BusinessWeek Mindanao (September 26, 2016) by Mindanao Daily News

BusinessWeek MINDANAO CREDIBLE

Volume VII, No. 049

Market Indicators

As of 6:12 pm september 22, 2016 (thursday)

FOREX

PHISIX

US$1 = P47.835

7,762.35

3.2 cents

86.93 points

Briefly Negosyo Centers IN its continuous efforts in carrying its mandate of enabling the Micro, Small and Medium Entreprises (MSMEs) in Northern Mindanao, the Department of Trade and Industry – Region 10 launched two more Negosyo Centers in Lanao del Norte. Located in the municipalities of Kapatagan and Lala, the launching of these Negosyo Centers marked the 15th and 16th in the region, and 289th and 290th in the country, respectively, since the implementation of Republic Act 10644 otherwise known as the “Go Negosyo Act” in 2014, authored by Senator Paolo Benigno “Bam” Aquino. Both launchings were attended by a representative from the office of Sen. Bam Aquino, Luke Buniel, DTI Region 10 Director Linda O. Boniao, DTI Lanao del Norte Provincial Director Ruel B. Paclipan, a representative from the office of Congressman Abdullah Dimaporo, and lawyer Donato Calica.

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WB to collaborate with Duterte to rid poverty www.businessweekmindanao.com

Monday | September 26, 2016

By ANTONIO COLINA IV, MindaNews

AVAO City -- The World Bank has signified interest to step up its collaboration with the Philippine government specifically on agriculture, peace process, and affordable housing to address poverty and generate “meaningful” jobs to poorer Filipinos under the Duterte administration. Victoria Kwakwa, World Bank-East Asia and Pacific Region vice president told reporters Friday that she met

with key senior government officials and business leaders on “what more we could to collaborate/PAGE 11

SEATED(L-R): Fr. Aristotle C. Dy, SJ, Ph.D., President - ERDA Tech Foundation, Inc.; Jonathan T. Gotianun, Chairman - Filinvest Development Corporation (FDC); Mercedes T. Gotianun, Chairman Emeritus - FDC; Fr. Roberto C. Yap, SJ, President - Xavier University, Ateneo de Cagayan, CDO; Atty. Efren C. Gutierrez, President - Andrew Gotianun Foundation, Inc. (AGFI); Isidro A. Sobrecary, Member, Board of Trustees - Xavier University. STANDING (L-R): David C. Gotianun, Senior Architect - FDC Hotels Corporation; Andrew T. Gotianun, Jr., Director - FDC; Joseph M. Yap, President - Filinvest Cyberparks, Inc.; Josephine Gotianun-Yap, President and CEO - FDC; Joseph Patrick M. Yap, Special Projects Officer EastWest Banking Corporation; Francis C. Gotianun, Vice President - FDC Hotels Corporation; Atty. Cornelio Gison, Member, Board of Trustees - AGFI; Jose Sandejas, Member, Board of Trustees - AGFI; Crisanta Legaspi, Executive Director - AGFI; Dr. Gilda Brito, Director - Xavier University Center for Integrated Technologies.

Green Gown Awards XAVIER University - Ateneo de Cagayan has been recognized as a GUPES Finalist for this year’s Global Universities Partnership on Environment and Sustainability Green Gown Awards. XU was one of the four academic institutions in Asia and the Pacific in the Community Engagement category, along with Aklan State University (GUPES Finalist), De La Salle University (GUPES Highly Commended), and Fiji National University (GUPES Winner). GUPES Green Gown Awards winners were announced at the Massachusetts Institute of Technology (MIT) in Boston, USA on September 13. Universities from five global regions went head to head to become the inaugural GUPES Green Gown Awards winners. Entries were wide ranging from solar dancing flowers to fog catchers to protecting Nemo to aboriginal engagement, among other initiatives.

IN-DEPTH

President Rodrigo R. Duterte joins the ocular inspection of the Filinvest Development Corporation Misamis 405MW coal-fired power plant during its inauguration in Villanueva, Misamis Oriental on Friday, Sept. 22.

SanMig eyes investments in power, agri sectors in Sulu C ONGLOMER ATE San Miguel Corporation (SMC) plans to put up a power plant and feed mills in Sulu before the year ends, said Agriculture Secretary Manny Piñol on Friday. Bared SMC’s planned investments after a meeting Wednesday with

SMC president and chief operating officer Ramon Ang, who considered these interventions their “important contributions to the peace efforts” of President Rodrigo Duterte. While these investments may be considered risky by sanmig/PAGE 11

Filinvest to build P500-M school for Mindanao THE Andrew Gotianun Foundation, Inc. (AGFI) has inked a Memorandum of Understanding with a pledge of Php500 million

to the Educational Research and Development Assistance (ERDA) Foundation and Xavier University to put up a Technical-Vocational High

School for scholars at the PHIVIDEC Industrial Estate in Villanueva, Misamis Oriental. filinvest/PAGE 11

NGCP pushes for law to ease transmission project constraints ILIGAN City -- Power grid operator, National Grid Corporation of the Philippines (NGCP), reiterates its support for the passage of the “Anti-

Power Line Disturbance Act”, which will criminalize the deliberate planting of trees, and the construction of any structure within the rightof-way (ROW) clearances

of power lines across the country. NGCP is hopeful that the 17th Congress, which convened last July, will refile ngcp/PAGE 11

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chief distributes Climate group lauds Duterte’s GAR CLOAs to beneficiaries openness to clean energy in Northern Mindanao

I L L A N U E VA , Misamis Oriental --The Climate Reality Project Philippines (Climate Reality), a global movement founded by Nobel laureate and former United States vice president Al Gore, lauds President Rodrigo Duterte’s statement on renewable energy potentials of the country during the inauguration of Misamis Oriental coal thermal plant. “We are glad that the president recognizes the importance the availability and potentials of renewable energy in the country,” Rodne Galicha, country manager of Climate Reality and director of Ecoteneo of the Ateneo de Davao University.

