PSF Annual Report 2012

Touching HeartsChanging Lives

annuaL reporT 2012

The worst of times bring out the best qualities in the Filipino. This is a conclusion that we have observed every time there are challenges that test the Filipino spirit. In times of trial, there is no rich or poor – and the gap that usually divides them does not exist at that moment. Instead, there are only hands helping each other, minds and hearts bonded together by the common resolve to help those in need.

It is this image of brotherly cooperation, selfless generosity and innate kindness that push our personal limits to help improve the lives of others. More than just ensuring that our businesses are running efficiently, we go out of our way to build and rebuild lives. This concept of ‘kapatiran’ and ‘malasakit’ have been proven especially during natural disasters such as typhoons Sendong in 2011 and Habagat and pablo in 2012.

Like in every calamity, people’s basic needs are affected – water, electricity, communications and connectivity. It is a moment when we find ourselves and our businesses at the forefront of effecting change in the lives of our fellow Filipinos.

The call to respond in times of disaster and calamity has become the driving force not only within the pLDT Group but also within the broader MVp Group. Highlighting the values of kinship and convergence, we formed Tulong Kapatid, an encompassing initiative that combines the abilities, expertise and the innate instinct to reach out to others.

Like a band of brothers, the help transmitted is multiplied. Thus the desired effects in relaying basic services and relief operations are fast-tracked, and become more tangible and felt. Tulong Kapatid is more than just a slogan and a siren call; it is the spirit that demands the best from within our own selves in the worst of times.

But more than that, what is truly touching is that big businesses are not the only transmitters of charity. I was told of stories of how a simple market vendor would donate her hard-earned p100 from her earnings for the day in order to procure relief goods for the typhoon victims of Cateel and Boston in Davao oriental. or the family of a tricycle driver who squeezed into their own tricycle just to deliver more donations. I am always moved by the smiles and tears of joy in the faces of our beneficiaries when we reach out to them.

This sentiment can always be found every time we reach out to others, especially in the aftermath of a disaster. as businesses owe its successes to the communities and people it serves, the unwritten commitment to give back and share resources, wealth and wisdom is what truly defines the essence of what we do, something that we hope would be inculcated in each and every Filipino. These are essential in building a stronger, wiser and better nation.

In the course of conceptualizing CSr programs for our target beneficiaries, we have relied on partnerships between the public and private sectors to make these programs successful and sustainable. pLDT-Smart Foundation’s advocacies in education, poverty alleviation, disaster risk reduction, and environmental protection benefit from the cooperation of individuals, organizations and businesses.

now, in a time when seamless interconnection blurs economic and political boundaries, equalizes people of different backgrounds, and unites diverse communities into a converged world, let us work hand in hand in connecting people, uplifting lives and nurturing communities. Let us create a world where people create lasting relationships, and truly share each other’s wealth and experience.

Manuel V. Pangilinan

MeSSaGe FroM THe CHaIrMan

as businesses owe its successes to the communities and people it serves, the unwritten commitment to give back and share resources, wealth and wisdom is what truly defines the essence of what we do, something that we hope would be inculcated in each and every Filipino.

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pLDT Group’s Corporate Social responsibility

at the pLDT Group of Companies, Corporate Social responsibility (CSr) is grounded in our belief that an

integral part of our business is the imperative to help improve the overall well-being of the Filipino people. To achieve this goal, we will address proactively the interests of our various stakeholders. We believe that as we seek to enhance value for our shareholders, we have a responsibility to:

• provide quality products and services for our customers• Develop our employees• Work with our suppliers and business partners in an

ethical and mutually beneficial manner• Care for the environment• Improve our communities

We are conscious about the proper management of our finite and fragile environment and are taking tangible measures to lessen our carbon footprint. We will continue to invest in technical business solutions that both cut our costs and help save the environment.

By succeeding as a corporation, we create wider opportunities for employment, entrepreneurship and the greater well-being of all Filipinos. We believe that as we help raise the overall economic welfare of Filipinos, we expand the market of our products and services. The core of our Company’s business strategy is the desire to “Change Lives for the Better”.

About the coVer

as technology evolves and constantly redefines itself, what is important is how these innovations transform lives and redefine our future. Two children whose hands are reaching out to a heart-shaped wall collage grace our cover. Just as the heart is the place of convergence for every drop of life-giving blood, pSF’s CSr endeavors hope to touch the hearts of every Filipino in order to change their lives and uplift their communities.

02 Message from the Chairman

05 Message from the president

06 Touching Hearts

14 Board of Trustees

16 Changing Lives

26 reaching out

36 Financial report

ConTenTS

as a major telecommunications conglomerate, the pLDT Group aims to provide the best, most effective and efficient service so that people and businesses can have seamless connection: people need to connect with loved ones despite the distance,

while businesses and institutions require 24-hour connectivity in order to operate well and fulfill their obligations. nevertheless, our commitment to seamless connection goes beyond communications.

our work in corporate social responsibility and philanthropy is as rich as the many situations and personalities we encounter. and many times, we think that we get more from those who receive our help, making the experience worth doing over and over. as we touch lives, we are touched in return.

To be able to transform the way people think and lead their lives can be overwhelming. every time we coordinate with institutions and persons who seek our help, we feel the tremendous challenge to successfully bring a positive and lasting impact to those who benefit from it. From planning to execution, nothing drives us to strive for perfection but the smile from a child’s face or the messages of gratitude from our scholars. They may not realize it, but helping them can be rewarding in itself; we get to experience the satisfaction and honor while remaining humbled by the privilege of helping others.

Through our transformative programs and endeavors, effecting change in the lives of many Filipinos does not feel burdensome or obligatory; rather, there is a feeling of fulfillment as our recipients translate them into positive results.

The Gabay Guro program, since its inception in 2007, has since supported hundreds of future teachers to become effective messengers of information and knowledge through training, additional livelihood opportunities, improving communications technology learning in classrooms, and even providing them with decent housing.

project pagsulong, our newest project launched in 2012, brings out the best in our youth as they answer the call for innovative business ideas. using their creativity, ingenuity, strategies and available resources, we have invited young Filipinos to help in the campaign to alleviate poverty in society while at the same time, have encouraged them to become successful entrepreneurs.

another project worth mentioning is our strategic partnership for the Dynamic Learning program of Dr. Chris and Marivic Bernido, two respected science educators who started this innovative learning system in their school in Jagna, Bohol. By supporting the scientist-couple, we hope to change the way Filipino students learn and appreciate education in the 21st century and build a country of science scholars and workers as we learn together as one nation.

The goal to reach out to as many Filipinos does not end there. In times of disaster, nothing is more important than having an immediate and expansive response to the cries for help and assistance of those affected by calamities. our employees in pLDT and Smart have proven once more their commitment to help during relief operations in the wake of the Habagat and Typhoon pablo in 2012. More than that, we did this in partnership with the different entities within the First pacific Group, who along with pSF have allied themselves in Tulong Kapatid, effectively addressing many concerns in disaster preparedness and recovery.

To touch hearts, to change lives, to reach out to those in need – the pLDT-Smart Foundation does not stop in answering the call to transform lives and communities. as we go about initiating new projects and continuing those already started, we realize that we cannot merely define and analyze what brotherhood and kinship is all about – rather, we pass these notions through our hearts and minds to generate acts that truly bring us closer to becoming one family, one community and one nation.

Ma. esther o. Santos

MeSSaGe FroM THe preSIDenT

Through our transformative programs and endeavors, effecting change in the lives of many Filipinos does not feel burdensome or obligatory; rather, there is a feeling of fulfillment as our recipients translate them into positive results.

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touching hearts

ManueL V. panGILInanChairman, pLDT

My journey to cSr work started when i was in college. every Saturday, we would teach Catechism at the national Mental Hospital

in Mandaluyong. once a month, on a Sunday, we would be with the poor in Sapang palay.

the greatest challenge for our country is poverty alleviation. Through the pLDT Group, we can do more to help improve the economic welfare of our people.

being involved in cSr, the most important lesson that I have learned is helping the poor is a must for business.

My cSr heroes are Bill Gates and Warren Buffet because they not only gave their wealth but are also spending time to do CSr work.

The relief operations and post-disaster work for Typhoon ondoy was a memorable experience for me.

My journey to cSr work started when I was invited by a Filipino nGo to assist

them in some of their projects for women. Since then, I had seen the impact that work-ing with underprivileged groups can have when we help them uplift themselves.

the greatest challenge for our country is quality education and creating jobs and businesses to impact the lower income segment or the Bop; and through pLDT-Smart Foundation, we can do programs that address problems related to these sectors, even if the solutions do not always come in the form of our telecommunications services.

being involved in cSr, the most im-portant lesson that I have learned is to listen and be one with the people we are trying to help.

For me, the most relevant role of cSr is to support people who want to improve their lives and to help build the nation.

My cSr hero is MVp and to a large ex-tent, my parents who have taught me with their example of generosity and caring for others.

We are touching lives by investing in our people’s future and giving opportunities and access through better education and livelihood.

Two experiences come to mind where I have witnessed true servant leadership in CSr.

The first occasion when I had a chance to work with MVp in a disaster response setting was amidst the most unpleasant circumstances with the rains of pedring

and Quiel pounding on Luzon last october 2011. upon hearing the news, MVp imme-diately called a small team to his MGo office on a Saturday! I don’t know how everyone managed to make it, but we were there by 11, ready to take instructions from the Boss. His take charge attitude brought us out of our comfort zones, and we were soon running and making calls to check on our facilities and our people. He asked us how many rescue boats we had, how many re-lief packs we can get ready. I still cannot get over how quickly MVp decided, and a team was asked to gather the funds and acquire some new rescue boats for deployment aSap. and the next day, Sunday october 2, 2011, we were all in pampanga and Bula-can together with MVp meeting with may-ors, the red Cross and distributing relief goods.

again, MVp’s speediness in responding during times of great need was manifested when Typhoon pablo struck last December 2012. even if he was out of the country at that time, he once again united our troops to mount the first TV5 Telethon. This effort brought in a record (of more than) p100 million in less than a day of the telethon. also inspiring was that this amount was reached through the generosity of the big companies such as those that belong to the First pacific Group, as well as the simple folk who gave up their “alkansya” savings think-ing this money can better help the families in Davao oriental and Compostela Valley who have lost everything, rather than spend it on their Christmas celebration that year.

Ma. eSTHer o. SanToSpSF president

annuaL reporT 2012 / 7

raMon r. ISBerToTrustee/ Head, pLDT-Smart public affairs

My journey to cSr work started when I was a college student and

I joined relief work for floods in Cen-tral Luzon. In Smart, it started with an airplane crash in 1998. Smart was a very young company at that time and it didn’t have a formal CSr program then. When the mayor of the town was interviewed on television, he was ask-ing help from Smart because we were the only ones that had a signal in the area. When MVp found out about it, he said: “o Mon, tumulong tayo diyan.” We sent a team to help set up what is probably the first Libreng Tawag Cen-ter. It was very instrumental as it was used by the families of the victims and by the rescue team because there was a signal in the crash site.

Speaking from the context of a mobile phone company like Smart, it is natural to get involved with CSr since wireless and mobile phone communi-cation is an important tool for many kinds of activities that can benefit a lot

of people if you do CSr work. There’s a lot that you can do because commu-nications is an enabling tool.

the greatest challenge for our country is inclusive economic develop-ment; and through pLDT and Smart, we can enable people with ICT.

being involved in cSr, the most important lesson that I have learned is you need to build good partnership.

For me, the most relevant role of cSr is to strengthen the company’s ties with the community.

You have to hand it to MVp as you can see him handing goods to beneficiaries during calamities. I also admire the Bernidos couple because they are good partners to work with, their hearts are in the right place and they know what they do.

