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Globe to launch 5G network in June

GLOBE Telecom, Inc. is preparing to launch its fifth-generation (5G) services before the end of the first half.

“One of the most exciting things that telcos globally are looking at is 5G technology… We are launching 5G for the home in June this year,” Ernest L. Cu, president and chief executive officer of Globe, said during the company’s annual stockholders’ meeting Tuesday.

The Ayala-led company is partnering with Huawei Technologies Co., Ltd. for the development of its 5G network, which will be launched through a home broadband service initially.

“5G technology will push adoption of Internet of Things (IoT), which is seen to become a critical engine for future growth for the telco industry… It will also change the way different industries operate and serve their customers, such as the use of safer and more efficient management of cities, smart grid and smart metering for power transmission and distribution, asset management, and advanced medicine,” Mr. Cu said.

“[E]nterprises will also benefit from applications such as connected vehicle fleets, predictive maintenance, factory automation, work force training and field support, and countless other examples,” he added.

Globe earlier said its 5G network would provide broadband speeds to 100 megabits per second (Mbps) from 50 Mbps. It was initially planning to roll out in locations with high density of cell sites such as Metro Manila and other urban centers.

In an interview last November, Mr. Cu told reporters the company wants to go after home services as a use case for its 5G network.

“It’s hard to find a robotic factory in the Philippines, or autonomous vehicles. We are very down to earth in our ambitions. It’s simply fixed wireless access for the home, which is what we’re going to do,” he said.

Globe is earmarking P63 billion for capital expenditures this year to support the growing demand for its data services. In 2018, the telco giant posted a net income of P18.447 billion, 22% higher than in 2017 due to stronger revenues from data-related services. — Denise A. Valdez

SM Prime allots P8B for China expansion

By Arra B. Francia
Senior Reporter

SM Prime Holdings, Inc. is boosting its presence in China, with the investment of up to P8 billion for the construction of a new mall and the expansion of an existing mall.

SM Prime President Jeffrey C. Lim said construction on the company’s eighth China mall, which will span around 80,000 square meters (sq.m.), will start later this year.

“We will start constructing another one within the year, that’s SM Yangzhou,” Mr. Lim told reporters on the sidelines of a media and analyst’s briefing in Pasay City Tuesday.

The listed property developer will be spending about P4 billion over the next two years for SM Yangzhou.

Mr. Lim added the company will also expand SM Xiamen by another 60,000 to 70,000 sq.m., from its current size of 300,000 sq.m. The expansion cost is valued at about P3-4 billion.

“We will start this year but I think it will open in the latter part of next year or 2021,” he said.

Once SM Yangzhou’s construction and SM Xiamen’s expansion are completed, the company will have more than a million square meters in gross leasable area in China.

SM Prime’s other malls are located in Tianjin, Jinjiang, Chengdu, Suzhou, Chongqing, and Zibo.

The company noted that expansion efforts in China slowed in the past two years as it focused on the growing opportunities in the Philippines.

“This is the best time (to expand in China) after the one in Tianjin is well-managed and well organized, we can now move to the next mall. In China, we moved a little bit slower but the sizes of the malls there are very big,” SM Prime Chairman Henry T. Sy, Jr. told reporters in a separate interview.

The investments for China is part of SM Prime’s P80-billion capital expenditure for the year, which will support the expansion of its malls, residential properties, and land banking efforts.

In the Philippines, SM Prime will add four new malls covering 200,000 sq.m. in gross floor area this year. These are SM Center Dagupan in Pangasinan, SM City Olongapo Central in Zambales, SM City Butuan in Caraga, and SM Mindpro Citimall in Zamboanga.

Meanwhile, Mr. Sy said SM Prime is looking at opportunities to expand its mall business to other Asian countries, particularly Vietnam.

“We are land banking not only in China, we are thinking of land banking in other Asian countries also. Like for example, Vietnam,” Mr. Sy said, adding SM Prime could start building malls in other countries within the next two years.

For its residential segment, SM Development Corp. said it plans to launch 19,000 to 25,000 units in Metro Manila and in the provinces.

The group will also unveil the National University Tower, a university-office building located inside the Mall of Asia complex, as well as two new hotels in Iloilo and Quezon City under the Park Inn by Radisson brand.

