For 2023, the Aboitiz Group is powering its Great Transformation to become the Philippines’ first Techglomerate with an allocated capital expenditure (CAPEX) of almost Php 78 billion, together with its partners. This is a 10% increase from the Php 70 billion utilized in 2022. The Aboitiz Group is focused on investing in renewable energy and new businesses for its portfolio diversification and innovation-driven growth ambitions.
“By embracing a bold vision of sustainable progress, we are not only transforming our business but also making a positive impact on our country. Our investments in renewable energy and innovation are paving the way towards a brighter future, and we are excited to be leading the charge towards a more sustainable tomorrow,” said Aboitiz Group President and Chief Executive Officer (CEO) Sabin M. Aboitiz.
It is worth noting that last year the largest capital investment of the Group was by a non-power strategic business unit. In 2022, Php 42 billion was spent by Aboitiz InfraCapital (AIC), the infrastructure arm of Aboitiz. This was used primarily for its airports, water, and telecommunication towers businesses, which are showing impressive growth prospects.
This year, Aboitiz continues its momentum of diversifying its business mix, particularly in the infrastructure segment. The Infrastructure unit of the Group will be spending almost Php 32 billion, or 42% of the Group’s CAPEX budget. This will go towards the continuous expansion of AIC’s Economic Estates, telecommunication towers business, as well as new investments in digital infrastructure.
Additionally, the capital will also be utilized for the completion and maintenance of Apo Agua, the Infrastructure unit’s bulk water project in Davao City. Once operational, Apo Agua is expected to supply over 300 million liters of safe and sustainable water to Davaoeños daily.
The Group’s Power unit, AboitizPower, builds on the momentum from last year’s successes to support the country’s ambitions of cleaner and greener economic growth. Together with its partners, it will develop and construct various solar, geothermal, hydro, and wind projects to help fuel growth and realize its aspiration of having a 50:50 balance between its renewable and thermal portfolios by 2030.
There will also be investments for improving the efficiency and reliability of existing baseload plants critical in powering the country’s economic progress, as well as for various land acquisitions, new substations, and new meters for its distribution business. As it aspires to grow beyond its core business of electricity generation and distribution, AboitizPower is also exploring new energy-adjacent opportunities, from energy storage systems to the Internet of Things (IoT).
As the Group’s Banking business continues to lead the industry in innovation, it doubles down on its digital transformation. CAPEX investments of the Aboitiz-led Union Bank of the Philippines amounting to over Php 5 billion shall be towards the migration of the acquired Citi consumer banking business as well as continued enhancements of its digital channels and feature builds to accelerate its aspiration of becoming a leading consumer bank.
Pilmico and Gold Coin, the food and agribusiness subsidiary of the Aboitiz Group, will be allocating almost Php 5 billion for CAPEX this year, mainly for its international feed mill expansions in Long An, Vietnam and Yunnan, China.
The Group’s Real Estate arm, Aboitiz Land, has an allocated CAPEX of almost Php 3 billion for the construction and completion of its residential projects. This year will see new project launches in Priveya Hills in Cebu and the Villages at Lipa in Batangas. Aboitiz Land maintains a bullish outlook on the growth of the business as the company maximizes its use of property technology in construction and finance.
The strategic plans outlined for the year ride on the Great Transformation momentum. Across all its businesses, the Aboitiz Group continues to invest and lead in innovation.