to

a gain or loss; (b) losses incurred by the subsidiary will be allocated between the controlling and

noncontrolling interests (previously referred to as ‘minority interests’), even if the losses exceed

the noncontrolling equity investment in the subsidiary; and (c) on loss of control of a subsidiary,

any retained interest will be remeasured to fair value and this will impact the gain or loss

recognized on disposal. The changes introduced by the revised PFRS 3 must be applied

prospectively, while changes introduced by the revised

PAS 27 must be applied retrospectively with a few exceptions. The changes will affect future

acquisitions and transactions with noncontrolling interests. The Foundation has concluded that

the amendment will have no impact on the financial position or performance of the Foundation.

Cash and Cash EquivalentsCash includes cash on hand and in banks. Cash equivalents are short-term, highly liquidinvestments that are readily convertible to known amounts of cash with original maturities of threemonths from dates of acquisitions or less and that are subject to an insignificant risk of changes invalue.

Financial Instruments

Date of recognitionThe Foundation recognizes a financial asset or a financial liability in the statement of financial

position when it becomes a party to the contractual provisions of the instrument. Purchases or

sales of financial assets that require delivery of assets within the time frame established by

regulation or convention in the marketplace are recognized on the settlement date.

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- 6 -

Initial recognition of financial instruments

All financial assets and financial liabilities are initially recognized at fair value. Except for financial

assets and financial liabilities at FVPL, the initial measurement of financial instruments includes

transaction costs. The Foundation classifies its financial assets in the following categories: financial

assets at FVPL, held-to-maturity (HTM) investments, AFS financial assets, and loans and receivables.

The Foundation classifies its financial liabilities into financial liabilities at FVPL and other financial

liabilities. The classification depends on the purpose for which the investments were acquired or

liabilities incurred and whether they are quoted in an active market. Management determines the

classification of its investments at initial recognition and, where allowed and appropriate, re-

evaluates such designation at every reporting date.

The Foundation has no financial assets and financial liabilities designated as at FVPL and HTM

investments as of December 31, 2009 and 2008.

Determination of fair valueThe fair value for financial instruments traded in active markets at the reporting date is based on

their quoted market price or dealer price quotations (bid price for long positions and ask price for

short positions), without any deduction for transaction costs. When current bid and asking prices are

not available, the price of the most recent transaction provides evidence of the current fair value as

long as there has not been a significant change in economic circumstances since the time of the

transaction.

For all other financial instruments not listed in an active market, the fair value is determined by using

appropriate valuation techniques. Valuation techniques include net present value techniques,

comparison to similar instruments for which market observable prices exist, options pricing models,

and other relevant valuation models.

Day 1 profit

Where the transaction price in a non-active market is different to the fair value from other

observable current market transactions in the same instrument or based on a valuation technique

whose variables include only data from observable market, the Foundation recognizes the

difference between the transaction price and fair value (a Day 1 profit) in the statement of activities

under the “Investment income” account. In cases where use is made of data which is not observable,

the difference between the transaction price and model value is only recognized in the statement of

activities when the inputs become observable or when the instrument is derecognized. For each

transaction, the Foundation determines the appropriate method of recognizing the

‘Day 1’ profit amount.

Loans and receivablesLoans and receivables are financial assets with fixed or determinable payments and fixed maturities

that are not quoted in an active market. They are not entered into with the intention of immediate

or short-term resale and are not designated as AFS financial assets or financial

assets at FVPL. This accounting policy relates to the statement of financial position caption

“Receivables”.

After initial measurement, the loans and receivables are subsequently measured at amortized cost

using the effective interest rate method, less allowance for impairment. Amortized cost is calculated

by taking into account any discount or premium on acquisition and fees that are an integral part of

the effective interest rate. The amortization is included in the “Investment income” account in the

statement of activities. The losses arising from impairment of such loans and receivables are

recognized in the statement of activities.

- 7 -

AFS financial assets

AFS financial assets are those which are designated as such or do not qualify to be classified as

designated as securities at FVPL, HTM investments, or loans and receivables. They are purchased

and held indefinitely, and may be sold in response to liquidity requirements or changes in market

conditions. AFS financial assets include equity investments.

After initial measurement, AFS financial assets are measured at fair value. The unrealized gains and

losses arising from the fair valuation of AFS financial assets are excluded from reported earnings

and are reported as “Unrealized gains (losses) on AFS financial assets” in the statement of activities.

When the security is disposed of, the cumulative gain or loss previously recognized in equity is

recognized in the reported income. Where the Foundation holds more than one investment in the

same security these are deemed to be disposed of on a first-in first-out basis. Interest earned on

holding AFS financial assets are reported as investment income using the effective interest rate.

Dividends earned on holding AFS financial assets are recognized in the statement of activities when

the right of the payment has been established. The losses arising from impairment of such

investments are recognized in the statement of activities.

When the fair value of AFS financial assets cannot be measured reliably because of lack of reliable

estimates of future cash flows and discount rates necessary to calculate the fair value of unquoted

equity instruments, these investments are carried at cost, less any allowance for impairment losses.

Other financial liabilitiesOther financial liabilities pertain to issued financial instruments that are not classified or designated

at FVPL and contain contractual obligations to deliver cash or other financial assets to the holder or

to settle the obligation other than the exchange of a fixed amount of cash or another financial asset

for a fixed number of own equity shares. After initial measurement, other financial liabilities are

subsequently measured at amortized cost using the effective interest rate method. Amortized cost

is calculated by taking into account any discount or premium on the issue and fees that are an

integral part of the effective interest rate.

This accounting policy applies primarily to the Foundation’s accounts and other payables and other

obligations that meet the above definition.

Impairment of Financial Assets

The Foundation assesses at each reporting date whether there is objective evidence that a financial

asset or group of financial assets is impaired. A financial asset or a group of financial assets is

deemed to be impaired if, and only if, there is objective evidence of impairment as a result of one or

more events that has occurred after the initial recognition of the asset (an incurred ‘loss event’) and

that loss event (or events) has an impact on the estimated future cash flows of the financial asset or

the group of financial assets that can be reliably estimated. Evidence of impairment may include

indications that the borrower or a group of borrowers is experiencing significant financial difficulty,

default or delinquency in interest or principal payments, the probability that they will enter

bankruptcy or other financial reorganization and where observable data indicate that there is

measurable decrease in the estimated future cash flows, such as changes in arrears or economic

conditions that correlate with defaults.

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- 8 -

Loans and receivables

For loans and receivables carried at amortized cost, the Foundation first assesses whether objective

evidence of impairment exists individually for financial assets that are individually significant, or

collectively for financial assets that are not individually significant. If the Foundation determines

that no objective evidence of impairment exists for individually assessed financial asset, whether

significant or not, it includes the asset in a group of financial assets with similar credit risk

characteristics and collectively assesses for impairment. Those characteristics are relevant to the

estimation of future cash flows for groups of such assets by being indicative of the debtors’ ability to

pay all amounts due according to the contractual terms of the assets being evaluated. Assets that

are individually assessed for impairment and for which an impairment loss is, or continues to be

recognized are not included in a collective assessment for impairment.

If there is objective evidence that an impairment loss has been incurred, the amount of the loss is

measured as the difference between the asset’s carrying amount and the present value of the

estimated future cash flows (excluding future credit losses that have not been incurred). The

carrying amount of the asset is reduced through use of an allowance account and the amount of loss

is charged to the statement of activities. Interest income continues to be recognized based on the

original effective interest rate of the asset. Loans and receivables, together with the associated

allowance accounts, are written off when there is no realistic prospect of future recovery and all

collateral has been realized. If, in a subsequent year, the amount of the estimated impairment loss

decreases because of an event occurring after the impairment was recognized, the previously

recognized impairment loss is reversed. Any subsequent reversal of an impairment loss is

recognized in statement of activities, to the extent that the carrying value of the asset does not

exceed its amortized cost at the reversal date.

For the purpose of a collective evaluation of impairment, financial assets are grouped on the basis of

such credit risk characteristics as industry, past-due status and term.

Future cash flows in a group of financial assets that are collectively evaluated for impairment are

estimated on the basis of historical loss experience for assets with credit risk characteristics similar

to those in the group. Historical loss experience is adjusted on the basis of current observable data

to reflect the effects of current conditions that did not affect the period on which the historical loss

experience is based and to remove the effects of conditions in the historical period that do not exist

currently. The methodology and assumptions used for estimating future cash flows are reviewed

regularly by the Foundation to reduce any differences between loss estimates and actual loss

experience.

AFS financial assetsFor AFS financial assets, the Foundation assesses at each balance sheet date whether there is

objective evidence that a financial asset or group of financial assets is impaired.