SM Prime’s net income jumped 17% to P32.2 billion in 2018, following a 14% increase in consolidated revenues to P104.1 billion.

Shares in SM Prime climbed 1.78% or 70 centavos to close at P39.95 each at the stock exchange on Tuesday.

PhilWeb buys 3 gaming sites

PHILWEB Corp. has acquired three gaming sites in exchange for shares in the company and a total of P18 million in cash.

In a disclosure to the stock exchange on Tuesday, the listed gaming firm said its subsidiary purchased a Philippine Amusement and Gaming Corp. (PAGCOR) Bingo Games site in Caloocan. The site was bought for P13 million, in addition to P10.74 million worth of PhilWeb shares consisting of 3.68 million priced at P2.92 each,

Another PhilWeb subsidiary, BigGame, Inc., also acquired a PAGCOR e-games site in Taytay, Rizal and another in Rodriguez, Rizal. The two sites were purchased for P5 million plus 735,294 PhilWeb shares worth a total of P2.15 million.

The three gaming sites were previously owned by Triple 8 Amusement and Development Corp.

This will be added to the 63 gaming locations that PhilWeb had by the end of 2018.

Philweb booked a net loss attributable to the parent of P77.58 million in 2018, lower than its attributable loss of P293.27 million in the year before. This came on the back of P366.36 million worth of revenues, more than double what it generated in 2017.

The company has been recovering, following the shutdown of its operations in 2016, when PAGCOR declined to renew its license. It was able to resume operations only in December 2017, with an initial 16 electronic gaming locations. It was able to resume full operations in March 2018.

While trimming its net loss in 2018, the company also noted it was able to book positive cash flow for the first time in three years. Earnings before income, taxation, depreciation, and amortization stood at P9 million, compared to P152 million in negative cash flow in 2017.

PhilWeb Chairman and Chief Executive Officer Gregorio Ma. Araneta III said they are working on bringing the company back to its former profitability levels.

Shares in PhilWeb jumped 2.74% or eight centavos to close at P3 each at the stock exchange on Tuesday. — Arra B. Francia

Mall operators conduct safety check after quake

MAJOR mall operators in the country said they have conducted safety checks to ensure the safety of their customers following the magnitude 6.1 earthquake that hit parts of Luzon Monday afternoon.

SM Prime Holdings, Inc. said its shopping malls did not suffer any major impact during the earthquake.

“I think we’re quite okay…We didn’t have much except for some plaster cracks or popping up of tiles. These are learning curves that we will have to start doing better research on. Outside of that, we stood up quite well,” SM Prime Executive Committee Chairman Hans T. Sy said in a briefing after the company’s annual shareholders’ meeting in Pasay City yesterday.

Mr. Sy noted that their emergency response teams were able to manage and control the evacuation efforts for their customers during the incident.

Ayala Land, Inc. said they continue to monitor their malls’ conditions after the earthquake.

“AyalaMalls continue to conduct preventive maintenance and regular inspections on the structural condition of the building as well as all utilities. This is complemented with various drills conducted regularly to prepare and train both our personnel and merchant partners,” Ayala Malls Operations Head for Luzon Charmaine Bauzon said in a text message.

Ms. Bauzon also said they shut down all facilities and liquefied petroleum gas (LPG) in affected malls immediately after the incident.

Megaworld Corp., meanwhile, said they were watching the structural safety of their properties and no major damages were seen.

“There are no reported major damage in any of our properties. We remain diligent in ensuring the structural safety and integrity of all our developments, including our construction sites,” Megaworld Senior Assistant Vice-President for Public Relations Harold Brian C. Geronimo said via text.

Robinsons Land Corp. suspended operations of Robinsons Place Angeles in Pampanga, the province which sustained the most damage, to give way for property inspections before reopening. It also closed Robinsons Place Tacloban and Robinsons North Tacloban at 2:30 p.m. Tuesday, after a magnitude 6.5 earthquake struck the Visayas region. — Arra B. Francia

RFM’s Q1 revenues jump 11% on higher sales of pasta, milk

RFM Corp. saw its revenues increase by 11% in the first three months of 2019, thanks to higher institutional sales of its flour, bread, pasta, and milk products.

In a statement issued Tuesday, the listed pasta and ice cream maker said revenues hit P3.1 billion in the first quarter of the year.