In his speech, President Duterte stressed that there is still a need to utilize coal for energy for the country to catch-up with other countries to develop, however, he also emphasized that the “second and third generation will suffer would still suffer if we are not really able to utilize, what I would say, the solar and the wind...” “If we want to industrialize our country because we were left behind by so many generations, you have to keep up with developments and... right now is to use coal, cheap, it’s available although it is maybe deletorius to the whole of the climate of planet Earth,” said Duterte. President Duterte further

explained that there is a challenge to stabilize electricy requirement and that in due time available renewable energy sources such as solar can be utilized with better technology and quick return of investment. “But more or less, it should be stabilized for now. But we never thought that Mindanao would develop so fast that in a few years, we would be starting again to tinker with, maybe, in the fullness of God’s time, we would have something like solar or better technology but not expensive. There’s no question, they are available.” said Duterte. According to Gailicha, the statement of the President Duterte may be viewed in

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the principle of common but differentiated responsibilities and respective capabilities, in light of different national circumstances. This is one of the highlights of the Paris Agreement on climate in which, the Philippines with very minute carbon emission, is asked to determine and act on its greenhouse gas emission reduc tion contr ibution depending on its own realities. “It mu st b e cl e arly understood that President Duterte’s statements mainly echoes what our Philippine delegation fought for during the Paris negotiations last year especially on loss and damage mechanism, finance and technology, said Galicha. He further said that the President’s call is also our call for climate justice which requires developed countries to act on climate-affected nations for loss and damages and provide finance and capacity building, support and facilitate technology development and transfer for our mitigation and adaptation efforts. Our commitment to reduce our greenhouse gas emissions is conditional and we are not obliged to do so. It is dependent on external financial and technical assistance which the Paris Agreement assures. The way forward for a sustainable Philippines is to start a just and equitable transition to renewable energy such as solar, wind and geothermal and we hope that the President and the Senate shall collaborate as soon as possible to look at the benefits of the climate deal. (Climate Reality)

By JASPER MARIE OBLINA-RUCAT

D E PA RT M E N T o f Agrarian Reform (DAR) S e c r e t a r y R a f a e l V. Mariano distributed a total of 887 hectares of land to 455 agrarian reform beneficiaries (ARBs) in Northern Mindanao when he visited DAR regional office in Cagayan de Oro this month. The C ertificates of Land Ownership Award (CLOA) was given to 330 ARBs in Bukidnon with 700 hectares including towns of Maramag, Pangantucan, Ta l a k ag and L ant ap an . Meanwhile, in Lanao Norte, a total of 187 hectares were distributed to 155 ARBs in Kolambugan town. As i d e f rom C LOA d i st r ibut i on , S e c re t ar y Mariano’s visit was aimed t o fo s t e r p ar t i c ip at i on and dialogue between farmers and DAR region 10 employees. He announced policy directions and thrusts of the department where the goal is real agrarian reform. This includes distribution of lands to farmers. He cited the importance of protecting the farmers and ensuring their security of tenure and promoting their rights and welfare. We must also contribute t o r u r a l d e v e l o p m e nt , he said. We must attain food security through strengthening DAR community. Right now, DAR is fast racking inventory of lands distributed to farmers to

m a ke s u re t h e s e l an d s are still under the name of owners and have not illegally sold them. Mariano said that according to the statistics of Land Bank of the Philippines (LBP), there a re a t ot a l of 9 0 6 , 0 0 0 farmer beneficiaries who should be paying for the l an d am or t i z at i on an d 6% interest per annum. However, based on records, a total of 120,000 ARBs are not able to pay for the amortization and interest. Meanwhile, only 25% have fully paid. Based on the law under C omprehensive Agrarian Reform Program, A R B s s h ou l d p ay l an d amortization and interest rate per annum, he said. That is why they are fast tracking validation and monitor ing . There had already been 4.7 million hectares of land distributed to 2.7 million ARBs nationwide. One more re as on to conduct the inventory said the Secretary is to monitor thos e given conversion orders granted by DAR to check whether development plan has been implemented for five years, otherwise, it can be basis for revocation or recall of the conversion order. He said, if it needs to be re-classified to agricultural land, prog ram on fo o d production would be more strengthened. (JMOR/ PIA10)

CAGAYAN DE ORO MAIN BRANCH P & J Lim Bldg., Tiano Brothers Kalambagohan Sts., Tel. # (08822) 727-829 * Telefax # (088) 856-1947 CAMIGUIN BRANCH B. Aranas St., Poblacion, Mambajao, Camiguin Tel. # (088) 387-0491 CORRALES BRANCH Corrales Ave., Cagayan de Oro City DIVISORIA BRANCH Atty. Erasmo B. Damasing Bldg., #61 Don A. Velez St., Cagayan de Oro City Tel. # (088) 857-3631 LAPASAN BRANCH Lapasan Hi-way, Cagayan de Oro City Tel. # (088) 231-6739 CARMEN BRANCH Vamenta Blvd., Cagayan de Oro City Tel. # (088) 231-2011

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Create Your Own Luck Think a minute.Do you know some people who just have all the luck? They seem to get all the breaks. And you ask yourself: “Why don’t I get lucky? Why don’t I get a great education? A great job or business? A nice house? A wonderful wife or husband?” But the real reason most people are successful or lucky is that they’ve learned how to put themselves in a place so they can be lucky. They’ve learned how to, in a way, create their own luck! I’m not talking about dishonest or illegal ways. I’m talking about hard, honest work. But successful people don’t just work hard, they also work smart. They keep improving and making the most of their assets and abilities. Yet they also learn to ask for help in things they themselves are not that good at doing. As the famous Olympic athlete, Eric Liddle, said: “You can’t put in what God left out.” So we not only must make the most of our own special abilities, we must also learn our limits and weaknesses. A man recently got his lucky big break-a promotion in a large company. Everyone said, “That guy’s so lucky!” But that man created his own

THINK

A Minute

Jhan Tiafau Hurst luck.by always arriving at the office early. He apologized and admitted when he was wrong. He e ven shared the credit and reward with others when he had done much of the work. He was never satisfied just to get by and do average work. He always made the extra effort to do his very best. He kept working hard when others slacked off. We have to work hard and do what it takes to be in the way of luck and success when it comes. Otherwise, we’ll miss it because we weren’t ready. You never know when the right opportunity will come your way, and when the right, important person is watching your excellent attitude and work. That’s when you’ll get your lucky hurst/PAGE 11