We are touching lives by en-abling people and communities to im-prove their lives.

a memorable experience for me was the visit to Davao oriental after

the devastation of Typhoon pablo. The magnitude of the destruction was very wide – and it was shocking to see how coconut trees were flattened by the force of the typhoon. It was a big blow to the residents but with the help of organizations such as the MVp Group, we were able to provide livelihood, housing, and relief.

CHaYe CaBaL-reVILLapLDT FVp and Comptroller/Gabay Guro Chairperson

My journey to cSr work started when I was still very young as I

have witnessed how my family shared their blessings and helped others in

times of need. at pLDT, Gabay Guro was able

to start because I have friends who share the same c o m m i t m e n t and passion for serving

others. a l l

o f

us at Gabay Guro are motivated to give back to society through honoring our teachers. It is all about volunteerism and no one needs to push us, we are motivated to reach out to more teachers so they will feel empowered to also motivate their students.

the greatest challenge for our country is poverty, that’s why we did Gabay Guro to fight the ills of poverty through education. I believe that education is a great equalizer and a powerful tool to change lives and be free from the grip of poverty.

being involved in cSr, the most important lesson that I have learned is that we are so blessed, that’s why we have to share to others. We are just a vessel and we need to share our blessings especially to those who need and deserve them. God has given us so much and it is only appropriate to share.

For me, the most relevant role of cSr is empowering those who need our help, such as the teachers. If not for

them, how do we ensure a bright future for the next generation? CSr programs, such as Gabay Guro, gives us the vehicle to change the lives of those who change the lives of the youth.

My cSr hero is my family, especially my father, because they taught and showed me the value of being a blessing to others by being kind and generous.

We are touching lives by uplifting the lives of our modern-day heroes, the teachers.

a memorable experience for me in doing CSr work is when a teacher from Surigao, went all the way to the pLDT office just to send her appreciation. In fact, she even got lost and got down in Guadalupe. From there, she walked all the way to the pLDT office carrying a bayong full of fresh vegetables. I could not forget her effort and I was so touched with her gesture. When I think about it, all our stress and pressure melts away and we want to further touch the lives of so many other teachers through Gabay Guro.

eVeLYn M. DeL roSarIoHead, pLDT Community relations Division, public affairs

My exposure in the world of corporate social responsibility (cSr) actually

started when I was only eight years old. It was such at an early age when I took it upon myself to share old clothes and food with our farmers back then in Isabela. I helped my grandfather-mayor to distribute food and whatever assistance needed to our much less fortunate constituents. although I didn’t have any inkling and wasn’t really aware that I was already doing CSr works since I was just following after what I was witnessing from the benevolent acts of my grandfather-mayor. I was just imitating the kind of life that I was being exposed to. I felt good doing them nonetheless and didn’t have the slightest idea that fast forward to the corporate milieu that I am right now, I will primarily be doing CSr – the most part of which is devoted and dedicated to doing it and I feel the very same emotions that I felt when I was still eight years old. and, as if adding some parallelism into what I will eventually be doing, in 1976, I received a scholarship study grant in Cornell univer-sity with a program on policies and strate-gies for aiding the urban and the rural poor.

the greatest challenges for our country are in the areas of education and environment; and through my company pLDT, we should be more active and imple-ment more programs for education and environment. Which is what we are doing at pLDT Community relations. We focus on educational and environmental programs.

For education, we have programs such as the following: a) pLDT Infoteach outreach program. a flagship project which provides learning opportunities for public high school students as well as el-ementary and high school teachers from across the nation to upgrade their cyber technology skills through internet and basic IT education; b) Donation of school building and classrooms, pCs and establishment of computer laboratories; c) pLDT-upou on-line Teachers Development program ; d) Digital Literacy for Women.

For environmental programs we have pLDT “TeLepuno” tree-planting in partner-ship with the Department of environment and natural resources (Denr), philip-pine Business for Social progress (pBSp), Multi-Sectoral Watershed Management Council, Inc. (MSWMC) and the local gov-ernment of Infanta and real, Quezon. Launched during the 80th anniversary of pLDT, a five-year tree-planting program covering 80,000 seedlings aimed at regen-erating the natural ecology of 80 hectares of Infanta-real Quezon watershed forest reserve. This benefited at least four peo-ple’s organizations with 80 farmers. In time for pLDT Chairman Manuel V. pangilinan’s 66th Birthday in 2012, pLDT Community relations spearheaded the Company’s en-vironmental greening project dubbed 66K M.V.p. (Movement for Volunteerism and partnership) Trees with the objective of planting 66,000 seedlings participated in

by the MVp Group of Companies. areas covered include Benguet,pampanga, Bula-can, Marikina,Iloilo, Cebu and Davao.other programs are coastal, highway and river clean up, support to earth Day celebration, mangrove planting, among others.

being involved in cSr, the most im-portant lesson that I have learned is to be passionate in all the CSr projects you are doing and to be more effective, you should really involve yourself, interact with the communities and lead by example. You should have the passion to do the job and understand what is really needed. I believe that these have been my guiding principles each and every time we undergo a commu-nity project and I must say that I owe it a lot to the men and women in pLDT. I call them volunteers, for without them, our project will never be as fruitful and as successful that we envision them and how they turn out to be. Being passionate and being with my volunteers are the most important les-sons I have learned in the span of time that I have been doing CSr projects. I can nev-er do without my volunteers, since, I want them to be as passionate as myself if only to achieve success when it comes to CSr works. This is what we have been espousing all through these years that we have been doing our CSr initiatives – employee-volun-teerism.

For me, the most relevant role of cSr is helping people face reality and mo-bilizing them to make change necessary in uplifting their lives and rising up again and again from the crises that continue to be-hoove them. To alleviate poverty as well and be ready to give and extend a helping hand especially in times of calamities and disas-ters. In the span of time that I have been

into CSr, I have realized that there’s nothing more fulfilling than being able to help people and feeling and sharing with them how it is to face reality and continue to rise up after every fall. and you can’t do this alone. You have to be with people who have the same resolve and passion to help, hence our em-ployee-volunteerism program.

My cSr hero is pLDT Chairman Manuel V. pangilinan. MVp because he is ultimately the epitome, the father of CSr in pLDT. He leads us in espousing and doing CSr works. He sets the highest standard of volunteerism among our employees. He makes himself available in the pLDT CSr programs. as I’ve always said, I real-ly admire MVp because given his stature as a businessman, he has a big heart for the poor and in times of calamities, he is the first to initiate moves to help. Celebrat-ing one’s special day with the people he can help and be with for a whole day has been his no-miss tradition each and every year. CSr is MVp and MVp is CSr.We are touching lives and eventually changing lives by providing the needs of the marginalized members of society and through these CSr projects, we offer, they were given hope and inspiration to change for the bet-ter. We became instruments for them to go on living, improve their lives and make it more meaningful. The most memorable one is when MVp, pLDT president and Ceo back then, attended our CSr program in payatas, Quezon City, a dumpsite area for the poorest of the poor. He attended the Holy Mass and took part in the pLDT Medi-cal Mission and Feeding program. To date, he is the only president and Ceo of a com-pany to visit the area.

10 / annuaL reporT 2012

FranCIS a. BauTISTaGabay Guro Volunteer

My journey to cSr work started when I was about 10 years old,

when my parents tagged me and my siblings every time they visit Golden acres as part of an outreach program. My mind was opened to the fact that there were elderly people abandoned by their respective families. also, way back in high school, we had exposure trips and had the chance to visit the victims of Mt. pinatubo eruption, and stayed with them for one whole day.

the greatest challenge for our country is how to address poverty. Through the programs of pLDT-Smart Foundation, we support the initiatives of the government in education as the key tool in poverty alleviation.

being involved in cSr, the most important lesson that I have learned is that we have to be humble in serving others -- no matter what your stature is in the company or society. You also have to be dedicated as service for others involves a huge amount of commitment.

For me, the most relevant role of cSr is giving hope to people and making them feel that somebody cares for them.

My hero in doing charity work, not necessary in the context of CSr, is St. Francis of assisi. For me, he is the epitome of acts of charity and living the life of simplicity.

We are touching lives by showing our dedication and passion in doing CSr work, and that we are not being paid to do such. Seeing that we are able to help and can see smiles on their faces, these, I think, is priceless… actually for me, in helping other people, they are touching my life.

A memorable experience for me was in September 26, 2009 (my birthday), when Typhoon ondoy hit Metro Manila. I was stranded in pLDT Mandaluyong office and can’t go home because the roads going to our house in pasig are still not passable. on September 28, 2009, despite the fact that I have no clothes and other

basic necessities, I still decided to fly to Dumaguete and push through with the scheduled Gabay Guro trainings. not to mention that I was feeling sick and later on, diagnosed with Hepatitis.

DenG KIBanoFFVp-Training and Career pLDT and Head of Training pillar-2G program

My journey to cSr work started when I became a licensed teach-

er and topped the LeT in april 2008. That time I realized that as a licensed teacher working in a professional train-ing organization, there is much I can do personally to share my knowledge of teaching with our country’s teachers. Gabay Guro gave me that opportunity.

the greatest challenge for our country is upgrading the quality of edu-cation in the philippines and helping our teachers and through pLDT, we can do a lot to uplift the quality of our teachers and improve their condition in society.

being involved in cSr, the most important lesson that I have learned is that serving others is a privilege that holds the highest form of reward in one’s heart.

For me, the most relevant role of cSr is empowering people to believe in themselves and in providing people ave-nues for real and lasting change.

My cSr heroes are Dr. Cris and

Dr. Marivic Bernido because being teachers like me, they embody selfless dedication to helping Filipino teachers and students to become the best that they can be.

We are touching lives by touching teachers’ hearts -- to find true meaning in their important role in nation-building.

one of the most touching mo-ments in my Gabay-Guro teaching ex-perience was when one of the gradu-ates of the Teachers’ Treasure Chest Course (the course I was teaching) gave me a small handwritten note at the end of the course. In it was written “Thank you very much for this semi-nar, sir. I was about to decide to leave the teaching profession given all its frustrations and challenges, but now I’d like to go on with my calling.”

another was when we were con-ducting the same course in roxas, pal-awan in a big gym when just outside the venue, npa rebels and police had a shootout. Since I was busy conducting

the course, I was unaware of what was happening outside. I only learned of the incident during the morning break when a colleague told me. Thus, we had to cut the training short and travel back to puerto princesa by van fearing where the next encounter may be. Well, that’s all in a day’s work for the Gabay Guro Training team. We did not stop the pro-gram just because of that incident. We just considered that experience as one of the surprises and spices of our CSr life.



MeLanIe a. ManueLaVp & Head, Carrier Settlements & Business Information Management(pLDT, SMarT & Sun/DIGITeL)Chairperson, Gabay Guro Scholarship Committee

My journey to cSr work started in 2007 when I was president

of pLDT Managers’ Club, Inc. (MCI). Ms. Chaye Cabal, FVp & Head, Finan-cial planning and Control, invited me and a few other friends from MCI, blessed as we are, to think of a way of how we can best “give back”. over a cup of coffee, Gabay Guro was born, and the rest is history.

the greatest challenge for our country is poverty alleviation; and with Gabay Guro and pSF, we can undertake programs geared towards poverty alleviation through education.

being involved in cSr, the most important lesson that I have learned is no help is too small to make a dif-ference.

For me, the most relevant role of cSr is to make a difference in oth-er people’s lives, and help them to be self-sufficient so they can contribute in nation-building.

My cSr hero is MVp because of

the support he is giving to education, sports and many other programs that benefit the youth – the future of our country.

We are touching lives by helping with a heart.

as Chairperson of Scholarship Committee, it is my job to screen applicants. It is not uncommon to find myself teary-eyed while reading the stories of students. But there was one scholar that will forever be etched in my memory.

on her first year, her family was struck by tragedy, that she al-most gave up on her studies as she couldn’t make the grade. Gabay Guro gave her a second chance.

