TABLE OF CONTENTS

6 Corporate Profile

7 Mission and Vision

8 Branches Nationwide

9 Company Highlights

10 Message

12 Financial Highlights

Management’s Discussion
13 and Analysis

17 Board of Directors

19 Officers

23 Wilcon Highlights 2019

29 Corporate Governance

35 Audited Financial Statements

88 Sustainability Report
 CORPORATE
PROFILE

Wilcon Depot, Inc. (PSE: WLCON) is the delivering the best service to its customers,
Philippines’ leading home improvement and Wilcon built its first depot-format store in Las
construction supplies retailer. It caters to the Piñas in 2003. The depot-format is a new
fast-growing segment of middle- to high- store concept for the business at that time and
income homeowners whose needs range from at 10,000 sqm, much larger than the older
new home construction, renovation, repair and branches with a more comprehensive product
maintenance to home improvement, furnishing selection. The depots offered more comfortable
and design. Wilcon is top-of-mind among shopping experience with free parking spaces,
homebuilders and homeowners looking to air-conditioned stores, reliable delivery service
build or renovate their homes with its complete and knowledgeable sales personnel. Over
spectrum of product offerings. Wilcon carries the next 16 years, Wilcon rapidly expanded
local and international brands of tiles, its operations with the opening of 47 more
sanitary wares and plumbing, hardware and depot format stores around the country.
tools, and other DIY items such as electrical
and lighting, paints and building materials, In its initial years, the business operated
doors and mouldings, and also household under several corporate entities based on
items such as furniture and home interiors, the geographical location of the branches
appliances and housewares, among others. and store formats. The companies were
Despite having a huge collection of products, then consolidated into Wilcon Builders
Wilcon maintains ease in shopping through Depot, Inc. (WBDI), to achieve economies
its organized and clutter-free environment. of scale and promote operational
efficiencies, which was completed in 2013.
Wilcon traces its roots in 1977 when its founder,
Mr. William T. Belo, opened his first branch, a On December 17, 2015, the Company, Wilcon
modest 60-sqm hardware store, in Quezon Depot, Inc. (WDI) was incorporated to operate
City. He gradually expanded the pioneer Wilcon the retail business of WBDI, which was renamed
branch as business picked up, opening three to Wilcon Corporation (WC) in November
more Metro Manila branches with an average 2016. WDI commenced operations on April 1,
area of 2,400 sqm from 1989 to 1995. 2016 upon the transfer of the retail operations
of the parent company and was listed on the
Wilcon’s first foray outside Metro Manila was Philippine Stock Exchange on March 31, 2017.
in 2002 when it opened a branch in Davao
City. In its continued efforts to find ways of

6
7
8
9
 MESSAGE

Dear shareholders,

I am pleased to report another great year for Wilcon the region. We have also grown our in-house and
Depot, Inc. The year 2019 was not without its exclusive product offerings. We not only introduced
challenges but we were able to new brands and added to our categories but also
deliver the results that we wanted. expanded product lines under existing brands.

We have been making great strides towards Wilcon always believed in harnessing the benefits
cementing our leadership position in the finishing of technology to better serve our market and
construction supplies and home improvement space. deliver excellent customer service all the time. As
We have gone this far through our relentless focus on part of our “Smart Transformation” thrust in 2019,
being the most complete and reliable partner of our we began the process of enhancing our current
customers in building, renovating and enhancing e-commerce platform. We started with a basic,
their homes. We were able to send across this value internally-developed e-commerce platform when
proposition to our market through our continued we first launched this at the start of 2019. By the
investments in our store network expansion, product end of the year, we completed the purchase of a
offerings and supply chain, enabling technology, new POS (point-of-sale) system that would be more
marketing efforts and our most valuable assets – our suitable to a more advanced platform. We also
employees, our CX (Customer Experience) heroes. started to shortlist tier one e-commerce platform
providers that will be the right fit operationally and
For 2019, we added six new depots to our store the most financially sensible to us at the same time.
network. We closed the year with 57 branches, We completed the purchase of a new e-commerce
50 depots and seven Home Essentials. The early platform in the first quarter of 2020 and we
successes of the new branches that we have expect the roll out of this with the new POS system
been opening in the last few years have validated to commence in the fourth quarter of this year.
our strategy of going closer to our markets,
creating opportunities for us to serve a wider In 2019, we have also started with the
customer base and letting them experience recording and collation of data on sustainability
Wilcon’s brand of service. Aside from opening metrics. This is in preparation for formulating
new stores, we have also expanded and a formal sustainability approach and
renovated six existing branches to better serve roadmap that would be the basis for our ESG
our growing number of customers in those areas. (Environmental, Social and Governance) journey.

In support of an expanding store network and Our continued efforts to strengthen our leadership
increased revenue contribution of our exclusively position has again resulted in a strong financial
distributed products, we have likewise completed performance in 2019. Sales grew 16.3% to
the construction of additional warehouse buildings P24.476 billion for the year, which generated net
in our existing main distribution center and at the earnings of P2.125 billion, a 15.8% hike from
close of the year opened our new regional hub in the the 2018 level. This strong performance enabled
south of Metro Manila. The regional hub is meant to us to increase our dividend payout this 2020 to
improve our fulfillment and distribution processes to P0.18 per share from last year’s P0.16 per share.
our growing number of stores and customer base in

10
We were looking forward to an even better 2020 We are hopeful that we shall all overcome this crisis
but as you may all know by now, we are in the and continue on to reach greater heights together with
middle of a pandemic that has wreaked havoc on your tireless support and faith in our management.
the global economy. We are currently traversing
through this very difficult time with the aim of Together, WeWILCONquer!
continuously serving the needs of our market while
doing our best to ensure that our CX heroes, our
customers and the various communities we are
in are kept safe. How apropos that our theme for
this year, which we launched at the start of the
year, is to celebrate our CX heroes – our dedicated LORRAINE BELO-CINCOCHAN
frontliners, whose service we are thankful for. Director, President and Chief Executive Officer

11
FINANCIAL HIGHLIGHTS

12
 MANAGEMENT’S
DISCUSSION AND
ANALYSIS
 For the year ended December 31, 2019 compared with period ended December 31, 2018.

Results of Operations for the Twelve Months Ended December 31, 2019

Wilcon Depot, Inc. (WDI or the Company) generated net income of ₱2,125 million for the year ended
December 31, 2019, higher by 15.8% or ₱289 million from the ₱1,835 million reported in 2018 with net
income margins of 8.7% both for 2019 and 2018. The improvement was driven by the 16.3% increase in
net sales and the improved gross profit margin as a result mainly of margin-enhancing product mix strategy.
The increase was partly offset by rising operating and non-cash financing expenses brought about by the
adoption of the new accounting standard for recognizing operating leases and other expenses necessary to
support the store network expansion strategy of the Company.

Net Sales

The Company recorded net sales of ₱24,476 million for the year ended December 31, 2019, 16.3% or
₱3,435 million higher than the ₱21,041 million reported in 2018. The growth was driven by the ₱2,331
million contribution from new stores accounting for 67.9% of the total increase and the comparable sales
growth of 5.2% for the period.

Its flagship format, the depot, accounted for 95.9% or ₱23,469 million of the total. The format grew by
16.5% or ₱3,318 million from the ₱20,150 million net sales in 2018, driven by the continuous roll out and
ramp up of new stores and same store sales growth of 5.0%.

Net sales generated by the smaller format, “home essentials”, stores comprised the 2.7% or ₱658 million of
total net sales and improved by 6.2% or ₱39 million from the prior year’s ₱619 million with a 4.0% same
store sales growth. The remaining 1.4% was accounted for by the project sales amounting to ₱349 million,
increasing by 28.6% or ₱78 million in 2019.

During the year, the Company opened six new depots bringing the total number of stores to 57 (50 depots
and seven home essentials) by the end of 2019. The Company opened three branches in Luzon, one in the
Visayas and two in Mindanao.

Gross Profit

Gross profit closed at ₱8,176 million, resulting in a gross profit margin of 33.4% for the year ended
December 31, 2019. For the year ended December 31, 2018, gross profit is reported at ₱6,603 million for
a gross profit margin of 31.4%. The hike was brought about by the expanding contribution of the higher
margin in-house and exclusive products to total net sales. Sales of exclusive and in-house products
accounted for 49.5% of total net sales for the year versus 46.9% in 2018. Continued sales growth of non-
exclusive products also earned for the company volume discounts in addition to cash discount opportunities
successfully pursued by the company, both of which partly contributed to the improved blended gross profit
margin.

Operating Expenses

Operating expenses increased to ₱5,396 million for the period, up 22.1% or ₱975 million from the prior
period’s ₱4,421 million. The increase is traced mainly to expansion-related expenses, salary rate
adjustments and the adoption of Philippine Financial Reporting Standard (PFRS) 16, Leases. Depreciation
and amortization recorded the highest increase as a result of the continuous addition of the company-
owned store buildings and the re-classification of part of rent expense to depreciation. Consequently, rent
expense dropped by 63.9% or ₱588 million.

The company adopted the new accounting standard for leases, PFRS 16 starting January 1, 2019, which
involved the recognition of the company’s qualified operating leases as lease assets with the corresponding
lease liability in the balance sheet. As a result, qualified lease-related expenses previously classified as rent
expense are reflected in the income statement as depreciation/amortization of the lease asset and interest
expense on the lease liability.