In case of equity investments classified as AFS financial assets, this would include a significant or

prolonged decline in the fair value of the investments below its cost. Where there is evidence of

impairment, the cumulative loss - measured as the difference between the acquisition cost and the

current fair value, less any impairment loss on that financial asset previously recognized in the

statement of activities - is removed from the “Unrealized gain (loss) AFS financial assets” account

and recognized in the statement of activities. Impairment losses on equity investments are not

reversed through income. Increases in fair value after impairment are recognized directly under

“Unrealized gain (loss) on AFS financial assets” account in the statement of activities.

- 9 -

Derecognition of Financial Assets and Liabilities

Financial asset

A financial asset (or, where applicable, a part of a financial asset or part of a group of similar financial

assets) is derecognized when:

a. the rights to receive cash flows from the asset have expired;b. the Foundation retains the right to receive cash flows from the asset, but has assumed an

obligation to pay them in full without material delay to a third party under a ‘pass-through’arrangement; or

c. the Foundation has transferred its rights to receive cash flows from the asset and either (i) hastransferred substantially all the risks and rewards of the asset, or (ii) has neither transferred norretained substantially all the risks and rewards of the asset, but has transferred control of theasset.

Where the Foundation has transferred its rights to receive cash flows from an asset or has entered

into a pass-through arrangement, and has neither transferred nor retained substantially all the risks

and rewards of the asset nor transferred control of the asset, the asset is recognized to the extent of

the Foundation’s continuing involvement in the asset. Continuing involvement that takes the form

of a guarantee over the transferred asset is measured at the lower of original carrying amount of the

asset and the maximum amount of consideration that the Foundation could be required to repay.

Financial liability

A financial liability is derecognized when the obligation under the liability is discharged or cancelled or

expired. Where an existing financial liability is replaced by another from the same lender on

substantially different terms, or the terms of an existing liability are substantially modified, such an

exchange or modification is treated as a derecognition of the original liability and the recognition of a

new liability, and the difference in the respective carrying amounts is recognized in the statement of

activities.

Offsetting Financial Instruments

Financial assets and financial liabilities are offset and the net amount reported in the statement of

financial position if, and only if, there is a currently enforceable legal right to offset the recognized

amounts and there is an intention to settle on a net basis, or to realize the asset and settle the

liability simultaneously. This is not generally the case with master netting agreements, and the

related assets and liabilities are presented gross in the statements of financial position.

Merchandise Inventories

Merchandise inventories consist of books and other items held for sale. Merchandise inventories are

valued at the lower of cost or net realizable value (NRV). Cost is determined using the first-in, first-

out method. NRV is the estimated selling price in the ordinary course of business less marketing

costs.

Property and Equipment

Property and equipment except for land, are carried at cost less accumulated depreciation and

amortization and any impairment in value. Land is carried at cost less any impairment in value.

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The initial cost of property and equipment comprises its purchase price and any directly attributable

costs of bringing the asset to its working condition and location for its intended use. Expenditures

incurred after the property and equipment have been put into operation, such as repairs and

maintenance, are normally charged to expense in the period in which the costs are

incurred. In situations where it can be clearly demonstrated that the expenditures have resulted in

an increase in the future economic benefits expected to be obtained from the use of an item of

property and equipment beyond its originally assessed standard of performance, the expenditures

are capitalized as an additional cost of property and equipment.

Depreciation and amortization of property and equipment commences once the property and

equipment are available for use and is computed using the straight-line method over the following

estimated useful lives of the property and equipment:

Leasehold improvements 5-25 yearsOffice furniture and equipment 3-5 yearsTransportation equipment 5 years

Leasehold improvements are amortized over the estimated useful life of the improvements or the

terms of the lease, whichever is shorter.

The useful lives and depreciation and amortization method are reviewed periodically to ensure that

the period and method of depreciation and amortization are consistent with the expected pattern of

economic benefits from items of property and equipment.

When property and equipment are retired or otherwise disposed of, the cost and the related

accumulated depreciation and amortization are removed from the accounts and any resulting gain or

loss is credited to or charged against current operations.

Impairment of Non-financial Assets

The Foundation assesses at each reporting date whether there is an indication that an asset may be

impaired. If any such indication exists, or when annual impairment testing for an asset is required,

the Foundation makes an estimate of the asset’s recoverable amount. An asset’s recoverable

amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value

in use and is determined for an individual asset, unless the asset does not generate cash inflows

that are largely independent of those from other assets or groups of assets. Where the

carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and

is written down to its recoverable amount. In assessing value in use, the estimated future cash

flows are discounted to their present value using a pre-tax discount rate that reflects current market

assessments of the time value of money and the risks specific to the asset. Impairment losses of

continuing operations are recognized in the statement of activities in those expense categories

consistent with the function of the impaired asset.

An assessment is made at each reporting date as to whether there is any indication that previously

recognized impairment losses may no longer exist or may have decreased. If such indication exists,

the recoverable amount is estimated. A previously recognized impairment loss is reversed only if

there has been a change in the estimates used to determine the asset’s recoverable amount since

the last impairment loss was recognized. If that is the case the carrying amount of the asset

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is increased to its recoverable amount. That increased amount cannot exceed the carrying amount

that would have been determined, net of depreciation, had no impairment loss been recognized for

the asset in prior years. Such reversal is recognized in the statement of activities unless the asset is

carried at revalued amount, in which case, the reversal is treated as a revaluation increase. After

such reversal the depreciation charge is adjusted in future periods to allocate the asset’s revised

carrying amount, less any residual value, on a systematic basis over its remaining useful life.

ProvisionsProvisions are recognized when the Foundation has a present obligation (legal or constructive) as aresult of a past event, it is probable (i.e., more likely than not) that an outflow of resourcesembodying economic benefits will be required to settle the obligation and a reliable estimate can bemade of the amount of the obligation. Provisions, if any, are reviewed at each reporting date andadjusted to reflect the current best estimate.

Restricted Net Assets

The Foundation reports gifts of cash and other assets as restricted support if they are received with

donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is,

when a stipulated time restriction ends or purpose restriction is accomplished, temporarily restricted

net assets are reclassified to unrestricted net assets and reported in the statement of activities as

net assets released from restrictions.

Gifts consisting of long-lived assets with explicit restrictions that specify how the assets are to be

used and gifts of cash or other assets that must be used to acquire long-lived assets are reported as

restricted support.

Revenue Recognition

Revenue is recognized on the following bases:

Public SupportPublic support revenue represents contributions received by the Foundation. Unconditional

contributions received, including unconditional promises to give cash or other assets, are recognized

as revenue in the period received at their fair value. Conditional promises to give are recognized

when the conditions are met. Assets received subject to conditions are accounted for as refundable

advances until the conditions are met.

Investment Income

Investment income represents interest income earned on AFS financial assets. Income is recognized

on a time proportion basis computed on the outstanding principal using the applicable rate.

ProjectProject revenue account represents income generated from the sale of books and catalogues, paper

products, and other shop items such as home decors and giftwares, and desk accessories. The

account consists of revenues arising from space rentals from various events held at the Ayala

Museum and Filipinas Heritage Library.

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Museum Collections

Artworks, ethnographic, archeological and rare book collections purchased for or donated to the

museum are not included in the accompanying financial statements. Gifts of cash or property used

for the purchase of the museum collections are classified as public support revenue when

acquisitions are made in accordance with the terms of the gifts. The cost of objects purchased or

donated is reported as a project expense.

Pension CostPension cost is actuarially determined using the projected unit credit method. This method reflectsservices rendered by employees up to the date of valuation and incorporates assumptionsconcerning employees’ projected salaries. Actuarial valuations are conducted with sufficientregularity, with option to accelerate when significant changes to underlying assumptions occur.Pension cost includes current service cost, interest cost, expected return on any plan assets, actuarialgains and losses and the effect of any curtailment or settlement.

The liability recognized in the statement of financial position in respect of the defined benefit

pension plan is the present value of the defined benefit obligation at reporting date. The defined

benefit obligation is calculated annually by independent actuary using the projected unit credit

method. The present value of the defined benefit obligation is determined by discounting the

estimated future cash outflows using risk-free interest rates of government bonds that have terms

to maturity approximating the terms of the related pension liability.

Actuarial gains and losses is recognized as income or expense if the cumulative unrecognized

actuarial gains and losses at the end of the previous reporting period exceeded the greater of 10% of

the present value of defined benefit obligation or 10% of the fair value of plan assets. These gains

and losses are recognized over the expected average remaining working lives of the employees

participating in the plans.

LeasesLeases where the lessor retains substantially all the risks and benefits of ownership of the asset areclassified as operating leases. Operating lease payments are recognized as an expense in thestatement of activities on a straight-line basis.