Since yesterday (I write this piece Saturday, September 24, 2016!), Syria is being bombarded by air as army prepares ground invasion of Aleppo. Syria’s armed forces have called on civilians in Aleppo to flee rebel-held areas ahead of a ground offensive. The country has witnessed an escalation of violence in the wake of a nationwide “cessation of hostilities.” The Russi an-b acke d Sy r i a n a r my l au n c h e d dozens of airstrikes yesterday Friday on rebel-held areas of the northwestern city of Aleppo in preparation for a ground offensive, state media and several news agencies reported on Friday, citing military officials. Nu me rous re p or t s emerge d of d amage to emergency service facilities and underground shelters, leading many residents of the embattled city to hide in their homes, unable to flee. In 2015, Russia launched a military campaign in Syria to bolster Assad’s rule. But the conflict is raging with no

end in sight. “With respect to the air or artillery strikes, they may continue for some time depending on the field situation and the terrorists’ losses,” a Syrian military source told Reuters news agency. “Like any military operation, it starts with preparatory airstrikes and artillery, and then the ground forces work according to the results of the strikes and their impact,” the source added. The UK-based Syrian Obser vator y for Human Rights, a war monitor that uses a nationwide network of informants, reported by early evening at least 40 airstrikes. The White Helmets rescue agency reported that at least 93 people had been killed during Friday’s barrage. The Syrian army on Thursday announced “the start of its operations in the eastern districts of Aleppo,” warning civilians to stay clear of “the headquarters and positions of the armed terrorist gangs.” The regime in D amas c us regu l arly uses the term “terrorist” to describe all those fighting against the rule of President

Bashar al-Assad. The escalation of violence in Syria comes in the wake of a nationwide ceasefire brokered by the US and Russia that collapsed earlier this week. US State Secretary John Kerry called on Moscow and Damascus to halt aerial raids in a bid to salvage the “cessation of hostilities.” However, the Observatory reported apparent Russian aircraf t t a k ing p ar t in airstrikes on Aleppo, Syria’s second city. Syria descends into chaos. My heart is bleeding. And not only mine! What’s happening now is annihilation in every sense of the word, someone told the international news agency Reuter. Water services have also been severed for nearly two million Syrians in Aleppo following Thursday and Friday’s attacks, reported UNICEF, the United Nations children’s agency. More than 300,000 people in Syria have been killed and half the population displaced since government forces launched a brutal crackdown on p e a c e f u l prote ste rs calling for Assad to step

H ave M y Say

Klaus Doring

down in March 2011. The international community has failed to provide a viable political solution to the more than five-year conf lict, despite repeated efforts to implement nationwide ceasefires and peace talks. The same international community, which keeps on criticizing the Philippines and its president on the war on drugs and against corruption. +++ Email: dor ingklaus@ gmail.com or follow me in Facebook or Twitter or visit www.germanexpatinthephilippines.blogspot.com or www. klausdoringsclassicalmusic. blogspot.com .

The legacy of Andrew L. Gotianun, Sr. (2) “Whenever I go out, I always ask about new business trends. I look for business models which can be done at home. I bring home lots and lots of materials to read. Right now, I am looking into energy.” I could hear those words as clearly now as when I first heard them from Andrew L. Gotianun, Sr. about five years ago. Mr. Gotianun was not just a personal friend and mentor. He was also a benefactor of the Municipality, later City of Muntinlupa which I was privileged to head some years back. Mr. Gotianun built from scratch his huge Filinvest business empire (property development, financial and banking services , sugar millling and refining , hotel and resort management, power and water utilities). P u s h i n g 8 3 at t h at time, he should have been enjoying retirement. But no, he was still exploring new ventures. This time, he was looking at power generation. Three years ago, F i l i nv e s t’s p ow e r f i r m – FD C Mis amis Power Corporation (FDC Misamis) began constructing a 405 MGW coal-thermal power plant, consisting of three generating units of 135 MGW each, in Villanueva, Misamis Oriental. Two years ago, FD C Misamis also won the bidding as IPPA Administrator for the output of the Mt. Apo 1 and 2 geothermal power plants located in North

Cotabato. The first unit of the Misamis Oriental plant started to operate in July this year. The second unit in August. And just last Thursday, Mr. Gotianun’s dream of supplying Mindanao with cheap power was fully realized with the inauguration of the third generating unit of his ‘pet project’. The combined outputs from the Misamis Oriental pl ant and t he Ap o Geothermal IPPA contract will total 500 MGW - enough to meet the the bulk of the power requirements for the whole of Mindanao in 2016. According to Mindanao Development Authority, Mindanao will need 500 MW of new capacity in 2016, another 500 MW by 2020 and 1,600 MW by 2030. Company officials say the Misamis Oriental plant “employs the latest in clean generation through the circulating fluidized bed boiler (CFB) technology.” This technology is “considered as the cleanest process to burning coal” and is also known “for having higher steam generation, thus lowering carbon emission.” C ompany officials add that the CFB process “creates negligible nitrogen oxide levels while generating useful by-products such as calcium sulfate for cement production.” C oal generation is relatively cheap. While 80 per cent of our coal requirements

are imported (mostly from Indonesia), the 20 per cent can be sourced locally. M r. G o t i a n u n w a s not around dur ing the event, having joined our Creator just last March. His daughter, Joji Gotianun Yap, Chairman and CEO of the Filinvest Group, said her father would have been very happy to witness the full implementation of his last legacy project “which provides power at the most affordable cost and in the most reliable way with technology that protects the environment.” Fresh from my email inbox Just could not resist sharing this bit of good news which I received from Don Cesar Teodoro L. Sevilla II, Corporate Governance Of f icer of B ank of the Philippine Islands. “We formally received advice yesterday from the Fund Managers Association of the Philippines (FMAP) and the Institute of Corporate Directors (ICD), that BPI has been chosen as one of the first recipients (Mid-Cap) of the inaugural Institutional Inv e s t or s’ G ov e r n a n c e Awards. “A joint initiative between the FMAP, ICD as well as the Trust Officers Association of the Philippines (TOAP) and Philippine Investment Funds Association (PIFA), t he aw ard i s g ive n by Institutional Investors to listed companies based on their ASEAN Corporate G ov e r n a n c e S c ore c a rd

SPEAKING

O ut

Ignacio Bunye rating. “The recognition will be awarded to the BOD Chairs and Presidents/CEOs of the respective companies on Thursday, October 6, 2016, 12:00 noon, at the Manila Polo Club during the FMAP Investors’ Forum. “BPI is part of the select group of only 15 publiclylisted companies to receive this award, listed below, in alphabetical order: “Aboitiz Equity Ventures, Ayala Corporation, Ayala Land, Bank of the Philippine Islands, BD O Unibank, Energ y Development Corporation, Globe Telecom, Inc., GT Capital Holdings, Inc., International Container Terminal Services, Inc., Manila Electric Co., Manila Water Company, Inc., Metropolitan Bank and Trust Co., Philex Mining Corporation, SM Prime Holdings, Inc., and Philippine Long Distance Telephone Co.” Note: You may email us at totingbunye2000@gmail. com. You may also “like” us at Facebook – “Speaking Out”.

