INVESTMENT PORTFOLIO

Strategic Business
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Majority-owned businesses that are highly independent and provide synergistic opportunities for the group. JGS continues to boost the potential of these businesses and generate reasonable returns from these investments.

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Universal Robina Corporation

In contrast to the optimism around the pandemic reopening in 2022, 2023 was a more demanding year. The economic landscape was challenging as countries faced elevated inflation rates and higher food prices, leading to muted consumer confidence. The commodity basket also showed mixed results, with some raw material prices remaining elevated while others tapering off from their highs hit in the last three (3) years. 

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Despite all these difficulties, URC demonstrated growth on the top and bottom lines, delivering on its commitment to expand margins. The company expanded its profitability through key pricing moves, product mix, and significant savings from our Fuel for Growth program. These initiatives allow us to continuously invest in the company, capitalizing on product innovation to maintain a strong portfolio of well-loved high-quality products, delighting Filipinos and the rest of the world with good food choices.

Irwin C. Lee

President and Chief Executive Officer
URC continues to invest in building its business

As URC maintains its momentum and carries on its path toward being a sustainable global enterprise, the company continues to reinvest back into its brands, expand capacities, and build capabilities across all its business units. URC has started work on developing key sites in Batangas and Cebu to improve operational efficiencies in its branded business. Design improvements have been incorporated to optimize operations, reduce production wastage, and lower energy and water consumption. Assets in Quezon and Batangas were also acquired to build capacity for our Commodities business further and expand our presence in other regions.

Sustainability remains a focus for URC

URC continues to make good progress in its commitment to improving its product portfolio with quality, healthy, and nutritious choices. In 2023, the total URC Wellness Score indicated that 100% of total products passed 1 URC Wellness Criterion, 99% passed 2 URC Wellness Criteria, and 86% passed 3 URC Wellness Criteria.

The company continuously seeks and implements initiatives to improve energy consumption and efficiency. Since 2019, URC has continued to invest in and roll out solar rooftop installations in the Philippines and across its facilities in ASEAN. In addition, URC uses biomass and biogas as alternative fuels for its boilers to generate steam used in some of its agro-industrial and commodities operations.

URC initiated the Juan Goal for Plastic Program to raise awareness about plastic waste recycling in communities and reduce the amount of waste sent to landfills. With the help of the Gokongwei Group and partnerships with Local Government Units (LGUs), communities, and Environment and Natural Resources Offices (ENROs), the company established over 49 collection hubs in more than 60 communities.

Cebu Air, Inc.

Cebu Pacific demonstrated a commendable performance in 2023, buoyed by the strong recovery in domestic travel demand and the reopening of most international markets. Key performance indicators approached 2019 levels, marking the airline's return to profitability.

Still, 2023 had its challenges. Like other airline operators, CEB was not exempt from global aviation industry issues related to supply chain disruptions, delays in new aircraft deliveries, and reliability issues associated with Pratt & Whitney engines. These led to capacity constraints and operational difficulties for the airline.

CEB enhanced its contingency plans to continue providing affordable, safe, and reliable flights. The airline invested in additional aircraft and engines to increase the spare capacity ratio and aligned network plans to consider more potential aircraft on the ground. Customer-first efforts were further improved, even surpassing the requirements outlined in the Air Passenger Bill of Rights.

Looking ahead, CEB is now taking initiatives to usher in its next expansion stage, underpinned by long-term prospects of the Philippine aviation sector, including its infrastructure developments to alleviate airport congestion and increase connectivity. The optimistic economic growth outlook for Southeast Asia positions the Philippines at the forefront, further supporting the airline's forward momentum.

With all these, I am glad to highlight how 2023 marks the year when CEB represents the largest ever commitment of any airline into the Philippine aviation industry, as it issued Request for Proposals (RFP) to both Airbus and Boeing for 100 to 150 narrowbody jets. This commitment aligns our shared vision with the government and private airport operators, who are collectively striving to provide a world-class air transport service to all passengers.

Together, let’s soar to greater heights and create lasting value for all.

Michael B. Szucs

Chief Executive Officer
Cebu Pacific propels through industry challenges to serve everyJuan

Entering 2023, Cebu Pacific had a positive outlook on its ability to fully restore services, contributing to our nation's post-pandemic recovery. In fact, the first quarter demonstrated incredible performance, with on-time performance or OTP improving month-on-month. However, the airline encountered industry challenges by March, including issues with the Pratt and Whitney engines, aircraft delivery delays, and supply chain disruptions. Consequently, our network suffered delays and unscheduled cancellations.