Foreign Currency TransactionsTransactions denominated in foreign currencies are recorded using the exchange rate at the date ofthe transactions. Outstanding foreign currency-denominated monetary assets and liabilities atyear-end are translated to Philippine peso at prevailing Philippine Dealing System rate at reportingdates. Exchange gains or losses arising from foreign currency transactions are credited to or chargedagainst changes in net assets.

Contingencies

Contingent liabilities are not recognized in the financial statements. These are disclosed unless the

possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are

not recognized in the financial statements but disclosed when an inflow of economic benefits is

probable.

Subsequent Events

Post year-end events that provide additional information about the Foundation’s position at the

statement of financial position date (adjusting events) are reflected in the financial statements. Post

year-end events that are not adjusting events are disclosed in the notes to financial statements

when material.

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3. Management’s Accounting Judgments and Use of Estimates

The preparation of the accompanying financial statements in conformity with PFRS requires

management to make estimates and assumptions that affect the amounts reported in the financial

statements and accompanying notes. The estimates and assumptions used in the accompanying

financial statements are based upon management’s evaluation of relevant facts and circumstances

as of the date of the financial statements. Actual results could differ from such estimates.

Judgments

In the process of applying the Foundation’s accounting policies, management has made the following

judgments, apart from those involving estimations, which have the most significant effect on the

amounts recognized in the financial statements:

Operating lease commitments - Foundation as LesseeThe Foundation has entered into commercial property leases. All significant risks and rewards of

ownership of the leased property remain to the lessor since the leased property, together with the

buildings thereon and all permanent fixtures, will be returned to the lessor upon termination of the

lease.

Impairment of AFS financial assets

The Foundation treats AFS financial assets as impaired when there has been a significant or

prolonged decline in the fair value below its cost or where other objective evidence of impairment

exists. The determination of what is ‘significant’ or ‘prolonged’ requires judgment. The Foundation

treats ‘significant’ generally as 20% or more and ‘prolonged’ as greater than 6 months for quoted

equity securities. In addition, the Foundation evaluates other factors, including normal volatility in

share price for quoted equities and the future cash flows and the discount factors for unquoted

equities.

Management’s Use of Estimates

The key assumptions concerning the future and other key sources of estimation uncertainty at the

balance sheet date that have a significant impact to the carrying amounts of assets and liabilities are

discussed below:

Estimating allowance for impairment lossesThe Foundation maintains allowance for impairment losses based on the result of the individual and

collective assessment under PAS 39. Under the individual assessment, the Foundation is required to

obtain the present value of estimated cash flows using the receivable’s original effective interest

rate. Impairment loss is determined as the difference between the receivables’ carrying balance and

the computed present value. The collective assessment would require the Foundation to group its

receivables based on the credit risk characteristics (industry, customer type, customer location, past-

due status and term) of the customers. Impairment loss is then determined based on historical loss

experience of the receivables grouped per credit risk profile. Historical loss experience is adjusted on

the basis of current observable data to reflect the effects of current conditions that did not affect the

period on which the historical loss experience is based and to remove the effects of conditions in the

historical period that do not exist currently. The methodology and assumptions used for the

individual and collective assessments are based on management's judgment and estimate.

Therefore, the amount and timing of recorded expense for any period would differ depending on the

judgments and estimates made for the year. The carrying values of receivables amounted to P=25.57

million and P=33.15 million as of December 31, 2009 and 2008, respectively (see Note 5).

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Estimating useful lives of property and equipment

The Foundation estimates the useful lives of its property and equipment based on the period over

which these assets are expected to be available for use. The estimated useful lives of property and

equipment are reviewed at least annually and are updated if expectations differ from previous

estimates due to physical wear and tear and technical or commercial obsolescence on the use of

these assets. It is possible that future results of operations could be materially affected by changes

in estimates brought about by changes in factors mentioned above. As of December 31, 2009 and

2008, the carrying values of property and equipment amounted to P=173.37 million and

P=183.52 million, respectively (see Note 7).

Evaluation of asset impairmentThe Foundation reviews property and equipment and other noncurrent assets for impairment. This

includes considering certain indications of impairment such as significant changes in asset usage,

significant decline in assets’ market value, obsolescence or physical damage of an asset, significant

underperformance relative to expected historical or projected future operating results and significant

negative industry or economic trends.

As described in the accounting policy, the Foundation estimates the recoverable amount as thehigher of the net selling price and value in use. In determining the present value of estimated futurecash flows expected to be generated from the continued use of the assets, the Foundation isrequired to make estimates and assumptions that may affect property and equipment and othernoncurrent assets. The Foundation believes that the carrying amounts of its assets approximate therecoverable amounts and, as such, no impairment loss was recognized for the years ended December31, 2009 and 2008.

Estimating pension obligation and other retirement benefitsThe determination of the obligation and cost of pension and other retirement benefits is dependenton the selection of certain assumptions used by actuaries in calculating such amounts. Thoseassumptions are described in Note 10 and include, among others, discount rates and salary increaserates. Actual results that differ from assumptions are accumulated and amortized over futureperiods and therefore, generally affect the recognized expense and recorded obligation in such futureperiods. While the Foundation believes that the assumptions are reasonable and appropriate,significant differences in the actual experience or significant changes in the assumptions maymaterially affect the pension and other retirement obligations. Net pension liability as of December31, 2009 and 2008 are P=2.19 million and P=2.47 million, respectively(see Note 10).

Fair value of financial instruments

Where the fair values of financial assets and financial liabilities recorded in the statement of financial

position cannot be derived from active markets, they are determined using internal valuation

techniques using generally accepted market valuation models. The inputs to these models are taken

from observable markets where possible, but where this is not feasible, estimates are used in

establishing fair values. These estimates may include considerations of liquidity, volatility, and

correlation. See Note 12 for the related balances.

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4. Cash and Cash Equivalents

This account consists of:

2009 2008

Cash on hand and in banks PP=16,677,232 P=23,247,591

Cash equivalents 228,750,000 33,700,786

P=45,427,232 P=56,948,377

Cash in banks earn interests at the respective bank deposit rates. Cash equivalents are made for

varying periods of up to three months depending on the immediate cash requirements of the

Foundation and earn interests at the respective short-term investment rates.

5. Receivables

This account consists of the following:

2009 2008

Trade

Services PP=6,685,599 P=8,487,763

Products 44,205,345 2,379,356

Advances 77,869,336 4,434,860

Accrued interest receivable 44,435,548 300,451

Advances to officers and employees 22,151,197 1,897,576

Others 55,883,373 21,307,810

31,230,398 38,807,816

Less allowance for impairment losses 55,661,601 5,661,601

P=25,568,797 P=33,146,215

Trade receivables are collectibles from various entities arising from their availment of program

services provided by the Foundation and are collectible within one year.

Movements in the allowance for impairment losses are as follows:

2009 2008

Balance at January 1 PP=5,661,601 P=6,595,866

Provisions during the period (Note 11) –– 226,008

Reversals –– (1,160,273)

Balance at December 31 PP=5,661,601 P=5,661,601

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6. Other Current Assets


2009 2008

Deposits to suppliers PP=2,713,179 P=1,863,257

Input tax 11,234,150 2,206,452

Prepaid expenses 3311,018 285,507

P=4,258,347 P=4,355,216

7. Property and Equipment

The rollforward analysis of this account follows:

2009

Land

Leasehold

Improvements

Office

Furniture and

Equipment

Transportation

Equipment Total

Cost

At January 1 PP=93,717,200 P=69,922,337 P=72,532,050 P=2,626,873 P=238,798,460

Additions 7736,875 1,029,434 2,772,695 – 4,539,004

Disposals –– – 1,910,953 – 1,910,953

At December 31 994,454,075 70,951,771 73,393,792 2,626,873 241,426,511

Accumulated Depreciation

and Amortization

At January 1 –– 21,098,675 31,965,493 2,216,123 55,280,291

Depreciation and

amortization –– 2,839,135 11,691,955 159,000 14,690,090

Disposals –– – 1,910,953 – 1,910,953

At December 31 –– 23,937,810 41,746,495 2,375,123 68,059,428

Net Book Value at

December 31 P=94,454,075 P=47,013,961 P=31,647,297 P=251,750 P=173,367,083

2008

Land

LeaseholdImprovements

OfficeFurniture and

EquipmentTransportation

Equipment Total

Cost

At January 1 P=93,858,560 P=89,972,594 P=29,695,118 P=2,626,873 P=216,153,145

Additions – 14,493,919 8,292,756 – 22,786,675

Transfers – (34,544,176) 34,544,176 – –

Disposals (141,360) – – – (141,360)

At December 31 93,717,200 69,922,337 72,532,050 2,626,873 238,798,460

Accumulated Depreciation and Amortization

At January 1 – 18,356,407 22,893,704 2,057,124 43,307,235

Depreciation and

amortization – 2,742,268 9,071,789 158,999 11,973,056

At December 31 – 21,098,675 31,965,493 2,216,123 55,280,291

Net Book Value at

December 31 P=93,717,200 P=48,823,662 P=40,566,557 P=410,750 P=183,518,169

Depreciation and amortization charged against unrestricted net assets amounted to P=14.69 millionand P=11.97 million in 2009 and 2008, respectively.

