Ayala Land, Inc, Makati Development Corporation, Taguig City, Philippines: ALI-MDC Finance Division

MDC Finance implemented FOCUS (Financial Management, Operational Efficiency, Corporate Governance, Upskilling Staff, and Systematic Work Management) - a strategy to ensure strong working capital, financial support, and sustainable recovery for MDC during the pandemic.

Financial Management: MDC Finance ensures that cost efficiency and growth strategies are in place to keep the business thriving, allowing MDC to achieve consolidated revenues of Php42.5B (~USD766M) and net income of Php2.55B (~USD46M) in 2022, a significant recovery from 2020. Despite the huge hit suffered by the construction industry amidst pandemic, MDC remained the largest construction company in the Philippines in terms of revenues, ranking 72nd in the Top 1,000 Corporations in the Philippines 1.

MDC maintained positive net cash flow from operations and achieved year-end effective cash balance of Php3.78B (~USD68M).

Operational Efficiency: To support our business partners, MDC Finance offered supplier financing through the request for early payment (REP) program and introduced the New Normal Vendor Payable Process to streamline the payment process of over 2,100 active vendors – most of which are micro, small, and medium-sized entities that needed assistance in mitigating lost income/weak capital position.

MDC Finance worked on the financial due diligence, procurement and monitoring of over 60,000 COVID-19 vaccines and ancillary supplies, and preparation of allocation plan to achieve optimal vaccine utilization for over 46,000 employees, dependents, cooperatives, subcontractors, and ancillary workers.

MDC utilizes tools and software to craft relevant dashboards and reports (e.g., weekly status of receivables, daily cash position, and project point review, among others) to allow easy interpretation and better decision-making.

Corporate Governance: MDC Finance continues to adhere with relevant laws and policies of regulators and government institutions. MDC Finance achieved 100% tax compliance and implemented the Electronic Invoicing/Receipting System (first among the Ayala Land pilot taxpayers) to streamline business taxation and provide reliable sales data.

MDC Finance likewise strengthened its commitment to support the community and Ayala Land businesses through sustainability and patronage efforts.

Upskilling the Staff: In 2022, MDC Finance subject matter experts rendered 175 training hours to provide virtual and in-person Finance-related workshops for employees and business partners. MDC Finance regularly holds the Progressive leadership through Exchanges of Skills and Opinions (PESO) program to share best cost leadership practices and strengthen teamwork and engagement within the team.

The year prior, MDC Finance sustained high employee engagement rating, achieving 98% in ENGAGE Survey 2 - the highest score amongst the groups in MDC (96%) and Ayala (91%), even surpassing the Philippine Norm (87%).

Systematic Work Management: MDC Finance maximized digital capabilities for efficient vendor payments, financial performance planning, cash flow and balance sheet analysis; and equipment ordering, utilization and monitoring.

MDC Finance digitized the payable process to improve cycle time from 23 to 12 days. Payments of recurring billings to utility providers, security agencies, lessors and government agencies, among others, were streamlined through MYBILLS Applications, reducing payment cycle from 7 to 4 days.

The re-engineered Order-to-Collect (O2C) Process replaced the manual billing and collection process resulting in reduction of 408 manhours monthly, over 840k reduced paper consumption annually, and improvement to 2 minutes from 30 day-cycle prior to launch. A planning, budgeting, and forecasting system via Anaplan was likewise developed to help create reliable budgets in response to new opportunities and threats.

1 Based on Business World Top 1,000 Corporations in the Philippines 2022 Volume 36

2 A bi-annual survey conducted by Ayala Group, together with Towers Willis Watson, an independent consulting firm

• Implemented the FOCUS strategy to strengthen MDC's balance sheet and sustain pandemic recovery.
• Ensured that cost efficiency and growth strategies are in place, allowing MDC to remain the largest Philippine construction company in terms of revenues in 2022.
• Introduced REP and New Normal Vendor Payable Process to streamline payments for 2,100 vendors.
• Practiced diligent procurement and optimal utilization of 60,000 COVID-19 vaccines and supplies.
• Achieved 100% tax compliance and became the first Ayala Land company to implement the Electronic Invoicing/Receipting System.
• Facilitated 175 hours of training to share best practices and initiated engagement programs to energize the team.
• Utilized digital tools to craft dashboards and reports allowing better interpretation, forecasting, and decision-making.
• Sustained a high employee engagement survey score of 98%.
• Digitized payable processes to improve cycle time and deliver payments faster, optimize manpower, and reduce paper consumption.