Chairman of the Board’s Message

"We are proud to present to you our second Annual and Sustainability Report, which details our financial, social, safety, and environmental performance for 2017.“

For the past 103 years, Pilipinas Shell has been more than just an oil and gas company in the Philippines. We are a partner in national development and an advocate of sustainable growth.

We are aligned with the Philippine government’s energy plan and take direction from its industry roadmap. To that end, Pilipinas Shell takes responsibility for securing fuel supplies of the highest quality and at the right quantities. In fact, we successfully introduced Euro IV (PH)-compliant fuels in 2016. This is part of our sustainability goal of providing access to high-quality fuels. In addition, we support the recently enacted Tax Reform for Acceleration and Inclusion (TRAIN) Law, as we understand that it has impacts not just for the fuel industry, but for the Filipino. The TRAIN Law is designed to support the government’s “Build, Build, Build” infrastructure programme, which is expected to further boost the country’s economy.

The Philippines has received multiple credit rating upgrades, and achieved a growth of 6.7% in 2017, which places it among the fastest growing economies in Asia. Alongside strong remittances from overseas Filipino

workers (OFWs), which hit an all-time high at $28.1 billion in 2017, domestic consumption is expected to remain high. It is against this economic backdrop that Pilipinas Shell positions itself. Our success as a business is supported by the overall growth for the country, and the outlook continues to be bright for the Philippines.

We count ourselves among the publicly listed firms that present a solid investment case and seek to protect the interests of our shareholders, which include local small investors. Beyond providing high dividends to our shareholders, our business also provides quality jobs, not only within our Company, but also for our extensive network of contractors and suppliers. As an employer, we invest in our people, equipping them so they are able to hold their own in the local arena or abroad.

Our core values have remained the same throughout our long history: honesty, integrity, and respect for people. As we work together towards strengthening Pilipinas Shell, we will remain ever mindful of our greater responsibility to society and the planet.

This is how we make the future.

Asada Harinsuit
Chairman of the Board
Shell Pilipinas Corporation