Land amounting to P=92.65 million, which was donated in 2003, is subject to a leasehold right existingthereon with a third party.

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8. Available-for-sale Financial Assets

This account consists of investments in:

2009 2008

Common trust fund PP=595,487,042 P=500,535,329

Shares of stock

Quoted securities 2296,706,190 105,360,814

Unquoted securities 22,293,979 2,347,416

P=894,487,211 P=608,243,559

AFS financial assets consist of shares in various listed and unlisted companies held under a trustfund are carried at market value and cost, respectively.

The rollforward of unrealized losses on AFS financial assets are as follows:

2009 2008

Balance at beginning of year ((P=94,430,053) P=41,858,651

Unrealized gains (losses) recognized directly in

net assets 992,612,454 (136,288,704)

Balance at end of year ((P=1,817,599) (P=94,430,053)

9. Accounts and Other Payables


2009 2008

Trade PP=64,448,671 P=32,439,158

Accrued expenses 228,983,231 26,001,954

Advances 44,687,902 4,357,205

Others 8841,144 941,356

P=98,960,948 P=63,739,673

Accounts payable and accrued expenses include payables to consignors and suppliers that are

noninterest-bearing and are normally settled on 30 to 60 day terms.

10. Employee Benefits

The Foundation has funded, noncontributory defined benefit retirement plan covering substantially

all of its regular employees. The benefits are generally based on defined contribution formula with

minimum lump-sum guarantee of 1.5 months’ basic salary per year of service.

The Foundation’s annual contributions to the plan consist principally of payments covering the

current service cost for the year and the required funding relative to the guaranteed minimum

benefits as applicable.

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The components of pension expense included in employee benefits and welfare under “General and

administrative expenses” in the statements of activities are as follows (see Note 11):

2009 2008

Current service cost PP=2,601,813 P=3,553,764

Interest cost on benefit obligation 11,878,990 1,514,271

Expected return on plan assets ((1,096,419) (1,252,545)

Total pension expense PP=3,384,384 P=3,815,490

The funded status and amounts recognized under pension liability in the statements of financial

position for the pension plan as of December 31, 2009 and 2008 are as follows:

2009 2008

Benefit obligations PP=27,090,768 P=20,877,668

Plan assets ((20,881,334) (16,867,990)

6,209,434 4,009,678

Unrecognized actuarial losses ((4,020,775) (1,538,347)

Liability recognized in the statements of

financial position P=2,188,659 P=2,471,331

Changes in the present value of the defined benefit obligation are as follows:

2009 2008


Current service cost 22,601,813 3,553,764

Interest cost on benefit obligation 11,878,990 1,514,271

Benefits paid ((963,804) (3,272,317)

Actuarial loss (gain) 22,696,101 (2,550,489)


Changes in the fair value of plan assets are as follows:

2009 2008


Expected return on plan assets 11,096,419 1,252,545

Contributions 33,667,056 3,272,317

Benefits paid ((963,804) (3,272,317)

Actuarial gain (loss) 2213,673 (2,278,054)


The Foundation expects to make contributions of P=4.18 million to its retirement fund in 2010.

The components of the Foundation’s plan assets consist mainly of investments in government

securities. The allocations of the fair value of plan assets follow:

2009 2008

Fixed Income 883.43% 100%

Equities 116.57% –

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The assumptions used to determine pension benefits for the Foundation for the years ended

December 31, 2009 and 2008 are as follows:

2009 2008

Discount rate 88.25% 9.0%

Salary increase rate 77.0% 7.0%

Expected rate of return on plan assets 66.5% 7.0%

Amounts for the current and the previous periods follow:

2009 2008 2007 2006 2005

Benefit obligation PP=27,090,768 P=20,877,668 P=17,893,499 P=20,728,153 P=17,612,029

Plan assets ((20,881,334) (16,867,990) (21,632,439) (17,612,029) (20,728,153)

Deficit (surplus) PP=6,209,434 P=4,009,678 (P=3,738,940) P=3,116,124 (P=3,116,124)

Experience adjustments on plan assets and obligation are as follows:

2009 2008 2007 2006

Gain (loss) on experience

adjustments on plan

liabilities PP=5,013,633 (P=2,618,367) (P=156,553) P=1,551,875

Gain (loss) on experience

adjustments on plan

assets 2213,673 (2,278,054) (4,285,625) 1,199,328

Compensation of key management personnel by benefit type (included in the “Salaries and benefits”

account) in the Foundation expenses (see Note 11) follows:

2009 2008

Short term employee benefits PP=5,496,185 P=5,242,757

Post-employment benefits 5532,065 477,561

P=6,028,250 P=5,720,318

11. Net Assets

Permanently restricted net assets are those assets that the donor stipulates must be maintained by

the Foundation in perpetuity. Permanently restricted net assets increase when Foundation

receives contributions for which donor-imposed restrictions limiting the Foundation’s use of an

asset or its economic benefits neither expire with the passage of time nor can be removed by the

Foundation’s meeting certain requirements. Permanently restricted net assets generally come from:

(1) contributions, with donor-imposed permanent restrictions; (2) increase or decrease in existing

assets that are subject to permanent restrictions by donor or by law (such as unrealized gains,

interest income); and (3) reclassification from another net asset class as a result of donor stipulation

or by law.

Temporarily restricted net assets refer to those net assets whose use by the Foundation is limited by

donors to later periods of time or after specified dates or specified purposes.

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Unrestricted net assets are those net assets that are neither temporarily restricted nor permanently

restricted. It includes all net assets with uses not restricted by donors, by Board of Trustees or by

law.

Net assets were released from donor restrictions by incurring expenses satisfying the restricted

purposes or by occurrence of other events specified by donors.

Details of the Foundation’s net assets as of December 31, 2009 and 2008 follow:

Details of the Foundation’s expenses as of December 31, 2009 and 2008 follow:

Project expenses

2009 2008

Unrestricted P=136,707,864 P=135,368,659

Temporarily restricted

Education programs 37,980,136 28,728,748

Entrepreneurship programs 6,504,784 7,561,364

Environment & sustainability programs 14,596,146 11,083,180

Programs for community development 30,875,060 22,428,946

Plant, property and equipment 173,367,083 183,518,169

Support to administrative units 37,555,448 12,591,410

Any activities of the organization subject to

donor approval 97,747,599 –

398,626,256 265,911,817

Permanently restricted

Investment in perpetuity, the income of

which is expendable to support:

Education programs 153,050,000 153,050,000

Endowment requiring income to be added

to original gift to build up the fund 3369,100,995 372,947,763

522,150,995 525,997,763

Unrealized losses on AFS financial assets (1,817,599) (94,430,053)

P=1,055,667,516 P=832,848,186

2009 2008

Project implementation

Education P=72,977,979 P=75,578,778

Special projects 337,335,831 95,418,584

Entrepreneurship 33,463,806 11,023,687

Environment 5593,941 828,586

Project management

Salaries and wages (see Note 10) 330,836,906 30,370,583

Monitoring and administrative 338,759,722 32,084,751

Employee benefits and welfare 99,979,965 9,342,446

Building overhead 224,383,039 26,181,336

P=218,331,189 P=280,828,751

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General and administrative expenses

2009 2008Salaries and wages (see Note 10) PP=10,058,947 P=10,376,609Premises, utilities and other equipment-relatedcost

4,730,806 5,626,828

Advocacy and public information services 9936,370 1,091,263Employee benefits and welfare (see Note 10) 33,401,415 3,818,168Professional and service fees 11,223,472 1,173,725Taxes and licenses 8897,427 155,980Communication and postage 6669,428 722,464Office supplies 6611,841 707,482Meetings and conferences 2289,011 255,066Transportation and travel 1197,364 243,169Membership dues and fees 1194,054 156,923Provisions for impairment losses –– 226,008Others 5597,098 768,101

P=23,807,233 P=25,321,786

Capital managementThe primary objectives of the Foundation’s capital management policies are to devote its funds to

charitable projects, scholarship grants and cultural activities, to afford the financial flexibility to

support its operations and to maximize the funds available.

