2017 Annual Report

On The Move:
Resilience, Evolution, & Agility in the Digital Age
 The Road to the Future
Table of Contents
02 The LBC Way
04 Our Businesses at a Glance
06 Remittance Partners
10 Chairman’s Message / President’s Report
16 Digital Transformation
18 2017 Operational Highlights
48 Corporate Social Responsibility
54 The LBC Universe
56 Corporate Governance Report
60 Board of Directors and Management Team
64 Financial Highlights
71 2017 Audited Financial Statements
151 Corporate Structure
152 2017 Milestones
The future of business—in any industry—is
digital. That much is certain. But the road to fully
digitizing a company, especially one that has been
in existence for over 60 years, with a network
that spans continents, isn’t simple, nor easy. One
merely cannot declare an intent to “go digital,”
and see an entire organization fully transformed
overnight. It’s a process that has to be approached
with diligence and thoughtfulness, given the
impact that it will make to all its stakeholders.
That’s not to say, however, that forward-thinking
companies can’t start the process now. In fact, we,
at LBC, are proud to say that we’re On The Move.
Given its history, breadth, and reach, LBC is
rethinking every aspect of its enterprise to ensure
Resilience, spur Evolution, and guarantee Agility
in this digital age.
It is a process that is not straightforward—
but our expertise in logistics, which neither is
straightforward, yields us the determination and
skills to make this move— one that we believe
is critical in our mission to consistently address
evolving market needs. We will shift the traditional
models of the forwarding, express delivery,
money remittance, and corporate logistics
industries. This transformation will leave no part of
“LBC Universe” untouched—impacting everything
from internal operations and systems to brand and
customer relationships.
Here is our roadmap to achieving these capabilities
and responding to new opportunities. Beyond
what is already being done now, LBC’s vision of
digital transformation will solidify our status as a
benchmark for “Moving It” in the digital age.
LBC Express Holdings, Inc. | 1
The Way
What We Are All About
What We Commit To
Our Brand Promise:
What Our Culture Our Brand Attributes
“A friend who makes your day”
Moves and These are the values that define
LBC is the warm and helpful partner who enjoys moving everything we do in LBC:
Drives Us packages, goods and money for you. We understand
Our Vision. By 2020, LBC shall be that people look forward to what you’re sending, so we • Humility Clarity Certainty Convenience
the access and delivery solutions provide clarity, certainty and convenience to help make • Integrity
provider of choice, professionally and everyone’s day.” • Trust We believe in providing We believe in providing We promise to make your
technologically equipped to serve • Commitment transparent and timely our various stakeholders experience as hassle-free
Filipino families and business entities • Social Responsibility information to give with certainty through: as possible by:
through total customer experience. • Customer First customers peace of mind. • Presenting relevant • Constantly improving
• Teamwork We want to pay particular options for different our processes and
Our Mission. Linking and bridging What Inspires Us • Innovative attention to: needs adding new and
customers through our network and • Positive Thinking • The process of moving • Our staff’s relevant capabilities
Our Brand Tagline:
innovating new solutions to provide items or money commitment to • Easy access to call
faster, easier, and more cost-effective
delivery solutions. “We like to move it” • The schedule and
timing of your delivery
set expectations
and deliver on our
center and frontline
staff
• Clear communication promises • Growing of our
of our cost • Fair and timely updates network coverage
of information

1 3
Integrate core competencies Apply new capabilities to win
to create a solid foundation customers through quality and
for our service commitment. customer satisfaction

How We History and Network Quality and Service

Deliver 2 Understand and Learn

Gain meaningful insight into
the evolution of the modern
4 Innovate and Execute
Ensure resilience and agility as well as

Our Mission
maintain market position by delivering
customer and apply to high value products and services.
reinvent the business model.

2 | 2017 Annual Report LBC Express Holdings, Inc. | 3

Our Businesses at a Glance
Being at the forefront of the courier and logistics industry gave us the leverage to set the benchmark for how
the industry could evolve through the years. It is because of this that LBC has consistently forged a path of
innovation with each decade and every milestone.

LOGISTICS Retail Corporate MONEY Remittance Payment Solutions

SPECIALIZED BILLS PAYMENT

COURIER CORPORATE INSTANT PESO PADALA
SOLUTIONS CASH ON PICK-UP/
AIR CARGO PESOPAK DELIVERY CASH ON DELIVERY
FREIGHT FORWARDING
BALIKBAYAN BOXES CORPORATE REMITTANCE PAYOUT RETURN AND REFUNDS
SUPPLY CHAIN
CORPORATE PAYROLL
DISBURSEMENT

Revenue
Contribution (%) 57.4% 32.2% Revenue
Contribution (%)
9.6% 0.8%

Revenue Revenue
(in million pesos) PHP5,751.66 PHP3,229.51 PHP961.72 PHP77.23
(in million pesos)

4 | 2017 Annual Report LBC Express Holdings, Inc. | 5

Remittance Partners
INBOUND PAYOUT INBOUND OR PAYOUT (RECIPROCAL)

Over 40
Money Transfer Operators, Money
Services Businesses and Banks

2,200

branches

1,321 180
BILLERS RANGING FROM VARIOUS UTILITIES, INSTITUTIONS,
Branches nationwide CHARITIES, ETC.

BILLS PAYMENTS

Al Ghurair Exchange Money Exchange Remitix

(Ersal) Multi-Money Transfer Sigue Money Transfer
Asia United Bank New York Bay Smj Teratai Sdn Bhd
Atin Ito Remittance Ltd. Philippines/ Transfast Speed Remit
Bank Of Commerce Remittance Speed Send
Bank Of Philippine Island Onyx Exchange Tempo Financial (
Cash Express / Al Ansari Pacific Ace Forex, Ltd. I-Transfer)
Exchange (Pacific Ace) Tml Remittance Center CORPORATE PAYOUT OR CORPORATE PAYMENT AND
Cash Sense
China Bank
PETNET
Philrem Uk
Tranglo
U-Remit International CORPORATE REMITTANCES COLLECTIONS
Cimb Islamic Bank Berhad
Fastremit (Formerly: Wct
Pinoy Express
Placid Express
Corporation
Unidos Financial Services PAYOUT
CLIENTS
Express) Plus One Direct Business Wic Worldcom Finance
Franki Exchange Provider, Inc./ Ayannah Ltd. (Worldcom)
Ime (Intl Money Express) Prabhu Money Transfer Zenj Exchange Philippine Red Cross  Life Research Philippines
Instant Cash Progoti Exchange Philippine Veterans Bank Mary Kay
Jrf (Japan Remit Finance) RCBC
I-Fashion Iload
Mailroom 
AGB Nielsen

6 | 2017 Annual Report LBC Express Holdings, Inc. | 7

 There are achievements only LBC can claim—made possible simply
because we like to move it. And the honor, is all ours—as we take pride
in how we serve each customer, for every transaction, every time.
We believe our business is anchored on our ability to move not just
parcels, but lives. What do people mean when they say “ipa-LBC mo”?
It’s not just about sending; it’s about doing so with the peace of mind
that your package will arrive safely in the hands of its recipient.
8 | 2017 Annual Report
We make a difference by making sure that the trust our customers give
us is repaid with reliability, transparency, and honesty. It’s a reputation that
we’ve worked hard to establish since the 50s; and one that we strive to live
up to by continuously innovating.
Today, we’re On the Move once again—this time towards digital
transformation. Your needs are changing…and we’re keeping up the pace
to change with you.
LBC Express Holdings, Inc. | 9
“2017 was a great year for
LBC...The real challenge Message from the
moving forward is how
we can do more.” Chairman
and President’s Report
Dear fellow Shareholders,

Being at the helm of a brand like LBC, it’s not

unusual for me to be asked about the secrets
behind its success.

If I may be so bold to say so myself—the answer PHP 10B

isn’t very esoteric. LBC was a business built on
values that still drive it forward today. These same PHP 8.7B
values lend itself to a team who bring enthusiasm
and energy to its success. And year after year, we PHP 2.0
can count on this to bring unprecedented, robust
PHP 1.8
growth for the enterprise. PHP 1.1

PHP 1.0
2017 was no different.

We expanded operations at many levels, in

response to our markets requiring more efficient, PHP 4.3 PHP 5.3
better, and even faster services. We developed
capabilities to meet our customers’—both retail and
corporate—ever-evolving needs and demands. We
also saw our traditional business models evolve to PHP 1.1 PHP 1.0
address and adapt, not just to consumer needs, but 16 17

to the entire industry and economy.

MONEY WAREHOUSING

To that end, 2017 led to our company’s healthy AIR CARGO OTHERS

financial performance, with double-digit growth. SEA CARGO

Revenues increased 15% to PhP 10 billion in 2017 COURIER

from PhP 8.7 billion in 2016. Gross profit (service

revenues less cost of services) also increased to 2016 VS 2017 REVENUES
PhP 3.4 billion from PhP 3.1 billion in 2016. The (IN BILLIONS PHP)
group’s operating company, LBC Express, Inc.,
likewise registered growth in Net Income after
tax, increasing 7% in 2017 to PhP 985 million
from PhP 920 million in 2016.

10 | 2017 Annual Report LBC Express Holdings, Inc. | 11

 5,296
AIR CARGO
50%
53%
4,270 In the domestic express market, LBC consistently
MONEY leads by virtue of our “Day 1” door-to-door
10% nationwide acceptance and delivery service.
This is a service that requires the seamless and
24%
OTHER INCOME 22%
simultaneous operations of multiple departments:
4% 2,006
136 delivery hubs and 14 distribution centers that
WAREHOUSING,
12% 11%
will enable acceptance across 1,321 branches
NVOCC AND
1,804 nationwide. Suffice to say this isn’t an easy feat;
COLDCHAIN,
1,161
1,124 but in spite of volumes, we are proudly able
PRINTING 1,008
2%
1,004
409
to maintain a 99.8% sorting accuracy in our
-13% 180 335 distribution centers and hubs across the country.
COURIER 117
20% Warehousing,
NVOCC,
In the LBC Business Solutions, revenues increased
OTHER
MONEY AIR CARGO SEA CARGO COURIER
ColdChain,
Printing
INCOME
for all segments, due to the company’s unique
SEA CARGO capability of combined logistics and money
11% 2017 2017 vs 2016 VARIANCE services, yielding a more “value-added” service.
2016 This unique edge is an integral and critical
combination that facilitates seamless transactions
2017 TOTAL REVENUES 2017 VS 2016 for eCommerce, and unlocks its inherent potential.
SHARE BY SERVICE REVENUES BY SERVICE That’s one of the unique advantages that LBC
IN PHP MILLIONS brings to the table—the ability to enable businesses
with multiple payment fulfillment services—
covering refunds, reverse logistics and payment
Logistics revenues continue to contribute the This also means that sea Cargo revenues have collection; the latter allowing our corporate clients
lion share to the company’s coffers, with 87% likewise increased, contributing PhP 1.1 billion to offer cash-on-delivery options to their clients.
contribution at PhP 9 billion, a 19% growth from to revenues—a 12% increase from PhP 1 billion This is critical to the growth of eCommerce in the
the previous year. LBC Logistics revenue can be in the previous year. For international inbound Philippines, and you should be proud of LBC’s
further segmented into its Retail and Corporate cargo, this translates to 5,432 TEUs (twenty-foot distinct ability to empower that.
businesses, both having double-digit growth in equivalent) of incoming sea cargo from the
2017. Retail Logistics grew 16% to PhP 5.8 billion Middle East, Asia-Pacific, Europe, and North In the Philippines, 72 new branches were
from PhP 5 billion in 2016; while Corporate America in 2017—predominantly Balikbayan opened across Metro Manila, Luzon, Visayas and
Logistics increased 26% to PhP 3.2 billion from Boxes sent by Overseas Filipinos to their families Mindanao— bringing the total number of wholly-
PhP 2.6 billion in 2016. in the Philippines. Total Sea Cargo TEUs however, owned branches to 1,321 by the end 2017. This
both International and Domestic reached 8,449 in branch expansion continues to provide volume
Being the leading express delivery company 2017, up 4% from 8,138 in 2016. Revenues from growth while also extending the brand’s reach and
in the country, it’s no surprise that we hold a LBC’s Courier business also increased by 11% in footprint. Revenue from Philippine retail branches
significant 34% share of domestic Air Freight Cargo 2017, to PhP 2 billion from PhP 1.8 billion. increased 12% in 2017, contributing a total of PhP
forwarding. According to the Civil Aeronautics 645 million to total revenues of the company.
Board, that’s a total of 10,075 tonnes forwarded by
LBC just for the first half of 2017 (year-end figures
are yet to be released). From Air Cargo alone, we
earned PhP 5.3 billion in 2017, a 24% increase from
last year’s PhP 4.3 billion.