14
Interest Expense

Interest expense for the years ended December 31, 2019 and 2018 amounted to ₱300 million and ₱2
million, respectively. The ₱298 million increase represents interest charged on lease liability recognized for
the period in relation to the adoption of PFRS 16 by the Company, starting January 1, 2019.

Other income (Charges)

Other income (charges) for the year ended December 31, 2019 totaled ₱463 million, up 28.7% or ₱103
million from the ₱359 million recorded in 2018. Other income consists of: 1) Rent and net other income
from trade and other suppliers amounting to ₱311 million, up 88.7% or ₱146 million from 2018
representing net charges for the lease of bill boards, gondola lights, end caps, etc. and their share of
various operational and promotional/marketing expenses and other non-merchandise sales related income;
2) Interest income of ₱151 million which decreased from the prior year’s balance of ₱195 million as the
IPO proceeds continue to be deployed for expansion purposes.

Earnings Before Interest and Tax (EBIT) / Earnings Before Interest, Tax, Depreciation and Amortization
(EBITDA)

EBITDA for the year ended December 31, 2019 reached ₱4,225 million, or 17.3% of net sales. EBITDA for
the year ended December 31, 2018 is reported at ₱2,512 million, or 11.9% of net sales.

EBIT for the year 2019 is ₱3,091 million or 12.6% of net sales, while for the year 2018 amounted to
₱2,347 million, or 11.2% of net sales, respectively.

The significant hike in EBITDA, particularly is due mainly to the change in accounting standards. It should
be noted that ₱721 million of the depreciation and amortization expense and the total interest expense of
₱300 million as at December 31, 2019 are re-classified rent related expense due to the adoption of PFRS
16 for the treatment of operating leases by the Company.

Income Tax Expense (Benefit)

The Company’s income tax expense increase by 16.1% or ₱114 million to end at ₱818 million, versus
₱704 million incurred during 2018 in view of higher taxable income.

Financial Condition

Assets

WDI’s total assets grew by 49.9% or ₱8,735 million from ₱17,502 million balance as at December 31,
2018 to close at ₱26,237 million as at December 31, 2019. The increase was due mainly to the
recognition of right of use assets (PFRS 16), additional inventories and capital expenditures related to store
network expansion.

Current Assets

Aggregate cash and cash equivalents including short-term investments decreased by ₱764 million or 26.9%
from ₱2,842 million at the close of 2018 to ₱2,079 million by end 2019, traceable primarily due to
payment of inventories and construction liabilities.

Trade and other receivables totaled ₱440 million as at December 31, 2019, 43.5% or ₱133 million higher
than the ₱307 million balance as at December 31, 2018. The increase was mainly due to increase in credit
sales.

15
 Merchandise inventories totaling ₱9,518 million make up the bulk of current assets, accounting for 63.4%
of total current assets as at December 31, 2019. This represents a 29.8% or ₱2,186 million jump over the
ending 2018 balance of ₱7,331 million to support the requirements of the new store openings and
increased contribution of in-house and exclusive products.

Noncurrent assets

The Company’s noncurrent assets reached ₱11,215 million, 75.8% or ₱4,836 million higher than the
₱6,379 million balance as at December 31, 2018 in view mainly of the adoption of PFRS 16, which
requires lessees to recognize right of use assets and lease liabilities and the continued construction of new
company-owned store buildings partly offset by the re-classification of financial assets at FVOIC to current
assets.

Liabilities

Current liabilities amounted to ₱7,236 million as at year end 2019, up 73.5% or ₱3,065 million from the
₱4,171 million balance as at December 31, 2018. The increased was due mainly to the recognition of the
current portion of lease liabilities and increased trade and other payables.

Non-current liabilities totaled ₱4,339 million, significantly higher by ₱4,221 million from the December 31,
2018 balance of ₱118 million. The increase was mainly due to the adoption of PFRS 16 which requires
lessees to recognize right of use assets and lease liabilities.

Total liabilities amounted to ₱11,576 million as at December 31, 2019, ₱7,286 million or 169.8% higher
than the balance of ₱4,290 million at the end of 2018.

Equity

Total equity amounted to ₱14,662 million, comprised of capital stock of ₱4,100 million, additional paid-in
capital of ₱5,374 million, retained earnings of ₱5,125 million, and other comprehensive income (loss) of
₱63 million as at December 31, 2019. Total equity as at December 31, 2018, meanwhile totaled
₱13,212 million. The 11.0% rise in the equity balance is primarily due to net income earned for the period
of ₱2,125 million partly offset by the payment of dividends.

Key Financial Performance Indicators

Key Performance Indicators 2019 2018

Sales 24,476,094,604 21,041,433,928
EBIT 1
3,091,466,921 2,347,488,128
EBITDA2 4,224,642,081 2,512,340,109
EBIT Margin3 12.63% 11.16%
Current Ratio 4
2.08 2.67
Debt to Equity Ratio5 0.79 0.32
Interest Coverage Ratio 6
10.29 1,000.93

1. Income before tax add interest expense

2. Income before tax add interest expense and depreciation and amortization
3. EBIT / Net Sales
4. Current Assets / Current Liabilities
5. Total Liabilities / Total Equity
6. EBIT/ Interest Expense

16
BOARD OF DIRECTORS

Bertram B. Lim, 82
Independent Director, Chairman

Bertram B. Lim is the Chairman of the Company. He is also the Chairman of the United Neon Advertising, Inc.,
the largest outdoor advertising company in the Philippines and the Chairman of the Center for Community
Transformation, a Christian non-government organization, ministering to the poor, with half a million beneficiaries.
He is the Board Treasurer of the Trinity University/St. Luke’s Health Sciences Consortium and a Bestselling Author.

Lorraine Belo-Cincochan, 40
Director, President and Chief Executive Officer

Lorraine Belo-Cincochan is a Director, President and the Chief Executive Officer of Wilcon Depot, Inc.
She has held various positions in the Wilcon business starting out as a trainee under her father who was
then president of Wilcon. In 2000, she headed the company’s IT department that resulted in the digital
transformation of Wilcon’s key processes. From 2003 to 2005, she was assigned to manage the daily
operations of the first ever large format Wilcon Depot branch as a Manager-trainee where she gained real
world experience in retail operations. She was then appointed as Executive Vice President for Operations
in 2005 and in 2006 became the Company’s Executive Financial Officer, holding the position until March,
2016. In 2018, she was recognized as one of the 2018 Forbes Asia Emergent Women Honorees. Ms.
Belo-Cincochan graduated from the University of the Philippines, Diliman in 1999 with a Bachelor’s
degree in Creative Writing. She also took an intensive Mandarin language course in Beijing.

She takes an active role in the Philippine chapter of the Entrepreneur’s Organization where she co-chairs
the Mentorship Program. Her advocacy is in developing and growing leadership through mentoring
where entrepreneurs can rise up and make an impact in their companies and ultimately, their communities.

Mark Andrew Y. Belo, 37

Director, Treasurer
Mark Andrew Y. Belo is a Director and Treasurer of the Company and the President and Chief Executive
Officer of WC from March 2016 to the present. He served as the Chief Financial Officer of the Company
from 2016 to March 2019. Under WC, he was Assistant Vice-President for Business Development from
2015 to March 2016 and Executive Project Management Head from January 2013 to March 2015. He was
also assigned in various positions under Wilcon Builders Supply, Inc. from July 2004 to August 2007. He
graduated from the University of Asia & the Pacific in 2004 with a bachelor’s degree in Industrial Economics.

Careen Y. Belo, 36
Director, Chief Product Officer

Careen Y. Belo is a Director, Chief Product Officer, Chief Risk Officer and Chief Information Officer of
the Company. She is concurrently a Director of WC, the Executive Vice President for Sales and Product
Development of Coral-Agri Venture Farm Inc., Executive Officer of Crocodylus Porosus Phil Inc. and
President of The Meatplace Inc. She held various positions in the business having been a Business
Development Manager from 2004 to 2007 of WC, Marketing and Sales Assistant from 2007
to 2014 and Executive Financial Audit Manager from 2014 to March, 2016. Ms. Belo obtained
her Bachelor of Science in Management from the University of Asia and the Pacific in 2005.

17
 Ricardo S. Pascua, 71
Independent Director

Ricardo S. Pascua is an Independent Director of the Company since September 2016. He was Vice Chairman
of the Board and President and CEO of Metro Pacific Corporation from January 2000 until his retirement
in December 2001, a position he held also from January 1993 to July 1995. In between, he was Vice
Chairman and CEO of Fort Bonifacio Development Corporation. He was concurrently an Executive Director
of First Pacific Company Ltd. from 1982 to 2001 and as such served in the boards of companies such as
Smart Communications, Inc., United Commercial Bank in San Francisco, California, First Pacific Bank in Hong
Kong and 1st eBank in Manila. Mr. Pascua started his career in Bancom Development Corporation as Asst.
Vice President in 1972 and was assigned in Bancom International Ltd. in Hong Kong as Senior Manager in
1975. Currently, Mr. Pascua serves as an independent director in various corporations and foundations. He
is likewise involved in several businesses as Chairman of the Board of Caelum Developers Inc., Facilities &
Property Management Technologies, Inc., Ascension Phildevelopers, Inc.; Chairman of the Executive Committee
of Phoenix Land Inc. and a Director in Boulevard Holdings, Inc., Central Luzon Doctor’s Hospital, Costa de
Madera Corp. and Quicksilver Satcom Ventures, Inc.; and the President of Bancom II Consultants, Inc. Mr.
Pascua has a Master of Business Management from Asian Institute of Management obtained in 1971 and he
finished his bachelor’s degree majoring in Economics (Cum Laude) from the Ateneo de Manila University in 1969.