The Foundation’s source of capital is its total net assets, which is composed of unrestricted,

temporarily restricted and permanently restricted net assets, less net unrealized losses on AFS

financial assets.

2009 2008

Net Assets

Unrestricted P=136,707,864 P=135,368,659

Temporarily restricted 398,626,256 265,911,817

Permanently restricted 522,150,995 525,997,763

Net unrealized losses on AFS

financial assets (see Note 8) (1,817,599) (94,430,053)

Total Net Assets P=1,055,667,516 P=832,848,186

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12. FFinancial Instruments

Fair value information

The table below set forth the carrying values and estimated fair values of the Foundation’s financial

assets and liabilities as of December 31, 2009 and 2008:

2009 2008

Carrying Value Fair Value Carrying Value Fair Value

Financial Assets


Cash and cash equivalents (see Note 4) PP=45,427,232 P=45,427,232 P=56,948,377 P=56,948,377

Receivables (see Note 5)

Trade 110,890,944 10,890,944 10,867,119 10,867,119

Advances 77,869,336 7,869,336 4,434,860 4,434,860

Accrued interest receivable 44,435,548 4,435,548 300,451 300,451

Advances to officers and employees 22,151,197 2,151,197 1,897,576 1,897,576

Others 55,883,373 5,883,373 21,307,810 21,307,810

Total loans and receivables 776,657,630 76,657,630 95,756,193 95,756,193

AFS financial assets (see Note 8)

Common trust fund PP=595,487,042 P=595,487,042 P=500,535,329 P=500,535,329

Shares of stock

Quoted securities 2296,706,190 296,706,190 105,360,814 105,360,814

Unquoted securities 22,293,979 2,293,979 2,347,416 2,347,416

Total AFS financial assets 8894,487,211 894,487,211 608,243,559 608,243,559

Total financial assets PP=971,144,841 P=971,144,841 P=703,999,752 P=703,999,752

Other financial liabilities

Accounts and other payables (see Note 9)

Trade PP=64,448,671 P=64,448,671 P=32,439,158 P=32,439,158

Accrued expenses 228,983,231 28,983,231 26,001,954 26,001,954

Advances 44,687,902 4,687,902 4,357,205 4,357,205

Others 8841,144 841,144 941,356 941,356

Total other financial liabilities PP=98,960,948 P=98,960,948 P=63,739,673 P=63,739,673

The methods and assumptions used by the Foundation in estimating the fair value of each class of

financial instruments are as follows:

Loans and receivables and other financial liabilities - Carrying amounts approximate fair values due to

the relative short-term maturities of these investments and liabilities.

AFS quoted financial assets - Fair values are based on quoted prices published in markets.

AFS unquoted financial assets – Fair values are based on estimates of future cash flows and the

discount rates necessary for the unquoted equities.

- 23 -

Fair Value HierarchyAs at December 31, 2009, the Foundation held the following financial instruments measured at fairvalue:

The Foundation uses the following hierarchy for determining and disclosing the fair value of thefinancial instruments by valuation technique:

Level 1: quoted (unadjusted prices) in active markets for identical assets and liabilities

Level 2: other techniques for which all inputs which have a significant effect on the recorded fairvalue are observable, either directly or indirectly

Level 3: techniques which use inputs which have a significant effect on the recorded fair valuethat are not based on observable market data

Assets measured at fair value

Level 1 Level 2 Level 3

Fair Value as

of December 31,

2009

AFS financial assets (Note 8)

Common trust fund PP=595,487,042 P=– P=– PP=595,487,042

Shares of stock

Quoted securities 2296,706,190 – – 2296,706,190

Unquoted securities – 22,293,979 – 22,293,979

Total AFS financial assets P=892,193,232 P=22,293,979 P=– PP=894,487,211

Financial Risk Management Objectives and Policies

The Foundation has various financial instruments such as cash and cash equivalents, receivables,

AFS financial assets, accounts and other payables which arise directly from its operations.

The main purpose of the Foundation’s financial instruments is to fund its operational and capital

expenditures. The main risks arising from the use of financial instruments are liquidity risk, credit

risk and foreign exchange risk.

The Foundation’s risk management policies are summarized below:

Liquidity risk

The Foundation maintains a level of cash and cash equivalents deemed sufficient to finance

operations. As part of its liquidity risk management, the Foundation regularly evaluates its projected

and actual cash flows. It also continuously assesses conditions in the financial markets for

opportunities to pursue fund-raising activities. Fund-raising activities may include investments in

quoted and unquoted securities.

As of December 31, 2009 and 2008 the carrying amounts of accounts and other payables will be

settled within one year.

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The following table shows the maturity profile of the Foundation’s financial assets and liabilitiesbased on contractual undiscounted payments:

2009

Within 1 Year 1-5 years More than 5

years

Total Gross

Financial Assets


Cash and cash equivalents (see Note 4) PP=45,427,232 P=– P=– P=45,427,232


Trade 110,890,944 – – 10,890,944

Advances 77,869,336 – – 7,869,336

Accrued interest receivable 44,435,548 – – 4,435,548

Advances to officers and employees 22,151,197 – – 2,151,197

Others 55,883,373 – – 5,883,373

Total loans and receivables 776,657,630 – – 76,657,630


Common trust fund –– 330,698,179 140,802,124 471,500,303

Total financial assets PP=76,657,630 330,698,179 140,802,124 548,157,933



Trade PP=64,448,671 P=– P=– P=64,448,671

Accrued expenses 228,983,231 – – 28,983,231

Advances 44,687,902 – – 4,687,902

Others 8841,144 – – 841,144

Total other financial liabilities PP=98,960,948 P=– P=– P=98,960,948

2008

Within 1 Year 1-5 years More than 5

years

Total Gross

Financial Assets


Cash and cash equivalents (see Note 4) P=56,948,377 P=– P=– P=56,948,377


Trade 10,867,119 – – 10,867,119

Advances 4,434,860 – – 4,434,860

Accrued interest receivable 300,451 – – 300,451

Advances to officers and employees 1,897,576 – – 1,897,576

Others 21,307,810 – – 21,307,810

Total loans and receivables 95,756,193 – – 95,756,193


Common trust fund 2,121,222 167,320,461 157,442,195 326,883,878

Total financial assets P=97,877,415 P=167,320,461 P=157,442,195 P=422,640,071



Trade P=32,439,158 P=– P=– P=32,439,158

Accrued expenses 26,001,954 – – 26,001,954

Advances 4,357,205 – – 4,357,205

Others 941,356 – – 941,356

Total other financial liabilities P=63,739,673 P=– P=– P=63,739,673

- 25 -

Credit riskThe Foundation’s holding of cash and cash equivalents exposes the Foundation to credit risk of the

counterparty. Credit risk management involves dealing only with institutions for which credit limits

have been established. The treasury policy sets credit limits for each counterparty. Given the

Foundation’s diverse base of counterparties, it is not exposed to large concentrations of credit risk.

The table below shows the maximum exposure to credit risk for the components of the statements

of financial position.

2009 2008

Cash and cash equivalents (see Note 4) PP=45,427,232 P=56,948,377


Trade 110,890,944 10,867,119

Advances 77,869,336 4,434,860

Accrued interest receivable 44,435,548 300,451

Advances to officers and employees 22,151,197 1,897,576

Others 55,883,373 21,307,810

AFS financial assets

Common trust fund 5595,487,042 500,535,329

Shares of stock

Quoted securities 2296,706,190 105,360,814

Unquoted securities 22,293,979 2,347,416

P=971,144,841 P=703,999,752

Market Risk

The Foundation’s exposure to the risk for change in market value relates primarily to the

Foundation’s AFS financial assets. The Foundation’s AFS financial assets are managed by a trustee

bank.

Price Risk

The Foundation’s price risk exposure relates to its AFS securities where values will fluctuate as a

result of changes in market prices.

Such investment securities are subject to price risk due to changes in market values arising from

factors specific to individual instruments or their issuers or factors affecting all instruments traded

in the market.

The following table demonstrates the sensitivity to a reasonably possible change in the market

prices, with all variables held constant, of the Foundation’s equity on December 31, 2009 and

December 31, 2008.

Increase

(decrease)

Effect on

net assets

2009 5% P=44,724,361

(5%) (P=44,724,361)

Increase

(decrease)

Effect on

net assets

2008 5% P=30,412,178

(5%) (P=30,412,178)

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6

- 27 -

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- 28 -

20

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56

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P=6

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5,6

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P=2

,00

1,2

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P=2

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3,7

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92

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1,6

01

P=7

03

,99

9,7

52

- 29 -

The credit quality of the financial assets was determined as follows:

Cash and cash equivalents - based on the nature of the counterparty and the Foundation’s internal

rating system.

