PowerPoint Presentation

2 SUCCESSFUL CEOs AND 1 FAILED CEO

Reported by: Mr. Gerry O. Gatawa

I would present to you a man seemed to have been born with a golden touch because everything he touches becomes very valuable like gold.

Chairman, President and CEO: PLDT ($1.3 million (over P57 million)Chairman: TV5Founder and CEO: First Pacific Company Ltd. (US$8.5 million (about P380 million.)Owner: Cignal Digital TV and Smart CommunicationsChairman of the Board of Trustees: Ateneo de Manila University (ADMU)President and CEO: Manila Electric Company (Monthly SalaryPhp. 950,000)Chairman and CEO: Philex Mining Corporation (Monthly SalaryPhp. 230,000)Chairman: Metro Pacific Investments Corp (Monthly SalaryPhp. 588,000)

3rd highest paid CEO with a combined total compensation of P2.65 million per month.

Manny V. Pangilinan (MVP)

Net Worth:

4.5 Billion

Came from a family who shares strong determination to achieve successBorn in July 14, 19462nd son of Mr. Dominador Pangilinan who started as a messenger at PNB but retired as the President of Traders Royal Bank

BACKGROUND

Manny was a scholar during his elementary and secondary years at San Beda where he was given a daily allowance of 25 centavos.When he went to Ateneo de Manila University where he took up a Bachelor Degree in Economics his allowance improved to P10 per week.Still too modest compared to most of his classmates who have their own drivers. This did not deter him instead.

EDUCATION

After college, he took MBA in the U.S. but his father could not afford it but won the national competition of scholarship to University if Pennsylvanias Wharton School offered by Procter & Gamble.Procter and Gamble turned down his application. Determined to get a job, he grabbed the first opportunity that came his way and that was as an executive assistant to the president at Phinma with a monthly salary of P 1,000.LUCKS AND LET DOWNS

Wanting to emphasize his independence, Manny left Phinma after six years and decided to work abroad.He worked at Bancom International, a Philippine Investment bank based in Hong Kong. He expected to be CEO but he did not get it.At the age of 30, he got into mid-life crisis, but he was able to pull himself together and went back to Hong Kong and continued with American Express. LUCKS AND LET DOWNS

In 1981, he founded the First Pacific in Hong Kong with the help of people he met while working in the region for some years that he was able to gain the trust of some who supported his idea on the regional banking and trading business. It started with 6 people. By 2006, First Pacific has a whopping $5 billion and 60,000 work forces all over the region.NEW CHAPTER

After 22 years working abroad, Manny came back to the Philippines determined to enforce the badly needed changes in Philippine Long Distance Telephone Company (PLDT).After some unpopular decisions, he proved to all who did not believe in his move that they can indeed make the change.He also did the same with Piltel or Talk N Text.

MAKE THE CHANGE

PLDT STOCK CHART

The late '90's was a time of formidable challenges for PLDT due to Asian financial crisis.

First Pacific acquired a 17.5-percent stake in PLDT for approximately P29.7 billion or some $749 million at that time. PLDT acquired Smart

MVP as Chair-man

FIRST PACIFIC ACQUIRES 17.5% STAKE IN PLDTBy 1995:With the passage of the Telecommunications Act and the subsequent deregulation of the Philippine Telecommunications industry, the company has been de-monopolized. Later that year, Hong Kong-based First Pacific Company Ltd. Acquired a 17.5 % stake in PLDT making it the majority owner of the conglomerate.The companys CEO Manuel V. Pangilinan became the new conglomerates President replacing Cojuangco, who assumed post as Chairman until 2004, when Pangilinan became his successor.

INVESTING IN ICTBy 2000:One of the key steps was the formation of ePLDT, the PLDT Groups principal vehicle for investments in information and communication technology.

INNOVATING THE LANDLINEBy 2002:PLDT continued to innovate and introduced a prioneering prepaid landline service where subscribers can load up their phones with P500-load that is valid for two months and with a one-month reprieve to reload.

By 2004:The PLDT Board of Directors appointed Manuel V. Pangilinan to the position of the Chairman of the Board while retaining his post as Chairman of the Board of Smart and ePLDT.

INNOVATING THE LANDLINEBy 2005:PLDT began upgrading its network to the Next Generation Network, a broad term for certain emerging computer network architectures and technologies that can encompass voice, data and video where all information is efficiently transmitted via internet.

By 2006:PLDT saw the rapid growth of its broadband business on the back of the Groups wired and wireless infrastructures. PLDT MyDSL and SmartBro broadband subscribers doubled 265,000 by year end.