When she graduated, she gave me a hug so tight that I felt the enor-mous gratitude in her heart. I just felt that the expression of gratitude was way greater than the help we have given her.

Indeed “no help is too small to

make a difference.” Her story and that of many other Gabay Guro schol-ars will be my inspiration to continue “touching and changing lives” in my own little way.

roSe e. GuTIerrez2G Director for external affairs

My journey to cSr work started when I volunteered my services

to the 2G Core Team because 1) I have great respect for the teaching profession 2) to fulfill my personal mission of trying to be a blessing to others – in my own humble way.

the greatest challenge for our country is fighting corruption and deviating funds to pockets of people in power more than allocating sufficient and rightful budget to deserving less fortunate sectors of society; and through pLDT, we can do our share of filling the gap between the mighty rich and the deserving sectors of society.

being involved in cSr, the most important lesson that I have learned is to first value the blessings that God has abundantly provided us and sharing it with those who are truly under privileged.

For me, the most relevant role of cSr is to reach out to as many marginalized individuals or organizations in the country and providing selfless time and effort to achieve the objective of a given project.

My cSr hero is Bill Gates

because he has put up huge high-tech laboratory where specialists are working to find cure for major illnesses for the benefit of the whole world.

We are touching lives by simply being a blessing to others everyday of our lives.

During one of our training sessions for teachers, a participant cried her heart out to us out of great happiness since it was an event in so many years where the nobleness of her teaching profession was emphasized. This was after we have declared that there would be no successful presidents or vice presidents or doctors or lawyers WITHouT their teachers to hone their skills. For years, she kept on thinking that “teacher LanG siya”._The teacher even shared her story of having to walk miles to reach her impoverished school.


GIL GarCIaGabay Guro Team Member

My journey to cSr work started very early as I have seen how my

parents were always helping others, even extending help even when we don’t have that much. So when I started to work at pLDT, I thought that Gabay Guro was just an extension of my work. Then I realized that this is the best way to reach out. I can’t do everything myself, but with a group of people who are passionate to help and passionate to teach, we can make a difference. It is a dream come true to help others!

the greatest challenge for our country is how to fight poverty since a lot of what’s wrong in our society can be connected to this.

being involved in cSr, the most important lesson that I have learned is that we must be thankful. I have seen how the lives of teachers have been touched by our Gabay Guro programs

and they are always thankful that we reached out to them. In return, they also have touched our lives.

For me, the most relevant role of cSr is that it can change the lives of a lot of people. During our recent event at SM Moa arena, some teachers were even crying out of joy that there was an event to make them happy, even for a day.

My cSr hero is my anyone who extends help with a pure heart and a genuine smile.

a memorable experience for me in doing CSr work is when a teacher wrote on a piece of leaf her ‘thank you to 2G’ since she had no pencil and paper to write on at that time. She carved those words on the leaf and gave it to us. I was so touched by her gesture. Later on, I learned that it was her first time to undergo a teacher training, even though she

was about to retire. She thanked us since she felt touched by the efforts of the Gabay Guro team to reach out and pay tribute to t i r e l e s s t e a c h e r s like her.

JoJo IBaYGabay Guro Team Member

My journey to cSr work start-ed when I was assigned to find

a teacher with an extraordinary story and passion for her students. I found one in Leyte, which was also my home province, and I was so moved by her story... how she had to drive a motorcy-cle on her own for 17 kilometers of dirt road just to teach kids. She even has to share whatever she has so the kids can eat and have basic necessities. That en-couraged me to volunteer passionately for Gabay Guro.

the greatest challenge for our country is poverty that’s why every sin-gle thing that we do to help even one person will go a long way.

being involved in cSr, the most important lesson that I have learned

is that amidst all our problems, we are still very lucky. We are blessed that we have stability in our jobs, we have family and friends to rely on, that we can have meals 3 times a day. We should realize that and be thankful.

For me, the most relevant role of cSr is about sharing of blessings.

a memorable experience for me in doing CSr work is when I got to know the teacher in Leyte. She even sacri-ficed her own convenience and time just to reach out to kids in very poor communities. I will also remember the graduation of our 2G scholars. We are very moved seeing some of them grad-uate at the top of their class and they always say that it was not possible with-out the help of Gabay Guro.



Karen CLaIre M. uLMerHead – Marketing, pLDT Global

My journey to cSr work start-ed when I was with pLDT Home

when we launched pLDT Kaasenso, a new revenue stream and advocacy to educate micro entrepreneurs. It contin-ued when I moved to pLDT Global. The thought of advocacy still persisted as we work with the overseas Filipino market. I had a better grasp of the struggles and plight of our fellow men abroad and how the combined products and services of the pLDT group aid the Filipinos to be closer to home.

the greatest challenge for our country is education. Through pLDT, we can do more programs that will slowly change the face of education. our advocacies in the various sectors such as oFWs and through pLDT Global, CSr programs like Hakbang Kababayan, Mi-cro businesses of project pagsulong

by Kaasenso, among others, will help enrich the lives of our fellowmen. We educate our community and our im-mediate stakeholders. We take out the dependency on other people and teach self-reliance, sustainable growth and transcendence so that our effort to make a difference ripples to other peo-ple and hopefully infect a nation.

being involved in cSr, the most important lesson that I have learned is that change takes time and patience. one may not realize it but one small act can make a change…one act that affect one person will ripple the effect to oth-ers.

For me, the most relevant role of cSr is changing and reshaping the lives of the community and hopefully the nation in which we live in to become better-- physically, emotionally and spiri-tually.

We are touching lives by con-necting, understanding, educating and

eventually reshaping the community and the people that we serve. My everyday work is a constant reminder of how we sup-port our fellow Filipinos in HK, whenev-er we help the pLDT HK team in pro-ducing the Smart and pinoy publication and whenever we do the fulfillment of Wish-upon-a-smart. CSr work for pLDT Glob-al is memorable because we do it every-day in collaboration with our pLDT HK team. Setting up the pLDT Kaasenso was also a memorable experience for me, as it felt like we are in a way starting a social entrepreneurship kind of busi-ness model. I am happy to see how it has evolved in the past years.

Ma. CHrISTIne reYeSproject Director

My journey to cSr work started when I realized that the business

sector had the heart and the means to get involved in helping the economically disadvantaged sectors of our society.

the greatest challenge for our country is economic inequity; and through pLDT/ Smart, we are address-ing this by designing and implementing projects that address the three bottom-lines: sustainability through livelihood,

leadership and capacity building (social) and environment restoration.

being involved in cSr, the most important lesson that I have learned is creating the opportunity to link busi-ness with disadvantaged communities as partners in addressing social and economic inequities and environmental challenges.

For me, the most relevant role of cSr is the shared governance and ownership of business, communities and government in addressing local and national challenges that cannot be

addressed by any of the three on its own.

We are touching lives by using our corpo-rate strengths to help communities overcome their weaknesses.

It is hearten-ing to see community members blos-som and grow and confidently lead vol-unteers in forest restoration activities.

JonaTHan De QuIrozHead/product Manager – pLDT Kaasenso

My journey to cSr work started when

we started pLDT Kaas-enso in 2010 – a brand that does not just offer commercial services,

but more importantly, creates and imple-

ments micro-business-em-p o w e r i n g

programs. the greatest challenge for our

country is information management– we seem to think that there’s simply too much demand, but looking closely, there’s actually a lot of supply too – we just have to properly match the two; and through pLDT, we can do initiatives to help address this. We can create strong connections to bridge the gap between the two.

being involved in cSr, the most important lesson that I have learned is everyone is a stakeholder and the most successful CSr model is one

where everyone benefits and is en-abled.

For me, the most relevant role of cSr is to empower in the most sustain-able, relevant and efficient manner. In a constantly changing world, it is critical to always imbibe these three things.

My cSr hero is MVp because he perfectly embodies “people will never care how much you know (or have), until you let them know how much you care.”

We are touching lives by connect-ing people.

a memorable experience for me in doing CSr work is working with the fu-ture social entrepreneurs of this nation.

Seated from left: Manuel V. pangilinan, Chairman; June Cheryl a. Cabal-revilla, Treasurer; Ma. esther o. Santos, president; anabelle L. Chua, Trustee. Standing, from left: napoleon L. nazareno, Trustee; atty. rene Banez, Trustee; Menardo G. Jimenez, Jr., Trustee; ray C. espinosa, Trustee; and ramon r. Isberto, Trustee.

pLDT-SMarT FounDaTIon, InC.

boArd oFtruSteeS ManueL V. panGILInanChairman

Ma. eSTHer o. SanToSpresident

napoLeon L. nazarenoTrustee

aTTY. rene G. BañezTrustee

Ma. VICTorIa a. ruFIno-BuenaVenTuraTrustee

anaBeLLe L. CHuaTrustee

raY C. eSpInoSaTrustee

raMon r. ISBerToTrustee

MenarDo G. JIMenez, Jr.Trustee

aTTY. Ma. LourDeS C. rauSa-CHanCorporate Secretary

officers

June CHerYL a. CaBaL-reVILLaTreasurer

JuLIe C. CarCeLLerproject Manager,events & Marketing

raFaeL C. Lopaproject Manager,Community Development

Jun r. FLorenCIoInternal auditor

changing lives

uplifting the quality of life of each and every Filipino

The pLDT-Smart Foundation (pSF) is a non-stock, non-profit organization that serves as the social outreach arm of the country’s oldest and

largest telecommunications conglomerate, the philippine Long Distance Telephone Company (pLDT). In its pursuit for social, political, and economic development, it provides helpful communications tools and various avenues for progress and empowerment through partnerships and tie-ups with non-government organizations, people’s organizations and cooperatives throughout the philippines.

Formerly named pLDT Foundation when it was incorporated in august 1994, the pSF is now stronger and more active, leveraging on the strengths of pLDT and its wireless subsidiary, Smart Communications, Inc. since February 2007. With the pLDT group’s state-of-the-art technologies and extensive reach nationwide, the pSF is maximizing the services, facilities and infrastructure of the companies to be able to give back to the community.

Today, the pSF is the expanded version of the former organization, with efforts consolidated and aligned to create a bigger impact in dealing with corporate social responsibility, yielding better and more significant results in connecting people and resources.

Headed by pLDT and Smart Chairman Manuel V. pangilinan, the pSF is now mainly involved with corporate social responsibility programs focusing on various areas such as education, community development, sports and the environment. all these endeavors are committed to one singular goal – that of fulfilling the needs and uplifting the quality of life of each and every Filipino.

Vision

“a connected, enlightened and productive philippines.”

Mission

1. To provide help and support to those who need it in our areas of strength and competency.

2. To facilitate the empowerment of the Filipino people through the utilization of information and communications technology.

3. To extend products and services to people, reaching out above all to those who cannot afford it.4. To focus on growth in seven key areas: livelihood and microfinance, education, disaster preparedness,

youth, poverty alleviation, sports, and the arts.5. To provide an efficient, cost-effective medium for multi-sectoral coordination and communications.


Gabay-Guro: Changing the lives of those who changed ours

Gabay Guro or 2G is one of the flagship projects of the pLDT-Smart Foundation and supported by the pLDT Managers’ Club Inc. that aims to enhance education in the country through scholarship grants and english proficiency and computer literacy training programs for teachers. It also aims to help teachers augment their income through livelihood projects. By helping mold excellent teachers, 2G hopes to spread the gift of learning to many more students in the country and thereby help in nation-building.

2G’s core programs are anchored on 6 pillars: 1) educational grants, 2) continuous teachers’ training, 3) teachers tribute, 4) livelihood programs, 5) broadbanding public schools [we also provide new computers on a case to case basis], and 6) housing and educational facilities.

Total scholarship grants increased year per year, totalling 705 scholars for School Year 2013 and garnering 164 graduates.