Receivables - high grade pertains to receivables with no default in payment; medium grade pertains

to receivables with up to 3 defaults in payment; and low grade pertains to receivables with more

than 3 defaults in payment.

AFS financial assets - the quoted and unquoted financial assets are unrated.

Foreign exchange riskThe Foundation’s foreign exchange risk results primarily from movements of the Philippine Peso

against the United States Dollar.

The Foundation’s foreign currency-denominated financial instruments are included in cash and cash

equivalents amounting to US$0.12 million in 2009 and US$0.19 million in 2008. The Philippine peso

values of these instruments amounted to P=5.37 million and P=8.90 million in 2009 and 2008,

respectively.

In translating the foreign currency-denominated monetary assets into peso amounts, the exchange

rate used was P=46.20:$1 and P=47.52:$1, based on the Philippine Peso - U.S. dollar exchange rate as of

December 31, 2009 and 2008, respectively.

The following table demonstrates the sensitivity to a reasonably possible change in the US dollar

rate, with all variables held constant, of the Foundation’s net assets (due to changes in the fair value

of monetary assets) as of December 31, 2009 and 2008.

US$ depreciates

(appreciates)

Effect on

Net assets

2009 P=1.0 P=116,327

(P=1.0) (P=116,327)

US$ depreciates

(appreciates)

Effect on

Net assets

2008 P=1.0 P=187,245

(P=1.0) (P=187,245)

13. OOther Activities

Statements of revenue and expenses on the Foundation’s museum and library operations for theyears ended December 31, 2009 and 2008 are as follows:

2009 2008

Revenue PP=23,394,883 P=25,649,383

Expenses 228,027,240 30,636,125

Net loss PP=4,632,357 P=4,986,742

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ACKNOWLEDGEMENTS

106.7 Dream FM

A.A. Patawaran,

Manila Style Weekend

Abigail Nachura

Accenture

ACCM

Actimed Distribution

Adarna House, Inc.

Adults CD-ROM

Agnes Sayao

Ahadiat Joedawinata

Aileen Fernandez

Alabang Commercial Center

Alba Intl.

Albert Avellana, Avellana Art Gallery

Albert Balbuti

Balikbigay Foundation, Inc

Alberto Emilio Ramos

Alejandro Padilla y Zóbel

Alexander Cordero

Alfredo and Ellen Andres

Alice Guillermo, Business Mirror

Alicia Herrera, BusinessWorld

Alma Adajar

Alma Quinto

Alma Recinto

Alveo Land, Inc.

Alvin Benitez

Alvin Hilario

Alvin T.H. Tan

Alvin Uy

Amadea Unisa

Ambasssador and Mrs. Antonio Lagdameo Sr.

Ambassador Delia Meñez RosalAmbassador Delia Meñez Rosal

Ammbassador Francisco M. Ortigas III

Ambassador Kristie Kenney

Ambassador. A. Selverajah

Ambeth Ocampo

Amelou Benitez-Reyes

Amgen Foundation

AMIDEAST

Ammorsolo Retrospective Committee

Ana Ordunez

Anastacia Dy

Andee Raymundo

Andrea Pasion-Flores

AAngel Guerrero, Adobo Magazine

Anna Maria Harper

Anna Marie de la Vega

Anna Sobrepeña, Lifetstyle Asia

Anthony Trotter

AAnton San Diego, Philippine Tatler

Antonio Ortigas

Anvil Publishing, Inc.

A I dAon Insurance and

Reinsurance Brokers

Philippines, Inc.

Ayala Land, Inc.–Ayala Malls Group

Ayala Land, Inc.–External Affairs Division

Ayala Property Management Corp.

Ayala Security Force

Ayala Theaters Management, Inc.

Aye Ubaldo, Adobo Magazine

Azool, Inc.

Azrael Coladilla

Bahay Tsinoy

Bangko Sentral ng Pilipinas

Bank of the Philippine Islands

Bank of the Philippine Islands, Tagbilaran

Bao Toan Nguyen

Barangay Magallanes, Makati City

Barangay San Lorenzo, Makati City

Barangay Ususan, Taguig City

Barbara Mae Dacanay

Bathma Kaew-Ngok

BBDC Parents’ Committee

Bea Zobel Jr.

Beatriz Narvadez

Ben Chan

Bernadette Nacario

Bernadette Sia

Bernard de Vera

Bernard Karganilla, Malaya

Bettina Araneta-Aboitiz

Cathy

Bengzon

Cathy Santamaria

CB Richard Ellis

Philippines, Inc.

CDA–Bohol Provincial Office

Cecille Jimeno

Celeste Torrefranca

Cesar and Fe Rodriguez

Chaco Molina

Chari Elinzano

Chemical Industries of the Phils.

Chevron Geothermal Philippines

Chevron Philippines, Inc.

Chickie Custodio

Chimara Café

Ching Jorge

Chitz Ramirez

Christian Taguos

Christopher Sandoval

Cid Reyes

Cielo Banal-Formoso, Philippine Daily Inquirer

Cielo Canta

City Government of Alaminos

City Government of Bais

City Government of Cagayan de Oro

City Government of Davao

City Government of Muntinlupa

City Government of Panabo

City Government of Silay

City Government of Talisay, Negros Occidental

Clarence Basa

Clarissa Militante

Clarito “Areng” Poblete

Claudette Lam

Clean Cities Makati Coalition

Cleotilde How, MD

CLSA, Asia Pacific Market

Congressman and Mrs. Antonio Lagdameo Jr.

Constantino Tejero, Philippine Daily Inquirer

Continental Temic ITCA Group

Corazon Alvina

Corazon Bautista

Corullon Holdings, Inc.

Cris and Ella Quintanilla

Cristelle Laulagnet, Museum Volunteers of the Philippines

Cristine Mojica

Crown Plastic Products, Inc.

Cultural Center of the Philippines

Cynthia Luz Rivera

Cynthia Valencia

Daniel and Petty Johannot

Danilo Songco

Araceli

Habaradas

Araceli Salas

Ariel Camannong

Aristón Estrada

Arlene Mellante

Armin Sarthou Jr.

Armita Rufino

Arneil and Loverne Suratos

Arnulfo Batac

ArtPost Asia

Arvin Ello

Asia Society Philippines

Asian Civilisations Museum, Singapore

Association of Metro Manila Environment Officers

Ateneo Art Gallery

Ateneo de Davao University

Ateneo de Manila University, Ateneo Innovation Center

Atty. Benjamin Subido

Augusto Villalon, Philippine Daily Inquirer

Aurelio Montinola III

Avella Lipata

Ayala Archives

Ayala Center Association

Ayala Center Association–Traffic Group

Ayala Corporation

Ayala Group HR Council

Ayala Group Talent Network

Ayala Land, Inc.

Beveerly

Licos

Board for

Librarrians,

Professional

Regulation CCommission

Bonifacio Esttate Services

Corp.

Boy Garrovillo

BPI/MS Insurance

Brian Chan

Bryan EEclaveaBryan Eclavea

Budeths Casinto

Buklod Bahayan Homeowners’ Associationn

Bulldog Security

Butch Bonsol, Expat Communications

Cabugao Sons & Daughters Association of HHawaii

Camille Dacanay-Mendoza

Carla Galinato

Carla Quintanilla

Carlomar Daoana, Manila BBulletinn

Carlos A. Cordeiro Founddation

Carlos Cojuangco

Carmela Toribio

Carmelo Cabrera

Carmencita Acosta, Expat Commmuniccations

Carole Guamen

Carpel Trading

Catherine Liamzon

Dante

Ambrosio, PhD

Dave Henkel

Dave Miranda

David Dunleavy

David Scully

Dean Tina Colayco

Del Monte

Dennis Bahilango

Dennis Gonzalez

Department of Education

Department of Environment–

Environmental Management

Bureau

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Department of Science and Technology,

Office of Undersecretary for Science

and Technology Services

Department of Science and Technology–Bohol

Provincial Office

Department of Science and Technology–

PCIERD

Department of Tourism

Department of Trade and Industry,

Bohol Provincial Office


Main Office, Human Resources Department


Regional Office I


Regional Office IV

Diana Principe

Dinah Ventura, Daily Tribune

Dindo Fernando

Diwa Guinigundo

Diwata Paredes

Doreen Yu, Philippine Starweek

Dornet Venturanza

Ed Alba

Eddia Chua

Eddie Ortigas

Edelwina Kimmel

Edgar Chatto

Edgar Mariano

Edgardo Chua

Edgardo Nofuente

Editha de la Paz

Edna Olan

Eduardo Chua

Edwin Maraya

Efren Meneses

Eileen Legaspi-Ramirez

Elena Salazar

Eleonor Misa

Elija Holdings, Inc.