Rolando S. Narciso, 73
Independent Director

Rolando S. Narciso is an Independent Director of the Company since September 2016. He was formerly a Director
and Officer of New Kanlaon Construction, Inc. from 2004 to 2014. He was President and Chief Operating
Officer of Steel Corporation of the Philippines from 1998 to 2004 and President and Chief Executive Officer
of Royal Asia Multi-Properties, Inc. from 1996 to 1997. Before the National Steel Corporation was privatized,
Mr. Narciso was its President and Chief Operating Officer from 1989 to 1995 and concurrently from 1989
was a Director of Refractories Corp. of the Phils. And Semirara Coal Corp. up to 1994; and Integrated Air
Corp. up to 1993. From 1974 to 1988, he held various positions in National Steel and other subsidiaries of
the National Development Company. He also held various positions in the Esso Group of Companies from
1967 to 1974. He is a member of professional organizations such as the Financial Executives, Inc. and the
Management Association of the Philippines. He obtained his Master in Business Management and Bachelor of
Science in Business Administration degrees from the Ateneo de Manila University in 1967 and 1965, respectively.

Delfin “Jing“ L .Warren, 69

Independent Director

Delfin “Jing” L. Warren, is an Independent Director of the Company since May 2017. He is the founder, main principal,
and current Chairman of the 1ISA Group, a leading loyalty management company in the country. He was the former
CEO of PT Darya-Varia Laboratoria, a major publicly listed pharmaceutical company in Indonesia under the First Pacific
Group. He also held various senior positions in prestigious companies such as First Pacific Commodities Holdings,
Ltd., The Hibernia Bank of San Francisco, PT Indo Ayala Leasing (Indonesia), and Bancom Philippine Holdings,
Inc. He is a licensed Chemical Engineer and he obtained his Bachelor of Science in Chemical Engineering degree
at De La Salle College, Manila in 1971. He was a consistent dean’s lister and a recipient of Jose Rizal Scholarship.

18
OFFICERS
William T. Belo, 74
Founder, Chairman Emeritus

William T. Belo is the Chairman Emeritus of the Company.

He is the founder of the Wilcon business and brand. He was
Chairman and/or President of all Wilcon companies established
and/or acquired from 1977 to 2016 including the parent, WC.
Currently, he is involved in other business undertakings and serves
as Director of Markeenlo Realty Inc., Lomarkeen Realty Inc.; the
President of Coral-Agri Venture Farm Inc., Coral Farms, WAJ
Realty Development Inc.; and Treasurer of Crocodylus Porosus
Philippines Inc. He also serves as the Chairman of Wilcon
Builders Foundation Inc. He won the 2013 MVP Bossing Award,
a distinction given to outstanding entrepreneurs of the country. In
2018, he was recognized as an Outstanding Thomasian Engineer,
awarded as one of the People of the Year by People Asia and
Patriarch of Home Building Retail by the Philippine Retailers
Association. In 2019, he received the UST Engineering Alumni
Association Inc. Presidential Award and The Manila Times Man
of the Year of the Asia Leaders Award. Mr. Belo graduated
from the University of Sto. Tomas in 1968 with a Bachelor of
Science degree in Electronics and Communications Engineering.

Rosemarie Bosch-Ong, 61
Senior Executive Vice President
and Chief Operating Officer

Rosemarie Bosch-Ong is the Senior Executive Vice President

and Chief Operating Officer of the Company. She held this
position since 2007 initially under WC, immediately prior, she
was Executive Vice President for Sales and Marketing, which she
held from 1988 to 2007. She started out in the business as a
Purchasing Manager under WBSI from 1983 to 1988. She is also
the President of the Wilcon Builders Foundation Inc., which she
has headed since 2008. She is the President of Philippine Retailers
Association, a former Treasurer of the Philippine Association of
National Advertisers (PANA) Foundation and a former Director
of the Philippine Constructors Association. Ms. Bosch-Ong has
a Master’s degree in Business Administration from De La Salle
University obtained in 2010 and she graduated from the University
of the East in 1986 with a Bachelor’s Degree in Economics.

19
 Lorraine Belo-Cincochan, 40
Director, President and Chief Executive Officer

Mark Andrew Y. Belo, 37

Director, Treasurer

Careen Y. Belo, 36
Director, Chief Product Officer

20
Atty. Arthur R. Ponsaran, 76
Corporate Secretary

Atty. Sheila P. Pasicolan-Camerino, 33

Assistant Vice President - Corporate Lawyer
Assistant Corporate Secretary

Grace A. Tiong, 46
Vice President - Human Resources
Compliance Officer

Eden M. Godino, 43
Vice President - Product Development

21
 Michael D. Tiong, 46
Vice President - Global Sourcing

Mary Jean G. Alger, 49

Vice President - Investor Relations

Lauro D.G. Francisco, 54

Chief Audit Executive

22
 WILCON
HIGHLIGHTS
2019
 STORE OPENINGS

Wilcon Depot Panacan, Davao City Wilcon Depot San Isidro, Antipolo City

Wilcon Depot Sta. Barbara, Iloilo Wilcon Depot Sto. Tomas, Batangas

Wilcon Depot Opol, Misamis Oriental Wilcon Depot Iguig, Cagayan

24
AWARD
Wilcon Depot Wins International Award for Customer Excellence

Wilcon Depot has won the International Award for Excellence in Customer
Service from the Federation of Asia-Pacific Retailers Association (FAPRA).

FAPRA awards recognize companies, associations, and individuals for outstanding

achievements in the retail industry in five categories – most innovative retail concept,
best marketing campaign, green retailer, best effort in retail employee training, and
customer service excellence. The awarding was held in conjunction with the 19th Asia
Pacific Retailers Conference and Exhibition (APRCE) & International Goods Fair, one of the
retail industry’s biggest regional events, last September 5-7, 2019, in Chongqing China.

This international recognition in Customer Service Excellence awarded to Wilcon

Depot is a testament of Filipinos’ globally competitive and excellent customer-
focused attributes. Wilcon Depot is committed to staying true to its mission to help
Filipinos build, improve, and refine their homes for a sustainable and comfortable life.

25
 EXHIBITS

WORLDBEX 2019
Wilcon Depot showcased its premium local and
international product lines at the Asia’s biggest
and most attended construction show – the 24th
Philippine World Building and Construction
Exposition (WORLDBEX) at World Trade Center,
Pasay, Metro Manila on March 13-17, 2019.

45TH UAP CONEX AND NATCON

Wilcon Depot joined the 45th UAP National
Convention (NATCON) and its coinciding event,
UAP Construction Exposition (CONEX) last
April 11-13, 2019 held at the SMX Convention
Center in Pasay.

PHILBEX CEBU
Wilcon Depot brought its extensive top-grade
local and international products at the largest and
most comprehensive building and construction
trade show that happened on September 12-
15, 2019 at SM City Cebu Trade Hall, Cebu
City organized by the Philippine Building and
Construction Exposition (PHILBEX).

26
HUGIS ATBP EXHIBIT
Wilcon Depot participated in the Philippine School of
Interior Design (PSID) for the HUGIS ATBP: Homes Using
Geometrically Inspired Spaces For Alternative Types of
Built Places exhibit that showcased home inspiration from
geometric shapes focusing on materials that are eco-friendly,
sustainable, natural, and indigenous. The exhibit was held on
October 1-31, 2019 at the 5F Greenfield Tower, Greenfield
District in Mandaluyong City.

PHILCONSTRUCT
Wilcon Depot exhibited its wide array of home building
products in the PHILCONSTRUCT: 30th Philippine
International Construction Equipment, Building Materials,
Interior & Exterior Products Exhibition and Technology
Forum staged at the SMX Convention Center, Pasay City on
November 7-10, 2019.

NRCE
Wilcon joined the 26th National Retail Conference & Stores
Asia Expo, the country’s longest and biggest retail conference
and exhibition, organized by Philippine Retailers Association
held on August 15-16, 2019 at SMX Convention Center,
Pasay City.

STORE ASIA EXPO

Wilcon Depot showcased its high-quality and trusted home
products at the Stores Asia Expo 2019.

27
 MARKETING CAMPAIGNS

Wilcon Online Shop Launching Wilcon Win Your Dream Ride Promo

Wilcon Loyalty Rewards Promo

PARTNERSHIP &
COLLABORATIONS
Wilcon Depot supports its long-time industry partner, Green
Architecture Advocacy Philippines (Green AP), in celebrating
their anniversary through the 16th Green Forum with the
theme “Sustainability for All: A Decade and Beyond” at the
Summit Halls, Philippine International Convention Center
(PICC) Complex, Pasay City on August 30 and 31, 2019.

Green AP engages all professions and business leaders from

other industries and the general public to study and adopt
sustainable practices in design, construction, operations,
and maintenance. As it constantly supports architects and Wilcon Depot supports Green
other professionals in the building industry, Green AP and AP’s 16th Green Forum
Wilcon’s partnership aims to find new ways to improve life in
the Philippines.