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BSP cuts 2016 inflation forecast

HE Bngko Sentral ng Pilipinas’ (BSP) polic y-making Monetary Board (MB) on Thursday cut the central bank’s 2016 inflation forecast as the rise in the rate of price increases remained subdued. The 2.9 percent forecast for 2017 and the 2.6 percent projection for 2018 were, however, maintained. In a briefing Thursday, BSP Deputy Governor Diwa Guinigundo said average inflation projection this year was slashed to 1.7 percent from 1.8 percent last August due to lower actual print last August. Data from the Philippine Statistics Authority (PSA) showed that inflation last August decelerated slightly to 1.8 percent from monthago’s 1.9 percent. Year-ago rate was far slower at 0.6

percent. In the first eight months this year, inflation averaged at 1.5 percent, below the government’s two to four percent target for this year until 2019. Guinigundo said monetary officials do not expect inflation to become faster in the third quarter even with the impact of election spending largely because of the impact of the rainy season, thus, slower economic activity. He said the pending electricity rate hike was not expected to be approved soon so it was not expected to impact on inflation in the near term. “Of course we expect that by 2017 we should see a return to more robust economic activity,” he said. In terms of the Department of Finance’s

(DOF) proposal to increase the excise tax on fuel and fuel products by about P6, the central bank executive said it is hard to comment on this right now since it has yet to get the lawmakers’ thumbs up. If ever it gets Congress’ approval, Guinigundo said it would result to second round effects such as higher prices of oil products and transport fare. “Basically our preliminar y numbers w o u l d i n d i c at e t h at n ot w it h s t an d i n g t h e adjustment in fuel prices and transport fare the resulting inflation will still be within the two to four percent inflation target for both 2017 and 2018. After all we don’t expect this to be approved or legislated by Congress until 2017,” he added.

Delegates from Liceo de Cagayan University perform during National Tourism Week celebrations at SM City Cagayan de Oro over the weekend. photo by mark francisco

Bangko Sentral ordered to DOF chief hails S&P rating for PH, but disputes return recovered money ‘diminished’ policymaking, political risks Secretary Carlos the corporate sector, and but one that actually lifts and rising uncertainties to Bangladesh central bank FINANCE Dominguez III is heartened raise investments in human significantly more Filipinos surrounding the stability, A PHILIPPINE regional trial court has ordered the Bangko Sentral ng Pilipinas (BSP) to return to the Bangladesh central bank a recovered portion of the $81 million that was stolen from the bank earlier this year, a government lawyer said on Monday. The court has declared Bangladesh as t he r ig ht f ul owner of the funds, totaling $15 million, Ricardo Paras III, chief state counsel of the Philippines’ Department of Justice, said while reading a copy of the court’s ruling to a Reuters reporter. Unknown hackers tried to steal nearly $1 billion f rom t h e B a n g l a d e s h central bank’s account at the Federal Reser ve Bank of New York in early February, and succeeded in transferring $81 million

to four accounts at Rizal C o m m e rc i a l B a n k i n g Corp. in Manila. During a Philippine Senate hearing into the heist which ended in May, a casino junket operator claimed to have received $35 million of the stolen funds but only returned $15 million. It is not clear what happened to the remainder of the money. Bangladesh had to file a petition staking its claim to the money before it could be turned over to them. “(The) court ordered the release of the cash now in the BSP vault in favor of the People’s Republic of Bangladesh,” Paras told Reuters. B ang l a desh is a ls o seeking to recover another $2.7 million frozen by the Philippines’ casino regulator.

by Standard & Poor’s decision to keep the Philippines’ “BBB” rating and “stable” outlook, but disputed the agency’s assessment of a “diminished” predictability o f p o l i c y m a k i n g” a n d the political uncertainty d a mp e n i n g t h e br i g ht economic horizon. “This certainly is good news as it affirms that the Duterte administration is on the right track in pursuing its 10-point socioeconomic agenda that aims to keep the Philippine economy on its high growth path,” Dominguez said in a statement Wednesday. “The continued investment-grade rating gives the new government greater resolve to transform the economy into a truly inclusive one by pursuing, among others, a tax reform plan that seeks to generate enough revenues to grow the middle class, energize

capital and social protection to drastically reduce poverty incidence.” But at the same time, Dominguez argued against t he opinion of S&P that predictability of policymaking in the Philippines has “somewhat diminished.” The finance chief said the administration’s economic pronouncements have been clear and consistent from the ver y beginning. He highlighted the fact that the Duterte administration’s 10-point socioeconomic agenda was announced early -- even prior to the President’s formal inauguration -- and that the action plans to realize the agenda have already been operationalized. “The Duterte administration is loud and clear in its message. We want to achieve a kind of economic growth that is not only robust and sustainable

out of poverty,” Dominguez said. “If one is able to see through the noise created by negative headlines, he may have better and comprehensive understanding of the exciting, positive changes that are ahead of the Philippines,” he added. S&P Global Ratings earlier affirmed its investment grade rating on the Philippines, saying its strong external position is seen to counter the uncertainties surrounding the Duterte government. To date, the credit rater has a ‘BBB’ long-term rating , two notches above junk status, with ‘Stable’ outlook and ‘A-2’ short-term sovereign rating for the Philippines. Its ASEAN regional scale rating is ‘axA/axA-2’. In a statement, the debt rater said its ratings on the country “reflect our assessment of its lower middle-income economy

predictability and accountability of its new government”. “Of fs etting thes e weaknesses is the Philippines’ strong external position, which features rising foreign exchange reserves and low and declining external debt,” it said. S&P Glob a l R at ings cited the new government’s 10-point plan targeted to address poverty situation and achieve peace, among others. “We believe the Duterte administration will broadly continue with the fiscal and e conomic de velopment policies of the previous administration,” it said. The government’s budget gap is seen to average at one percent of domestic output this year even as the government further strengthens its anti-poverty programs. risks/PAGE 11

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Philippine Airlines to get P258-M tax refund THE COURT of Tax Appeals (CTA) has ordered the Bureau of Internal Revenue (BIR) and Bureau of Customs (BoC) to issue a refund or tax credit certificate (TCC) amounting to more than P258 million to Philippine Airlines (PAL). In a decision promulgated on Sept. 9, 2016, the Second Division of the CTA backed the flag carrier’s motion for partial reconsideration of the decision dated May 13, 2016. The said decision granted PAL’s claim for a refund or issuance of a TCC in the amount of P88.54 million, which represent specific taxes it paid when it imported Jet A-1 aviation fuel for its domestic flights from April to June 2005. The Sept. 9 decision also increased the refund amount to P258.63 million, which was the original amount that PAL had sought.