Ella Gonzales

Embassy of the Philippines in Mexico

Emerald Headway

Emi de Lara

Emirate Security

Emma Aquino

Emma Flores

Emme Consultancy, Inc.

Enchanted Kingdom

Enrique Romualdez, Malaya

Eres Printing Corp

Eric de Jesus

Eric Francia

Erickberth Calupe

Erico Aumentado

Ericsson Telecommunications, Inc.–

Philippines

Ernesto Mellante

Erwin Locsin

Estela Lomat

Estella Estolano

Ester Bermudez

Eulalia Calatin

Evelyn Diao, Village Voice

Evelyn Dimapilis

Evelyn Dy

Evelyn Lim Forbes

Fanny San Pedro

Fatima Reyes

FBC Holdings, Inc.

Fe de la Cruz

Felice Prudente Sta. Maria

Felipe de Leon Jr.

Fercat Holdings, Inc.

Ferdinand Alacar

Ferdinand Pantangco

Fernando and Catherine Zobel de Ayala

Filipino Heritage Festival, Inc.

Filipino Web Services

Florentino Hornedo, PhD

Fort Bonifacio Development Corp.

Francis Gubatana

Francis Oca

Francisco and Sofia Elizalde

Frank Thong

Fundación Santiago

Gary Dolina

Genevieve Joson

Georgina Padilla y Zóbel

Geostate Development Corp.

Gerard Ramos, Business Mirror

Giancarla Espinosa

Gifts and Graces Trade Fair Foundation

Gilmon Holdings, Inc.

Giovanni Macatangay

Give2Asia

Gkynda Bathan

Glean Claridades

Glen Danugrao

Globe Platinum

Globe Telecom, Inc.

Globe Telecom, Inc., Bohol Business Center

GMA Network, Inc.

Goldman Sachs & Co.

Greenbelt

Greenpeace

Gretchen Cojuangco

Grupong Diwan

Guillermo Luz

Hadrian Mendoza

Hal and Rochelle McArthur

Hanna Pacua

Hannah Cunanan

Heidi Tan

Helen Yu Rivera

Helena Z. Benitez

Hewlett-Packard Philippines Corporation

Himig Koenji Choir

HMR Envirocycle

Holy Family Choir

Holy Name University, OCAD

Honda Cars, Makati

Hubbert Christoper Dolor

Huism Tan

Hwee Min Low

Ian Carlo Jaucian

IBM Innovation Network

Igan D’Bayan, Philippine Star

Immaculate Conception Academy

Inah Bautista, Bluprint

Intelligraph Corp

International Finance Corp.

Ira Cruz

Irene Martel-Francisco, Philippine Tatler

Iris Cheng

Isa Susan

Isabel de Leon, Manila Bulletin

Isabel Padilla

Isah Red, Manila Standard Today

Isuzu Alabang

Isuzu Phils Corp.

Ivy Mendoza, Manila Bulletin

Jaferson Gelizon

Jaime (†) and Isabel Ongpin

Jaime and Beatriz Zobel de Ayala

Jaime Augusto and Lizzie Zobel de Ayala

Jaime de Guzman

James Seet

Jann Cacdac-Siena

Jan Liamson

Janet Mansfield

Janik Liepach

Japan Airlines

Jay Alonzo

Jeanette Lim

Jefffrey Valisno, BusinessWorld

Jehn Cerso

Jeny Pagkalinawan

Jessica Villanueva

Jessica Zafra

Jesssie Mendez Salon

Jesus and Maritess Pineda

Jewel Chuaunsu, Contemporary Art

PPhilippines

Jo Anne Salita

Jo Anne Villarosa

Joan Pasagui, Philippine Tatler

Joann Ruta

Joanne Gob

Joe Geraldo

Joel de Leon

Joel Uichico

Joey de Castro

John Armand Ong

John Forbes

John Orbeta

Joohn Valenzuela

Joolly Gutierrez

Jonn Pettyjohn

Jonathan Olazo

Jorge B. Vargas Museum and Filipiniana Research

Center

José Maria Treñas

Josefina Tuazon

Joselito and Ollie Campos

Joselito Sibayan

Joselyn Geneciran

Josemari Catubig

Joseph de Vera

Josephine Doctoro

Josephine Sestoso

Joyce Toh

JP Morgan Chase Bank, N.A.

Judith Juntilla, BusinessWorld Highlife

Judy Araneta-Roxas

Juliet Azanza

Jullie Lluch

Junie Lim

Junie Rodriguez

Karen Fassio

Karen Flores

Karina Cariaga

Karissa Aspillaga

Kate Villaseñor

Katherine Yulo

Kenson Kwok

Kontra-Gapi

Kwok Kian Chow

Lane Moving & Storage

Larry Ligunas

Laurent Lamasuta

Lawrence Tio

League of Corporate Foundations

Leonila Casanova

Leonore Torrefranca

Letty Sala

Lileng Wong

Lilia Sesperes

Lilia Tantoco

Linda Atayde

Lito Zulueta, Philippine Daily Inquirer

Little Candles

Lizette Cardenas

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Maricel Montero

Marino Sison

Mario and Mimi Que

Mark Daniel Dantes

Mark Escueta

Mark Gesite

Mark Valenzuela

Marlene Galeos

Martha Buckley

Martin Lopez

Martina Diokno

Mary Ann Pernia

Mary Grace Azurin

Maui Salang

Maureen Barreiro

May Lopez

May Pagsinohin

Maya Greenfield Thong

Meah Ang See

Melody Gocheco

Mercedes Lopez-Vargas

Mercedita Nolledo

Mermac, Inc.

Metro Manila Anti-Smoke Belching Association

Metropolitan Museum of Manila

Mia Borromeo, Philippine Tatler

Michael Koh

Michael Sta. Maria

Michael Tan, Philippine Daily Inquirer

Microsoft Corporation

Miguel Alba

Miguel Bernabe

Milagros del Rosario

Millet Mananquil, Philippine Star

Miriam College–Environmental

Studies Institute

MMLDC

Mona Lisa Sunio

Monique Villonco, Town and Country

Mr. and Mrs. Jose Manuel Lagdameo

Mr. and Mrs. Oca Villamiel

Mr. and Mrs. Ricardo Lagdameo

Municipal Government of Baclayon, Bohol

Municipal Government of Cawayan, Masbate

Municipal Government of Dimasalang, Masbate

Municipal Government of Esperanza, Masbate

Municipal Government of Milagros, Masbate

Municipal Government of Mobo, Masbate

Municipal Government of Mulanay, Quezon

Municipal Government of Palanas, Masbate

Municipal Social Welfare and Development–Silang, Cavite

Municipal Tourism Office Puerto GaleraMunicipal Tourism Office, Puerto Galera

Muntinlupa City Environmental Sanitation Center

Museo Pambata

Mylene Santos

Mylynn Maligaser

Narzalina Lim

Nathan Azarcon

National Book Development Board

National Commission for Culture

and the Arts

Office of Representative Jocelyn

Sy-Limkaichong (First District, Negros Oriental)

Oscar and Connie Lopez

Oscar and Mary Lou Hilado

Oscar Reyes

Pablo Capati

Pam Casim, Manila Bulletin

Pamantasan ng Lungsod ng Maynila–Brotherhood of Medical Scholars

Paolo Mangubat

Paolo Suapengco

Partnerships for Clean Air

Paseo de Magallanes Commercial Corp.

Paseo Gallery

Patricia Maningat

Patricia Uy

Patrick Flores

Patsy Zobel

Paulino and Hetty Que

Paulo Alcazaren, Bluprint

PC Tech, Inc.

Pennie de la Cruz, Sunday Inquirer

Magazine

Perfecto Domingo

Perry Mallari, Manila Times

Pete Cortes

R. S.

Mojica

Rachel Barawid,

Manila Bulletin

Rachy Cuna

Rafael Simpao Jr.

Ral Arrogante

Ramon Magsaysay Jr.

Ramon Opulencia

Ramon Rufino

Ramon Zialcita

Randall Young

Raul Manzano, Metro Society

Regina Co Seteng

Reinosa Holdings, Inc.

Reli de Veyra

Remedios Wingco

Rene Almendras

Rene and Anna Arellano

Rene Buenaventura

Rey Flestado

Ria Limjap, Homestyle Magazine

Rica Zamora

Ricardo Jacinto

Ricardo Nolasco, PhD

Richie Lerma

Ricky Francisco

Rina Duque-Mariano

Rivka Nagtalon

Robert Haley

Roberto Kanapi

Rodney Dofitas

Rolando Codes

Rolando Sison

Rome Jorge, Manila Times

Romeo Tabuena

Romulo and Patricia Olazo

Rosan Cruz

Rosario Cruz Lucero, PhD

Rosario Manalo

Rosario Mayor

Rosario Ventura

Rowena Subino

Rowena Wendy Lei

Roy Nudo

Rozzano Rufino B. Biazon

Ruben D.F. Defeo

Ruel Maranan

Sam Marcelo, BusinessWorld

San Fuente Holdings, Inc.