“We continue to see healthy consumer appetite for our Royal and Fiesta pasta and sauce as well as in our Selecta Milk RTD (ready to drink) for the first three months of the year,” RFM President and Chief Executive Officer Jose Ma. A. Concepcion III said in a statement on Tuesday.

RFM’s flagship brands include Selecta for ice cream and milk, Fiesta and Royal for pasta, and White King for mixes. The company noted that its ice cream unit — typically one of its growth drivers — saw softer sales due to the late observance of Holy Week this year.

“The late Holy Week in April this 2019, compared to March in 2018, softened our ice cream unit’s usual strong growth rate in the first quarter, but April sales are quite robust. Flour and institutional bread sales are growing at double-digit rates as well.”

The company did not disclose its first quarter net income figure as of this writing.

Mr. Concepcion noted that they continue to monitor the prices of raw materials such as sugar, packaging, milk, and wheat.

“Hopefully, we see better pricing in these items in the coming months so manufacturers like RFM can sustain strong earnings growth,” he said, adding that the stronger peso this time around compared to the latter part of 2018 should help reduce input costs.

Incorporated in 1957, RFM also engages in non-food businesses, including barging services and leasing of commercial or office spaces for its operating divisions.

Shares in RFM rose by a centavo or 0.21% to close at P4.80 each at the stock exchange on Tuesday. — Arra B. Francia

Nemi Miranda’s pure imagination

“I LOOKED at people, I try to imagine them, and draw them from memory. I never use pictures because I hate pictures,” painter Nemi R. Miranda, Jr. said about his creative process. “What you see my painting is the product of my soul.”

The products of his soul are currently on view at the Conrad Manila, which, in partnership with the Department of Tourism (DoT) Region IV-A Calabarzon, launched Nemi Miranda: Visual Diary in Pure Imagination, the 8th exhibit of its Of Art and Wine series, at the hotel’s Gallery C.

Mr. Miranda earned his Bachelor of Fine Arts degree at the University of Santo Tomas and went on to found the Angono Ateliers Association in 1975. He then set up the Nemiranda Art House Family Museum to promote art in his hometown.

Known as the “Father of Imaginative Figurism,” Mr. Miranda observes people and their surroundings in his hometown of Angono, Rizal as inspiration for his artworks. After a 50-year career, he said that drawing figures “comes very easy” for him, adding that he has mastered the angles and the way the body moves.

The Conrad exhibit features works depicting Philippine folklore, everyday life, and historical events with themes of love, trials and successes, and the environment.

Growing up, Mr. Miranda was influenced by the murals of Carlos “Botong” Francisco and comics of Francisco V. Coching — both National Artists — which is evident in his works featuring farming, fishing, and historical events.

He was also inspired by the folk tales he was told by his grandparents. “If you tell me a story, I can already imagine the figure and the message I want to implore,” the artist told members of the press during the exhibit’s launch on April 10.

On a contemporary note, for this exhibit Mr. Miranda presents his Homecoming series depicting scenes from the 2017 siege of Marawi. “I want to be a visual historian of my time,” he said.

After a walk through the exhibit, one notes the persistent presence of a bird — which the artist noted is himself. “[When] you see all my paintings, there is a bird. I am the soul inside the painting,” he said.

Nemi Miranda: Visual Diary in Pure Imagination is on view at Gallery C in Conrad Manila until June 10. For further details, call 833-9999, or e-mail conradmanila@conradhotels.com. — Michelle Anne P. Soliman

Lazada aims to offer next-day delivery for L’Oreal by June

SOUTHEAST ASIAN e-commerce giant Lazada Group on Tuesday signed a joint business plan with L’Oreal, as the two companies strengthen their partnership.

Under the plan, L’Oreal will work with Lazada’s warehouses and logistics network to ensure next-day delivery in metro cities by June this year.

The two companies will also pilot consumer engagement tools such as in-app livestreaming. L’Oreal will also launch products exclusively made available to Lazada customers.

“We are confident of creating the leading online beauty destination in Southeast Asia by combining Lazada’s extensive last mile logistics network to bring L’Oreal’s products faster into our customers’ hands. Our partnership today signals our commitment and joint ambition of dominating the Southeast Asian beauty and skincare eCommerce market share by providing the best customer experience. We are very excited for what is to come,” Jing Yin, president of Lazada Group, said in a statement.