In 2012, “Simpleng Handog”, a testimonial dinner for its 2nd batch of scholar-graduates, was graced by no less than pLDT Chairman Manuel V. pangilinan and pLDT president & Ceo napoleon L. nazareno. adding glitter to the occasion was the moving force behind 2G- pLDT Controller and 2G program Chairperson Chaye a. Cabal-revilla, along with pSF president esther o. Santos and the 2G Volunteers from pLDT Managers Club, Inc (MCI).

“Simpleng Handog” bestowed recognition to 2G scholar graduates for their exemplary performances in completing their education, preparing them


for their big role in nation building as educators. This year’s batch consists of 38 graduates from six partner schools. The graduates were led by Joe anthony Basco of pnu Quezon who graduated BeeD (Bachelor of elementary eDucation)- magna cum laude and a recipient of 4 other excellence awards. another 12 scholars graduated cum laude while several others achieved special excellence awards from their respective schools. each of the honor graduates and special awardees received cash incentives from Gabay Guro/pSF. 2G has by far produced 1 magna cum laude, 19 cum laudibus and a number of special achievement awardees from the 67 graduates of Batches 2010, 2011 and 2012.


Teacher’s Training is likewise an ongoing endeavor. Gabay Guro’s Training Team offers various training modules. among others are english proficiency Training, Computer enrichment program, and the Teachers Treasure Chest Training, aims to rekindle the passion to teach. In the past year, 8,311 teachers benefited from these various trainings.

another Gabay Guro’s projects is Computerization and Broadbanding of schools to further education with the help of technology. even remote campuses deserve a chance to learn with them. Gabay Guro gave away SmartBro dongle units to as far as Lyceum de Camiguin, Babuyan Islands to provide them connectivity and access to internet. Gabay Guro also donated brand new computers and a computer laboratory to various schools across the country.

The wellbeing of every teacher is taken into account. That’s why training programs usually come with livelihood seminars that update our educators on options available to them. This includes a housing project in Daet that Gabay Guro is carrying out in coordination with the Department of education’s project Shelter. a total of 150 teachers are meant to benefit from that housing project while new housing sites are currently on the shortlist for the following cycle. on September 2012, Gabay Guro donated 4 classrooms to public schools in Cordova, Cebu.

Last but not the least, a deep appreciation for teachers and their contribution to nation building is underlined by Teacher Tributes that have become an integral part to Gabay Guro. It comes in the form of Tribute Cards, of which over 10,000 have been distributed to give teachers access to discounts from several Gabay Guro partners.

In 2012, the revelry was an entire Teachers Week Celebration that included trainings, experience to be studio audience, and dinner with pLDT Chairman, Mr. Manny V. pangilinan. and as a matter of tradition, the culminating activity to give tribute to teachers during week is the Gabay Guro Grand Gathering held at the SM Moa arena. The event was the biggest ever! over 15,000 teachers had fun and were entertained by the country’s top artists and singers.

The biggest surprise of the event was felt by Sarah Jane Gabat, a Grade 2 teacher from Cemembo elementary School when she won a house and lot courtesy of Camella Homes.

teAcher’S trIbute cArd. The Gabay Guro Tribute Card is a special way of giving back to teachers the love and support they truly deserve. It is packed with freebies, perks and discounts that teachers can benefit from greatly, through partnerships with SMes and corporate establishments. Teachers can avail of the Gabay Guro Tribute Card by simply participating in any Gabay Guro activity in their areas and apply onsite or apply online. Just present the card to partner commercial establishments of the pLDT-Smart Foundation to avail of privileges. ever since the Tribute Card was launched, more than 10,000 teachers have received this gift.


More than 13,000 teachers filled up the SM MoA Arena last october 28, 2012 for the Gabay Guro Grand Gathering 2012. teachers from various schools, towns, provinces attended the yearly event.

chaye cabal-revilla was joined by Mr. charles Lim of Smart and Sun cellular, and Mr. Ariel Fermin of PLdt home.

Mrs. cynthia Villar of Vista Land awards the symbolic key to the brand new house and lot to lucky winner, Sarah Jane Gabat of comembo elementary School, Makati city.

Photo op with the Gabay Guro volunteers and house & lot winner, Sarah Jane Gabat. Joined by Ms. Nora Aunor and Mrs. cynthia Villar.

teachers are having fun as they participate in various song and dance number during the Gabay Guro Grand Gathering 2012.


YOUTH SOCIAL ENTREPRENEURSHIPIn partnership with:


project pagsulong is a p1 million youth challenge to help alleviate poverty -- inviting young Filipinos (18 to 30 years old) to form a team (with 3 to 5 members) and come up with innovative business ideas good enough to

stand against proposals from other teams, as well as viable enough to provide real-life solutions for alleviating poverty.

It’s a team project of a lifetime: with cash grants, and pre- and post-project coaching and mentoring from partner institutions and Ten outstanding Students of the philippines (ToSp) alumni to see the fruition of their ideas the right way.

In 2012, project pagsulong wrapped up its nine-day boot camp on october 28 at the First pacific Leadership academy (FpLa) in antipolo City. Chosen by a panel of veteran entrepreneurs, investors, and industry experts, the Top 10 Finalist Teams were mentored by some of the local business leaders on various facets of entrepreneurship, helping them improve and concretize their social enterprise plans.

The boot camp, which kicked off last october 20 and finished on october 28, was an intense, hands-on social entrepreneurial session that taught the finalists the ins and outs of starting a business and how social enterprise plays a role in nation-building.

The finalists, representing 10 teams from across the country, spent their days listening to acclaimed entrepreneurs, business leaders, and respected lecturers, who drilled them on developing their business plans as part of the boot camp’s purpose to make their ideas more feasible in the market.

Local successful entrepreneurs shared their entrepreneurial journeys, which tremendously motivated the finalists. among the talks during the boot camp were: the role of social enterprise in nation-building by eCHoStore founder pacita Juan, setting the entrepreneurial mindset by Gonegosyo executive director ramon Lopez, the Binalot story by Binalot Fiesta Foods president rommel Juan, the Human nature story by Gandang Kalikasan, Inc., co-founder and president anna Meloto-Wilk, sustaining social enterprise by Marina Gana Vida co-founder Jonah nobleza, leveraging ICT in social enterprise by IdeaSpace Foundation co-founder

an Innovative Bootcamp for project pagsulong


and president earl Valencia, and bringing together “social” and “enterprise” in social enterprise by asia Social enterprise Incubator co-founder John paul Malgazo.

other speakers present during the boot camp were professors nestor raneses and Debbie Wong from university of the philippines Diliman, Dr. ryan Guinaran from Doctors for Indigenous Health, and Clint navales from procter & Gamble philippines.

apart from the talks throughout the week, the participants went through several formation sessions where they were given background on social enterprise and nation building; underwent skills workshop to clarify and deepen their understanding of the process from ideation to application; and prepared action plans in order for participants to focus their ideas and decide which steps to take to achieve their goals.

project pagsulong, supported by pLDT Kaasenso, pLDT-Smart Foundation, The outstanding Students of the philippines-alumni Community (ToSp-aC), rFM Foundation, IdeaSpace Foundation, Gonegosyo, and Draftfcb Manila, culminates in March 2013.


The pLDT-Smart Foundation, in partnership with Smart Communications, Inc., has rolled out simultaneous half-day orientation seminars in

various schools in Luzon, Visayas, and Mindanao. The orientation seminar would encourage participants to adapt the Dynamic Learning program (DLp), which was first implemented at the Central Visayan Institute Foundation (CVIF) in Jagna, Bohol by doctors Christopher Bernido and his wife Ma. Victoria to develop potential of the school children.

This was followed by one-day writeshops, as well as simultaneous three-day Learning physics as one nation (Lpon) seminars. all these were done in order to help Filipino students become globally competitive.

Being staunch advocates for education, pSF and Smart have committed to help the Berni-do couple, 2010 ramon Magsaysay awardees and theoretical physicists, spread the good news about the DLp.

“We are supporting the DLp because we believe in the program and the commitment of the Bernido couple to uplift the quality of education in our country,” said Ma. esther o. Santos, pSF president. “We are proud to be-come part of this noteworthy initiative. This is the kind of investment that would give good returns.”

“We’ve been thinking how to help a child reach his full potential. For our country to be productive in the 21st century, we must have an army of engineers and scien-tists. We must improve our educational system,” said Dr. Christopher Bernido.

First implemented in CVIF, which is owned by Dr. Chris-topher Bernido’s mother, the DLp is now being used as a teaching method in 200 public and private high schools in the provinces of Bohol and Basilan as well as the cities of Cagayan de oro and Lamitan across all sub-jects, and in over 600 schools for physics that is meant to address the chronic shortage of teachers proficient in that subject.

This learning method is character-ized by activity-based multi-domain learning, parallel classes, in-class-room protocols for sustained/in-dependent learning, and strategic

rest. using the prescribed curriculum of the Depart-ment of education, a high school student develops his or her fullest potential even without any homework, with academic days only four times a week and an equivalent to only one period a week contact time with the teacher.

In the short time that it was implemented, the students who underwent DLp showed the following results: In-crease of passers of the up College admissions Test and other entrance exams of colleges and universities, and Deped annual standardized exams; Greater ac-countability of and cooperation among teachers, and the developed responsibility and discipline among stu-dents.

It is likewise noteworthy that despite Typhoon Sendong’s ravaging of schools in the program’s pilot implementa-tion in CDo City, the students still got a highly significant learning gain in all three subjects (Science, english and Math) in all year levels, based on the testing conducted by the Center for educational Measurement.

Boosting the Dynamic Learning program

MVp academic excellence awards for 256 Scholars employees of pLDT and Smart stood as proud parents at the 2012 MVp academic excellence awards (MVpaea). an annual endeavor of the pLDT-Smart Foundation, the MVpaea rewards hardworking parents and their outstanding kids with an educational grant. The grant gives a significant contribution for tuition and academic expenses for elementary, high school and college students.

“This is one of the events we look forward to in pSF as it is a family celebration as well as a nation-building program,” said pLDT-Smart Foundation president Ma. esther o. Santos. “We reflect the stand of our Chairman MVp and our Board of Trustees who have always placed great importance on getting a good education and hard work.”

“This is the 8th year that pSF has maintained this educational grant to children of our employees and we intend to continue this program to serve you, the children of our employees. It reflects our commitment to education in this country and of course it is a way of helping the children of our employees to reach the level of excellence they should be striving for to become useful citizens of this country,” said pLDT Chairman Manuel V. pangilinan.

pSF supports pnp dependents with scholarship grantsanother set of qualified scholars received grants from the pSF educational assistance program that provides college educational opportunities to dependents of pnp uniformed personnel who were killed in actual performance of duty, complete disability, discharged, wounded or incapacitated in their line of duty, and those dependents who graduated with honors.

Through the pSF-pnp educational assistance program, pSF gives back to those who risk their lives in the line of duty by aiding the children of heroic policemen who were injured or killed in action.

Turning over p500,000 worth of scholarships, pSF president Ma. esther o. Santos, assisted by pnp Chief Director General nicanor a. Bartolome, led the ceremonial turnover of cheques to 50 deserving dependents at the pnp General Headquarters.

pSF has been providing scholarship grants to pnp dependents in support of the pnp Integrated Transformation program. Since the educational assistance started in 2008, the program has helped 200 deserving students defray their tuition fees and other school-related expenses.

The PNP dependents with officials from PSF and PNP, which includes PSF President Ma. Esther O. Santos, PNP Director General Nicanor A. Bartolome, PLDT ALPHA Corporate Relationship Business - Government Head Anton Lim and Police Deputy Director General Emelito T. Sarmiento.


reaching out


All out relief for habagat Victims

Three days after Habagat, pLDT Chairman Manuel V. pangilinan led

the companies under his stewardship to the evacuation centers of his hometown pampanga. Supported by the pLDT-Smart Foundation and the pLDT Comrel Division, MVp personally helped in the distribution of relief goods to the flood victims.