Prior to the issuance of the decision, the CTA held a hearing on Aug. 8 for the presentation of additional evidence by PAL. “Af ter weig hing t he pieces of evidence submitted by petitioner, the Court is convinced that a recomputation of the amount of specific taxes to be refunded to petitioner is in order. The court stands by its ruling in the challenged decision that based on the pieces of evidence on record, PAL complied with the three requisites to be exempt from all taxes under Section 13 of PD No. 1590,” the tax court said. The 6-page decision was penned by Associate Justice Amelia R. CotangcoManalastas, to the concurrence of Associate Justices Juanito C. Castañeda, Jr. and Caesar A. Casanova.

CityMall inks deal with Alsons for Davao City project By CARMELITO Q. FRANCISCO, Correspondent

AVAOCity--CityMall Commercial Centers Inc. (CMCCI) is setting up a shopping mall at the 116-hectare Northtown, a residential complex being developed by homegrown property company Alsons Development and Investment Corp. (Alsons Dev) in the northeastern side of the city. Eric D. dela Costa, Alsons Dev vice president and general manager,said the shopping

center will occupy about 1.5 hectares of Northtown, which is adjacent to an earlier residential project of the firm, the 87-hectare North Crest. “ We h a v e a l w a y s envisioned Northtown to be a complete and self-sustaining township,” said Mr. Dela Costa in a statement sent to BusinessWeek Mindanao. The two companies signed the joint venture agreement soon after Alsons Dev inaugurated the Alsons Public

LISTED real estate developer Sta. Lucia Land Inc. (SLI) on Friday said the construction of its hotels and mixed-use tower expansion projects in key cities nationwide are in full swing, geared towards supporting growth in tourism. “We will continue to

do more to support this buoyant sector as we implement in full swing our projects on tourismrelated assets,” said SLI Chief Financial Officer David Dela Cruz. Dela Cruz said these new projects under the Sta. Lucia brand name "SotoGrande"

FIRST EVER SPORTS TOURISM AWARDS the year to sports tourism event of the year. Most awards will honor both the private sector and government units separately. Selrahco Management, the outfit that has been conducting the Sp or ts Tourism Forum in the Philippines since 2005 will present these awards in collaboration with the Department of Tourism, the Philippines Sports

Safety Complex -- housing police, fire and emergency stations -- located just outside the residential subdivision. CMCCI Chair Edgar J. Sia II, for his part, said the mall, expected to be completed by the end of next year, is among the 100 they plan to build nationwide by 2020. In the Davao Region, CMCCI built its first mall in the nearby Tagum City, the capital of Davao del Norte. “We can clearly see the vision behind Northtown to soon become one of the most

vibrant areas in Davao City,” said Mr. Sia in the statement. The shopping complex will house outlets of Jollibee Foods Corp. brands as well as those of the SM group of companies. Mr. Dela Costa earlier said they are allocating about 10 hectares of Northtown for commercial development. Other companies of the Alcantara group, such as aquaculture products exporter Sarangani Agricultural Co. Inc., will also be setting up shop in the complex.

Sta. Lucia Land’s projects that support tourism in full swing

Mayor Oscar S. Moreno with Pueblo de Oro Development Corporation staff led by its President, Rhoel Alberto B. Nolido (far right) and VP-General Manager Chrysler B. Acebu (fourth from left) during the launch of its latest innovative project, The Enclave at Pueblo Golf, last July 29 at N Hotel. Also in photo are (left-right) Pueblo de Oro managers Mierro Castrillo, Mequesa Marie Chan, and Val Sta. Ana. The Enclave is a new and unique development for those who seek the finer things in life. The 2.2-hectare project is a low-density neighborhood securely located within the Golf Estates and part of the Pueblo de Oro Township in Uptown Cagayan de Oro. This exclusive community is comprised of only 40 townhouse units and nine ridge lots, perfect for people who value privacy and security.

If you have been an organizer of sports events that have attracted tourists to your city, your local government unit c a n q u a l i f y f or s om e prestigious and exciting awards this November. The first edition of the Philippines Sports Tourism Awards is now open for nominations for ten categories of awards, ranging from sports tourism destination of

CorporateWorld

Commission and the P h i l i p p i n e To u r i s m Promotion Board on November 17, 2016 at the Newport Theater, Resorts World Manila. Only sports events that were held or staged in 2015 will be qualified and eligible for nomination which is free. The awards to be presented are Destination of the year, Organizer of the Year - Private, Organizer

of the Year - Government, Domestic Event of the Year, International Event of the Year, Association of the Year, Destination Marketing of the Year, Event Sponsorship of the Year, and Charity Event of the Year. No m i n at i o n s c l o s e at 12 noon on October 21, 2016 (Friday). Please contact Ms. Ella Ayangco at 0922 859 6363 or email selrahcopr@gmail.com.

include a mixed-use tower in Katipunan, Quezon City; full hotel developments in Fairview, Quezon City and Iloilo; and a condominiumhotel project in Davao. The Sta. Lucia Group has developed hotel projects nationwide such as those in Quezon City, Tagaytay, Cainta and Cebu. Department of Tourism (DOT) data indicated that

the Philippines generated e ar nings amount ing to Php127.37 billion from 2.978 million visitors in January to June 2016. This growth rate of 14.7 percent in earnings and 13.7 percent in number of tourist arrivals from prior year period is a good indication of the growth prospects of the tourism sector. (PNA)

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Australian doctors perform free cleft lip surgery By MARK FRANCISCO