Lazada will also implement new search features to ensure L’Oreal products are easily searched on the former’s app.

“Lazada and L’Oreal will collaborate in many areas, from technology, sales and marketing to logistics. Lazada’s technology infrastructure, logistics network and brand engagement capabilities is the gold standard in the industry. Our joint efforts will take us one step closer to creating a true beauty shopping destination on Lazada. We are excited and confident to be part of this journey,” Pierre-Yves, L’Oreal managing director for Southeast Asia, said.

L’Oreal was one of the top-selling brands in makeup, personal care and skincare categories during Lazada’s 7th anniversary sale in March.

In its 2018 annual financial report, L’Oreal reported that e-commerce sales now account for 11% of the group’s worldwide sales.

Lazada, majority owned by China’s Alibaba Group, is present in Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.

BPI Family Savings not keen on merging with parent lender BPI

THE THRIFT BANKING arm of Bank of the Philippine Islands (BPI) is reluctant on merging with its parent bank as it looks to continue taking advantage of the regulator’s smaller reserve requirement for thrift lenders.

BPI Family Savings Bank President Maria Cristina L. Go said in an interview that “it is not yet time” for the lender to merge with its parent bank.

“That’s something we always assess regularly. But as of this time, it’s not yet time to merge BPI Family,” she said. “It would really depend on the economic and regulatory environment.”

The Bangko Sentral ng Pilipinas (BSP) currently requires thrift banks to hold at least eight percent of their deposits, much lower than the 18% requirement on commercial and universal banks — which is considered to be one of the highest in the region.

The lower reserve requirement ratio (RRR) enables savings banks to place a bigger chunk of their funds in loans and investments.

“That gap is quite large and it doesn’t at the moment makes sense to merge because we’re able to leverage on lower reserve requirements,” Ms. Go said.

Ms. Go added that with the lower reserve requirements for thrift banks, BPI Family Savings is able to provide its clients low rates and affordable deposits.

BSP Governor Benjamin E. Diokno earlier said he wants to trim big banks’ RRR, describing it as still “very high.” He also signalled room for a percentage point cut in the ratio “every quarter for the next four quarters.”

In September, Rizal Commercial Banking Corp. (RCBC) announced it is set to absorb its thrift banking unit RCBC Savings Bank to reduce operating costs and consolidate capital. The merger is expected to be completed in the second half of the year.

Meanwhile, Philippine National Bank will also absorb its savings banking subsidiary PNB Savings Bank, widening its exposure to retail and small business clients.

BPI Family Savings was the largest thrift bank in the country in asset terms as of end-September 2018 with P271.52 billion.

The lender expects to post 10-15% loan growth for this year from a “flat” lending book in 2018, driven by housing and auto loans. — Karl Angelo N. Vidal

Contemporary art films the focus in Italian film fest

FOR ITS fourth year, the Moviemov Italian Film Festival is presenting a selection of art films at the Film Development Council of the Philippines (FDCP) Cinematheque in Manila.

The festival opened on April 23 and runs until April 26.

The eight films being shown this week will be introduced by Italian actors, directors, and film critics including actor Lorenzo Richelmy who presented the opening film, Una Questione Privata (2017) by director Paolo e Vittorio.

Mr. Richelmy played Giorgio, one of the persons involved in an ill-fated love triangle set in Italy’s partisan resistance during the Second World War. The film is based on the novel of the same name by Beppe Fenoglio and was presented in the Masters section of the Toronto Film Festival.

Also to be shown in the festival lineup is Il Cratere (2017), directed by Luca Bellino and Silvia Luzi, which tells the story of a frustrated fairground huckster who becomes obsessed with turning his adolescent daughter’s singing talent into a lucrative career.

The film’s directors will be presenting the film which screens on April 25.

Selfie (2019), a documentary by Agostino Ferrente — who will be in attendance during the film’s presentation on Wednesday — is a slice-of-life seen through the lens of two 16-year-olds from Naples. The film will be screened on April 24.

Il Figlio, Manuel (2017) by Dario Albertini, meanwhile, is about a young man who leaves an education center where he was placed after his mother was jailed. The film will be screened on April 24.

Moviemov Italian Film Festival 2
A scene from La Paranza dei Bambini.