MVp’s convoy along the north Luzon expressway included contingencies from the pLDT Group, Manila north Tollways Corporation, one Meralco Foundation, Maynilad, Smart Gilas, epLDT and TV5. even the basketball players of Smart Gilas participated in the relief operation.

Members of the Smart Gilas pilipinas national basketball team took a break from their practice to visit evacuation centers in San Fernando, pampanga where a number of families were affected by the Habagat flood. The team led by team manager Butch antonio and coaches Chot reyes and Jong uichico handed relief bags from pSF.

The support of pLDT employees, in kind and in cash, was able to raise p650,000—a substantial amount that allowed project Sunrise, a campaign led by pSF Trustee Butch Jimenez to reach 8,000 families in various flood-stricken areas.

“Seeing the smiles and heartfelt thank you’s of the people we helped during this difficult period strengthened our resolve to continue our efforts. This would not be

possible without the generous support of our dear pLDT employees, and for this, we are truly grateful,” said Ma. esther o. Santos, pSF president.

The Luzon asset protection Division (LapD) also mobilized their team to conduct rescue missions. Together with the Bulacan CS zone and Comrel, their reach extended even to the most flooded areas.

utilizing the learnings from their rescue training, the LapD brought rubber boats to Minalin, pampanga, Balanga, Bataan and Catmon, Bulacan. There, they helped distribute thousands of relief goods, and aided in the rescue of pLDT employees at the SFp exchange office.

“Through the gallant efforts of the Bulacan CS zone and the LapD, we were able to help 500 families in apalit, pampanga, 510 families in Malolos, Bulacan and 500 families through the asikasong Bongbong organization. We are proud of every pLDT employee who helped out—those who donated goods, and those who donated their time, effort and heart in this significant mission,” said evelyn Del rosario, pLDT Comrel Head.

pLDT SMe nation, together with the winners of the Bossing awards, also donated relief goods through the help of pSF. Lamoiyan Corporation donated 200 dental hygiene packs; regal Films gave 2,232 canned goods; HBC and absolute water gave 50 and 10 cases of drinking water, respectively; CDo donated 20 boxes of canned goods; Go negosyo and rFM gave 72 cases of aloe Green Tea; Silver Works gave 120 packs of relief goods and two sacks of rice; r. Lapid’s donated 100 packs of relief goods; north park had 16 boxes of relief goods; Generics pharmacy gave two boxes of medicines; and Felix ang donated p20,000 cash.

Through the continued efforts of Comrel and pSF, pLDT will be able to provide assistance to flood victims even after the waters have dried out. as people begin to rebuild the homes they lost, it is important to let them know that they have an ally who can truly help them change their lives.

Tulong Kapatid is the consolidated CSr and disaster response of the MVp Group of Companies. It is committed to help the communities such as Davao oriental and

Compostela Valley which were extremely devastated by Typhoon pablo in December 2012.

Manuel V. pangilinan, Group Chairman, led the launch in november 2012. He said: "Disasters do happen, and it is our responsibility to be prepared for them. our businesses have to be key players in any crisis or emergency because it is our duty to the community to ensure that vital services -- communications, power, water, news, hospitals, roads -- are maintained in the event of a disaster."

Tulong Kapatid is not just a publicity stunt for the group in times of disaster, but MVp stressed that it is the spirit that demands the best from all of the people in worst times.

"In times of disaster and emergency, we need to come together like a band of brothers. We need a seamless coordination under extreme conditions. This will require cooperation from all of us," said MVp.

The first priority in times of disaster remains the restoration of operations and facilities. "our CSr groups and our foundations must reach out to the public and find out who needs assistance," said MVp.

The first major activity of Tulong Kapatid was in December 10 when it sought to raise p100 million for victims of Typhoon pablo, coming together for a four-hour telethon

that kicked off on TV5, radyo Singko, and aksyon TV.

officials of the MVp group, led by MVp himself, raised public awareness as well as actual support for the towns of Cateel and Boston in Davao oriental and new

Forming ‘Tulong Kapatid’


Bataan in Compostela Valley which had been devastated by Typhoon pablo. More than 90 percent of the towns' populations have been rendered homeless and without access to clean water and more than one million families were affected by Typhoon pablo’s rains, floods, and winds.

In fact, even president Benigno aquino III delivered a special message during the telethon, encouraging every Filipino to help, in any way, the people of Mindanao. "Malaki po ang maitutulong ng inyong inisyatiba upang maipadama sa ating mga kababayan na hindi sila nag-iisa," he said.

In just six hours, Tulong Kapatid was able to raise p100 million for pablo victims. It will also support the construction of schools in Davao oriental and Compostela Valley. Tulong Kapatid also committed to support the construction of housing units through a Moa signing with Davao oriental Governor Corazon Malanyaon.

"The MVp Group of Companies is the first private sector to heed our call for help and provide us with the much-needed assistance on housing. MVp's exemplary practice of CSr upholds what it stands for in making a positive impact in our people's lives and those of others," said Gov. Malanyaon. "It is our wish that our province would be the showcase of the MVp magic."

as part of the post-disaster efforts under the auspices of Tulong Kapatid, Smart distributed learning kits to elementary students from partner-schools in Davao oriental that were affected by Typhoon pablo. They also endorsed to each of 15 schools two emergency kits and a LifeStraw Family water purifier.

Close to a hundred teachers from the schools also received teaching kits that included manila papers, masking tapes, long plastic envelops, crayons, permanent markers, bond papers, pens, protractors, rulers, lesson plans and ink for permanent markers. Many of the schools’ facilities were damaged during the typhoon.



pSF at CSr expoan out-of-the-box education program that features lots of intense classroom work but no homework and no books. a new flood monitoring program that promises to rewrite the rules of disaster preparedness. a program that allows a patient in Mindanao to be operated on by a specialist in Makati via mobile Internet.

These are just some of the CSr programs of the pLDT Group showcased at the CSr expo 2012, emphasizing the convergence of its services and resources to improve the lives of Filipinos.

More than just bridging people, the pLDT-Smart Foundation (pSF), together with pLDT and Smart Communications, Inc. are committed to make use of information and technology as tools to enable its partners towards nation building via the various CSr initiatives in education, health, environment, disaster preparedness, and livelihood.

The booth at the CSr expo, which pSF shared with one Meralco Foundation, had an artwork for a backdrop depicting

the group’s CSr efforts and scenes showing how the services offered by the group connect and empower communities.

Those who visited the pSF booth at the SMX Convention Center also had fun with the Spot MVp game where they had to identify the many faces of pLDT chairman Manuel V. pangilinan in the artwork and got the chance to win prizes in the raffle.

Tents donation

Huawei, a leading global information and communications technology solutions provider, supported the pLDT-Smart Foundation’s disaster response efforts. Huawei donated tents that will be given by pSF to disaster-striken communities and evacuation sites.

Indofood, one of the biggest food manufacturers in Indonesia, donated goods to aid pSF's efforts during typhoon and disaster relief. Some of the goods donated by Indofood included promina for babies, and pop Mie instant noodles.

Indofood donation

people Saving the Future T-shirt Design Contest pLDT and Smart employees submitted their best T-shirt design in the “people Saving the Future” contest. The winning entry became the official design of the pSF Volunteer’s shirt for the International Volunteers Day held last December 5.

after deliberations, the 1st place went to Cesar C. Malabag of the pLDT South Luzon Core network-Lipa. The second place went to rex o. Lazarte of the Smart Technology Services Division, while third place went to ram M. anciro of the pLDT alpha Corporate Business.

Cesar was very elated that his design was picked from more than a hundred entries. In fact, it was very appropriate that he took the top award as he is a good example of what a volunteer should be. He shared this story on how he became a volunteer even if it was not related to his work.

“I was inspired to join the T-shirt design contest because it centers on ‘volunteerism’. I recalled the time when I joined the pLDT Medical & Dental mission including a tree planting which was held at Tingloy, Batangas. The

event was headed by the Comrel group of evelyn del rosario together with other pLDT employees. Being a volunteer, I went to the mission even without personal motives but to help others even in my own little way. ‘Di po pala nararamdaman ang hirap at pagod kapag may mga tao kang natutulungan at napapasaya...”

Last november 1, 2012 was my 50th Birthday and I want to make it extraordinary. Before, I used to celebrate with overflowing food and drinks and videoke. But that time, I made my Golden Birthday a simple one. I asked the assistance from one of our Barangay Councilman for the list of 35 low income families. I gave each family a basket of goods which included rice, canned goods, noodles, etc.

With the help of my family and friends, it was a success. I felt good from helping others. Since we only came from a humble background, I know the feeling of having nothing and I now resolve to help others as long as I can.”

Supporting CineFilipinoCineFilipino, organized by the pLDT-Smart Foundation, MediaQuest, Studio 5 and unitel entertainment, launched its search for the next great Filipino digital film by offering a production grant of p1.5 million each to eight filmmakers.

“We are supporting CineFilipino since the MVp Group believes that nation building can start by appreciating what we have as a nation. Through this festival, we are able to showcase the best of the new wave of filmmakers,” said Ma. esther o. Santos, pSF president.

The fest’s feature-length section is open to both new and seasoned filmmakers. on the other hand, the festival’s shorts section is open to students where 10 short films will be chosen. CineFilipino will be held in March of 2013 in various cinemas all over the metro.

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For birthing clinics pLDT-Smart Foundation donated p2 million to the Kapampangan Development Foundation (KDF) for the “Iligtas si nanay project”, an endeavor that supports the construction of 12 satellite birthing clinics in pampanga. Iligtas si nanay project will enable local midwives to provide safe, proper and hygienic birthing conditions to mothers. photo shows pSF president Ma. esther o. Santos (3rd from left) turning over the check donation to KDF president Benigno ricafort. others in photo are, from left: KDF executive Director Sylvia ordoñez and pSF staff Madonna Hernandez.

Gift-givingpSF provided gifts to our aeta brothers and sisters in coordination with the Tollways Management Corp.

Bahay pag asa opensThe formal opening of Bahay pag-asa in De La Salle Das-marinas was attended by its supporters led by former Chief Justice Hilario Davide, Jr. It is a facility established by the La-sallian Brothers to help rehabili-tate children who are in conflict with the law and will serve as a center for them to learn and be led to a brighter future.

operation CasiliTo reach their school, students have to cross a treacherous upstream flow of the Wawa Dam in rodriguez, rizal. Through the efforts of Darwin Flores of Smart/pDrF, the plight of the students and their teachers garnered online and media attention. In 13 days, contributions poured in from Darwin’s FB friends and corporate contacts: Life jackets for teachers, slippers and school supplies for the children and toilet bowls for the school were turned over by pLDT-Smart Foundation, one Meralco Foundation and Smart for the benefit of the teachers, students and parents of Casili elementary School.

aiding rizal Medical CenterMembers of the companies from the First pacific Group visited the rizal Medical Center in pasig City together with some executives of the Metro pacific. pSF president Ma. esther o. Santos led the turnover of DVD players and assisted the top executives in distributing gifts to patients and their family. The event also coincided with the Makati Medical Center Foundation’s launch of their program to provide strategic and sustainable programs for its partner public hospital.

Computers for Balulang SchoolpSF aided in the efforts to rehabilitate a school in Cagayan de oro City which was damaged by Typhoon Sendong. The school lost its entire computer laboratory due to the calamity. responding to this need, pSF donated 10 brand-new computers and funded the repair and renovation of the lab.


Sending Cheeron December 5, International Volunteer’s Day, the MVp CSr Council held “paskong Kapatid”, a program which gathered 200 kids from various partner communities of the companies under the First pacific Group.