12 | 2017 Annual Report LBC Express Holdings, Inc. | 13


A Chat with MAC: President & COO Mike Camahort began his
nationwide Digital Transformation caravan with launch events
with leaders in Metro Manila and Metro Cebu. He will continue
to personally visit key areas to share his vision on Digital
Transformation.
14 | 2017 Annual Report
In the pipeline for 2018, LBC aims to open 80 more
branches across the country, scattered between
populous major cities and likewise going deeper
into second- and third-class municipalities in
various provinces in the Visayas and Mindanao.
2017 was a great year for LBC.
However, without belittling everything that was
achieved in 2017, all these are just par-for-the-
course for a company that’s recognized as an
industry leader and the benchmark for Global
Filipinos.
Your company is equipped with a fleet of
thousands, with strategic warehouses and
distribution centers all over the world, employs
tens of thousands of associates across the
globe, and a heritage that continues to inspire
trust throughout our now close to 70 years of
existence. You can’t expect anything less, knowing
every person responsible for where we are know
has been working towards this goal.
The real challenge moving forward is how we can
do more.
For years, LBC has witnessed the changes
brought about by socio-economic, political and
technological factors. Through it all, we have
remained a strong and steady contender in the
industry—consistently introducing innovations that
have since become ingrained in Filipino culture.
Today, with digitalization set to revolutionize the
entire industry, we see another opportunity for
LBC to define itself across all its business segments.
Technology has, literally, changed every aspect of
the way businesses operate—and LBC is on the
move to make sure that we lead the pack.
To set our Digital Transformation on the right At the end of the day, however, this goal goes
course, we have to make sure that it is at the beyond rolling out new platforms and solutions.
core of our operational agenda. I am keenly
aware of the challenges that this transformation We are moved by the idea that our mission to
presents. Rethinking the way we do business in transform will allow us to evolve our business
response to the digital reality requires time; and models to retain our market position, build
time is a rare resource for a company with our resilience in fickle economies, as well as remain
breadth and scale. Still, as we find ourselves at this agile amid growing competition.
critical crossroad, I am compelled to ask you all,
my fellow shareholders, to look at and consider We believe in our ability to set LBC apart as a fully
your company’s Digital Transformation not as digital organization—tough enough to keep up
something that can be achieved in an instant, but with the incredible pace of technology, with just
rather, as a journey. the right amount of flexibility so we can adapt to
changing needs, while anchored on the values that
The profound changes we have in the pipeline will built us.
transform the way we do business. It’s not going
to happen overnight but we’ve set clear targets to And so I urge you remember this: the idea is for us
work towards. We’ve made significant investments is not to do technology for the sake of technology,
towards its realization and we will continue to do but to use it so that we continue to move lives in
so as we keep moving forward. more meaningful ways.
We also, I assure you, fully recognize the Join me, as we continue to Move It.
magnitude of this undertaking. Amid all these
challenges and the seemingly overwhelming
tasks at hand, I am proud to say that we have
already made significant inroads towards seeing
this vision through.
Digital Transformation, after all, is a process that MIGUEL ANGEL A. CAMAHORT
starts with our people, slowly manifesting itself Chairman of the Board
through the tools we begin to utilize. To that President & Chief Executive Officer
end, we have been stepping up efforts to roll out
solutions, develop capabilities, and collaborate
with key stakeholders that will be critical to
the success of this massive endeavor. We also
know that leadership should and will drive this
metamorphosis, which is why I have empowered
other leaders of the company to likewise become
captains of this paradigm shift, to ensure its success.
LBC Express Holdings, Inc. | 15
 How These Moves Will Change Everything

LBC’s Digital Transformation will accelerate our own business activities, processes and competencies
that will, in turn, impact our stakeholders in strategic and meaningful ways. We will harness Digital
Transformation to radically improve internal performance, partner relationships, and expand reach
across different business segments.

• We will further develop the first mile to make us
accessible for pick-ups for the retail market, and
small-corporate accounts (MSMEs)
• We will set up our cross-border operations to
capture the e-Commerce market at its origin,
making LBC an end-to-end logistics service
provider
• We will partner with other logistics service
providers through crowdsourcing, making our
pick-up and delivery operations “burstable.”
• We will expand money transaction through
digital currency solutions, allowing peer-to-peer
payments or C2B payments
• We will ensure improved efficiencies in our hubs
All these initiatives will be driven by technology, and
supported by our skilled workforce.
LBC has invested on Digital Transformation to ensure
that infrastructure and systems will support our

Digital Transformation • We will utilize crowdsourcing to fulfill the need for

surge of volume, thus providing a cost-effective
solution to demand
automated processes, and to enable better decision
making through information transparency and
integrity across all touchpoints.
Achieving our vision is anchored on our ability to digitally transform the way we do things, the Way We Move. • We will expand our Returns Services to Reverse
Logistics through reselling, liquidation or disposal
However, Digital Transformation is not only just about incorporating the technological tools needed to change of returned items
the organization; it is a massive undertaking given the scale of the company, and understanding that changes
will only begin once mindsets of the human elements are also shifted. This “Change Management” for a 70-
year old company, a heritage brand, will include over 8,000 associates across the globe, and a vast network
of brick and mortar stores, hubs, and warehouses. We’re up for the task, we’re ready for the challenge.

For our customers… We are upgrading your company’s core logistics

Evolving consumer behavior and preferences are
driving the way LBC wants to approach business. Our
company will be introducing solutions for a market
that is connected 24/7, time-starved, with demands
anchored on technology’s ability to respond at the
speed of need.
In response to customer demand, LBC recognizes
that we cannot continue running our business with
the current processes and technologies. Automation
of all key processes is needed to survive and to be
relevant in the industry.
applications to automate all manual processes.
Operations will significantly change once fully
implemented, and we all look forward to this
coming to fruition by 2019. Your company will also
be introducing additional products and services to
customers of all segments.
For our partners… LBC has disseminated DT-
related communications,
Boundaries among suppliers, service providers cascaded to all
employees, enterprise-
and consumers are evolving quickly, as a result of wide, to encourage ALL
rapid shifts in technological advances. This entails a to join the bandwagon
fundamental rethinking about how LBC streamlines and engage more
internal processes, and will prioritize, ever more, associates to buy-in to the
movement.
driving speed and efficiency.

16 | 2017 Annual Report LBC Express Holdings, Inc. | 17

 LBC’s enterprise-wide Digital Transformation will be
supported by a full-stack of IT initiatives covering
everything from infrastructure to consumer-facing
technologies.
The scale of this undertaking is unprecedented. And
to date, key upgrades and functionalities are already
being introduced in the very framework of LBC’s
operations.
Operational Highlights
• Implementation of Vistra
• Implementation of RAMCO HR System
• Enabling the RemPOS System
• Enabled API and webhook integration with
eCOM for major corporate accounts including
the country’s largest eCommerce shopping and
platforms Lazada and Shopee, via QuadX
• Received CAS Accreditation

The scope of the LBC IT system spans the group’s
subsidiaries and affiliates in countries across Asia-
Pacific, USA, Canada, the Middle East, Europe and
Australia, covering both its Corporate and Retail
businesses, also for both Logistics and Money
segments. The transformation’s primary objective, in
the technological aspect, is to replace and enhance
Operational Highlights: existing systems, a critical functionality given LBC’s
global reach, breadth, and vast scope of services.
Moving forward
The IT team will provide the digital foundations which
will support all operations, and from which service
innovations and new or improved products will
be developed; while also improving efficiencies by
providing timely data to all stakeholders.

Information Technology This improved system will enhance the main cargo
“Exchange center” in Manila, and allow integration
into the established “Put-To-Light” (PTL) sorting
system, which was also a recent development for
the company.

“The IT team enables the company in a semi-

“We are confident a full digital transformation
will be completed by the first half of 2019.”
Alexander Francis D. Deato
Senior Vice-President, Information Technology, LBC Express, Inc.
automated state and ensures that all LBC systems
are fully integrated. We are a team that supports
LBC’s push to go global. And our contributions will
ensure that LBC can connect and integrate to any LBC
partner and agent.”

18 | 2017 Annual Report LBC Express Holdings, Inc. | 19

 ISO-Certified LBC
In line with LBC’s commitment to quality and service
excellence, we have certified our organization to
the ISO 9001:2015 Quality Management Systems 7 consecutive years
standard, a global standard, which is focused on LBC has been ISO certified
meeting customer expectations and delivering
customer satisfaction.

To date, LBC has the most number of ISO 9001:2015

certified sites among logistics companies. Our
compliance to ISO 9001 standards means we
consistently strive to stay in tune to what makes this
business work – a continuous effort to inject quality
into the heart of operations.

The journey to quality excellence started in 2011

with LBC Solutions, the corporate arm of LBC, with
Operational Highlights: its sea and air freight services certified. On its 7th
year of being certified, LBC has proven its ability

Quality Excellence to sustain, extend and renew to cover air and sea
freight logistics, remittance and payment solutions,
contact center management for corporate and retail
customers following the risk-based framework of the
ISO 9001:2015 standards.

Awards Received

“The success of LBC’s 7-year continuous certification to ISO 9001 lies on its core
values – integrity, teamwork, and commitment. These values matched with our
passion for customer centricity and discipline give us the foundation to move
faster as we go through digital transformation.”
Marizza M. Bacabac
Senior Manager, Quality Excellence, LBC Express, Inc. Trusted Brands Philippines 2017 LBC President & COO Miguel LBC Express, Inc. ranked 255
Airfreight / Courier Service Angel A. Camahort nominated in the 2017 BusinessWorld
Category, Platinum Winner Global Filipino Executive of the Top 1000 Corporations, and
Remittance Center Category, Year 2017 Asia CEO Awards leading Freight Forwarding
Gold Winner Services company

20 | 2017 Annual Report LBC Express Holdings, Inc. | 21

 It is LBC’s goal to provide quality customer care that is
humane, personal, and prompt, and always available
through multiple touchpoints and platforms. Digital
Transformation, empowered and enabled by robust
IT support allows us to deliver personalized customer
service that veers away from traditional, template
responses. Achieving this, while anchored on cost-
efficiency, was also a priority for our team in 2017.