PLDT ACQUIRES DIGITELMarch 30, 2011PLDT and JG summit Holdings board of directors approved the acquisition by PLDT of Digital Telecommunications Phil. Inc (DGTL) representing 51.55 % equity stake.The transaction had an equity value of P74.1 billion ($1.7 billion)Benefits of the merger are: consumers will benefit from wider and complimentary array of products and improve quality of service; andPaired networks will accelerate continue expansion of broadband rollout and other next-gen technologies in both fixed and wireless space

2012 BID FOR TV STATIONPangilinan secured a third player among the countrys television networks the Associated Broadcasting Corporation or ABC Channel 5, later rebranded as TV5 and which today belongs to a news network that includes Radyo5 (92.3 on the FM band) Aksyon TV (cable) and AKTV (sports channel/cable) and InterAksyon (Social media). ABC 5 is 100% owned by PLDTs Mediaquest.

PLDT and GLOBE ACQUIRES SAN MIGUEL TELCO2016PLDT and GLOBE acquired for P69.1 billion the telecommunication business of San Miguel Corporation following the collapse of talks with Australian telecom Telstra Corporation.The acquisition deal will now give the two telcos access to more radio frequencies (700MHz).PLDT shares increase by P114 or 6.54% to P1,855.

What can we learn from MVP?

Self-made people, really comes from doing the right thingno shortcuts, no corruptionand earning it the right way!Tell the truth. Failure is not frowned upon.Disruption happens anytime, anywhere. Business landscape changes rapidly, those who will survive are those most adaptive to change.

Be independent, then take risks. I wanted to be on my won, take the risk and see where my fortunes are.Be bold because youre young enough to fail. I am young enough to make a mistake. If I wait any longer, Id be too scared.Think inclusive. We are here to improve lives, because improving lives helps our businessValue temperance. One just has to be sensitive about spending his money

Be practical. Keep it short and simple, keep it real. Be diligent. There are no shortcuts. You have to earn it!

Chairman: JG Summit HoldingsChairman and CEO: Robinsons Retail HoldingsOwner: Robinsons MallNet Worth: $5 Billion2nd Richest entrepreneur in the Philippines by Forbes

JOHN GOKONGWEI

Not all greats start from small beginnings. Sometimes, they are born privileged, later to be taken away from them, but succeeding once again in the future.

His father died of typhoid when he was 13 and the family discovered that much of their business was built on debt. The movie theaters, cars and big house were all seized by the banks.John Gokongwei Jr., being the eldest child is the breadwinner of the family.He learned how to sell food and other goods in the streets of Cebu, competing with men and women who were at least twice his age.EARLY ENTERPRISE

In his teenage years, Gokongwei bought his own bicycle so he can go to nearby towns and barrios to sell soap, thread, candles and other things that people need.He would wake up early so he can start selling early on.By sunset, he would be on his way home to bring food and money back to his family.EARLY ENTERPRISE

Lesson:I did not become an entrepreneur to help the country, create jobs, or even to profit from something in which I excelled in. I became an entrepreneur to survive.- John Gokongwei, Jr.

I rode my bicycle to survive

He broadened his inventory and used wooden boats to trade goods in Manila.

After two years of biking and peddling, at seventeen, I entered my batel age. The batel was a small, a very utilitarian boat that defied the open sea and would take me further from Cebu, and all the way to Lucena, from where I would take a truck to Manila with companions twice or thrice of my age John Gokongwei Jr.

THE BATEL AGE 1944

After WW2, he started importing goods from the United States. Between 1945-1955, he went to the United States several times to get goods for sale in the Philippinesclothes, tires, food, fruits, milk, flour, onions, old newspapers, magazines, anything.He set-up his first company, American-Asia Trading, first ukay-ukay dealer in the countryHe saw business opportunities during the war instead of problems and difficulties

OPPORTUNITY AMIDST DESPAIR

In 1956, Philippine President Elpidio Quirino Jr. changed the economic policy of the country. He increased tariffs and imposed import controls on goods to encourage local businesses. With this, John decided to manufacture cornstarch. From it, the Universal Robina Corporation was born.

China Bank provided him with a character loan of P500,000. I know a good man when I saw oneDr. SyCip [Chair-Chinabank]THE BIRTH OF MANUFACTURING BUSINESS

THE AGE OF BRANDS

In 1957, he established Universal Corn ProductsHe had competitors like Procter and Gamble and NestleHe established CFC (Blend 45) and positioned it as the poor mans coffee.He established the JG Summit Holdings which was also expanded overseasJG purchased 23% of United Industrial Corporation of Singapore

If they can make a lot of money, so can I

THE AGE OF BRANDSGokongwei advised his brother James to study in America and earned the degree in chemical engineering. His brother returned to the Philippines and together they expanded into new business ventures (Noodles, Cookies and Crackers).JG Summit grew to $135 million by 1993, and when listed in the PSE, and then $1.8 billion in its 50th anniversary in 2007.