28
 CORPORATE
GOVERNANCE
 CORPORATE GOVERNANCE
The Company ensures and confirms compliance with its Revised Manual on Corporate Governance (RMCG) for
the year 2019. On August 7, 2019 the Company adopted a Policy on Material Related Party Transactions in
compliance with SEC Memorandum Circular No. 10 series of 2019 and accordingly amended its Related Party
Transactions Committee Charter.

Board Composition

The Board is composed of seven (7) directors, elected by the Company's stockholders on 17 June 2019, and
shall hold office for one (1) year and until their successors are elected and qualified in accordance with the
Company's By-Laws. The Board is composed of directors with collective working knowledge, experience or
expertise that is relevant to the Company's industry. The Board has an appropriate mix of competence and
expertise and that its members remain qualified for their positions individually and collectively, to enable it to
fulfill its roles and responsibilities and respond to the needs of the organization based on the evolving business
environment and strategic direction.

The Board is composed of the following:

No. of Years
Name Directorship Age Date of First Election
as Director
Chairman/
Bertram B. Lim 82 22 May 2017 2
Independent Director
Ricardo S. Pascua Independent Director 71 13 September 2016 3
Rolando S. Narciso Independent Director 73 13 September 2016 3
Delfin L. Warren Independent Director 69 22 May 2017 2
Lorraine Belo-Cincochan Executive Director 40 30 March 2016 3
Mark Andrew Y. Belo Executive Director 37 30 March 2016 3
Careen Y. Belo Executive Director 36 30 March 2016 3

The Board oversees the development of and approves the Company's business objective and strategy, and
monitors their implementation, in order to sustain the Company's long-term viability and strength.

The Board Members act on a fully informed basis, in good faith, with due diligence and care, and in the best
interest of the company and all shareholders.

Board Attendance

The Board of Directors had twenty-three (23) meetings held in 2019. The attendance of the members of the
Board was duly reported to the SEC and made available on the Company’s website. On 6 November 2019, the
non-executive directors had a separate meeting with the external auditor and chief audit executive without any
executive present and no significant issues or matters had been discussed.

Board Performance Assessment

On 24 February 2020, the members of the Board conducted an annual board performance assessment. The
objectives of the assessment are to evaluate and obtain inputs about the performance of the Board, its members
and committees during the last twelve months – January 1, 2019 to December 31, 2019.

30
Board Training

On 17 June 2019, the members of the Board as well as officers of the Company attended a corporate
governance seminar, entitled “Modernizing Policies for Effective Governance” conducted by the Center for
Training and Development, Inc. This 4-hour annual CG training covered the following topics:

• Corporate Governance Updates

• Data Privacy Law
• Strengthening Internal Control
• Succession Planning

Board Diversity

The Company has a Board Diversity Policy because it believes that a diverse Board better understands its
customer base and the environment that the business operates in. This promotes different perspectives and ideas
and mitigates groupthink to achieve optimal decision-making. Board diversity may refer to distinctions in age,
ethnicity, culture, skills, competence, knowledge, gender, among other things.

The Company is committed to the following principles:

• Recognizes and embraces the benefits of having a diverse Board and sees increasing diversity
at Board level as an essential element in the attainment of its strategic objectives and
maintaining a prudent corporate governance.

• All Board appointments are made on merit, in the context of the skills, experience,
independence and knowledge, and candidates will be considered against objective criteria,
which the Board as a whole requires to be effective.

Board Independence

The Board is composed of four (4) independent directors. The chairman is also an independent director. The
independent directors of the Company possess all the qualifications and none of the disqualification of a regular
director. They are independent of the Management, substantial shareholdings and material relations whether it
be business or otherwise, which could reasonably be perceived to impede the performance of independent
judgement.

Board Committees

To address specific tasks and responsibilities and ensure optimal performance of the Board, the Board had
organized seven (7) committees, namely the Executive Committee, the Corporate Governance Committee, the
Audit Committee, the Board Risk Oversight Committee, Related Party Transactions Committee, Nomination
Committee and the Compensation Committee. The members of the Committees are appointed by the Board
annually.

Executive Committee

The Executive Committee is composed of five (5) members of which the Chairman of the Board is the
ex-officio Chairman, and the President is the ex-officio Vice Chairman, and three (3) other members
elected/designated by the Board.

31
 For 2019, the Executive Committee is composed of the following members:

Chairman Bertram B. Lim

Vice Chairman Lorraine Belo-Cincochan

Mark Andrew Y. Belo
Members Careen Y. Belo
Delfin L. Warren

Audit Committee

The Audit Committee’s primary function is to enhance the Board’s oversight capability over the
Company’s financial reporting, internal control system, internal and external audit processes and
compliance with applicable laws and regulations. It is composed of three (3) independent directors. The
chairman of the Audit Committee is an independent director. The members have adequate
understanding and competence of the Company’s financial management systems and environment
particularly, in the areas of accounting, audit and finance.

The Audit Committee had four (4) meetings in 2019 particularly on March 6, May 8, August 7 and
November 6, 2019 with 100% attendance in all meetings.

Board Risk Oversight Committee

The Board Risk Oversight Committee (BROC) shall be responsible for the oversight of the Company's
Enterprise Risk Management system to ensure its functionality and effectiveness. It is composed of three
(3) independent directors. The chairman of the Board Risk Oversight Committee is an independent
director. The members of the committee have adequate and competent understanding and experience
on risk management principles and practices, in addition to thorough knowledge of the Company's
Business and industry in which it operates.

Related Party Transactions Committee

The Related Party Transactions Committee shall have the primary function of reviewing all material
related party transactions (RPT). It is composed of three (3) independent directors. The chairman of the
Related Party Transactions Committee is an independent director.

For 2019, the Audit Committee, Board Risk Oversight Committee and Related Party Transaction
Committee are composed of the following members:

Chairman Ricardo S. Pascua

Rolando S. Narciso
Members
Delfin L. Warren

Corporate Governance Committee

The Corporate Governance Committee is composed of three (3) independent directors, including the
Chairman. The Committee is tasked to assist the Board in the performance of its corporate governance
responsibilities. The Committee had two (2) meetings in 2019.

32
 Nomination Committee

The Nomination Committee shall assist the Board in fulfilling its corporate governance and compliance
responsibilities. The Committee is composed of three (3) independent directors, including the
Chairman. It shall promulgate the guidelines and criteria to govern the conduct of the nomination. The
same shall be properly disclosed. The Company is allowed to engage the services of professional
search firms or use other external sources of candidates when searching for candidates to the Board of
Directors. The Nomination Committee had their meeting twice this year.

Remuneration and Compensation Committee

The Remuneration and Compensation Committee is composed of three (3) independent directors,
including the Chairman. The Remuneration and Compensation Committee ensures that the
compensation policies and practices are consistent with the corporate culture, strategy and business
environment under which the Company operates. Recommend a formal and transparent framework of
remuneration and evaluation for the members of the Board and the Company’s key executives to
enable the directors and officers to run the Company and evaluate and recommend to the Board
incentives and other equity-based plans designed to attract and retain qualified and competent
individuals.

For 2019, the Corporate Governance Committee, Nomination Committee and Remuneration
Committee are composed of the following members:

Chairman Rolando S. Narciso

Delfin L. Warren
Members
Ricardo S. Pascua

Board Remuneration

All directors attending physically in a committee meeting shall receive a per diem of Twelve Thousand Five
Hundred Pesos (P12,500.00), per meeting and Twenty Five Thousand Pesos (P25,000.00) per Board meeting.

2019 COMPANY POLICY

Material Related Party Transaction Policy

On August 7, 2019, the Company adopted a Policy on Material Related Party Transactions in compliance with
SEC Memorandum Circular No. 10, series of 2019 on the Rules on Material Related Party Transactions for
Publicly Listed Companies effective April 27, 2019.

The policy defines and sets out the roles, responsibilities and authority of the Board in reviewing, evaluating and
approving material related party transactions. The policy also includes the rules and procedures that shall guide
the Board, the Related Party Transactions Committee and Senior Management in the performance of their
functions.