Operational Highlights
• ISO certified in June 2017
• CCM achieved 12% savings from budget,
12%
savings from
3.58
Minutes averaging
maximizing cost efficiency. budget, handling time,
• Creation of Business Unit Coordinators & maximizing cost exceeding target of
Customer Feedback team (met the target AHT efficiency 3.9 minutes
of 3.9, with actual of 3.58 minutes), for more
personalized servicing of all clients, internal and
external

Operational Highlights:

Customer Care INBOUND KEY PERFORMANCE INDICATORS 827% 1,493,009

Management 2015 2016 2017

increase in
engagement for both
Facebook and Twitter
47,007

47,007

VOLUME
Answer Level 96% 96% 96% 161,062 1,446,002
140,058

2,693 22,699

Average Handling 137,365 138,363

“The CCM team attends to a large volume of daily Time (minutes) 4.11 3.23 3.58 15 16 17

customers queries and concerns, with urgency, and

ensures that each customer is satisfied with our TWITTER
SOCIAL MEDIA KPI
FACEBOOK
offered resolution.” Total response
Time (seconds)
60 45 57
The exponential increase in Social Media handling
volumes is indicative of the shift from phone-in
Denny C. Munoz Call Volume queries. The CCM team has efficiently handled
Senior Manager, Customer Interaction, LBC Express, Inc. (millions)
2.47 2.28 1.91 both channels.

22 | 2017 Annual Report LBC Express Holdings, Inc. | 23

Operational Highlights:
Compliance
We navigate through the complexity of local and
international trade rules not simply because we have
to, but because it’s critical to ensuring proper service.
LBC complies with Republic Act 9160 or the Anti-
Money Laundering (AML) Act, and Anti-Money
laundering laws in other international jurisdiction
where LBC operates money remittance service.
Furthermore, the company regularly reports to the
AML Committee to provide details on the activities of
the LBC Compliance Department for the Philippines
as well as international origins.
The company constituted an AML Committee, to
ensure compliance functions are properly carried
out, giving it the authority to decide and act in
behalf of the Board of Directors on AML matters.
This movement is a concrete manifestation of
Management’s full support of these endeavors to
ensure regulatory compliance.
Members of the Committee are:
• Enrique V. Rey, Jr., Chief Risk, Audit, Investor
Relations & Compliance Officer
• Rene E. Fuentes, SVP - Overseas Retail
Operations
• Oliver L. Valentin, SVP - Philippines Business Unit
• John Paul Misa, AVP Legal
• Hermogenes Mercado, VP for Corporate Money
Treasury/Cash Management
• Last November 2017, a new member to the
Committee was added: Alexander Francis D.
Deato, SVP-Information Technology
24 | 2017 Annual Report
Operational Highlights:
Data Protection & Privacy
Compliance Operational Highlights Data protection and privacy is part and parcel of our
1
APPOINT A
brand promise. DATA PROTECTION
• In compliance with the law, Management OFFICER (DPO)
oversight of its Money Laundering Prevention At LBC, we do what is necessary to protect personal Adhere to the Data Privacy Act
Program (MLPP) program; Improvement and information of our customers and employees. In
dissemination of; reflects changes/updates in the fact, a move to comply with newly implemented
AML laws and regulations and distributed to all data privacy and protection laws everywhere LBC
2
CONDUCT A PRIVACY
branches and hubs operates is already in motion. Above and beyond IMPACT ASSESSMENT
meeting regulatory laws, we put focus on customer Know the dangers
• Internal controls for audit and compliance privacy as an intrinsic part of our service--especially
as we move towards Digital Transformation.
3
CREATE A PRIVACY
To that end, every project, new service innovation or
Trust, credibility, and offer, that LBC introduces in its Digital Transformation
MANAGEMENT PROGRAM
Be responsible
roadmap considers its impact on data privacy; it is
transparency are critical Privacy By Design. Furthermore, as an organization,
we respect the personal information entrusted
and imperative to LBC’s
4
IMPLEMENT STEPS TO
to us by our customers and employees. We are ENSURE PRIVACY AND
operations.” currently, and will continue to enhance our internal
systems, policies and protocols-- deserving of all our
DATA PROTECTION
Comply completely
stakeholders’ trust, and enhancing our reliability as a
company, and as a brand.
Moving Forward
5
PREPARE FOR ANY
DATA BREACHES
• Continuous and consistent AMLA Training for Be alert
all employees handling or involved in our
remittance business segment
• Continue to leverage on technology to ensure
safer and transparent transactions Source: privacy.gov.ph
• Continue to ensure due diligence from and with
partners
“LBC’s obligation isn’t just about delivering parcels—
but rather, a commitment to ensure that every
transaction happens safely and securely—building
our customer’s trust and establishing a relationship of
transparency with our key stakeholders.”
Enrique V. Rey, Jr.
Chief Risk, Audit, Investor Relations & Compliance Officer, LBC Express, Inc.
LBC Express Holdings, Inc. | 25
 1,439
2.5

2.1
1,322

24%
CAGR: 2015-2017
1.7
889

P560M
2017 net income before 15 16 17
15 16 17
tax, exceeded target by
37% for the year
REVENUE EMPLOYEE HEADCOUNT
(IN BILLIONS PHP)

LBC drives eCommerce
Logistics plays a critical role in unlocking e-commerce
in this country. In fact, LBC’s unique capability of
Operational Highlights: being able to offer combined logistics and money
services was a catalyst for the growth of eCommerce
Aligned with LBC’s mission, the team provided
innovative solutions to customize customers’ various
requirements. Using the right technology, the goal
was able to support new business capabilities and
implement continuous processes improvement and

Business Solutions in the Philippines.

Being a total supply chain solutions provider, LBC

simplification.

Currently, we are expanding the business by

Business Solutions sought to focus on improving
and maintaining operational and people efficiency,
responding to customers’ changing needs and
optimizing cost of service delivery.
Total Supply Chain Solutions provider
partnering with key stakeholders and focusing on
talent retention and individual employee growth.
• Rising e-commerce driven by cross border
transactions, time-definite delivery and demand
for collection services support cash-on-delivery,
as well as reverse logistics
• Growth of SME sector supported by Send Tipid
service
• Digital transformation prompted by
implementation of key technologies
• Increasing demand of supply chain solutions
leading to warehouse expansions and value
added services.

Enabling businesses of all sizes: LBC Business Solutions

provides various logistics services to cater to Micro-,
Small-, Medium- and Large Enterprises

26 | 2017 Annual Report LBC Express Holdings, Inc. | 27

 Moving forward
• Implement cross border movement of
international online trade via online shops
alongside key partners: Lazada, Shopee, KS
Logistics, Cebu Pacific.
We have identified • Utilize the network of nautical highways and road
connections with the on-going RORO project
major catalysts that are • On-going improvement of warehousing services
to focus on storage of goods to value-added
poised to prompt major services (pick and pack, cross-docking, inventory
management, and distribution) with key partners
operational shifts. • Continue to leverage existing platform, expand
network and position of cash on delivery (COD)
collection capabilities
• Enhance fulfilment and delivery services including
warehousing, packaging, delivery, billing
payment and other services
Logistics solutions for corporate clients are
a combination of air, sea, and land freight to
maximize efficiencies and ensure speed to
market nationwide and overseas.

Widely recognized
and trusted brand

Strategically
Integrated located 1,928
IT Infrastructure warehouses,
distribution centers 1,723
and hubs
LBC Business Solutions
is poised to benefit from
925 926 the surging demand for
Close corporate logistics.
Extensive relationship
domestic and with
global networks key carriers

14 15 16 17

NUMBER OF CORPORATE CUSTOMERS

28 | 2017 Annual Report LBC Express Holdings, Inc. | 29

 ,
The backbone of LBC s operations
No other company has the strength, breadth,
size, and network that LBC has built. Despite the
scale of its operations however, LBC functions with
efficiency, delivers quality consistently, and moves
with notable agility.

Maintaining operational excellence means

understanding the internal systems and streamlining 771
75
them to achieve goals. For 2017, this included: 678
74

Operational Highlights: • Restructuring manpower to improve day 516 54 361

350
to day operations resulting in increased in 308
307

Philippine Systems
420 46
delivery performance as it guided the number 44
41
needed manpower.
32
• Implementation of NWOW (New Ways of
Working) through the assistance of Process
Excellence Team (PET) to provide a better
perspective of accountability and responsibility
on each Associate up to Managers.
NCR LUZON VISAYAS MINDANAO

2017 2017 PRODUCTIVITY PER COURIER

“The department focuses on our ability to build
value, inspired by LBC’s culture of excellence and
transparency. Ultimately, this encourages cooperation
within the team, and innovation.”
Rene E. Fuentes
Senior Vice-President, Systems & International Operations
LBC Express, Inc.
LBC invests a lot into ensuring efficiency in every 2016 2016 PRODUCTIVITY PER COURIER
aspect of its business. Not just to benefit the team that’s
behind every padala, but to make sure that LBC is able
NUMBER OF DELIVERY COURIERS BY AREA
to give customers the best value for its customers.
Moving forward
Foster commitment towards growth, supported by
implementation of technological initiatives in internal
and consumer operations to fulfill LBC’s company-
wide objective or digital transformation.

30 | 2017 Annual Report LBC Express Holdings, Inc. | 31

 2,189

1,711 1,776

1,240

The ongoing digital transformation further enhances the main cargo “Exchange center” in
Manila, and integrating into the established “Put-To-Light” (PTL) sorting system which was
14 15 16 17 also a recent development for the company. The PTL system increases sorting capabilities
and efficiencies as volumes increase and likewise integrates into current mobile and
handheld terminal applications used in logistics operations.
NUMBER OF COURIERS

32 | 2017 Annual Report LBC Express Holdings, Inc. | 33

 As the population of overseas Filipinos continuously increases and spreads out
further into more cities around the world, the demand for LBC services, likewise,
continues to grow. To that end, we have identified key overseas locations where
we believe we can continue serving Global Filipinos with our unique brand of
customer service-- reliability our market has come to trust for over 60 years.

LBC is in a unique position to offer worldwide reach anchored on Filipino values.

We focus on providing excellent service to both internal and external customers,
with a commitment to serving Filipinos--wherever they are in the world.

Operational Highlights:

International Operations

34 | 2017 Annual Report LBC Express Holdings, Inc. | 35

 Operational Highlights
• Improved Direct Cost – Lowered ratio by 4
points, from 52% share to revenue to 48% share
to revenue
• Significant Increase in 2017 Net Income by 219%
vs 2016
• Online booking and portal for Customs Forms,
Packing lists, and other regulatory requirements
• Boosted employee engagement through
implementation of feedback and engagement
programs
• Ensured efficient operations through real-
time platforms post transaction; achieved 71%
customer satisfaction based on surveys

Moving Forward
• Consistent online expansion / digital
transformation to provide more well-rounded
and comprehensive services
Operational Highlights: • Implementation of real-time feedback platform,
International Operations providing better insight into operational
improvements and customer satisfaction, through
North America Robo-Call
• Establish key partnerships to expand current
market to commercial and corporate accounts
• Expand beyond current North American reach
to include Arizona, Florida, Texas and Missouri.
In Canada, priority provinces are Alberta and
Manitoba.

