Message from the Chairman Emeritus

STEWARDS OF POWER

Corporate Governance message from EDC Chairman Emeritus Oscar M. Lopez

I have had the privilege to chair EDC’s board at a time of its transformation.  And I never imagined that this period of transformation will also coincide with domestic and global events that would further define the outcome of EDC’s evolution as an energy company. But I am proud to tell you that EDC has synergized its own corporate strengths with the Lopez business philosophy, bolstering its ability to meet the unique challenges of our time. What we see today is the blueprint of what EDC will become in tomorrow’s energy landscape – the leading provider of renewable sustainable power, including geothermal and hydropower and eventually wind and solar power.

The hard facts on climate change are clear and compelling: greenhouse-gas emissions, primarily from the conventional power sources have started to alter our environment. That means, finding sources of energy that are replaceable, cheap and do not incur environmental or social costs. How do we do that? By generating enormous diversity in supply that are as much as possible, clean and green.  And this is the backdrop by which your company will grow. EDC will be at the forefront of developing more sustainable power sources – the renewables.

We should remember that the energy industry is a vital cog in our country’s economic engine. Clean and efficient energy means greener homes, fresher air and more environment-friendly industries. We make an important contribution to energy security and consequently to the welfare of the planet. We should never allow our critics to detract from that essential purpose.

With the enactment of the renewable energy law, new doors opened up which EDC could capitalize on for its long-term viability. This exciting development can be tapped to enhance EDC’s current power generation assets and provide premium for its new green field projects while meeting the future energy demand. We will continue to contribute to economic progress in a responsible manner via generation of diverse power supply that are as much as possible, clean and green.  EDC’s business model will be reshaped as it reshapes the energy industry.

Today, EDC is the Philippines’ largest geothermal company and the acknowledged leader in wet steamfield technology. EDC is one of the consistent dividend payers in the Philippine market and one of the top taxpayers. Its privatization is the model in the industry and its royalties have been instrumental in improving the quality of life in the communities that host its businesses. These are on top of EDC’s investments in environmental protection and biodiversity preservation.

We, the members of the EDC board are but fiduciaries, or stewards, of the investing public’s trust – a trust you so placed in us because you believe in our capability to enrich a very important energy resource unique only to our country.  And as chairman of the board, you can be assured that EDC will remain committed to the tenets of good corporate governance as we take care of this power resource. Company-wide risk management is in full gear and is now blanketing your investments from any potential harm the financial crisis may pose.  We will continue to ward off recession threats by being savvy with more value-enhancing assets such as steam fields, geothermal power plants, wind farms and hydropower projects.

As you can see, there are tremendous opportunities that lie at the heart of EDC’s business. The company’s business spans the whole socio-economic spectrum allowing us to contribute meaningfully to the nation’s progress while profiting from the viability of its existing and prospective ventures.

As I commend the executives and workforce of EDC for sustaining the culture of competency and excellence, I also thank you, our valued shareholders, for extending the same trust and confidence to us so we can bring in more value to your investment. Rapacious forces of the financial or political kind may have impeded our growth path in 2008 but I assure you that we have the equal, if not greater strength to overcome them. And learning from the lessons of the past, the payoff could be huge when visionary companies reenergize and take off after the dust settles. And this is what EDC is set to achieve.

Return to About CG