San Miguel Corporation

Sanjiv Vohra

Sari Ortiga

Seafood City Supermarket

National

Heritage

Board, Singapore

National Museum

of the Philippines

National Solid Waste

Management Commission

Neal Oshima

Nelfa Querubin

Nestor Jardin

Nikie Lingad

Nikos Dacanay

Nina Aquino

Nina Lim-Yuson

Nona Torres

Nonette Climaca

Noreen Santos

Norma Liongoren

North Triangle Depot Commercial Center

Office of Representative Candido Pancrudo Jr.

(First District, Bukidnon)

Office of Representative Exequiel Javier

(Lone District, Antique)

Office of Representative Glenn Chong

(Lone District, Biliran)

Office of Representative Henedina Abad

(Lone District Batanes)

Pete

Jimenez

Phhil

Ondaaatje

Philipp Lee

Philippinne Army

Livelihoodd Training

Philippine Baand of Mercy

Jinge Poolicarpio

Philippine Bussiness for the

Environnment

Philippine Green Building CouncilPhilippine Green Building CCouncil

Philippine High School for tthe Arts

Philippine Polytrader Plasttics, Inc.

Philippine Recyclers, Innc.

Philippine Women’s University

Phinma

Phyllis Zabalero

Pilipinas Shell Petroleum Corporatation

Pinggot Zulueta, Manila BBulletitin

Polystyrene Packaging Council of tthe PPhilippines

Prince of Peace Collegge

Provincial Government of Camigguin

Provincial Government of Davaao deel Norte

Provincial Government of Soutth Cootabato

Provincial Government of Surigao ddel Norte

Queena Lee-Chua, Philippine DDaily IInquirer

Quezon City Environmental Prootecttion and

Waste Management Divvision

Serge Rega

Service One

Shell companies in

the Philippines

Siegrid Anne Bangyay

Simeon Ventura Jr.,

Mabuhay Magazine

Singapore Art Museum

Sisters of Charity of St. Anne

Sisuk

Socorro Castro

Solid Waste Management

Association of the Philippines

Solid Waste Management

Office, Taguig City

Lope Bosaing

Lopez Memorial Museum

Lor Calma

Lor Calma Design, Inc.

Lourdes Baua

Ma. Celitas Jacob

Ma. Katrina Tioseco

Mac Valdezco

Mai Sangalang

Makati City Anti-Smoke Belching Unit

Makati City Department of Environmental Services

Makati Commercial Estate Association

Makati Environment Multi-Purpose Cooperative

Mangyan Mission

Manila Chamber Orchestra Foundation, Inc.

Manny Pangilinan

Mara Ciceron

hMarchem

Margarita Araneta-Holigores

Margarita Ilagan

Maria Josefina Ortigas-

Duarte

Marian Legarda

Maricar

Adamos

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Visayas Operations

4F Krizia Building

Gorordo Avenue, Lahug

Cebu City, Philippines

Tel/Fax (6332) 233 0824

Tel (6332) 412 2405


Mindanao Operations

2F CLIMBS Bldg., Tiano Pacana St.

Cagayan de Oro City, Philippines

Tel (638822) 729 497

Ayala Foundation USA

255 Shoreline Drive, Suite 428

Redwood City, CA 94065 USA

Tel (1 650) 598 3126

Fax (1 650) 508 8988

www.af-usa.org

Ayala Technology Business Incubator

Room 201, Tech Portal

University of the Philippines–AyalaLand

TechnoHub

Commonwealth Avenue, Diliman

Quezon City 1101 Philippines

Tel (632) 501 9817

Fax: (632) 441 1561

www.ayalatbi.org

Ayala Museum

Makati Avenue corner de la Rosa Street

Greenbelt Park, Makati City, Philippines

Tel (632) 757 7117 to 21

Fax (632) 757 2728

(632) 757 3588

www.ayalamuseum.org


Makati Avenue, Ayala Triangle

Makati City, Philippines

Tel (632) 892 1801

Fax (632) 892 1810

www.filipinaslibrary.org.ph

Directory


10F Ayala Wing, BPI Building

6768 Ayala Avenue corner Paseo de Roxas

Makati City, Philippines

Tel (632) 752 1101 to 02

Fax (632) 813 4487 to 88

www.ayalafoundation.org

Sonia Tejada

Starlog Manila, Inc.

Station Square East Commercial Corp.

Stephanie Asi, Daily Tribune

Stephanie Poserio

Steps Dance Studio

Susan Alonzo

Sydney de Claro

Sylvia Amorsolo-Lazo

Sylvie Maghirang

Tan Boon Hui

Tara F.T. Sering, Contemporary AArt

Philippines

Tarlac Catechetical School

Tay Chungtungco

Teresita Ang See

Teresita Cruz

Tessie Luz

Tessy San Juan Pettyjohn

Tetra Pak Philippines

The Crucible Gallery

Thelma San Juan, Philippine Daily Innquirer

Theodore Pe

Thomas Cheong

Tim and Cherry Daniels

Tina Fernandez

Toshiba Information Equipment Philipppines,

Inc.

Toyota Foundation Japan

Trend Microsystems, Inc.

Tricia Castro

Tricia Morente, HIPP

Trisha Aguilar

Trust International Paper Corp. (TIPCO)

Tugdaan Mangyan School

ULTREX Managers and Consultants, Inc

United Nations Population Fund for the Stannd

Up Take Action Campaign

United States Agency for International

Development

United States Embassy

United Way Worldwide / CITI Foundation

Universal Robina Corporation

University of the East Dental Health Team

Alumni Association

University of the Philippines Diliman

University of the Philippines Diliman

Information Office

University of the Philippines Diliman,

Office of the Chancellor

University of the Philippines,

Office of the President


Office of the Vice Chancellor for Research

and Development


Office of the Vice President for Development

UNTV Public Service Channel

USAID-Sustainable Energy Development Program

UWC-SEA

Valerie Prentice

Vangie Baga-Reyes, Philippine Daily Inquirer

Varichem Corporation

Vasquez & Co. LLP

Vic Lactaoen

Vicky Sumaria

Victoria Gamundoy

Victoria Garchitorena

Victoria Herrera

Victoria Padilla

Vipoo Srivilasa

Wanggo Gallaga, Metro Society

Wency Cruz

Wilfredo and Sherisa Nuesa

Wilma Zapata

Winnie Go

World Bank, Asia Pacific Incubation

Network

World Bank, infoDev Program

World Wide Fund for Nature

www.hadrianmendoza.com

XL Insurance Company Ltd.

Yael Buencamino

Yeng Carmona

Yeow Seng Cheah

YGARC Trading Services

YKL/Fujifilm

Yolanda Sevilla

88

The cover of the 2009 Ayala Foundation, Inc. 2009 Annual Report is

printed on FSC®-certified Mohawk Options 100 percent PC, which is

made of 100 percent process chlorine-free post-consumer recycled

fiber, with the balance comprised of elemental chlorine-free virgin

fiber. This paper is made carbon neutral with Mohawk’s production

processes by offsetting thermal manufacturing emissions with verified

emission reduction credits (VERs), and by purchasing enough Green-e

certified renewable energy certificates (RECs) to match 100 percent of

the electricity used in our operations. This paper is certified by Green

Seal.

The financial statements section of this report is printed on Econobond,

which is 100 percent recycled uncoated paper made from post-

consumer collected waste.

Ayala Foundation, Inc.Annual Report 2009

Production



Editorial and Art Direction

Maritoni Ortigas

Alex Gregorio

Paul de Guzman

Design, Layout, and Illustrations

Sergio Bumatay III

Photography

Erik Liongoren

Additional Portraiture

and Cover Photography

Wig Tysmans

Cover Concept and Design

K2 Interactive (Asia), Inc.

Our mission is to improve the

quality of life of the Filipino by

contributing to the eradication

of poverty in all its forms.

Mission

Our vision is to be a leading foundation

committed to national development by harnessing corporate social

responsibility toward:

• developing social technologies that provide

a better quality of life;

• facilitating access to knowledge and learning;

• instilling pride in being a Filipino.

VISION

AYALA FOUNDATION, INC.

10F Ayala Wing, BPI Building

6768 Ayala Avenue corner Paseo de Roxas

Makati City 1226 Philippines

www.ayalafoundation.org

shifting paradigms - ayala foundation

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