  • Enhanced spare aircraft capacity by increasing the spare capacity ratio, reinforcing operational flexibility. This includes securing brand-new and used aircraft, and doing damp leases or ACMI (Aircraft, Crew, Maintenance, and Insurance) for certain periods in 2024.
  • Reductions in flight schedules were implemented to account for long-term AOGs (Aircraft on Ground).
  • Strengthened customer communication and engagement through improved recovery options and policies, alongside reinforcing customer support teams on the ground and online. This involved activating a disruption management team, increasing the number of 24/7 live agents, and implementing non-expiring travel funds.

These strategic measures improved on-time performance (OTP), rebounding from a low of 56.8% in May to an average of 76.2% in Q4. Additionally, the net promoter score rose from its lowest point of -19 in June to an average of +30 in Q4, affirming CEB’s commitment to providing quality air travel to everyJuan.

Through these efforts, CEB flew over 140,000 flights and 20.8 million passengers, up 30% and 41% year on year, respectively. On average, its flights were 84% full, with the carrier mounting about 390 daily flights. Despite the challenges posed by fleet availability issues, CEB remained to have the largest network in the Philippines, flying to 60 destinations, though 108 routes and more than 2,700 weekly flights.

It also continued to lead the domestic front capturing 53% of the market following the increase in flight frequencies to popular local destinations, the resumption of routes such as Manila-Laoag, Iloilo-Puerto Princesa, and Iloilo-Cagayan. Similarly, the international footprint continued to broaden with flight resumptions to destinations such as Melbourne, Macau, and Shenzhen from Manila coupled with the restart of flights from Clark, increased flight frequencies from other non-Manila hubs, and launch of a Manila-Danang also contributed to this growth. 

Leading the sustainable path for Philippine aviation

Cebu Pacific solidified its position as a leader in sustainable aviation in the Philippines as it received the Gold rating from the Centre for Asia Pacific Aviation’s (CAPA) 2023 CAPA-Envest Global Airline Sustainability Benchmarking Report. CEB's performance in reducing carbon emissions, integrating sustainable aviation fuel (SAF), and transparently disclosing sustainability metrics earned the airline a spot among the top 19 carriers awarded the Gold rating. The distinction given through the report positioned CEB as the highest-rated airline for sustainability in the Philippines and one of the only two low-cost carriers (LCC) in Southeast Asia.

CEB was also recognized as the Most Sustainable Low-Cost Airline in the Philippines by the World Economic Magazine, a US-based publication that spotlights industry disruptors across the global financial marketplace.

In 2023, CEB marked several milestones in its sustainability journey. It received 18 new aircraft, including 15 New Engine Option (NEO) planes, consistently progressing towards its goal of an all-NEO fleet by 2028. Furthermore, the airline implemented fuel efficiency industry best practices and flight plan optimization initiatives resulting in 16.1 million kilograms of fuel savings and carbon emissions reduction of almost 51,000 tCO2e.

CEB also made strides in further integrating sustainable aviation fuel (SAF) in its operation. It partnered with Neste Corp. in 2023 to explore SAF supply for future operations. The airline partnered with Neste Corporation to explore SAF supply and purchase in Asia Pacific. Today, Cebu Pacific’s supply network already includes Shell Aviation, Itochu Corp., and Neste Corp. It also launched another inaugural SAF powered commercial flight in 2023, this time from Narita/Tokyo to Manila using 40% blended SAF. This added to the very first SAF flight launched by CEB in 2022 from Singapore to Manila. For delivery flights, CEB utilized SAF in nine (9) delivery flights in 2023 from Toulouse, Hamburg, and Tianjin to Manila.

Expanding beyond the decarbonization of its aircraft fleet, CEB made headways in its ongoing efforts to transition its ground operations to the use of electric, zero-emission vehicles and equipment. It welcomed two new electric buses into its airport shuttle fleet at the Ninoy Aquino International Airport (NAIA) as part of the airline’s comprehensive electric vehicle (EV) transition program, replacing conventional vehicles with electric zero-emission alternatives. In 2023, the Company also launched EV shuttles for CEB employees and conducted a demonstration run of electric baggage tractors at NAIA Terminals 3 and 4. 