FIFTY-seven patients from as far sa Zamboanga Peninsula and neighboring cities and provinces of Cagayan de Oro benefitted the recently concluded Interplast Surgical Mission for cleft lip and palate by the Australian and New Zealand doctors at JR Borja General Hospital in

cooperation with the Rotary Club of Cagayan de Oro. Dr. Kevin Ho, Interplast team leader, said seeing the qua lit y of staff and leadersh ip of J R B or ja General Hospital and their motivation to learn and to help people especially the less fortunate ones, encouraged

the team to embark into a more challenging task - and that is the transferring of knowledge by training the local surgeons and nurses of JR Borja Hospital to perform the operations. The team, who performed t he operations from September 12 to 21, was composed of two surgeons, one guest physician, two anesthesiologists and two nurses. Now on its 18th year, the Put a Smile project was

organized by Inter plast Australia, a not-for-profit organization working to improve the quality of life for people with disability as a result of congenital or acquired medical conditions such as cleft lip palate or burn scar contractures. They do this by sending fully qualified Australian and New Zealand volunteer plastic and reconstructive surgeons, anesthetists and allied health professionals elsewhere in Asia Pacific

to provide free surgical treatment for patients who could otherwise not be able to afford access to such services. Here in Cagayan de Oro, they’ve been hosted since 1998 by the Rotary Club of Cagayan de Oro. It is the Rotary Club of Cagayan de Oro which c o ord i nate s t he ent i re program, helps the visitors identif y a nd screen b enef ic ia r ie s , prov ide s securit y a nd in-la nd transportation and their

other needs. The surger y for a patient usually takes an hour. Such operations cost around P100,000 here in the Philippines or A$20,000 in Australia but Interplast Australia conducts it for free in Cagayan de Oro City. I n 2 013 , I nt e r p l a s t Australia has dispatched 42 missions elsewhere in Asia Pacific – Cambodia, China, Indonesia, Myanmar, Laos, Nepal and other places in the Philippines.

Study Shows It Pays to Be a Digital Leader Digital Leaders Drive Stronger Financial Performance and Employee Engagement Through Strategy, Speed and Inclusiveness Only one in five business executives is a Digital Leader*, a new study conducted by Oxford Economics and sponsored by SAP SE (NYSE: SAP) shows. A new class of leaders is emerging that embraces a digital mind-set and reports stronger business outcomes as a result. The Leaders 2020 study is based on survey results f rom more t han 4 , 0 0 0 executives and employees in 21 countries. The research identifies the characteristics of organizations that are succeeding in the digital economy. The majority of organizations could benefit from adopting the digital leadership practices identified in the research. Here’s why it pays to be a Digital Leader: Stronger financial p e r for m an c e : S e ve nt y six percent of executives characterized in the study as Digital Leaders report strong revenue and profit growth, compared to 55 percent of all other executives surveyed. Satisfied and engaged employees: Digital Leaders have employees who are more likely to be satisfied (87 percent) at their work, compared to 63 percent of all other respondents. An inclusive culture and strong leadership pipeline: Digital Leaders have employees who are more likely to stay in the job even if given the chance to leave, 21 percentage points higher than all other respondents. “It’s clear that a different

kind of leadership is required to succeed in the digital e c o n o m y,” s a i d M i k e Ettling, president of SAP SuccessFactors**. “People, particularly millennials and the generations behind them, expect more inclusive and social leaders, more diversity at the leadership level, and less hierarchy. Technology plays a role in giving us, as leaders, access to insights needed to make decisions quickly, and to attract and develop the next set of leaders.” According to the study, today’s Digital Leaders: Simplify decision making: Four out of five (80 percent) Digital Leaders make decisions that are data-driven, and nearly two out of three (63 percent) report that their organizations are capable of making decisions in real time, compared to only 55 percent and 46 percent respectively of others surveyed. Digital Leaders are more likely to be transparent and to distribute decision making throughout the organization.

Prioritize diversity and inclusion: Organizations leading in the digital economy are more likely to see more diversity in the workforce at midlevel management, and have a higher proportion of female employees than other companies. These companies are also more likely to have diversity programs (46 percent versus 38 percent of all companies), recognize diversity’s positive impact on culture (66 percent versus 37 percent) and equate increased diversity to financial performance (37 percent versus 29 percent). Despite some organizations outperforming their peers in this category, the study found room for improvement among all levels of leadership. Only 39 percent of employees believed their company has effective diversity programs in place, while less than half (49 percent) of executives believe that leadership recognizes the importance of diversity, and has taken steps to develop it.

Listen to younger executives: The study found that millennials are quickly occupying corporate leadership positions, as 17 percent of the senior executives in the study are classified as millennials. M i l l e n n i a l l e a d e r s are m ore p e ss i m i st i c t h an ot her exe c ut ives ab out their organization’s digital readiness. These younger executives ranked their organization’s leadership skills between 15 and 23 percentage points lower than nonmillennial executives across a variety of attributes, including facilitating collaboration, managing diversity, providing feedback and discouraging bureaucracy. Millennials will soon make up 50 percent of the workforce, so they will have a powerful voice to shift corporate culture. What they say really matters. And they are saying: Time for change. “These findings should serve as a wake-up call for business leaders,” said Edward Leader/PAGE 11

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Sikat ka Higala By SHERYL MACALE

When I came back from New York I had made a deal with God to serve him and give help to those that needed it and share what I have to clothe, to feed and to give the right to freedom and hope. I was walking on the streets and find so many homeless people, hungry and helpless. I talked to them and ask them about their story and they all have a story to tell. The charity that I do now is an inspiration all in the commitment that I have with God and I am

willing to serve Him by serving the poor. I have been almost in a 3 year old charity now, with my organization called Hope for the Deprived organization, every Christmas the project is called Give a Gift project. I go to public hospitals by the pedia ward I visit sick kids and basically cheer them up with prayers, toys, books, diapers and milk and just about anything. Last year The Rock Church Ministries of New york has donated 3 boxes of assorted gifts for

the children. You cannot imagine how I felt seeing the happiness from their eyes. The parents were so grateful that atleast at one time the pain and worry went away for awhile. The Tahanan ng Kabataan and Boystown has a very good place in my heart I have been helping this kids for quite some time. I receive an invitation from a good friend of mine Alain Pacatan to join the Rotary Club from the west. This club is an internatonal club existed since the 1905 Paul Harris the founder has stated that whatever the Rotary may mean to the world it will be known by the result it achieves. With a pure humanitarian cause. With a 4 way test of the way we think, say or do. I was totally convinced to joined them when I was recieved warmly by the members. All caliber members with a highclass position in the society. A composition of very humble people with a humble heart. It is family I fit perfectly in very cozy. It has fun and enthusiasm to it. Recently they have put a new project called the Skyhydrant Project. It is a water filtration unit

developed by SkyJuice Foundation of Australia, it will convert raw water, source from springs into portable and safe drinking water. The first recipient awarded to is Bayanga, a little distant from the City proper of Cagayan.It has a population of 2,768 and about 990 household who will benefit from this project and sooner it will become a income generating to the barangay to be able to sustain and maintain the facility. I was able to witness and was very proud for the turn over of the project to the residenst. I have spoken to the barangay