In the morning, the kids from Casili elementary School were given a free tour of the Manila ocean park sponsored by Smart Communications public affairs Group. Jollibee Foundation sponsored the kids’ lunch at SM Mall of asia, where in the afternoon, pSF also treated them to a visit to the nido Science Discovery Center together with the kids from Catmon elementary School.

Late in the afternoon, employee-volunteers from the different companies of the First pacific Group converged at the Meralco Compound to give the kids an afternoon of storytelling by Batibot artists, face painting, picture taking with Kiko Meralco, Batibot mascots, and Santa Claus. after the ceremonial lighting of the Liwanag park, the kids went to ride and have picture taking on the train and e-jeepneys. The event was made more special as top executives and Board Members from First pacific participated in the gift-giving event.

as a continuation of “paskong Kapatid”, pSF, pLDT Community relations, and the philex Group Foundation, Inc. also sent early Christmas cheer to almost 2,000 students in Benguet.

audio-visual materials, books, and other school supplies were distributed to the students of philex Mines elementary School and other schools in remote areas, including Sitios piminggan and Sioco-Carino, both Tuba’s Brgy. ansagan, and in Brgy. ampucao, Itogon.

“This educational outreach activity is a big help to our students who brave walking for hours just to get to school and learn,” said Sioco-Carino head teacher and cluster head Mildred Marquez.


STaTeMenT oF ManaGeMenT’S reSponSIBILITY

For FInanCIaL STaTeMenTS

The management of PLDT-Smart Foundation, Inc. (“the Foundation”) is responsible for the preparation and fair presentation of the Foundation’s financial statements for the years ended December 31, 2012 and 2011 in accordance with Philippine Financial Reporting Standards. This responsibility includes designing and implementing internal controls relevant to the preparation and fair presentation of the Foundation’s financial statements that are free from material misstatement, whether due to fraud or error, selecting and applying appropriate accounting policies, and making accounting estimates that are reasonable in the circumstances.

The Board of Trustees reviews our financial statements before these are approved and issued.

SyCip Gorres Velayo & Co., the independent auditors appointed by our Board of Trustees, has audited the financial statements of the Foundation in accordance with Philippine Standards on Auditing and has expressed their opinion on the fairness of presentation upon completion of such audit in their report to the Foundation’s Board of Trustees dated April 4, 2013.

Manuel V. Pangilinan Ma. Esther O. Santos June Cheryl A. Cabal-RevillaChairman of the Board President & Chief Executive Officer Treasurer


InDepenDenT auDITor’S reporT


SyCip Gorres Velayo & Co.6760 Ayala Avenue1226 Makati CityPhilippinesPhone: (632) 891 0307Fax: (632) 819 0872www.sgv.com.phBOA/PRC Reg. No. 0001December 28, 2012, valid until December 31, 2015SEC Accreditations No. 0012-FR-3 (Group A)November 15, 2012 valid until November 16, 2015The Board of Trustees

PLDT-Smart Foundation, Inc.

Report on the Financial Statements

We have audited the accompanying financial statements of PLDT-Smart Foundation, Inc. (a private nonstock, nonprofit corporation), which comprise the statements of assets, liabilities and fund balance as at December 31, 2012 and 2011, and the statements of income and fund balance and statements of cash flows for the years then ended, and a summary of significant accounting policies and other explanatory information.

Management’s Responsibility for the Financial Statements

Management is responsible for the preparation and fair presentation of these financial statements in accordance with Philippine Financial Reporting Standard for Small and Medium-sized Entities, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error.

Auditors’ Responsibility

Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with Philippine Standards on Auditing. Those standards require that we comply with ethical requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.

Opinion

In our opinion, the financial statements present fairly, in all material respects, the assets, liabilities and fund balance of PLDT-Smart Foundation, Inc. as at December 31, 2012 and 2011, and its financial performance and its cash flows for the years then ended in accordance with Philippine Financial Reporting Standard for Small and Medium-sized Entities.

Report on the Supplementary Information Required Under Revenue Regulations Nos. 19-2011 and 15-2010

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplementary information required under Revenue Regulations Nos. 19-2011 and 15-2010 in Note 11 to the financial statements is presented for purposes of filing with the Bureau of Internal Revenue and is not a required part of the basic financial statements. Such information is the responsibility of the management of PLDT-Smart Foundation, Inc. The information has been subjected to the auditing procedures applied in our audit of the basic financial statements. In our opinion, the information is fairly stated, in all material respects, in relation to the basic financial statements taken as a whole.

SYCIP GORRES VELAYO & CO.

Marydith C. MiguelPartnerCPA Certificate No. 65556SEC Accreditation No. 0087-AR-3 (Group A), January 18, 2013, valid until January 17, 2016Tax Identification No. 102-092-270BIR Accreditation No. 08-001998-55-2012, April 11, 2012, valid until April 10, 2015PTR No. 3670001, January 2, 2013, Makati City

April 4, 2013

STaTeMenTS oF aSSeTS, LIaBILITIeS anD FunD BaLanCe


PLDT-SMART FOUNDATION, INC. (A Private Nonstock, Nonprofit Corporation) STATEMENTS OF ASSETS, LIABILITIES AND FUND BALANCE December 31 2012 2011

ASSETS

Current Assets Cash and cash equivalents (Note 4) P=182,657,739 P=87,533,200 Receivables (Notes 3, 5 and 9) 2,557,328 2,000,000 Total Current Assets 185,215,067 89,533,200

Noncurrent Assets Available-for-sale investment (Notes 3 and 6) – 199,950 Investment in an associate (Notes 7 and 9) 100,000,000 – Property and equipment – net 24,367 – Deposit for future stock subscription (Notes 7 and 9) – 100,000,000 Total Noncurrent Assets 100,024,367 100,199,950

Total Assets P=285,239,434 P=189,733,150

LIABILITIES AND FUND BALANCE

Current Liabilities Accounts payable and other current liabilities (Note 8) P=22,855,344 P=9,447,993 Due to related parties (Note 9) 100,539,285 100,398,890 Total Current Liabilities 123,394,629 109,846,883

Fund Balance 161,844,805 79,886,267

Total Liabilities and Fund Balance P=285,239,434 P=189,733,150 See accompanying Notes to Financial Statements.

PLDT-SMART FOUNDATION, INC. (A Private Nonstock, Nonprofit Corporation) STATEMENTS OF INCOME AND FUND BALANCE Years Ended December 31 2012 2011

INCOME Donations (Notes 3 and 9) P=268,105,534 P=150,252,932 Interest (Note 4) 2,682,878 943,766 Foreign exchange gains – 2,333 Miscellaneous 1,211 12,260 270,789,623 151,211,291

EXPENSES Donations (Note 10) 179,670,387 140,511,196 Compensation and employee benefits (Note 9) 3,374,560 2,311,760 Public relations 1,299,550 1,350,500 Professional and other contracted services 1,189,403 1,097,369 Communication, training and travel 571,591 98,062 Taxes and licenses 87,774 11,961 Foreign exchange losses 5,421 – Depreciation 1,433 – Others 2,094,390 1,763,356 188,294,509 147,144,204

EXCESS OF INCOME OVER EXPENSES BEFORE FINAL TAXES 82,495,114 4,067,087

PROVISION FOR FINAL TAXES ON INTEREST INCOME 536,576 188,753

EXCESS OF INCOME OVER EXPENSES 81,958,538 3,878,334

FUND BALANCE AT BEGINNING OF YEAR 79,886,267 76,007,933

FUND BALANCE AT END OF YEAR P=161,844,805 P=79,886,267 See accompanying Notes to Financial Statements.

STaTeMenTS oF InCoMe anD FunD BaLanCe


PLDT-SMART FOUNDATION, INC. (A Private Nonstock, Nonprofit Corporation) STATEMENTS OF INCOME AND FUND BALANCE Years Ended December 31 2012 2011

INCOME Donations (Notes 3 and 9) P=268,105,534 P=150,252,932 Interest (Note 4) 2,682,878 943,766 Foreign exchange gains – 2,333 Miscellaneous 1,211 12,260 270,789,623 151,211,291

EXPENSES Donations (Note 10) 179,670,387 140,511,196 Compensation and employee benefits (Note 9) 3,374,560 2,311,760 Public relations 1,299,550 1,350,500 Professional and other contracted services 1,189,403 1,097,369 Communication, training and travel 571,591 98,062 Taxes and licenses 87,774 11,961 Foreign exchange losses 5,421 – Depreciation 1,433 – Others 2,094,390 1,763,356 188,294,509 147,144,204

EXCESS OF INCOME OVER EXPENSES BEFORE FINAL TAXES 82,495,114 4,067,087

PROVISION FOR FINAL TAXES ON INTEREST INCOME 536,576 188,753

EXCESS OF INCOME OVER EXPENSES 81,958,538 3,878,334

FUND BALANCE AT BEGINNING OF YEAR 79,886,267 76,007,933

FUND BALANCE AT END OF YEAR P=161,844,805 P=79,886,267 See accompanying Notes to Financial Statements.

STaTeMenTS oF CaSH FLoWS


PLDT-SMART FOUNDATION, INC. (A Private Nonstock, Nonprofit Corporation) STATEMENTS OF CASH FLOWS Years Ended December 31 2012 2011

CASH FLOWS FROM OPERATING ACTIVITIES Excess of income over expenses before final taxes P=82,495,114 P=4,067,087 Adjustments for: Interest income (Note 4) (2,682,878) (943,766) Depreciation 1,433 – Foreign exchange losses (gains) 5,421 (2,333) Excess of income over expenses before final taxes

and changes in operating assets and liabilities 79,819,090 3,120,988 Decrease (increase) in: Due from related parties (285,700) 102,000 Advances for liquidation (271,628) 1,550 Available-for-sale investment 199,950 – Increase (decrease) in: Accounts payable and other current liabilities 13,407,351 4,956,095 Due to a related party 140,395 (845,369) Net cash generated from operations 93,009,458 7,335,264 Final taxes withheld by banks (536,576) (188,753) Net cash from operating activities 92,472,882 7,146,511

CASH FLOWS FROM INVESTING ACTIVITIES Payment for deposit for future stock subscription – (100,000,000) Interest received (Note 4) 2,682,878 943,766 Additions to property and equipment (25,800) – Net cash from (used in) investing activities 2,657,078 (99,056,234)

CASH FLOWS FROM FINANCING ACTIVITY Cash advances from Smart – 100,000,000

EFFECT OF FOREIGN EXCHANGE RATE CHANGES ON CASH AND CASH EQUIVALENTS (5,421) 2,333

NET INCREASE IN CASH AND CASH EQUIVALENTS 95,124,539 8,092,610

CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR 87,533,200 79,440,590

CASH AND CASH EQUIVALENTS AT END OF YEAR P=182,657,739 P=87,533,200 See accompanying Notes to Financial Statements.

noTeS To FInanCIaL STaTeMenTS


1. Corporate Information

PLDT-Smart Foundation, Inc. (“the Foundation”) is a private nonstock, nonprofit corporation established in the Philippines on September 6, 1994, to promote programs and projects that encourage and enable low-income communities, particularly those organized as cooperatives or production units, to become active agents of socio-economic growth. The Foundation is allowed, under its Articles of Incorporation, to invest portions of its earnings and properties in shares of stock, bonds, time deposits, or such other projects as deemed advisable or proper by its Board of Trustees to further carry out its objectives and purposes.

The Foundation is registered with the Bureau of Internal Revenue (BIR) as a donee institution in accordance with the provisions of BIR-National Economic Development Authority Regulations No. 1-81 effective December 18, 1989 and is exempt from income tax under Section 30(e) of the National Internal Revenue Code (NIRC) of 1997.