“Markets today are evolving at a rapid pace and we’re

making sure LBC is able to meet demands and exceed
219%
increase in net
customer expectations through technology and income
exceptional customer service.”
Hugo N. Bonilla
Senior Vice-President, North America Operations, LBC Mundial Corp.

36 | 2017 Annual Report LBC Express Holdings, Inc. | 37

Operational Highlights: International Operations
Middle East
Achieved
92%
of revenue target in 2017
Embassy On Wheels. LBC has opened a service for
the convenience of Overseas Filipinos, especially
those outside of Jeddah, to collect their new
passports and other consular documents with the
LBC located within the Philippine Consulate premises
LBC Smart Shelters A partnership with RTA Bus
Smart Shelters, LBC has 5 operational mini-outlets,
open until late, across popular areas in Dubai
frequented by Filipinos. At these branches, customers
can avail of Express Air – a courier service for small
parcels (5kg or 8kg) to 236 destinations worldwide.
Empty cargo boxes are also available for purchase, as
well as onsite booking reservations for pick-ups
38 | 2017 Annual Report
One-Stop Shop Document Processing Overseas
Filipinos can conveniently renew and complete their
employmenet requirements, licenses and other
legal documents through LBC, with a fixed fee that
includes authentication processing in the Philippines
and delivery to their addresses in the Middle East.
Included are documents issued by the Department
of Foreign Affairs, CENOMAR, National Bureau of
Investigation, Professional Regulation Commission, to
name a few.
LBC Plus is a customer
rewards program where
points are earned and
privileges and discounts at
partner establishments can be
redeemed.
LBC Cares A service that offers end-to-end solution for
shipment of valuables with care and professionalism; LBC
being the first Filipino cargo company to provide this service,
seeks to ease the process of securing sensitive requirements
and paperwork for shipment of human remains, live animals,
as well as fragile appliances and furniture. These services have
first been offered in the UAE and will eventually the rest of the
Gulf region.
LBC Express Holdings, Inc. | 39
Operational Highlights: International Operations

Asia-Pacific

These regions are

at the heart of LBC’s
expansion. Our goal is
to continue exploring Operational Highlights
• Expansion of LBC footprint across Queensland,
strategic partnerships and Australia through key acquisitions.
• Addition of sea cargo services in Macau through
acquisitions, study market strategic partnerships.
• Expansion of LBC Singapore product line in
prices, be more creative response to market needs.
• Consistent support for key Filipino organizations Expansion of LBC Kwuntong warehouse to better Dubbed as the biggest sports olympics in HK, LBC
with our marketing and its individual initiatives across different origins. serve our customers and to facilitate new businesses held its 2nd LBC Cup Palarong Pinoy participated by
initiatives to grow the (cross-border projects). hundreds of Filipino Workers.

business while reflecting

the values that define LBC.

14% h 4%
Revenue growth
Net income
in 2017

To appreciate and strengthen the business partnership

with our box agents, LBC conducted its first agent’s
night at LBC Kwuntong warehouse.

40 | 2017 Annual Report LBC Express Holdings, Inc. | 41

Each with at least 20 years of service at LBC Express,
these associates epitomize The Joy of Moving It.

In LBC, you
work with the
company—
not for them.
LBC is a company built on people who are The company’s commitment to develop individuals
passionate, curious and motivated by the mission to who continue to contribute and invest in the
succeed. company’s growth is unparalleled.

The company is equally committed to growing the Moving forward

business, as much as they are to the people who are • Design and implement a Competency-
Operational Highlights:
responsible for its success. To that end, LBC invests Based System essential in ensuring effective
in the development of its people and growing their performance of the functions and responsibilities
Human Capital Success internal capabilities. Key programs in place are critical
to ensuring that the organization effectively develops
of any position within the organization and be
able to identify developmental needs.
employees for future frontline leadership positions • On-going focus on Customer Experience,
and Services and career advancements. These include: Business Intelligence and IT for 2018
• Empower LBC leaders to lead Engagement of
• Developmental programs for supervisors their teams following the ENJOY framework
and associates where LBC provides track
specific developmental programs-- from basic,
intermediate and advance.
• Developing people and internal capabilities via
the learning and management system (LMS)
• Instituted the Service Excellence Program
• Implemented online engagement programs to
engage all employees organization-wide one
“In the spirit of digital transformation, we seek to way or another aside from the physical activities
transform our workforce by giving them the skills we have.
necessary to adapt to this change.” • Regular assessment of Assessment of Leadership,
Values, ICSAT and Engagement

Jhayner V. Bufi
Chief People Officer, LBC Express, Inc.

42 | 2017 Annual Report LBC Express Holdings, Inc. | 43

 Rising engagement across different platforms
LEADERSHIP EXCELLENCE (LPI) VALUES VALIDATION 2017 VOLUNTEERISM
2017

1,153
Employee Profile
3.46
On a scale of 1 lowest and 4 highest
3.65
On a scale of 1 lowest and 4 highest
CSR volunteers

Highest score in three years,

demonstrating improving leadership
potential of LBC employees
Highest score in three years,
highlighting the relevance of LBC 4,612
Volunteered manhours
values to Big Picture Success

High
ENGAGEMENT SURVEY INTERNAL CUSTOMER TRAINING

4.14
SATISFACTION

MALE: 63% FEMALE: 37% Engagement,

Low attrition rates On a scale of 1 lowest and 5 highest 89.03% 7,345
Employees trained
Significant employee engagement Proof positive that LBC employees
are happy

4/5
GEN X 17%

GEN Z 3%

BOOMERS 4% Overall Employee

Engagement Score
GEN Y 76%

1.8%
8,001
Total employees,
Average Monthly Attrition Rate

a 7% increase from 2016

44 | 2017 Annual Report LBC Express Holdings, Inc. | 45

 Operational Highlights
• Customer Experience Management established
CSATs level to address rising customer demand
and expectations
• Mapped out customer journey to provide
programs and initiatives extending customer
life value and revenue through Customer
Relationship Management
• Rebuilding & Improving customer touchpoints,
starting with the development of a Customer Self-
Operational Highlights Service Portal, an new version of the existing LBC
website, to create a more robust, interactive and
Global Marketing functional digital experience

Moving Forward
We will translate our business intelligence, and
understanding of customer preferences to create
relevant and personal touchpoints that will engage
them in relevant, meaningful ways
• Re-launch the LBC loyalty program, to retain &
reward customers

“Making a real difference in the lives of our customers is
anchored on understanding them. Our success is anchored on
our ability to gather insight and data from our customers and
analyzing it to deliver a solution based on what they actually
The launch of LBC Connect is one of our first steps in this
17 million
digitalized journey. This initiative, along with those that
will follow, will help reshape customer experience through
technology, while staying true to our brand attributes of Clarity,
customers across the globe, to date Certainty and Convenience.

need and want. ”

Javier C. Mantecon
Chief Marketing Officer, LBC Express, Inc.

46 | 2017 Annual Report LBC Express Holdings, Inc. | 47

Corporate Social Responsibility

Driving the value of education in 2017

37
classrooms
5
brand new
1
school adopted In the spirit of moving people forward through
refurbished classrooms in empowerment, LBC sought to exercise corporate Proud member of—
2 schools built social responsibility by focusing on education, led by
and turned over its philanthropic arm, LBC Foundation. • Association of Foundations
• ZEP2020: Zero Extreme Poverty, Education
Operational Highlights Cluster
• PhilCV or Philippine Coalition on Volunteerism,
Provided access to the basic right of education to Inc.
underserved communities and uplifted the quality of • League of Corporate Foundations.
education available to them. • Office of the Vice President’s Angat Buhay
Program
Secured the education of 133 students through
scholarships and educational assistance, at the same A catalyst for employee engagement and
time providing medical assistance to employees and/ volunteerism
or their dependents beyond HMO benefits.
• Conducted 65 employee volunteer activities
Achieved LBC’s objective to “move people forward” nationwide
by empowering them and through programs that • Engaged total of 1,155 volunteers who
Moving people forward help uplift their lives. participated, 944 of which were unique
through education volunteers.

“Education is an equalizer.
11,128
beneficiaries through various programs. It is a gift that instills a
Moving Forward

In addition to building classrooms, LBC Foundation

also wants to provide the tools and training needed
sense of pride, and dignity, to provide quality education to the next generation
and even responsibility. of Filipinos. This entails—

LBC Foundation upholds these core values: Beyond the knowledge and • Providing access to the basic right of education
to underserved communities and uplifting the
skills that are taught in the quality of education available to them.
• Enhance students learning and performance
classroom, education also through relevant programs.
• To create larger impact by maximizing our core
EXCELLENCE COMMITMENT COLLABORATION INTEGRITY BAYANIHAN
imbibes discipline, respect, business and reach as well as develop more
socially responsible LBC employees.
Strives to Dedicated to Recognizes that Will act in a
A thread that
binds.
leadership, teamwork—life
maximize its transforming lives creating access transparent skills and values that LBC,
resources and opportunities manner in all Believes in the
in achieving for Filipinos its activities; benefit of mutual as an organization, feel
significant social involves strategic demonstrating aid or cooperative
impact partnerships with accountability endeavor in strongly about.”
diverse stakeholders community - Christine L. Wuthrich, Executive Director,
development LBC Foundation

48 | 2017 Annual Report LBC Express Holdings, Inc. | 49

 After School Program with
Project Pearls, June 2017

Matina Biao Elementary School,

Brigada Skwela Project, May 2017 Paraisong Pambata, San Antique,
March 2017

Matina Biao Elementary School,

Brigada Skwela Project,
May 2017

In addition to the classrooms built and donated by LBCF in Bato

Catanduanes, a three-classroom structure for Damilag Integrated School
in Brgy. Damilag, Manolo Fortich, Bukidnon were turned-over last October
11, 2017. This is a partnership with PhilAm Foundation and OVP’s Angat
Buhay Program. Barangay Damilag is recognized as one of the most
populous barangays in the municipality, with no accessible high school. The
construction of the high school provides at least 127 children in the district
300 children beneficiaries of a safe and conducive environment for learning.
the After School Program with
Project Pearls