33
 2019 REPORT OF THE AUDIT COMMITTEE TO THE BOARD OF DIRECTORS
The following activities were undertaken by the Audit Committee in 2019 in fulfillment of its primary duties and
responsibilities and were reported to the Board:
Financial Reporting
• Reviewed the quarterly financial reports and unaudited financial statements prior to endorsement to the Board
for its approval.
• Reviewed the interim annual financial statements and consequently the audited annual financial statements
(during the first quarter of the succeeding year 2020) including Management’s significant judgments and
accounting estimates & adjustments.
Internal and External Audit Processes
• Reviewed the external auditor’s report on the Company’s audited 2019 financial statements and internal control
observations and endorsed these to the Board for approval.
• Reviewed Company Management’s endorsement to reappoint RT&Co. as external auditor for 2019 based on its
performance and proposed audit fees, for concurrence by the Board and approval by the stockholders in the
Annual Stockholders’ Meeting.
• Reviewed and approved the 2019 interim and year-end External Audit Plan by RT&Co. that includes the audit
team, scope of work & deliverables, audit approach, and the key risk areas.
• Reviewed the external auditor’s updates on its audit of the Company’s 2019 financial statements.
• Noted the Internal Audit Head’s annual attestation on organizational independence, objectivity, and absence of
conflict of interest.
• Reviewed and approved the 2019 Internal Audit Plan and Budget, including Internal Audit’s co-sourcing
agreements with third party service providers.
• Reviewed, discussed and evaluated Internal Audit’s 2018 and 2019 quarterly and year-end accomplishment
reports and audit findings, including the status of Company Management’s actions to Internal Audit
observations and recommendations.
• Conducted executive session separately with the external auditor and the Internal Audit Head (without the
presence of any executive directors or members or representatives of Company Management).
Internal Control and Risk Management Processes
• Reviewed reports and updates on the Company’s enterprise risk management.
• Evaluated the overall effectiveness of internal control system and risk management in the Company, based on
the reasonable assurance provided by Senior Management, Internal Audit/ Chief Audit Executive, and the
External Auditor. The Committee is generally satisfied with the systems, processes, and safeguards in place in the
Company.
Compliance with Laws and Regulations
• Noted the representation by the Company’s Compliance Officer and Senior Management of the absence of
significant breach of laws and regulations or involvement in any governmental, legal or arbitration proceedings
that may have a material effect on the Company’s business, financial position or profitability, as contained and
disclosed in the Company’s SEC Form 17-A 2019 Annual Report filed on February 28, 2020.

34
AUDITED
FINANCIAL
STATEMENTS
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2019
SUSTAINABILITY
REPORT
COVER PAGE
 COMPANY INFORMATION

Sustainability is built into the business of Wilcon. We have been in the

industry for 42 years, growing from a humble 60-square-meter shop into the
Philippines’ leading home improvement and construction supplies retailer.
We achieved this because we understand that a sustainable and comfortable
life is the dream of every Filipino family, and we made it our mission to
support this aspiration.

With growth and development, dreams and aspirations get bigger. We are
committed to contributing the best expertise, knowledge, resources, and
skills to promote stronger, safer, and more sustainable homes and buildings
for everyone as their lives improve through the long-lasting quality products
and solutions we provide. We understand that as Wilcon continues to expand,
we must manage our resources responsibly while sharing this growth with
our different stakeholders, internal and external, and make sure these
partnerships create value for everyone. Over these four decades, we have
promoted the growth of our business and in effect cultivated the
development and success of our employees within the company.

Company lnformation
Company details

Name of Organization Wilcon Depot (PSE: WLCON)

Location of Headquarters No. 90 E. Rodriguez Jr. Avenue, Ugong Norte, Quezon City

Location of Operations See list of locations in Appendix A

Report Boundary: Legal entities included in this report Wilcon Depot, Inc.

Business Model 2 retail formats – the depot store format and the home essentials store format,
which are known under the trade names "Wilcon Depot" and "Wilcon Home
Source: https://edge.pse.com.ph/companyInformation/form.do?cmpy_id=665 Essentials", respectively.

Reporting Period 31 December 2019

Highest Ranking Person for this report Lorraine Belo-Cincochan, President - CEO

2
90
UNDERSTANDING OUR SUSTAINABILITY CONTEXT AND IMPACTS
The Securities and Exchange Commission’s sustainability reporting requirement among publicly listed
companies is an opportunity for Wilcon to take stock of everything that we have done to deliver on our
commitment and find ways to build our big ideas better. In 2019, we undertook a rigorous two-month
materiality process, which now allows us to focus our energies and resources on a sustainability agenda that
is strategic to the business, promotes its growth, manages impacts and minimizes risks, and contributes to
sustainable development.

To identify those topics most relevant to Wilcon out of a

universe of sustainability issues identified in the
research, we analyzed them vis-à-vis the results of
stakeholder engagement on Wilcon’s overall strategic
priorities, existing programs and initiatives, and investor
queries regarding Wilcon’s environmental, social and
governance (ESG) agenda. The results of this analysis
were presented to the senior management team for their
inputs, validation, refinement, and final approval in
December 2019. Further insights were provided by the
CEO and COO in January 2020.

Being an industry leader, we wanted to have a more comprehensive view of the sustainability pressures and
drivers that shape our business. To ensure this, we conducted a four-step materiality process that covered:

A desktop review of key global drivers, trends and risks identified by international development organizations,
●

multilateral agencies, global sustainability surveys, and sustainability ratings agencies, as well as sector-specific
sustainability issues, including benchmarking against the performance of three sustainability leaders in retail
and real estate; and
Nine sets of stakeholder interviews, covering internal (permanent employees from different departments of the
●

business and members of senior leadership/C-suite) and external stakeholders (suppliers of varying business
size and nature of operations) in terms of their relevant issues with, impacts of, and expectations from Wilcon.

3
91
 Our Material ESG Topics and Management Actions

Wilcon’s assessment process resulted in the above list of sustainability topics that are material to the
business and where we create the most impact. All these present Wilcon with opportunities for better and
long-term value creation. Conversely, we understand that they may pose risks to the business if we do not
monitor and manage our performance on these issues.

Thus, our materiality process provided us with the opportunity to identify the necessary management
actions to begin to address the risks and take advantage of the opportunities they present. These are:

Monitor and analyze markets and macro data to successfully anticipate changes and sufficiently respond to
1.

any development on these material topics, while continuing to provide more and varied choices to our
customers;
Provide company leaders and managers with more opportunities to be exposed to the external environment
2.

concerning material ESG impacts, and receive proper training to use the information and knowledge in their
decision-making during planning and day-to-day operations;
Provide adequate support to the human resources department to be able to continuously recruit, train, and
3.

deploy excellent personnel;

Strengthen relationships with a strong core of suppliers that can be relied on to deliver up-to-date, relevant,
4.

and specifications-compliant products cost-effectively; and

Provide sufficient lead time in our construction projects.
5.

We look forward to improving our understanding and responses as we further embed sustainability into our
strategy and operations. Thus we commit to the following next steps for a fuller picture of our sustainability
journey ahead:

Include other stakeholder groups using existing touch points (e.g., customer management system) and
1.

separate engagements for a 360-degree view of our impacts, risks, and opportunities in time for the next
report in 2021;
Establish a regular materiality review every 2 to 3 years under the governance of senior management; and
2.

Develop internal capacity to apply learnings from the materiality assessment in areas of our business and
3.

begin to measure our performance on these material topics.

4
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93
94
95
 ECONOMIC DATA
Becoming the Preferred Partner: Our Management
Economic Performance
Approach
Direct economic value generated and distributed ((in Php)

Wilcon’s leadership in the home improvement and construction

Direct economic value generated 24,938,844,778
retail space is founded on its vision to become the preferred
(Revenue)
company in the industry for all its key stakeholders. We do this
by differentiating our business, our product offerings, and our
Direct economic value distributed
services through excellence, trustworthiness, and reliability.

Operating costs We understand that we are in the business of offering

5,395,669,570
A.

innovative solutions. Thus we have a strong and exclusive

B. Employee wages and benefits lineup of quality, value-priced in-house brands, as well as
1,025,194,474
renowned international and local brands that meet our
C. Payments to suppliers, other customers’ evolving needs. By being attuned and responsive to
operating costs
24,860,597,137 the accelerating changes in customer behavior and retail
trends, we have revolutionized the home improvement and
D. Dividends given to stockholders and
construction supply industry in the Philippines, taking it beyond
interest payments to loan providers
“hardware-store” types to well-designed retail spaces and
655,956,975
customer-centric business practices that enhance the customer
E. Taxes given to government shopping experience.
1,461,032,672

F. Investments to community
11,676,935

No. 1 57 425 730,458

Home improvement/
Stores
construction retail Suppliers Members of Wilcon’s loyalty & rewards program
nationwide
space

Three-year Growth Strategy (2017 - 2019) and Goals Baseline 2018 2019
(2017)

Expand store network in fast growing cities, solidify presence in 41 51 57

existing markets

Focus on continuous expansion of in-house exclusive brands 44.6% 46.9% 49.5%

Continuous increase in comparable/same store sales 6.0% 8.0% 5.2%

Consistent double digit net sales growth rate 11.2% 18.6% 16.3%

Working with Sustainable Suppliers

Wilcon’s business success is built on our continuing capacity to source and sell the appropriate mix of products that meet our stringent quality
standards and satisfy customers’ preferences. To help deliver our mission of sustainable homes and buildings, Wilcon proactively supports suppliers
that have a sustainability agenda or sustainable products in their portfolio and promotes those that offer more eco-solutions to our customers in our
marketing activities. We have dedicated store shelves for green products and regularly train our salespeople to help our customers select home
improvement and construction supply solutions that deliver environment-friendly benefits, which has become a customer priority.

During our materiality assessment, we engaged with a diverse range of international and local suppliers of different sizes. We did this to begin the
conversation on a sustainable procurement program to understand its potential impacts on them and develop an approach that will manage transition
and create value for both Wilcon and its partners. We look forward to reporting on this material aspect of our operations in greater detail in our next
report.

96
ECONOMIC DATA

Highlight: Committing to Responsible Business

Our ability to deliver our financial growth target depends on responsible and ethical
Corporate Governance business practices. Corporate governance protects shareholder value and promotes
transparency and accountability at the highest level of our business. They also protect
Seminar Photo
our leadership position in the sector. In this light, the company has revised its Manual on
Corporate Governance in accordance the SEC’s mandate to submit a new manual in
accordance with its Code of Corporate Governance for Publicly Listed Companies.