Robinsons Land Corporation

2023 was a testament to our relentless pursuit of excellence, where strong earnings and optimized operations marked RLC’s exuberance journey. As we accelerate our progress, we redefine the landscape, reshaping the future with innovation as our cornerstone, propelling us towards unparalleled heights of success.

Lance Y. Gokongwei

Chairman, President, and Chief Executive Officer
Robinsons Offices’ First Farm in the Sky

As a developer of premium, sustainable, and future-ready offices, Robinsons Offices launched its first “sky farm” last October 10, 2023. Located in Cyberscape Alpha in Ortigas, this collaboration with FarmTop aims to reshape the future by addressing food insecurity, employee well-being, and sustainability through rooftop hydroponic farming. Following the “farm-to-plate” concept, vegetables are grown closer to where they are consumed, minimizing the carbon footprint that traditional farm-to-market routes entail. This initiative also demonstrates Robinsons Offices’ dedication to the well-being of its employees by providing its workforce with access to fresh produce.

Robinsons Hotels and Resorts expands its world-class offerings

Robinsons Hotels and Resorts (RHR) opened The Westin Manila last March 12, 2023, a luxury high rise hotel in partnership with Mariott Bonvoy. Situated at the heart of Ortigas Center in Mandaluyong City, this is the 26th owned hotel property of RLC with 303 keys. It offers premium hospitality and state-of-the-art facilities to ensure guests of a productive and fulfilling stay.

In Cebu, RHR also opened the NUSTAR Convention Center, the largest of its kind in Visayas and Mindanao that can accommodate approximately 2,000 people along with Fili Café. This gastronomic heaven offers an international array of cuisine with Filipino highlights such as the beloved Cebu Lechon and Huang Di, a specialty Chinese restaurant showcasing the spices of Szechuan to the delicate artistry of northern cuisine.

These new additions to RHR’s portfolio further strengthened its presence across the Philippines, accelerating its progress towards becoming the Philippines’ biggest and best hotel group with the widest variety of formats and brands and most diverse geographic reach. These also supported RHR’s accolades, as it was named as the “Best Operational Hospitality Portfolio” in the 11th PropertyGuru Philippines Property Awards. Meanwhile, Fili Hotel Cebu bagged the “Best Hotel Development”, “Best Hotel Interior Design”, and “Best Hotel Architectural Design” awards at the same event.

RLC Residences hits record-high sales and launches new flagship projects

RLC Residences has set a record in 2023 for both its gross and net sales. With an increase of 20% on Gross and 26% in Net vs its 2022 performance, these results were driven by shifting to address the consumer needs within the premium segment, driving improvements in customer experience, and building a brand with higher equity.

Continuing RLC’s mission to develop vibrant, beautiful, and lasting real estate developments, RLC launched two (2) flagship projects. Le Pont Residences is a two-tower premium development that promises to bridge its investors to their best lives by offering elevated high-rise living with hyper-sized amenities while being in a Destination Estate—Bridgetowne. Launched in January 2023, the project has significantly reflected capital appreciation in less than a year. In Cebu, RLC Residences launched Mantawi Residences in April 2023 – its first premium development in the emerging area of Mandaue City. Boasting an impressive 1.3 hectares of hyper-sized amenities, with premium retail offerings at the ground level, Mantawi is at the frontier of progress in Cebu.

JG Summit Olefins Corporation

JGSOC aims to be the linchpin of manufacturing, propelling the Philippine economy forward. We are passionate in our drive to excel in science, technology, and engineering, integral to the nation’s progress. We are committed to uplifting communities, ensuring a substantial and positive influence on the well-being, health, and happiness of the Philippines. We are an organization dedicated to the well-being of all employees.

JGSOC’s purpose powered our resilience in 2023. The year proved to be challenging marked by the extended unforgiving conditions with unprecedented weak margins and market volatility. Notwithstanding, the organization persevered, safely started up the plant following the commercial shutdown in the best part of the first half of 2023, and wasted no time in urgently improving operational and commercial performance. Safety Above All Else underpinned the organization’s drive forward.