Chairman and he was very pleased that finally they have safe water to share to the families. They are vey grateful that Balay Mindanaw has chosen them as the recipient and one more for Dansolihon soon and 200 other Shyhydrants will aslo be given to worthy recipients. To fight and not to heed its wounds, to toil and not seek rest, to labor and not to ask for reward save that doing the will of God. It is a complete commitment that serving others is knowing your purpose I would like to congratulate the Rotary Club West

and its members to our President Erna Maagad to Franco Catajoy the project chair and that we set an example that our worth is what good we have given to the world and that we have given hope because the only constant in this world is change. Recently I have just been inducted and now I am full pledge Rotarian of Club West. I will also will do my part and my obligation to the club to fulfilll my duties to implement the by laws and my allegiance.May we all continue to bless others by the lives we live. To the Rotary Club West Sikat Tayo Mga Higala.

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Collaborate... from page 1

together.” “The objective of my visit was really to help me understand better some of the key development challenges in the Philippines, understand the program that we are working on, and discuss with key government counterpart, how they see the World Bank support to the Philippines and what more we could do together,” she said. Among the cabinet members whom the WB executive met with were Vice President Leni Robredo, who heads the Housing and Urban Development Coordinating Council (HUDCC), Finance Secretary Carlos Dominguez, Budget Secretary Benjamin Diokno, Socioeconomic Secretary Ernesto Pernia, and Presidential Adviser on the Peace Process Jesus Dureza. She said no specific plans or support have been firmed up yet as to the approach, as the WB representatives are still discussing with government officials on how the WB can work with them as guided by the policy directions of the Duterte administration. But Kwakwa said the peace process and how to make poorer Filipino families enjoy the country’s economic growth were among the main highlights during her meetings. “The common theme that has come out in my c onv e r s at i on w it h t h e government, based on what I have heard very loud, is the importance of government’s peace and development agenda in Mindanao and seeing this as an integral part of its efforts to really reduce poverty and to make sure that poorer citizens of the Philippines also enjoy the growth that the country is experiencing,” she said. She commended the willingness of the government to “put in the effort and resources” in terms of shoring up public infrastructure i nve s t m e nt s for s o c i a l protection and economic infrastructure. She said the new administration’s 10-point s o cio e conomic agenda, as presented to her by Dominguez, is very well in line with the World Bank’s objective that is to eliminate extreme and poverty and promote shared prosperity. Kwakwa said “we support very much” the key elements of the 10-point agenda, the focus on “enhancing the public infrastructure investments in trying to close that huge infrastructure deficit as a way of continuing to stimulate growth and doing it in a way that benefits the poorer citizens in the society.” Kwakwa said that they are willing strengthen the World Bank’s support in agriculture as she acknowledged the important role of agriculture especially in Mindanao. “We are willing to step up our engagements in areas such as agriculture (as) majority of the poorer

Filipinos make a living from agriculture,” she said. She added that developing the agriculture sector and strengthening it to become the base for industrialization through “agro-industry can really be a driver of growth – a growth that creates meaningful jobs for Filipino.” “The way we look at it is that that government is quite well-resourced. The Philippines is very fortunate to have a healthy fiscal position. I think it’s not too much about huge amounts of money but it’s more about bringing our money to help government use its considerable resources better in support of agriculture in Mindanao,” she said. She said that WB will discuss with the government ways on how the problems besetting the agriculture sector can be solved through effective mechanisms and systems that “allow government to use its own resources even better.” “That really should be the focus, I don’t think financing is really the main constraints in the Philippines at this point in time,” she added. On housing, Kwakwa said it is necessary to widen access of poorer families to affordable housing that she said is part of addressing poverty in Metro Manila and in other urbanized areas.

SanMig... from page 1

other entrepreneurs, Ang said “Yes, we are willing to take the risks just so we could help President Duterte achieve peace and stability in the Southern Philippines, especially in the troubled island of Sulu.” Piñol said the conglomerate will put up a 20-megawatt power plant for the main island. “For the small islands, I will ask the Department of Energy to establish solar farms,” he noted. To boost agriculture in the area, Piñol added SMC will also establish a medium-sized feed mill facility using the corn and cassava produced by Tausug farmers. The DA will supply the tractors and equipment, planting materials and seeds, fertilizers and technology for corn and cassava farming, he said. The agriculture chief further said the conglomerate will engage the people of Sulu in the contract growing of poultry which could be exported to nearby Sabah. “(It is) a poultry contractgrowing scheme where Tausug farmers will be trained in raising broiler chicken which will be bought and processed by San Miguel Corp. into ready-to-eat roasted chicken,” Piñol added. He pointed that the province does not even produce enough chicken for its people’s consumption. Piñol said the broiler chicken supply comes from as far as Davao City, General Santos City, Cagayan de Oro and Zamboanga City. “A s S e c r e t a r y o f

Agriculture, I assured Ramon Ang that the needed support equipment, services and training will be delivered immediately,” he added. (PNA)

Filinvest... from page 1

The school, which will be called Andrew L. Gotianun, Sr. Center for Integrated Te c h n o l o g i e s , X a v i e r University, is envisioned to produce graduates who a r e w o r l d - r e a d y, w i t h i nt e r n at i on a l s t an d ard competencies, and spiritual and social commitment. AGFI shall finance the construction of the school buildings, workshops, and dormitories, as well as the provision of furniture and other equipment, IT, TechVoc machinery and transport vehicles. The Foundation also commits to partly finance the annual operating costs of the senior high school for the first five years of operations so all its students can attend as full, live-in scholars. Dedicated to the memory of Filinvest Founder Andrew L. Gotianun, Sr., the school represents his advocacy for e du c at i on an d h i s commitment to the progress of Mindanao.