The Dreamers (2003) by Bernardo Bertolucci is, a romantic drama based on the novel by Gilbert Adair, The Holy Innocents. Set during the 1968 Paris student riots, it revolves around an American university student in Paris who meets a brother and sister with whom he engages in an erotic triangle. It will be screened on April 25.

Saremo Giovani E Belissimi (2017) by Letizia Lamartire is a film set in the 1990s and follows an 18-year-old singer who keeps singing for 20 years in small town bars while blaming her son for stunting her career.

The film’s star, Federica Sabatini, will present the film during the April 25 screening.

C’e Tempo (2019) by Walter Vetroni, which screens on April 26, is about half-brothers, one a rainbow researcher and the other a young film lover who embark on a journey after meeting each other for the first time after the death of their father.

Troppa Grazia (2018) by Gianni Zanasi is about a woman juggling motherhood with romance and career who suddenly encounters a woman who tells her that the building she’s working on poses hazards. It screens on April 26

Finally, the festival ends its 2019 run with La Paranza dei Bambini (2019) by Claudio Giovanessi, based on the novel Piranhas by Roberto Saviano. The film follows a group of 15-year-old boys from Naples who dream of gaining power and easy money and make their way into a world of crime.

The film won the Silver Bear for Best Screenplay at the 69th Berlin International Film Festival.

The festival runs until April 26 at the FDCP Cinematheque, 855 Kalaw Ave., Ermita, Manila. Entrance is free.

For more information visit www.philippineitalianassociation.org. — Z.B. Chua

Clark airport terminal sustains P30 million worth of damage

THE Department of Transportation (DoTr) is aiming to reopen Clark International Airport today (Wednesday), after the terminal sustained damage after a 6.1-magnitude earthquake hit Luzon Monday afternoon.

“Based on the analysis and evaluation of our tech people, at the earliest we will operate tomorrow (Wednesday), at the latest we will operate on Thursday,” Transportation Secretary Arthur P. Tugade said in a televised media briefing.

Mr. Tugade estimated the airport sustained around P30 million worth of damage.

A magnitude 6.1 earthquake hit parts of Luzon Monday afternoon, damaging the Clark airport and prompting the temporary suspension of its operations.

In a statement, Clark International Airport Corp. said its assessment found airport facilities such as the tower, apron, runways and taxiways “structurally sound.”

“The good news is that the tower can be operated, there was no substantial damage. Wala ring problema sa road surface ng [There are also no problems on the road surface of the] airports,” CIAC President Jaime Alberto C. Melo was quoted as saying.

CIAC said more than 12,000 passengers from 115 international and domestic flights were affected by the closure of the Clark airport until 7:40 p.m. Tuesday.

While the government is yet to confirm when the airport will resume operations, local carriers Philippine Airlines, Cebu Pacific and AirAsia Philippines already announced cancellation of flights to and from Clark scheduled Wednesday.

Meanwhile, the Bases Conversion and Development Authority (BCDA) said the new passenger terminal currently being built at the Clark aiport was not affected by the earthquake, and construction was able to resume Tuesday.

The new terminal building is on track to be completed by mid-2020. — Denise A. Valdez

Robinsons Bank books higher profit but misses guidance

By Karl Angelo N. Vidal
Reporter

ROBINSONS BANK Corp. posted a slightly higher net income in 2018, even as it failed to hit its profit guidance due to higher funding costs.

Based on its annual report posted on the Philippine Dealing System’s website, the Gokongwei-led lender posted a P317.11-million net profit in 2018, up 3.2% from P307.39 million booked a year earlier.

However, Robinsons Bank was not able to hit its P500-million income target for 2018.

“We had lower interest margin due to higher cost of funds in 2018,” Robinsons Bank President and Chief Executive Officer Elfren Antonio S. Sarte said in a text message.

The lender’s net interest margin declined to 3.35% last year from 2017’s 3.5% dragged by a rise in funding costs.

The Bangko Sentral ng Pilipinas (BSP) hiked interest rates by a cumulative 175 basis points in five consecutive meetings last year to quell inflation.

Meanwhile, the lender’s net interest income grew 19.8% to P3.57 billion in 2018 from the P2.98 billion logged the previous year. This was on the back of a growth in its loan portfolio and investment securities.