50 | 2017 Annual Report LBC Express Holdings, Inc. | 51

Corporate Social Responsibility
Emergency Response Team
Moving Communities Through Volunteerism
“The spirit of collaboration is central to our efforts—from
our employee volunteers to our government partners,
to our community leaders. Whether it’s a major disaster
or simply the fact that we want to be there to mitigate
emergencies, we are fortunate to have a team of people
behind this initiative who have demonstrated an
admirable level of commitment to this project.”
Christian W. Guidotti
Vice-President, Administration, LBC Express, Inc.
52 | 2017 Annual Report
28
25
1,382
17
15 1,014
13
The contributions of the private sector, especially
when it comes to emergency response are more 433 5
relevant today than ever.
Our scale makes us more capable to offer
manpower, and LBC has the resources to respond 2015 2016 2017
quickly in emergencies due to its vast network across
the nation. Our values highlight our strong focus to NUMBER OF EMPLOYEE VOLUNTEERS
contribute and make a difference in the communities NUMBER OF EVENTS PARTICIPATED AT
we serve. To that end, 2017 was a year focused on NUMBER OF PERSONS ASSISTED/ GIVEN AID
gathering members of the LBC Emergency Response
Team (ERT) and reaching out to communities.
EMERGENCY RESPONSE TEAM PERFORMANCE
Across the nation, LBC’s exclusive emergency
response vehicle, along with its trained employee
volunteers, travelled across the Philippines to join
numerous local festivities and provide medical
assistance, providing aid to over a thousand Filipinos.
2017 was also a year where key stakeholders such
as the MMDA, Emergency Rescue Association, and
Bureau of Fire Protection gave the ERT consistent
recognition for the active role we took in response
operations.
For LBC, disaster preparedness and emergency
response is something that doesn’t just fall under
the purview of the government. In fact, being one
of the largest companies handling courier and cargo
logistics in the country, with an employee base of
thousands, prompts LBC to seek out and mobilize
individuals within the organization who share the The LBC ERT provided emergency medical aid to 1,014 persons in
company’s views on giving back to the community. need, in 2017.
LBC Express Holdings, Inc. | 53
A pioneer
in the industry
Corporate Governance
The Board of Directors and Management, and As required by the Securities and Exchange Board Committees
employees of LBC EXPRESS HOLDINGS, INC. (the Commission (“SEC”), the Company, being a publicly-
“Company”) commit themselves to the principles of listed company, is mandated to nominate two To assist the Board of Directors in discharging its
good governance, as contained in its Revised Manual (2) independent directors. Thus, of the seven (7) duties and responsibilities, the Board constituted: (1)
on Corporate Governance approved in May 2017 and directors of the Company, two (2) were elected as the Audit Committee; (2) the Nomination Committee;
July 2014. The Board of Directors and Management, independent directors in accordance with the By- and (3) the Compensation and Remuneration
employees and shareholders, believe that corporate Laws of the Company. Committee which directly report to the Board in
governance is a necessary component of what accordance with duly approved procedures. As of
constitutes sound strategic business management Pursuant to the SEC Memorandum Circular 19-16, 31 December 2017, the board committees and its
and will therefore undertake every effort necessary the Board of Directors of the Company resolved to members are as follows:
to create awareness within the organization as soon increase the number of its independent directors
as possible. from 2 to 3, subject to the amendment of the Board Committees The Board of Directors and
Company’s Articles of Incorporation and By-Laws
The Board of Directors reflecting such recommendation.
Director Audit Nomination Compensation and
Remuneration Management, employees
The Articles of Incorporation of the Company In 2017, the Board of Directors held twelve (12)
Miguel Angel
A. Camahort
Member Member Chairman
and shareholders, believe
provides that the Board of Directors shall be meetings consisting of eleven (11) special board
composed of nine (9) members. As of 31 December meetings and one (1) board organizational meeting.
Rene E.
Fuentes
N/A N/A N/A
that corporate governance
2017, the Board of Directors of the Company consists
of nine (9) directors.1
We list below the attendance of the members of the
Board of Directors during such board meetings, as
Enrique V.
Rey, Jr.
Member Member Member
is a necessary component
follows: Augusto G.
Gan
N/A N/A N/A
of what constitutes
Solita V.
Delantar
Chairman Chairman Member
sound strategic business
(Independent)
2017 Board Meetings Luis N. Yu, Jr. N/A N/A N/A management and will
Miguel A. Enrique V. Rene E. Mark Solita V. Luis N. Yu Augusto G. Alexander (Independent)
Camahort Rey, Jr. Fuentes Werner J. Delantar Gan Francis D. Mark Werner J. N/A N/A N/A therefore undertake every
Rosal Deato Rosal
8 Mar P P P P P P P * Alexander N/A N/A N/A effort necessary to create
Francis D.
19 Apr
10 May
P
P
P
P
P
P
P
P
P
P
P
P
P
P
*
*
Deato 2 awareness within the
26 May P P P P P P P * Audit Committee organization as soon as
20 June P P P P P P P *
4 July P P P P P P P *
The Audit Committee is responsible for the possible.
company’s financial reporting, internal control
10 July P P P P P P P *
system, internal and external audit processes, and
2 Aug P P P P P P P * compliance with applicable laws and regulations.
29 Aug P P P P P X X X The Audit Committee consists of at least three (3)
28 Sept P P P P P P P X directors, who shall preferably have accounting
16 Oct P P P P P P X X and finance backgrounds, one (1) of whom shall
22 Nov P P P P P P X X be an independent director and another with audit

P: Present | X: Not Present | *: Not yet a director Board Committees 2 Alexander Francis D. Deato resigned as director on 02 March
2018. Anthony A. Abad’s term as independent director will take
effect from the approval by the Securities and Exchange Commission
of the amendment to the Company’s articles of incorporation and
1 Anthony A. Abad’s term as independent director will take effect from the approval by the Securities and Exchange Commission of the by-laws providing for a third independent director.
amendment to the Company’s articles of incorporation and by-laws providing for a third independent director. On 02 March 2018, Jason
Rosenblatt was elected as director of the Company replacing Alexander Francis D. Deato.