Similarly, we have a Code of Business Conduct and Ethics that guides Wilcon’s directors,
officers, and employees when dealing with our various stakeholders throughout the
business. We have a zero-tolerance approach to bribery and corruption as reflected in
Annual Stockholders’ our Anti-Bribery and Anti-Corruption Policy, which outlines in clear detail what
constitutes bribery and corruption, how to raise concerns, monitoring and review
Meeting Photo
systems including internal controls by the review committee, and the administration of
penalties. The policy applies to all Wilcon employees and relevant third parties in all
areas where we operate.

Wilcon also has a Related Party Transactions Charter and Committee to review and
ensure proper oversight of all our material related-party transactions (RPT), which we
define as RPTs that amount to 10% or higher of the company’s total assets based on its
latest audited financial statement. The committee promotes fairness, transparency, and
Photo signing independent reviews and audits, and ensures against conflicts of interest and
misappropriation of resources, among others, to protect the long-term interest of our
shareholders and the reputation of the company. The Committee consists of three
independent directors and conducts an annual review of its performance.

9
97
 ENVIRONMENT DATA

Environment Performance

Energy consumption within the organization (in kWh) Did you know?
Wilcon designed their buildings to maximize
Energy consumption (renewable natural light, only turning on lights in the
1,514,227.66 afternoon.
sources)

Energy consumption (electricity) 54,709,692.84

Energy reduction of energy consumption (in kWh)

Energy reduction (electricity) 1,514, 227.66 Shift towards renewables: solar

energy
39,876.24
Air emission disclosures (in Tonnes CO2e)
Target: almost half of energy mix to
come from solar
Scope 1 GHG emissions 912.01 GHG Emission

Scope 2 GHG emissions 38,964.24 Improving Environmental Performance: Our

Management Approach
Total GHG emission 39,876.24
Wilcon recognizes our growth and expansion targets translate
to more impacts on the environment, specifically in terms of
Water consumption within the organization (in CBM)
resource use, waste generation, and emissions from
construction, operations and logistics. We have updated our
Water withdrawal 162,057
mission and vision so that we can begin the process of
developing an enterprise-wide environmental policy and
Water consumption 162,057
formalizing the strategic environmental initiatives we have
been undertaking over the years. This allows us to establish a
Water recycled and reused 0.00
baseline, begin monitoring and evaluating our performance,
and eventually adopt and report on science-based targets.
Solid and hazardous waste generated (in kg)
Energy consumption and the resultant emissions from our
Recyclable (papers & scraps) 5,040 operations are at the core of our environmental practices,

Not collected in with a strong focus on the use of renewable energy and
Landfilled
2019 battery technology in our branches nationwide. Partnerships
with sustainable suppliers and market shaping are also
Hazardous waste generated 3,780 critical steps to take so that we expand the reach of our
impacts beyond the branches and enable more sustainable
Not collected in
Hazardous waste transported living for our customers.
2019

Environmental compliance Through a more deliberate environment agenda, we look

forward to improving efficiencies in our operations for
Monetary fines for non-compliance productivity and cost savings, taking advantage of
285,000 opportunities in innovations in packaging and resource use,
(Php)
while addressing actual and potential negative impacts of our
No. of monetary sanctions for operations on our immediate environments and the planet.
0 We commit to reporting further developments on this,
non-compliance
including the training and development of employees as well
No. of cases resolved through dispute as the governance of this important aspect of our business in
0 the next report.
resolution mechanism
10
98
ENVIRONMENT DATA
Shaping the Market Towards Green Highlight: Working on Waste
Solutions
We generate minimal waste in our stores and partner
Customers are becoming more conscious about with local government units for the sorting of any
the impacts of their lifestyles. Wilcon has been solid waste materials we generate. We also have
steadily expanding the green products it offers partner facilities to treat our hazardous waste such as
on its shelves to address this demand. The
broken bulbs and other waste like used oils. We have
following are some of the sustainability features
a take-back program with several suppliers so that
we highlight to make it easy for our customers to
they can recycle or repurpose inventory that do not
build and live better for the planet.
meet our quality standards or get inadvertently
damaged and rejected to prevent them from ending
Water-saving fixtures: low flow, dual flush up in our landfills.
Energy-efficient lighting: lower consumption, more light,
longer life
Clean-air paint products: less polluting, no unpleasant Broken tiles are recycled as raw materials
smell Rejected cement boards are sent back and
Circular economy: wood from renewable forests, recycled turned into recycled input
materials Paints are reprocessed to prevent
obsolescence

We also sponsor, participate in, and mount various events in

partnership with architects and interior designers to promote
sustainable solutions in construction and home improvement.
These events allow us to share the latest trends, best practices, and
innovative solutions on sustainable design and construction. We
engage with these industry professionals regularly because they
help promote and contribute to environment-friendly, low-impact
living, not only among their clients but a broader public. A shift in Highlight: Greening Our Branches
customer consciousness also means that people look to architects
and designers as experts who are able to translate their desire for a Our stores, because of their big formats, have intense
more sustainable life into an actual blueprint or plan. In line with energy requirements. To promote greater cost savings
this thrust, we supported the following events in 2019: while minimizing our carbon footprint, Wilcon has started
to roll out solar power solutions in 2016, including
•Green Architecture Advocacy Philippines’ 16th Green Forum where renewable energy into the energy mix of all our branches.
GreenAP engaged business leaders and professionals from relevant
We also use high-volume low-speed fans to minimize the
industries as well as the general public to study and adopt
use of air-conditioning while still making the branches
sustainable practices in design, construction, operations, and
comfortable for our customers and our staff. At the same
maintenance;
time, our stores are designed to bring in as much natural
•Philippine School for Interior Design’s HUGIS ATBP (Homes Using light as possible and use forklifts that run on batteries
Geometrically Inspired Spaces for Alternative Types of Built Places) rather than diesel. Below are the highlights of several
Exhibition, which showcased interior design solutions for in-store initiatives that make our operations more
alternative housing such as the use of materials that are environment-friendly.
eco-friendly, sustainable, natural, and indigenous; and
● 100% of branches to include solar power by 2023
•Philippine Institute of Interior Designers’ Asia Interior Design ● 5 branches with solar power systems
Institute Association International Students Workshop, which ● 27 branches for installation of solar power
gathered Asian interior design students and country professional systems by 2020
representatives in a workshop that focused on solutions that
challenge global, social, environmental and cultural status quos.

11
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 SOCIAL DATA
Employee Data 47% 53%
Female Male
Employee data Female Male employee employee

Employees by gender 1266 1426 50:50 Female:Male

Employee in Key
Employee benefits (% who Management Positions
Female Male
availed)
Developing Our People: Our Management Approach
SSS 13.48% 17.02%
In this period of continuous expansion and ambitious targets,
PhilHealth 1.15% 0.63% Wilcon is committed to creating an environment that respects
the dignity of our employees, cultivates their knowledge and
Pag-ibig 15.02% 20.01% talent, and empowers them to be the best they can be
Parental leaves: through continuous career and development opportunities
available to everyone year-round. We have a strong
Maternity / Paternity Leave 7.64% 12.08 recruitment, selection, training, and deployment program
with targets and metrics to address the pool of talent needed
Solo Parent 96.43% 3.57%
for our growth, including outsourced floor staff and
Magna Carta 0.36% promo-merchandisers at the stores.

Vacation leaves 39.28% 46.98%

Central to our vision for our employees is our compensation
Sick leaves 6.02% 4.57% and benefits program and Work Life Integration Program,
both of which protect and promote our employees’
Medical benefits (aside from
advancement, productivity, fair treatment, physical and
PhilHealth) 21.33 19.75
mental health, safety, and well-being. Apart from statutory
Housing assistance (aside from benefits, we also provide company-initiated benefits that are
Pag-ibig) 0.00% 0.00% not required by law such as allowances and subsidies,
Retirement fund (aside from different types of insurance as well as incentives. We do this
because it is management’s responsibility to ensure duty of
SSS) 0.00% 0.08%
care and dignity of person, and maintain a culture of
Further education support 0.00% 0.00% compassion all throughout our operations.
Company stocks option 0.00% 0.00%
Because we are a large company with a network of 57
Telecommuting 0.00% 0.00%
branches nationwide as of 2019, it is important for employee
Flexible-working hours 67.53% 32.47% development and well-being to be cascaded to all levels.
Empowerment is key, especially down the line, and our
Employee training and
Female Male Human Resources department works with operations
development
managers at the branch level who are regularly trained in
human resources principles and practices, where they have
Total training hours provided 80 56
the power to make decisions on matters and/or grievances
concerning the staff, customers, and suppliers, as well as
Ave. training hours provided 11.42 11.2
incidents concerning occupational health and safety and
ethical practices. We have voice mechanisms that allow for
Labor Management Relations
daily communication between individuals and across
different functions, including a whistleblower policy and
% of employees covered in CBA 29% grievance mechanisms for our labor unions.