Loans and receivables totalled P68.41 billion last year, up 18.7% from P57.65 billion a year ago, due to “increase in lending activities.”

Its nonperforming loan (NPL) ratio dropped slightly to 0.82% from 0.83% as the bank continued to review and clean up past due loans. NPL coverage ratio improved to 122.54% from 100.56% in 2017.

Robinsons Bank’s total deposits, on the other hand, stood at P95.01 billion in 2018, 5.6% higher than P89.98 billion recorded a year ago

Meanwhile, net service fee and commission income doubled to P264.68 million last year from the 2017’s P124.76 million.

Trading gains slumped to P18.3 million from P184.89 million in 2017, while net foreign exchange gains grew to P174.4 million from P93.51 million.

Meanwhile, total operating expenses also went up 17.3% to P3.66 billion in 2018 from P3.12 billion the prior year.

Overall, assets of Robinsons Bank were at P121.35 billion in 2018, up 15.7% from P104.91 billion in 2017.

In 2018, the lender’s total capital adequacy ratio and common equity Tier 1 ratio declined to 15% and 14.13%, respectively.

Mr. Sarte previously said the bank is eyeing to conduct an initial public offering (IPO) within four years as part of its plan to scale up operations to become a universal bank.

To be granted unibank status, Robinsons Bank has to beef up its capital to meet the P20-billion requirement set by the BSP, which can be achieved through an IPO, a stock rights offer from its investors, or a strategic partnership.

NCCA holds National Dance Week in Capiz

IN CELEBRATION of National Dance Week, the National Commission for Culture and the Arts (NCCA) – National Committee on Dance will hold the 8th Dance Xchange: The Philippine International Dance Festival on April 26 to 30 in Roxas City, Capiz.

This year’s theme is “Cultural Connectivity through Dance”

National Dance Week is held in relation to International Dance Day (IDD) which is held on April 29. IDD was started in 1982 by the Dance Committee of the International Theater Institute-UNESCO in commemoration of French ballet master Jean-Georges Noverre whose birth date it was. In 1993, President Fidel V. Ramos signed Presidential Proclamation No. 154 declaring the last week of April as National Dance Week. The proclamation states that “there is a need to bring together dancers to demonstrate and realize the function of dance in the society and in the rest of the world.”

“It is my dream for the Philippines to also be a destination for dance,” NCCA National Committee on Dance head Shirley Halili-Cruz said at an April 11 press conference at the NCCA headquarters in Intramuros, Manila.

The Dance Xchange program “aims to enhance knowledge and skills of the dancers, dance teachers, and choreographers on dances of the different countries as creative expression of their culture,” said a press release.

“It’s getting bigger and bigger [every year],” Ms. Halili-Cruz told BusinessWorld shortly after, noting that international dance troupes who had previously participated in Dance Xchange contacted her expressing their interest to return and participate this year. Some local government units around the country have also expressed interest in hosting the program in their cities.

This year, the program will see the participation of 15 international dance troupes including groups from Bangladesh, Iran, Japan, Hong Kong, Indonesia, Russia, and Belgium, as well as 21 local dance troupes from the NCR, Luzon, Visayas, and Mindanao.

LET’S DANCE
During the five-day festival, the activities include an artist forum where dancers, choreographers, and educators will discuss the current state of dance in the Philippines and worldwide; dance workshops where the dance directors of the international and local dance troupes will teach traditional, contemporary, and modern dance; public performances; and an outreach program where free dance workshops will be conducted in the municipalities of Cuartero, Jamindan, Sapian, Pilar, Dumalag, Sigma, and Tapas in Capiz as well as the municipality of Balete in Aklan.

The dance workshops will be held on April 26 at 7:30 a.m. with the registration of participants at the Don Ynocencio A. Del Rosario National High School Gym in Dayao, Roxas City.

The performances will be held at the Villareal Stadium and Grounds and Capiz Provincial Park.

“My goal with the 15 [international groups] is [for them] to respect Filipino dancers. I want them to feel the Filipino culture and see the Filipino as natural dancers,” Ms. Halili-Cruz said. “That’s what I like about dance, there’s always continuous education.”

To register, visit http://bit.ly/DanceXchange2019. For details, visit https://ncca.gov.ph/2019/03/28/dance-xchange-2019-philippine-international-dance-festival/. — Michelle Anne P. Soliman