56 | 2017 Annual Report LBC Express Holdings, Inc. | 57


experience. Each member shall have adequate
understanding at least or competence at most of
the Company’s financial management systems. The
Chair of the Audit Committee shall be an independent
director.
Nomination Committee
The Nomination Committee was constituted by the
Board of Directors to review and evaluate, among
others, the qualifications of all persons nominated to
the Board and other appointments that require Board
approval in accordance with the qualifications and
disqualifications provided under the Company’s By-
Laws and relevant laws. The Nomination Committee
shall have at least three (3) members, one of whom
must be an independent director.
Compensation and Remuneration Committee
The Compensation and Remuneration Committee is
tasked by the Board of Directors to, among others,
establish a formal and transparent procedure for
developing a policy on remuneration of directors
and officers to ensure that their compensation is
consistent with the corporation’s culture, strategy and
the business environment in which it operates. The
58 | 2017 Annual Report
Compensation and Remuneration Committee shall
have at least three (3) members, one (1) of whom
shall be an independent director.
Pursuant to the SEC Memorandum Circular 19-16,
the Board of Directors of the Company resolved
to reconstitute the following committees: (1) the
Audit Committee; (2) the Corporate Governance
Committee which shall replace and assume the
functions of the Nomination Committee and the
Compensation and Remuneration Committee; (3)
the Board Risk Oversight Committee which shall
be responsible for the oversight of the Company’s
Enterprise Risk Management System; and (4) the
Related Party Transactions Committee, which shall
be tasked with reviewing all material related party
transactions of the Company. The establishment
of such additional committees shall be effective
upon the approval of the Company’s By-Laws and
the adoption of the respective Charters of said
committees.
External Auditor
The external auditor contributes to the enforcement
of good governance through independent
examination of the financial records and reports of
the Company. The external auditor of the Company
is the accounting firm of SyCip Gorres Velayo & Co.
(“SGV & Co.”). The Board, upon the recommendation
of the Company’s Audit Committee, approved the
reappointment of SGV & Co. as the Company’s
independent auditor for 2016 based on their
performance and qualifications.
The Company has not had any material
disagreements on accounting and financial
disclosures with its current independent auditor for
the same periods or any subsequent interim period.
SGV & Co. has neither shareholdings in the Company
nor any right, whether legally enforceable or not, to
nominate persons or to subscribe for the securities
of the Company. The foregoing is in accordance
with the Code of Ethics for Professional Accountants
in the Philippines set by the Board of Accountancy
and approved by the Professional Regulation
Commission.
Audit and Audit-related Fees
The following table sets forth the aggregate fees
billed for each of the last two years for professional
services rendered by SGV & Co.:
2016 2017
In millions (PHP) PhP2,200,000 PhP3,450,000
Audit and Audit-
Related Fees*
Total PhP2,200,000 PhP3,450,000
*Audit and Audit-Related Fees. This category includes the audit of
annual financial statements, review of interim financial statements, and
services that are normally provided by the independent auditor in
connection with statutory and regulatory filings or engagements for
those calendar years.
Compliance Officer
The Board of Directors appoints a Compliance Officer
who shall report directly to the Chair of the Board.
The Compliance Officer is tasked with, among others,
monitoring the compliance by the Company with
the rules and regulations of regulatory agencies
such as the SEC and the Philippine Stock Exchange
(“PSE”), and submitting reports in accordance with
the rules of such agencies and other pertinent laws.
Updates and the consolidated changes to the Annual
Corporate Governance Report of the Company
for year 2016 were submitted to the SEC last 10
January 2017. Further, the Company submitted last
31 March 2017 its Compliance Report on Corporate
Governance for year 2016.
As of 31 December 2017, the Company has complied
with the principles and practices contained in its
Manual on Good Corporate Governance. There were
no sanctions imposed on any director, officer, or
employee for non-compliance.
Disclosure and Transparency
The Company acknowledges that the essence of
corporate governance is transparency. Thus, all
material information about the Company which
could adversely affect its viability or the interest of
its stockholders and other stakeholders are publicly
and timely disclosed by the Company. The Company
and its Board of Directors commit at all times to full
disclosure of material information dealings, and as
such, has caused the filing of all required information
through the appropriate Exchange mechanisms for
listed companies and submissions to the commission
for the interest of its stockholders and other
stakeholders.
Commitment to Good Corporate Governance
The Company has established, and continues to
implement and adopt, corporate governance rules
in accordance with the rules and regulations of the
SEC. As such, the manuals adopted and issued by the
Company have been revised to be in line with the
policies and rules of the SEC.
LBC Express Holdings, Inc. | 59
LBC Express Holdings, Inc.
Board of Directors
Miguel Angel A. Camahort
Chairman of the Board and President
Mr. Miguel Angel A. Camahort is a Director, Chairman
of the Board and President of the Company. He
is also the President of LBC Express Corporate
Solutions, Inc., the subsidiary operating the “Print
and Mail” business of LBC Express, Inc. Mr. Camahort
concurrently serves on the Board of Directors of
the United Football League. Prior to joining the LBC
Group, Mr. Camahort was a Senior Vice President
and the Chief Operating Officer of Aboitiz One, Inc.
from 2007 to 2009 and Aboitiz Transport System
Corporation (ATSC) Solutions Division from 2004
to 2007. He also served as a Senior Vice President
and the Chief Operating Officer of Aboitiz Transport
System Corp. (formerly, William, Gothong & Aboitiz,
Inc.) in the Freight Division from 1999 to 2003, prior
to which he was the President of Davao Integrated
Stevedoring Services Corporation (DIPSCCOR)
from 1999 to 2003. Mr. Camahort holds a Bachelor
of Science degree in Business Administration and
Economics from Notre Dame de Namur University
(formerly, the College of Notre Dame) in California,
U.S.A.
Enrique V. Rey, Jr.
Director
Mr. Enrique V. Rey Jr. assumed the position of Investor
Relations Officer of the Company in September 2015
and is concurrently acting CFO. He has held various
Senior positions in operations from 2011 to 2014.
Mr. Rey, Jr. was also a director of LBC Systems, Inc.
from 2008 to 2010 and LBC Mundial Inc. from 2005
to 2008. Prior to joining the Company, Mr. Rey, Jr.
worked for Coca-Cola Phils. where he was a Senior
Head of Institutional Sales from 2000 to 2003. Mr.
Rey was also Head of Sales from 2003 to 2005 at
ATS. Mr. Rey, Jr. attended De La Salle University and
completed a Management program at the Ateneo
Business School. Mr. Rey, Jr. has also attend INSEAD
and received training in Finance. Since 2010, Mr.
Rey, Jr. has been a member of the Institute of Internal
Auditors.
60 | 2017 Annual Report
Rene E. Fuentes
Director
Mr. Rene E. Fuentes is currently the Senior Vice
President for Global Retail Operations of LBC
Express, Inc. Prior to joining the Company, Mr.
Fuentes served as President of Documents Plus,
Inc. from 1996 to 2001, and as Regional Manager,
Vice-President of EFC Food Corporation from
1996 to 2001. Mr. Fuentes attended De La Salle
University and completed a Key Executive Program in
November 2013 at the Harvard Business School.
Mark Werner J. Rosal
Director
Atty. Rosal became a director of the Company on
28 April 2015. Born in Cebu City, Atty. Rosal, prior to
taking up law, has a Bachelor’s Degree in Physical
Therapy from Cebu Velez College and is a licensed
Physical Therapist. Atty. Rosal graduated in the top
5% of his law school batch at the University of San
Carlos, Cebu City, in 2002 and was admitted to the
Philippine Bar in 2003. He spent his early years in
the practice of law at Balgos and Perez Law Offices
and Angara Cruz Concepcion Regala and Abello
(ACCRALAW). Currently, he is the Managing Partner
of Rosal Diaz Bacalla and Fortuna Law Offices, a Cebu-
based law firm. As part of his law practice as retained
counsel of private corporations, he is a director
(holding nominal shares) of Cebu Agaru Motors Inc.,
Wide Gain Property Holdings, Inc., and Sem-Ros
Food Corp. (a non-operational corporation).
Augusto G. Gan
Director
Mr. Augusto G. Gan was appointed Director of the
Company in November 2013. Mr. Gan concurrently
serves as a Director of Atlantic Gulf and Pacific
Company, Investment and Capital Corp of the
Philippines, Pick Szeged ZRT, Sole-Mizo Zrt and
Netvoice Inc. He is also the Managing Director of
Ganesp Ventures and the Chairman of the Board
of Anders Consulting Ltd. Previously, Mr. Gan was
the President of the Delphi Group from 2001 to
2012 and the Chief Executive Officer of Novasage
Incorporations (HK) from 2006 to 2007. He has
also served as a Director of AFP Group Ltd. (HK)
from 2005 to 2007 and ISM Communication from
2003 to 2004, as well as the Chairman of the Boards
of Cambridge Holdings from 1995 to 2000 and
Qualibrand Industries from 1988 to 2001. Mr. Gan
holds a Master in Business Management degree from
the Asian Institute of Management.
Anthony A. Abad
Director
Atty. Anthony A. Abad is currently the CEO and
Managing Director of TradeAdvisors, as well as
a partner of Abad Alcantara & Associates. He
graduated from the Harvard University – John F.
Kennedy School of Government with a Master’s
Degree in Public Administration, and a Fellow in
Public Policy and Management at the Harvard
Institute for International Development. Atty. Abad
graduated from the Ateneo de Manila School of Law
with a Juris Doctor degree, and a Bachelor of Arts
degree, Major in Economics (Honors). Other current
engagements include: Bloomberg Philippines,
Anchor; Ateneo Center for International Economic
Law, Director; Ateneo de Manila University, Professor;
World Trade Organization, Panelist. Previously,
Atty. Abad was Key Expert, Trade Policy & Export
Development Trade Assistant for the European
Union, Chairman and Secretary’s Technical Advisor
at the Department of Agriculture, and President
and CEO of the Philippine International Trading
Corporation.
Jason Michael Rosenblatt
Director
Mr. Jason Rosenblatt was appointed Director of
the Company on March 2, 2018. He is currently
a Partner at Crescent Point, a private equity and
investment firm based in Singapore. Mr. Rosenblatt
assumed a director position at LBC Express Holdings,
Inc. in March 2018. His previous positions include:
Laurasia Capital Management, Director; Standard
Bank, Global Head of Special Situations; DKR
Oasis, Head of Principal Strategies; Ritchie Capital
Management, Director; McKinsey Company,
Associate; and Bank One, Associate.
Solita V. Delantar
Independent Director
Ms. Solita V. Delantar was appointed Director of the
Company in March 2014. Previously, Ms. Delantar
served as Vice-President, Human Resources
Management & Development Administration
(November 1999 – September 2003), Consultant
(July 1997 – July 1998), Vice-President, Finance &
Administration (May 1988 - June 1996) and various
other positions at Honda Philippines, Inc. Ms.
Delantar is a Certified Public Accountant, Fellow in
Personal Management and professional business
mediator. From September 1998 to March 2007,
she served as a Member of the Professional Board
of Accountancy, which administers licensure
examinations for CPAs. Ms. Delantar received her
Bachelor of Science degree in Commerce with a
major in Accounting from Far Eastern University and
participated in a Bachelor of Laws program at Ateneo
de Manila University.
Luis N. Yu, Jr.
Independent Director
Mr. Luis Yu, Jr. is the Founder and Chairman Emeritus
of the 8990 Holdings, Inc. Mr. Yu is also the Chairman
Emeritus of IHoldings, Inc. (2012 to present).
He is also the Chairman of 8990 Cebu Housing
Development Corporation, 8990 Visayas Housing
Development Corporation, 8990 Davao Housing
Development Corporation, 8990 Mindanao Housing
Development Corporation, 8990 Iloilo Housing
Development Corporation and 8990 Luzon Housing
Development Corporation (2009 to present),
8990 Housing Development Corporation (2006
to present), Ceres Homes, Inc. (2002 to present),
N&S Homes, Inc. (1998 to present), L&D Realty
Holdings, Inc. (1998 to present), and Fog Horn (1994
to present). Mr. Yu is currently the President of DECA
Housing Corporation (1995 to present). Mr. Yu holds
a Master in Business Management degree from the
Asian Institute of Management. Mr. Yu has more
than 30 years of experience managing and heading
companies engaged in Mass Housing subdivision
development.
LBC Express Holdings, Inc. | 61
LBC Express Holdings, Inc.
Management Team
Miguel Angel A. Camahort
Chief Executive Officer and President
Mr. Miguel Angel A. Camahort is a Director, Chairman
of the Board and President of the Company. He
is also the President of LBC Express Corporate
Solutions, Inc., the subsidiary operating the “Print
and Mail” business of LBC Express, Inc. Mr. Camahort
concurrently serves on the Board of Directors of
the United Football League. Prior to joining the LBC
Group, Mr. Camahort was a Senior Vice President
and the Chief Operating Officer of Aboitiz One, Inc.
from 2007 to 2009 and Aboitiz Transport System
Corporation (ATSC) Solutions Division from 2004
to 2007. He also served as a Senior Vice President
and the Chief Operating Officer of Aboitiz Transport
System Corp. (formerly, William, Gothong & Aboitiz,
Inc.) in the Freight Division from 1999 to 2003, prior
to which he was the President of Davao Integrated
Stevedoring Services Corporation (DIPSCCOR)
from 1999 to 2003. Mr. Camahort holds a Bachelor
of Science degree in Business Administration and
Economics from Notre Dame de Namur University
(formerly, the College of Notre Dame) in California,
U.S.A.
62 | 2017 Annual Report
Enrique V. Rey Jr.
Investor Relations Officer and Chief Finance Officer
Mr. Enrique V. Rey Jr. assumed the position of Investor
Relations Officer of the Company in September 2015
and is concurrently acting CFO. He has held various
Senior positions in operations from 2011 to 2014.
Mr. Rey, Jr. was also a director of LBC Systems, Inc.
from 2008 to 2010 and LBC Mundial Inc. from 2005
to 2008. Prior to joining the Company, Mr. Rey, Jr.
worked for Coca-Cola Phils. where he was a Senior
Head of Institutional Sales from 2000 to 2003. Mr.
Rey was also Head of Sales from 2003 to 2005 at
ATS. Mr. Rey, Jr. attended De La Salle University and
completed a Management program at the Ateneo
Business School. Mr. Rey, Jr. has also attend INSEAD
and received training in Finance. Since 2010, Mr.
Rey, Jr. has been a member of the Institute of Internal
Auditors.
Rosalie H. Infantado
Treasurer
Ms. Infantado assumed the position of Treasurer of
LBCEH in September 2017. She graduated with a
Bachelor of Science degree, Major in Accountancy
from the Polytechnic University of the Philippines
in 1997. She is currently Vice-President - Financial
Reporting and Analysis at LBC Express, Inc., and
has been a Certified Public Accountant since 1998.
With 20 years of experience in accounting, audit,
and financial reporting, Ms. Infantado’s previous
professional experiences include employment at
prestigious companies such as KPMG Philippines
(Manabat SanAgustin & Co.), Concordia Advisors
(Bermuda) Ltd., CITI Hedge Fund Services, Ltd.
(Bermuda), and PriceWaterhouseCooper Philippines.
Cristina S. Palma-Gil Fernandez Maria Eloisa Imelda S. Singzon
Corporate Secretary Alternate Corporate Information Officer
Cristina Palma-Gil Fernandez: Atty. Palma Gil- Maria Eloisa Imelda S. Singzon: Atty. Singzon
Fernandez assumed the position of Corporate assumed the position of Alternate Corporate
Secretary of the Company in September 2015. Atty. Information Officer of the Company in April 2015.
Palma Gil-Fernandez graduated with a Bachelor of Born on 18 September 1986, Atty. Singzon graduated
Arts degree, Major in History (Honors) from the cum laude with the degree of Bachelor of Science,
University of San Francisco in 1989, and with a Juris Business Economics, from the University of the
Doctor degree, second honors, from the Ateneo de Philippines in 2008, and with the degree of Juris
Manila University in 1995. She is currently a Partner Doctor from Ateneo de Manila School of Law in
at Picazo Buyco Tan Fider & Santos Law Offices and 2012. She is a Junior Associate at Picazo Buyco Tan
has over 19 years of experience in corporate and Fider & Santos Law Offices from 2013 to present.
commercial law, with emphasis on the practice areas
of banking, securities and capital markets (equity and
debt), corporate reorganizations and restructurings
and real estate.
Mahleene G. Go
Assistant Corporate Secretary, Corporate
Information Officer and Compliance Officer
Atty. Mahleene G. Go assumed the position of
Assistant Corporate Secretary, Compliance Officer
and Corporate Information Officer of the Company
in September 2015. Born on 25 April 1980, Atty.
Go graduated with the degree of Bachelor of Arts,
Major in Political Science, from the University of the
Philippines in 2001, and with the degree of Juris
Doctor from Ateneo De Manila University-School
of Law in 2005. She also received a Certificate of
Mandarin Language Training for International Students
from 2011 to 2012 in Peking University, Beijing, China.
She served as a Junior Associate at Picazo Buyco Tan
Fider & Santos Law Offices from 2007 to 2010 and
2012 and is currently a Senior Associate at the same
office. She currently serves as Trustee and Corporate
Secretary for Center for Empowerment and Resource
and Development, Inc.
LBC Express Holdings, Inc. | 63
2017 Financial Highlights (LBC Express Holdings, Inc.): 2017 Financial Highlights (LBC Express Holdings, Inc.):