Number of consultations conducted with

employees concerning employee-related 4
policies

12
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SOCIAL DATA

Workplace conditions, labor 5.83% 54% 0

Female Male
standards, and human rights
Covered by Employees
Safe Man-Hours 136 205 Attrition
OHSAS from IP

No. of work-related injuries* 7 56

Did you know?
No. of work-related fatalities 0 0
100% of store leadership and 95% enterprise-wide of
management of Wilcon grew organically from the ranks.
No. of work related ill-health 0 0

No. of safety drills 392

Highlight: Prioritizing Health and Safety
Labor Laws and Human Rights
Wilcon invests in creating safe stores and working spaces.
We understand that home improvement and construction
supplies stores, with their large and bulky moveable items,
No. of legal actions or employee
grievances involving forced or child 0 machine-powered lifts, and constant foot traffic, can pose
labor safety risks on our floor staff and customers. The following
initiatives help us minimize hazards and prevent injuries at
Forced labor (y/n) Y the branches:

Child labor (y/n) Y A health and safety governance structure consisting of

●

occupational health and safety officers and pollution

Human rights (y/n) Y officers;
Safety assessment for product displays and regular
●

Supply Chain Management Does Wilcon consider checkup on equipment and stocks for safety and
the following when maintenance;
accrediting suppliers Use of caution ropes and signages for warning zones;
●

Procedures for immediate action should accidents occur

●

and incident reporting;

Personal protective equipment when constructing and
Environmental Performance Y
●

installing solar panels; and

Review and requirement of safety policies among
Forced labor Y
●

contractors.
Child labor Y
At the corporate level, we have trained first aiders and a
company doctor who is available for daily and monthly
Human rights Y
checkups. Our company’s occupational health and safety
Bribery and corruption Y manual is based on the Department of Labor and
Employment’s requirements. To minimize the stresses on
*Minor injuries requiring basic first aid treatment only. 0 our employees associated with the heavy traffic in the
hospitalized or confined incidences metropolis, we now offer a compressed workweek with
flexible working hours. We also have a private lactation
area for breastfeeding mothers in the workplace.

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 SOCIAL DATA

<Photos - 2019 sales kick off, trainings>

Highlight: Learning Continuous Improvement

Continuous training is available to all employees to provide them the opportunity to lead and excel in the workplace and
remain enthusiastic about delivering superior solutions. We are proud of the fact that 100% of store leadership and 95%
enterprise-wide of management grew organically from the ranks.

We identify and develop high-potential employees into future company leaders through structured training programs on
leadership and management, soft and technical skills, sales, marketing, customer service skills, and the core values that
are important to Wilcon. We have functional on-the-job learning as well as formal training sessions, including 23 technical
training modules that our employees can access anytime using our e-learning platform.

We understand that labor contracting is a key risk in the fast-paced and competitive retail sector, as such we do not use
contractual labor in our business. We do have outsourced manpower such as independent contractors hired on a per-need
basis and promo-merchandisers, whom we include in our strategic training activities so that they are able to grow and
upgrade their skills during their assignment at Wilcon, improving their chances at better job opportunities. These include
regular meetings and talks with security and staff on the floor, education sessions on how to market products in
collaboration with suppliers, and product orientations that focus not only on the features but also the benefits so that they
can emphasize our products’ value for money, especially those with environment-friendly features.

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SOCIAL DATA
Ensuring Customer Satisfaction and Service Excellence: Our
Customer Management Management Approach

Customer Satisfaction Score Customer behavior and preferences are shifting at an unprecedented
pace, hastened by rapid technological innovations, growing
environmental and social pressures, consolidation of competition, and
Customer Survey n/a
increasing regulation. Our ability to maintain our status as industry
leader and preferred partner depends on a strong commitment to
Health & Safety Quantity deliver products and solutions of superior quality and provide
excellent and reliable service to our customers consistently.
No. of substantiated 14
complaints on products or We have a strong track record of anticipating the needs of the market,
services health and safety and sourcing and developing products that meet these needs,
allowing us to evolve over the past four decades. We were the first
home improvement and construction supply store in the country to
No. of complaints addressed 14
improve customer experience in our branches, departing from the
traditional “hardware” type of stores and designing them to provide a
Marketing & Labeling Quantity comfortable atmosphere that enhances the shopping experience and
to foster satisfaction and loyalty. Wilcon was also the first to
No. of substantiated 3 proactively offer and highlight more sustainable products and
complaints on marketing & solutions. In 2019, Wilcon launched its online shopping platform to
labelling cater to customer convenience and to provide a seamless shopping
experience, integrating both our physical and digital presence. Such
No. of complaints addressed 3 pioneering initiatives show that we are well-positioned to adapt to the
changing times, and we expect this sustainability agenda to help us
manage the transition better.
Customer Privacy Quantity
Innovation, customer satisfaction, and service excellence are the
No. of substantiated 0 values that define our Customer Relationship Management (CRM)
complaints on customer program. Our customers range from middle-income and high-income
privacy
households to independent contractors and project developers. We
have a CRM strategy with target , and monitoring and evaluation
No. of complaints addressed 0 mechanisms. This includes a customer service platform available on
our website, where customers can send queries, suggestions,
comments or complaints.
No. of customers, users and 0
account holders whose
information is used for Our recent rapid expansion nationwide demonstrates our ability to
secondary purposes bring our products to different markets using innovative marketing
strategies developed by an in-house marketing team. We have policies
and procedures on advertising, marketing and communication that
Data Security Quantity guide the campaigns and promotions of brands and products, our
interactions with various media outlets, and collaborations with
No. of data breaches, including 0 industry professionals, academe, and resource persons from relevant
leaks, thefts and losses of data institutions. These policies and procedures seek to ensure integrity
with every interaction. To further strengthen brand awareness and
visibility as well as our reputation as pioneer and industry leader, we
participate in national and regional exhibits and conventions on retail,
construction, and home improvement.

15
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 SOCIAL DATA
Our Broad Range of Products: Fit For Every Need

We have over 2000 brands and products across different product categories translating to 48,406 SKUs that
make it easy and convenient for our customers to find their home improvement and construction needs
under just one roof.
Product image to
Plumbing and sanitary wares (bath and shower mixers, bath fillers, faucets, shower, water
systems, bathtubs, bidet, bowl, lavatory, pedestal, shower enclosure, urinal, water closet and
highlight 1
other accessories)

Hardware and tools products (door essentials, hand tools and hardware accessories, pipes,
sundries, power tools and hand tools)

Tiles/Flooring (locally made and imported tiles in various sizes and types such as ceramic, glass Product image to
block, porcelain, and vinyl)
highlight 2
Electrical and lighting (electrical accessories and supplies, lamps, wiring devices, LED and
lights)

Furniture, furnishings and houseware (furniture products found in the bedroom, dining, kitten,
living room, office, and outdoor; decorative items, organizers, wall hang decors, curtains, and
blinds) Product image to
Paints (a wide range of paints for different surface types)
highlight 3

Appliances (air coolers, air conditioners, electric fans, entertainment appliances, kitchen
appliances, washing machine, and vacuum cleaner)

Building materials (building decors and supplies, ceiling and wall, floor and roofing)

Award-winning Customer Service

Our customers are well informed, know what they want, and prioritize speedy and convenient shopping and transactions. As such, we make sure our
people on the floor are well trained and knowledgeable when it comes to all our products and services, including the latest design trends and consumer
behavior so that they can be conversant, offering informed options and helping them find satisfactory solutions. We also work with our suppliers who
extend customer support to help with installation and repairs.

To meet the increasing demand for faster, seamless, and more customer-oriented shopping, we use technology in various ways, allowing us to add value to
the experience of our customers and industry partners. We have an online store for a selected range of products, mostly DIY items, decors, and basic
household items with different payment options, a Wilcon Loyalty Mobile App that allows customers to earn, check, and convert points to rewards, and
decentralized delivery centers for faster delivery and greater efficiency. We also offer Design Hub, a service available in all our depots, which allows
customers to create 3D layouts of their desired interiors through a computer software along with a product list and cost estimates.

Across such platforms, we protect the data entrusted to us by our customers, backed by our policy on data privacy and information systems that manage
and maintain all customer information (whether collected electronically and physically), and ensure that only authorized Wilcon personnel have access to
these data.

For industry professionals, we have the ABCDE Lounge, launched in 2015, which Architects, Builders, Contractors, Designers, and Engineers can use to meet
with their clients and fellow professionals, conceptualize design and construction projects, and save time by allowing them to immediately browse through
Wilcon’s extensive product catalog and compare their options with ease. The lounge is designed to be both comfortable, professional, and strategically
located. At present the lounge can be found in 36 Wilcon branches and has received positive feedback from its users. We expect to increase the number of
ABCDE Lounges to 45 by 2020.

Given these customer-centered initiatives, we were recognized by the Federation of Asia-Pacific Retailers Association (FAPRA) with the International Award
for Excellence in Customer Service in 2019. An international body, FAPRA recognizes individuals, companies, and associations for their outstanding
achievements in retail, specifically in five categories: most innovative retail concept, best marketing campaign, green retailer, best effort in retail employee
training and customer service excellence.