NGCP... from page 1

the bill originally proposed in the previous Congress by House Representatives. The company aims to get the support of the present House Committee on Energy chaired by Rep. Lord Allan Velasco of Marinduque and the Senate Committee on Energy led by Sen. Sherwin Gatchalian, in pushing for the enactment of the said bill. The “Act prohibiting the planting of plants and trees, and the construction of any structure under or within the right-of-way clearance of all power transmission and distribution lines and providing penalties for violat ion t here of ” wi l l authorize private gridoperator NGCP, distribution utilities, and electric cooperatives to immediately cut or prune trees, and remove any obstruction to power line. The law, when enacted, is expected to eliminate substantial delays in NGCP’s project construction and regular maintenance activities, particularly with uncooperative landowners and claimants who maliciously plant trees and build structures within the ROW clearance, and demand exorbitant amounts before allowing NGCP access to the property. Support in the form of legislation will ultimately be for the benefit of power consumers. The issue on settling ROW cases has delayed both current and new projects of NGCP. It is also a recurring and worsening issue, especially in Mindanao and North Luzon. With the Act, we can expedite the process and improve our turn-around time. The sooner we can

complete our projects and maintain our lines, the sooner we can provide secure and reliable power transmission services to the people. We are appealing for the support of our Congress and Senate Committees on Energy by refiling the bill and pushing for its expedited enactment into law, stated NGCP. NGCP is a privately owned corporation in charge of operating, maintaining, and developing the country’s power grid. It transmits highvoltage electricity through “power superhighways” that include the interconnected system of transmission lines, towers, substations, and related assets. The consortium, which holds the 25-year concession contract to operate the country’s power transmission network, is comprised of Monte Oro Grid Resources Corp. led by Henr y Sy, Jr., Calaca High Power Corporation led by Robert Coyiuto, Jr., and the State Grid Corporation of China (SGCC) as technical partner. (NGCP)

Hurst... from page 4

break! But when you put your life in Jesus Christ’s hands, the right, important Person is always watching you and all that you do. Then He will reward and bless your life in many ways as you do your very best to please Him in everything everyday. Just Think a Minute .

Risks... from page 6

The debt rater projects that the government’s fiscal deficit will result in a drop to about 18 percent of gross domestic product (GDP) of the net general government debt burden in 2019 from its peak of 28 percent of GDP in 2010 and this, it said, “represents a ratings strength”. Pressure on institutional settings With this, the credit rater said “the rising pressure on the Philippines’ institutional and governance settings has the potential to hamper the ability to develop and implement swift polic y responses”. Despite this risk, the credit rating agency believes that the country’s external payments position, backed by rising foreign exchange reserves among others, will remain strong. The country’s current account, which has been in surplus for more than a decade now, “is likely to remain in surplus” at an average of two percent of domestic output until 2019. It said that the country’s competitive unit labor costs vis-a-vis its peers along with a large young, educated, and flexible labor market “imply further strength in services exports over the next five years”. “Participation in free trade agreements could provide further upside to the Philippines’ export earnings,” it said.

The Philippines’ net external creditor position is seen to remain in place, with net external debt average projected at -16 percent from this year until 2019 and external liquidity position at about 67 percent during the same period. “We do not envisage a marked deterioration in the Philippines’ external financing from a shift in foreign direct investments or portfolio equity investments, or from a reduction in disbursements from donors,” the statement said. The debt rater said the ‘Stable’ outlook on its ratings on the country “balances t h e P h i l ippi n e s’ l owe r middle-income economy and diminishe d p olic y stability, predictability and accountability against its strong external position, which features rising foreign exchange reserves and low and declining external debt.” EJKs a problem It said, however, that reports on the extrajudicial killings “could undermine respect for the rule of law and human rights, through the direct challenges it presents to the legitimacy of the judiciary, media, and other democratic institutions”. “When combined with t h e p r e s i d e nt’s p o l i c y pronouncements elsewhere on foreign policy and national security, we believe that the stability and predictability of policy-making has diminished somewhat,” it added. For his part, Bangko Sentral ng Pilipinas Governor A m a n d o Te t a n g c o Jr. said sustained policy and structural reforms continue to support the Philippines investment grade ratings. “The Philippines’ ability to keep its credit rating well within the investment grade scale, which has transcended change in political leadership, is a testament that the country’s economic gains have been built from deeply rooted structural and sound policy reforms over the years,” Tetangco said. “ Through continued conduct of sound monetary policy and prudent bank super vision, as well as efficient management of the country’s external accounts, the BSP will help make sure these economic gains are further enhanced moving forward,” he added. Despite the rising institutional risks it flagged, the credit rating agency said it believes that the country’s external payments position, backed by rising foreign exchange reserves among others, will remain strong. In August, the country’s gross international reserves (GIR) stood at USD85.8 billion, enough to cover over 10 months’ worth of payments of goods and services.

Leader... from page 8

Cone, deputy director of Thought Leadership at Oxford Economics, who oversaw the research program. “Your employees, your younger

executives and your financial results are all sending you a clear message about the importance of updating and upgrading leadership skills for the digital age. It’s time to listen and lead — or get out of the way.” To learn more about the study and see how you can become a Digital Leader, visit here. For more information, visit the SAP News Center. Follow SAP® SuccessFactors® solutions on Twitter at @SuccessFactors and SAP at @sapnews. *Digital Leaders are a group of executive respondents who were identified based on their responses to the survey questions. Cluster analysis was performed by Oxford Economics to determine what attributes best fit together in the analysis — these attributes were considered the “profile” of Digital Leaders. This group of executives’ responses were then correlated with outcome measures: revenue and profit growth and employee satisfaction and engagement. The organizations that these executives’ responses represent are called “Digital Winners” in the research. **SAP SuccessFactors is a new brand name launched in January 2016 and is used here to mean the offerings, employees, and business of acquired company SuccessFactors, which continues to be our legal entity until integration with SAP is complete. About the Study Oxford Economic surveyed more than 2,050 executives and 2,050 nonexecutive employees in 21 countries and across multiple industries during the second quarter of 2016. The executives surveyed included both C-levels and their direct reports. Roughly 48 percent of the sample is from the C suite. Employee roles range from entry-level to line-of-business management. About Oxford Economics Oxford Economics is the world leader in global forecasting and quantitative analysis for business and government, and the most trusted resource for decision makers seeking independent thinking and evidence-based research. Headquartered in Oxford, England, with offices in London, New York and Singapore, and elsewhere around the globe, the firm employs more than 150 professional economists, industry experts and business editors — one of the largest teams of macroeconomists and thought leadership specialists. About SAP As market leader in enterprise application software, SAP (NYSE: SAP) helps companies of all sizes and industries run better. From back office to boardroom, warehouse to storefront, desktop to mobile device — SAP empowers people and organizations to work together more efficiently and use business insight more effectively to stay ahead of the competition. SAP applications and services enable approximately 320,000 business and public sector customers to operate profitably, adapt continuously, and grow sustainably. For more information, visit www.sap. com.

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