Key Profit and Loss Items Revenue by Segment

10B
2017 Revenue 10,020
10%
8,695 +15%
+13% 1,039 21%
7,686
1,174
P31M
1,396 P206M Europe

North America
3,414
8,981 3,105
2,567
6,290
7,522
P1,153M P119M
Middle East Asia Pacific

15 16 17 15 16 17

LOGISTICS

MONEY TRANSFER SERVICES P34M

Others
P43M
REVENUE GROSS PROFIT Australia

(IN PHP MILLIONS) (IN PHP MILLIONS)

P1,586M
Total international revenue in 2017
19.3%
15.7% 10.5%
7.1%
2015 2016 2017 % SHARE
2015 2016 2017 North America 169 214 206 13%
12.9% LOGISTICS: Retail 4,091 4,964 5,752 Asia-Pacific 111 96 119 8%
5.4% LOGISTICS: Corporate 2,199 2,558 3,230 Australia 34 38 43 3%
1,682 914
1,568 708 MONEY: PH Domestic 1,187 1,058 907 Europe 36 38 31 2%
988 MONEY: International 209 115 132 Middle East 758 1,000 1,153 73%
416
Inbound Others 124 38 34 2%
TOTAL 7,686 8,695 10,020
15 16 17 15 16 17

EBITDA NET INCOME REVENUE BY BUSINESS SEGMENT TOTAL REVENUE BY TERRITORY

(IN PHP MILLIONS) (IN PHP MILLIONS)
EBITDA MARGIN NET INCOME MARGIN

EBITDA NET INCOME

(IN PHP MILLIONS) (IN PHP MILLIONS)

64 | 2017 Annual Report LBC Express Holdings, Inc. | 65

2017 Financial Highlights (LBC Express Holdings, Inc.): 2017 Financial Highlights (LBC Express Holdings, Inc.):

Cash Flow Analysis Key Balance Sheet Items

1,815

1,739

1,399

1,025

933 809

2,475 9,424 7,058

6,737 4,332
5,960 4 ,274

442 352
15 16 17 15 16 17 15 16 17 15 16 17

CASH FROM OPERATING ACTIVITIES

OPERATING INCOME BEFORE CHANGES

NET INCREASE IN CASH TOTAL ASSETS TOTAL LIABILITIES
IN WORKING CAPITAL (IN PHP MILLIONS) (IN PHP MILLIONS) (IN PHP MILLIONS)

CASH AND OPERATING INCOME

(IN PHP MILLIONS)
3,778

44.7%

29.3%
15 16 17

28.2%
(611)
(848) 1,359
1,041 1,328
1,923 2,463
1,754 1,041 2,365
(2,246) 979
1,628

155
15 16 17 15 16 17 15 16 17

TOTAL CASH TOTAL EQUITY

NET CASH (USED IN) INVESTING ACTIVITIES CASH FROM FINANCING ACTIVITIES TOTAL NOTES PAYABLE RETURN ON EQUITY
(IN PHP MILLIONS) (IN PHP MILLIONS)
TOTAL CASH AND NOTES PAYABLE TOTAL EQUITY & RETURN ON EQUITY
(IN PHP MILLIONS) (IN PHP MILLIONS)

66 | 2017 Annual Report LBC Express Holdings, Inc. | 67

2017 Financial Highlights (LBC Express Holdings, Inc.): 2017 Financial Highlights:

Share Data and Key Ratios LBC Express, Inc. (Operating Unit)
922

827
704 +15%

37%

37%

440
314
10
8.7
7.7
30%

27%

26%
25%

15 16 17 15 16 17
15 16 17

NET INCOME ATTRIBUTABLE TO SHAREHOLDERS RETURN OF EQUITY

CASH DIVIDENDS SHAREHOLDERS’ EQUITY RATIO

REVENUES
SHARE INFORMATION RETURN ON EQUITY AND (IN PHP BILLIONS)
(IN PHP MILLIONS) SHAREHOLDERS EQUITY RATIO

3,414

3,105

2,567
2015 67% 2015 33% 2015 92% 2015 8%

2016 64% 2016 36% 2016 86% 2016 14%

2017 66% 2017 34% 2017 87% 2017 13%

1,364
GROSS PROFIT : NET SALES OPERATING INCOME : NET SALES 1,238
985
920

628 NET INCOME

425 OPERATING INCOME

2015 33% 2015 67% 2015 93% 2015 7% GROSS PROFIT

2016 36% 2016 64% 2016 86% 2016 14%

15 16 17

2017 34% 2017 66% 2017 92% 2017 8%

COST OF SALES : NET SALES NET INCOME : TOTAL ASSETS RESULT OF OPERATIONS

NET SALES AND TOTAL ASSETS GROSS PROFIT, OPERATING INCOME, COST OF SALES, NET INCOME

68 | 2017 Annual Report LBC Express Holdings, Inc. | 69

2017 Financial Highlights: LBC Express Holdings, Inc
and Subsidiaries

LBC Express, Inc. (Operating Unit) Consolidated Financial Statements

6,881
December 31, 2017 and 2016
6,796

5,965

4,488
4,315 4,333

2,548
2,307

1,651

ASSETS

LIABILITIES

EQUITY

15 16 17

FINANCIAL POSITION
1,398

817

586

251

198

OPERATING ACTIVITIES

INVESTING ACTIVITIES

FINANCING ACTIVITIES
(337) (302)

(766)
(807)

15 16 17

CASH FLOW

70 | 2017 Annual Report LBC Express Holdings, Inc. | 71

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LBC Express Holdings, Inc. | 73


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96 | 2017 Annual Report







LBC Express Holdings, Inc. | 97
 

 



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98 | 2017 Annual Report







LBC Express Holdings, Inc. | 99
 

 



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LBC Express Holdings, Inc. | 103
 

 



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LBC Express Holdings, Inc. | 109
 

 



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150 | 2017 Annual Report



LBC Express Holdings, Inc. | 151
2017 Milestones
A Catalyst for Local eCommerce Growth
Online sellers, “Social sellers,” and other micro, small
and medium enterprises (MSMEs) have become
an integral part and catalysts of the Philippine
economy—and LBC’s unique proposition provides
relevant payment solutions, tailor-fit for every
entrepreneur.
With PAYCOLLECT, online sellers can use LBC as a
payment collection station. Upon registration of
a seller’s complete automated accounting details,
Expanding Remittance Reach Even Further
LBC has forged an alliance with Landbank, “Ang Bangkong
May Damdaming Bayan” to make encashment easier and
more convenient for the latter’s thousands of patrons.
Recognizing LBC’s strong presence in key cities and
provinces, the partnership seeks to continue to bring
convenience to every Filipino by giving them more
financial access.
152 | 2017 Annual Report
LBC consolidates all payments for settlement to the
designated account.
With REFUNDS, an online seller can use LBC to disburse
refunds to buyers. In the event a customer is unsatisfied
with the purchase, the customer can return the item
through LBC, and likewise receive a full refund from the
seller.
LBC also provides PAYROLL DISBURSEMENT for
entrepreneurs; likewise, LBC branches are also available
as LOADING AND UNLOADING (Withdrawal) Stations or
can avail of Prepaid Cash Cards of Banks and other Non-
Bank Card Issuers.
“LBC is committed not only to address the needs of our
retail customers, but we are also extending our suite of
services to companies and start-up entrepreneurs like
online sellers and social sellers, who require payment
and refund services. With LBC’s over 1,300 branches
nationwide, business to consumer (B2C) and customer to
customer (C2C) transactions are faster and convenient.”
Oliver L. Valentin, Senior Vice-President
Philippine Retail Operations, LBC Express, Inc.
Expanding Facilities for Better
Efficiency
LBC Business Solutions got even bigger with the
recent inauguration of their newest warehouse
facility,dubbed “Kalayaan” in Carmona, Cavite.
The covered facility, which boasts of 4,966 square
meters and an open expanse of 1,000 square meters
is accessible via SLEX-Carmona Exit; Molino Road;
R1-R2 Imus; and, MCX-Trece Martires. It is 45 minutes
away from Pasay; an hour and a half away from
Makati, Manila Port and Batangas Port; and, two hours
away from CAMANAVA and Quezon City.
LBC & iRemit: Creating Alliances Equipped with state of the art machinery, it boasts
Anchored on Bringing Joy a total lifting capacity of 41,000 kg. It can also hold
hundreds of containers and has more than ample
Overseas Filipinos can now count on a more facilities like elevated loading bays and parking for
convenient way to send remittances to their loved container vans.
ones in the Philippines—thanks to LBC and iRemit
signing a partnership agreement, allowing remittances
sent via iRemit to be encashed at any LBC branch
across the country.
The enhanced tie-up is especially beneficial for
Overseas Filipino families who depend on LBC’s
reliability and accessibility, backed by its extensive
network, and its reputation as the largest Filipino-
owned non-bank remittance service provider.
Achieving Consecutive Recognitions in Service of Filipinos
For the third time in a row, LBC is recognized as the Preferred Freight
Forwarding Company at The Filipino Times (TFT) Awards 2017.
The award bestowed upon LBC, was in recognition of the above-par service
and happiness they consistently bring to Overseas Filipinos and the customers
they hold closest to their hearts.
“We are very proud of the achievements given to me, and most of all, LBC.
This honor speaks of the goals we uphold and share with TFT, which is to
provide good service to the Filipino community and the mission of bridging
customers to their loved ones through their hard-earned “padala”.
Mark V. Agalo-os, Vice-President, Middle East Operations, LBC Express, Inc.
LBC Express Holdings, Inc. | 153
Empowering the Development of Future Leaders Supporting Education in Creative Ways
LBC continues to look for ways to prepare their In the pursuit of their mission to make a difference
customers, stakeholders and target markets for the new in the lives of our many kababayans, LBC has
demands of the future. strengthened its partnership with Returning Waves
(RW), a group which promotes education through
To that end, their in-depth insight into the evolving surfing.
needs of the industry was recently shared to some 300
university students and members of the academe at the Founded and established in the U.S. by Lynn
2018 Industry-Academe Analytics conference held at the Bryant ten years ago, RW grants surfboards to
University of Asia and the Pacific, with the theme “Bridging underprivileged kids who have shown love for the
the Industry-Academe Analytics Gap through the APEC sport. Since then, the surfing localities that have
Data Science and Analytics Competencies.” benefitted from RW have reached 12; with LBC
sponsoring the shipment of 25 surfboards annually
The forum, organized by the newly formed Analytics from North America to the Philippines since 2015.
Association of the Philippines (AAP), is intended to help
academic institutions craft and deliver Business Analytics “We are happy to have found an ally in LBC. Not only
programs that are relevant for students and help various industries gain access to graduates ready for business is their network extensive, they have also consistently
analytics jobs. delivered our shipments in very good condition.” -
Victoria Fabella, Executive Director and Co-Founder
“Undergraduate courses need to be able to incorporate the study of analytics more as demand for data analysts of RW
worldwide increase. For students, there must also be the willingness to understand and appreciate data.” -
Javier C. Mantecon, Chief Marketing Officer, LBC Express, Inc.
Forging Strategic Ties with
Japan Remit Finance
A partnership between LBC Express and Japan Remit
Finance (JRF) now allows Filipinos working in Japan to
MICP Recognizes LBC’s Highest Revenue send their remittances to loved ones back home safer
Contribution in 2017 and faster.