JGSOC launched Sarimanok, a massive organizational transformation in October 2023, underpinned by the following strategic pillars: Accelerated Commercial Excellence, Disciplined Operational Excellence, and an Integrated People Plan. The aim is to transform the organization's capability to deliver and sustain top-quartile operational performance, eliminate waste, and deliver value uplift.

JGSOC ended 2023 with ZERO Lost Time Injury, an overall solid operational performance, captured material incremental value, and with the progress of the Sarimanok transformation on the plan.

Arnel L. Santos

President and Chief Executive Officer
Sustainability efforts continued throughout the year

In 2023, JGSOC’s One Million Trees Project reached an important milestone as it planted and distributed 596,901 indigenous and fruit-beating tree seedlings in Batangas province to various government agencies, civic groups, schools, and employee volunteers. Launched in 2016, One Million Trees aims to contribute to the regreening and reforestation of areas where these are needed.

Additionally, Phase 2 comprising 8 MW of Merbau Corporation's 13.8 MW Solar Rooftop project was completed in April 2023, which supplies solar energy to the petrochemical complex. The project aims to offset the sourcing of power from the national grid and in-house diesel generators with renewable energy and reduce greenhouse gas emissions by up to 17,000 metric tons of equivalent CO2 per annum.

Furthermore, JGSOC and DENR have extended their partnership to preserve and rehabilitate Wetland No. 8, a 1.8-hectare swamp and marshland located in Boracay Island, Aklan, in November 2023. This partnership covers the maintenance of the project’s tree nursery, the organization of regular tree-planting activities, the repair and reinforcement of existing perimeter fences, and the installation of markers and signage about the importance and benefits of wetlands on the environment.

JGSOC, in partnership with DENR EMB, has taken a significant step towards monitoring and improving air quality in Batangas City by donating a Continuous Ambient Air Quality Monitoring Station (CAAMS) unit in July 2023. The monitoring station provides continuous and real-time measurement of Particulate Matter (PM10) concentration and other air pollutants. This real-time data will be invaluable for assessing air quality in Batangas City and taking necessary actions to address any environmental concerns.

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JGSOC offers innovative petrochemical products and solutions

In 2023, JGSOC started commissioning its third polyethylene (PE) plant, a 250 KTA MarTECH™ Advanced Dual Loop (ADL) slurry PE manufacturing facility licensed by Chevron Phillips Chemical. The technology can produce bimodal and metallocene PE grades that are tougher than commodity PE. The toughness opens significant material and carbon footprint reduction opportunities to JGSOC’s converter customers.

JGSOC paves the road for continuous innovation of petrochemical products and provides solutions to address client’s needs and requirements. JGSOC’s two (2) EVALENE PLUS® random copolymer polypropylene (PP) injection molding grades were certified by UL Solutions, a third-party global safety science company, through their Environmental Claim Validation (ECV) program. Using these certified grades allows 10% energy savings during the injection molding process for the production of items such as storage containers and tote boxes, housewares, and other rigid packaging.

Agile transformation yields efficiencies and cost savings

In 2023, JGSOC’s Agile Center of Excellence (Agile CoE) spearheaded 29 impactful projects, focusing on safety, health, environment, work process enhancement, and cost savings. These initiatives yielded 18 projects, contributing to a total savings of Php 103.1 million for the year. The Agile CoE aims to help the organization identify areas where value can be captured early by generating profits and savings, cutting losses, improving efficiency, unlocking hidden potentials, developing a responsive culture on solving problems, and transforming JGSOC culture to adopt Agile working methods. Some exemplary Agile projects are the My PET Project and the Run and Change Operating Model.

The My PET Project empowers every JGSOC employee to share innovative ideas through a collaborative platform. With over 80 proposals received, 22 projects have been implemented, resulting in significant savings of Php 43.3 million. Notable projects include the Reduction of Frequency of Laboratory Analysis, Scrap Pellet Minimization and Recovery, and Air Compressor Power Optimization.

On the other hand, the Run and Change Operating Model envisions striking a balance between ongoing operations and the imperative for continuous improvement and innovation. Initially piloted in the Utilities and Offsite Facilities Department, the Run and Change model has since been expanded to PE/PP Manufacturing and the Packaging Department. The projects under Run and Change have contributed Php 4.5 million in savings, including initiatives like Variable Cost Optimization, Reduction of C3 Degassing Vent to Flare, and Water Systems Management.

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