On June 8, 2006, the Foundation, which was duly accredited by the Philippine Council for NGO Certification (PCNC), was registered with the BIR as a donee institution in accordance with the provisions of Revenue Regulations (RR) No. 13-98 dated January 1, 1999. Donations received shall entitle the donor to full or limited deduction pursuant to Section 34(H)(1) or (2) and exemption from donor’s tax pursuant to Section 101(A)(3) of NIRC of 1997. The accreditation granted to the Foundation was for three years from the date of issuance unless sooner revoked by the BIR for violation of any provisions of RR No. 13-98, or upon withdrawal of the Certificate of Accreditation by PCNC. On May 20, 2010, the Foundation renewed and was granted its accreditation with the PCNC for a term of five years expiring on April 29, 2015.

The registered office address of the Foundation is 6th Floor, Ramon Cojuangco Building, Makati Avenue, Makati City.

The Board of Trustees authorized the issuance of the financial statements of the Foundation on April 4, 2013.

2. Summary of Significant Accounting Policies

Basis of PreparationThe Foundation’s financial statements have been prepared on a historical cost basis and are presented in Philippine peso, which is the Foundation’s functional and presentation currency.

Statement of ComplianceThe financial statements of the Foundation have been prepared in accordance with the Philippine Financial Reporting Standard for Small and Medium-sized Entities (PFRS for SMEs). The PFRS for SMEs has been approved for adoption by the Philippine Financial Reporting Standards Council on October 13, 2009 and by the SEC on December 3, 2009. The PFRS for SMEs is effective for annual periods beginning on or after January 1, 2010 and is required to be used by entities that meet the definition of an SME, which include among others, an entity with total assets of between 3 million and 350 million or total liabilities of between 3 million and 250 million.

The PFRS for SMEs is a self-contained standard that is tailored for the needs and capabilities of smaller businesses. Many of the principles in full PFRS for recognizing and measuring assets, liabilities, income and expenses have been simplified, topics not relevant to SMEs have been omitted, and the number of required disclosures has been significantly reduced.



Cash and Cash EquivalentsCash and cash equivalents comprise cash on hand and in banks and temporary cash investments with an original maturity of three months or less. Cash in banks and temporary cash investments earn interest at the respective bank deposit rates.

ReceivablesReceivables comprise of donations committed or promised by related parties and advances on payment of the Foundation’s expenses for liquidation. Receivables are recognized and carried at net realizable value. An estimate for doubtful accounts is made when collection of the full amount of committed amounts to the Foundation is no longer probable. Provision is made when there is objective evidence that the Foundation will not be able to collect the committed amounts. Bad debts are written off when identified.

Investment in an AssociateAn associate is an entity which the Foundation has a significant influence but not control, generally accompanying a stockholding of between 20% and 50% of the voting rights. Investment in an associate is accounted for at cost less any accumulated impairment losses.

Dividend income from investment in an associate is recognized when the Foundation’s right to receive payment has been established.

Financial InstrumentsAs allowed by PFRS for SMEs, the Foundation applies the recognition and measurement provisions of PAS 39, Financial Instruments: Recognition and Measurement, and the disclosure requirements of Sections 11 and 12 of the PFRS for SMEs in accounting for its financial instruments.

Available-for-sale (AFS) investments are non-derivative assets designated as AFS or are not classified in any other categories of financial assets. AFS investments are initially carried at fair value. After initial measurement, AFS investments are measured at fair value with unrealized gains or losses recognized as other comprehensive income in the AFS reserve until investment is derecognized, at which time the cumulative gain or loss is recognized as miscellaneous income, or determined to be impaired, recognized in the statements of income and fund balance.

AFS investments pertain to the Foundation’s investment in preferred shares of stock in Philippine Long Distance Telephone Company (PLDT). These shares are unquoted, therefore, stated at cost.

Impairment of Non-Financial Assets – Investment in an Associate, Property and Equipment, Deposit for Future Stock SubscriptionThe Foundation assesses at each reporting date whether there is an indication that an asset may be impaired. If any such indication exists, or when annual impairment testing for an asset is required, the Foundation makes an estimate of the asset’s recoverable amount. An asset’s recoverable amount is the higher of an asset’s or cash-generating unit’s fair value less costs to sell and its value in use and is determined for an individual asset, unless the asset does not generate cash inflows that are largely independent of those from other assets or groups of assets. Where the carrying amount of an asset exceeds its recoverable amount, the asset is considered impaired and is written down to its recoverable amount. In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects current market assessments of the time value of money and the



risks specific to the asset. Impairment losses of continuing operations are recognized in the statement of comprehensive income in those expense categories consistent with the function of the impaired asset.An assessment is made at each reporting date as to whether there is any indication that previously recognized impairment losses may no longer exist or may have decreased. If such indication exists, the recoverable amount is estimated. A previously recognized impairment loss is reversed only if there has been a change in the estimates used to determine the asset’s recoverable amount since the last impairment loss was recognized. If that is the case the carrying amount of the asset is increased to its recoverable amount. That increased amount cannot exceed the carrying amount that would have been determined, net of depreciation and amortization, had no impairment loss been recognized for the asset in prior years. Such reversal is recognized in the statement of comprehensive income unless the asset is carried at revalued amount, in which case, the reversal is treated as a revaluation increase. After such reversal the depreciation and amortization charge is adjusted in future periods to allocate the asset’s revised carrying amount, less any residual value, on a systematic basis over its remaining useful life.

Deposit for Future Stock SubscriptionDeposits for future stock subscription comprise of advances to a company which is in the process of incorporation. Such are recognized upon outlay of funds or properties with the intention of investing to shares of stock.

Accounts Payable and Other Current LiabilitiesAccounts payable and other current liabilities are current obligations of the Foundation recognized in the statements of assets, liabilities and fund balance when it is probable that an outflow of resources embodying economic benefits will result from the settlement of a present obligation and the amount at which the settlement will take place can be measured reliably.

Revenue RecognitionRevenue is recognized to the extent that it is probable that the economic benefits will flow to the Foundation and the amount of revenue can be reliably measured. The following specific recognition criteria must also be met before revenue is recognized:

Donations. Revenues from donations are recognized when they are unconditionally received or promised and measured at the amount of the consideration received or receivable.

Interest. Revenue is recognized as the interest accrues taking into account the effective yield on the asset.

Miscellaneous. Revenue is recognized when there is an incidental economic benefit, other than the usual business operations, that will flow to the Foundation and that can be measured reliably.

ExpensesExpenses are recognized in the year incurred regardless of when payment is made. Donation expenditures are recognized in the period the donation is approved, provided the donation is not subject to future conditions. Donations that are subject to fulfillment of certain conditions are recognized as expense and payable in the period in which the donee meets the terms of the conditions.

Final TaxesFinal taxes represent taxes withheld by the banks on cash deposits and temporary investments.



ContingenciesContingent liabilities are not recognized in the Foundation’s financial statements. They are disclosed in the notes to financial statements unless the possibility of an outflow of resources embodying economic benefits is remote. Contingent assets are not recognized in the Foundation’s financial statements but are disclosed in the notes to the financial statements when an inflow of economic benefits is probable.

Events After the End of Reporting PeriodPost year-end events that provide additional information about the Foundation’s assets and liabilities at financial reporting date (adjusting events) are reflected in the Foundation’s financial statements. Post year-end events that are not adjusting events are disclosed in the notes to financial statements when material.

3. Significant Accounting Judgments, Estimates and Assumptions

The preparation of the Foundation’s financial statements requires management to make judgments, estimates and assumptions that affect the reported amounts of income, expenses, assets and liabilities at the reporting date. However, uncertainties about these assumptions and estimates could result in outcomes that could require a material adjustment to the carrying amount of the asset or liability affected in future periods.

Revenue RecognitionRevenues from donations are recognized by the Foundation when they are unconditionally received or promised and measured at the amount of the consideration received or receivable evidenced by a deed or certificate of donation. Total donations revenues amounted to ₱268.1 million and ₱150.3 million for the years ended December 31, 2012 and 2011, respectively.

Determination of Impairment of ReceivablesThe Foundation evaluates the need to maintain allowance for doubtful accounts at a level considered adequate to provide for potential uncollectible receivables. The level of this allowance is evaluated by management based on the results of the specific and collective assessment of impairment of financial assets, considering the Foundation’s collection experience and other factors that affect the collectibility of the accounts. These factors include, but are not limited to, the length of the Foundation’s relationship with the donors and other counterparties, their payment behavior and known market factors. The amount and timing of recorded expenses for any period would therefore differ depending on the judgments and estimates made for each year.

The Foundation has due from related parties amounted to ₱2.3 million and ₱2.0 million as at December 31, 2012 and 2011, respectively (see Note 9 – Related Party Transactions). No impairment losses were recognized in 2012 and 2011.

Determination of Impairment of AFS Financial AssetsUnquoted AFS financial assets are considered impaired when management believes that future cash flows generated from the investment is expected to decline significantly. The Foundation’s management makes significant estimates and assumptions on the future cash flows expected and the appropriate discount rate to determine if impairment exists.

The carrying value of available-for-sale financial asset is nil and ₱0.2 million as at December 31, 2012 and 2011, respectively (see Note 6 – Available-for-Sale Investment).

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The carrying value of available-for-sale financial asset is nil and P=0.2 million as at December 31, 2012 and 2011, respectively (see Note 6 – Available-for-Sale Investment).

Impairment of Non-Financial Assets The Foundation assesses impairment on its non-financial assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The factors that the Foundation considers important which could trigger an impairment review include the following:

• significant underperformance relative to expected historical or projected future operating results;

• significant changes in the manner of use of the acquired assets or the strategy for overall business; and

• significant negative industry or economics trends.

Non-financial assets of the Foundation are as follows and no impairment loss was recognized in 2012 and 2011:

2012 2011 Investment in an associate P=100,000,000 P=– Property and equipment – net 24,367 – Deposit for future stock subscription – 100,000,000 P=100,024,367 P=100,000,000

4. Cash and Cash Equivalents

This account consists of:

2012 2011 Cash on hand and in banks P=117,713,489 P=63,158,258 Temporary cash investments 64,944,250 24,374,942 P=182,657,739 P=87,533,200

Cash in banks earns interest at the prevailing bank deposit rates. Temporary cash investments are made for varying periods of up to three months depending on immediate cash requirements, and earn interest at the prevailing short-term deposit rates. Due to the nature of such transactions, the carrying value approximates the fair value of temporary cash investments.

Interest income earned from bank deposits and temporary investments, gross of final taxes, amounted to P=2,682,878 and P=943,766 in 2012 and 2011, respectively.

5. Receivables


2012 2011 Due from related parties (see Note 9) P=2,285,700 P=2,000,000 Advances for liquidation 271,628 - P=2,557,328 P=2,000,000



Impairment of Non-Financial AssetsThe Foundation assesses impairment on its non-financial assets whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable. The factors that the Foundation considers important which could trigger an impairment review include the following:








Interest income earned from bank deposits and temporary investments, gross of final taxes, amounted to ₱2,682,878 and ₱943,766 in 2012 and 2011, respectively.

5. Receivables


Advances for liquidation pertain to cash advances related to the Foundation’s activities and projects, specifically the Marikina Watershed Project, which is expected to be used next year.

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5. Receivables



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5. Receivables



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5. Receivables





6. Available-for-Sale Investment

This account consists of 10% Cumulative Convertible Preferred Stocks of PLDT, which were received as donations on January 15, 2003. The preferred stock is convertible into PLDT’s common stock a year after the year of share issuance, at a price equivalent to 10% below the average market price of PLDT’s common stock at the Philippine Stock Exchange over a period of 30 consecutive trading days before the conversion date. The conversion price, however, shall not be less than the ₱5 par value per share. At PLDT’s option, these preferred stocks are redeemable at par value plus accrued dividends for five years after the year of issuance.

On September 23, 2011, the Board of Directors of PLDT approved the redemption, or the Redemption, of all outstanding shares of PLDT’s Series A to FF 10% Cumulative Convertible Preferred Stock, or the SIP Preferred Shares, and all such shares were redeemed and retired effective on January 19, 2012, or the Redemption Date.