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COMMUNITY DATA
Relationship with the community

Wilcon extends financial assistance to Eastern Regional

Organization: for Planning and Human Settlements
(EAROPH) Philippines with their efforts to promote a better
understanding of Human Settlements and encourage
excellence in planning, development and management to
improve the quality of life and sustainability of human
settlements in their 2nd National Convention.

i-Love Foundation: WDI donated 3 Million worth of Wilcon items and Gift Certificates

Donation to St. John Bosco Church Restroom

WDI and Grohe donated 110K worth of products for St. John Don Bosco Church for their restroom
project

Donation for Wilcon Foundation

WDI donated PhP500K to Wilcon Foundation during 5th Wilcon Cup

Truck Donation
WDI donated a Truck to Quezon City Hall DPOS compound

Highlight: Improving Local Communities

As a home improvement and construction supplies retailer, our entry into provincial centers nationwide can mean that the local
economies in these areas are primed for greater activity, which can indirectly lead to more infrastructure and more job
opportunities. Our stakeholders agree that our expansion has the potential to decentralize growth and development and bring it
outside the traditional urban centers.

At the same time, our stakeholders shared with us the growing need for more skilled workers in construction, which can have an
impact on our ability to expand and fulfill our target number of branches. Similarly, any manpower shortage that our suppliers
experience can impact on their ability to deliver products that we need for our catalog.

Currently Wilcon channels its community development programs through the Wilcon Builders’ Foundation to help address the
decreasing availability of skilled construction workforce. We have a technical school in Montalban with three strategic programs
accredited by the government’s Technical Education and Skills Development Authority (TESDA), specifically on masonry, carpentry,
and electrical installation and maintenance. Because we target indigent communities, we offer scholarships that require no bonds
and then provide them with opportunities for on-the-job training with our suppliers. In 2019, 92% of our 373 graduates received
TESDA certification and 69% are already employed.

“I feel very blessed to have a decent job with a well-known company,” said Orly Recosana, who was able to receive free training in
2018 and was later absorbed by Wilcon because he demonstrated hard work, discipline, values, and an eagerness to learn. Prior to
taking Wilcon’s training course, Orly would be in and out of jobs back in Ormoc, Leyte. Other technical-vocational graduates find
work in leading corporations like Mark Gyver Bulatao who is now a technician with a telecommunications service provider.

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 Appendix A: List of operations location
Branch Name Branch Location
1 ALABANG D01 8003 REAL ST., ALABANG ZAPOTE RD., ALMANZA UNO, LAS PIÑAS CITY
2 BALINTAWAK D02 1274 EDSA A. SAMSON, QUEZON CITY
3 LIBIS D03 90 E. RODRIGUEZ JR. AVE., BRGY. UGONG NORTE, DISTRICT 3, QUEZON CITY
4 MAKATI D05 2212 CHINO ROCES AVE., SAN LORENZO, MAKATI CITY
5 QUIRINO D06 L119 C-1 MINDANAO AVE., TALIPAPA, QUEZON CITY
L1 B29 ALABANG ZAPOTE RD. COR. BRIDGEWAY AVE., FILINVEST COPORATE
6 FILINVEST D07 CITY, ALABANG, MUNTINLUPA CITY
7 MEXICO D08 GAPAN-OLONGAPO ROAD, LAGUNDI, MEXICO, PAMPANGA
8 SUCAT D09 DR. A. SANTOS AVENUE, SAN DIONISIO, PARAÑAQUE CITY
9 FAIRVIEW D10 16 COMMONWEALTH AVE., BRGY. COMMONWEALTH, QUEZON CITY
10 TARLAC D11 MC ARTHUR HIGHWAY, SAN RAFAEL, TARLAC CITY
11 DAU D12 MC ARTHUR HI-WAY, DAU, MABALACAT, PAMPANGA
FREEWAY STRIP OLONGAPO-GAPAN ROAD, DOLORES CITY OF SAN FERNANDO,
12 SAN FERNANDO D15 PAMPANGA
13 CALAMBA D16 NATIONAL ROAD, BRGY. HALANG, CALAMBA CITY, LAGUNA
14 BATANGAS D17 LOT 2687-A DIVERSION ROAD, ALANGILAN, BATANGAS CITY
15 TAYTAY D18 MANILA EAST ROAD, BRGY. SAN JUAN, TAYTAY, RIZAL
16 ANTIPOLO D19 MARCOS HIGHWAY, BRGY. MAYAMOT, ANTIPOLO CITY, RIZAL
17 BALIUAG D20 KM. 48 DRT HIGHWAY, BRGY. TARCAN, BALIWAG, BULACAN
18 DASMARIÑAS D21 GOVERNOR'S DRIVE, PALIPARAN 1, DASMARIÑAS CITY, CAVITE
19 LAOAG D22 AIRPORT ROAD, BRGY. 50, BUTTONG, LAOAG CITY
20 MANDAUE D23 U.N. AVENUE, UMAPAD, MANDAUE CITY, CEBU
21 TALISAY D24 LOT 2359, LAWA-AN II, TALISAY CITY, CEBU
22 KAWIT D25 CENTENNIAL ROAD, MAGDALO, PUTOL, KAWIT, CAVITE
23 VALENZUELA D26 292 MC ARTHUR HI-WAY, DALANDANAN, VALENZUELA CITY
DOÑA MARIA VILLAGE PHASE 2, BRGY. BAGONG BAYAN, SAN PABLO CITY,
24 SAN PABLO D27 LAGUNA
25 VILLASIS D28 NATIONAL HIGHWAY, BRGY. BACAG, VILLASIS, PANGASINAN
26 QUEZON AVE. D29 24 QUEZON AVE., LOURDES, QUEZON CITY
27 DAVAO D30 MC ARTHUR HIGHWAY, MATINA, DAVAO CITY
28 IT HUB D31 PASONG TAMO EXTENSION, BRGY. BANGKAL, MAKATI CITY
29 MOLINO D32 BACOOR BOULEVARD, BRGY. MAMBOG IV, CITY OF BACOOR
30 STA. ROSA D33 TAGAYTAY ROAD, BRGY. PULONG, STA. CRUZ, STA. ROSA, LAGUNA
31 CDO D34 ZONE 5 , BRGY. CUGMAN, CAGAYAN DE ORO CITY
32 BACOLOD D35 MATAB-ANG TALISAY CITY, NEGROS OCCIDENTAL
33 BUTUAN D36 BRGY. BAAN, KM. 3, BUTUAN CITY
LOT 2040-C-3-B & Lot 2040-C-4, SUMACAB ESTE, MAHARLIKA HIGHWAY,
34 CABANATUAN D37 PUROK 6, SUMACAB ESTE, CABANATUAN CITY
35 ILOILO D38 NORTH DIVERSION ROAD, BRGY. DUNGON-B, JARO, ILOILO CITY
18
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Appendix A: List of operations location (cont.)

Branch Name Branch Location

36 TACLOBAN D39 PUROK SANTOL, BRGY 80 MARASBARAS, TACLOBAN CITY, LEYTE
37 SILANG D40 PUROK 9, BRGY. LALAAN II, SILANG, CAVITE CITY
38 ZAMBOANGA D41 LOT 2235C I-A BOALAN, ZAMBOANGA CITY
39 NAGA D42 BRGY. DEL ROSARIO, NAGA CITY
40 LIPA D43 BRGY. BUGTONG NA PULO, LIPA BATANGAS

41 PANACAN, DAVAO D45 BUNAWAN: BRGY. PANACAN VALLE VERDE, DAVAO CITY
42 TAYABAS D46 BRGY. ISABANG, TAYABAS QUEZON
43 GEN. SAN. D47 PALEN, BRGY. LABANGAL, GENERAL SANTOS CITY

44 PUERTO PRINCESA D48 BRGY. SICSICAN, PUERTO PRINCESA CITY, PALAWAN

45 GENERAL TRIAS D49 BRGY. SAN FRANCISCO, GENERAL TRIAS CITY, CAVITE

46 STA. BARBARA, ILOILO D50 LOT 506B BRGY. BOLONG OESTE, STA. BARBARA, ILOILO
OPOL, MISAMIS
47 ORIENTAL D51 ZONE 2A BRGY. BARRA, OPOL, MISAMIS ORIENTAL

48 STO. TOMAS, BATANGAS D52 MAHARLIKA HIGHWAY, BRGY. STA. ANASTACIA, STO. TOMAS, BATANGAS
49 ANTIPOLO II D53 LOT 2-A BRGY. SAN ISIDRO CIRCUMFERENTIAL RD. ANTIPOLO CITY
50 IGUIG, CAGAYAN D56 BRGY. BAYO, IGUIG, CAGAYAN VALLEY RD.
LG003/LG004 LOWER GRD FLR. ALIMALL II, ARANETA CENTER, SOCORRO, D3,
51 ALIMALL HO2 CUBAO, QUEZON CITY
52 WCC HO3 ANCHOR 1, 121 VISAYAS AVE., BAHAY TORO, QUEZON CITY
53 STA. MESA HO5 425 PIÑA AVE., BRGY. 585 ZONE 057, SAMPALOC, MANILA
54 MINDANAO AVE. HO6 L-5 B-7 MINDANAO AVE., BAHAY TORO I, QUEZON CITY
55 MUÑOZ HO7 1066 EDSA, BAHAY TORO, QUEZON CITY
56 PASAY HO8 16 C JOSE ST. COR. EDSA, MALIBAY, PASAY CITY
GROUND FLOOR UNIT A25-A26, FESTIVE WALK MALL, ILOILO BUSINESS PARK,
57 ILOILO HO9 MANDURRIAO , ILOILO CITY

19

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