COMPANIES THAT GOKONGWEI BUILTCOMPANIES THAT GOKONGWEI ACQUIREDFOOD: The Universal Robina CorporationTEXTILE: Litton MillsRETAIL: Robinsons Retail GroupPOWER GENERATION: First Philippine Power Corporation and Toledo Power Corp.PROPERTY AND HOTEL MANAGEMENT: Robinsons Land CorporationTELECOMMUNICATIONS: Digital Telecommunications Philippines, Inc.PETROCHEMICALS: JG Summit Petrochemical Corporation AVIATION: Cebu Pacific AirFINANCIAL SERVICES: Capital and Financial Services GroupBANKING: FEBTC and PCI

DOMESTIC EXPANSIONS: 1970-1999

GLOBALIZATION: 2000sJohn Gokongwei Jr. wanted the Universal Robina Corporation to be a truly Philippine-based multinational company. From 2000 to 2004, the Universal Robina Corporation International Group expanded its markets in Thailand, Indonesia, Malaysia, China, Singapore, Hong Kong and Vietnam.

THE GOKONGWEI ENTERPRISE TODAY

CHANGE IS INEVITABLE AND FLEXIBILITY IS THE KEY

PERSONAL STAKES IN THE COMPANY ENCOURAGE EVERYONE TO WORK HARD

MISTAKES AND DISAPPOINTMENTS ARE INEVITABLE

GOOD BRAND EQUALS REPUTATION

FAMILY SUPPORT IS CRUCIAL

PAUSING TO RECHARGE BRINGS NEW VIGOR

READING AND TRAVELING ENRICHES ONES MIND

Chairmannd CEO: LEHMAN BROTHERSSalary: $22,030,534 (2007)Net Worth: US$ 100 million (est.)

RICHARD DICK S. FULD JR.

He began his career in 1969, the year the firms senior partner Robert Lehman died, and stayed at the company until its bankruptcy.He began as a commercial paper traded and rose rapidly

RICHARD DICK S. FULD JR.

He served as CEO from 1994 through the firms collapse in 2008. Fuld was the longest-tenured CEO on Wall Street at the time of the financial crisis of 2008.Fuld had handled Lehman through the 1997 Asian financial crisis, a period where the firms share price dropped to $22 in 1998.Lehman had a yearly loss of $102 million in 1993, but after Fuld became CEO the firm had fourteen straight years of profits including one of $4.2 billion in 2007, although in 2008 it reported a Q2 loss of $2.8 billion and filed bankruptcy later that year.

CHIEF EXECUTIVE OFFICER

Similar to the fall of Barings Bank this was accomplished by driving up company earnings through excessive leverage and risk.Fuld underestimated the downturn in the US housing market and its effect on Lehmans mortgage bond underwriting business.Fuld was criticized for not completing proposed deals, either a capital injection or a merger, that would have saved Lehman Brothers from bankruptcy (from Warren Buffet and Korea Development Bank)

LEHMANS BANKRUPTCY

Lehman borrowed significant amounts to fund its investing (known as leveraging or gearing)Leverage ratio = 24 : 1 in 2003 and 31 : 1 by 2007 (Assets/Equity)Whiel generating tremendous profits during the boom, this vulnerable position meant the just 3-4% decline in the value of its assets would entirely eliminate its book value of equity.In August 2007, Lehman closes its subprime lender, BNC Mortgage eliminating 1,200 positions.

EXPOSURE TO THE MORTGATE MARKET

In 2008, Lehman faced an unprecedented loss due to continuing subprime mortgage crisis. Lehmans loss was apparently held on to large positions in subprime and other lower-rated mortgage trances when securitizing the underlying mortgages.Huge losses accrued in lower-rated mortgage backed securities throughout 2008. Lehman reported losses and decided to raise $6 billion in additional capitalLehman stock lost 73% of its value as the credit market continued to tighten.

LEHMANS FINAL MONTHS

Lehman Brothers filed fo Chapter 11 bankruptcy protection on September 15, 2008.JPMorgan Chase & Co. provided Lehman Brothers with a total of $138 billion in Federal Reserved backed advances.Barclays acquired core business of Lehman brothers.Nomura Holdings, Inc. announced it agreed to acquire Lehman Brothers franchise in the Asia Pacific Region including Japan, Hong Kong and Australia and also the investment banking and equities businesses in Europe and Middle East.

LEHMANS FINAL MONTHS

Dow Jones closed down 500 points (-4.4%), the largest drop in a single day.Lehman Brothers bankruptcy caused depreciation in the price of commercial real estate. Apartment-building investors felt pressured to sell as Lehman unloads its debt and equities.Effects to global financial system and investments.

IMPACT OF BANKRUPTCY FILING

Lehman Brothers was questioned: Your company is now bankrupt, our economy is in crisis, but you get to pay much. I have a very basic question for you, is this fair?

Fuld received nearly half a billion dollars in total compensation from 1993 to 2007. in 2007, he was paid a total of $22,030,534 which included a base salary of $750,000, a cash bonus of $4,250,000, and stock grants of $16,877,365.

FULDS COMPENSATION

The New York attorney general filed charges against the banks auditors Ernst & Young in December 2010, alleging that the firm substantially assisted.massive accounting fraud.

ACCOUNTING MANIPULATION

DOUMO ARIGATOU GOZAIMASUXIE XIEMUCHAS GRACIASMERCI BEAUCOUP.

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