SM Investments Corporation · PSE:SM
SM Investments — Q1 2021 Earnings Presentation
20 slides from SM Investments's earnings presentation, May 5, 2021
Slide 1: 3M 2021 Earnings Report
3M 2021 Earnings Report 5 May 2021, 2PM
Slide 2: SMIC 3M 2021 Consolidated Results
SMIC 3M 2021 Consolidated Results ▪ Q1 earnings up 5% driven by Banks and Retail ▪ Lower revenues in Retail and Property vs. pre-pandemic Q1 2020 ▪ Conservative gearing maintained SM Investments 3M 2021 Chg Revenues 96.9 -13% Earnings 9.5 5% Assets 1,221.1 0% Net Debt:Total Equity 38 : 62 Figures in
Slide 3: Net Income Mix
Net Income Mix ▪ Banking and Property provided majority of earnings 33% 54% 13% Property Retail Banking Note: Excludes SMIC Parent and other subsidiaries SM Investments Corporation 2
Slide 4: Retail
Retail ▪ Strong cost reduction programs across Retail helped improve net income, including energy efficient investments in Food ▪ Mall-based stores also benefitted from rental relief ▪ Lower revenues vs. Q1 last year due to less pantry loading ▪ New channels represent 9.4% of total Non-Food sales SM
Slide 5: Banking – BDO
Banking – BDO BDO Banking 3M 2021 Chg ▪ Net income growth driven by Net Income 10.4 19% robust service fee income Net Interest Inc. 32.0 -3% ▪ Weaker loan demand Other Income 15.4 21% ▪ CASA ratio at 83% on 11% Loans 2,217.9 -1% growth in CASA deposits Deposits 2,631.4 2% ▪ NPLs within expectations
Slide 6: Banking – China Bank
Banking – China Bank CHIB Banking 3M 2021 Chg ▪ Strong net income growth Net Income 3.6 61% ▪ Higher net interest income Net Interest Inc. 9.2 16% on 52% lower interest Other Income 3.6 210% expense Gross Loans 572.3 -3% ▪ Three-fold growth in fee income Deposits 816.6 4% ▪ NPLs rose to 3.8%, still
Slide 7: Property
Property ▪ Lower revenues and earnings vs. Q1 2020 ▪ Residential reservation sales surged 31% vs. Q1 2020 ▪ China Malls returning to normal, revenues up 53% vs. last year ▪ Good momentum on Q4 2020 with Philippine Malls revenues up 10% and 78% earnings growth SM Prime 3M 2021 YoY QoQ Revenues 20.8 -
Slide 8: 2
2
Slide 9: 1Q Financial Highlights
1Q Financial Highlights Amounts in PHP Billions 1Q 2021 1Q 2020 Growth Revenue 11.9 11.4 5% Operating Income 5.1 4.6 9% Net Reservation Sales 32.4 24.8 31%
Slide 10: Net Reservation Sales
Net Reservation Sales In Value In PHP Billions 1Q 2021 1Q 2020 Growth High-Rise Building (HRB) 24.3 16.1 51% Mid-Rise Building (MRB) 8.0 8.6 -7% Ecohomes 0.1 0.1 0% Total 32.4 24.8 31% in Units w/out Parking 1Q 2021 1Q 2020 Growth High-Rise Building (HRB) 3,109 1,995 56% Mid-Rise Building (MRB) 1,88
Slide 11: Origin of Sales
Origin of Sales P32.4B 23% Others P24.8B Others 17% 81% Sold 9% Canada Overseas Canada 7% 13% United States of America United States of America 8% United Arab Emirates 9% 26% United Arab Emirates Philippines 51% 19% Philippines 1Q 2021 1Q 2020
Slide 12: Sellers Deployment
Sellers Deployment 11 OTHERS 10 AUSTRALIA 2,498 1 UAE 273 4,278 Based 9 JAPAN Sellers Local Total Abroad 492 8 HONGKONG In-House Sellers 629 1,172 1,801 507 Brokers 12,867 2,831 15,698 7 QATAR 566 Total 13,496 4,003 17,499 6 CANADA 1,046 2 PHILIPPINES Top 5 locations of brokers are: Middle 2,831 Eas
Slide 13: Completed and Ongoing Projects
Completed and Ongoing Projects Areas Units NCR 136,173 LUZON 13,879 VISAYAS 4,127 MINDANAO 3,712 Grand Total 157,891 LEGEND HRB MRB ECOHOMES
Slide 14: Housing Demand in the Philippines
Housing Demand in the Philippines Housing Package Unmet housing need Est. housing demand Est. housing need by Segments Price Range 2001-2015 2016-2030 2030 Can’t Afford 786,984 1,134,986 1,921,970 Socialized < P580k 1,275,921 1,369,180 2,645,101 Economic P580k to P1.7m 3,686,430 2,509,719 6,196,149
Slide 15: Thank you
Thank you
Slide 16: Covid-19 Vaccination Response
Covid-19 Vaccination Response ▪ Free vaccination program offered for all employees ▪ SM Malls working with LGUs to provide vaccination centers nationwide SM Investments Corporation 15
Slide 17: Sustainability Recognition
Sustainability Recognition We invite you to watch the full video at www.sminvestments.com/media/multimedia SM Investments Corporation 16
Slide 18: Q1 Results Key Messages
Q1 Results Key Messages ▪ All businesses continue to adapt to economic uncertainties ▪ Q1 revenues lower than pre-pandemic Q1 2020, earnings up 5% ▪ Cost focus across Retail drove earnings growth ▪ Banking delivered strong earnings growth on higher fee income and lower interest expenses, despite wea
Slide 19: Contact Information and Disclaimer
Contact Information and Disclaimer Investor Relations Office Office Number: +63 2 8857-0100 SM Official Website: Email Address: ir@sminvestments.com Official Facebook Account: www.facebook.com/sminvestments.ir Official Twitter Account: @SM_INVESTMENTS PSE Ticker SM Bloomberg Ticker SM PM Equity Reut
Slide 20: 3M 2021 Earnings Report
3M 2021 Earnings Report 5 May 2021, 2PM