The record date for the determination of the holders of outstanding SIP Preferred Shares subject to Redemption, or Holders of SIP Preferred Shares, was fixed on October 10, 2011, or the Record Date. In accordance with the terms and conditions of the SIP Preferred Shares, the Holders of SIP Preferred Shares as of the Record Date are entitled to payment of the redemption price in an amount equal to the par value of such shares, plus accrued and unpaid dividends thereon up to the Redemption Date, or the Redemption Price. As such, the carrying value of the Foundation’s AFS investment amounting to ₱0.2 million was reclassified to due from related party - PLDT as of December 31, 2012 (see Note 9 – Related Party Transactions).

7. Investment in an Associate / Deposit for Future Stock Subscription

This represents investment in mCompany, Inc. representing a 40% equity interest. mCompany, Inc. was granted by the Securities and Exchange Commission a Certificate of Incorporation on February 8, 2012 to provide IT-enabled services which encompasses data preparation, encoding, transcription, programming and adaptation of system software and middleware for commercial and/or research application, including all aspects of business process outsourcing activities. In 2012, the Foundation’s deposit for future stock subscription was reclassified to investment in an associate account due to the issuance of 100,000,000 Common A shares of mCompany, Inc. with a par value of one peso (₱1.00) per share, or an aggregate par value of ₱100 million to the Foundation.

8. Accounts Payable and Other Current Liabilities


Donations payable and accrued expenses are settled within a year.

Accounts payable are noninterest-bearing and normally settled on 30-day or 60-day terms.

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Advances for liquidation pertain to cash advances related to the Foundation’s activities and projects, specifically the Marikina Watershed Project, which is expected to be used next year.

6. Available-for-Sale Investment

This account consists of 10% Cumulative Convertible Preferred Stocks of PLDT, which were received as donations on January 15, 2003. The preferred stock is convertible into PLDT’s common stock a year after the year of share issuance, at a price equivalent to 10% below the average market price of PLDT’s common stock at the Philippine Stock Exchange over a period of 30 consecutive trading days before the conversion date. The conversion price, however, shall not be less than the P=5 par value per share. At PLDT’s option, these preferred stocks are redeemable at par value plus accrued dividends for five years after the year of issuance.

On September 23, 2011, the Board of Directors of PLDT approved the redemption, or the Redemption, of all outstanding shares of PLDT’s Series A to FF 10% Cumulative Convertible Preferred Stock, or the SIP Preferred Shares, and all such shares were redeemed and retired effective on January 19, 2012, or the Redemption Date.

The record date for the determination of the holders of outstanding SIP Preferred Shares subject to Redemption, or Holders of SIP Preferred Shares, was fixed on October 10, 2011, or the Record Date. In accordance with the terms and conditions of the SIP Preferred Shares, the Holders of SIP Preferred Shares as of the Record Date are entitled to payment of the redemption price in an amount equal to the par value of such shares, plus accrued and unpaid dividends thereon up to the Redemption Date, or the Redemption Price. As such, the carrying value of the Foundation’s AFS investment amounting to P=0.2 million was reclassified to due from related party - PLDT as of December 31, 2012 (see Note 9 – Related Party Transactions).

7. Investment in an Associate / Deposit for Future Stock Subscription

This represents investment in mCompany, Inc. representing a 40% equity interest. mCompany, Inc. was granted by the Securities and Exchange Commission a Certificate of Incorporation on February 8, 2012 to provide IT-enabled services which encompasses data preparation, encoding, transcription, programming and adaptation of system software and middleware for commercial and/or research application, including all aspects of business process outsourcing activities. In 2012, the Foundation’s deposit for future stock subscription was reclassified to investment in an associate account due to the issuance of 100,000,000 Common A shares of mCompany, Inc. with a par value of one peso (P=1.00) per share, or an aggregate par value of P=100 million to the Foundation.

8. Accounts Payable and Other Current Liabilities


2012 2011 Donations payable P=5,459,753 P=8,584,404 Accounts payable 16,836,773 689,141 Accrued expenses 427,663 132,434 Withholding taxes payable 131,155 42,014 P=22,855,344 P=9,447,993

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Accounts payable are noninterest-bearing and normally settled on 30-day or 60-day terms. 9. Related Party Transactions

The Foundation has not recorded any impairment of receivables relating to amounts owed by related parties for the year ended December 31, 2012. This assessment is undertaken each financial year through examining the financial position of the related party and the market in which the related party operates.

The following table provides the summary of outstanding balances as at December 31, 2012 and 2011 transactions that have been entered into with related parties:

Classifications Terms and Conditions 2012 2011 PLDT* Due from related party Due and demandable;

unsecured; no impairment

P=285,700 P=–

Due to related party Due and demandable; unsecured; no impairment

539,285 398,890

Smart Communications, Inc. (Smart)*

Due from related party Due and demandable; unsecured; no impairment

2,000,000 2,000,000


100,000,000 100,000,000

* Common directors The following table provides the summary of transactions for the years ended December 31, 2012 and 2011 in relation with the table above for the transactions that have been entered into with related party:

Classifications 2012 2011 PLDT Donation revenues P=– P=338 Projects and donations 277,610 85,000 Compensation and employee benefits 2,616,646 1,815,676 Professional and other contracted services 529,896 426,324 Communication, training and travel 24,437 58,292

Due from related parties represents committed donations which are yet to be received from Smart and receivables from PLDT due to their redemption of 10% cumulative convertible preferred stocks owned by the Foundation.

Due to related parties represents compensation and benefits of the Foundation’s employees which are paid for by PLDT but to be reimbursed by the Foundation and advances from Smart which was used to invest in mCompany, Inc. (see Note 7 – Investment in an Associate / Deposit for Future Stock Subscription).

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P=285,700 P=–


539,285 398,890



2,000,000 2,000,000


100,000,000 100,000,000







9. Related Party Transactions



The following table provides the summary of transactions for the years ended December 31, 2012 and 2011 in relation with the table above for the transactions that have been entered into with related party:



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P=285,700 P=–


539,285 398,890



2,000,000 2,000,000


100,000,000 100,000,000





- 7 -







P=285,700 P=–


539,285 398,890



2,000,000 2,000,000


100,000,000 100,000,000







10. Donations

From cash donations received mainly from related parties, the Foundation also made cash donations to MVP Sports Foundation, Inc., Samahang Basketbol ng Pilipinas, Inc., Gabay Guro Projects, PLDT Employees Calamity Assistance, Ateneo de Manila University, Creative Synergy, Inc., Philippine Business for Social Progress, Philippine Disaster Recovery Foundation, Inc., PLDT Employee Educational Grant / MVP Academic Excellence Award, San Beda College, Smart Educational Grants, Kapampangan Development Foundation, Inc., Bancom Alumni, Inc., Gawad Kalinga Development Foundation, Inc., Children’s Heart Foundation, Inc., Alagang Kapatid Foundation, Inc., and Armed Forces of the Philippines - EBSO.

11. Supplementary Information Required Under Revenue Regulations Nos. 19-2011 and 15-2010

Revenue Regulations No. 19-2011On December 9, 2011, the BIR has issued RR No. 19-2011 to prescribe the new BIR tax forms that will be used for income tax filing covering and starting with calendar year 2011. Taxpayers using BIR Form 1702, including private nonstock, nonprofit corporations, are now required to present schedules of receipts and itemized deductions as part of the notes to the financial statements.

The Foundation is exempt from income tax under Section 30(e) of the National Internal Revenue Code (NIRC) of 1997. Below are the receipts and itemized deductions of the Foundation pursuant to RR No. 19-2011 for the year ended December 31, 2012. This information is presented for purposes of filing with the BIR and is not a required part of the basic financial statements.

Receipts

Itemized Deduction

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10. Donations


11. Supplementary Information Required Under Revenue Regulations Nos. 19-2011

and 15-2010

Revenue Regulations No. 19-2011 On December 9, 2011, the BIR has issued RR No. 19-2011 to prescribe the new BIR tax forms that will be used for income tax filing covering and starting with calendar year 2011. Taxpayers using BIR Form 1702, including private nonstock, nonprofit corporations, are now required to present schedules of receipts and itemized deductions as part of the notes to the financial statements.


Receipts

Amount Donations P=268,105,534

Itemized Deduction

Amount Projects and donations P=179,670,387 Compensation and employee benefits 3,374,560 Public relations 1,299,550 Professional and other contracted services 1,189,403 Communication, training and travel 571,591 Taxes and licenses 87,774 Foreign exchange losses 5,421 Depreciation 1,433 Miscellaneous expenses 2,094,390 Balance at the end of the year P=188,294,509

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10. Donations



and 15-2010



Receipts


Itemized Deduction



noTeS To FInanCIaL STaTeMenTS- 8 -

10. Donations



and 15-2010



Receipts


Itemized Deduction


- 8 -

10. Donations



and 15-2010



Receipts


Itemized Deduction


Revenue Regulations No. 15-2010Due to the amendment of certain provisions of RR No. 21-2002 on November 25, 2010, the Commissioner of Bureau of Internal Revenue issued RR No. 15-2010 that prescribes the additional procedural and/or documentary requirements in connection with the preparation and submission of financial statements accompanying income tax returns effective December 31, 2010.

Below are the additional disclosures applicable to the Foundation, in pursuant of RR No. 15-2010, for the year ended December 31, 2012:

1) VAT Output and Input Taxes. The Foundation has not declared VAT output taxes nor has it claimed VAT input taxes for the year ended December 31, 2012. The Foundation is exempt from VAT as it does not, in the course of its trade or business, sell, barter, exchange, lease goods or properties and render services subject to VAT. It also does not, whether or not in the course of its trade or business, import goods.

2) Landed Cost of Imports, Custom Duties and Tariff Fees. The Foundation has no importations nor has it paid customs duties or tariff fees for the year ended December 31, 2012.

3) Excise Taxes. The Foundation has no transactions subject to excise taxes for the year ended December 31, 2012.

4) Documentary Stamp Tax (DST). The Foundation did not have transactions subject to DST for the year ended December 31, 2012.

5) Tax Assessment and Litigation. The Foundation has no outstanding tax assessment and litigation as at December 31, 2012.

6) Taxes and Licenses. The breakdown of taxes and licenses recognized are as follows:

7) Withholding Taxes. The amount of withholding taxes paid and accrued for the year ended December 31, 2012 are as follows:

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Revenue Regulations No. 15-2010 Due to the amendment of certain provisions of RR No. 21-2002 on November 25, 2010, the Commissioner of Bureau of Internal Revenue issued RR No. 15-2010 that prescribes the additional procedural and/or documentary requirements in connection with the preparation and submission of financial statements accompanying income tax returns effective December 31, 2010.








Amount Municipal taxes P=11,438 Annual BIR registration 500 Deficiency tax settlement – interest 75,836 P=87,774


Amount Expanded withholding tax P=712,409 Withholding tax on compensation 756,717 P=1,469,126

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Revenue Regulations No. 15-2010 Due to the amendment of certain provisions of RR No. 21-2002 on November 25, 2010, the Commissioner of Bureau of Internal Revenue issued RR No. 15-2010 that prescribes the additional procedural and/or documentary requirements in connection with the preparation and submission of financial statements accompanying income tax returns effective December 31, 2010.








Amount Municipal taxes P=11,438 Annual BIR registration 500 Deficiency tax settlement – interest 75,836 P=87,774


Amount Expanded withholding tax P=712,409 Withholding tax on compensation 756,717 P=1,469,126

PLdt-Smart Foundation, Inc. (PSF)7/F ramon Cojuangco Building

Makati avenue, Makati CityWebsite: www.pldtsmartfoundation.orgemail address: [email protected]

Documents

PSF Annual Report 2012