LBC was named the highest revenue contributing door-to-door
consolidator for 2017-- a recognition was given to LBC by the Manila
International Container Port (MICP) during their 39th Founding
Anniversary.
LBC was honored alongside other importers, exporters, brokers,
consolidators, MICP personnel and other stakeholders who
contributed to the increased revenue collection of MICP from
January 1 to November 30 of 2017.
“It’s an honor to be able to help our government achieve its target
revenues while providing our overseas Filipinos with an invaluable
service.” - Rene E. Fuentes, Senior Vice-President, Overseas Retail
and Systems Operations, LBC Express, Inc.
Established in 2011, JRF is an international money
transfer and currency exchange company whose
remittance reach extends to no less than 83
countries. As it seeks to be more globally-oriented,
JRF has now teamed up with Business Logistics
experts like LBC to cater to the needs of Filipinos
living and working in Japan.
Money remitted by Overseas Filipinos via JRF can now
be encashed at any LBC branch.

154 | 2017 Annual Report LBC Express Holdings, Inc. | 155

LBC Allies with PNP-HPG Towards Safer Roads

LBC and the Philippine National Police Highway Patrol
Group (PNP-HPG) has renewed another fruitful year
of partnership, demonstrating how private companies
and the government can work together in making a
difference in the lives of the public they serve.
Led by LBC Senior Vice-President Oliver L. Valentin and
HPG Director Atty. Arnel Escobal, 40-50 LBC delivery
managers, supervisors, drivers, and riders underwent
training with the HPG-PNP staff under the "The
Disiplinadong Driver- Road Safety Marshal Orientation"
program.
The partnership is essential to operations because LBC
moves almost 96,000 parcels and cargo daily through
their 1,800 combined fleet of motorcycles and trucks.
In 2017, HPG was able to train 560 NCR-based drivers of
LBC, which significantly reduced the number of recorded
vehicular accidents.
“We are well aware of our civic duty to adopt and adhere
strictly to public safety policies. By advocating safer
roads, we want to impart the message that entities can
do their job both successfully and responsibly, if they set
their minds to it.” - Atty. Arnel Escobal, Director, Highway
Patrol Group
A Reliable Partner Here and Abroad
LBC Singapore (LBC-SG) was honored by the Philippine Overseas
Labor Office (POLO) for being a reliable ally in extending
services and assistance to distressed workers housed at the
Migrant Workers and Other Overseas Filipinos Resource Center
(MWOFRC).
The organization, which awards Philippine entities for their selfless
and inspirational work for others, recognized LBC-SG’s Express
Airfreight service for being deliberate and efficient in delivering
the Balikbayan boxes of OFWs.
“We are very thankful for this prestigious award. This motivates
us to raise our services even more -- while making sure that
we give our beloved Overseas Filipinos the joy and care they
deserve.” - Joel T. Mesina, Vice-President, Asia-Pacific Operations,
LBC Express, Inc.

Moving Nations Forward

“Mahal Kita, Future Bayan!”, an initiative by led Museong
Pambata, sought to inspire younger generations through
its powerful visual representation of unity and growth. In
true bayanihan spirit, LBC joined others to showcase how
the salient characteristics of this value continue to drive
the country forward.

Their participation stems from how much they value

nationalism, volunteerism, cooperation, community—all
of which are critical to LBC’s growth.

“We have long searched for partners and initiatives

that share the same principles as a way to contribute to
nation-building, progress, and economic vitality. And
through this event, we were fortunate enough to have
been given an opportunity to shine the spotlight on
a symbolic initiative that will hopefully resonate with
Filipinos on a wider scale.” - Rea L. Gomez, Corporate
Affairs, LBC Express, Inc.

156 | 2017 Annual Report LBC Express Holdings, Inc. | 157


Empowering Peace of Mind and Safety
for All Filipinos
For LBC, it’s not just about providing logistics
solutions, but also about caring for the welfare
of their customers. This is the message LBC
communicated when it strengthened its partnership
with Malayan Insurance to provide affordable micro
insurance for every family.
For just PhP25, the Kaagapay Insurance offers
coverage of up to PhP20,000.00 for accidental
deaths; total permanent disability due to accident;
and, disablement and dismemberment due to
accident. It also provides for P5,000.00 insurance for
murder and unprovoked assault; burial assistance in
case of accident; and, fire assistance.
“Our role of giving joy to our loyal patrons extend
well beyond our usual services. Because we value
them, we also value their security and safety, as well
as that of their families. We know that through the
help of Malayan Insurance, we have opened the
doors for everyone to protect themselves and their
loved ones more affordably”. - Oliver L. Valentin,
Senior Vice-President, Philippine Retail Operations,
LBC Express, Inc.
158 | 2017 Annual Report
A Step Forward Towards Digital
Transformation
LBC finalized a partnership with Ramco Systems to
begin implementation of the latter’s HR and payroll
solution.
In an effort to streamline internal operations, LBC
is leveraging on an automated system of HR, time
and attendance, leave management, employee self
service and recruitment. Initially rolled out locally, it
will eventually be implemented across LBC’s global
operations in an effort to strengthen engagement and
efficiency of the internal team team.
Moving towards a unified solution is a concrete step
towards LBC’s goal of achieving complete digital
transformation.
“Anchored on LBC’s service-centric values, and
bolstered by our intent to focus on delivering value
and joy in every aspect of our business, LBC looks
forward to how we can continue to grow the business
with partners who share our interest by our side.” -
Jhayner V. Bufi, Chief People Officer, LBC Express, Inc.
Making A Huge Step Forward for Education
With a focus on empowering access to education, LBC
worked with key partners to deliver educational materials
to communities in Marawi following their commitment to
rebuild with stronger foundations through literacy.
Over 100 boxes of books—totalling around 5,000
volumes—were gathered by RT Good Samaritan
Foundation, Adarna Foundation, Sari Sari Storybooks
and Mr. Chris Mills; 1 computer donated by Ms. Rebecca
Bustamante and family; and 10,000 books as well as
5 DVDs from Flipside publishing were gathered and
delivered to five communities for the Library Renewal
Partnership (LRP).
In addition, seven balikbayan boxes containing 1000
books from the Ortigas Foundation and Ortigas Library was
delivered by LBC Foundation and Soar High Foundation to
benefit several primary and elementary schools.
“Books matter. In fact, we believe they are an important part of anyone’s learning journey and be game changing when
it comes to overcoming some of the broader deficits related to educational access. This project is just a single, but no
less relevant part of the whole educational experience and it’s fortunate that we have found partners who share the
same vision and understand its impact.” - Christine L. Wuthrich, Executive Director, LBC Foundation
Ensuring Convenience
and Expanding Reach
LBC seals partnership with PERA HUB as sub-agent of
Western Union to further expand the company footprint
and serve more Filipinos. The alliance is a timely move
anchored not just on LBC thrust to offer reliability and
convenience for kababayans all over the country, but
also to support the rising volume of remittances sent by
overseas Filipinos to families back home.
According to recent data provided by Bangko Sentral ng “Our goal has always been to create more avenues for
Pilipinas, remittances from January to July 2017 totaled Filipinos to experience the convenience and reliability
$16.1 billion, an increase of 5.0%. With this collaboration, offered by LBC. This partnership with one of the most
services will now be available across LBC’s 1,300 respected and trusted names in money remittance will
branches nationwide, making it much more convenient definitely bring us a step closer to this overall vision.”
for customers to receive money transfers received from
Western Union.
LBC Express Holdings, Inc. | 159
 Contributing to the Nation’s Disaster Preparedness Empowering Growth of eCommerce by
through Technology Expanding eBay Philippines Services
LBC goes above and beyond their services to ensure that Filipinos are eBay Philippines, one of the leading e-commerce sites in the
informed, assisted and safeguarded, no matter what season. world, is now working with LBC Business Solutions to give their
merchants ways to deliver their goods (to their buyers) safely
A new partnership with WeatherPhilippines! saw the launch of an app providing and efficiently.
accurate weather forecasts all over the Philippines. The platform operates
around 800 automated weather stations across the country, some of which are As the country’s biggest express delivery company with
installed in select LBC branches. reliable money services, LBC is uniquely positioned to offer
new capabilities to bolster the growth of eCommerce in the
The WeatherPhilippines app also gives the public a detailed weather forecast Philippines. Under the partnership, LBC’s services to eBay
and enables the user to track typhoons and even determines which areas will merchants and their customers will not be limited to pickup and
be most affected. delivery of goods, but now includes cash on delivery (COD).

“Our goal is to find ways to leverage on our network and capabilities that goes “Our vision is to evolve the current eCommerce industry model
beyond our scope of services to serve Filipinos better. Disaster preparedness and tailor-fit our services based on the needs of each and every
starts with awareness and information, and through digital technology, we’re seller. It may be a challenge—but one that LBC is ready take on.”
making a concrete step forward to achieving our vision.” - Christian Guidotti, - Jet. S. Paulo, Assistant Vice-President, Corporate Sales, LBC
Vice-President, Administration, LBC Express, Inc. Express, Inc.

Celebrating LBC’s 1300th Branch Reaching Significant Milestones in Air Cargo

LBC continues to mark new milestones and opened The country’s flagship carrier, Philippine Airlines (PAL) honored Over LBC with the coveted Diamond Award. While
its 1300th branch, located in Ligaya, Eastlink Center, LBC has been consistently recognized for the significant volume of cargo loaded with the carrier since 2008, this
Caniogan, Pasig. year’s award marks LBC’s second consecutive win of PAL’s highest recognition.

The branch aptly symbolized LBC‘s renowned The Diamond Award is given to partners who
campaign - “AMING LIGAYA” which brings to light have contributed over P100M to the carrier in net
the whole thrust of LBC-- to bring joy to every revenues and the millions in cargo and parcels sent
Filipino they serve. through LBC and transported by PAL.

“We are humbled that we have grown this fast and “It’s an honor to receive this recognition from PAL
this strong over the years. Our resolve to serve and we look forward to growing our partnership
Filipinos across the globe by bringing their gifts of further as we continue linking our customers across
love across huge distances, is a commitment we the miles." - Dinna B. Tiongson, Vice-President,
will continue to pursue until the next generations.” Systems Operations, LBC Express, Inc.
- Jesus Venice Arias, Vice-President, NCR Branch
Operations, LBC Express, Inc.

160 | 2017 Annual Report LBC Express Holdings, Inc. | 161

 Corporate
Information
LBC Express Holdings
Tel: +632 856 8510
Fax: +632 851 9759
Email: info@lbcexpressholdings.com
www.lbcexpressholdings.com

External Auditor
SyCip, Gorres, Velayo & Company

Stock Transfer Agent

Rizal Commercial Banking Corporation - Stock Transfer Dept.

162 | 2017 Annual Report

LBC Hangar, General Aviation Centre
Domestic Airport Road, Pasay City
(+632) 856-8510
info@lbcexpressholdings.com
www.lbcexpressholdings.com